The Net Worth of the U.S. Federal Government, 1784-1802
AbstractThe War for Independence (1775-1783) left the federal government deeply in debt. The spoils from winning that war also gave it an empire of land. So, post-1783 was the federal government solvent, or at what point did it become solvent? Did winning the war, in effect, pay for the war? While these questions have not been addressed before, knowing the answer is important for understanding why a particular method was chosen for funding the national debt, how the new Constitution adopted by Congress in 1789 affected public finance, and how this new untried government - that was deeply in debt and had been in default on this debt for half a decade after independence - could garner an excellent credit rating by the early 1790s. Evidence is gathered on the government's liabilities and assets to estimate its net worth and so answer these questions.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 07-02.
Length: 13 pages
Date of creation: Jan 2007
Date of revision:
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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
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Monetary Policy; Economic History;
Other versions of this item:
- Farley Grubb, 2007. "The Net Worth of the US Federal Government, 1784–1802," American Economic Review, American Economic Association, vol. 97(2), pages 280-284, May.
- NEP-ALL-2007-04-21 (All new papers)
- NEP-CBA-2007-04-21 (Central Banking)
- NEP-HIS-2007-04-21 (Business, Economic & Financial History)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Farley Grubb, 2005. "The Net Asset Position of the U.S. National Government, 1784-1802: Hamilton's Blessing or the Spoils of War?," NBER Working Papers 11868, National Bureau of Economic Research, Inc.
- Grubb, Farley, 2006. "The US Constitution and monetary powers: an analysis of the 1787 constitutional convention and the constitutional transformation of the US monetary system," Financial History Review, Cambridge University Press, vol. 13(01), pages 43-71, April.
- Farley Grubb, 2008.
"The Continental Dollar: What Happened to It after 1779?,"
08-09, University of Delaware, Department of Economics.
- Farley Grubb, 2008. "The Continental Dollar: What Happened to It after 1779?," NBER Working Papers 13770, National Bureau of Economic Research, Inc.
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