President-elect Donald Trump has made a surprising call for a premature increase to the debt ceiling, citing the need to “extend out to, perhaps, 2029, the ridiculous Debt Ceiling.” In a Truth Social post, Trump also endorsed abolishing the limit on federal debt altogether, a position long championed by liberals and anathema to old-school conservatives.
Trump’s call for a debt ceiling increase has confounded members of Congress and flipped the government spending debate on its head. The debt ceiling is currently set at over $36 trillion, and Trump’s proposal would allow the government to continue borrowing without any limits.
The idea of abolishing the debt ceiling is not new, and some economists have long argued that it is a relic of the past that should be eliminated. In 2021, JPMorgan CEO Jamie Dimon said that the debt ceiling is a “ticking time bomb” that should be permanently defused, and progressive economist Stephanie Kelton has argued that deficits and debt should not alarm Americans.
However, Trump’s proposal has also been met with skepticism by some lawmakers, who have used the debt ceiling to their advantage in the past. Republican lawmakers have traditionally been wary of increasing the debt ceiling, and Trump’s proposal has not been endorsed by many in the party.
The debate over the debt ceiling is not new, and has been a source of controversy for decades. In the 1990s, it was President Bill Clinton who faced off against House Speaker Newt Gingrich over the debt ceiling, and in the 2010s, it was President Barack Obama who clashed with House Speaker John Boehner. Today, it is President Joe Biden who is facing off against House Speaker Kevin McCarthy over the issue.
The Biden administration has not publicly commented on Trump’s proposal, but some Democrats have expressed support for the idea of abolishing the debt ceiling. In 2023, a group of 17 Democrats led by Sen. Brian Schatz of Hawaii re-introduced a bill to permanently repeal the debt ceiling.
Despite the controversy surrounding the debt ceiling, Trump’s proposal has also been met with some support from economists and experts. In 2023, Cornell law professor Robert Hockett argued that a 1974 law actually nullified the need for the debt limit, and that Biden should have challenged the debt ceiling in court.
Ultimately, the fate of the debt ceiling remains uncertain, and it is unclear whether Trump’s proposal will gain traction in Congress. However, the debate over the issue is likely to continue to be a source of controversy and conflict in the years to come.