> Since the government at the time did pay off the national debt
There was a brief period in the early half of the 19th Century where it paid off the debt, but the
it ramped up beforen the secession crisis, went sky high during the civil war, and was never paid off after that, so, no, in net budgets weren't balanced in the Revolution to WWI period.
Also, other problem with your scenario is that the US didn't start as a subsistence farming economy (which would have made it near worthless as a set of colonies.)
Sort of, but the point is it was not fiat money. There was no net inflation from 1800-1914.
> No, it doesn't.
Since the government at the time did pay off the national debt, that means balanced budgets.