Trump Stares Down Iran & Mamdani’s Plan To Squash Landlords | 5.28.26

Summary

Morning Wire Podcast Summary

Episode Title: Trump Stares Down Iran & Mamdani’s Plan To Squash Landlords
Date: May 28, 2026
Hosts: John Bickley (with Georgia Howe off)
Guests: Ben Domenech, Brecker Stoll, Alison Schrager

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Episode Overview

This episode of Morning Wire tackles three significant topics shaking politics, policy, and markets:

• President Trump’s assertive posture on Iran amid reports of a possible deal.
• Mayor Zoran Mamdani’s controversial new approach to housing in New York City, which could entail property seizures from landlords.
• Tech’s “sticker shock” over the actual costs of deploying AI tools, and what it signals for the future of work.

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1. Trump Stares Down Iran

Segment Start: [02:45]

Top Line Themes

• Trump convened a rare full cabinet meeting to address pressing domestic and international issues, notably Iran.
• The US responded to four Iranian drones near the Strait of Hormuz with defensive strikes.
• The administration aimed to assert control and clarity amid rampant speculation about an imminent Iran deal.

Key Insights & Discussion

• Message of Strength and Control

  • “I think the big takeaway here is that the president wanted to send a message following the media reports over Memorial Day weekend of an impending Iran deal...that he was not going to accept a deal that did not achieve his aim. He says that Iranians are negotiating on fumes...I think that was the key takeaway from this cabinet meeting.”
    — Ben Domenech, [03:28]

• Economic Optimism from the Treasury

  • Treasury Secretary Scott Besant predicted oil prices would decline post-standoff. Domenech points out this is an unusually optimistic view, suggesting the administration is signaling both to markets and political allies to hold firm.
  • “It’s just a level of optimism from the White House that I think doesn’t match up with what a lot of other Republicans and analysts are saying in Washington.”
    — Ben Domenech, [04:39]

• Political Calculations

  • Trump is “settling all family business” within the GOP by backing select primary candidates. His choices this cycle are seen as more strategic.
  • “This is a well-oiled machine when it comes to these campaigns.”
    — John Bickley, [06:03]

• Showmanship & Public Messaging

  • Domenech highlights Trump’s dual image: legacy-focused leader and consummate entertainer. The upcoming massive UFC event staged on the White House lawn is emblematic.
  • “As much as Donald Trump 2.0 is someone who's very serious about his legacy, he also wants to put on a great show for the people.”
    — Ben Domenech, [06:14]

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2. Mamdani’s Plan to ‘Squash’ NYC Landlords

Segment Start: [08:15]

Top Line Themes

• Mayor Zoran Mamdani announced an aggressive city plan to seize residential properties from “bad landlords” who allow chronic neglect and transfer them to nonprofits, land trusts, or tenants.
• The plan leverages the controversial “Third-Party Transfer Program,” empowering the city to take over properties burdened by violations or unpaid taxes.

Key Insights & Discussion

• Mechanics of the Plan

  • “He’s going to take properties from what he calls bad landlords and turn them over to nonprofits, community land trusts, or even the tenants themselves. And how he’s able to do this is through legislation...called the third party transfer program.”
    — Brecker Stoll, [09:04]
  • Strict NYC housing codes mean many landlords are at risk even for minor or difficult-to-avoid violations.

• Perverse Incentives and Underlying Problems

  • “The reason why some of these buildings are in such bad shape is because they cannot maintain a building with the level of rent that’s being paid by the tenant.”
    — Brecker Stoll, [09:34]
  • Example: A tenant in Brooklyn pays only $300/mo for a three-bedroom, but expects high-quality maintenance.

• Government ‘Creating’ Problems to Fix

  • “So the government creates the problem and the government comes to fix the problem.”
    — John Bickley, [10:28]
  • Stoll agrees this characterizes the dynamic under Mamdani’s policies.

