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LITR 4326
Early American Literature Research Posts 2016 (research post assignment) Research Post 1 |
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Kelsie Cavazos
The
Debt Father:
Forced upon us from early childhood, the founding fathers and implementation of
their ideals that shaped the foundation of our government are planted deeply in
our heads. I vividly remember being told to memorize, just to name a few, men
such as Thomas Jefferson, George Washington, and Alexander Hamilton, what they
were commemorated for, and how it shaped our history. The problem being, that
this dominant culture taught by preaching the notoriety these men had on
history, often left me feeling uncertain of what lasting relation they have on
society today. As we continue our
education we are cognizant to how critical these men are to our story but how
exactly does this past history connect with the present?
With
the presidential elections just around the corner and large emphasis being
placed on the economic landscape, I felt it was important to focus on Alexander
Hamilton as the principle of forming this past to present relationship. Born to
a single mother who was a shopkeeper, from his modest beginning Hamilton was
taught economic principles that helped fuel his ambition to build the first
modern capitalist economy. As first Secretary of Treasury during George
Washington’s presidency, Hamilton knew a drastic plan had to be enacted in order
to reshape the American economy. With state debt outrageously high as a result
of the Revolution, Hamilton proposed a three-tier economic plan that would boost
the validity of the central government and revive the economy.
From
early on Hamilton was noted for controversial opinions, but brilliant vision.
Just as seen in The Federalist Papers,
he had no problem voicing how important he thought it was to ratify the proposed
Constitution. Under the Constitution, the new government was required to assume
all old debt. As Secretary of Treasury, Hamilton’s vision was to issue an
economic plan that would centralize the strength of the new government. The
first part of the plan was to redeem old debt by issuing bonds that would be
backed by tariffs and taxes on imported goods. The second part of his plan
called the government to assume all state-level revolutionary debt. Although
this piece of the plan was rather controversial, because much of the
confederation had already paid off their debt, it would prove the government
strong. Lastly, he created the Bank of the United States, modeled after the Bank
of England as a financial institution. He felt that this implementation would
grow the economy by providing paper currency. At this point in time, Hamilton
wanted to use the national debt as a power source to fight wars, and as a
cushion for economic despair.
Now
almost three centuries later, Hamilton’s economic policies and theories are
still in use but the United States debt is at a high of 16.3 trillion dollars.
Hamilton said, “a national debt, if it is not excessive, will be to us a
national blessing.” Astoundingly ironic, Hamilton would be in utter disbelief at
the state of the economy. Delving deeper into the policies and ideas Hamilton
instilled, historical uncertainty is now backed with factual information and a
solid foundation that makes him completely relevant to the present.
Sources Cited:
http://coursesite.uhcl.edu/HSH/Whitec/texts/AmClassics/founders/Federalist/FedNDX.htm
http://www.ushistory.org/us/18b.asp
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