Timeline for Are there any negative consequences for a country having no debt?
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| Nov 29, 2014 at 2:21 | comment | added | Jasper | Also, it is a stretch to call the United States of the 1830s "industrialized". | |
| Nov 29, 2014 at 2:19 | comment | added | Jasper | ... and many States borrowed huge amounts of money to build canals. Eventually, two things happened: 1) The federal government got scared by the loose money policies of the state-chartered banks, and decided to limit which banks it did business with. 2) Railroads made the canals obsolete (even before the states had finished building them). The banks were forced to cut back on their lending, there was a "Panic", and lots of states went bankrupt. But even during the resulting Depression, Americans kept building railroads and inventing things. | |
| Nov 29, 2014 at 2:13 | comment | added | Jasper | What happened in the 1830s had a lot of similarities to what happened in the 2000s. The Second Bank of the United States spent much of its profits supporting the political opposition to Jackson. Jackson refused to renew the Bank's charter, and shifted the federal government's banking business to state-chartered banks run by Jackson's cronies. The state-chartered banks lent out lots of money. Ordinary people borrowed money and invested in businesses and houses, and bought land from the government. The government sold enough land that it could pay off the national debt.... | |
| Dec 13, 2012 at 23:41 | comment | added | David Thielen | Good point on the better way to word that. There were a lot of strong arguments that eliminating the debt caused the depression. But 1 data point is not proof. | |
| Dec 13, 2012 at 21:24 | comment | added | gerrit | If it could have been a coincidence, it was not a consequence. Maybe better to phrase as "Afterward, there was a depression"? | |
| Dec 11, 2012 at 18:41 | review | First posts | |||
| Dec 13, 2012 at 21:24 | |||||
| Dec 7, 2012 at 3:27 | history | answered | David Thielen | CC BY-SA 3.0 |