How did Alexander Hamilton plan to pay off the national debt?
(1 point)
Responses
by creating a population tax
by creating a population tax
by printing new currency
by printing new currency
by taxing imports
by taxing imports
by increasing exports
by increasing exports
by taxing imports
Alexander Hamilton planned to pay off the national debt by taxing imports and increasing exports.
Alexander Hamilton planned to pay off the national debt by a combination of measures, including taxing imports and increasing exports. To arrive at this answer, we can examine historical records and study Hamilton's fiscal policies during his time as the Secretary of the Treasury.
Hamilton proposed a plan to Congress, known as the Report on Public Credit, which outlined his strategy for managing the national debt. In his report, Hamilton suggested that the federal government assume the debts incurred by the states during the Revolutionary War. By assuming these debts, Hamilton aimed to establish the creditworthiness of the United States and provide stability to the financial system.
In order to pay off these debts, Hamilton proposed imposing tariffs or taxes on imported goods. This would generate revenue for the government and help fund debt repayment. Simultaneously, by taxing imports, Hamilton aimed to protect American industries and promote domestic manufacturing.
Hamilton also focused on increasing exports to boost the economy and generate additional revenue. He emphasized policies that would encourage American businesses to produce goods for export, thereby improving the balance of trade and strengthening the financial position of the United States.
While printing new currency was not one of Hamilton's primary strategies for paying off the national debt, he did propose establishing a national bank, the First Bank of the United States. Through this bank, Hamilton aimed to create a stable currency, manage government funds, and provide financial support for economic development.
To summarize, Alexander Hamilton planned to pay off the national debt by implementing a combination of measures, including taxing imports, increasing exports, and establishing a national bank.