How did Alexander Hamilton plan to pay off the national debt?
a. by creating a population tax
b. by printing new currency
c. by taxing imports
d. by increasing exports
c. by taxing imports
Alexander Hamilton planned to pay off the national debt by taxing imports.
To find out how Alexander Hamilton planned to pay off the national debt, we can refer to historical records and analyze his financial policies. Alexander Hamilton, the first Secretary of the Treasury of the United States, proposed a comprehensive plan to address the nation's debt.
Hamilton's plan involved a combination of measures, but the primary approach was centered around taxing imports (option c) and increasing exports (option d). This approach was known as the "Report on Public Credit," which Hamilton presented to Congress in 1790.
1. Taxing imports (option c): Hamilton proposed imposing tariffs and duties on imported goods. This measure aimed to generate revenue for the government while also encouraging domestic production and protecting American industries.
2. Increasing exports (option d): Hamilton believed that by boosting America's export capacity, the country could generate additional income to help repay the national debt. He advocated for policies that promoted trade and expanded American manufacturing and agricultural output.
It's important to note that Hamilton did not plan to rely on a population tax (option a) or print new currency (option b) as primary strategies to pay off the national debt. While taxation and currency management were part of his broader overall financial policies, they were not the primary means for debt repayment.
By implementing these policies, Hamilton aimed to consolidate the nation's debts, establish public credit, and create a stable economic foundation for the young United States. His vision for a sound financial system ultimately played a crucial role in shaping the economic development of the country.