• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock

3

Current price of oil as of June 23, 2026

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock

3

Current price of oil as of June 23, 2026
Finance

Donald Trump Is Making the Republican Party Fall Back in Love With Deficits and Debt

By
Chris Matthews
Chris Matthews
Down Arrow Button Icon
By
Chris Matthews
Chris Matthews
Down Arrow Button Icon
November 11, 2016, 6:04 PM ET
Add Fortune on Google for similar content.

The Republican Party has spent so much time railing against debt and deficits for the past eight years, it’s easy to think that this issue has always been dear to them.

Guess again.

Now that there’s a new Republican president coming into town, the GOP is already forgetting its debt-phobia once again. Donald Trump campaigned on a $1 trillion infrastructure program, an expensive border wall, and massive tax cuts aimed largely at the wealthy. He has no plan to reduce the debt, and told Fortune earlier this year that’s not a priority from him. He’s also argued that economic growth under his watch would be so great as to make the problem irrelevant.

Enter Trump economic advisor Anthony Scaramucci. Scaramucci, a hedge fund manager who is famous for his annual Las Vegas conference, published an op-ed in the Financial Times on Friday arguing that Trump’s promise to spend big on infrastructure makes economic sense during a time when infrastructure is in poor shape and interest rates are so low that borrowed money is essentially free once inflation is taken into account. Because of that, all these investments would have to do, Scaramucci argues, to make the country more wealthy is to increase economic growth even marginally.

Of course, this is what Democrats, and even some Republicans like former Federal Reserve Chair Ben Bernanke, have been saying for years. And most Republicans, particularly leaders of the House of Representatives, greeted these proposals as if they were being presented by the devil himself, demanding instead an immediate balancing of the federal budget. Even Scaramucci has been skeptical of stimulus spending in the past, telling the conservative website Newsmax back in 2012—when President Obama also used low rates as a reason to invest in infrastructure—that government debt was bad. Full stop. According to Scarmucci:

What typically happens is Keynesian stimulus or monetary stimulus is that it works in the short term, it’s like that hit of a drug, if you will, but then you need successively more and more of it. If spending was the solution, then Greece would be the fastest growing government . . . We do know that government spending at some point becomes a parasite on the economy.

When challenged on this contradiction on Twitter, Scaramucci argued

Not all spending is created equal. Right kind (infrastructure) managed by right person (DJT) while borrowing costs are low is smart https://t.co/iP0C3hqPTy

— Anthony Scaramucci (@Scaramucci) November 11, 2016

One could argue that it’s natural for Republicans to only trust Republican presidents to be responsible with government spending. But this mindset will only lead to political gridlock and the complete lack of bipartisanship. Infrastructure spending used to be something that both parties agreed was the proper role of the federal government. And to spend on it back in 2011 or 2012—when rates were low and unemployment high—made complete economic sense. Whether or not a Republican Congress will relearn this fact now that there is a Republican president remains to be seen, but if they do it will be a sad commentary on our ability to negotiate with political rivals in good faith.

And it’s looking like that’s where we are headed.

 

About the Author
By Chris Matthews
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Sarah Youngwood, EVP and CFO at Nasdaq.
C-SuiteFinance
Inside Nasdaq CFO Sarah Youngwood’s AI playbook
By Sheryl EstradaJune 24, 2026
12 minutes ago
Top CD rates today, June 24, 2026: Lock in up to up to 4.40%
Personal FinanceCertificates of Deposit (CDs)
Top CD rates today, June 24, 2026: Lock in up to up to 4.40%
By Glen Luke FlanaganJune 24, 2026
41 minutes ago
Today’s top high-yield savings rates: Up to 5.00% on June 24, 2026
Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 5.00% on June 24, 2026
By Glen Luke FlanaganJune 24, 2026
41 minutes ago
You can ignore Trump’s threats to leave NATO: Pimco says they’re a ‘paper tiger’
EconomyMarkets
You can ignore Trump’s threats to leave NATO: Pimco says they’re a ‘paper tiger’
By Jim EdwardsJune 24, 2026
59 minutes ago
Current refi mortgage rates report for June 24, 2026
Personal FinanceReal Estate
Current refi mortgage rates report for June 24, 2026
By Glen Luke FlanaganJune 24, 2026
4 hours ago
Current ARM mortgage rates report for June 24, 2026
Personal FinanceReal Estate
Current ARM mortgage rates report for June 24, 2026
By Glen Luke FlanaganJune 24, 2026
4 hours ago

Most Popular

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
22 hours ago
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Banking
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
By Jim EdwardsJune 23, 2026
1 day ago
Current price of oil as of June 23, 2026
Personal Finance
Current price of oil as of June 23, 2026
By Joseph HostetlerJune 23, 2026
22 hours ago
Meet the 2 men putting New York's $300 billion pension fund in play for the first time in 20 years
Investing
Meet the 2 men putting New York's $300 billion pension fund in play for the first time in 20 years
By Nick LichtenbergJune 22, 2026
2 days ago
Former U.S. Secret Service agent says bringing your authentic self to work stifles teamwork: 'You don’t get high performers, you get sloppiness'
Success
Former U.S. Secret Service agent says bringing your authentic self to work stifles teamwork: 'You don’t get high performers, you get sloppiness'
By Sydney LakeJune 21, 2026
3 days ago
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
Real Estate
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
By Sydney LakeJune 22, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.