PRESIDENTS’ DAY 2020. THE LEGACY OF US NATIONAL DEBT

The national debt stands at $22.72 trillion as of Sept. 30, 2019. This enormous bill didn’t come from nowhere, and it’s safe to say that the U.S. will likely continue borrowing money in the foreseeable future. So, how worried should Americans be about the national debt? There’s not a lot of agreement across the political spectrum on the answer to that question.

However, understanding why the U.S. borrows money and how different historical events shaped that process is important to any informed voter, especially with another election approaching in November. Knowing how much the federal government borrowed to deal with various issues and events throughout the last century can help you gauge whether each politician’s plans to address the national debt are feasible.

For example, you can note how 1933 saw a marked increase in debt as the new Roosevelt administration broke with the fiscal orthodoxy of the time by employing large deficits to combat the Great Depression. Each recession has correlated with a spike in borrowing, with tax revenues dropping when the needs of the American people were at their highest. All told, tracking the progress of the national debt is a valuable way to understand the U.S. government’s relationship to its people.

Using data from TreasuryDirect and the Bureau of Labor Statistics’ consumer price index inflation calculator, GOBankingRates analyzed the total U.S. national debt from 1900 to present in five-year increments and adjusted the outstanding debt for inflation to provide context in today’s dollars. 

1900-1904

• Outstanding debt in 1900: $2.14 billion
  • Debt adjusted for inflation: $65.37 billion
• Outstanding debt in 1904: $2.26 billion
  • Debt adjusted for inflation: $65.37 billion

Change in debt between 1900-1904: 5.95%
Change in debt adjusted for inflation: -$4.55 million

1905-1909

• Outstanding debt in 1905: $2.27 billion
  • Debt adjusted for inflation: $66.42 billion
• Outstanding debt in 1909: $2.64 billion
  • Debt adjusted for inflation: $74.54 billion

Change in debt between 1905-1909: 16.04%
Change in debt adjusted for inflation: $8.12 billion

1910-1914

• Outstanding debt in 1910: $2.65 billion
  • Debt adjusted for inflation: $71.75 billion
• Outstanding debt in 1914: $2.91 billion
  • Debt adjusted for inflation: $74.84 billion

Change in debt between 1910-1914: 9.80%
Change in debt adjusted for inflation: $3.09 billion

1915-1919

• Outstanding debt in 1915: $3.06 billion
  • Debt adjusted for inflation: $77.81 billion
• Outstanding debt in 1919: $27.39 billion
  • Debt adjusted for inflation: $406.87 billion

Change in debt between 1915-1919: 795.68%
Change in debt adjusted for inflation: $329.06 billion

1920-1924

• Outstanding debt in 1920: $25.95 billion
  • Debt adjusted for inflation: $333.46 billion
• Outstanding debt in 1924: $21.25 billion
  • Debt adjusted for inflation: $319.35 billion

Change in debt between 1920-1924: -18.12%
Change in debt adjusted for inflation: -$14.10 billion

1925-1929

• Outstanding debt in 1925: $20.52 billion
  • Debt adjusted for inflation: $301.26 billion
• Outstanding debt in 1929: $16.93 billion
  • Debt adjusted for inflation: $254.44 billion

Change in debt between 1925-1929: -17.47%
Change in debt adjusted for inflation: -$46.83 billion

1930-1934

• Outstanding debt in 1930: $16.19 billion
  • Debt adjusted for inflation: $249.05 billion
• Outstanding debt in 1934: $27.05 billion
  • Debt adjusted for inflation: $518.80 billion

Change in debt between 1930-1934: 67.15%
Change in debt adjusted for inflation: $269.75 billion

1935-1939

• Outstanding debt in 1935: $28.70 billion
  • Debt adjusted for inflation: $538.35 billion
• Outstanding debt in 1939: $40.44 billion
  • Debt adjusted for inflation: $747.62 billion

Change in debt between 1935-1939: 40.90%
Change in debt adjusted for inflation: $209.27 billion

1940-1944

• Outstanding debt in 1940: $42.97 billion
  • Debt adjusted for inflation: $788.68 billion
• Outstanding debt in 1944: $201.00 billion
  • Debt adjusted for inflation: $2.93 trillion

Change in debt between 1940-1944: 367.80%
Change in debt adjusted for inflation: $2.15 trillion

1945-1949

• Outstanding debt in 1945: $258.68 billion
  • Debt adjusted for inflation: $3.69 trillion
• Outstanding debt in 1949: $252.77 billion
  • Debt adjusted for inflation: $2.73 trillion

Change in debt between 1945-1949: -2.29%
Change in debt adjusted for inflation: -$963.81 billion

1950-1954

• Outstanding debt in 1950: $257.36 billion
  • Debt adjusted for inflation: $2.74 trillion
• Outstanding debt in 1954: $271.26 billion
  • Debt adjusted for inflation: $2.59 trillion

Change in debt between 1950-1954: 5.40%
Change in debt adjusted for inflation: -$152.83 billion

The increase in national debt from 1950-1954 was outpaced by inflation, so the value of the dollar decreased faster than the rate at which the national debt grew.

