For each event in Jefferson’s presidency, determine if he stuck to his own Jeffersonian principles and why/why not. Then, assign him a grade (A-F or numerical) in his overall actions, taking into account context, motive, significance, outcome, etc.
Jefferson’s Financial Policies
Jefferson's commitment to Republican simplicity was reflected in his stress on economy in government. He slashed army and navy expenditures, cut the budget, eliminated taxes on whiskey, houses, and slaves, and fired all federal tax collectors. Many of these cuts were deemed necessary because the government was now losing $650,000 in tax revenue. Nevertheless, with his Treasury Secretary ALbert Gallatin, Jefferson was able to reduce the national deby from $83 million to $45 million.
He reduced the army to 3,000 soldiers and 172 officers, the navy to 6 frigates, and foreign embassies to 3 in Britain, France, and Spain. A firm believer in the idea that America should be the "asylum" for "oppressed humanity," he persuaded Congress to reduce the residence requirement for citizenship from 14 to 5 years. To ensure that the public knew the names and number of all government officials, Jefferson ordered publication of a register of all federal employees. However, not all of Jefferson’s economic policies were popular, nor did they all adhere to his inaugural promises and Jeffersonian Republican principles.
Documents
Taxes
Jefferson's administration eliminated the whiskey tax started under Washington and closed "unnecessary offices,” cut "useless establishments and expenses" and abolished all internal taxes*, including the land tax. (Internal taxes are taxes levied directly on property or goods, as opposed to tariffs, which are taxes on imports.)
“At home, fellow citizens, you best know whether we have done well or ill. The suppression of unnecessary offices, of useless establishments and expenses, enabled us to discontinue our internal taxes...it may be the pleasure and pride of an American to ask, what farmer, what mechanic, what laborer, ever sees a tax-gatherer of the United States?” --Jefferson’s Second Inaugural Address, 1805
The National Bank
“I consider the foundation of the Constitution as laid on this ground: That ‘all powers not delegated to the United States, by the Constitution, nor prohibited by it to the States, are reserved to the States or to the people...The incorporation of a bank, and the powers assumed by this bill [Hamilton’s bank bill], have not, in my opinion, been delegated to the United States, by the Constitution.” -Thomas Jefferson on the proposed Bank of the US, 1791
“As president, Jefferson nevertheless allowed the Bank of the United States to run its course until the charter expired in 1811. Jefferson tactfully tolerated the economically important Bank of the United States, which he had once condemned as unconstitutional.”--America’s History, 8th edition
In terms of Jefferson's financial policies, he did generally stick to his Jeffersonian principles of Republican simplicity and reducing government expenditures. He cut the budget, eliminated taxes on whiskey, houses, and slaves, and reduced the national debt. These actions aligned with his belief in limited government intervention and reducing the influence of financial institutions.
However, there were some aspects of Jefferson's economic policies that did not adhere to his principles. For example, he allowed the Bank of the United States to continue operating until its charter expired in 1811, despite previously criticizing it as unconstitutional. This decision could be seen as a compromise rather than a complete adherence to his principles.
Taking into account the context, motive, significance, and outcome of Jefferson's financial policies, I would assign him a grade of B. He made significant efforts to reduce government expenditures and the national debt, but there were compromises and inconsistencies in his actions. Overall, his policies had a positive impact on the country's finances.
To determine if Jefferson stuck to his own Jeffersonian principles in his financial policies during his presidency, we need to evaluate each event and see if it aligns with his beliefs in Republican simplicity and limited government.
1. Taxes: Jefferson eliminated internal taxes, including the whiskey tax, which was a significant source of revenue. This demonstrates his commitment to reducing the financial burden on the American people and his belief in limited government interference in the economy. Moreover, Jefferson emphasized the importance of reducing unnecessary expenses and establishments. This aligns with his goal of Republican simplicity.
2. The National Bank: Jefferson strongly believed that the creation of a national bank was unconstitutional and not delegated to the federal government by the Constitution. However, even though he opposed its establishment, he allowed the Bank of the United States to continue operating until its charter expired in 1811. This decision may be seen as a deviation from his principles since he tolerated an institution that he considered unconstitutional. However, it is important to consider the economic significance of the bank and the potential disruption that its immediate termination could have caused.
Taking into account context, motive, significance, outcome, etc., we can assign a grade to Jefferson's overall actions in his financial policies. Given that he successfully reduced the national debt, eliminated internal taxes, and implemented measures to cut unnecessary expenses, his actions align with his Jeffersonian principles to a large extent. However, his decision to tolerate the Bank of the United States, despite his beliefs, can be seen as a departure from his principles. Considering these factors, we can assign Jefferson a grade of B+ for his financial policies during his presidency.
Based on the information provided:
1. Financial Policies: Jefferson's commitment to Republican simplicity is reflected in his emphasis on economy in government. He took several actions to reduce government spending, such as slashing army and navy expenditures, cutting the budget, and eliminating taxes on whiskey, houses, and slaves. This aligns with his Jeffersonian principles of limited government and fiscal responsibility.
Grade: A
2. Taxes: Jefferson's administration eliminated internal taxes, including the whiskey tax, as part of his effort to reduce the burden on American citizens. He viewed these taxes as unnecessary and believed that they hindered the economic freedom of the American people. This adherence to his stated principles is evident in his efforts to significantly reduce the presence of tax collectors.
Grade: A
3. The National Bank: Despite Jefferson's personal belief that the incorporation of a bank was unconstitutional, he allowed the Bank of the United States to continue operating until its charter expired in 1811. Although he tolerated its existence, his initial opposition to the bank suggests a departure from his strict interpretation of the Constitution. However, considering the economic importance of the bank, allowing it to run its course can be seen as a pragmatic decision.
Grade: B
Overall Actions Grade: A-