America's “Free” Market: Hamilton's 1792 'Report on Manufactures'

In 1792, Alexander Hamilton, Secretary of the US Treasury, wrote a “Report on the Manufactures.” According to Wikipedia, “Beginning with the "Report on Manufactures", by the first US Secretary of the Treasury, Alexander Hamilton, the United States became the leading nation opposed to free trade.”

Did you catch that? The leading nation opposed to free trade.

His report suggested that new industries in the colonies be granted protectionism through laws. That protectionism would include subsidies (corporate welfare) and tariffs (taxes on foreigners). Hamilton wanted to use the tariffs to then fund the subsidies.

This was mercantilism, not free trade. It was done in order to benefit business. In fact, the federal government of the United States has been in the business of protecting and helping business since it was founded. But not everyone supported this government intervention in the economy. James Madison and Thomas Jefferson, along with their supporters, consistently fought against Hamilton's ideas. Unfortunately, Hamilton won out.