President Trump made a number of claims about the economy in his first response on the Sean Hannity program on Fox News Wednesday.
This is what he said:
“The country – we have taken, is due $ 20 trillion. As you know, over the last eight years, they have borrowed more than it has done in the entire history of our country. So they have taken the loan of more than $10tn, right? And still, we collected $5.2 tn only in the stock market. Maybe crop the whole in terms of the first nine months, in terms of value. So you could say, in a certain sense, we really increase the values. And perhaps, in a certain sense, we are reducing debt.”
Let’s go through one request at a time.
The Treasury conveniently provides you with daily updates on the level of debt, which is the total amount due from the government of the UNITED states.
On January 20, 2017, the date of president’s inauguration, the total public debt was $19.95 tn (Â£15.2 tn).
Then he’s right on this one.
On 20 January 2009, when President Obama was sworn in, the debt was $10.63 tn. The difference is $9.32 tn, which is not more than $10tn, but it is still a lot of debt.
By comparing the figures with the amount of debt borrowed in the entire history of the country is a bit complicated.
We have to believe that means that starting from 1789, because in that moment, the US Treasury a record of the return.
Obviously there are problems with this comparison, because the economy in the late 18th Century is in no way comparable with today.
If we take the outstanding debt on the day of the inauguration in 2009, the total amount of the loan starting from 1789, then President Obama has borrowed more than this, he borrowed $1.31 tn less.
Of course, the net debt is the total amount of the loan. The total amount of the loan will be much more, because some of the debt has been repaid in the course of the last hundred years.
And if it is not completely true in terms of the case that in this period then you will not be certainly true that using a measure that takes into account the growth of the economy.
Bloomberg exchange market capitalization (a measure of the value of all listed companies) puts the current value of $28.39 tn, while the value on the day after the inauguration was $25.55 tn, then, which is an increase of $2.84 tn.
But we know from the President Trump Twitter account that he was in fact the comparison with the level on the day of elections.
The end of the Twitter post by @realDonaldTrump
On 8 November, the market capitalisation was $23.89 tn, so it grew from $4.5 tn.
That is not enough $5.2 tn but it is still a growth of about 19%, which is quite heavy.
This bit is more difficult to interpret, but it seems that he is comparing the US debt to the value of the shares on the stock exchange.
Market capitalisation is not the government’s money – shareholders’ money.
Could lead to more fees are paid at the end, but the two figures that do not belong to the same category.
Remember, the day of the inauguration, the debt was $19.95 tn.
Well, the Treasury’s most recent figure for October 10, was $20.38 tn, so that it went from $430bn.
Debt will actually fall in the first months of the presidency, but he skipped the 8th of September, when the president signed a bill raising the debt ceiling.
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