Did you know that President Trump entered the White House with the highest national debt as a share of the economy than any President other than Harry Truman in 1945?
That’s just one indication that President Trump faces a serious debt situation that requires action. Our partners at the Committee for a Responsible Federal Budget assessed the state of play in a new study out today. Here are a few more key points to note:
- Unlike the debt under President Truman, which began to fall rapidly shortly after World War II ended, debt is projected to rise continuously during Trump’s time in office and beyond.
- Federal entitlement programs and interest currently represent a larger share of the budget than under any previous President, leaving relatively less room for defense and non-defense discretionary spending.
- If in office for two terms, President Trump could face the insolvency of three major trust funds, and an additional one – the Social Security Old-Age and Survivors Insurance trust fund – soon after.
There’s no question the debt situation is bad and it will only get worse unless something is done. This is a time for leadership to fix the debt.