The new American government was dominated by the Federalist Party, which sought to centralize power in the federal government. The Federalists, spearheaded by Alexander Hamilton and his programs, believed that the American economy should be focused on trade and manufacturing, with the government playing an active role in its development.
In contrast, the Democratic- Republicans, formed under Thomas Jefferson and James Madison, favored a decentralized government and a greater emphasis on state sovereignty.
Democratic-Republicans valued independent yeoman agriculture as the backbone of the national economy and believed that the United States should cultivate self-reliance through the development of internal resources.
