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The Room Where It Happens (Hamilton)

by Matthew Rousu

The Compromise of 1790 ultimately shifted the United States capitol south of the Potomac River (to the yet unbuilt Washington D.C.) in exchange for passing Hamilton's financial plans.

During these negotiations, Madison and Jefferson evaluate whether or not they should allow the creation of a central bank. They do not think the establishment of a central bank would be beneficial to society. However, both actually agree to this compromise, on the basis that the capitol be moved closer to Virginia (thus shortening Jefferson's commute).

Madison and Jefferson's decision-making illustrates politicians not thinking about the best interests of their citizens, but instead working in their own interest or the interests of their exclusive constituents. Public choice theory assumes that politicians are acting to maximize their own utility, rather than to look out for society's best interests. Government failures resulting from this type of decision-making are also analyzed within public choice theory. Bureaucratic inefficiency, the majority-rule problem, and the impact of special-interest groups are common failures resulting from politicians making decisions based solely on their possible utility level, with no regard to their citizens/people.

The Room Where It Happens

Aaron Burr enviously speculates about The Compromise of 1790 (also known as the Dinner Table Bargain) taking place between Alexander Hamilton, Thomas Jefferson, and James Madison.

from Hamilton (2015)
Creator: Lin-Manuel Miranda
Posted by Matthew Rousu