MTTC Social Studies Practice Exam 2025 – All-in-One Study Guide for Teacher Certification Success!

The primary difference between the Federalist and Democratic-Republican parties during the First Party System was indeed their policies on federal involvement in the economy. The Federalists advocated for a strong central government that would play a significant role in economic affairs, supporting measures like the establishment of a national bank and tariffs to protect emerging American industries. They believed that a robust federal government was essential for maintaining order and encouraging economic development.

Conversely, the Democratic-Republicans, led by figures such as Thomas Jefferson and James Madison, favored a limited federal government that would allow for more agrarian-focused and local economies. They were more supportive of states' rights and believed that too much federal control could lead to tyranny. This ideological divide over the role of government in economic management was a defining characteristic of the two parties during this era. Thus, their differing approaches to economic policy and the extent of federal involvement marked the fundamental distinction between them.