In 2016, Trump pledged to erase the federal debt. It just hit $40tn

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-03T12:18:08.339Z • Permanent link

Trump's pledge to erase the federal debt in 2016 was met with skepticism from economists and policymakers, but it has now become a grim reality. The federal debt has ballooned to $40 trillion, surpassing the post-World War II peak set in 1980. The debt ceiling, which was increased several times in the intervening years, has become a contentious issue, with lawmakers from both parties struggling to agree on a solution. The debt is now so large that it has become a major concern for investors, with the yield on the 10-year Treasury note reaching a record high of 4.1% in August.

The growth of the federal debt can be attributed to a combination of factors, including tax cuts, increased military spending, and a decline in government revenue. The Tax Cuts and Jobs Act, passed in 2017, reduced corporate tax rates from 35% to 21%, while also limiting state and local tax deductions. The law has led to a significant increase in corporate profits, but it has also reduced government revenue, exacerbating the deficit. The increased military spending, which includes the $700 billion in supplemental funding passed in 2020, has also contributed to the growth of the debt.

The Trump administration's fiscal policy was shaped by a team of economists and advisors, including Treasury Secretary Steven Mnuchin and White House Chief of Staff John Kelly. However, the plan was widely criticized by economists and policymakers, who argued that the tax cuts and increased military spending would lead to higher deficits and a larger national debt. Despite these concerns, the Trump administration pushed forward with its fiscal policy, which has now become a major concern for the country.

The growing federal debt has significant implications for the Data Sources domain, which includes companies that provide data and analytics services to investors, researchers, and policymakers. The increasing volatility in the markets, driven in part by the growing debt, has made it more challenging for companies to provide accurate and reliable data. This has led to a decline in the demand for data and analytics services, which has had a negative impact on companies that rely on these services for revenue.

The growing debt has also led to a decline in investor confidence, which has resulted in a decrease in the demand for data and analytics services. This has had a negative impact on companies that provide data and analytics services to investors, including companies such as S&P Global and FactSet. The decline in demand has led to a decline in revenue for these companies, which has had a negative impact on their stock prices.

The growing federal debt is part of a larger pattern of fiscal policy failures that have plagued the United States for decades. The 2011 debt ceiling crisis, which was sparked by a disagreement between President Barack Obama and Congressional Republicans, highlighted the need for a more comprehensive approach to fiscal policy. The subsequent fiscal policy failures, including the 2018 budget deal and the 2020 COVID-19 stimulus package, have further exacerbated the problem.