Transcript Section 1 PowerPoint Notes

Chapter
8 Section 1
Objectives
• Discuss how the new government was organized
during Washington’s presidency.
• Explain why the new nation faced an economic
crisis.
• Identify the three parts of Hamilton’s financial
plan.
• Describe how Washington responded to the
Whiskey Rebellion.
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Chapter
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Terms and People
• inauguration– a ceremony in which the
President takes the oath of office
• precedent– an example to be followed by
others in the future
• bond – a certificate issued by a government for
an amount of money that the government
promises to pay back with interest
• speculator– a person who invests in a risky
venture in the hope of making a large profit
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Chapter
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Terms and People (continued)
• unconstitutional – contrary to what is
permitted by the Constitution
• tariff – a tax on imported goods
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Set Question:
Under the heading The Nation’s First Economic
Crisis what is one issue the United States had back
then that we have now? (page 284)
What was the reason for most of their debt?
What is the reason for most of our debt?
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How did President Washington set the
course for the new nation?
President Washington set precedents for
the nation by choosing top advisors to
form his Cabinet and by establishing the
court system.
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Chapter
8 Section 1
In April of 1789,
George
Washington began
his term as the first
President of the
United States.
His inauguration
was held on April 30,
1789.
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Washington had several reasons to feel anxious as
he started his term as President.
The country
was divided
on many
issues.
His actions
would set a
precedent.
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The new
nation
depended on
him.
Chapter
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The first job of the President and the
Congress was to put a working government
in place.
Congress passed laws to set up the three
departments of the executive branch.
Treasury
State
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War
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Washington appointed four well-known men as his
top advisors. This group later became known as
the Cabinet.
Alexander Hamilton
Secretary of the Treasury
Thomas Jefferson
Secretary of State
Henry Knox
Secretary of War
Edmund Randolph
Attorney General
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Chapter
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Washington also established a judiciary, or court
system.
Supreme Court
Circuit Courts
District Courts
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Chapter
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Washington also faced the challenge of
America’s significant debt.
The American
colonies
needed money
for the war.
The new
government owed
money to its
investors.
Americans and
foreigners bought
bonds to help the
war effort.
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National Debt
(the amount of money our federal government owes)
Under Washington the debt was around $77,000,000.00 ($77 million)
Anyone has a guess as to what the current national debt is today?
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Chapter
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National Debt
The estimated population of the United States
is 314,205,612 so each citizen's share of this debt
is $52,318.97.
The National Debt has continued to increase an
average of $3.94 billion per day since September 28,
2007!
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8 Section 1
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The nation’s economic crisis was complicated by
the issue of speculators.
Speculators had
bought bonds
from the original
buyers for less
than they were
worth.
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If the government
paid its debt,
speculators
would make a
profit. Many
Americans
thought this was
unfair.
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The new
government was
not collecting
enough money
to repay its
debt. It needed
new sources of
income.
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Secretary of the Treasury Alexander Hamilton
developed a plan to solve the financial crisis.
Pay all federal and
state debts
Hamilton’s
Financial Plan:
Create a national
bank
Impose a high tax
on imported goods
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Chapter
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Making Connections
Some people today want the federal government to put a tariff on goods
coming in from what country?
What are some of the reasons why China can produce things
cheaper then we can?
- Quality
- Labor Costs
- Environmental Restrictions
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Many Southerners opposed Hamilton’s plan for the
government to repay state debts.
Hamilton
believed his
plan would
encourage
future investors.
Southerners
thought each
state should
repay its own
debts.
Southerners supported Hamilton after Congress
agreed to build the new capital city in the South.
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In 1791, Congress created the National
Bank. Americans disagreed over whether the
Constitution gave government this power.
Supporters pointed
out that the
Constitution gave
Congress the power
to make all laws
“necessary and
proper” for fulfilling
its duties.
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Opponents believed
a national bank was
unconstitutional,
because it was not
specifically
addressed in the
Constitution.
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Congress did not pass Hamilton’s tariff plan. In
1791, it imposed a tax on all U.S. whiskey.
This led to a
farmer’s revolt
known as the
Whiskey Rebellion.
Washington sent
troops to end the
revolt.
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Section Review Questions:
1. What was Hamilton’s role in the federal government?
2. What were the 3 things he wanted to do to solve the nation’s economic
problems?
3. Do you think placing a tariff on all imported goods today would help our
economy? Explain.
4. What 3 other offices (besides Secretary of the Treasury) did Washington
set up, what was their purpose and who was the first person to occupy each
office?
ex. Department of the Treasury – dealt with economic affairs of the nation,
Alexander Hamilton
5. What is the main job for the Federal Courts? (top of page 284)
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Chapter
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Section Review
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