The genesis of the first-ever American budget deficit was marked by a loan of $75 million, issued to the budding United States of America amidst the Revolutionary War. However, the payment was expedited, which led to a series of budget surpluses for subsequent years. Unfortunately, the War of 1812 brought about renewed borrowing, plunging us back into significant debt. This pattern of stepping into hefty debts due to large wars continually resurfaced over the next two centuries.
Source: NJBankruptcyLawFirms.com, SmartAsset.com.
