A Solution to the National Debt

Abstract

The National Debt may be solved with a combination of Tax and Fiscal Policy using a law drafted in 1862.This paper reflects on the legal and economic solution to the National Debt. The National Debt is currently used as political football to give reason why funds should not be allocated to certain programs. In reality, the debt is primarily funds owed to ourselves. The United States faced a fiscal crisis in 1862 with the advent of the civil war. During this time, there was not enough money to fund a war or enough taxes to pay for an army. Congress invoked legislation to create a currency issued not by the Federal Reserve, but by the U.S. treasury department. This currency invoked a controversy that ended up in the Supreme Court of the United States.