Matt Yglesias, a prominent writer known for his insights on economics and politics, joins Noah Smith for a riveting discussion. They explore the transformative impact of electric technology on America’s future, from the evolution of batteries to the role of the Inflation Reduction Act. They analyze America's manufacturing challenges and contrast the U.S. and China's approaches to electric vehicles. Additionally, they dive into shifting demographics and the implications for national identity, combining personal anecdotes with reflections on political dynamics and policy challenges.
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insights INSIGHT
Electrification Transforms Energy Use
The rise of electric motors and lithium-ion batteries revolutionized energy use following steam and combustion engines.
This shift enables more efficient, cleaner, and more controllable mechanical power systems replacing traditional combustion.
insights INSIGHT
IRA's Climate Framing Pitfall
The Inflation Reduction Act (IRA) successfully spurred private investment in electric vehicle and battery production.
Framing it primarily as climate policy caused Republican backlash, threatening its bipartisan sustainability.
insights INSIGHT
China's Strategic EV Investment
China strategically invests heavily in electric technology, understanding its global economic importance.
This state support accelerates Chinese EV success, challenging Tesla and Western dominance in the sector.
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In 'One Billion Americans: The Case for Thinking Bigger', Matthew Yglesias makes a compelling case for why the United States needs to significantly increase its population to remain a global leader. He argues that supporting parents and children, welcoming immigrants, and implementing policies such as more housing, better transportation, improved education, revitalized welfare, and climate change mitigation are crucial for national prosperity. Drawing on examples and solutions from around the world, Yglesias presents a radical but well-reasoned challenge to traditional thinking on population growth and national greatness.
Abundance
The Future Is Better Than You Think
Peter H. Diamandis
Steven Kotler
In this book, Peter H. Diamandis and Steven Kotler present a contrarian view that the future is brighter than commonly perceived. They document how exponential technologies, DIY innovators, technophilanthropists, and the rising billion (the world's poor empowered by modern communication technology) are conspiring to solve global problems such as access to clean water, food, energy, healthcare, education, and freedom. The authors provide examples and strategic roadmaps for governments, industries, and entrepreneurs to address these challenges, offering a optimistic outlook on the potential for technological innovation to improve human living standards[2][4][5].
Original Sin
Henri Blochet
Evicted
Matthew Desmond
Enrique Maldonado Roldn
In 'Evicted: Poverty and Profit in the American City,' Matthew Desmond provides a detailed and compassionate look at the lives of eight families in Milwaukee who are struggling to maintain stable housing. The book explores the intersection of poverty, housing, and profit in the United States, highlighting the systemic issues that contribute to eviction and its consequences on families and communities.
This week, we're republishing a conversation Noah Smith and Matt Yglesias hosted live on Substack this past Monday. They revisit a wide-ranging conversation on the transformative role of electric motors, batteries, and industrial policy in a politically polarized era, touching on the history of energy, global economic competition, AI regulation, the Inflation Reduction Act, Democratic strategy, and the need to redefine America’s identity amid demographic shifts.
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SEND US YOUR Q's FOR NOAH TO ANSWER ON AIR: Econ102@Turpentine.co
America's Strategic Blindness: The US had momentum with the Inflation Reduction Act (IRA), which Noah calls "great industrial policy" that was working. However, because it was framed primarily as climate policy rather than technological/economic competition, Republicans killed it for culture war reasons, failing to understand its strategic importance.
The Climate Framing Problem: Matt was prescient in warning that framing industrial policy purely through climate would create Republican backlash. Noah admits Matt was right - while climate messaging helped pass the IRA initially, it made the policies vulnerable to being seen as "just some climate thing" rather than crucial economic policy.
The Obama Era Split: They trace how the 2000s gave their generation the "peace and love" progressive agenda (gay marriage, ending Iraq War), while the 2010s brought the "angry leftist" phase (riots, racial grievance politics) - unlike boomers who got both simultaneously.
Missing the Bush Playbook: During Bush's cascading failures (Iraq, Katrina, financial crisis), Democrats effectively built a broad coalition and defined clear opposition. Today, despite Trump's obvious failures (tariffs, debt, vaccine skepticism), Democrats aren't capitalizing similarly.
Narrow Target Strategy: Like successful campaigns in Australia, Democrats need to edit down their message to core critiques of Republican governance rather than trying to advance every progressive priority simultaneously.
Big Tent Revival: The party succeeded in 2006-2008 by recruiting diverse candidates and standing behind pro-gun, even some pro-life Democrats to clarify what the core message was versus peripheral issues.
"Econ 102" with Noah Smith and Erik Torenberg 