1955-1959

• Outstanding debt in 1955: $274.37 billion
  • Debt adjusted for inflation: $2.63 trillion
• Outstanding debt in 1959: $284.71 billion
  • Debt adjusted for inflation: $2.51 trillion

Change in debt between 1955-1959: 3.77%
Change in debt adjusted for inflation: -$116.70 billion

The increase in national debt from 1955-1959 was outpaced by inflation, so the value of the dollar decreased faster than the rate at which the national debt grew.

1960-1964

• Outstanding debt in 1960: $286.33 billion
  • Debt adjusted for inflation: $2.49 trillion
• Outstanding debt in 1964: $311.71 billion
  • Debt adjusted for inflation: $2.58 trillion

Change in debt between 1960-1964: 8.86%
Change in debt adjusted for inflation: $98.14 billion

1965-1969

• Outstanding debt in 1965: $317.27 billion
  • Debt adjusted for inflation: $2.59 trillion
• Outstanding debt in 1969: $353.72 billion
  • Debt adjusted for inflation: $2.48 trillion

Change in debt between 1965-1969: 11.49%
Change in debt adjusted for inflation: -$111.54 billion

The increase in national debt from 1965-1969 was outpaced by inflation, so the value of the dollar decreased faster than the rate at which the national debt grew.

1970-1974

• Outstanding debt in 1970: $370.92 billion
  • Debt adjusted for inflation: $2.46 trillion
• Outstanding debt in 1974: $475.06 billion
  • Debt adjusted for inflation: $2.48 trillion

Change in debt between 1970-1974: 28.08%
Change in debt adjusted for inflation: $19.62 billion

1975-1979

• Outstanding debt in 1975: $533.19 billion
  • Debt adjusted for inflation: $2.55 trillion
• Outstanding debt in 1979: $826.52 billion
  • Debt adjusted for inflation: $2.93 trillion

Change in debt between 1975-1979: 55.01%
Change in debt adjusted for inflation: $378.78 billion

1980-1984

• Outstanding debt in 1980: $907.70 billion
  • Debt adjusted for inflation: $2.83 trillion
• Outstanding debt in 1984: $1.57 trillion
  • Debt adjusted for inflation: $3.89 trillion

Change in debt between 1980-1984: 73.21%
Change in debt adjusted for inflation: $1.06 trillion

1985-1989

• Outstanding debt in 1985: $1.82 trillion
  • Debt adjusted for inflation: $4.35 trillion
• Outstanding debt in 1989: $2.86 trillion
  • Debt adjusted for inflation: $5.92 trillion

Change in debt between 1985-1989: 56.73%
Change in debt adjusted for inflation: $1.57 trillion

1990-1994

• Outstanding debt in 1990: $3.23 trillion
  • Debt adjusted for inflation: $6.36 trillion
• Outstanding debt in 1994: $4.69 trillion
  • Debt adjusted for inflation: $8.14 trillion

Change in debt between 1990-1994: 45.14%
Change in debt adjusted for inflation: $1.78 trillion

1995-1999

• Outstanding debt in 1995: $4.97 trillion
  • Debt adjusted for inflation: $8.39 trillion
• Outstanding debt in 1999: $5.66 trillion
  • Debt adjusted for inflation: $8.72 trillion

Change in debt between 1995-1999: 13.72%
Change in debt adjusted for inflation: $337.54 billion

2000-2004

• Outstanding debt in 2000: $5.67 trillion
  • Debt adjusted for inflation: $8.47 trillion
• Outstanding debt in 2004: $7.38 trillion
  • Debt adjusted for inflation: $10.04 trillion

Change in debt between 2000-2004: 30.05%
Change in debt adjusted for inflation: $1.57 trillion

2005-2009

• Outstanding debt in 2005: $7.93 trillion
  • Debt adjusted for inflation: $10.44 trillion
• Outstanding debt in 2009: $11.91 trillion
  • Debt adjusted for inflation: $14.27 trillion

Change in debt between 2005-2009: 50.14%
Change in debt adjusted for inflation: $3.83 trillion

2010-2014

• Outstanding debt in 2010: $13.56 trillion
  • Debt adjusted for inflation: $15.98 trillion
• Outstanding debt in 2014: $17.82 trillion
  • Debt adjusted for inflation: $19.35 trillion

Change in debt between 2010-2014: 31.43%
Change in debt adjusted for inflation: $3.37 trillion

2015-2019

• Outstanding debt in 2015: $18.15 trillion
  • Debt adjusted for inflation: $19.68 trillion
• Outstanding debt in 2019: $22.72 trillion
  • Debt adjusted for inflation: $22.84 trillion

Change in debt between 2015-2019: 25.17%
Change in debt adjusted for inflation: $3.16 trillion