[Mick]

In 1946 nominal GDP was $228 billion; debt was $242 billion, so about 106% of GDP.  At the time, it probably seemed like that amount "could never be paid back".

Well...it never was paid back.  And 1946 is the well chosen example.  Prior to WWII, American had 1/4th of the world's manufacturing.  Immediately after WWII, the rest of the industrial world was destroyed and American had half of the world's manufacturing, with years and years of trade surpluses to come.  We haven't seen a trade surplus since the 1970s, and today we have about 18% of global manufacturing.

[Mick]

In 1946 nominal GDP was $228 billion; debt was $242 billion, so about 106% of GDP.  At the time, it probably seemed like that amount "could never be paid back".

Well...it never was paid back.  And 1946 is the well chosen example.  Prior to WWII, American had 1/4th of the world's manufacturing.  Immediately after WWII, the rest of the industrial world was destroyed and American had half of the world's manufacturing, with years and years of trade surpluses to come.  We haven't seen a trade surplus since the 1970s, and today we have about 18% of global manufacturing.