This country was blessed at its founding to have on the scene a member of the Founding Fathers, Alexander Hamilton, who was a financial genius. His idea to have the Federal government adopt the Revolutionary War debts of the states in order to establish the credit of the new Federal government was a policy of genius. At a stroke he restored the credit of the country as a whole, made certain the debt would be paid, made America attractive to foreign investors and laid the basis of future American prosperity. His ideas on the subject were set forth in his first report to Congress on public credit, 1789, and which may be read here. (more…)
A good history is waiting to be written about the US national debt. In the meantime, we can watch the cartoon!