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

Trendingnow

1

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO

1

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
FinanceTerm Sheet

Wall Street to lawmakers: Here’s how to fix the deficit

By
Tory Newmyer
Tory Newmyer
Down Arrow Button Icon
By
Tory Newmyer
Tory Newmyer
Down Arrow Button Icon
March 5, 2012, 5:23 PM ET
Add Fortune on Google for similar content.

Wall Street investors have a novel suggestion for Beltway policymakers squabbling over deficit reduction: Compromise.

A clear majority of analysts and portfolio managers in a new poll say Washington should get behind a package that mixes tax hikes with spending cuts in order to stem the tide of red ink.

Investors are in even stronger agreement about the need to act. Seven in ten say such a deal would improve the short-term outlook for the U.S., and nine in ten see it goosing both the long-term outlook and global confidence in our economy.

The survey — conducted by the global advisory firm FTI Consulting and released exclusively to Fortune — reveals an investor class at odds with a Republican party that has come to view any tax increases as anathema.

“They tend to be as a population more fiscally conservative than the general public, but they’re not as fiscally conservative as the most conservative elements of the Republican party,” said Brent McGoldrick, who coordinated the poll. “You see the pragmatism of investors coming through here.”

In fact, on this issue at least, the 56% who favor a mixed approach are largely aligned with President Obama. Last spring, he embraced the goals of his deficit commission, which laid out a path to cutting $4 trillion over ten years by cutting three dollars of spending for every dollar in new tax revenue raised. And he tried to negotiate a breakthrough deal over the summer, but talks with House Speaker John Boehner (R-Ohio) fell apart over the tax piece.

Broader popular opinion has shifted since, in line with investors’ views. The public now gives the President a 9-point edge over Congressional Republicans on the issue, after dividing on it last spring.

MORE: Just in time for Obama – the economy is looking up

Progress toward a so-called grand bargain has stalled since the Congressional super committee failed in the fall to broker an agreement. And with Washington now on election-year footing, there’s not much hope for action in the coming months. Still, small, bipartisan groups in both chambers are huddling to put proposals into legislative language so those frameworks will be ready to move as soon as their colleagues summon the political will to tackle the issue again.

In the meantime, the FTI poll shows investors are deeply skeptical of any new stimulus measures if they’d mean more government spending and higher deficits. Instead, four in five say tepid economic growth owes directly to low confidence that policymakers will get serious about our fiscal challenges, so deficit reduction is even more important than stimulus to promote the recovery now.

Respondents, ranking the importance of deficit reduction to their portfolio companies, placed it fourth — behind industry regulation, corporate taxation, and healthcare, but ahead of energy, labor policy and trade policy.

The poll surveyed 260 American investors from 228 firms managing $2.6 trillion in total equity assets. It was conducted online from December 9-19, 2011.

About the Author
By Tory Newmyer
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

a
Commentary250 Years of Innovation
Atomic Industries CEO: America spent 60 years retreating from manufacturing. The next 100 are about building it back
By Aaron SlodovJune 29, 2026
2 hours ago
Today’s top high-yield savings rates: Up to 5.00% on June 29, 2026
Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 5.00% on June 29, 2026
By Glen Luke FlanaganJune 29, 2026
2 hours ago
Top CD rates today, June 29, 2026: Lock in up to up to 4.40%
Personal FinanceBanks
Top CD rates today, June 29, 2026: Lock in up to up to 4.40%
By Glen Luke FlanaganJune 29, 2026
2 hours ago
Photo: Kevin Warsh
EconomyMarkets
President Trump will not get what he wants from Kevin Warsh, a source tells us, as inflation will force the Fed upwards
By Jim EdwardsJune 29, 2026
2 hours ago
lol
Real EstateHousing
Harvard’s housing report has a darker message than affordability—the middle-class home was always a historical accident
By Nick LichtenbergJune 29, 2026
5 hours ago
Mortgage rates today, June 29, 2026
Personal Financemortgages
Mortgage rates today, June 29, 2026
By Glen Luke FlanaganJune 29, 2026
5 hours ago

Most Popular

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
2 days ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
4 days ago
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
Success
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
By Orianna Rosa RoyleJune 28, 2026
1 day ago
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
Success
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
By Preston ForeJune 28, 2026
1 day ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
1 day ago
Iran is forcing the U.S. into an escalation trap as a 'shadow war' over the Strait of Hormuz heats up that could kill the tenuous ceasefire
Politics
Iran is forcing the U.S. into an escalation trap as a 'shadow war' over the Strait of Hormuz heats up that could kill the tenuous ceasefire
By Jason MaJune 28, 2026
18 hours 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.