|Type of paper:||Research paper|
|Categories:||Economics Government American history Policy analysis|
In the early American Period of the financial system was a significant threat in the economic development of the country. In the 1780s, the United States was running huge debts, inflation increase, and dismal economic structure (Chang, 474). George Washington chooses Alexander Hamilton to take over the countries treasury secretary position. Hamilton was a self-made commercial manager, who was brought up in a humble homestead. In this paper, we will analyze Hamilton's contribution to the economic growth of America in the Early Period.
The setup took place in the early American Revolution period. When the country faced a massive economic crisis, there was increased inflation, colossal state debt wars, and economic degradation. George Washington chooses Alexander Hamilton to control the treasury docket of the country in the revolution period (Chang 476). Hamilton's ambition made tremendous success in the economic and national unity of the United States in the early periods.
Hamilton's economic policies played a significant role in overcoming the fiscal problems that result from the confederacy, which helped economic ties that he had a connection with. Hamilton boosted New York's economic policy through the commercial links he developed with the wealthy family of her wife. One of the systems Hamilton solved was public credit challenge. The United States government had a massive debt during the revolution period. In the late 1780s, after the appointment of Hamilton, the value of the public securities reduced significantly in the country (Ely 27).
Hamilton also issued a policy for the federal government to pay all its confederation debts to full value. Payment of the national government debts will dramatically enhance the legitimacy in the central government in controlling their financial structure. To ensure that the financial debt was cleared, Hamilton would raise money to pay off its debts (Zambakari 172). He also issued new security bonds, which would help in reducing the country's financial obligations at the moment.
The third policy of reshaping the American economy into a federal charter as a national financial institution transformed the United States' economic structure. He proposed that the bank of the United States be modeled along the lines of the Bank of England (Zambakari, 174). This policy helps in transforming the national economy by producing a more stable currency in the market.
The Alexander bold warning for all the federal government states to pay all their confederation state debts impacted the financial structure of the country negatively. During the Revolutionary period, the United States could not raise enough money to conduct most of its economic activities. This policy, therefore, affected the financial stability of the country from one way to another.
The idea of reshaping the American economy through following the structure of the Bank of England killed the local domestic vision for the country. United States' financial system has a considerable base compared to England. This policy, however, diminishes and reduces the American monetary support into a small sector. Bank of England's financial plans also has some challenges to the economic system, which could also reflect the United States' growth.
The policy of making the American manufacturer self-sufficient by reducing the level of large-scale agricultural exports in the country affected the quality and national cohesion. The system diminished the United States' agrarian ties with other strong nations. The policy also reduced the industrialization growth of the country. England at the time was experiencing rapid growth of its industrialization within the Great British.
Alexander Hamilton played a significant role in reducing public credit debt in the United States. The United States government was running huge deficits, which crumbled the growth and development of the country. Hamilton's proposal for the federal government to pay its confederation debt played a massive role in reducing the country's debt balance. The action by Hamilton led to legitimacy in the central government's financial structure (Chang, 476). The introduction of the new security bonds played a massive role in reducing the countries financial debts. Securities bonds attracted investors who were to pay considerable amounts to the county at the time of its need. He also reshaped the United States bank operation in following the structure of the bank of England that which made tremendous strides in the country's economic strength. This plan helped the United States currency to develop a strong identity and value in the market. The face of the central bank was now respected and appreciated across the world. The third policy of reshaping the American economy into a federal charter as a national financial institution transformed the United States' economic structure. He proposed that the bank of the United States be modeled along the lines of Bank of England. I agree that Alexander Policies led to the foundation of the American economic growth in the early national period.
Chang, Ha-Joon. "Institutions and economic development: theory, policy and history." Journal of Institutional Economics 7.4 (2011): 473-498.Retrieved from https://www.cambridge.org/core/journals/journal-of-institutional-economics/article/institutions-and-economic-development-theory-policy-and-history/483B04277F72313E9080AA3264997A93
Ely Jr, James W. "The Constitution and Economic Liberty." Harv. JL & Pub. Pol'y 35 (2012): 27.Retrieved from https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/hjlpp35§ion=6
Zambakari, Christopher. "Underdevelopment and economic theory of growth: Case for infant industry Promotion." Consilience 8 (2012): 171-187.Retrieved from https://www.jstor.org/stable/26188723
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