SUMMARY OF CLASS DISCUSSION

These responses are the ones that you submitted following your class discussion of the Report on Manufactures.  If you disagree with any of the answers, or have additional information, please post it to the discussion board.   -- JDK

Manufactures

1. Near the beginning of the Report, there is a lengthy quotation, starting with “In every country…” and ending with “… and upon better terms.”  What is the point of this passage?  Keep this in mind as you read the rest of the Report, and see if Hamilton addresses all of the issues raised.

The point of the quote in the beginning of the Report on Manufactures is meant to create a counter-argument for Hamilton's argument for the promotion of manufacturing in America. He sets up a basis for comparison in order to present his argument that agriculture and manufacturing can both exist within one county creating an economic balance. He later proves the antithesis of those quotes by describing how the economy would benefit by incorporating manufacturing.

Ann Repp and Becca Shaffer

2. List and briefly explain the seven arguments which begin on page 980, for why manufacturing is important to a society.

The first two arguments for why manufacturing is important to society are division of labor and an extension of the use of machinery.

1. Division of labor is good because people can become more skilled at producing a particular object, less time is wasted from constantly changing jobs, and there is more likely to be use of machinery. Hamilton believes that people's skill will increase as a result of division of labor because “the greater skill and dexterity naturally resulting from a constant and undivided application to a single object” (pg 290). According to Hamilton “the economy of time” “depends on various circumstances – the transition itself – the orderly disposition of the implements, machines and materials employed in the operation to be relinquished – the preparatory steps to the commencement of a new one – the interruption of the impulse, which the mind of the workman acquires, from being engaged in a particular operation – the distractions hesitations and reluctances” (pg 290). Hamilton believes that division of labor will result in the use of machinery will increase efficiency from the division of labor because “a man occupied on a single object will have it more in his power, and will be more naturally led to exert his imagination in devising methods to facilitate and abridge labor” (pg 290).

2. An extension of the use of machinery is good because it makes producing goods more efficient in the industries. In most cases manufacturing pursuits are susceptible in a greater degree of the application of machinery, then those of agriculture. Hamilton believes that “Tis an artificial force brought in aid of the natural force of man; and, to all the purposes of labor, is an increase of hands; an accession of strength, unencumbered too by the expense of maintaining the laborer” (pg 290).

Jon Menz and Ivan Islas

3. The third argument for manufacturing is "as to the additional employment of classes of the community, not ordinarily engaged in the particular business." This essentially states that manufacturing opens the door for women and children to join the work force where as they could not work on the farm before because they were not deemed as effective as men. Working on a farm, before the rise of manufacturing, was basically the only work that people did as 90% of workers were involved in agriculture. With women and children working, the profits of families can increase. "The employment of persons that otherwise would be idle either from the bias or temper of habit… (are) more useful by manufacturing establishments." (975) As a whole, families would become more profitable.

4. The fourth argument for manufacturing is "as to the promoting of emigration from foreign countries." (976) This means that there is more job diversity available therefore enticing people from other countries to come into the United States to live. This fills the labor force requirements and allows the population to grow. Immigrants would no longer have to work strictly in agriculture. Hamilton believes this will, "open the avenue from abroad."

Tyler Hagemo and Lou Iorizzo

5. The fifth reason why manufacturing is important is "The furnishing greater scope for the diversity of talents and dispositions which discriminate men from each other." This means there are more opportunities for men to specialize in a field. Their talents and skills are separated into different fields and this allows them to focus on a certain area. 

6. The sixth reason corresponds to the fifth. It says "The affording a more ample and various field for enterprise." By diversifying the talents and creating other areas of business there are new job fields for people to enter into. 

7. The seventh reason says "The creating, in some instances, a new, and securing in all, a more certain and steady demand for the surplus produce of the soil." This means that manufacturing will increase the production of agriculture. Not only will it be needed for the people but it will also supply the industries with raw materials. This means agriculture and manufacturing will both benefit from the increase in manufacturing, allowing for more jobs in each field.

Kinzey Fritz and Sara Dietrich

3. Do you think that Hamilton’s arguments in favor of protecting US manufacturing fall under one of Adam Smith’s criteria for protection or not.  See in particular Hamilton’s discussion beginning on page 986.

Hamilton's arguments for protecting US manufacturing are very similar to the arguments Adam Smith makes in the "Wealthy Nations." In the beginning where Hamilton sets up his opponents' arguments, he explains Smith's policies of laissez faire and manufacturing to benefit the community instead of a particular class. He disagrees with Smith by making his points to protect manufacturing, but he does support some of Adam Smith's policies to advocate free trade.

In the eleven methods to protect manufacturing, Hamilton does support what Smith would have advocated in the Wealth of Nations. Points 1,3,,6,7, and 8 would have been supported by Adam Smith as well in the Wealth of Nations. Point 1 advocates protective duties, which Smith mentioned would benefit domestic industry . Prohibitions on export Smith would also support because it creates a reasonable supply for domestic industry. Points 6 and 7 would allow freer trade, and point 8 would create a better incentive to work. These are the points Smith and Hamilton would mostly agree on, although they disagree in the methods to implement them. The Ideal World Hamilton describes would be the case in which there is perfect freedom of trade, and the manufacturers ability to produce is boundless.

Niraj Patel and Brian Kallmeyer

4. Do Hamilton’s two reports complement or contradict one another.  Can he achieve the goals of both reports?

[not discussed]

5. List and briefly explain the eleven different ways to encourage manufacturing. (These begin around page 1008.)  Try to use supply and demand graphs to illustrate some of them.

1. Protective duties are meant to help domestic manufacturing in two ways. These protective duties should encourage the consumption of domestic goods. The duties should also create increased profits for domestic producers.

2. Prohibition of imports creates less challenge to domestic producers. By decreasing the number of firms in the market, you can increase the output levels of the firms still in the market.

Zack Bryden, Michelle Arcuri and Tim Crowell 

3.  Prohibitions on Exports of the Materials of Manufactures This section describes the idea that exportation of manufactured materials shouldn’t be allowed to foreign countries. The reasoning being that it would hurt the productivity of the home industries and the role of the nation on the world market.

4.  Pecuniary Bounties This says that bounties would increase the chances of profit and diminish the risk of loss in new enterprises. Also it avoids the temporary increases in prices. As well as not producing scarcity, which also helps to avoid increase in prices. 

5.  Premiums They are a form of reward for the workers of nations as a whole. They help to increase productivity.

Travis Osborne and Pat St. Denis

6. The exemption of the materials of manufacturers from duty.

Hamilton states in this point that the materials that go into production should not be taxed because this would decrease overall production and that it would be much more beneficial to tax the finished product.

7. Drawbacks of the duties which are imposed on the materials of manufactures.   

Tax on the materials of manufacturers should not be set to prevent with some domestic production.

8. The encouragement of new intentions and discoveries at home, and of the introduction into the US of such as many have been made in other countries; particularly, those which relate to machinery.

He states that the aid and help of foreign "improvements" can better United States machinery- they should not be heavily taxed or prevented from being used.

Darius Sabet and Vince Nichols

9- Regulations for the inspection of goods (quality control) It makes regulations for the quality control of goods from state to state. It protects consumers against frauds.

10- Facilitating pecuniary remittances (banking and currency) This says that the monetary value of paper money needs to remain constant from state to state giving the consumers and merchants security in the trading market.

11-Facilitating Transportation (internal improvements) Making the canals and roads more easily navigable will bring remote parts of the country together and will make trade and industry more efficient.

matt johnson and abe lehman

6. How does Hamilton propose to administer his system? 

[Not discussed in class; see last few pages of the Report.]