The Federalist Party, led by Alexander Hamilton, advocated for a strong central government, a robust national bank, and support for industry and commerce. In contrast, the Democratic-Republican Party, spearheaded by Thomas Jefferson, emphasized states' rights, an agrarian economy, and a strict interpretation of the Constitution.
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Central Government vs. States' Rights: Federalists believed in a powerful central government to maintain order and stimulate economic growth, while Democratic-Republicans favored states' rights and local governance to protect individual liberties.
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Economic Policy: Hamilton championed a strong financial system supported by a national bank to encourage industry, whereas Jefferson opposed this, believing it favored the wealthy and threatened farmers, advocating instead for an agrarian economy.
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Constitutional Interpretation: Federalists adopted a loose interpretation of the Constitution, allowing for implied powers, while Democratic-Republicans preferred a strict interpretation, asserting that the federal government should only exercise powers explicitly granted by the Constitution.