Economists made a model of the U.S. economy. Our debt crashed the model
Economists made a model of the U.S. economy. Our debt crashed the model

Economists made a model of the U.S. economy. Our debt crashed the model

Economists made a model of the U.S. economy. Our debt crashed the model
Economists made a model of the U.S. economy. Our debt crashed the model
In 1929, the US had a GDP of $104B and a national debt of $16.4B
By 1933, the US had shrank to $57B in valuation, nearly 50% of its 1929 baseline. However, an austerity budget had kept national debt to a meager $23B. While economic scalds warned of a catastrophe, we had saved the country from itself. We had kept our budget tight and our gold reserves in tact. It was the most successful year of the American economy in its entire history.
Then the incoming President, FDR, institutes a sweeping expansionary economic policy which rapidly grew the US debt. From 1933 to 1945, the debt soared to $269B. US GDP was fully eclipsed, at a comparatively meager $229B. The surging rate of GDP was entirely thanks to year after year of domestic debt financing. The consequences would haunt us for generations.
As we all know, 1945 was one of the worst years for the US economy. I would like to think Americans will have learned a lesson from this story. But instead, they continue to spend recklessly at the federal level, bloating our national debt year after year, and driving our economy into the pavement as a result. We currently have a GDP of $27T and a Debt of $35T. Our country is ruined. Our economy is in shambles. We are the poorest nation on Earth. And yet we will not stop.
We need to go back. Herbert Hoover was right, but we wouldn't listen. We need to go back.