• Policy Reversals & Budget Realities

  • Mamdani has had to scale back promises (like free buses and blanket rent freezes) upon realizing fiscal limits.
  • His attempt to redistribute wealth through sweeping new taxes is running into legal and political hurdles.
  • “He wants to run his budget at a deficit because all the services he wants to enact...he doesn’t have the money to do so.”
    — Brecker Stoll, [11:23]

• Fiscal Constraints

  • Although Mamdani claims to have closed a $12B budget gap, he has only done so temporarily with aid from Governor Kathy Hochul. The underlying issues persist.
  • “For New York City, it is mandated by law that they have to have their books balanced.”
    — Brecker Stoll, [11:35]

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3. AI Adoption’s ‘Sticker Shock’ in Tech

Segment Start: [13:07]

Top Line Themes

• Tech giants are grappling with unexpected costs of deploying advanced AI — budgets intended for a year’s worth of AI ran dry in mere months at companies like Uber.
• Microsoft is also cutting back on AI-driven coding tools.

Key Insights & Discussion

• Is it Growing Pains or Something Deeper?

  • “There is this fundamental growing pain, they’re actually having to account for the cost of heavy AI use. Like a lot of new technology, it’s not really so clear it’s showing up in productivity numbers yet; certainly not in profits.”
    — Alison Schrager, [14:01]

• Lag in Productivity Gains

  • Often, it takes years or decades for transformative technologies to impact productivity numbers. For AI, the initial beneficiaries are low-to-average performers whose output improves, while top performers see less impact.
  • “There’s also some evidence that you become more productive from AI and then spend those saved hours, like, goofing off at work.”
    — Alison Schrager, [14:33]

• Early Miscalculations

  • Uber’s experience: aggressively pushed AI usage without fully grasping the associated compute costs — echoing their earlier business model of subsidized pricing.
  • “Initially AI also did seem free. So I think they’re also just sort of learning the ups and downs of that business model.”
    — Alison Schrager, [15:17]

• Job Market Implications

  • While layoffs during downturns might be attributed to AI, the technology may be more likely to augment than replace many roles over time.
  • “When you had technology that made people more productive, it didn’t reduce jobs. In fact, it made employees more valuable.”
    — Alison Schrager, [15:56]

• Futurist Perspective

  • Predicting which new jobs AI will create is almost impossible from today’s vantage point, much like predicting cybersecurity roles in 1910.
  • “If AI works like any other technology, it will create jobs that we can’t even imagine right now.”
    — Alison Schrager, [16:48]

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Notable Quotes & Memorable Moments

• “I think the president wanted to just send the message, I’m in charge here. No one else is doing this. No one else is deciding whether we do it or not.”
  — Ben Domenech, [03:28]
• “This is now so large, it looms over the White House itself. Everyone driving past is rubbernecking and so it’s creating traffic problems.”
  — Ben Domenech on the UFC set, [06:14]
• “You can’t keep up a building in Brooklyn at $300 a month for rent.”
  — Brecker Stoll, [09:34]
• "The government creates the problem and the government comes to fix the problem."
  — John Bickley, [10:28]
• “You become more productive from AI and then spend those saved hours like goofing off at work.”
  — Alison Schrager, [14:33]

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Timestamps for Key Segments

• [02:45] — Trump’s Cabinet Meeting & Iran Showdown
• [08:15] — NYC Mayor Mamdani’s Housing Plan
• [13:07] — AI Costs and Market Realities

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Summary prepared for listeners seeking the essential insights and tone from the May 28, 2026 episode of Morning Wire. All advertising, promotional, and sponsor segments not included.

Transcript

[Ben Domenech]

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[Brecker Stoll]

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[John Bickley]

Amid mounting pressure for an Iran deal and economic relief here at home, the president and his cabinet send a clear message Trump is in control. I think we're doing very well. They are starting to give us the things that they have to give us. And if they do, that's great. And if they won't, then the man on my left is going to finish them off. I'm Daily Wire Executive editor John Bickley. Georgia Howe is off today. It's Thursday, May 28th. This is Morning Walk. Mayor Zoran Mamdani unveils a radical new housing policy for New York centered on seizing private property, buildings that have suffered chronic neglect. We will work to transfer ownership to responsible stewards. And some of tech's biggest names are reeling from sticker shock on AI tools. We talked to an expert on what this means for AI adoption.

