Economic Goverment Essay

1752 Words8 Pages
Allisa Rockwood U.S. History Mr. Pfeuffer June 1, 2011 The Government’s Role in the Economy The government should always be an overseer in the economy. They should watch over the economy to make sure it doesn’t head down the wrong path. If the economy starts to turn sour they should jump in and try to stabilize it. Even though they should help, the government shouldn’t put to many restrictions and laws because this could block potential growth in the economy. The role should protect and help the economy grow. In 1787 the New Nation was created. Alexander Hamilton the secretary of state worked on economic development. His way of doing this was to help young industries grow by protecting them with tariffs and overt subsidies. He also wanted the federal government to create a national bank that would take on the public’s debt. The new government was wary of his ideas but tariffs became a part of the economy. Early American farmers believed that a national bank would be of no benefit, that the bank would serve the rich at the expense of the poor. The New Nation was divided between the beliefs in economy growth. Hamilton believed that the economy should seek growth through banking and manufacturing. Thomas Jefferson believed that the common man should be protected from economic and political tyranny. Not only was it divided in beliefs but in regions. The North was making money with the growth of factories. The South was getting rich from huge plantations growing cotton or tobacco and workers that didn’t get paid. These plantations were started by small farmers selling their land to move west. People who started to move west at first had low standards of living. Eventually with greater enterprise, people taking advantage of rising property values, and thinking in terms of profitable business the standard of living was higher than ever imagined. Many

More about Economic Goverment Essay

Open Document