Federal debt has climbed in recent years, and it is on a trajectory to rise further regardless of who is in the White House come January, as the economic downturn and the rising cost of Social Security and Medicare pressure government finances.
Both President Trump and former Vice President Joe Biden have called for more spending to combat the economic fallout from the coronavirus pandemic, arguing that short-term deficit increases are necessary to help stimulate the recession-stricken economy and help businesses and households.
Mr. Trump is also pushing for more tax cuts, which would further increase the deficit. Mr. Biden has called for large spending initiatives—on infrastructure, education and health care—that he says could boost long-term economic growth. The Democratic presidential nominee has said he would pay for those plans with tax increases on the wealthy, but it isn’t clear that would raise enough to offset all of the higher spending.
Each man has also promised to protect Social Security and Medicare benefits, which are projected to be the biggest drivers of deficit increases over the next 10 years as the population ages and health-care costs rise.
The upshot: Both candidates’ fiscal plans would add substantially to the total U.S. debt, according to estimates from the Committee for a Responsible Federal Budget. Executing those plans, however, would depend on cooperation from lawmakers, and it would become much harder if Congress remains divided.
