After the end of World War II, the U.S. economy grew.
- 1946-1949: The Government collected enough in taxes and other fees so that there was more money than needed to pay for programs - meaning that there was a budget surplus. Even with that surplus, the debt remained large - never falling below $250 billion.
- 1950: The U.S. got involved in the Korean War. This caused growth in military spending, but the debt only grew a small amount.
- 1960s: The U.S. debt increased a great deal as the Government started many new programs to help the poor, improve education, and provide better transportation. There were also programs to fight crime and drug abuse, as well as end racial discrimination. The U.S. also took part in the Vietnam War. The debt increased to $382.6 billion by 1960.
- 1970s: Debt continued to grow as receipts failed to keep up with spending.
- The economy also faced quickly increasing gas and oil prices, and rising inflation (an increase in prices for the things you buy).
By 1979, the debt reached more than $845 billion. During the 1970s, the amount of the Government’s debt sold to foreign governments increased a great deal. By 1973, foreign governments owned $28.5 billion of the U.S. Government’s debt.
- 1980s: Debt continued to grow and reached nearly $3 trillion by 1989. Personal debt also grew during this period. People borrowed more money from banks to buy houses and began to rely on credit cards to buy the things they wanted.
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Following the end of World War II, the U.S. experienced a period of economic growth. Between 1946 and 1949, the government's fiscal management resulted in a budget surplus, indicating that the revenue from taxes and fees exceeded the expenditure on programs. However, despite this surplus, the national debt remained consistently high, never dropping below $250 billion.
The year 1950 marked the beginning of the Korean War, leading to an increase in military spending. Surprisingly, the debt only saw a marginal increase during this period. Moving into the 1960s, the U.S. witnessed a significant rise in debt as the government initiated numerous programs aimed at addressing poverty, improving education, enhancing transportation, combating crime and drug abuse, and tackling racial discrimination. The U.S. also became involved in the Vietnam War, contributing to a debt increase to $382.6 billion by 1960.
The 1970s saw a continuation of the debt growth, exacerbated by spending outpacing receipts. Economic challenges, such as soaring gas and oil prices and rising inflation, further strained the financial landscape. By 1979, the national debt had surpassed $845 billion. During this decade, there was a noteworthy increase in the amount of government debt held by foreign nations, reaching $28.5 billion by 1973.
The 1980s witnessed a continued expansion of the debt, reaching nearly $3 trillion by 1989. This era also saw a surge in personal debt, with individuals relying on credit cards and increased borrowing for housing purchases.
In summary, the post-World War II period was marked by economic growth, military conflicts impacting spending, and a continuous increase in both national and personal debt. These developments were influenced by various government programs, global events, and economic challenges, shaping the economic landscape of the United States during these decades.
