Hamilton vs. Jefferson

Hamilton and Jefferson as part of President Washington's cabinet did not cooperate instead they began to disagree about how to define the authority of the central government.

* Hamilton believed in a strong federal government.

*Jefferson wanted to protect the powers of the states.

Their conflict reflected basic differences in their options about democracy. Hamilton had little faith in the average individual. He once said that "the people... seldom judge or determine [decide] right."

Hamilton and Jefferson also fought over how the country's economy should grow. Hamilton wanted to promote a more industrial economy, based on manufacturing, business, and trade.

Jefferson worried about depending too much on business and manufacturing. He believed that farmers were the most independent voters. They did not depend on other people's work to make a living.

Hamilton wanted to pass higher tariffs. Known as protective tariffs, these taxes would raise the prices of foreign products. Hamilton hoped this would cause Americans to buy U.S. goods. As a result, American manufacturing would be protected from foreign competition.

Jefferson wrote, "Our government will remain virtuous [pure] for many centuries; as long as they are chiefly agricultural." Jefferson wanted to help farmers by keeping the costs of the goods they bought low. Lower tariffs would keep prices low.

Hamilton wanted to start a national bank where the government could safely deposit its money. Jefferson believed that Hamilton's plans for the economy gave too much power to the federal government. He also believed the Constitution did not give Congress the power to create a bank. But Hamilton quoted the elastic clause, which states that Congress can "make all laws which shall be necessary and proper to govern the nation.