It’s like a brief history of US economics, a nice refresher course for those of us who have forgotten a lot since college. I do like that he opened with a quote from Alexander Hamilton and speaks in-depth with apparent subject knowledge, rather than superficially with sound bites (though he does throw in a few one-liners for good measure – he’s a politician, not a professor, after all). I feel I may be warming up to this Obama fellow; still, rhetoric is one thing, and policy decisions are another.
The great task before our founders was putting into practice the ideal that government could simultaneously serve liberty and advance the common good. For Alexander Hamilton, the young secretary of the treasury, that task was bound to the vigor of the American economy. Hamilton had a strong belief in the power of the market, but he balanced that belief with a conviction that human enterprise, and I quote, “may be beneficially stimulated by prudent aids and encouragements on the part of the government.” Government, he believed, had an important role to play in advancing our common prosperity. So he nationalized the state Revolutionary War debts, weaving together the economies of the states and creating an American system of credit and capital markets.