FT News Briefing Swamp Notes: Do Republicans still care about debt?
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May 31, 2025 
Edward Luce, U.S. national editor and columnist for the Financial Times, teams up with James Politi, the Washington bureau chief, to dissect the curious shift in Republican fiscal policy. They delve into the implications of former President Trump's tax bill, which threatens to balloon the national debt. The conversation highlights intra-party tensions over spending versus budget cuts and explores the historical evolution of fiscal conservatism, leaving listeners pondering the future of U.S. economic policy while enjoying a light-hearted tale about pet ownership.
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Republican Debt Contradictions
- Republicans campaign on fiscal conservatism but their legislation often increases the debt significantly.
- Tax cuts in the recent bill overshadow spending cuts, leading to higher debt levels.
Danger of Rising Debt to GDP
- U.S. debt rising faster than GDP troubles markets when surpassing 100% of GDP, now at 123%.
- This forces higher borrowing costs, increasing the budget share spent on interest.
Republican Party Debt Factions
- Republican Party divided: hardline conservatives seek deep spending cuts, moderates prefer less cutting and more tax relief.
- Factions clash over the scale of spending reductions and tax policy.