The Evolution of Debt Strategies

The very first time the United States faced a budget deficit was when the country took out a $75 million loan during the Revolutionary War. They managed to pay it back quickly, resulting in budget surpluses in the years that followed. Unfortunately, the War of 1812 caused the nation to borrow again, pushing it into considerable debt once more. This cycle of accumulating large debts due to major wars repeated itself throughout the next two hundred years.