[Alison Schrager]

This kind of stuff spend relative to the money it's bringing in, it's hard to justify.

[John Bickley]

Thanks for waking up with MORNING wire. Stay tuned. We have the news you need to know.

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[John Bickley]

full Cabinet Wednesday where he and other officials addressed a wide range of issues here and abroad. The meeting comes amid a series of defensive strikes by the US including last night in response to four Iranian drones threatening ships in the Hormuz Strait. Joining us now with the details from the meeting and what's next on the president's docket is Daily Wire opinion editor Ben Domenech, host of the Big Ben Show. Ben, thanks for coming on.

[Ben Domenech]

Of course. Always great to be with you.

[John Bickley]

So let's start with the top lines from this big cabinet meeting yesterday. As we reported, this kind of session is rare for Trump and it's called in a particularly complicated moment on the foreign policy front in particular. So what were the big takeaways, including on Iran?

[Ben Domenech]

Well, I think the big takeaway here is that the president wanted to send a message following the media reports over Memorial Day weekend of an pending Iran deal, one that was attracting a lot of criticism, particularly from the hawks within his party, not just the Lindsey Grahams and Tom Cotton's of the world, but also people like Ted Cruz, that he was not going to accept a deal that did not achieve his aim. He says that Iranians are negotiating on fumes, which is one of the reasons why. And this is something that a senior administration official told us over the weekend. It's difficult for them to even negotiate given the lag time that happens between when you send something back to the Iranians and when they're coming back to you with a response. Personally, I think that the president wanted to just send the message, I'm in charge here. No one else is doing this. No one else is deciding whether we do it or not. There is, there is not going to be some deal done that I am not content with. I think that was the key takeaway from this cabinet meeting.

[John Bickley]

Yeah. We also heard from Treasury Secretary Scott Besant on oil prices. He actually says prices will end up lower after this standoff with Iran is finally resolved. Is that just political messaging or does the White House really seem that optimistic about where things are heading?

[Ben Domenech]

You know, Bessant is someone who doesn't usually try to work in, in a candy colored universe. He doesn't view the world through rose colored glasses. And because he's saying that, I think that gives this a lot more heft. And so I, I viewed that as not just a message to the markets, but also A message to the politicians on Capitol Hill. Stand with us on this and we'll get through it. Whether that turns out to be true or not, your guess is as good as mine. It's just a level of optimism from the White House that I think doesn't match up with what a lot of other Republicans and analysts are saying in Washington.

[John Bickley]

Right. Some analysts that we've had on this show. In fact, we like to ask you about the political side. This cabinet meeting came at a crucial time, right after a series of primary wins for the President, which is notable. Do you think Trump accomplished what he set out to accomplish here?

[Ben Domenech]

100% when it comes to the primaries. He has been taking names and settling all family business over the course of this election cycle. And that's something that I think sends a message to the base. At the same time, I will say there's, there is a situation here where the President, having decided all of these primaries, is making a bet on all these different candidates. And now that means that if they end up running into a blue tidal wave, there will be people who say the President made the wrong choice. Now, this time around, I will say the President is making much wiser choices when it comes to the primaries of who he's choosing to back.

[John Bickley]

Yeah. As we've seen with Trump 2.0, this is a well oiled machine when it comes to these campaigns. Now, looking forward here, what should we keep an eye out for in D.C.

[Ben Domenech]

well, we've seen Donald Trump, the national security foreign policy president, you know, insistent that Iran won't have a nuclear weapon. We've seen him as a domestic policy president, you know, creating these Trump accounts, doing all these different things. But we also have to remember this is Trump the showman. And what everybody's buzzing about in D right now is the fact that they are building this massive UFC fight set in front of the White House that everybody can see when they're, when Margaret Olan is walking into the, to the, to the White House. This is now so large, it looms over the White House itself. Everyone driving past is, is rubbernecking and so it's creating traffic problems. So look, Trump is looking forward to this. On June 14th, they're going to have this, this fight. And Dana White's been going around promoting it this week. And that's, I think, something that's going to be a reminder. Look, as much as Donald Trump 2.0 is someone who's very serious about his legacy, he also wants to put on a great show for the people.

