U.s. National debt continues to explode: not an election issue

u.s. national debt continues to explode: not an election ie

Donald Trump continues to push back against the four non-white female politicians, pointing to the "Women for Trump". Image: c-span video

National debt has grown to $22 trillion, and the government could run out of money again in September

The King of Debt, as Donald Trump used to call himself, like his predecessors, has powerfully increased the national debt while lowering the tax burden on the wealthy and business owners, increasing the stimulus budget, and cutting some social programs in return. According to a Congressional Budget Office (CBO) report, the budget deficit has continued to grow under Donald Trump because more has always been spent than taken in. Under the Obama administration and Vice President Biden, who is running for president again, the national debt has grown by $9 trillion to nearly $20 trillion. One reason was the financial crisis, another was the wars financed by debt and the decreasing taxes for the rich under George W. Bush. Bush, but it has been going up steadily since then.

The national debt has now risen to $22 trillion. That is 78 percent of GDP. According to the CBO, under current conditions, the debt could rise to 144 percent of GDP by 2049, higher than ever before. New debt is not the main problem, it is the interest burden that is exploding, especially if interest rates rise significantly. Social Security and Medicare remain the biggest spending items ahead of the stimulus budget.

By September, the government could have run out of money again if Congress had not quickly raised the debt ceiling. This year, public debt is expected to grow by $900 billion due to lower tax revenues. On 12. July Treasury Secretary Mnuchin wrote a letter to Congress asking to raise the debt ceiling before the vacations to avoid a shutdown. A deal is apparently imminent, with the debt ceiling to be lifted for two years. In doing so, Democrats and Republicans want to keep the ie out of the campaign, even though congressmen from both parties don’t like the compromise that would keep the debt going up.

u.s. debt continues to explode: not an election ie

U-turn on Trump

What is striking is that so far the growing national debt does not seem to play a role in the election campaign – neither with the Republicans, who prefer not to address it, nor with the Democrats, who want to increase spending but also make the rich pay more. In the first two debates of the Democratic presidential candidates, the national debt was not mentioned; in Donald Trump’s performance record Promises kept prepared for the election, the national debt does not appear. For Republicans, it’s an about-face. There has been massive criticism of Obama’s increase in the debt in response to the financial crisis.

The Tea Party movement, founded in 2009, emerged, radicalized in the Republican Party, called for limiting the national debt in tandem with tax cuts, acted against Obama’s health care reform, and was demanded by business leaders. The crisis escalated in 2011 with the dispute over raising the debt ceiling; the agreement was to increase the national debt, but the Republicans wanted this to be accompanied by spending cuts, especially for the lower and middle income brackets. In addition, sequestration was introduced, i.e., automatic budget cuts if no agreement is reached on raising the debt ceiling. A shutdown occurred in 2013. Trump’s more severe shutdown had to do with Democrats not wanting to approve the funds he requested for his wall-building effort.

Yet Donald Trump had certainly campaigned on reducing the national debt with Republicans during the past presidential campaign. When he launched his 2015 campaign, he vowed to reduce the then $18 trillion national debt. Otherwise we would reach 24 trillion very quickly and the USA would become like Greece: "Believe me, we live in a bubble. We have artificially low interest rates. We have a stock market that, frankly, has been good for me, but I still see what’s happening. We have a too inflated stock market." Currently, Trump is fighting to keep the Fed from raising interest rates further and is bristling as the stock market rises to record highs again.

"I am the king of debt"

He also alluded to his title as "King of debt" an: "I am the ‘king of debt. That was good for me as a businessman, but it’s bad for the country. I made a fortune out of debts, now I will judge the USA", he said in 2016.

Now Trump is rather busy continuing to tout his successes, chow down on nationalism or patriotism, and continue to whore resentment against the four non-women Democratic politicians (the Squad) he asked to leave the country. In the process, politics is truly populistically reduced to whether women are "are capable of loving our country". And Trump’s campaign team, including his family, hastens to tout that women are for Trump, too, after all. At the last appearance, women were provided with signs so that Trump could say proud and flattered: "Look at all those signs, ‘#WomenForTrump’!" Moreover, the "Women for Trump" presented as "better squad".

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