On Wednesday, former President Donald Trump advised Republican lawmakers to allow the United States to default on its debts if Democrats do not agree to expense cuts.
“I say to the Republicans out there—congressmen, senators—if they don’t give you massive cuts, you’re going to have to do a default,” said Trump, who is again running for president. “And I don’t believe they’re going to do a default because I think the Democrats will absolutely cave, will absolutely cave because you don’t want to have that happen. But it’s better than what we’re doing right now because we’re spending money like drunken sailors.”
When Kaitlan Collins, a CNN anchor, urged him to elaborate on his remarks, Trump said: “Well, you might as well do it now, because you’ll do it later. Because we have to save this country. Our country is dying. Our country is being destroyed by stupid people, by very stupid people.”
Trump commented during a CNN town hall during which he protected his supporters who staged a violent rebellion at the U.S. Capitol in January 2021 and ridiculed the writer E. Jean Carroll a day after a jury charged him for sexually abusing and defaming her.
Trump seems to be the top contender for the Republican presidential 2024 nomination. He would possibly look to use a default for his political gain were he to challenge Joe Biden in a match next year.
His remarks came weeks before the U.S. is projected to go bankrupt to pay its bills unless Congress addresses the debt limit. Since January, the U.S. government has taken remarkable measures to prevent default.
According to analysts and economists, a default would create confusion in markets and result in millions of job layoffs. Republicans voted to elevate the debt ceiling three times during Trump’s presidency.
Trump’s words motivate his numerous GOP supporters in the House to tightly hold their stance against increasing the debt limit without the associated spending cuts. Biden has said he would not negotiate over increasing the debt limit, even though he is not opposed to discussing methods to lower expenses in a separate context.
Biden and the top four congressional leaders, including Trump supporter House Speaker Kevin McCarthy, R-Calif., will see each other again to talk about the debt ceiling on Friday. Treasury Secretary Janet Yellen has warned that the United States may reach its debt ceiling as early as June 1.
