Question

How did Alexander Hamilton plan to handle the national debt?


by reducing taxes to help the economy

by creating a national bank to oversee the debt

by selling government bonds to fund the debt

by using cash reserves to pay down the debt

Answer 1

Alexander Hamilton planned to handle the national debt primarily **by creating a national bank to oversee the debt**. He proposed the establishment of the First Bank of the United States, which would help manage the nation's finances, issue currency, and stabilize the economy. Hamilton believed that a strong central bank would facilitate the government's ability to pay off its debts and manage its finances effectively.

Additionally, he also supported the idea of **selling government bonds to fund the debt** as part of his financial strategy. However, the establishment of a national bank was a key element of his plan to address the national debt comprehensively. Hamilton did not primarily advocate for reducing taxes or using cash reserves to pay down the debt in the early stages of his financial plan.