FINANCIAL PITFALLS
That Time the US Had Zero National Debt
Andrew Jackson and his debt-free scream
As of November 6 2023, the US national debt is $33.7 trillion. I owe $100K on my mortgage and the interest is giving me the shits. Imagine the interest on $33.7 trillion. Yikes.
It wasn’t always that way in the good old US of A. Why, back in 1835, the national debt was zero. Sure, it was the first and only time in US history the national debt was zero. Sure, it led to possibly the worst financial crisis in the country’s history. But, by heck, there was no debt.
All thanks to seventh US President, Andrew Jackson — aka Old Hickory.
Before we get into the guts of my tale, what is national debt?
Well, friend, it’s the debt owed by the federal government. National debt increases whenever the government spends more than it receives in taxelicious revenue and public student loan repayments.
To keep the economy sweet and to look after its peeps, a government must spend money even if this increases national debt. A government is supposed to fork out for health, welfare, education, infrastructure and construction, defence, and law and order. Supposed to.
