Special Poll
Donald Trump has warned that the United States could face a “depression” as he criticized a debt ceiling agreement made under former House Speaker Kevin McCarthy. The president-elect took to social media on Sunday to share his disapproval, claiming the deal handed Democrats an advantage and could lead to severe economic consequences.
Trump, who had previously pushed for a provision to raise the debt ceiling in a stopgap spending bill earlier this month, accused Democrats of prioritizing political gain over the nation’s well-being. Writing on Truth Social, he stated, “The extension of the Debt Ceiling by a previous Speaker of the House, a good man and a friend of mine, during the Biden Administration, to June of the Trump Administration, will go down as one of the worst political decisions in years. There was no need for it—NOTHING was gained, and it cost us dearly—a key reason for losing that Speakership.”
Drawing a comparison to the onset of the Great Depression, Trump continued, “This was Biden’s problem to solve, not ours. Now it’s been made ours. I call it ‘1929’ because the Democrats couldn’t care less about the harm their decisions might cause to this country. In fact, they’d rather see a depression if it damages the Republican Party.”
Trump argued that Democrats must be held accountable now, during Biden’s presidency, rather than postponing the debt ceiling debate until his administration begins in June. “The Democrats must be forced to address this critical issue immediately,” he wrote. “They should bear the blame for any potential disaster, not Republicans.”
In a joint statement, Trump and Vice President-elect JD Vance echoed this sentiment, emphasizing the importance of tackling the issue while Biden is still in office. “Raising the debt ceiling isn’t ideal, but it’s better done under Biden. If Democrats won’t cooperate now, why would they in June under our administration? Let’s address it before it becomes our burden,” they said.
Meanwhile, Treasury Secretary Janet Yellen warned Congress about the urgency of the situation in a letter, stating that the Treasury would hit the new debt limit between January 14 and January 23. She urged lawmakers to take swift action to protect the country’s financial credibility.
President Biden, in a December 21 statement, defended the stopgap spending bill as a compromise. He highlighted that it avoided the Republicans’ push for tax cuts for billionaires while ensuring government operations continue.
Looking ahead, Republicans will hold control of Congress starting January 3, but it remains unclear whether they will address the debt ceiling before Trump assumes office on January 20. If the Treasury begins using extraordinary measures in mid-January, it could buy time for several months, but a long-term solution would still require congressional action.