He's Not Throwing Away His Shot

On January 11, 1957, what would be the greatest economist was born. Who would eventually stir controversy through the United States. Who would create somewhat of a paradox system. Who would  eventually make the United States what it is today. Alexander Hamilton would change everything. 

At the age of 12 young Alexander worked as a clerk at a general store. Excelling in school (especially essay writing) and dreaming of college. At the age of 17 he went to Kings College and grasped a firm understanding of politics and economics, within the British and American realms. By 19 he was in the military and on March 14, 1776 he would create his own military company. He served 4 and a half years as a military secretary. Moving up to President Washingtons advisor and was put in charge of military design. 

In 1788 Alexander Hamilton was voted in as Secretary of State. Villainous Business said," Hamilton had to devise rudimentary systems for book keeping, checking and auditing." For the next few months Hamilton went through endless stress. His second day in office he demanded that all customs collectors send him the exact number of duties accumulated in each state. He received back extremely low numbers and decided to do something about it. Hamilton decided the first way to solve this problem to eliminate the use of coins and print paper currency instead. 

Over a few weeks Hamilton and many discussions with George Beckwith, a British diplomat. Hamilton was very pro-British and everyone knew it. Eventually wanting a commercial treaty. Though dreaming of an alliance, the movement wasn't really moving. Hamilton vetoed the movement but noted the States formed well the British. He still strongly believed the U.S. should trade with the British. He would eventually become the most influential figure due to his foreign policy. 

Hamilton believed in debt. In fact he liked it. In his "Report on Public Credit" he put in a detailed plan about his political and economic freedom. He also said government debt was the "price of liberty". Through low taxes and borrowing money the national debt rose to $79 million. (If only they could see the debt now). Hamilton honored the debt because it drew a line between public and private morality. Borrowing money we could afford boosted the economy. "America was a young rich country in opportunity." And he noted that if the federal government owed the money back to bond holders then the shift would go to the central government, insuring the governments stability. So he decided  that foreign debt was to be paid and full. While domestic debt was to be a greater dilemma. He put taxes on wines, tea, and coffee.  Thus creating "sin taxes". Luxury items, often times being foreign. Hamilton boldly stated that a well funded debt would be a "national blessing". "It was a stunning affirmation of confidence in the new government. Interest rates were tumbling and faith in America credit was being restored" said Villianous Business. 

Following Hamiltons 51 page economic plan reading, people went crazy. Everyone had their own opinion, including James Madison. Madison and Hamilton had a debate on February 20. "Hamilton had marshaled his forces effectively, whereas Madison had proven clumsy and inflexible." The House  of Representive voted against Madison with a 36-13 vote. Hamilton said "I go on the principal that a public debt is a public curse." Cursed he was. Hamilton died on July 11, 1804 in a duel. 

Alexander Hamilton is more than just a musical. He was an economic intellectual with many of his systems still in the works today. 

Adam Smith: Human Flourishing

The AEI posted an article on Adam Smith and his big ideas for human flourishing. The article explained how you can't have human flourishing without economic, political, and moral flourishing as well. They base the article off of Smiths book "The Wealth of Nations". Smith made up is own definition of flourishing. AEI describes his definition as, "a general plenty diffuses itself through all the different ranks in society". With that in mind that definition will be used plenty throughout this economics blog. 

Economic Flourishing is probably what Smith was most edecated in. (Though he is knowledgeable in these other categories as well, obviously). I want you to picture for a second a very rich city. Full of classic tastes and a whole new luxury. What did you think of? Fancy cars? Awesome machines? Adam Smith would've saw laziness. And that was back in his day I could only imagine how he would feel now. "No society can surely be flourishing and happy, if part of the society are poor and miserable". Don't get me wrong Smith doesn't want to keep society as a low, of course he wants it to grow. However, don't think your self interest can define society. Only the majority can do that. Remember that? The majority? As discussed many times in the beginning of the semester the majority had to be broken up into separate interest groups or nothing good would get done. "The Market" (the majority) makes economic growth possible because it alleviates the poorest conditions and helps flourishing society. 

Political Flourishing was discussed slightly in the article. Smith didn't really have the everyday thinking that other political leaders did. Thus making him impeccable for his position. He was compared to Aristotle a lot due to the similar thinking. They believe that the best society will come from the best society that can be realized in practice. Think about it. That makes sense. 

Moral Flourishing was probably my favorite to read about. It discusses how love and affection effects economics. Think for a second of the best day of your life. Maybe your marriage? Maybe your children being born? Maybe completing your first marathon? Whatever it may be look at everyone in the background. What's going on? I bet you everyone's happy in your scene. Why? Because according to Smith no one can truely be happy if no one else around them is. The AEI made a very bold claim and before reading this I would've gotten so mad, but now that I have read and understand, here it is. "Our existence is based on the existence of society." 

So you may be wondering how all this ties into economics. Well think about it, if we have a strong political leader then politics will flourish, politics goes hand in hand with economics therefore economics will flourish, when economics flourish people become happy thus making everyone else happy. Economics is more than just money, it's understanding. And Smith knocked it out of the park.