The National Debt Crisis: Why It’s Serious and How Trump’s Economic Policies May Offer Relief
WASHINGTON, D.C. (STL.News) The United States faces a staggering and escalating problem—its national debt, which recently surpassed $34 trillion. As this figure grows, economists, policymakers, and taxpayers express increasing concern about the country’s financial future. While national debt has been a long-standing issue, its rapid rise in recent years has elevated it to a top-tier policy challenge.
Amid this financial crisis, many are revisiting the economic strategies former President Donald J. Trump employed during his administration, assessing whether his fiscal approach could offer solutions in the current climate. Though Trump’s presidency was often associated with tax cuts and spending increases, a closer analysis reveals key policies that, if implemented or refined, might help the U.S. reduce its debt burden over time.
Understanding the National Debt
The national debt is the total amount of money the federal government owes to creditors. It comprises two parts: public debt, which is held by outside investors, including foreign governments and domestic institutions, and intragovernmental holdings, which are funds the government owes to itself, such as Social Security trust funds.
As of early 2025, the U.S. debt-to-GDP ratio has climbed to over 120%, a level not seen since World War II. This means the nation owes more money than it produces in a year. Economists typically see such a ratio as a warning sign, indicating that the government’s borrowing is unsustainable and may eventually crowd out private investment, weaken the U.S. dollar, and drive up interest rates.
The Cost of Doing Nothing
The Congressional Budget Office (CBO) and other independent agencies have issued dire projections. Without significant reforms, interest payments alone on the national debt could reach $1.6 trillion annually by 2034. These payments do not reduce the debt; they only cover the cost of borrowing. As interest rates rise and more money is spent on debt service, less funding is available for essential programs like education, infrastructure, and defense.
If left unaddressed, the debt could reduce confidence in U.S. financial stability. Foreign investors might demand higher returns for purchasing U.S. Treasury bonds, increasing the cost of borrowing further. In the worst-case scenario, the U.S. could face a financial crisis triggered by lost confidence in its ability to repay its obligations.
Trump’s Economic Legacy: Could It Offer a Path Forward?
While Donald Trump’s administration did not reduce the national debt—indeed, the debt grew by nearly $7.8 trillion during his term—many of his policies focused on economic growth, tax reform, and regulatory rollback, which supporters argue could create a framework for future debt reduction.
1. Pro-Growth Tax Reform
The 2017 Tax Cuts and Jobs Act (TCJA) was a cornerstone of Trump’s economic policy. It lowered corporate tax rates from 35% to 21%, simplified the tax code, and offered temporary tax cuts for individuals. Critics noted that it contributed to short-term deficit increases, but proponents argued that it incentivized domestic investment, job creation, and long-term growth.
According to the U.S. Treasury and the Council of Economic Advisers during Trump’s term, the tax cuts spurred business investment and brought back jobs that had moved overseas. If sustained and paired with spending discipline, such pro-growth policies could increase tax revenues without raising rates, helping reduce deficits over time.
2. Deregulation to Stimulate the Economy
The Trump administration aggressively pursued deregulation, eliminating burdensome rules across multiple industries, including energy, manufacturing, and banking. The White House claimed that these rollbacks saved businesses over $50 billion in compliance costs.
These efforts aimed to foster a more business-friendly environment, increase productivity, expand GDP, and ultimately raise government revenues—all of which are essential for addressing long-term debt concerns.
3. Trade Realignment
Trump’s trade policies, especially the renegotiation of NAFTA into the United States-Mexico-Canada Agreement (USMCA), sought to level the playing field for American manufacturers and farmers. While trade tensions with China raised short-term uncertainty, supporters argue that confronting unfair trade practices could protect U.S. jobs and reduce the trade deficit.
Reducing the trade deficit can support domestic industries and bolster tax revenue, which indirectly contributes to debt reduction. More importantly, fostering self-reliance in strategic sectors—such as semiconductors, pharmaceuticals, and energy—can reduce federal spending on foreign aid and emergency sourcing.
What Needs to Happen Now
Many economic experts agree that there is no silver bullet for solving the national debt crisis. Any viable solution will require a combination of revenue increases, spending reductions, and sustained economic growth. Trump’s supporters argue that returning to his economic playbook—focused on growth, deregulation, and trade reform—could help reverse the current trajectory if paired with strong fiscal discipline.
Looking ahead, reforms to entitlement programs like Social Security and Medicare, which account for a significant portion of federal spending, will likely be unavoidable. During his campaign and presidency, Trump pledged to protect these programs, but some economists suggest that reforms, not cuts, could extend their solvency while reducing long-term debt obligations.
Conclusion: Learning from the Past, Acting for the Future
The national debt is more than a number—it’s a challenge that affects every American. The consequences of unchecked borrowing are fundamental and far-reaching, from higher taxes to reduced government services and inflation risks.
Former President Trump’s approach to stimulating growth through tax reform, deregulation, and trade realignment offers a framework worth considering as the nation grapples with its debt crisis. While not a complete solution, these strategies could contribute to a broader plan for long-term fiscal sustainability.
As the 2024 election results reshape national policy debates, one thing is clear: Serious action is needed. Whether through Trump-era policies or new bipartisan solutions, America must confront its debt problem before it becomes an irreversible crisis.
