Did you know that during the roaring 20’s, the National debt had been reduced by over 1/4?
“How did the debt get paid down so far then?” you ask. A bit of history not widely told is the depression/recession of 1920.
The Congress, although tempted to step in, stepped back and let the free market correct itself. The next year was a tough one, but the boom created by the free market and booming main street businesses, generated enough revenue to keep the national budget in check, while paying down the national debt. Now, some say it was the fault of the boom that created the “Great Depression” and the crash of the markets in 1929, however, that is not entirely true.
Although ramped spending sprees and less personal saving started the downward spiral, it could have been corrected as it was in 1920. However, Congress decided it knew better and started tinkering, trying several different things as it is doing today, and that children is what actually caused the depression.
It wasn’t until WWII and the need for supplies, that the free market was again unleashed, that is until the mid 1960’s. We’ll visit that bit of history at a later date.
I encourage you to talk to your parents, grandparents and church elders about these times in our nation’s history to learn how they felt during those times and what they did to make it through the depressions.