Alexander Hamilton was an aristocrat, and he envisioned an America much like England, in which the lower classes were subject to the superior judgments of the ruling class. At the Constitutional Convention of 1787, Hamilton recommended the election of a President and a Senate for life - essentially a king and a House of Lords. He further recommended that State Governors be appointed by the Federal government. He was so adamant in his all-powerful federal government stance that his two fellow delegates from New York removed themselves from the Convention in disgust, thus depriving him of any vote. (The rules required that at least two delegates from each State be present to vote.)
Jefferson, on the other hand, was a farmer, and he believed fervently that each man's fortunes rested in his own hands and were directed by his own intelligence and conscience. To Jefferson's mind, every man had the god-given right to make his own decisions and his own mistakes, without the assistance of self-appointed overseers.
The governance styles of Hamiltonians and Jeffersonians are diametrically opposed. Hamiltonians start from the assumption that they are superior beings and that it is their duty to direct the lives and fortunes of their inferiors. Jeffersonians start from the assumption that they are just men who happen to have been put in a governing position over their equals, and they eagerly solicit and evaluate the opinions and advice of their fellow citizens.
Hamiltonians believe that the government has a nobles oblige responsibility to care for its citizens. Jeffersonians believe that every man was born with two hands and a brain and that it is his responsibility to do something with them. Hamiltonians believe in massive government incursions into the lives of their citizens (for their own good, of course) requiring high levels of taxation. Jeffersonians believe that the less government we have the better off we are and that the citizens are in a far better position to decide the wisest use of their money than the government.
The history of the United States of America has been the history of the recurrent ascendancies of these two disparate philosophies, and one can easily evaluate their effects by studying a little of that history. Wilson, for example was a Hamiltonian, who instituted the income tax and complained that "The U.S. Constitution prevents the government from meeting the country's needs by enumerating rights that the government may not infringe." His administration featured high taxes and reckless spending that brought on the depression of 1920. Harding and Coolidge were Jeffersonians who slashed taxes and government interference in the private sector. Their administrations presided over the roaring twenties, the most prosperous and innovative period in American history. Hoover and Roosevelt were Hamiltonians whose spending and taxation caused and perpetuated the depression of the 1930s. Eisenhower was a Jeffersonian who ushered in the enormously prosperous 1950s. Johnson was a Hamiltonian whose attempt to spend lazy people into prosperity resulted in economic stagnation and in his resigning the Presidency in disgrace. Reagan was a Jeffersonian who initiated tax and spending cuts and deregulation that launched the longest peace-time period of economic expansion in U.S. history (92 months) until the Hamiltonian tax increases of 1990 killed it.
Whatever the philosophical advantages of Hamiltonianism may be, its practical result has always been economic recession and stagnation. While Hamiltonian policies might appeal to the recipients of government handouts, the resultant high taxation and government competition with the private sector suffocates business and industry and stifles the production of wealth, thus increasing poverty for everyone. Innovation, growth, and wide-spread prosperity have always occurred - and can only occur - under the light-handed control of Jeffersonians.
G. E. Kruckeberg (2013-04-22). History and Common Sense. Kindle Edition.