A New Nation

1. A New Nation Society and the Economy

2. Societal Changes • Population was doubling every 20 years from 1780-1820 • Overcrowding on Atlantic Coast • People beginning to move westward • Mobility was possible in the US • Change of location • Change Position in Society

3. Economic Changes • Prior to 1800s • Production in Household • “Going to Work” was unusual • 9 of 10 families lived on a farm • Family was core of household production • Family produced for own consumption • Surplus was traded with neighbors/merchants

4. Economic Changes • After American Revolution • Prosperous farm families • Poor Farm Families • Production Changes • Banking • Stock Exchanges

5. Economic Problems • Repay War Debt • Gold and Silver Shortage • No Place for Government to Store Revenue • No Place for Government to get Cheap Loans • Need to Establish an Industrial Economy

6. Hamilton’s Solution • Repay War Debt • Pay off State Debts – Raise Taxes • Pay off War Bonds @ Face Value • Payoff Foreign Debt – Sell Western Land • Benefits • States w/ Large Debt • Wealthy Speculators

7. Hamilton’s Solution • Gold and Silver Shortage • Establish a national bank – use paper money

8. Hamilton’s Solution • No Place for Government to Store Revenue • Establish a National Bank • Benefits • Wealthy investors

9. Hamilton’s Solution • No Place for Government to get Cheap Loans • Establish a National Bank • Benefits • Wealthy investors

10. Hamilton’s Solution • Need to Establish an Industrial Economy • Tariff on Foreign Goods • Benefits • Industrialists, not farmers