The Trump economy: $40tn debt, 6.7% mortgages and $5 diesel

President Donald Trump has stated that the United States' rapid economic growth can effectively address its mounting $40 trillion debt, despite rising interest rates and increased social spending costs. The federal government's outstanding debt surpassed the $40 trillion mark for the first time, raising concerns about the country's long-term fiscal position.

Trump emphasized that the debt issue has been a problem for decades, but the current period of unprecedented economic expansion under his administration provides a solution. He argued that growth is the key to tackling debt, as it allows the government to manage its financial obligations more effectively. Trump's comments came after arriving at Myrtle Beach International Airport in South Carolina aboard Air Force One to campaign for US Senator Lindsey Graham.

The surge in federal debt has intensified concerns about the sustainability of US public finances, as government revenue has come under pressure from tax cuts, while spending on social safety-net programs and debt interest payments has risen faster than revenue. The federal debt is now more than double the $19.95 trillion recorded when Trump first took office in January 2017, with about one-third of the increase occurring during the two years when the US government expanded borrowing to finance pandemic relief measures.

The remaining increase is attributed to fiscal policies under both administrations and the persistent imbalance between government revenue and spending.