There was a remarkable contrast between the approach of Alexander Hamilton and Jefferson in terms of the approach towards economic recovery. Each of these leaders had a unique way of approaching the various economic aspects, towards the achievement of economic recovery in the entire nation. Alexander Hamilton proposed that the government should pay at a face value for the many security certificates that were in the market, and be responsible for all the debts that all the states had incurred in the union. This move was to create an enormous national debt. However, Hamilton had a plan of issuing domestic and import taxes in the amount, which would not hinder trade and, but at the same time, promote government revenue (McCoy 43).
Another key proposal that Hamilton made during his time was to increase national credit ratings. The purpose of this change was to reduce the costs on interests. In addition, in the process of increasing the level of money supply, there would be the new capital, which would allow wealthy individuals to invest, increasing the individual profits and consequently, the national profit. According to Hamilton, paying at face value for the certificates, which was a proposal by Madison and the republican constituents, would bring unnecessary burden on the country, which would in turn alienate the low classes of income earners, in favor of the high-income earners (McCoy 56).
Despite the number of positives that Hamilton’s plan had, there were a number of challenges that the plan encountered in its implementation. For instance, before the members of the senate approved the plan, some of them used their insider knowledge to obtain profit in a remarkably short period. They did these by making purchases of numerous bonds prior to the approval of the plan.
On the contrary, Thomas Jefferson viewed the American community as an agrarian community where the manufactured products could be imported. He is the leader that denounced the wages that followed industrial development as a basis for success. According to him, agricultural products attained in the American economy could sell in the international, market in exchange for manufactured goods (McCoy 65).
Alexander, who was a representative of a typical mindset of a typical federalist, viewed future American success as inseparable from the development of an urban society. On the contrary, Thomas Jefferson, who had undergone an experience of brutality in the hands of the British urban society, saw the American society more of an agricultural community than an urban society.
The Louisiana Purchase
This was among the remarkable land deals that have ever occurred in history. In the year 1803, the United States paid massive 15 million US dollars for an approximate of 800000 square miles of land. According to analysts, the land was the greatest achievement of the presidency of Thomas Jefferson. However, this purchase raised a number of arguments against the Jefferson administration. In order for the Louisiana Purchase to go through successfully, Jefferson had to forego his principles, since the provision for such a transaction was not available in the American constitution. According to him, waiting for a constitutional amendment would jeopardize the deal (Rodriguez 45). Thus, President Jefferson opted to allow the purchase to go through, despite the lack of a provision in the American constitution. However, luckily, the American population allowed the transaction to go through without opposition. The purchase of the Louisiana land was essential, according to President Jefferson, because of a number of reasons. First, by purchasing the land, the land area of America would nearly double. The decision of President Jefferson to go against his principles of governance during the Louisiana Purchase would come with certain consequences. It is evident that the fact of taking liberty with the constitution in the manna of need and expediency would give room to the future presidents, having a sense of justice in certain clauses of the constitution such as article 1 (Foner 67).
The war of 1812 was an impetus to the political fighting between the republicans and democrats. James Madison, the fourth president of the United States, faced massive criticism from the Federalists for the 1812 war. When the 1812 war finished, most Americans felt that they had acquired victory over the British. The Federalist Party, during the 1816 general election, suffered a massive loss that saw them fall to the republicans due to this perception.
In the year 1790, the United States was a massive an agricultural society. Most small and independent family farms dominated New England and the Mid-Atlantic States. On the other hand, cities such as New York were developing into vital economic centers. Most of the cities in the southern region concentrated on farming.
The period from 1815 to 1860 is a boom period for economic development, especially, in the agricultural sector. The demand for farm products increased in United States and Europe. This period marked the development of the United States towards a market economy. In this period, the process for agricultural goods rose coupled with the production of goods. With the invention of the cotton gin by Eli Whitney, the problems associated with the seed problem. This reduced the problem of removing the seeds from the cotton boll. This led to the expansion of the production of cotton in Alabama, Louisiana, Texas, and Virginia for markets in Great Britain and New England (Larson 109).
Since cotton production was a highly labor-intensive crop, it revitalized slave trade. In addition, the invention of the mechanical reaper, the cotton sector benefited from technological innovations. This enhanced efficiency in production. The invention of the steel plow by John Deere eased cultivation for the farmers. This increased production of cotton corn, wheat, and other cereals. Thus, the American farmers were able to meet the market demand.
In this period, demographic trends were changing in the United States. This led to rapid urbanization as people moved from their places of birth. With urbanization and 1850 urban growth, there were improvements in transportation, renewed immigration, and industrial opportunities. The immigration of the Germans that were seeking refuge and the Irish Catholics running from the potato famine effects in 1848, the cities grew and developed (Larson 123).
The market revolution is the time of rapid improvement in manufacturing and farming in the American society. It presents the changes in the labor system. The factors that influenced market revolution included the need for national mobility. This came as a result of increased improvement in transport in roads and canals. The inventions of the cotton gin and the mechanical power reaper enhanced the growth of the Agricultural industry. This, in turn influenced market revolution (Foner 78).
The first industrial revolution came as a result of the improvement of the agricultural industry. The inventions by Whitney and McCormick stimulated the agricultural industry. Trade and specialization, and the spread of commercial agriculture integrated the national market. Thus, with increased capital, innovations, and technological advancement, the workshops changed into mechanized factories. This led to the conversion of the market economy into an industrial revolution. The industrial revolution came about due to improvement in transport since the steam boats (Walt 89).