The trajectory of the U.S. national debt is a compelling narrative that mirrors the nation’s evolving priorities, polarities, challenges, and triumphs. From the nascent days of the republic, grappling with the financial aftermath of the Revolutionary War, to the expansive fiscal policies of the 20th century, each era offers a unique lens into the economic and political forces at play in the history of the national debt.
In the late 18th century, under the stewardship of Alexander Hamilton, the United States established its first national debt—a strategic move to unify the fledgling states and build creditworthiness. The 19th century witnessed fluctuations driven by events such as the Civil War, which necessitated unprecedented borrowing, followed by periods of aggressive debt reduction during peacetime.
The 20th century introduced complexities with global conflicts like World War I and WWII, the Great Depression, and the Cold War, each leaving indelible marks on the nation’s fiscal landscape. Post-World War II prosperity facilitated debt reduction, but subsequent decades saw increases due to military engagements, economic policies, and social programs.
As we navigate the 21st century, the national debt continues to be a focal point of economic discourse, influenced by factors ranging from tax policies to global pandemics. Tax cuts for the wealthy under Reagan, the Bushes, and most notably Trump since 1980 have blown a hole in the debt. Military adventurism around the world including 2 completely unpaid for Gulf Wars in the ’90s and 2000s and the 20-year war in Afghanistan ballooned it as well.
This timeline delves into the pivotal moments that have shaped the U.S. national debt, offering insights into the decisions and events that have influenced its rise and fall over the centuries — so we can get intimately familiar with which policies increase or decrease it.
Continue reading A Brief History of the National Debt
