Remember when Republican presidents at least paid lip service to controlling the deficit? That is so 2004. The new Republican party hotness is spending like a Democrat. Trump has promised massive increases in infrastructure spending coupled with large tax cuts. The result will be a big, fat deficit.
A serious case of fiscal amnesia may soon be sweeping the GOP.
For eight years, Republicans hammered President Barack Obama for exploding the national debt. But now a GOP-led spending spree is coming, with Donald Trump riding to the White House on trillion-dollar promises and a Republican Congress that looks likely to do his bidding. It’s a potential echo of the last time Republicans ran Washington, when then-Vice President Dick Cheney memorably remarked, “Deficits don’t matter.”
Trump campaigned heartily on a spending splurge and nothing he’s said since his shocking election suggests he will reverse course. Republican leaders on Capitol Hill, meanwhile, are papering over divisions with the man who frequently tossed party orthodoxy aside on the trail.
“There is now a real risk that we will see an onslaught of deficit-financed goodies — tax cuts, infrastructure spending, more on defense — all in the name of stimulus, but which in reality will massively balloon the debt,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
It’s ironic too. Deficit spending is financed with debt, much of which comes from foreign investors. Foreign investment means that foreigners have an active role in management of the investment they make. Ultimately, deficit spending leads to globalization, where entities have investments in a variety of countries. In other words, more debt, more globalization.