Alexander Hamilton: Father of the American Economic System

by | Discerning Moment

Born on a small island in the Caribbean Sea in 1755, Alexander Hamilton had a challenging start to life. His father was a Scotsman, and his mother was of French Huguenot descent; they both died before Alexander was eleven. He was intellectually gifted and strong-willed, so a generous aunt and friends financed his education at King’s College (now Columbia University) in New York.

How Alexander Came to Love America

Alexander was an excellent and diligent student, and while at King’s College, he organized a debate and public speaking club where he soon rose in leadership. The topics debated were the political issues of the day: taxes on tea, the Boston Tea Party, and the Acts governing the colony of Massachusetts. Alexander’s sympathies fell with the colonists, and he soon dropped out of school to join the Sons of Liberty.

He secured a commission as a captain in the New York Artillery company, where he drew the attention of General Washington and became an aide de camp after being promoted to lieutenant colonel. Washington’s close circle of staff dubbed him “the little Lion” due to his fiery ambition and fierce bravery in battle.

The Federalist Papers

After the war, he returned to New York City and practiced law. He was appointed one of the New York delegates to the Constitutional Convention, where he debated his vision for American government, supporting a strong central government. After the Constitution was drafted, he co-authored The Federalist Papers with James Madison and John Jay under the pen name Publius.

First Secretary of the Treasury

President Washington appointed him the first Secretary of the Treasury, where he laid the foundation establishing polices that built the nation.

• Building a strong central government

• Encouraging manufacturing and technology

• Establishing a national bank

• Enabling public credit

• Using tariffs to generate revenue to protect and nurture emerging domestic industries

• Infrastructure like roads, canals, and bridges to connect regional economies

Hamilton’s foundation for the American System of capitalism and a strong industrial economy endures today and is the bedrock of the policies to restore that continue to build America.

Hamilton’s “American System” of economics urged a diversified economy to make America strong, provide stability, encourage innovation and growth, improve labor, and secure liberty through economic independence to benefit all Americans.

Teach the Children America’s Christian History: Family Time Talks

  1. How did Alexander Hamilton learn to love America?
  2. What was his character like? What can you learn about him from his nickname, “the little Lion?”
  3. What were his important contributions to America as the Secretary of the Treasury? Do you see any of these same policies being implemented today?

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