What actions did Thomas Jefferson take to lower the national debt?
Jefferson paid only $15 million for the Louisiana Territory.
Jefferson persuaded Congress to end the Alien and Sedition Acts
Jefferson streamlined government and increased sales of federal land.
Thomas Jefferson took several actions to lower the national debt. Some of these actions include:
1. Reduced Military Spending: Jefferson significantly reduced military spending, effectively downsizing the Army and Navy. He believed in a minimal standing army and focused on a militia system instead, which helped save government funds.
2. Cut Government Expenses: Jefferson worked to streamline the federal government, reducing unnecessary costs and eliminating government positions that he deemed unnecessary. This included reducing the number of diplomats, cutting back on military expenses, and eliminating excessive government expenditures.
3. Increased Revenue from Land Sales: Jefferson increased the sales of federal land, especially in the western territories. This not only helped to generate revenue but also encouraged westward expansion and colonization.
4. Reduced Interest Payments: Jefferson aimed to reduce the interest payments on the national debt. He believed in managing the debt through careful planning and fiscal responsibility, which included negotiating lower interest rates and avoiding unnecessary borrowing.
5. Paid Off the National Debt: Although Jefferson did not entirely eliminate the national debt, he made significant efforts to pay down a substantial amount. During his presidency, he managed to reduce the debt from around $83 million to around $57 million.
6. Encouraged Economic Growth: Jefferson strongly supported policies that promoted economic growth, such as free trade and agricultural expansion. He believed that a flourishing economy would contribute to lowering the national debt by increasing government revenue.
It's essential to note that while Jefferson made efforts to lower the national debt, he faced challenges and economic setbacks during his presidency. Additionally, some of his decisions, such as the Embargo Act of 1807, aimed at protecting American interests, ended up negatively impacting the economy and increasing the debt in the short term.