With The Current Type Of Government, The States Could Not

With the current type of government, the states could not form a community in order to deal with the issues in the new nation. Under the Article of Confederation, the American colonies acted as independent sovereign states. In order to pass a bill, there had to be a complete consensus. This meant that if any state opposed Congress’s new bill then it could refuse to enforce it. Also, Congress was prohibited from taxing citizens in order to bring revenue in order to deal with its debt giving the nation no revenue (OpenStax, 199). Around this time, United States had accumulated about $78 million (Locks et al.,437). Due to the high inflation of American currency and lack of job opportunity, citizens began revolting against the wealthy elites†¦show more content†¦Unless America makes a decision on how to solve the nation’s debt, it will never be able to recover and advance. Washington followed Hamilton’s plan by paying the full amount of debt and focusing on the self-interest of the elites (Locks et al., 438). Our country needs stability in order to begin paying off its massive debt. The elites are the economic foundation because through their wealth the nation would recover. Also, Hamilton wanted to create the Bank of the United States, which would facilitate the payment of federal taxes and tariffs (Locks et al., 440). A national bank would establish the groundwork on which states could then build their own state banks. Once the national debt is solved, then the country can solve other issues—states and citizens’ debt. By following Hamilton’s plan, America would build credit as a nation because then other countries and American citizens would trust the government that kept its obligations. Finally, by taking the burden off of the states, the states in response will pledge allegiance to the national government (Locks et al., 438). 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