The national debt grew at an accelerated pace as a result of the 2008 financial crisis, when Congress and the Obama administration approved stimulus funding to keep the economy afloat.
Debt began to stabilize at the start of Trump 's term, but rebounded last year as a result of the tax cuts enacted at the end of 2017 and the drastic reduction in the tax rate. Company taxation.
As a Candidate, Trump Had promised to "get rid" of the national debt, declaring to the Washington Post in 2016 that he could win the US debt-free "over a period of eight years".
According to the Congressional Budget Office, the total public debt rose to 78% of the US gross domestic product in 2018, the highest percentage since 1950. The deficit – or the difference between what the government spends and what it absorbs over a year – soared to 3.8% of GDP in 2018, compared to 3.5% in 2017.
This is particularly unusual in such a strong economy with no new major expenses. If no change is made, the CBO predicts that the public debt will reach 96% of GDP by 2028. Much of this debt – $ 1.9 trillion between 2018 and 2028 – will be due to the Employment Reduction and Employment Act, the CBO. reported last April.
Asked about the rise in debt on Thursday morning, the chairman of the Council of Economic Advisers, Kevin Hassett, said that Mr. Trump was "absolutely" concerned about this problem. This is why he asked for a 5% reduction in the budget of each Cabinet agency for the next budget cycle.
"We can disagree on many things, but we can agree that the time has come for serious action on the deficit," Hassett said.
The public debt ceiling imposed by Congress comes into effect on [March21965]. According to an analysis of the Bipartisan Policy Center, the Treasury will be able to finance government operations until mid-summer by transferring money. around different pots.
