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The Washington Administration: It's the Economy, Stupid! (Part I)

© John S. Cooper

George Washington had one of the most eventful administrations of any president, largely due to the fact that he was the first. Washington had to establish all the procedures, protocols, and precedents. This made his every action, every decision an important example that would be followed by succeeding presidents.

He also had to establish our nation's first foreign policy, first economic policy, and first government. The United States had none of these things when he took office. The job he did ranks him as one of the greatest, if not the greatest, president ever.

Washington had a long military and political career before becoming our first president. (For more on his earlier military career, see: George Washington, British Officer) His experience as a member of the Continental Congress, and then as commanding general of our armies during the Revolutionary War, had brought him into contact with all the leaders of the colonies. He knew exactly what he wanted in the new government officials, and who to select to meet his high standards.

Cabinet System. Not only did Washington appoint the first cabinet, he actually created the cabinet system. According to the Constitution, the Senate was supposed to act as senior statesmen advising the president. When Washington first went to the Senate for such advice, he was disappointed and infuriated to find it just as political a body as the House of Representatives. After all, they were all looking to being re-elected.

Washington instead started turning to the heads of the executive departments, all of who owed their loyalty (and their positions) to Washington. He could count of these leaders for advice and loyalty, without worrying (too much) about their own agendas. This became the Cabinet, and Washington's was probably the best that ever served.

The first secretary of state was the amazingly able Thomas Jefferson, who became the third president, and today is rated as one of the very best. The first Secretary of the Treasury was the brilliant Alexander Hamilton. Hamilton took a completely broke government and made it financially sound. By the end of the Washington Administration, thanks largely to Hamilton, our economy was strong and our government able to support itself and function effectively. The first attorney general was Edmund Randolph, who later succeeded Jefferson as secretary of state, and the first secretary of war was the able Henry Knox, hero of the Revolutionary War.

Washington faced a number of problems almost immediately upon taking office. The most pressing problem was the terrible state of the economy, which was the reason leaders had called for the Constitutional Convention. Alexander Hamilton proposed a brilliant program that put the government on sound financial footing, and strengthened the American economy.