Ep. 257: Joe Lavorgna on Trump Supercharging US Growth
Feb 28, 2025
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Joe Lavorgna, a prominent Wall Street economist and former Chief Economist in the Trump administration, shares his insights on economic strategies from inside the White House. He discusses how Trump's policies on tariffs and immigration aimed to supercharge growth. Lavorgna also reflects on the challenges faced by the Federal Reserve post-COVID and the contrasting economic conditions in China and Japan. His career advice emphasizes the importance of intellectual curiosity and the impact of classic investment literature in navigating finance.
Joe Lavorgna highlights Trump's evolved approach to governance, showcasing a deeper understanding and strategic capability compared to his previous term.
Livornia argues that tariffs can be beneficial for reindustrialization and stress the need for managing inflation through increased production capacity.
Deep dives
Joe Livornia's Career Journey
Joe Livornia shares his academic background and early influences that led him to choose a career in economics. Initially interested in academia, he shifted towards a more practical financial career as he found graduate school focused heavily on mathematics. His journey included working at the New York Fed and eventually finding his way onto Wall Street by engaging with various opportunities. Livornia's diversified career includes roles at Deutsche Bank and serving as chief economist during the Trump administration, illustrating the range of experiences that shaped his economic perspectives.
Insights from Working in the Trump Administration
Livornia describes his experience in the Trump administration as a mix of chaos and opportunity, highlighting the importance of having diverse viewpoints in policymaking. He acknowledges the criticism surrounding the administration but notes that it was often misrepresented in the media. Livornia emphasizes that President Trump was open to good ideas, and decision-making felt very direct and entrepreneurial compared to previous administrations. This approach allowed for quick implementation of policies, even amidst the tumultuous political climate.
Characterizing Trump 2.0
In discussing the current political climate, Livornia describes Trump 2.0 as more informed and strategic than before, with a greater understanding of governance and policy implementation. He emphasizes the president's enhanced knowledge in areas like foreign policy and his ability to mobilize support within the party, which he believes is much stronger than in his previous term. Livornia points out that Trump's policy goals, including tariffs and economic growth strategies, are approached with a more cohesive vision due to past experiences. This newfound depth and clarity in objectives add a significant layer of seriousness to Trump's current term.
Economic Outlook and Policy Discussion
Livornia presents a constructive economic outlook while addressing potential concerns related to inflation and tariffs. He argues that tariffs, often criticized, can play a significant role in reindustrialization and protecting domestic industries. Additionally, he believes that managing inflation requires increasing production capacity and making strategic fiscal policy changes. Livornia concludes that the administration's ability to balance growth while addressing inflationary pressures will be crucial for future economic stability and development.
Joe Lavorgna is a Managing Director and Chief Economist for SMBC Nikko Securities. He was previously the Chief Economist for the Americas at Natixis. While there, Joe took a one-year leave of absence to serve in the Trump administration, where he was Special Assistant to the President, and Chief Economist of the National Economic Council. Prior to Natixis, Joe spent 20 years with Deutsche Bank Securities in the Global Markets Division, where he was considered one of the leading Wall Street economists. Joe is also a Senior Fellow at the America First Policy Institute, a Washington, D.C.-based think tank. In this podcast, we discuss what it was like working for Trump, why Trump is now more effective, thoughts on tariffs, taxes and immigration, and much more.