I just love it when journalists bring in former officials from the Obama administration to rebuke the policies of the current administration.
Former Treasury Secretary Jacob (Jack) Lew on the Tax Cut legislation:
“It’s a ticking time bomb in terms of the debt,” Lew said in a Bloomberg Radio interview with Tom Keene and Jonathan Ferro. “You cannot run a fiscal policy by spending trillions of dollars you don’t have at a time that the economy is doing well.”
Having chosen to make tax policy without including Democrats in any of the conversation, now the administration probably can’t rally Republicans in Congress to do the basic business of government, such as making sure the country doesn’t default on debt and children don’t get thrown off health insurance, he said.
According to some estimates, the $1.5 Trillion that may be added to the debt would occur over 10 years. Other estimates have been much lower.
Lew presided over the Treasury from 2013 until the end of Obama’s term. During that time, the debt had increased by $4 trillion, at least a $1 trillion on average PER YEAR.
In January 2017, Lew said the debt limit was dangerous:
“The willingness of Congress, in recent years, to create a real risk of default has helped demonstrate the actual and potential harm that comes from debt limit brinksmanship,” he contended. “An unprecedented default on our obligations could precipitate a financial crisis, wreak havoc on our economy, and, in turn, damage our standing as a nation.”
The Obama administration went through several pitched debt limit battles with congressional Republicans, with the most contentious coming in 2011. That battle, which was resolved with just hours to spare, was dramatic enough to spurred the credit rating agency Standard & Poor’s to issue the first-ever downgrade on the nation’s debt, deciding it was somewhat riskier than the gold standard it once represented.
Let me get this straight: Eliminate the debt ceiling so that we can add more to the debt to pay our bills. And yet, we need to stop adding to the debt?
Who’d have thunk it?
The National Debt only increased $550 billion in Trump’s first year, more than 2/3 less than Obama’s first year, and about half the debt added in Obama’s last year.