Question

Why did Hamilton believe a national debt would strengthen the United States and ensure its survival?

Answer 1

Hamilton believed that a national debt would strengthen the United States and ensure its survival by providing capital for industrial projects and promoting economic growth.

Step-by-step explanation:

Hamilton believed that a national debt would strengthen the United States and ensure its survival because it would provide a base of capital for industrial projects and promote economic growth. He recommended that the government honor all its debts and pay them in full, which would send a message to future creditors that the government could meet its obligations. Additionally, Hamilton proposed assuming the state debts to build loyalty to the national government and allow the states to eliminate most of their taxes.

Answer 2

Hamilton believed a national bank was necessary to stabilize and improve the nation's credit, and to improve handling of the financial business of the United States government under the newly enacted Constitution.