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government came into existence and for about a 150 years
thereafter the government managed to keep a balanced budget. The only times a
budget deficit existed during these first 150 years were in times of war or
other catastrophic events. The Government, for instance, generated deficits
during the War of 1812, the recession of 1837, the Civil War, the depression of
the 1890s, and World War I. However, as soon as the war ended the deficit
would be eliminated and the economy which was much larger than the amounted debt
would quickly absorb it. The last time the budget ran a surplus was in 1969
during Nixon's presidency...
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