U.S. Debt Concerns Rise Amid Trump's Fiscal Policies

According to PANews, concerns are mounting over U.S. President Donald Trump's fiscal policies, which are contributing to a significant increase in national debt. The administration's tariff policies have led to stock market declines and a drop in consumer confidence. Additionally, Trump's efforts to expand presidential powers and deport illegal immigrants are raising alarms. The current debt crisis is exacerbated by plans from Trump and the Republican Party to significantly increase borrowing. While the existing debt issues are not solely Trump's responsibility, both Democrats and Republicans share the blame. Since 1980, U.S. federal debt has surged during three major periods: the Reagan and George H.W. Bush administrations in the 1980s and early 1990s, the Obama administration during the Great Recession, and Trump's first term amid the COVID-19 pandemic. The long-term rise in government debt is attributed to major challenges such as the Cold War, the Great Recession, and the pandemic, alongside Republican tax cuts without corresponding spending reductions. Historically, Democrats were seen as more fiscally responsible, but this changed during President Biden's tenure. Although federal debt decreased under Biden due to inflation, his administration's significant spending on pandemic relief, student loan forgiveness, and healthcare subsidies continued without tax increases to offset these expenses. Despite a strong economic recovery and the waning threat of the pandemic, Biden's administration has continued borrowing at unprecedented rates during non-recession periods. This approach is considered unwise, as rising interest rates are now highlighting the debt issue. As government bonds are refinanced at higher rates, interest costs as a percentage of GDP are climbing sharply, nearing historical highs from the early 1990s. The situation is further complicated by the Republican Party's plans for substantial tax cuts, which could worsen the debt problem. The Department of Government Efficiency, led by Elon Musk, has not implemented effective measures to control spending. With Democrats becoming fiscally irresponsible and Republicans failing to enforce fiscal restraint, the U.S. economy faces potential challenges ahead.