Few issues divided the American people more after the Revolution than public finance and the direction of the American economy. Harvard Business School professor Thomas McCraw (who died in November) has written an enlightening book about the origins of the American financial system and the men who played a pivotal role in shaping it.
In The Founders and Finance: How Hamilton, Gallatin and Other Immigrants Forged a New Economy, McCraw shows the economic principles of Americaâ??s first two political â??partiesâ?, the Federalists and Republicans (no relation to the modern GOP), through the eyes of each sidesâ?? greatest economic minds. McCraw also makes the case for what he calls, â??immigrant exceptionalismâ?. Both Hamilton and Gallatin were born in other counties, and four of Americaâ??s first six treasury secretaries were immigrants. Clearly, many immigrants at the time brought important financial skills that were uncommon for most American leaders.
Alexander Hamilton represents the â??Federalistâ? and Albert Gallatin the â??Republicanâ? point of view of the early American republic. While Hamilton and Gallatin held dramatically different political views, both masterfully handled the treasury department in ways that allowed their respective parties to execute their visions for economic development.
Founders and Finance is broken down into three parts. The part one is about Hamilton, part two about Gallatin and part three is an overview of how American finance capitalism was established in the United States.
Read Full Article »
