“Hamilton: an American Musical” doesn’t mention the Whiskey Rebellion and the military suppression of western Pennsylvania that brought Alexander Hamilton’s creative phase to its climax. An earlier version of the play did have a Whiskey Rebellion section, but since the rebellion and its relationship to Hamilton’s national economic plan formed the subject of my first book, I can only be glad that that part of the show got cut. Leaving out the public-finance efforts that made Hamilton who he was may be understandable in creating a work of musical theater — but without some such realistic economic framing there would be no way to get any sense of what the Whiskey Rebellion and its suppression were about.
Many of Hamilton’s new fans, among many others, have no way of knowing that the linchpin of his great plan of national finance was a tax on whiskey (the first-ever federal tax on a domestic product). Violent resistance to that tax and its purposes became the nation’s first-ever insurgency for democratic access to political and economic power. The rebels didn’t object to taxation, they weren’t against American nationhood, and they didn’t just like to sit around and drink (they did like that, but so did everybody else then). They objected to the tax as unfair because its proceeds were earmarked to pay interest on government bonds held by a small number of very rich Americans. Whose income from those bonds was, of course, untaxed. Also the tax discriminated against small whiskey producers and encouraged industry consolidation among big producers.
So the years 1791-1794 saw the famous founders Washington and Hamilton, in hopes of authoring a rich, expansive, dynamic nation based on concentrating wealth and building military power, pitted against the little-remembered white working-class populists of the day who wanted economic and political equality for the less- and unrich.
That conflict between Hamilton, as first Treasury Secretary and architect of the national economy, and the proponents of democratic approaches to public finance who included the whiskey rebels represents the central issue for the important part of Hamilton’s career. He was fighting those he and his allies disdained as social “levelers” and “the democracy” long before he was fighting his opponents in officialdom Jefferson and Madison. From Hamilton’s efforts to demolish movements for economic equality came the economic blueprint — its linchpin a tax on, yes, whiskey — for the dynamic, powerful, rich, expansive nation that the United States did go on to become.
This founding fight between Hamilton and the whiskey rebels isn’t merely “relevant,” as the nation argues anew about taxes, wealth, Wall Street, corruption, monopoly power, money in government, etc.; and as the culture explodes with hiphop Hamilton onstage in city after city; and as major politicians square off to accuse one another of socialism or plutocracy, extremism or corruption. This founding fight isn’t just one among a number of historical examples of elitism versus democracy, or moderation versus extremism, or any of the other oppositions that various political positions will always read in various ways. This fight, whichever side of it you’re on, at any given moment, is the founding fight: the fight that actually launched the country and left us in a state of perpetual conflict with one another over what the country’s supposed to be about, when it comes to credit, debt, taxation, property, wealth, money.
The founding fight is the thing about the founding. Continue reading