Was the economy better under Trump? | Debate: Ben Shapiro vs Destiny - Lex Fridman Podcast

Summary

The transcript discusses the legislative accomplishments and fiscal policies of US Presidents Biden and Trump, highlighting the challenges of passing major legislation in a divided Senate and the philosophical differences in government spending and taxation. It touches on infrastructure bills, tax cuts, and the impact of COVID-19 stimulus spending on inflation. The conversation also delves into the role of government in economic recessions and the debate over deficit spending during different economic climates.

Takeaways

• 😐 Biden has managed to pass legislation such as the infrastructure bill, which Trump promised but couldn't achieve during his presidency.
• 🤔 There's a philosophical difference in government spending; some view tax cuts as government spending, while others see it as allowing individuals to keep their own money.
• 🏛️ Despite controlling both houses and the Supreme Court, Trump's administration didn't pass major legislation, which some attribute to the Republican base's resistance to increased spending.
• 💼 The U.S. has a progressive tax system, and to fund a European-style welfare state, middle-class taxes would need to be significantly higher.
• 🔍 The top 20% of Americans pay all net taxes after state benefits, indicating a high level of income inequality in tax contributions.
• 🤝 The Republican Party is divided, which impacts the legislative success of any Republican president, including Trump.
• 📉 There's a challenge in passing legislation that involves cutting government programs, as Americans generally oppose government growth but struggle to agree on specific cuts.
• 🌐 The lack of legislation under Trump is attributed to differing views within the Republican Party about the role of government.
• 💸 The concept of 'spending neutral' legislation is questioned, as government claims of spending neutrality often do not materialize.
• 🌟 The debate over tax cuts and government spending is tied to broader economic discussions, including inflation and the impact of stimulus spending on the economy.

Q & A

What is the main difference between Biden's and Trump's legislative accomplishments mentioned in the transcript?

Biden managed to pass the infrastructure bill within a year, which Trump promised but couldn't achieve during his entire presidency. However, Trump had both houses of Congress and the Supreme Court but didn't pass major legislation.

How does the speaker view the government's role in fiscal responsibility?

The speaker believes that when the government takes money from individuals, it's not being fiscally responsible, but when the government allows individuals to keep their money, it's a positive action. They view tax cuts as the government taking less, not as spending.

What is the speaker's stance on the United States' tax system and its relation to a social welfare state?

The speaker acknowledges that the U.S. has a progressive tax system and that to have a European-style social welfare state, the middle class would need to be heavily taxed. They mention that the top 20% of the American population pays all net taxes after state benefits.

Why does the speaker think there is a lack of legislation passed under Trump?

The speaker suggests that the Republican Party is divided and that Trump, as the head of the party, faced challenges in uniting the party for legislative efforts. They also mention that Republicans generally aim for less government involvement, which could explain the lack of passed legislation.

What does the speaker believe is the fundamental difference between Republican and Democratic views on government tasks?

The speaker believes that Republicans and Democrats have different views on what the government should do. Republicans tend to favor fewer government programs, while Democrats are more inclined to expand government roles, leading to different legislative priorities.

How does the speaker view the concept of 'spending neutral' legislation?

The speaker is skeptical about the government's ability to create truly spending-neutral legislation, suggesting that such claims rarely materialize as intended.

What is the speaker's opinion on the relationship between tax cuts and deficit spending?

The speaker considers continuous tax cuts without corresponding spending reductions as wild overspending and an increase in deficit spending.

How does the speaker explain the inflationary effects of government stimulus spending?

The speaker defines inflation as too much money chasing too few goods and argues that pouring more money into an already inflated economy leads to more inflation.

What is the speaker's view on when it is appropriate to engage in deficit spending?

The speaker believes that deficit spending should occur when economies are heading towards recessions, not when they are doing well, as was the case under Trump's administration.

How does the speaker assess the economic recovery post-COVID-19?

The speaker sees the economic recovery as a V-shaped bounce back after the initial downturn caused by the pandemic. However, they attribute the subsequent slowdown to the effects of the American Recovery plan and not to the natural progression of economic recovery.