US National Debt Increased by $2 Trillion During Trump Presidency
OREANDA-NEWS US public debt at the end of 2018 amounted to $21.9 trillion, an increase of $2 trillion compared to the beginning of 2017, when Donald Trump took the presidency. This was reported by CNN, citing data from the Ministry of Finance.
According to the Finance Ministry, the US national debt began to grow after the financial crisis in 2008. At the beginning of Trump's term, it began to decline, but in 2018 it began to grow again due to the tax reform carried out at the end of 2017.
The office of the US Congress on budget reports that the national debt at the end of 2018 was 78% of GDP, which is the highest since 1950. The budget deficit rose from 3.5% in 2017 to 3.8% of GDP in 2018.
Experts in Congress in April 2018 predicted the growth of public debt to 96% of GDP by 2028, if the situation does not change. Most of the amount of public debt ($1.9 trillion) will be due to changes in the tax system, in particular the law on tax cuts and job creation (Tax Cuts and Jobs Act), according to which the corporate tax rate is reduced to 20%.
Chairman of the White house Council of economic advisers Kevin Hassett said that trump is "absolutely concerned" about the growth of public debt, so he demanded a budget reduction of 5% of each Agency of the US Cabinet in the next budget cycle. "We may not agree with many things, but we can agree that maybe now is the time to seriously address the issue of scarcity," Hasset said.
In the spring of 2016, Donald Trump, US presidential candidate from the Republican party, in an interview with the Washington Post promised to release the US from debt over the next eight years.
In December, the rating Agency Moody's predicted a deterioration in the financial stability of the United States. According to forecasts, in 2019, the US budget deficit will grow, and the national debt will increase to 100% of GDP by 2028.