The time the US paid off all its debt (Indicator favourite) : The Indicator from Planet Cash – NPR

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Hey Indigators! It is Encore Week at The Indicator. We’re sharing a few of our favourite episodes of the yr. In the present day, we’re kicking issues off with a listener favourite concerning the time President Andrew Jackson paid off all of America’s debt…with disastrous outcomes. (This episode initially got here out in August.)

The US federal authorities at present has over 28 trillion {dollars} of debt and there are issues concerning the ever-increasing debt degree. The vast majority of that nationwide debt is issued within the type of bonds and bonds are thought of among the many most secure funding property on the planet. Nevertheless, the U.S authorities as soon as paid off all of its interest-bearing debt.
President Andrew Jackson was a staunch opponent of the present banking system. He additionally wished to do away with the nationwide debt. Actually, his administration paid off all of the interest-bearing debt on January 1, 1835. Historian Ann Daly lists three causes for this to occur. The federal authorities collected many thousands and thousands in tariffs, bought large quantities of public land, and President Jackson vetoed spending payments left and proper. Then he determined to offer the excess again to the states. Jackson’s actions and the zeroing out of the US debt contributed to the Panic of 1837, one of many worst recessions in American historical past.
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