What key issue divided Thomas Jefferson's Democratic-Republican Party and Alexander Hamilton's Federalist Party? slavery vs. abolition alliance with Britain vs. alliance with France federal power vs. states' rights taxation vs. donation

The key issue that divided Thomas Jefferson's Democratic-Republican Party and Alexander Hamilton's Federalist Party was the debate over federal power vs. states' rights. Alexander Hamilton, as a leader of the Federalist Party, advocated for a strong central government with broad powers over fiscal policy, commerce, and national defense. He believed in the idea of a centralized banking system and supported the creation of the First Bank of the United States. Additionally, Hamilton and the Federalists favored a close relationship with Britain, which was at that time a major economic partner.

On the other hand, Thomas Jefferson and the Democratic-Republican Party believed in a more limited federal government, emphasizing the rights and powers of individual states. Jeffersonians were wary of a strong central government potentially dominating the states and infringing upon citizens' liberties. They advocated for an agrarian-based economy and opposed Hamilton's financial plans, which they saw as benefiting the wealthy elite at the expense of the common people. They also supported a foreign policy that was more sympathetic to revolutionary France, which had recently thrown off monarchical rule, rather than aligning closely with Britain.

Extra: The debates between the Federalists and Democratic-Republicans centered around differing interpretations of the U.S. Constitution and visions for the direction of the young nation. The Federalists, mainly composed of northern businessmen and merchants, tended to interpret the Constitution more loosely, allowing for implied powers of the federal government. This was exemplified in Hamilton's argument for the establishment of the national bank using the necessary and proper clause of the Constitution.

The Democratic-Republicans, whose support was concentrated in the south and west among farmers and frontiersmen, advocated for a strict interpretation of the Constitution, which they believed restricted the federal government to powers explicitly stated in the document. They feared that a too-powerful federal government could become as tyrannical as the British monarchy from which America had recently gained independence.

Although slavery and foreign alliances were important issues of the time and were debated within and between different factions, the question of federal power versus states' rights was one of the most enduring and significant divides between the Federalists and the Democratic-Republicans during the early years of the U.S. Republic. This divide in ideologies would continue to shape American politics, finding different expressions throughout the nation's history, and sometimes contributing to tension and conflict, such as the Civil War.