Lecture 9: Hamilton (Report on Manufactures)

__________ is essential for national prosperity

manufacturing

what are places that were fully integrated into the industrial circle, but things went wrong?

India and Egypt

when demand for resources is inelastic, as it is for countries that are resource exporters, where do the benefits go?

benefits flow to consumers in Dover Circle Plus

what are the three countries that have fully integrated into the Dover Circle Plus

United States + Ontario, Japan, and South Korea

how can it be argued that America was exceptional in terms of its integration into the Dove Circle Plus?

it was extremely hard for countries to integrate themselves and thus the US was exceptional for doing so

what is one major reason as to why the US was able to fully integrate into the Dover Circle Plus?

Hamilton’s program and advocacy for a strong manufacturing sector

the Report on Manufacturers was in explicit opposition to

Jefferson’s advocacy for an agrarian economy

what was Jefferson’s view?

cities and finance are corrupting and plutocrats will take control under a manufacturing economy (keep these things in Britain and we won’t be corrupted by luxury and urban cities)

this reduces the prospects of having a free society

why did Hamilton advocate for a manufacturing economy?

necessary for security and independence of US, if we don’t manufacture our own guns, ships, and also conveniences we will become part of the British empire again

essential for economic growth, productivity depends on division of labor

Hamilton sees manufacturing as essential for ________ diversification

economic

how does Hamilton seen manufacturing as increasing economic diversification?

enables a more productive division of labor, near self-sufficiency, reduces dependency on foreign goods

what does Hamilton believe the government’s role should be in supporting industry?

promote manufacturing through protective tariffs, infrastructure investment, subsidies, grants, tax breaks, and support for technological innovation to boost domestic industry

Hamilton emphasized the importance of a stable financial system, which meant the establishment of what? why?

a national bank to facilitate credit and investment in industrial expansion

what was Hamilton’s view on immigrants?

advocate of attracting skilled workers from Europe to help build a strong industrial workforce in America

all immigrants have to do to become an American is to want to come here, participate in our society, and avoid the mistakes of the Old World

Hamilton believes heavily in _________ to create a skilled workforce

education

why is America not one big Australia?

it is not focused on exporting to an industrial core that is elsewhere, it is its own industrial core

what is Hamilton’s view on agriculture?

manufacturing adds values, value does not come from the land (as the physiocrats believes)

Hamilton saw the division of labor as the key to becoming

more efficient and producing higher quality products

how did Hamilton propose that agriculture and manufacturing were intertwined?

factories would create a steady market for farmers and farmers provide the food for workers in manufacturing

what is Hamilton’s view on public debt?

government bonds can be traded and used to finance business which can be used to help stimulate the economy

what was Hamilton’s view on tariffs?

believed they could protect domestic industries

while there may be higher prices initially, domestic industry will become more efficient which will bring down prices in the long run

true or false: Hamilton did believe in markets but also believed that the government had to step in

true

how did Hamilton respond to the clash of the North and South (manufacturing vs agriculture)

he says they are dependent on one another