[John Bickley]

Yeah. And he does that better than anyone. Ben, thanks so much for joining us.

[Ben Domenech]

Great to be with you as always.

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[John Bickley]

[e-mail] through our new citywide campaign, Fix the City, we will focus on the worst landlords in New York City. When necessary, we will take aggressive legal action to remove negligent owners and property managers. And for buildings that have suffered chronic neglect, we will work to transfer ownership to responsible stewards, stewards that include community land trusts, nonprofits, or even the tenants themselves. That was the mayor of America's largest city openly announcing that the government may take buildings away from the people who own them. Daily Wire reporter Brecker Stoll is here to discuss. Hey, Brecke, welcome on.

[Brecker Stoll]

Thank you, John.

[John Bickley]

So you called attention to this online at this particular moment from this announcement. What are we seeing from Mamdani here?

[Brecker Stoll]

So on Tuesday, Mamdani laid out his plan for New York housing. And part of that plan is really interesting because he's going to take properties from what he calls bad landlords and turn them over to nonprofits, Community Land Trust, or even the tenants themselves. And how he's able to do this is through legislation. If the New York City Council passes. It's that is called the third party transfer program, which would allow the city to take properties from those landlords if they've had property taxes pile up, utility bills piled up, or housing code violations. And John, New York housing has very strict violations. So it is easy to rack those up. This basically puts any landlord who has violations up for risk of losing their property. The reason why some of these buildings are in such bad shape is because they cannot maintain a building with the level of rent that's being paid by the tenant. Give you an example, we went to one of his rental ripoff hearings and we talked to tenants in these buildings that they're saying are run so badly. And I talked to one girl, her rent is $300 a month in Brooklyn for a three bedroom apartment. That's her share. And so when she tells me, yes, and so she tells me, you know, the building is in horrible shape and she wants Mom Donnie to mandate that her landlord fix it. You can see it right there. That's not possible. You can't keep up a building in Brooklyn at $300 a month for rent.

[John Bickley]

So the government creates the problem and the government comes to fix the problem.

[Brecker Stoll]

Yes, that's the story of Mamdani right there.

[John Bickley]

Mamdani has pulled back on some of his radical campaign promises. What have we seen so far from him in terms of walking some things back?

[Brecker Stoll]

So he's already walked back his free buses, and that was, you know, one of the core components of his campaign. But he essentially realized he doesn't have the money to pay for these buses. Same thing when he said, we're going to freeze the rent everywhere. It was a blanket statement. It was for all rent stabilized apartments. Your rent would stay at one place and the landlord couldn't raise it. But he's realized that he doesn't have money to do some of his promises. And Mamdani was planning on enacting more taxes to raise revenue for these programs and basically take that capital from New York's, you know, 1% and redistribute it their wealth in forms of services to New Yorkers. He's not able to do that with how strict Kathy Hogle's been.

[John Bickley]

So you mentioned the financial constraints here. There's a $12 billion budget gap for the city, but Mamdani says he zeroed that out somehow. Is that true?

[Brecker Stoll]

So he has. But he's done it in a way where he's gotten money from Governor Kathy Hochul. And so the same problem is gonna happen year after year, because for New York City, it is mandated by law that they have to have their books balanced. And this is because Back in the 1970s, New York City almost went bankrupt. And they went to the president at the time and they said, you know, you gotta bail us out. And he said, no. And so since then, New York has been, you have to balance your budget, which has become an issue for Mamdani because he wants to run his budget at a deficit because all the services he wants to enact, you know, free childcare, free buses, freezing the rent, he doesn't have the money to do so. But whether you like or not, he's one of the most popular Democrat socialists in the country. And this year he seems to have gotten the money to appease a large base of his voters.

[John Bickley]

Was no doubt very effective in messaging to his constituents so far. Breca, thank you so much for coming on.

[Brecker Stoll]

Thank you so much for having me.

