How did the economic program of Alexander Hamilton help revitalize the American Economy?

Essay by luker001University, Bachelor'sB, March 2002

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One of the pressing problems facing George Washington and his new administration was the economical and financial strains of America. The state government had accumulated a massive debt and with continued interest, was growing at astronomical rates. To the United States, the cost of Britain's victory in the Seven Years' War was immense and was the beginning of America's financial and economical down fall. How was America going to correct its economical and financial situation? An economical program brought fourth by Alexander Hamilton was the cause for optimism. Hamilton's economic program was to resolve America's economical and financial constraints and enable America to grow into a prosperous and powerful nation. According to Alexander Hamilton's economical program, America needed to install a system of public credit, create a national bank and help aid the nation's industries. If these three steps were undertaken by George Washington's administration, it would lead to a revitalized American economy and vault America into a leading economical and financial power.

When George Washington took office and became the first president of the United States in 1789, America's financial and economical sectors were in disarray. As the leader of American forces during the Revolution, his choice as president was unanimous. During Washington's administration, it was the cabinet not the congress that dictated policy. The congress at the time was small, therefore contained few if any powers. The US government at this time contained four cabinets with the head of each cabinet meeting regularly with George Washington. The four cabinets in the Washington administration included, The Department of State, The Department of War, The Attorney Generals office and The Department of Treasury. Thomas Jefferson, and important figure in the cabinet headed the Department of State while Alexander Hamilton headed the Department of the Treasury. The Department of...