Hamilton's Financial Plan · US History

What was Hamilton’s view on the 'public debt' of the United States?

  1. It was a shameful and dangerous financial burden that should be eliminated immediately at all costs
  2. A properly funded public debt was a 'public blessing,' giving citizens a stake in government
  3. It should be repudiated entirely so the economy could start over fresh and unencumbered
  4. It should be transferred back to individual citizens so they could pay it off themselves
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Correct answer: A properly funded public debt was a 'public blessing,' giving citizens a stake in government

Hamilton believed that a national debt, if funded correctly, would create a sense of investment in the federal government. It provided a secure investment for capital and helped establish the United States' creditworthiness on the international stage.

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