Debt ceiling

The US president Trump attacked his parties' leaders on Tweet as they blocked the bill to lift the debt ceiling. Trump and his party have a major political as well as economic ideology conflict, and this conflict focuses on the public budget. Trump comes from a business background, the central government expands its public budgets can benefit many businesses especially the real estate sector could be one of the major benefiters when the government decides to build more infrastructure, therefore Trump is a fan of expansionary government spending; however, the Republican is a fan of the idea of free markets or "small government", its ideology behind its plan to abolish the Obamacare is to leave the health insurance to the market. Though both Trump and the Republican party are in favour of lowering the tax rates, they are seeing the problems from different angles in my opinion. Trump sees the benefits of lower tax rates as a successful businessman, the Republican may also gain some influence from the industries but they are largely supported by the ideology of small government and they want to lower tax rates in order to reduce the government influence. Therefore, when we are seeing Trump and his party hold different opinions on whether or not to raise  the debt ceiling, we should not be surprised.

I do not see whether or not to raise the debt ceiling is a problem, my opinion is the government will always raise its debt ceiling unless the government changes its current monetary policy. As I discussed previously, the government will always want to have an inflation in its economy, when the inflation goes up, the government will borrow more debts and borrowing more debts does not only increase economic growth rates but also increases the inflationary pressure in the economy. The only problem in the decision of raising debt ceiling is its frequency. When such raise happens too frequently, the market and people will doubt the payback ability of the government, this can lead to lower credibility of the government.