9. Forming Economic Policy (Alexander Hamilton & George Washington)
Under President George Washington, Secretary of the Treasury Alexander Hamilton implemented financial reforms that laid the groundwork for presidential involvement in economic policy. These initiatives included:
Assumption of State Debts: The federal government assumed state debts from the Revolutionary War, consolidating them to establish national credit.
Establishment of the National Bank: The First Bank of the United States was created to stabilize the economy and provide a uniform currency.
Implementation of Tariffs and Excise Taxes: To generate revenue and protect domestic industries, tariffs and excise taxes were introduced (ushistory.org). These measures set a precedent for future administrations, emphasizing the president’s role in shaping national economic policy.
