The Articles of Confederation

The Articles of Confederation

America, the newborn republic, was very weak under the Articles of Confederation. Many problems arose because power was given to the thirteen states. Some of these problems were that each state had its own currency, there needed to be a unanimous approval of the states to levy tariffs, and an “army” of farmers rebelled. These problems elicited the instability of the American government under the Articles of Confederation. They also showed the need for a stronger central government. The first secretary of treasury, Alexander Hamilton, a financial genius, rectified the weaknesses and economic mistakes of the Articles of Confederation. Hamilton created a financial program that included a consolidation of debts, full payment of domestic and foreign debt, and excise taxes. His financial plan also included protective tariffs, encouragement of manufacturing within the U.S. and the establishment of a national bank. Alexander Hamilton’s financial program was very successful in stabilizing the American government and the economy because it regained the trust of Americans in the government by repaying foreign and domestic debt. This in turn, strengthened the nation’s credit. Hamilton’s plan consolidated the heavy debts of the thirteen states into one national debt so that it could be paid off more easily. Alexander Hamilton’s plan also increased manufacturing in America instead of relying on the importation of goods, and it provided a national bank that could constitute a stable currency.
Alexander Hamilton tried to correct the problems of the Articles of Confederation by reshaping America’s economic policies to favor the wealthy. By doing this, the wealthy would in turn, offer their money and support. The federal government would thrive, the social classes would be successful, and success would fall down onto the people. Hamilton’s first goal was to strengthen the national credit, and then only would the people trust in the government. This had to be achieved by...

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