Arab Today, arab today debt struggles as old as america itself
Last Updated : GMT 15:03:15
Arab Today, arab today
Arab Today, arab today

Debt struggles as old as America itself

Arab Today, arab today

Arab Today, arab today Debt struggles as old as America itself

London - Arabstoday

As of today, the national debt held by the public is more than $10 trillion. That\'s more than $30,000 for every man, woman and child living in the United States. We might think heated debates about the national debt are a relatively new phenomenon, but in fact, they stretch back all the way to the earliest days of the Republic, says economist Simon Johnson. His new book, White House Burning, co-written with James Kwak, traces the history of the national debt from America\'s earliest days, when the nation started out in dire financial shape. \"In fact, it was essentially bankrupt,\" Johnson tells Fresh Air\'s Dave Davies. \"It was in default on its debt. There wasn\'t a stable, robust source of revenue.\" During the Revolutionary War, American soldiers had suffered from poor food and a shortage of boots, uniforms and blankets because the Continental Congress couldn\'t come up with the money to pay for them. As a result, shortly after George Washington became president, Treasury Secretary Alexander Hamilton established a revenue stream through tariffs and customs to support the federal government. He also helped restructure the nation\'s debt. \"Hamilton said, \'We need to consolidate the debt and we need to make sure the debt that we have outstanding can be brought down by the revenue,\' \" says Johnson. \"And he pulled it off; it was an amazing and absolutely lasting achievement.\" Familiar Debates Over Government Debt Reliable tax revenues reassured borrowers, but raised many of the same conflicts we\'re now facing today: when and whether the nation should borrow, and how it should manage its national debt. During Washington\'s administration, a group led by Thomas Jefferson and James Madison argued that the federal government was getting too much power and that imports shouldn\'t be taxed because an undue burden was placed on the Southern states, which imported more manufactured goods than the North. \"Hamilton said, \'Look, we need to have this revenue in order to have a viable central government,\' \" Johnson says. \"The federal government was smaller than it is today, but Jefferson and Madison were adamant that it was way too big. So arguments about the size of government, arguments about the debt of central government and arguments about how to fund what kind of revenue you have — those arguments have been with us for more than 200 years.\" In the early decades of the 19th century, there was a shift away from Hamilton\'s financial system. In 1812, when James Madison was president, a group in Congress led by Henry Clay argued that the United States should confront Great Britain — and that taxes should be cut. \"The country was on a contradictory course,\" he says. \"It led to a war for which we weren\'t prepared and for which there wasn\'t the revenue to back up the efforts. And they\'d also abolished the First Bank of the United States. ... So they didn\'t have the tax revenue, they couldn\'t issue debt, they were very aggressive and this confrontation — the War of 1812 — didn\'t go well.\" Borrowing Responsibly For The Country The United States suffered military defeats and couldn\'t afford to expand its military efforts. \"This represents exactly what you need to avoid,\" Johnson says. \"When you run a country, and you\'re trying to achieve whatever you\'re trying to achieve, you have to fund it properly. And you have to have an ability to provide revenue to support that effort, and when necessary, you need to be able to issue debt in a responsible and well-managed manner.\" On Thursday\'s show, Johnson also shares his thoughts on the increasingly visible national debt and the U.S. fiscal policy over the past 30 years. He says ultimately either the voting public will ensure the national debt is brought down to manageable levels, or bond investors will do it for us, with the kind of calamitous impacts that Greece and Ireland have suffered. \"Can we sell unlimited amounts of debt at 2 percent interest for unlimited periods? I don\'t think so,\" he says. \"We should be looking for revenue to support the sensible social insurance functions of modern American federal government.\"

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today debt struggles as old as america itself Arab Today, arab today debt struggles as old as america itself

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Culture: تمثيل
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday