How did Andrew Jackson eliminate the national debt?

Great Answer

Professionally Researched. (What's this?)

The only time in the nation's history that the national debt was virtually eliminated occurred in 1835 during Andrew Jackson's second term as president.

Origins of the National Debt

There had been national debt in the United States as early as the 1790's. The original debt came from state and national debts left over at the end of the Revolutionary War.

Motivations

Andrew Jackson had suffered personal financial losses in his own businesses as well as during the Panic of 1819. Jackson felt politically that the debt was a national curse, and wanted to free the country from the debt obligation.

Strategy

Jackson asked Treasury Secretary Samuel Ingham to create a plan to eliminate the debt. Jackson was responsible for carrying out the plan.

Second Bank of the United States

Jackson became involved in a "Bank War" with the Second Bank of the United States, a federally-funded private institution that Jackson saw as unconstitutional. The bank was chartered in 1816 to provide loans, further establish the circulation of currency, and assist the Treasury. Jackson vetoed a bill to re-charter the bank, and instead distributed federal deposits to state banks.

Policy on Government Spending

Jackson also believed the federal government should not finance state and local projects. This policy kept the government from incurring new debt.

Source:

PBS: Andrew Jackson

Andrew Jackson, Robert Remini, 2008

Financial Founding Fathers, Robert Wright and David Cowen, 2006

Encyclopedia of the Supreme Court of the United States, David S. Tanenhaus, 2008

More Questions. Additional questions in this category.

ANSWERBAG BUZZ

How to eliminate the national debt

Eliminate the national debt

Did andrew jackson reduce the nation s debt

Andrew jackson has eliminated the national debt

Andrew jackson and national debt

Question

How did Andrew Jackson eliminate the national debt?

Answers. 1 helpful answer below.