A Short History of the National Debt

In November 2011 the national debt passed the $15 trillion mark.  Below is a brief chronology of America’s national debt: 

1790:  Washington Administration inherits a debt of $78 million.

1790s:  Alexander Hamilton establishes American credit, the Washington Administration keeps government small, and American bonds are considered among the most secure in the world just years after the economic crisis that led to the Constitutional Convention.

1801-1809:  The federal debt decreases each year of the Jefferson Administration.  President Jefferson accomplishes this while doubling the size of the United States through the Louisiana Purchase, winning the First Barbary War, and eliminating all direct taxes (the federal government still collected tariffs). 

1809-1834:  Jefferson’s goal was to completely eliminate the national debt.  The War of 1812 and the Panic of 1819 delayed that goal for a few decades.  But in 1834, Andrew Jackson succeeded in paying off the national debt in its entirety.

1835-1919:  The national debt comes back into existence during the economic downturn of the late 1830s/early 1840s.  During the Civil War it climbed to as much as 40% of GDP.  It hit another peak, but again less than 40% of GDP, during World War I.

1920-1930:  The federal government runs 11 straight years of surpluses.  

1945:  Debt passes $250 billion mark.

1975:  Debt passes $500 billion mark.

1982:  Debt passes $1 trillion mark.

1986:  Debt passes $2 trillion mark.

1990:  Debt passes $3 trillion mark.

1993:  Debt passes $4 trillion mark.

1996:  Debt passes $5 trillion mark.

2002:  Debt passes $6 trillion mark.

2004:  Debt passes $7 trillion mark.

2006:  Debt passes $8 trillion mark.

2008:  Debt passes $9 trillion and$10 trillion mark.

2009:  Debt passes $11 trillion mark.

2010:  Debt passes $12 trillion and $13 trillion marks. 

2011:  Debt passes $14 trillion and $15 trillion marks.

2012:  Debt passes $16 trillion mark.