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Economic Policy: The Federalist Party, under the leadership of Alexander Hamilton, advocated for a robust central government and an industrialized economy. They endorsed the creation of a national bank, protective tariffs, and government subsidies for various industries. In contrast, the Democratic-Republican Party, led by Thomas Jefferson, promoted an agrarian-oriented economy that emphasized states' rights and individual freedoms. They opposed a national bank, contending it would grant excessive power to the federal government and favor the wealthy elite. They supported free trade and a decentralized economic structure.
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Foreign Policy: Federalists championed a pro-British foreign stance, advocating for strong trade relations with Britain and close ties to the British monarchy. They believed that aligning with Britain, as a formidable empire, would bring stability and economic prospects to the emerging United States. Conversely, Democratic-Republicans expressed greater sympathy for France, favoring a pro-French foreign policy. They were inspired by the principles of the French Revolution and viewed France as a natural ally in the struggle against monarchy and oppression.
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Role of the Federal Government: Federalists preferred a powerful central government with broad authority. They stressed the supremacy of the federal government over state governments, believing that a centralized authority was essential for maintaining stability and promoting economic growth. In contrast, Democratic-Republicans prioritized states' rights and were wary of a strong central government. They advocated for limited federal powers, arguing that the government should not encroach upon the rights of individuals or states, thus promoting decentralization and local governance.
It is important to recognize that while Federalists often held a more elitist viewpoint, favoring wealthy landowners and commercial interests, Democratic-Republicans aimed to safeguard the rights of everyday citizens, particularly farmers and small businesses.