Morning Wire Summary: Scott Besant Talks Inflation, Deregulation, and America’s Future | Sunday Extra
Release Date: December 1, 2024
Host: John Bickley with Georgia Howe
Guest: Scott Besant, Wall Street Investment Officer and Economic Adviser to President Elect Donald Trump
1. Introduction and Background
The episode kicks off with Daley Weyer introducing Scott Besant, highlighting his recent nomination by Donald Trump as Treasury Secretary. Scott Besant brings extensive experience from his tenure as Chief Investment Officer at George Soros Money Management Group, positioning him as a seasoned economic adviser poised to handle the complexities of the U.S. economy, including managing taxes, payments, the national debt, and financial regulation.
Notable Quote:
"As Treasury Secretary, Besant will manage taxes and payments, the nearly $30 trillion debt and financial regulation."
— Daley Weyer [00:03]
2. Transition from Soros Group to Advising Trump
Scott Besant discusses his shift from the Soros Money Management Organization to advising Donald Trump, emphasizing his longstanding support for Republican leaders. He underscores his alignment with Trump’s vision of transforming the Republican Party into a bastion for the multiracial working class, entrepreneurs, and patriots.
Notable Quote:
"My real attraction to President Trump is that he's recasting the US and the Republican Party into a multiracial working class party and a party of entrepreneurs and patriots."
— Scott Besant [01:07]
3. Economic Conditions: Trump vs. Biden
Besant contrasts the economic landscapes under the upcoming Trump administration with those under Biden and Harris. He points out the significant GDP budget deficit of 7%, attributing it to Democratic policies that he believes have stifled economic growth. Despite these challenging initial conditions, Besant expresses confidence in the Trump team's ability to implement superior economic programs based on lessons from Trump's first term.
Notable Quote:
"The Democrats have gunned the engines for the past several years... leaving us with a 7% of GDP budget deficit."
— Scott Besant [03:16]
4. Inflation and Economic Outlook
Addressing concerns about inflation, Besant acknowledges that while inflation has cooled over the past year, the Trump administration faces tougher starting conditions. He remains optimistic, citing Trump's superior team and policy framework as key factors that will drive economic recovery and growth.
Notable Quote:
"Trump 1.0 worked for everybody, especially working class people... and I think we're going to have a great force years coming up."
— Scott Besant [01:50]
5. Tax Cuts and Deregulation
A significant portion of the discussion centers on the Trump administration’s focus on tax cuts and deregulation. Besant argues that deregulation acts as a hidden tax burden, increasing costs for consumers and slowing economic growth. By rolling back these regulations, the administration aims to reduce costs, stimulate growth, and ultimately lower inflation.
Notable Quotes:
"Deregulation directly brings down cost... it's a real cost to consumers, to households, and it slows the economy."
— Scott Besant [08:19]
"We are going to reprivatize the economy, restart the private sector, and the working class people are going to do well."
— Scott Besant [06:10]
6. Impact of Tariffs on Consumer Costs
Besant challenges the mainstream narrative regarding tariffs, dismissing claims that they would significantly increase consumer costs. He explains that the U.S. economy's structure, with a large closed service sector and relatively low import percentage, mitigates the potential adverse effects of tariffs. Additionally, he emphasizes that deregulation and efficiency gains will offset any minor price adjustments.
Notable Quote:
"That's absurd. The US is a big closed service economy... tariffs are not going to increase consumer costs by $4,000 a year."
— Scott Besant [10:48]
7. Strengthening the U.S. Dollar
The conversation also delves into maintaining a strong U.S. dollar amidst global economic challenges. Besant highlights Trump's commitment to preserving the dollar as the world’s reserve currency through policies that enhance after-tax returns on capital. He draws parallels to the Reagan era, noting that deregulation and energy sector improvements will attract global capital, thereby strengthening the dollar.
Notable Quote:
"President Trump is very, very bullish for the dollar... as we deregulate, as we have cheaper energy, then more and more capital will flow into the US."
— Scott Besant [12:40]
8. Trump Administration’s Economic Policy Vision
In concluding the discussion, Besant contrasts the Trump administration's pragmatic approach to economic policy with the ideologically driven policies of the Harris-Biden administration. He anticipates executive orders focused on economic efficiency over ideology, targeting the rollback of progressive initiatives like the CHIPS Act. The Trump administration aims to prioritize productivity, private sector growth, and job creation, asserting that these policies will resonate across diverse voter demographics.
Notable Quote:
"The progressive left likes to do social engineering and the Republican Party likes to do civil engineering."
— Scott Besant [14:38]
"President Trump's popularity with Latino voters, with black voters, with young people, it was incredible on Tuesday night."
— Scott Besant [15:39]
Conclusion
Scott Besant offers a comprehensive outlook on the economic strategies anticipated under the Trump administration, emphasizing deregulation, tax cuts, and a focus on revitalizing the private sector. He remains optimistic about mitigating inflation and fostering a robust economic environment that benefits the working class and businesses alike. This episode provides listeners with an in-depth understanding of Besant's vision for America's economic future under Trump 2.0.
For more insights and daily coverage of the latest developments in politics, culture, education, and more, wake up with Morning Wire presented by John Bickley and Georgia Howe.