Plan to Build the Economy - Social Studies With A Smile
Plan to Build the Economy
1791-Creation of the Bank of the United States
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Tariff
Tariff-tax on foreign goods
Tariffs are put on foreign goods to help American manufacturers.
Hamilton’s idea was to have a protective tariff.
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Congress does pass a tariff, but not as high as Hamilton wanted (less protection for workers)
The Whiskey Rebellion
The government taxed whiskey. Farmers were mad about the tax and rebelled.
1794-Pennsylvania tax collectors tried to get tax money. The farmers rebelled (Whiskey Rebellion)
Washington immediately sent troops into Pennsylvania to stop the rebellion.
This was a major test of the strength of the national government. Washington and the United States passed the test.
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The United States deposits money in the bank.
The bank uses the money to make loans to farmers and businesses.
Strengthens the Economy
Tariffs increase the price of foreign goods
People buy American goods
More American goods are needed
Americans have jobs
Stronger Economy
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