US HistoryMs. GonzalezOctober 28, 2015

Aim: Why did Hamilton believe there was a need for economic reform?

Do Now: What was the difference

between the Federalists and the Democratic-Republicans?

[Congress has the power] To make all Laws which shall be necessary and proper for carrying into Execution the Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

Turn & Talk

What kind of power does that give our government? Think of specific examples.

The Elastic Clause

A statement in the U.S. Constitution (Article I, Section 8) granting Congress the power to pass all laws necessary.

• What are the pros and cons about the Elastic Clause?

Turn & Talk

• Hamilton and the Federalists liked the elastic clause because they believed in a Loose interpretation of the Constitution.o Believed in doing things even if they

were NOT written on the Constitution.

If it doesn’t say not to do it, then is OK!

• Jefferson and the Democratic-Republicans disliked the elastic clause because they believed in a Strict interpretation of the Constitution.o Believed in ONLY doing the things

that were written on the Constitution.

We must only do what the constitution says we could do

When has the Elastic Clause been used?

• Creation of a National Bank

• Purchase of Louisiana Territory

Economic Problems Nation’s finances a disaster• War Debts• Citizens loaned money to the

government• State governments had their own

wartime debts

Alexander Hamilton was the first secretary of the treasury

o Needed to fix the nation’s finances $$$.  

Hamilton's Financial Plan

Involved 3 steps:1. Paying the debt2. Creating a national bank3. Raising revenue ($$$)

• Whiskey tax• Protective tariff

Hamilton's Financial Plan

Partner JigsawRead and answer the questions.

1. Why was it important for the United States to pay off its war debt?

2. What benefit did the protective tariff give the American economy?

3. Why did Hamilton think it was important to have a national bank?

4. Who did Hamilton’s Plan benefit the most?

• Who did Hamilton’s plan benefit the most?