The US Economy (1790-1830)

Question 1

Who was Alexander Hamilton?

Answer 1

Secretary of the Treasury under President Washington.

Question 2

What is debt?

Answer 2

Money that the U.S. owes to citizens and other nations.

Question 3

What is assumption?

Answer 3

The U.S. taking over the debts of the states.

Question 4

What was Hamilton’s Plan?

Answer 4

A strategy to pay back old debts through selling new bonds, imposing taxes, and creating a national bank.

Question 5

What is a sin tax?

Answer 5

A tax on products considered undesirable, such as whiskey.

Question 6

What is a tariff?

Answer 6

A tax on imports to generate revenue and encourage the purchase of American products.

Question 7

What is the Bank of the United States (B.U.S)?

Answer 7

A bank that would allow the U.S. government and wealthy investors to deposit money, pay back bonds, and create a uniform currency.

Question 8

Who criticized Hamilton’s Plan?

Answer 8

Thomas Jefferson and James Madison.

Question 9

What was a major criticism of the fairness of debt assumption?

Answer 9

It is unfair to pay debts for less responsible states while others have already paid.

Question 10

What was a concern regarding the influence of wealthy investors?

Answer 10

Critics argue that bond payments and the bank favor the rich and increase their influence in government.

Question 11

What happened to many veterans and their bonds?

Answer 11

Many veterans sold their bonds at a loss to speculators during economic hardship.

Question 12

What is the constitutionality of the bank in question?

Answer 12

Critics claim that the Constitution does not authorize the creation of a national bank.

Question 13

What is a concern about a complicated financial system?

Answer 13

Mixing government and citizen money could lead to corruption.

Question 14

What is regional disparity in the context of the whiskey tax?

Answer 14

The whiskey tax is seen as unfairly targeting one region of the country.

Question 15

What was Hamilton’s economic strategy?

Answer 15

Hamilton believed that owing money would make the nation successful

Question 16

What did Congress reject?

Answer 16

Congress rejected both the whiskey tax and the proposed tariffs.

Question 17

Why was paying off state debts important?

Answer 17

It would ensure states remain loyal to the nation.

Question 18

What does paying debts demonstrate about the U.S.?

Answer 18

It demonstrates that the U.S. is a trustworthy system.

Question 19

What is a strict or narrow interpretation of the Constitution?

Answer 19

Congress can’t expand its powers unless it is ABSOLUTELY necessary and DEFINITELY proper.

Question 20

What is a broad or loose interpretation of the Constitution?

Answer 20

Congress can expand its powers for something necessary—a good idea—and proper—an acceptable choice.

Question 21

What is the market revolution?

Answer 21

The process of buying and selling goods.

Question 22

What does manufacturing refer to?

Answer 22

The making of products using machinery.

Question 23

What is capital?

Answer 23

Wealth that can be invested to produce goods and make money.

Question 24

What is a bank note?

Answer 24

A piece of paper to pay for goods and services.

Question 25

What is a bond?

Answer 25

A loan to the government that can be redeemed later for the cost of the bond plus interest.

Question 26

What was the impact of the whiskey tax?

Answer 26

The tax disproportionately affects western regions where whiskey is used for cash and barter.

Question 27

What do critics believe about the power of the federal government?

Answer 27

They believe the plan gives too much power to the federal government over the states.

Question 28

How would Hamilton respond to criticism?

Answer 28

He would argue that a reasonable debt is beneficial for national success and that a national bank is necessary for economic stability.

Question 29

What does centralized mean?

Answer 29

The process of making happening in one place.

Question 30

What is the free enterprise system?

Answer 30

Companies competing for profits.

Question 31

What was The American System?

Answer 31

Henry Clay's idea that the US should have a protective tariff, a second bank of the United States, and internal improvements (infrastructure).

Question 32

What was The Tariff of 1816?

Answer 32

A protective tariff established as part of the American System.

Question 33

What was The Second Bank of the United States?

Answer 33

Established as part of the American System to manage the economy.

Question 34

What are internal improvements?

Answer 34

Infrastructure projects that were vetoed by Madison because he thought they were unconstitutional.

Question 35

What caused the War of 1812?

Answer 35

Trade and expansion issues, highlighting the need for a bank.

Question 36

What boosted economic growth?

Answer 36

The rise of new industries and changes in production methods.

Question 37

How did factories change the American economy?

Answer 37

They moved production from small, home-based to large, machine-driven manufacturing.

Question 38

What is mass production?

Answer 38

Moved from homes and small workshops to large factories.

Question 39

What is specialization of labor?

Answer 39

Increased reliance on wage labor and the rise of industrial workers.

Question 40

Who were women mill workers?

Answer 40

A significant part of the rise of industrial workers during the economic changes.

Question 41

What led to the emergence of department stores?

Answer 41

The increased availability of manufactured goods.

Question 42

What contributed to the development of banking systems?

Answer 42

It contributed to the growth of a money economy.

Question 43

What resulted from the growth of a money economy?

Answer 43

Better wages.

Question 44

What was part of the changes in the availability of money?

Answer 44

The emergence of new financial instruments.

Question 45

What does section refer to in the context of the 1800s?

Answer 45

Different parts of the United States during the 1800's.

Question 46

What does urban mean?

Answer 46

Places made up of multiple cities.

Question 47

What is population density?

Answer 47

The number of people living in a certain area.

Question 48

What is industrialization?

Answer 48

Rapid growth of the industry.

Question 49

What is a tenement?

Answer 49

Crowded apartments full of poverty and low standards of living.

Question 50

What is a strike?

Answer 50

To stop doing work because of something unfair.

Question 51

What is a labor union?

Answer 51

An organization of workers to defend rights of its members.

Question 52

What was the cholera epidemic of 1832?

Answer 52

A high death rate since it was one of the first serious epidemics in the United States.

Question 53

What happened with the National Trades Union formed in 1834?

Answer 53

Increased awareness and discussion of workers' rights.

Question 54

What percentage of Americans lived in cities in 1840?

Answer 54

12% of Americans lived in cities, indicating a predominantly rural society with limited urban infrastructure.

Question 55

What was significant about New York City's population in 1850?

Answer 55

It reached a half million, marking the starting point of New York City becoming a major metropolis.