President Donald Trump defended the escalating national debt, comparing it to real estate leveraging. He also proposed that the government should hold equity in corporations.
Trump contended that the country’s rising debt is not as alarming as it appears, especially when seen through the lens of a real estate tycoon. In a pre-China visit Fortune interview, published on Monday, He argued that the “total value of America” and its natural assets, such as the Grand Canyon and its surrounding oceans, is in the hundreds of trillions of dollars. As such, even with a national debt of nearly $40 trillion, the country is “way under-levered.”
Trump also touched on his unconventional approach to deal-making, citing a potential railroad merger where he would want the government to have equity. He pointed to stakes his administration has claimed in companies like Intel Corp. (NASDAQ:INTC) and U.S. Steel, despite critics labeling his actions as un-American. Trump dismissed these criticisms, suggesting they overlook the larger issue of the country’s $38 trillion debt.
Previously, Trump had planned to address the debt crisis with the tariff revenue and investment from foreign countries. On several occasions, even in the latest Fortune interview, the President has expressed displeasure that billions have to be refunded following the court ruling.
Debt Fears Grow Ahead Of Election
The national debt has been a topic of mounting concern, as it is now larger than the economy itself and is on track to hit $40 trillion by the November elections. According to the Bureau of Economic Analysis, U.S. national debt rose to 100.2% of GDP at the end of March, surpassing the size of the economy for the first time since World War II. Publicly held debt reached $31.27 trillion, slightly exceeding the nation’s nominal GDP of $31.22 trillion over the previous 12 months.
Economist Steve Hanke, an economist at Johns Hopkins University, called for a constitutional debt brake in the U.S. against this backdrop.
Meanwhile, billionaire banker Jamie Dimon has warned that the debt issue could lead to volatile markets, increased rates, and a reluctance to buy U.S. Treasuries. He called for the problem to be addressed sooner rather than later.
While AI productivity has been suggested as a potential solution to the debt crisis, a Yale Budget Lab report warned that increased federal spending to support displaced workers could undermine these plans.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Photo: Michael Candelori / Shutterstock
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