A cabinet feud reshaped a nation. We follow Hamilton and Jefferson from principled disagreement to hard-nosed dealmaking, showing how a debate over debt, a national bank, and the reach of implied powers birthed America’s first party system—and moved the capital to the Potomac. Hamilton’s reports on credit, currency, and tariffs aimed to harden the young republic into a credible economic power. Jefferson and Madison fought back, citing constitutional limits and warning against a financial engine that could smother the states. Caught between them, Washington refused party labels while embracing many Hamiltonian policies, a choice that deepened the rift and set the stage for a lasting realignment.The turning point arrives with a bargain: accept federal debt assumption, and the capital shifts from New York to Philadelphia and then into a new federal district on the Potomac. That trade delivered Washington, D.C., and, in time, the institutional backbone Hamilton wanted. We then chart the volatile elections of 1796 and 1800, from the awkward Adams–Jefferson pairing under the original rules to the bitter tie between Jefferson and Burr. Hamilton’s intervention in the House, siding with a rival he deemed principled, paved the way for Jefferson’s victory and the 12th Amendment—aligning the Constitution with party reality.The Federalists never reclaimed the presidency, yet their influence lingered. The Democratic-Republicans adopted pillars of national strength, including a revived bank after the War of 1812. Through Tocqueville’s lens, we compare a Federalist “liberty of institutions” with a Democratic-Republican push for institutional equality and state-centered power. Along the way, we surface the enduring questions: How far do implied powers reach? When should the executive lead policy? And how do rivals strike deals without breaking the constitutional frame? Subscribe for more deep dives into the ideas and inflection points that still shape American politics, and leave a review to tell us where you stand on the Hamilton–Jefferson divide. Check Out the Civic Literacy Curriculum! School of Civic and Economic Thought and Leadership Center for American Civics

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