Under President Donald Trump, the national debt of the United States increased significantly. During his time in office, from January 2017 to January 2021, the national debt rose by nearly $7.8 trillion, from approximately $19.9 trillion to around $27.7 trillion. This increase was driven by several factors, including:
Tax Cuts and Jobs Act of 2017: This legislation significantly reduced corporate tax rates and included various tax cuts for individuals. While supporters argued it would spur economic growth, the reduction in revenue contributed to the rising national debt.
Increased Government Spending: Both defense and non-defense spending increased under the Trump administration, with bipartisan support in Congress. This included military spending hikes, along with spending on various domestic programs.
COVID-19 Pandemic Relief: In 2020, the U.S. government passed several large relief packages to mitigate the economic impact of the COVID-19 pandemic, including the CARES Act. These packages, while necessary to support the economy and public health, resulted in substantial additional borrowing and further increased the national debt.
Role of Congress and the President
While it is true that Congress holds the "power of the purse" and is responsible for passing budgets, tax laws, and spending bills, the President also plays a significant role in shaping fiscal policy:
Budget Proposals: The President submits an annual budget proposal to Congress, outlining spending priorities and revenue policies. This sets the tone for budget negotiations and reflects the administration's policy goals.
Approval and Veto Power: The President can sign or veto spending bills passed by Congress. While a veto can be overridden by a two-thirds majority in both the House and Senate, the President's approval or rejection of a bill can influence fiscal decisions.
Shared Responsibility for Debt
Bipartisan Responsibility: The increase in the national debt is a result of policies enacted by both parties over many years. Both Republicans and Democrats have supported deficit-increasing policies, such as tax cuts, military spending, and social programs, contributing to the debt.
Structural Issues: The national debt reflects broader structural issues, including entitlement spending (e.g., Social Security, Medicare), defense spending, and the gap between federal revenue and expenditures. Addressing these issues requires difficult political decisions that often face resistance from various interest groups.
Conclusion
While the President is not entirely "powerless" and is more than a "rubber stamp," Congress indeed plays a crucial role in creating and managing the nation's fiscal policy. The responsibility for the national debt and fiscal challenges lies with both branches of government, as well as with lawmakers from both parties.
