What actions did Thomas Jefferson take to lower the national debt?
Thomas Jefferson took several actions to lower the national debt during his presidency:
1. Reduced military and navy expenses: Jefferson believed in maintaining a smaller military force and cutting back on naval expenditures. He sought to reduce the size of the standing army and decommission unnecessary warships, thus saving money.
2. Reduced government spending: Jefferson aimed to limit the scope of the federal government and reduce its expenses. He cut down on various government offices, eliminated unnecessary government jobs, and trimmed administrative costs.
3. Reduced interest payments: Jefferson sought to reduce interest payments on the national debt by refinancing it at a lower rate. He advocated for lower interest rates and approached the British government to negotiate a reduction in interest charges.
4. Cut internal taxes: To stimulate economic growth and increase revenue, Jefferson reduced internal taxes like excise taxes on domestic goods, including whiskey and salt. This encouraged economic activity and eventually resulted in increased government revenue.
5. Westward expansion: Jefferson pursued a policy of westward expansion, which included the Louisiana Purchase in 1803. This acquisition led to vast land gains and opened up opportunities for economic growth, resource exploitation, and increased revenue for the government.
6. Encouraged international trade: Jefferson aimed to boost foreign trade through various initiatives such as the Embargo Act of 1807. While this act proved controversial and had negative consequences on the economy, it was driven by Jefferson's desire to reduce dependence on foreign goods and achieve a more favorable balance of trade.
By implementing these measures, Jefferson effectively lowered the national debt during his presidency and left the Treasury in a much stronger fiscal position than when he first took office.