The US national debt during WWII was around 120% of GDP. In the years that followed, that ratio fell to below 40%. However, we didn't appreciably pay off our debts, the real dollar amount stayed a little over $2 trillion. We accomplished this feat, of course, by substantially increasing the GDP. It is easy to realize that it is fine for debt to continuously grow, so long as the GDP grows faster.
Also, the only president to entirely pay off the national debt, Andrew Jackson, triggered one of the deepest depressions in US history.
http://en.wikipedia.org/wiki/File:USDebt.png
The US national debt during WWII was around 120% of GDP. In the years that followed, that ratio fell to below 40%. However, we didn't appreciably pay off our debts, the real dollar amount stayed a little over $2 trillion. We accomplished this feat, of course, by substantially increasing the GDP. It is easy to realize that it is fine for debt to continuously grow, so long as the GDP grows faster.
Also, the only president to entirely pay off the national debt, Andrew Jackson, triggered one of the deepest depressions in US history.