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The Hamiltonian economic system divided America socially and politically. The goal of the new Hamiltonian economic system was to create policies that would favor the wealthier groups. In theory, they would then lend monetary and political support to the federal government allowing it to streangthen. This set a fine line between the upper and lower social classes, the rich and the poor. While the federal government and rich class would grow and prosper, the poor were supporters of states' rights and did not benefit from Hamilton's economic plan. Hamilton's economic plan for the union divided them politically and resulted in the existence of a two-party system throughout the states. The Federalists formed in support of a stronger federal government and was made up of the wealthy class because federal policies had benefitted them. The poorer class who supported states' rights were left in dissatisfaction from the federal policies and grew to be known as the Democractic-Republicans. America had developed social divisions from the implementation of Hamilton's economic plan. While the rich class thrived from Hamilton's policies, the poorer farmers were left empty-handed. This setup social strife that would exist between the common man and the wealthy and educated of America. Hamilton's whiskey tax was intended to produce additional revenue for the federal government but at the anger of the whiskey distillers who lived in the backcountry. Whiskey was part of their lifestyle and when the federal government taxed them for its exchange, they saw it as a burden on an economic necessity. This resulted in the Whiskey Rebellion, a social uprising against the government taxation of whiskey. Although unsuccessful, it showed that the rural farmers were not for the policies created by the rich man and that they wanted a weaker federal government. Not expecting it, Hamilton's economic system for America had resulted in political factions that would permanently be shown in American politics. Hamilton's economic system favored the manufacturers of America. His tariffs protected American industries and the creation of a national bank helped stimulate business. Under the economic system, the government would be supporting businesses but would not be directly interfering with them. Seeing that the manufacturers and foreign traders taking benefit from the economic plan, the rural farmers were displeased. From this economic plan they had lost rather than gain. The excise tax, notably on whiskey, was hated by the distillers of the backcountry. They were forced to pay to the federal government taxes on something that was a part of their lifestyle. These disagreements on Hamilton's plan created a two-party system for America: the Democratic-Republicans and Federalists. The Federalists supported the cause of the federal government and sought to make it stronger. However, the Republicans were major advocates of states' rights and the ideals of the common man. Hamilton had created an economic system for the Union in hopes that America would recover from the Revolutionary War debt. As a result he had established social and political factions within the country. The economic plan socially divided the nation into farmers who supported states' rights and the manufacturers who supported the federal government. It also divided the people due to the two political viewpoints at the time and resulted in the creation of two political parties that represented these viewpoints: the Republicans and the Federalists. However, it is these divisions that makes up the American democracy; having multiple viewpoints on American politics allow citizens to make a choice rather than live under one rule.
Credit to @mathador