The American System Part 1

Review Questions

1. What American industries were particularly hurt during the Revolutionary War?

2. How did the war aid Britain’s economy and hurt the American economy?

3. What type of economic system did the British employ in the 1700s?

4. What are the main elements of Mercantilism?

5. Which British philosophers were opposed to government economic intervention?

6. Would Alexander Hamilton be considered pro or anti mercantilism?

7. Would Hamilton be for or against government economic intervention? Where did he state this?

8. Why did Hamilton say it was necessary for governments to aid industries?

9. What 3 planks made up Hamilton’s economic system?

10. What constitutional clause did Hamilton use to justify the use of bounties or aid to private business?

11. How does government aid to private business provide for the general welfare of the entire country?

12. Are all economists in agreement that tariffs increase the wealth of a country?

13. What advantages did Hamilton say a national bank would provide?

14. Did Congress formally accept Hamilton’s economic plan? What planks did congress pass into legislation?

Additional Resources

Clarence B. Carson
A Basic History of the United States (Vol.3): the Sections and the Civil War 1826-1877

A Basic History of the United States (Vol.2): the Beginning of the Republic 1775-1825

Thomas J. DiLorenzo
Hamilton’s Curse: How Jefferson’s Arch Enemy Betrayed the American Revolution–and What It Means for Americans Today

F.W. Taussig, The Tariff History of the United States
http://mises.org/books/tariff_history_taussig.pdf

The American System
http://en.wikipedia.org/wiki/American_System_(economic_plan)

W.M. Curtiss, The Tariff Idea
http://mises.org/Books/tariff_idea_curtiss.pdf 

Henry Hazlitt, Economics In One Lesson
http://www.fee.org/files/doclib/20121116_EconomicsInOneLesson.pdf 

Murray N. Rothbard, A History of Money and Banking in the United States
http://mises.org/books/historyofmoney.pdf 

Murray N. Rothbard, The Mystery of Banking
http://mises.org/Books/mysteryofbanking.pdf