Trump’s long history of defaulting on his debts, including in his 6 bankruptcies, didn’t stop voters from putting him in the White House twice. At least Congress was wise enough to stop him from pausing, raising or eliminating the country’s debt ceiling so he could borrow, without limit, to serve his own agenda, including being the only president to tailor foreign policy against bipartisan demand in order to enrich himself.
There are many reasons why no U.S. bank would lend to Trump when he was a real estate developer. He was turned down by 30 lenders, and bonding companies didn’t want the reputational risk of guaranteeing his debt even if he had enough collateral,
Those are just a few examples of Trump reneging on what he owed. From the world’s biggest banks to America’s smallest contractors, Trump has stiffed creditors across America and elsewhere.
He filed five casinos and the Plaza Hotel into bankruptcy under Chapter 11 of the Bankruptcy Code, which allowed him to wipe out their debts while continuing to operate his properties.
At least 60 lawsuits, liens and judgments document people who accused Trump of not paying them for their work. They include dishwashers, waiters, plumbers, bartenders, carpenters and other hourly workers, and small businesses.
Trump schemed to coerce Congress into overborrowing and risking the country’s fiscal and economic stability. On December 15, he asked Congress to give the country the unlimited ability to borrow. He waited until a bipartisan agreement to avoid a government shutdown was final. Then, just two days before the shutdown, he insisted on a provision to raise or entirely eliminate the debt ceiling. Happily, Congress, including Republicans, had the integrity and courage to refuse. Trump countered, “getting rid of the debt ceiling would be the smartest thing Congress could do, and I would support that entirely.”
Of course he would. How else could he borrow enough to cover the exploding deficit that would come from overspending and cutting taxes that don’t generate enough growth to replace the lost revenues? Add to that a barrage of tariffs and massive deportation of immigrants that would create a labor shortage that would boost wage inflation. Overall inflation would skyrocket. It’s doubtful however that it would hurt Donald Trump – he’d have been President long enough to enrich himself by violating the country’s Code of Ethics; and America be damned.
Had Republicans agreed Trump’s request, it would split members of Congress and delays could last long enough to force a government shutdown, and around 800,000 government employees would not be paid until it was over. It would be the latest example of Donald Trump stiffing workers.
Worse, it would supercharge our deficits, the country would be forced to borrow at surging interest rates, and the world would question whether the US would remain steadfast and capable of paying its debt. Indeed, two bond rating agencies lowered the country’s credit rating based on the fear of a shutdown. Standard & Poor’s questioned the “effectiveness, stability, and predictability of American policymaking and its political institutions.” Fitch Ratings cited the high and rising national debt, the lack of a plan to address its major drivers, and the erosion of good governance. I would add the unpredictably and lack of insight of America’s electorate — weaknesses that are glaringly obvious today.
We should take comfort and be relieved that Congressional Republicans recognized the risks of acceding to Trump’s demand, and that they had the courage to deny him in the face of his threat to support primary challengers against dissenters, financed by Elon Musk. Republicans’ next opportunity to save our democracy will be to reject Trump’s bizarre and dangerous cabinet picks.
There remains a looming and unsolved question — why Americans gave Donald Trump the responsibility to run our country and lead the world towards global stability? It’s a question that we must find the answer to and fix it. Otherwise, the world will never trust us to govern and act in its collective interests.
