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Federalists vs. Democratic-Republicans.pdf, Study Guides, Projects, Research of Political Science

Thomas Jefferson and James Madison (former. Federalist) led this party. • Democratic-Republicans favored a limited national government and.

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2021/2022

Uploaded on 09/12/2022

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Washington’s warning about not forming political parties was
already being ignored by members of his own cabinet.
Secretary of Treasury Alexander Hamilton and Secretary of State
Thomas Jefferson seemed to disagree on everything from the
economy, the national debt, states’ rights, trade, how to interpret
the Constitution, and whether to support Britain or France.
These disagreements quickly split American political leaders into
two groups. The first American political parties were born.
Hamilton
vs.
Jefferson
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  • Washington’s warning about not forming political parties was already being ignored by members of his own cabinet.
  • Secretary of Treasury Alexander Hamilton and Secretary of State Thomas Jefferson seemed to disagree on everything from the economy, the national debt, states’ rights, trade, how to interpret the Constitution, and whether to support Britain or France.
  • These disagreements quickly split American political leaders into two groups. The first American political parties were born.

Hamilton

vs.

Jefferson

The Federalist Party

  • The Federalist Party was America’s first true political party. It was led by Alexander Hamilton.
  • Federalists generally supported a strong central government.
  • Federalists were also usually loose constructionists meaning that they believe the Constitution gives certain “implied powers” to the Federal Government which are not clearly written out in the actual document.
  • The Federalist Party also supported economic policies that favored manufacturing (making goods) and trade which made them very popular with wealthy merchants and businessmen, particularly in the Northern States.
  • While Washington was President, Alexander Hamilton essentially laid the foundations of the American economic and financial systems.
  • Hamilton had all the money that the different states owed combined into a single national debt. To help the Federal Government pay interest on the debt, Hamilton pushed for the creation of the Bank of the United States which could issue loans. Jefferson and the Democratic-Republicans were strongly against the idea of a National Bank, arguing that the Constitution did not say anything about making a National Bank.
  • Hamilton also supported a series of taxes and tariffs to help the Federal government support itself financially.

Hamilton’s Economic Policies

  • The Federalists supported tariffs on foreign made goods. This would increase the price of foreign made goods and make Americans more likely to buy American manufactured goods.
  • Although these protective (high) tariffs were popular in the north because they protected American businesses from foreign competition, however they were very unpopular in the agricultural south which traded with Europe. Tariffs