1801 Thomas Jefferson - Slashing Big Government

Most of us don't think of big government when we think of George Washington or John Adams. But in 1800, tensions between the Federalists and the Democratic-Republicans were boiling over the national debt and the role of central government. The Democratic-Republicans saw the Federalists' increasing national power as a sign that the country was moving toward a monarchy. When Thomas Jefferson a Democratic-Republican took the oath of President, our country was $83 million in debt. A 16% rise since Washington first took office in 1790.

Thomas Jefferson understood that debt was necessary to invest in the public good and to pay for war, but he also believed that debt siphoned money from taxpayers forcing them to pay interest and give more funds and power to bankers. Jefferson deeply distrusted bankers and was intent on reducing American debt. He started by reducing the size and number of government offices and continued by chopping the military in half. He then eliminated the whiskey excise tax and all other federal internal taxes.

By 1803, after two years of service, and despite the Louisiana Purchase and the Barbary wars, the national debt fell to $57 million. Thomas Jefferson did this by sticking to his principle that the federal government was only responsible for the foreign affairs and the protection of the mutual relations of the states. The responsibility of caring for persons, property and even the reputation of the country was the responsibility of the individual states.   As Jefferson stated in his first annual address to Congress, already the government was "too complicated" and "too expensive". 

"When we consider that this Government is charged with the external and mutual relations only of these States; that the States themselves have principal care of our persons, our property, and our reputation, constituting the great field of human concerns, we may well doubt whether our organization is not too complicated, too expensive; whether offices and officers have not been multiplied unnecessarily and sometimes injuriously to the service they were meant to promote"

 Jefferson continued, by offering to document all of those organizations and persons who are currently drawing funds of any kind form the government.  Could you imagine what such a list would like today.  

"I will cause to be laid before you an essay toward a statement of those who, under public employment of various kinds, draw money from the Treasury or from our citizens. Time has not permitted a perfect enumeration, the ramifications of office being too multiplied and remote to be completely traced in a 1st trial."

Jefferson, explained that he had already begun reducing the government payrolls, and planned to pursue additional reforms.

"Among those who are dependent on Executive discretion I have begun the reduction of what was deemed unnecessary. The expenses of diplomatic agency have been considerably diminished. The inspectors of internal revenue who were found to obstruct the accountability of the institution have been discontinued. Several agencies created by Executive authorities, on salaries fixed by that also, have been suppressed, and should suggest the expediency of regulating that power by law, so as to subject its exercises to legislative inspection and sanction.

Other reformations of the same kind will be pursued with that caution which is requisite in removing useless things, not to injure what is retained. But the great mass of public offices is established by law, and therefore by law alone can be abolished. Should the Legislature think it expedient to pass this roll in review and try all its parts by the test of public utility, they may be assured of every aid and light which Executive information can yield."

Jefferson knew what was at stake.   The general tendency of government is to grow, not shrink.   Because the nature of government is to "multiply offices" and "to the ultimate term of burthen which the citizen can bear", Jefferson told Congress that it was necessary to take every chance it has
"for taking off the surcharge" or reduce taxes.     Jefferson then left Congress with a warning that is perhaps too late for the current generation to heed.   That is, if the Government is allowed to tax the earnings, leaving only that which is required for survival, then the government will have consumed the "whole residue of what it was instituted to guard".

"Considering the general tendency to multiply offices and dependencies and to increase expense to the ultimate term of burthen which the citizen can bear, it behooves us to avail ourselves of every occasion which presents itself for taking off the surcharge, that it never may be seen here that after leaving to labor the smallest portion of its earnings on which it can subsist, Government shall itself consume the whole residue of what it was instituted to guard."

 In conclusion, President Jefferson suggested to Congress that an office and rules be established to ensure restrict the appropriation of funds to specific purposes.   Jefferson suggested that a single department be responsible for "all accountabilities for money, where the examinations may be prompt, efficacious, and uniform".

"In our care, too, of the public contributions intrusted to our direction it would be prudent to multiply barriers against their dissipation by appropriating specific sums to every specific purpose susceptible of definition; by disallowing all applications of money varying from the appropriation in object or transcending it in amount; by reducing the undefined field of contingencies and thereby circumscribing discretionary powers over money, and by bringing back to a single department all accountabilities for money, where the examinations may be prompt, efficacious, and uniform."

In 1801, the debt was about $83 million,or about $16 per person. Even adjusted for inflation, that would be somewhere between $300 and $400 per person. Today, we over $17 trillion in debt, or $58,600 per person. Just imagine what Thomas Jefferson would say today!   Is it too late, or has the government already consumed "the whole residue of what it was instituted to guard"?

http://www.presidency.ucsb.edu/ws/index.php?pid=29443
http://millercenter.org/president/jefferson/essays/biography/4
http://historynewsnetwork.org/article/149745