Categorically, in Alexander Hamilton's Report on Manufactures, he believes the government has a responsibility in the economy. Hamilton asserts that in order to protect the independence of the US, the government ought to possess a sound policy with a role in encouraging the growth and development manufacturing industry (Hamilton n.p.). Hamilton explains that through the mentioned government role, everlasting feature of the US economic system would get secured.
Prevalently, Hamilton had two major proposals. The cited proposals got based on tariffs and provision of subsidies to the US industries. Hamilton’s proposal on tariffs was that the tariff ought to get issued in considerable moderation. The cited moderation would assist in raising adequate revenue to finance the US nation (Hamilton n.p.). Additionally, he explained that the tariffs could get implemented to encourage both domestic and national manufacturing, as well as growth of the US economy. The suggested growth and manufacturing would get accomplished through the application of funds collected in part towards the essential subsidies to the manufacturers. Most importantly, Hamilton proposed that tariffs would get used to protecting the American infant industry for an interim until it would effectively compete. Also, the tariffs would get used in raising the essential revenue to pay the government expenses and unswervingly assist manufacturing through subsidies.
Hamilton’s second proposal got based on providing subsidies to US industries. Through the cited proposal, Hamilton argued that subsidies to the industries that would depend on funds collected through the moderate tariffs would be vital. The mentioned subsidies would mean growth of manufacturing without concurrently reducing supply or even elevating the prices of essential goods. Additionally, Hamilton extrapolates that the proposal would make the United States enterprise more competitive coupled with independence of the nation in totality. Illustratively, Hamilton proposed that subsidies would be implemented to encourage the spirit of innovation, enterprise as well as the invention inside the US nation (Hamilton n.p.). Also, subsidies would promote internal improvements such as roads to encourage and increase domestic business. Finally, Hamilton’s proposal on subsidies provision would develop the young nation industries into an independent manufacturing power. The suggested independence would limit the prominent control by the foreign authorities through the dependence on their goods for both defense provisions and domestic.
Conversely, specific individuals would vehemently oppose the Hamilton’s ideas. Individuals would oppose the implementation of subsidies to industries. For example, Thomas Jefferson and James Madison strongly opposed (Hamilton n.p.). Additionally, instead of using subsidies, individuals would significantly argue in favor of high tariffs as well as restrictions on the prevailing imports to raise manufacturing. Specifically, some individuals would undoubtedly favor the agrarian economy for farmers.
In conclusion, Alexander Hamilton's Report on Manufactures is an essential report that ought to get prioritized for the growth and subsequent development of any nation. Prominently, it is the responsibility of the government to ensure independence of the economy by providing the most needed resources for growth and development of industries. Moreover, the moderation of tariffs to collect the required revenue would considerably provide adequate finance in propelling the infant industries as well as paying government expenses. Also, the provision of subsidies to industries would provide the required competitive nature as well as promoting independence to limit the over-reliance on other nations. Most importantly, subsidies would encourage the spirit of innovation, enterprise as well as the invention that are often essential prerequisites for the success of any nation.
Work cited
Hamilton, Alexander. Report on the Subject of Manufactures. Cosimo, Inc., 2007.
