1301 Lecture 24 Hamilton Econ Progs Part 2 — Transcript

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1. 0:02okay we're back at you here hamilton's
2. 0:04three
3. 0:05economic plans so the first two the uh
4. 0:08the report on public credit
5. 0:10uh paying off the debt to the to whoever
6. 0:13holds the certificates pay off the
7. 0:14foreign governments pay off the
8. 0:15miscellaneous money
9. 0:16assume the debts of the states another
10. 0:1830 million dollars
11. 0:19bank of the united states established to
12. 0:21be a depository
13. 0:22of federal government money the bank of
14. 0:25the united states will pay the debt
15. 0:27and it will encourage economic growth
16. 0:30you want to get a loan start a business
17. 0:31you can go bank in the united states and
18. 0:34get it
19. 0:35and of course a big controversy is it
20. 0:37constitutional or not
21. 0:40jefferson madison say it's not
22. 0:42constitution does not
23. 0:44authorize such a bank hamilton says it
24. 0:47is as a serving proper clause
25. 0:48all right hamilton's third report is the
26. 0:50report on manufacturing
27. 0:52and the goal on this one is to make the
28. 0:54united states economically
29. 0:56self-sufficient make the united states
30. 0:58economically
31. 0:59self-sufficient the united states at
32. 1:01this time is mainly an agricultural
33. 1:03nation
34. 1:04hamilton wants more industry
35. 1:08more industry he wants the united states
36. 1:10to produce
37. 1:11more of its own goods instead of
38. 1:13depending on trade with other nations
39. 1:16especially great britain so
40. 1:20what he proposes in this report on
41. 1:23manufacturing to make the united states
42. 1:25self-sufficient he favors
43. 1:28more industry more manufacturing more
44. 1:31businesses
45. 1:33and he favors a high
46. 1:38tariff
47. 1:42a tariff
48. 1:46is a tax on imported goods
49. 1:49foreign government foreigners send goods
50. 1:53to the united states they have to pay a
51. 1:55tariff on it and the money from that
52. 1:56tariff gets deposited into the bank of
53. 1:58the united states
54. 2:00a high tariff protects american goods
55. 2:02against
56. 2:03cheap foreign products let's say for
57. 2:06example
58. 2:07you want to buy some shoes it's back to
59. 2:09school time you need to buy shoes for
60. 2:10the kids
61. 2:12uh you have five kids so you go to a
62. 2:15shoe store
63. 2:16you see a pair of american shoes there
64. 2:18that cost
65. 2:20five dollars okay you have the five kids
66. 2:26five kids five dollar shoes each
67. 2:30that's 25 with shoes but next to those
68. 2:33american-made shoes are a pair of
69. 2:35english-made shoes
70. 2:37and those english shoes are selling for
71. 2:39three dollars a pair at least they'll
72. 2:40have five kids
73. 2:42so those english shoes are gonna crush
74. 2:4315 now you're probably more likely to
75. 2:46buy the
76. 2:46cheaper english shoes than the more
77. 2:49expensive american shoes in this
78. 2:50scenario saving yourself
79. 2:54ten dollars yes ten dollars but
80. 2:58let's say that you put a three dollar
81. 3:00tariff on those english shoes three
82. 3:02dollar tariffs
83. 3:04now the cost of english shoes is six
84. 3:07dollars
85. 3:07you still have five kids now those
86. 3:10english shoes are gonna cost you thirty
87. 3:12dollars
88. 3:13you see now the american shoes are
89. 3:14cheaper and you will more than likely
90. 3:16buy the american shoes
91. 3:17thereby stimulating the american shoe
92. 3:19industry more american shoe industries
93. 3:21will come into being
94. 3:22others will expand they'll hire more
95. 3:24workers
96. 3:25those workers will spend money and they
97. 3:27will spend money on other goods
98. 3:29stimulating other aspects of the
99. 3:31american economy
100. 3:32and there you go the whole balloon
101. 3:34effect so he's calling for a high tariff
102. 3:37on foreign products to protect
103. 3:40american industry against cheap foreign
104. 3:44imports now
105. 3:50most of the american industries in the
106. 3:52north so this tariff is going to help
107. 3:54the north more than the south
108. 3:56in fact the south imports a lot of goods
109. 4:00so a high tariff they're going to have
110. 4:01to pay more for the goods
111. 4:03and the tariff is going to be an ongoing
112. 4:04issue in american history
113. 4:06for a long time even even today it's
114. 4:08still a controversial issue
115. 4:10it's going to be one of the causes of
116. 4:11the civil war the north always wants a
117. 4:13high tariff to protect
118. 4:15the northern industries the vast
119. 4:16majority of industries in the north are
120. 4:18in the north
121. 4:19the south always favors a low tariff now
122. 4:21once again
123. 4:22madison and jefferson oppose this plan
124. 4:27madison at this point well he opposes it
125. 4:30well simply because he doesn't like
126. 4:32alexander hamilton in fact the two hate
127. 4:34each other
128. 4:35jefferson opposes it jefferson
129. 4:38favors a mainly agricultural economy for
130. 4:42the united states he has some weird idea
131. 4:45that farmers being a farmer
132. 4:50is the closest you can be to god while
133. 4:52still on earth
134. 4:54i don't understand it but he believed
135. 4:56being a farmer
136. 4:57is the closest you could be to god while
137. 5:00still on earth
138. 5:01so he wants everybody to be farmers so
139. 5:03you can be close to god
140. 5:05and this whole manufacturing will upset
141. 5:09that
142. 5:09well all right now this of hamilton's
143. 5:12three plans
144. 5:15this is the only one that did not
145. 5:16officially pass congress
146. 5:18it didn't pass congress because it never
147. 5:20came up for a vote
148. 5:22uh congress adjourned before it came up
149. 5:25for a vote
150. 5:26and when congress adjourns all bills
151. 5:28like this one not dealt with
152. 5:29automatically died however over the
153. 5:32years
154. 5:34the plan did go into effect congress did
155. 5:37provide for a high tariff
156. 5:41more business and industry came into
157. 5:43being helped by
158. 5:44the money in the bank of the united
159. 5:46states so yes it didn't officially pass
160. 5:49congress
161. 5:50but the aspects of it did
162. 5:53okay well that's hamilton's economic
163. 5:55plans going back to the previous lecture
164. 5:58and so the nation's economy is on the
165. 6:02road
166. 6:02to recovery remember the depression that
167. 6:04hit around 1785
168. 6:07the nation's economy is back on the road
169. 6:09to recovery
170. 6:10and okay so next time we will take up uh
171. 6:14foreign affairs under the new government
172. 6:17okay
173. 6:18see you then bye-bye