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

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.

—

📰 Be notified early when Turpentine's drops new publication: https://www.turpentine.co/exclusiveaccess

🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse

—

SPONSOR: NETSUITE | SHOPIFY | INCOGNI | SQUAD Over 41,000 businesses trust NetSuite by Oracle, the #1 cloud ERP, to future-proof their operations. Whether you're earning millions or hundreds of millions, NetSuite empowers you to tackle challenges and seize opportunities. Download the free CFO's guide to AI and machine learning at https://netsuite.com/zen.

Shopify is the world's leading e-commerce platform, offering a market-leading checkout system Shoppay and exclusive AI apps. Nobody does selling better than Shopify. Get a $1 per month trial at https://shopify.com/momentofzen.

Take your personal data back with Incogni! Use code MOMENT at the link below and get 60% off an annual plan: https://incogni.com/moment

Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.

--

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

—

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