Editing Report on Manufactures (section)

==Economic plan==
Hamilton reasoned that to secure American independence, the United States needed to have a sound policy of encouraging the growth of manufacturing and ensure its future as a permanent feature of the economic system of the nation. He argued these could be achieved by bounties or [[subsidies]] to industry, regulation of [[trade]] with moderate [[tariffs]] (which were intended not to discourage imports but to raise revenue to support American manufacturing by subsidies), and other government encouragement. These policies would not only promote the growth of manufacturing but also provide diversified employment opportunities and promote [[immigration]] to the young [[United States]]. They would also expand the applications of [[technology]] and [[science]] for all quarters of the economy, including [[agriculture]]. In his report, Hamilton advocated rewarding those bringing "improvements and secrets of extraordinary value" to the United States.<ref>{{cite book |last1=Ben-Atar |first1=Doron S. |title=Trade Secrets: Intellectual Piracy and the Origins of American Industrial Power |date=2004 |isbn=0-300-10006-X|pages=159–164|publisher=Yale University Press }}</ref> That contributed to making the United States a haven for industrial spies.<ref>{{cite web |title=The Spies Who Launched America's Industrial Revolution |url=https://www.history.com/news/industrial-revolution-spies-europe |website=History.com|date=January 10, 2019 }}</ref>

===Tariffs===
{{See also|List of tariffs in the United States|Tariffs in United States history|Protectionism in the United States}}
Hamilton reasoned that tariffs issued in moderation would raise revenue to fund the nation. The tariff could also be used to encourage domestic or national manufacturing and growth of the economy by applying the funds raised in part towards subsidies, then called bounties, to manufacturers. Hamilton sought to use the tariff for the following:

* Protect domestic [[infant industry argument|infant industries]] until they could achieve [[economies of scale]] and be able to compete with more established firms abroad.
* Raise revenue to pay the expenses of government.
* Raise revenue to directly support manufacturing through bounties (subsidies).

===Industrial subsidies===
Hamilton reasoned that bounties ([[subsidies]]) to industry, which would rely on funds raised by moderate tariffs, would be the best means of growing manufacturing without decreasing the supply or increasing the prices of goods. Such encouragement by direct support would make American enterprise competitive and independent along with the nation as a whole. In part subsidies would be used for the following:

* Encourage the nation's spirit of enterprise, innovation, and invention.
* Support [[internal improvements]], including roads and canals to increase and to encourage domestic commerce.
* Grow the infant nation to a manufacturing power that would be independent of control by foreign powers by relying on their goods for domestic, especially defense supplies.