By Mac Deford
Scott Bessent’s nomination as Treasury Secretary under the second Trump administration has largely escaped scrutiny – perhaps because, unlike some of Trump’s more colorful nominees, Bessent is neither surrounded by scandal nor prone to outlandish statements. Instead, he presents himself as a serious financial professional, quietly championing deregulation, aggressive tax cuts, and protectionist tariffs.
Unfortunately, history shows us that quiet policies can wreak havoc when left unchecked, and the Trump-Bessent economic agenda is more likely to leave the economy wheezing than roaring.
In his defense, Bessent recently invoked Alexander Hamilton in an op-ed he wrote to justify his love of tariffs, claiming that Hamilton’s “favorite tool” would address a wide range of Trump’s policy initiatives, from ending illegal immigration to opening foreign markets to U.S. exports. It’s worth a closer look at Hamilton and other successful Treasury secretaries, something Bessent may have overlooked.
Treasury secretaries like Hamilton, William Gibbs McAdoo, and Henry Morgenthau Jr. teach us that economic leadership requires long-term vision, stability, and balance. Bessent, however, seems to prefer Hamilton’s methods over his principles, and therein lies the problem.
Alexander Hamilton, the nation’s first Treasury Secretary, faced the unenviable task of saving a fledgling economy drowned in war debt and confusion. Hamilton, not being one to sit idle, proposed tariffs as part of a broader strategy to protect specific industries and fund the government.
However, even Hamilton – the visionary that he was – knew that tariffs were like salt: a little improves the dish, but too much will ruin it. Further, the circumstances of the young, isolated American economy bear little resemblance to today’s deeply interconnected global market.
Bessent, on the other hand, proposes tariffs on nearly everything that moves, including a 60% tariff and threats of a 100% tariff on Mexican-made goods, as if economic prosperity is found at the bottom of a trade war. Someone ought to remind Bessent of the Smoot-Hawley Tariff Act of 1930, which achieved what seemed impossible: worsening the Great Depression. Perhaps Bessent thinks that history doesn’t repeat itself – but we’ve all heard it rhymes, and his plan sounds suspiciously familiar.
William Gibbs McAdoo, Treasury Secretary under Woodrow Wilson, understood that stability required balancing the needs of industry with meaningful oversight. He understood that chaos didn’t fix itself, and that the government must act where the private sector falls short.
At a time when the financial system was as reliable as Nancy Mace’s positions – ever flailing in the wind – McAdoo brought order by overseeing the establishment of the Federal Reserve System, ensuring that credit flowed to farmers, small businesses, and rural communities – not just Wall Street’s coffers.
Let’s pause here to acknowledge that McAdoo, like the Wilson administration itself, carried significant flaws. The Wilson administration’s role in advancing segregation in federal offices was inexcusable then as it is now. Yet, on the economic front, McAdoo understood something Trump and Bessent would do well to consider: regulation is not an enemy of prosperity, but its sturdy foundation.
When the financial panic of 1914 arrived, induced by the onset of World War I, McAdoo acted swiftly by temporarily closing the New York Stock Exchange and issuing nearly $15 billion in today’s money to avert disaster. No hemming, hawing, or waiting for market “self-correction” – just action. Imagine what McAdoo would think of Bessent’s calls for sweeping deregulation, which resemble handing the car keys back to the very drivers who crashed the economy in 2008.
Where McAdoo ensured stability through balanced regulation and swift governmental action, Bessent seems eager to tear down the guardrails that have allowed the nation to weather the storms. Rolling back these protections, as Bessent advocates, would recreate the same conditions of instability that McAdoo and his contemporaries worked to solve over a century ago.
Henry Morgenthau Jr., Treasury Secretary under Franklin D. Roosevelt, understood that a strong economy requires bold action in times of crisis and safeguards that endure for future generations. As the nation faced the Great Depression, Morgenthau oversaw programs that stabilized the economy, rebuilt public trust, and provided Americans with protections that still anchor economic security today.
The passage of Social Security remains one of the crowning achievements of FDR’s administration, and we give a big thanks to Morgenthau for it. At a time when the elderly, unemployed, and disabled faced abject poverty, Social Security offered aid that restored dignity to millions of Americans. Nearly a century later, it continues to be one of the most significant bulwarks against economic hardship, ensuring that Americans – whether retirees, the disabled, or surviving family members – have a basic level of financial security.
Morgenthau also oversaw the establishment of the Federal Deposit Insurance Corporation (FDIC), which restored faith in the banking system and ensured that Americans no longer had to stash money in mattresses or worry about bank runs robbing them of their life savings. The FDIC’s guarantee of bank deposits eliminated the fear of bank runs and gave Americans the confidence to put their money back into the economy. Without these reforms, economic recovery would have stalled before it began.
By contrast, Bessent’s support for deficit-driven tax cuts and deregulation threaten to undo these protections. Extending or renewing Trump’s 2017 tax cuts, coupled with further slashing corporate tax rates to 15%, will add trillions to the deficit. Bessent seems determined to test Social Security’s durability by starving it so we can learn these history lessons once again. Deregulation might look good in a boardroom, but history tells us it doesn’t end well for anyone without a yacht.
Scott Bessent’s nomination as Treasury Secretary may not come with the usual fanfare of modern politics, but the economic agenda he supports deserves far more scrutiny. Leaders like Hamilton, McAdoo, and Morgenthau faced crises with bold action, balanced solutions, and a vision for long-term stability.
Hamilton knew when to use tariffs and when to stop; Bessent seems ready to slap a tariff on anything that isn’t nailed down. McAdoo understood that markets needed guardrails; Bessent wants to hand Wall Street the keys and hope for the best. Morgenthau built Social Security to last generations; Bessent risks weakening its very foundation.
Scott Bessent may look to Hamilton for misplaced validation, but his economic agenda belongs on the shelf of failed ideas, not alongside Hamilton’s achievements. Tariffs aren’t a magic wand. Deregulation doesn’t create stability. And tax cuts don’t pay for themselves – no matter how many times someone says it with a straight face.
If we ignore history now, the consequences won’t just be predictable – they’ll be avoidable, and that’s far worse. Here’s to the U.S. Senate asking Bessent the tough questions during his confirmation hearing.
Charleston attorney Mac Deford is a Coast Guard veteran and a graduate of The Citadel. He was a Democratic candidate for South Carolina’s 1st Congressional District in 2024.
