Whiskey Rebellion StoryboardThat
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(Thomas Jefferson) Why should states like Virginia pay the debts of Massachusetts?
(Alexander Hamilton) Because we have to pay the national debt! But if you pay the tax, we will make the capital out of land from your state.
The United States had a national debt of 75 million dollars; which is worth 2 billion dollars today.
Whiskey was like colloidal gold back then. Farmers would use their extra grain to make whiskey, which earned a lot of money.
(Thomas Jefferson) Fine then. How will we raise money?
(Hamilton) With a tariff. Tariffs are something that allow the government to make revenue off of goods. Like a sales tax.
The tax went into effect, and people were outraged. You could either pay a flat rate, or pay by the gallon on how much whiskey you made. This big tax could be worth as much as 6 cents a gallon, which could be up to 20%
An angry mob advanced on Pittsburgh, declaring independence by trying to burn it to the ground.
The government sent 13,000 troops to Western Pennsylvania, and the rebellion collapsed. Some people were hung for the Whiskey Rebellion, but Washington pardoned most in the rebellion.
(Jefferson) The putdown of the Whiskey Rebellion showed that the new Constitution government was strong!
(Hamilton) Hurrah! The government can function properly now! Now if you'll excuse me, I have to talk with Lin-Manuel Miranda.
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