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[John Bickley]

Morning Wire Companies have been pushing artificial intelligence as a way to cut costs, but some of the biggest names in tech are now running into a different reality. AI can be extremely expensive. Uber Burn through this year's AI budget in just four months, while Microsoft is cutting back on coding tools. Joining us now to discuss is Alison Schrager, a senior fellow at the Manhattan Institute and a Bloomberg opinion columnist covering financial topics. She's also the author of An Economist Walks Into a Brothel. I want to hear the end of that joke. Alison, great to have you on.

[Alison Schrager]

Thanks for having me.

[John Bickley]

So when you look at companies like Uber and Microsoft pulling back or reassessing at least some of their AI spending, you know, is this a normal growing pain when it comes to new technology, or does this tell us something more fundamental about the economics of AI and the reality of it?

[Alison Schrager]

Well, I think it's a little bit of both. There is this fundamental growing pain they're actually having to account for the cost of, you know, heavy AI use. And like a lot of new technologies, it's not really so clear. It's showing up in productivity numbers yet certainly not in Profits. Now, whether or not long term, that is a sensible strategy. Whether it's worth taking a loss to get your employees more AI oriented, you know, is a question. And it probably comes down to individual companies.

[John Bickley]

Yeah. Why might the costs be showing up so much faster than the savings or revenue generation?

[Alison Schrager]

Well, sometimes it takes a while for productivity numbers to reflect a new technology. It took more than a hundred years for the steam engine to show up in productivity numbers. One thing we are learning about AI in workforce, they're finding that a lot of the sort of more average mediocre employees benefit a lot from it. It them more excellent. But an excellent employee who's probably already driving productivity numbers doesn't get the same boost. There's also some evidence that you become more productive from AI and then spend those saved hours like goofing off at work.

[John Bickley]

Fascinating. Uber has reportedly encouraged employees to maximize AI usage, but then they've discovered that the bills were exploding. You know, is this a case of a specific company adopting technology before it actually fully understood the economics behind it?

[Alison Schrager]

Well, I mean, there is a bit of a learning curve. A tech firm tends to be more hungry to adopt new technology. I mean, that's their ethos. There's an irony here that, you know, Uber became so popular by initially launching their product and not charging people the cost of it. So people got used to using it. And initially AI also did seem free. So I think they're also just sort of learning the ups and downs of that business model.

[John Bickley]

Yeah, for sure. Now there's been a lot of fear that AI is just going to replace a lot of jobs. But is it possible that we, we actually see a trend of layoff and then rehiring down the road when companies realize they actually can't use AI to, you know, replace aspects of the workforce like they thought?

[Alison Schrager]

What's probably going to happen is that you have a recession and you're sort of tightening your belt and that's a good time to say, hey, maybe AI can replace that role. So it will look like a recession oriented job loss, but AI might exacerbate it. I think a lot of these AI doomsayers about jobs tend to be tech people who maybe don't have a lot of work experience outside of tech. They're engineers and so they look at a job and they look at the output that they can observe that maybe took 30% of your time and they think AI could do that. So they kind of dismiss the 70%, all these sort of intangibles that actually make up a Big part of your workday when you've actually had a job in the past, when you had technology that made people more productive, it didn't reduce jobs, in fact, made employees more valuable. Yeah.

[John Bickley]

And on the flip side of this, are there any broad fields you see AI generating far more jobs?

[Alison Schrager]

It's so hard to predict. It's like imagine it's 1910 and you're sitting down with someone and you're telling them in, you know, 115 years, they're only 2% of the population is going to work in agriculture. But there'll be this other job called a cybersecurity expert. Yeah, I mean, first of all, they probably wouldn't get past 2% working in agriculture. If AI works like any other technology, it will create jobs that we can't even imagine right now.

[John Bickley]

Really just a fascinating moment for all of us. We've done a number of segments here on AI because it keeps coming up in ways that we haven't expected already. Alison, thank you so much for joining us.

[Alison Schrager]

Anytime.

[Sponsor/Ad Voice]

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[John Bickley]

Thanks for waking up with us. The reporting that fuels this show is only possible because you tune in every day and because of all of our Daily Wire subscribers. To enjoy the show ad free and join our mission, become a [e-mail] we'll be back this evening with more news. You need to know. You're great at protecting your data, but

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