Politics ( Europe Brief News): In a rare bipartisan moment, Donald Trump agrees with Sen. Elizabeth Warren on abolishing the US debt ceiling, signaling shifting views on national borrowing.
The announcement signaled a reversal of the years-long attacks on government budgets and other matters between Trump and Massachusetts Senator Warren.
The uncommon agreement was reached as Congress must increase the national debt ceiling once more, which would prevent it from passing a 1,100-page package outlining Trump’s top demands for border security and tax cuts.
The US has a debt of around $37 trillion, and each time Congress sets a borrowing cap, lawmakers have to make the difficult decision to raise it or risk not being able to pay their payments.
According to Treasury Secretary Scott Bessent, the nation will hit the cap in August. The House-passed package of Trump’s priorities contained a clause raising the cap. Sen. Rand Paul, a Republican from Kentucky, who is against the House bill and has asked for a separate vote on the debt limit, was the target of the two-term Republican president’s ire this week.
Since Congress has consistently voted to raise the debt limit, it is primarily a procedural matter. However, because approval helps to provide the impression that spending is unchecked, the vote every few years turns into a weapon against members of the ruling party.
The nonpartisan Congressional Research Service claims that in order to modernize federal financing, Congress set a debt ceiling in 1939. However, credit-rating companies lowered their ratings for the federal government due to political disagreements on the amount of debt and the challenges of expanding the ceiling.
Another instance of odd bedfellows in American politics is the argument. Trump mockingly referred to Warren as “Pocahontas” since she had previously claimed Native American ancestry.
But Warren posted on social media May 30 that she agreed with Trump that “the debt limit should be scrapped to prevent an economic catastrophe.”
Trump endorsed the proposal in a social media post June 4 and said he was “very pleased to announce” that he agreed with her.
“The Debt Limit should be entirely scrapped to prevent an Economic catastrophe,”
Trump said.
“It is too devastating to be put in the hands of political people that may want to use it despite the horrendous effect it could have on our Country and, indirectly, even the World.”
Why does Trump support abolishing the debt cap alongside Warren?
Both President Trump and Senator Elizabeth Warren are in favor of lifting the U.S. debt ceiling because they believe it is a risky political instrument that could lead to an economic meltdown. Trump has made it clear that, despite the terrible impact it could have on our nation and, indirectly, even the world, the debt ceiling is “too devastating to be put in the hands of political people that may want to use it.”
He shares Warren’s long-held belief that the debt ceiling should be lifted in order to prevent recurring congressional impasses that jeopardize the country’s financial health.
Trump emphasized that by subjecting the government’s capacity to fulfill its legitimate financial commitments to recurring political disputes, the debt ceiling adds needless risk.
