MONEY TIMELINE

FEDERAL DEBT: 1790

• The federal debt was set up in the 1790's
• It was set up by Alexander Hamilton
• He refunded debts from the revolutionary war by refinancing the debt

DEBT FREE: 1835

• This time period is the only time the U.S. has been debt free
• But, the civil war during the next few decades boosted the federal debt back up
• It rose to 33% GDP

WW1: 1900

• WW1 caused the federal debt to surge from 20% GDP to 32% GDP
• But, the GDP dropped consistently to 16% GDP by the mid 1920's

THE GREAT DEPRESSION: 1929-1939

• The great depression caused debt to surge higher to almost 20 billiom dollars
• The GDP went from 16% GDP to over 20% GDP

WW2: 1939-1945

• During the war the GDP rose to 100% GDP
• By the time WW2 ended the total debt was 251.43 billion dollars

POST WW2

• Public debt fell because the U.S. experienced post-war economic expansion
• Public debt fell because the U.S. experienced post-war economic expansion
• The Korean war did not increase debt because taxes were used
• The Korean war did not increase debt because taxes were used
• Debt reached a post-WW2 low of 24.6% in 1974
• Debt reached a post-WW2 low of 24.6% in 1974

REAGAN ERA

• Ronald reagan slashed top income tax from 70% to 28%
• As a result, the GDP increased from 26.2% in 1980 to 40.9% in 1988
• As a result, the GDP increased from 26.2% in 1980 to 40.9% in 1988

MODERN DAY

• Our federal debt continues to increase, and it is currently at 18 trillion dollars
• Our federal debt continues to increase, and it is currently at 18 trillion dollars
• With Obama in office, the debt has continued to increase faster than ever
• With Obama in office, the debt has continued to increase faster than ever

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