What principle did Alexander Hamilton advocate concerning the U.S. economy?

• A. A decentralized government to limit taxes
• B. A strong central government focused on industrialization
• C. A purely agricultural economy
• D. A minimalist government approach to business

Answer: (B)

Alexander Hamilton argued that the United States needed a strong central government to build a modern, prosperous economy. He believed the federal government should actively shape finance and industry, not leave the economy to farmers or local governments alone. His plan included paying off national and state debts to create reliable credit, establishing a national bank to stabilize currency and provide loans, and using tariffs or policies to encourage manufacturing. This approach aimed to knit the country together economically, attract investment, and reduce dependence on foreign goods—essential steps for growing industry and a robust national economy.

That’s why a strong central government focused on industrialization best fits his view. The other ideas—pushing for decentralized power to limit taxes, pursuing a purely agricultural economy, or keeping government involvement minimal—don’t reflect Hamilton’s push for active federal leadership to promote industry and a diversified economy.