Republican presidential frontrunner Donald Trump’s wide-ranging interviewwith the Washington Post’s Bob Woodward and Robert Costa, published Saturday, made news on many different fronts. From his prediction of a ‘very massive recession’ to his description of himself as the ‘Lone Ranger’ of American politics trump was, even for him, highly quotable.
But for people focused on fiscal issues, it was his claim that he would eliminate the federal debt – not the annual deficit, but the entire outstanding debt of the federal government – within eight years that really raised some eyebrows.
The Treasury Department calculates the nation’s federal debt at $19.3 trillion, although it could be as low as $13.9 trillion (if you eliminate debts the government owes itself, like Treasury securities held by the Social Security Trust Fund).
Trump, however, consistently describes the debt as being more than $19 trillion, so when he promises to eliminate the debt within eight years, it’s reasonable to assume that he is referring to the higher figure, which will be approaching $20 trillion by the time the next president takes office.
The reaction most people familiar with government spending and borrowing had to Trump’s promise was that it is utterly delusional.
This post was published at David Stockmans Contra Corner on April 7, 2016.
Recent Comments