The episode presents a positive re-evaluation of the Obama administration's policies. It credits Obama with effective crisis management during the Great Recession through the stimulus and Dodd-Frank, successful healthcare reform that bent the cost curve, and a competent foreign policy that ended the Iraq War.
The conversation details how the national debt ballooned to 120% of GDP, primarily from the response to the 2008 crisis. The likely solution is framed as a painful combination of higher inflation, tax hikes, and spending cuts, with the hope that AI-driven growth could provide a much-needed cushion.
The discussion deconstructs the ideology of the 'new right,' arguing it's not just a cult of personality around Trump but a specific worldview. This ideology is seen as driving tangible, negative economic consequences, with Trump's tariffs cited as a prime example of actively harming the U.S. auto industry and fueling inflation.
A key argument is that social media has given a small, highly-engaged, and often extreme minority disproportionate power to influence major institutions. This 'shouting class' is blamed for the rise of 'woke' policies in universities and corporations, as organizations fear online backlash, leading to a divergence from mainstream public opinion.
Keep pulling the thread on Noah Smith.