Alexander Hamilton Advocated Assumption of State Debts, Creation of the Bank

question 45

Essay

Alexander Hamilton advocated assumption of state debts, creation of the Bank of the United States, enactment of protective tariffs, and enactment of an excise tax on whiskey. Discuss the political, social, and economic concepts on which Hamilton's proposals were based, and explain what each proposal was designed to achieve. Were the proposals enacted into law? Why?

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Definitions:

Worker Productivity

The measurement of the efficiency of a worker or group of workers in converting inputs into useful outputs.

Annual Earnings

The total amount of income earned over the course of a year from employment and other sources.

Geographic Imobility

The hindrance or inability of labor forces to move from one region to another in pursuit of job opportunities.

Market Imperfection

A situation where the assumptions of perfect competition are not met, leading to market failure.