3. Starting in the 1790s, Americans begin to "accept" more self-interest in the economy and in politics.

• idea of liberty changes
• government structure
• more central government

The Post-revolutionary world of William manning p2

• Development of capitalism is most sweeping change

Part I - The Beast Within

A. Limiting Self-Interest
B. Capitalism: A New Idea... but a Safe One?

Likely Centers of Self-Interest

• Standing armies
• Factions
• Money Lenders & Manufacturing
• Despotic (tyrannical, absolute) authority & individuals
• Virtuous citizenry helps balance against

A New Idea... but a Good One?

• Adam Smith's Wealth of Nations & "Capitalism" (1776)
  • Should be unapologetically self interested, should pursue self interest, society should be self interested.
  • "invisible hand" produces the collected good
  • People are profit-maximizing
• There is change from pre-capitalist revolutionary Americans
  • Profit was viewed as a means to an end
  • Virtue produces collective good

Part II - Interest Unleashed

A. The Economic Plan
B. Political Reaction

Economic Plan

• Hamilton is trying to save liberty as the Secretary of the Treasury. He is the Father of Capitalism. Was federalist
  • A system of public credit & debt (system of Bonds)
    • Pay off war Debt
    • Take on new debt
    • ^ Revolving debt
  • Federal taxes and tariffs:
    • Tariffs encourage domestic production\
    • Negotiating chip with other countries (we will lower tariffs to trade with country versus another)
  • First Bank of the United States & a financial network
    • to invest in parts of US economy
    • system of smaller banks
    • people thought this was government overreach (constitutionality)
  • The Jeffersonian Republicans (1793) (Democratic Republicans)
    • James Madison and Thomas Jefferson viewed Hamilton's Plan as a threat Liberty
    • Mobilize ordinary citizen by the creation of a Faction