Inflation, Elon's Competence, and Changes Democrats Need to Make w/ Noah Smith

19 snips

Mar 15, 2025

Joining the conversation is Noah Smith, an economist and blogger known for his sharp insights into economic policy and the Democratic Party's trajectory. He argues for a strategic shift towards fiscal responsibility and away from divisive identity politics. The discussion also highlights Elon's impact on political engagement, the importance of patriotism in messaging, and the need for authenticity in political discourse. Smith emphasizes rethinking current strategies on social issues while ensuring commitment to democratic principles.

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ADVICE

Fiscal Responsibility for Democrats

Democrats should prioritize fiscal responsibility to regain economic credibility.
They should emphasize deficit reduction and responsible monetary policy, like Clinton in the 90s.

INSIGHT

Misplaced Focus in Defending Democracy

Democrats' focus on gerrymandering and voter ID laws as primary threats to democracy is misplaced.
The real threat, election denial, has been largely ignored, hindering their credibility.

ADVICE

Embrace Tech Entrepreneurs

Democrats should embrace tech entrepreneurs and their talents.
Alienating this group is a strategic error, given their potential influence, similar to Elon Musk's impact on the Republicans.

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Erik Torenberg and economist Noah Smith dissect the Democratic Party's path forward. Smith advocates for fiscal responsibility over progressive rhetoric, refocusing democracy concerns away from voter ID laws toward election integrity, and embracing patriotic messaging instead of identity politics.

Their exchange ventures into Elon Musk's influence on Republican effectiveness, the merits of Japanese bureaucratic models, and building a more competitive political landscape where both parties can harness entrepreneurial talent to implement practical governance solutions.

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RELATED LINKS:

How the Democrats can fight back against MAGA

https://www.noahpinion.blog/p/how-the-democrats-can-fight-back

Only fools think Elon is incompetent

https://www.noahpinion.blog/p/only-fools-think-elon-is-incompetent

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X / TWITTER:

@noahpinion

@eriktorenberg

@turpentinemedia

HIGHLIGHTS FROM THE EPISODE

Three Recommendations for Democrats:

Anti-Inflation Strategy: Emphasize fiscally responsible policies, cut deficits, and abandon price controls and MMT rhetoric
Democracy Focus: Focus specifically on election integrity rather than voter ID laws or gerrymandering
Patriotic Messaging: Abandon progressive "America was founded on racism" rhetoric and embrace traditional American values

Tech Leadership Dynamics:

Elon Musk has transformed Republican effectiveness through entrepreneurial approaches
Democrats have alienated tech entrepreneurs through "tech bro" antagonism
Democrats need their own tech-savvy leaders (suggestions included Sam Altman, Marc Benioff, Reid Hoffman)

Biden's Economic Record:

The Inflation Reduction Act was misnamed but had positive industrial policy effects
Biden successfully fought inflation through Fed policy, deficit reduction, and energy production
The administration's effective actions contradicted progressive rhetoric

Project 2025 Critique:

Good intentions but lacks nuanced understanding of government functions
Relies too heavily on right-wing social media ecosystem for information
Would benefit from consulting policy experts at conservative think tanks

Social Media Transformation:

Twitter/X has become narrower and more political under Musk
A more fragmented social media landscape is positive for America
Social platforms naturally polarize along political lines

Alternative Economic Model:

Need for a "third way" beyond neoliberalism
Combine industrial policy, regulatory reforms, and Japanese-style bureaucratic approaches
Emphasize efficient governance over ideological purity

Cultural Observations:

"Situationships" replacing traditional relationships among young people
Free speech principles being abandoned by some Democrats
Increasing education polarization in political alignment