Otis Mayfield
Diamond Member
- Sep 17, 2021
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So, President Andrew Jackson, a Democrat, believed that foreigners had too much control over the United States because of the huge amount of American debt foreigners held.
So, Andrew Jackson decided he was going to pay off the National Debt. He seized a lot of Indian land and sold it. He vetoed bills for building public roads. He vetoed any kind of spending bill at all. And then he raised the tariff on foreign imports to 35%.
And it worked. Jackson paid off the National Debt.
Now what?
So, the government had a lot of extra money laying around. They started to spend it.
Government bonds were no longer issued.
Government bonds were safe. Without the ability to buy government bonds, people started investing in risky schemes and outright frauds.
The situation spiraled out of control. Inflation became a huge thing and the economy crashed.
To save things, the government decided to borrow money. So, the government went into debt again, issuing thousands of government bonds.
The economy recovered.
And to this day, American bonds are seen worldwide as the safest place to put your money.
Do you think government debt is a bad thing?
So, Andrew Jackson decided he was going to pay off the National Debt. He seized a lot of Indian land and sold it. He vetoed bills for building public roads. He vetoed any kind of spending bill at all. And then he raised the tariff on foreign imports to 35%.
And it worked. Jackson paid off the National Debt.
Now what?
So, the government had a lot of extra money laying around. They started to spend it.
Government bonds were no longer issued.
Government bonds were safe. Without the ability to buy government bonds, people started investing in risky schemes and outright frauds.
The situation spiraled out of control. Inflation became a huge thing and the economy crashed.
To save things, the government decided to borrow money. So, the government went into debt again, issuing thousands of government bonds.
The economy recovered.
And to this day, American bonds are seen worldwide as the safest place to put your money.
Do you think government debt is a bad thing?