why is the us currently in debt?. washington’s presidency economic problems
TRANSCRIPT
WHY IS THE US CURRENTLY IN DEBT?
WASHINGTON’S PRESIDENCY
Economic Problems
DAILY GOALS
4: Explain the reason’s the nation was
in debt at the beginning of
Washington’s presidency
5: Understand Hamilton’s economic
plan
AMERICA’S DEBT 1789
American Revolution leaves the US in great debt…• Sound familiar???
Bonds – a Certificate issued by a government for
an amount of money that the governments promises
to pay back, with interest• Who owns these bond?• Would you have bought a bond?
AMERICA’S DEBT 1789
Speculators – People who invest in a risky venture
in the hope of making a large profit• What is this similar to today?• Is this fair?
CAN YOU SEE WHY THIS IS A PROBLEM?
PREPARE TO HAVE YOUR MIND BLOWN…
http://
www.usdebtclock.org/
ENTER HAMILTON
1.The US government would assume all federal and
state debts
2.The US government would create a National Bank
3.The government would impose a high tax on
imported goods
THE US GOVERNMENT WOULD ASSUME ALL STATE AND FEDERAL
DEBTS
We need to pay our debt in order to maintain integrity
Northerns liked it, Southerns didn’t. Would you have
agreed to this?
Compromise
US WOULD CREATE A NATIONAL BANK
We needed a place to keep our money!
Seems like a good idea….
Jefferson sees this as unconstitutional… WHY!?• Strict interpretation
Elastic clause :Article 1, Section 8• “Congress shall have the power to make all laws
which shall be necessary and proper for carrying into execution the foregoing powers…”
• Loose interpretation
THE GOVERNMENT WOULD IMPOSE A HIGH TAX ON IMPORTED GOODS
Tariff – A tax on imported goods
Positives• Gain money for the federal government• Protect US manufacturers from foreign
manufacturers
Negatives• Think about the economic differences between the
North and South
DAILY GOALS REVISITED
1: Explain the reason’s the nation was in debt
at the beginning of Washington’s presidency
2: Understand Hamilton’s economic plan
3: Debate how the ideas behind Hamilton’s
economic plan would be received today