Madison vs. Hamilton: The Compromise of Debt Assumption

“Under the guise of doing states a favor by assuming their debts, the federal government was implicitly, even covertly, assuming sovereign authority over the economies of all the states.” – Joseph H. Ellis, Founding Brothers: The Revolutionary Generation. 

Hamilton, in his plan to place states in a position of indebtedness and dependency on the select few within the federal government, pushed forward a fiscal plan in which the federal government assumed the debt of the states, whereby also monetizing the securities paid out to war vets.  The majority of the southern states (except South Carolina, according to Mr. Ellis) were made disproportionately responsible for the debts of northern states.  This was, perhaps, the first critical step towards establishing central fiscal control and the nationalization of the Republic’s economy.

About imaconstitutionalist

Single mom, US Navy Vet, honorably discharged after awarded for meritorious military service. Former professional musician. Owner of a strategic digital marketing, design and development firm. Volunteer. History and economics major. Staunch Constitutionalist and capitalist. Advocates for women, education, innovation development, legalized medical marijuana, and against parental alienation, the socialist agenda, and misogyny. Extremely proud of my family's patriotic history. Daughter of the American Revolution. Fan of Adam Smith, with a not-so-secret crush on Milton Friedman.
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