Public health care, education and gun laws are the hottest issues in the
US election campaign. But neither Democratic nor Republican hopefuls
are eager to discuss the burning question of the country's financial
future.
US President Donald Trump is not exactly known for being humble when it
comes to describing his leadership credentials. Already in the run-up to
the 2016 elections that swept him to power, the then Republican
candidate pledged to "eliminate" the $19 trillion (€17.4 trillion) of US
debts within a period of eight years.
Now, almost four years later, a look at
Trump's debt reduction record
is sobering by all counts. Instead of lowering America's debt load,
figures recently released by the Congressional Budget Office (CBO) show
the upward trajectory of the country's financial problems.
Since
assuming office, the Trump administration has added a net total of $2.5
trillion in fresh debt, with the US budget deficit in the first four
months of 2020 alone rising by 25%. This means that Trump has already
spent close to 40% of the entire deficit last year.
The primary reason for the budget gap is Trump's 2017 package of tax
cuts, which he once described as a "great Christmas gift to the middle
class."
With overall US debts spiraling to $22.5 trillion, the CBO now has
warned that such a high and rising debt load could pose a severe
financial risk to the United States. The nonpartisan agency has
estimated that state spending could surpass revenue by $1 trillion in
2020.
Surprisingly though, neither the Democrats nor the Republicans have made this an issue in their campaigns for the US presidency.
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Trump also didn't
waste a word on the debt problem in his latest State of the Union
address and failed to chart out a clear reduction strategy. All he came
up with was the lofty promise of trimming state expenditure by $4.4
trillion over the next decade. At the same time, however, Trump plans
to
increase spending for the military, the space industry and for the wall he wants to building along the border with Mexico.
Among the Democratic hopefuls, too, the US's dire financial straits seem
to be on the backburner of their campaigns. In their first televised
debate, all of the candidates conspicuously ignored the debt issue, with
the ugly "deficit" word not being mentioned once in the 4-hour road
show. Public debts were only once briefly touched upon.
Political observers believe the Democrats have many reasons to keep
America's miserable finances flying under the radar during the
presidential primaries.
"The average American has no interest in
US debt at all," says G. William Hoagland, senior vice president at the
Washington-based think tank Bipartisan Policy Center. He told DW that
the booming US economy of the past years, including low interest rates
and unemployment, had Americans feeling less worried about the mounting
deficit.
"So why should Democrats address such a sensitive
topic and stick their neck out for it," he says, and notes that most of
the voters are satisfied overall with their current financial situation.
Read more: America′s massive debt load a no-show on the campaign trail | Business| Economy and finance news from a German perspective | DW | 25.02.2020