Term: 1953–1961
Dwight D. Eisenhower came into office with a commitment to fiscal conservatism and a balanced budget. He successfully ended the Korean War, which helped reduce military expenditures. However, the overarching context of the Cold War demanded high levels of military preparedness. Eisenhower warned of the growing "military-industrial complex" but also oversaw significant spending on nuclear weapons as a deterrence strategy. This sustained defense spending prevented any major reduction in the national debt.
The most significant domestic spending program was the Federal-Aid Highway Act of 1956, which created the Interstate Highway System. While largely financed through a dedicated Highway Trust Fund, it represented a massive long-term federal investment. Despite achieving surpluses in three of his eight years, these investments ensured the debt continued to grow slowly and steadily.
Debt at Start of Term (1953): ~$266.0 billion
Debt at End of Term (1961): ~$289.0 billion
Total Increase: ~$23.0 billion
Percentage Increase: ~8.6%
Strong economic growth during the 1950s meant that the debt as a percentage of GDP actually decreased significantly, from about 71% to 55%.