In our current economic landscape, the national debt has become a hot-button issue that many people have strong opinions about. However, it’s essential to understand the history and reasoning behind why we borrowed in the first place. The theory was that borrowing money instead of printing it would not increase the existing money supply, theoretically avoiding inflationary effects.
But as time went on, the practice of borrowing money became more common, with deficits growing due to political agendas and military spending. The Democrats pushed their Marxist agendas, while the Neocons focused on waging wars and expanding the military presence globally. This led to massive deficits and a cycle of borrowing that has continued to this day.
Looking back at historical events, such as the Gold Panic in the London gold market in the 1960s, we can see how the outflow of capital was linked to the USA’s military presence worldwide. The dollars spent were not necessarily benefiting the economy but rather fulfilling political goals and maintaining hegemonic power.
Borrowing money has its consequences, especially when it comes to paying interest on the debt. This year alone, we are set to spend about $1 trillion on interest alone, equivalent to the total national debt when Reagan took office in 1981. A significant portion of the national debt is accumulative interest, meaning it has not been used to improve society or support those in need.
In contrast, the Romans had a system of taking care of widows and orphans, showing a more direct and beneficial use of borrowed funds. If we had chosen to print money instead of borrowing, it could have been less inflationary and potentially created more economic opportunities.
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