Donald Trump’s National Debt Strategy Could Lead To Economic Collapse
In the current election cycle, Donald Trump has not held back his thoughts or views on all sorts of topics, attacking all types of people and practices with little remorse. Trump’s willingness to be outspoken and his unique experience in the business world have truly been a hallmark of his campaign. These candid remarks for a politician have created a strong movement for Trump, who many believe is the perfect anti-establishment candidate on the Republican side. On Thursday, Trump continued this trend, articulating how he would work to fix the problem of America’s rising national debt in a shocking way.
In an interview with CNBC, Trump discussed his views regarding the national debt, saying, “I would borrow, knowing that if the economy crashed, you could make a deal.”
These comments immediately demonstrate that his comfort lies in business, and Trump has not grasped the nuances of the United States’ economy and its impact on the entire world.
Trump has received immediate backlash with regard to his comments. CNBC has since described the pitfall of Trump’s comments, which revolves around how he has failed to understand the difference between owning a business and running the government of the United States.
“With his statement, Trump not only revealed a dangerous ignorance about the operation of the national monetary system and the global economic order, but also offered a brilliant case study in the profound risks of attempting to apply the logic of a private business enterprise to the task of running the United States of America.”
With his comments, it is clear that one of Trump’s perceived strengths may actually become a weakness in the White House. His strong, successful business tactics are the foundation for how he would attempt to lower the national debt and strengthen the economy overall. However, he has assumed that applying these same tactics in a totally different position would work as well.
Lindsey Graham won't support Donald Trump or attend Republican convention https://t.co/hqCtsVl0KU
— TIME (@TIME) May 6, 2016
CNBC further elaborated on why Trump’s business-oriented tactics would not work as president of the United States.
“Every assessment of risk in the financial system is based on the idea that the least risky thing is lending money to the federal government. If that turns out to be much riskier than previously thought, then everything else becomes much riskier too. Business investment will collapse, state and local finances will be crushed, and shockwaves will emanate to a whole range of foreign countries that borrow dollars.”
RNC chair says Donald Trump's Cinco de Mayo tweet shows that "he's trying." https://t.co/k99doIPAbe pic.twitter.com/cEKgvel8em
— ABC News (@ABC) May 6, 2016
However, despite Trump’s inability to understand the differences in the nuances of attaining success in a business and running the United States of America, his supporters list his private sector experience as one of his most admired assets. According to a Gallup poll taken in February, a whopping 16 percent of people believed that Trump’s experience as a businessman was one of their top reasons for their support. His business savvy came in as the second-highest quality, behind only his outsider status.
Ultimately, Trump will continue to run on the name recognition he has built in recent years, and this success has already catapulted him to becoming the presumptive Republican Party nominee. Additionally, most voters will continue to equate Trump’s unparalleled ability in the private sector with his ability to create a flourishing economy in America. However, Trump’s comments on Thursday create a clear concern that his tactics could instead lead to a devastating collapse of the economy if he becomes president of the United States.
[Photo by Mark Lyons/Getty Images]
