How did America as a new nation develop its economy and place in the world?

The United States, as a new country, took steps to develop its economy and to develop its place in the world. The United States had a diversified economy. The South tended to do farming while the North tended to have industries. We needed to develop our economy after we became independent. Alexander Hamilton understood that one way to develop our economy was to pay our debt. He proposed a debt plan that would combine the debts of the state and the federal government. New bonds would be issued, and along with tax revenue, we would be able to pay our debts. The South was against this to some degree, so to encourage southern support, Hamilton agreed with a proposal to move the capital city to Washington, D.C. in return for southern support of the debt plan.

Other steps were taken to develop our economy. Alexander Hamilton proposed creating a national bank. Having a bank would allow the federal government, businesses, and individuals to have a place where they could put their money and where they could get loans. Henry Clay proposed the development of the American System. This would put protective tariffs on foreign-made products that would allow our industries to have a chance to grow and to develop. We also would improve our internal transportation system. This would allow for farmers and for industries to be able to ship products faster and easier.

We also had to take our place in the world. Other countries were trying to test us by pushing us around. Spain and Great Britain were interfering with our trade. These countries were also encouraging Native Americans to attack us. Great Britain would leave the forts in the West. While some people wanted President Washington to go to war over these issues, he knew we weren’t prepared to go to war. He knew this wouldn’t be good for our country. Instead, he chose to discuss these issues with Spain and Great Britain in order to resolve them without going to war. This would prove that we would stand up to countries pushing us around and that we wouldn’t let them get away with these actions. We negotiated Jay’s Treaty with Great Britain and Pinckney’s Treaty with Spain in an attempt to resolve some of the issues we had with these countries. This showed the world that we would stand up for our interests and that we wouldn’t be pushed around by other countries.

The United States took several steps to develop its economy and to take its place in the world.