Home > Uncategorized > National Debt Would Soar $11.5 Trillion Under Trump

Comments 0 Comments

We may not yet know who will be the next president of the United States, but no matter who ends up in the Oval Office, there’s a good chance their policies will cause an increase in the national debt.

Donald Trump would have a Miracle-Gro-like affect on the debt, increasing it by $11.5 trillion within 10 years, according to a new report that looks at the policies he’s put forth in his campaign. The researchers estimate Hillary Clinton would add $250 billion to the U.S.’s debt over the next decade.

The Committee for a Responsible Federal Budget released a report on Monday called “Promises and Price Tags: A Fiscal Guide to the 2016 Election,” which analyzes policies Trump and Clinton have outlined throughout their campaigns. The report criticizes the presumptive Republican and Democratic nominees for president because they have not laid out proposals for tackling our growing national debt, though the authors wrote “[i]t is encouraging that, in this election, both candidates have put some emphasis on fiscal responsibility.”

That doesn’t cushion the blow of the numbers. For reference: Publicly held debt in the U.S. increased about $7.1 trillion since President Barack Obama took office, according to the Federal Reserve Bank of St. Louis, though a sharp, upward trend in the debt started a year before he was inaugurated. Right now, publicly held debt in the U.S. amounts to 75% of GDP. Clinton’s policies would increase that to 87% by 2026 and Trump’s would push it to 127% in the same time frame, the report says.

“Our estimates are rough, rounded and based on our understanding of the candidates’ policy proposals and details; they do not represent a final analysis,” according to a summary of the report.

The researchers explained the estimates in simple terms: The $250 billion increase in the national debt under Clinton can be attributed to “spending increases that are largely but not entirely paid for by revenue increases.” As for Trump, “significant increases in current law debt are primarily the result of very large reductions in revenue.”

How This Could Affect Your Finances

Right now, this is all theoretical, as a political candidate’s policies are merely platforms on which they run to win an election. Real change to government revenue and spending is a lot more complicated. Still, the proposals give voters an idea of what a leader’s priorities may be when they’re in a position to make policy changes.

It’s hard to predict exactly how the candidates policies and their impact on the national debt will affect consumers’ bank accounts. While keeping track of changes in federal fiscal policy can help a consumer make more informed financial decisions, it’s crucial for individuals to focus on how they can best manage the ups and downs of their personal financial situations, like their debt and credit scores. You can track your financial goals, like improving your credit, by getting two free credit scores on Credit.com. You can also keep an eye on your credit by getting your free annual credit reports from AnnualCreditReport.com.

More Money-Saving Reads:

Image: andykatz

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team