Thomas Jefferson's debt-reduction plan.

• Position: Brief article

From Presidential Leadership by Nick Ragone. Copyright [C]2011 by the author. Published by Prometheus Books (www.prometheusbooks.com)

UPON BECOMING PRESIDENT in 1801, Thomas Jefferson was determined to end the government's deficit spending and eliminate the national debt, which had grown to $17 million over the preceding dozen years. Jefferson's old nemesis Hamilton was primarily responsible for the debt, which he considered a "national blessing" because, in his estimation, it strengthened the federal government, nationalized the economy, and spurred the need for government revenues. Jefferson saw it the other way: it dangerously centralized the government power, practically invited intrusive taxes and government corruption, and created an economy that favored manufacturing and industry over farming.

[ILLUSTRATION OMITTED]

Jefferson's plan to tackle the debt was relatively simple: cut spending by reducing the number of federal jobs (which totaled only 130 when he took office); put the navy in dry dock and dramatically scale back the army; and...