Over Heads Broken Down Would not apply to state government actions Need a new

Over heads broken down would not apply to state

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Over Heads Broken Down - Would not apply to state government actions Need a new convention to reconsider a lot of issues - Too many changes too soon would undercut constitutional legitimacy Madison thinks you don’t need a bill of rights . Parchment won’t matter against people For a National Bank eaiser to borrow because gold and silver back up bank, Economic arguments: - Help facilitate tax collection and borrowing - Creates money and credit for economic growth Legal/Political arguments: - If government can tax and borrow, then it can set up an institution that facilitates those functions-- “necessary and power” clause allows it If a government cannot create a corporation than what does “necessary and proper” clause even mean? Against a National Bank Hamilton says bank provides wealthfare and opposition says they don’t see bank or corporation Economic arguments: - Banks are financial and inflationary printing money allows for more inflation - Concentrates federal power (large size relative to private banks) - “Too big to fail” - farmers distrust banks and concerned about size of banks concerns of power going to northerns Legal/Political arguments: - Constitution does not authorize government to create corporations “Necessary and power” clause relates only to enumerated powers - This would remove all limits on federal powers Madison – thinks language is explicit and not impilicit. What’s excluded from general wealthfare of US? Creating bank is allowing government to create incorporation = making federal government too powerful Madison’s Inconsistencies – before and After Ratification Strong v limited federal government Implicit v enumerated powers Supported Hamilton for Treasury then opposed him on big issues Favored federal incorporation then not Didn’t want and then wrote Bill of Rights Becoming more of a “Virginian”? Debt assumption, where’s the Capital, threat to slavery madion adovcates for implicit at first and then limited federal government with enumerated powers OVER ARCHING ISSUE: extent of federal government - 4
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Over Heads Broken Down Manufacturing in Early 19th Century (“Industry Policy”) In Favor Protect “Infant Industries” government needed to stimulat innvtion Need support to get up to scale Private capital resistant to finance uncertain new industries British manufacturers would overwhelm American start-ups Capital markets, in general, not mature enough to finance high risk, long-term investments Against Government should not pick winners and losers Let markets work A waste of taxpayer money 1830 Limited Liability Proposal In Favor Capital leaving to other states – - Need to reach out to distant investors who will be reluctant to risk ruin - Need a lot of money - Investors should not risk total loss - Limited liability would be low-cost industrial policy encourages business - Unlimited liability is not democratic -– biased against entrepreneurs in favor of the wealthy -
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