Question

In the 1790’s the United States faced an economic crisis with its heavy amount of debt. What were the competing financial and economic visions between the Democratic-Republicans and the Federalists during the 1790’s to try to solve this financial crisis

Answer 1

In the 1790s, the Democratic-Republicans, led by Thomas Jefferson and James Madison, favored an agrarian economy and strict interpretation of the Constitution. They opposed Alexander Hamilton's Federalist vision, which included a national bank, assumption of state debts, and a more expansive view of federal powers. The Federalists believed these measures were essential for economic stability and development, while the Democratic-Republicans argued for a limited federal government and championed the interests of farmers and states' rights.