“Jackson Slaying the Many-Headed Monster,” 1828. Private collection, Peter Newark American Pictures / Bridgeman Art Library

It’s hard to believe the United States government was ever debt-free.

But it happened once – in 1835 – thanks to President Andrew Jackson. He was the first and only president to pay off the national debt completely.

One biographer says the former president viewed debt as a “moral failing,” a sort of “black magic.”

When he became president, Jackson was determined to rid the US of its national debt. After all, debt enslaves you to your creditors.  Continue reading →

For more than 125 years, the United States had a gold-coin, silver-coin monetary system. No, it was not a paper-money system backed by gold, as so many mainstream commentators have been taught to believe. It was a system in which gold coins and silver coins were the official money of the American people.

Yes, there were paper bills and notes and other debt instruments issued by the federal government. And yes, oftentimes people would use them as a convenient way to pay for things. But everyone understood that these were nothing more than promises to pay money, not money themselves. The money that these debt instruments were promising to pay consisted of gold coins and silver coins, which, again, were the official money — or “legal tender”— of the American people for more than a century. Continue reading →

(Bank Failures Played a Crucial Role in Deepening the Economic Crisis)

The Great Depression of 1929 stands as one of the most significant economic crises in modern history, casting a long shadow over the global financial landscape. Sparked by a catastrophic stock market crash in October, this era of intense economic turmoil led to widespread unemployment, poverty, and social unrest. In the United States, millions lost their jobs, homes, and savings, forcing families to confront an uncertain and often dire future. This article delves into the factors that precipitated the Great Depression, its profound impact on American society, the government responses that shaped economic policy, and the global ramifications of this devastating crisis. By understanding these aspects, we can glean valuable lessons that inform current economic practices and prepare us for future economic challenges.

The Causes of the Great Depression

The Great Depression did not arise in a vacuum; it was the result of a confluence of several factors that had been brewing throughout the 1920s. To fully understand the causes of the Great Depression, it is essential to look at the economic environment of the 1920s, commonly referred to as the “Roaring Twenties.” This period was marked by significant economic growth, technological advances, and an unprecedented rise in consumer culture. However, this prosperity was built on shaky foundations, and cracks were starting to appear.

One of the primary catalysts for the Great Depression was the rampant speculation in the stock market. During the late 1920s, an increasing number of Americans began investing in stocks, often borrowing money to purchase shares in hopes of quick profit. This speculative bubble was characterized by inflated stock prices that did not reflect the actual value of the companies. The euphoria surrounding stock investments created an unsustainable market driven by the belief that prices would continue to rise indefinitely. Unfortunately, this led to an inevitable collapse when the bubble burst in October 1929, resulting in a dramatic stock market crash that sent shockwaves throughout the economy. Continue reading →