Founding Brothers

Was debt assumption abolished or is it still used today?

James Madison and Thomas Jefferson both regret the dinner bargain where they agreed to let assumption pass. If they both are against debt assumption, what did they end up doing about it? Did they end up encouraging abolition of debt assumption? If not what was their resolution to their regrets of passing debt assumption?

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Hamilton admitted that his financial plan for the nation had reached a Congressional stalemate, mostly because Southern congressmen opposed the proposed assumption of state debt by the federal government. Debt assumption is still a common practice today at both private and government levels. There are many different economic reasons for assuming debt.

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