AP U.S. History Essay
Yerim Lee After having numerous heated debates over the structure of the new government, the delegates hoped that the problems that existed under the previous Confederation government would be resolved under the newly established government under the Constitution. Although similar problems arose after the establishment, its leaders were able to gain prominent control over their powers and implement new policies under the Constitution in attempt to fix the problems facing the nation. Although the Confederation government and the Constitution government shared problems of economic difficulties, foreign policy problems, and intrastate challenges, the new government under the Constitution was significantly more successful in solving its problems. The biggest economic problem America faced from the 1780s to the year of 1800 was debt. …show more content…
In fact, it had to borrow additional money from countries abroad just to keep up with the perpetual demands of the creditors. In attempt to raise money from individual states, it demanded states to pay their requisition in paper and coin currency rather than notes promising to pay in the future. Furthermore, in order to appeal its federal bonds to investors, a Congressional charter for the Bank of North America was secured. Despite the considerable efforts, the federal government was powerless because they were solely dependent on the states’ willingness to pay. Few years later, still suffering from unmanageable debt of over 21 million dollars and increasing inflation, the country was in desperate need of a robust leader with solutions. In 1790, Alexander Hamilton, Secretary of the treasury, proposed a national policy to promote the country’s economic growth. His financial plan consisted of imposing excise tax on manufactured goods, which would be collected to raise money to decrease the country’s large debt. He also suggested taking on state debts under national government because