Slate Money: "Davos is So Back"

Podcast: Slate Money
Air Date: January 24, 2026
Host: Felix Salmon (A), with Elizabeth Spires (B) and Emily Peck (C)
Theme: A roundtable on the resurgence of the World Economic Forum in Davos, the global and domestic business implications, the so-called "affordability crisis," Trump’s influence, and the hot-button topic of AI-driven hiring.

Episode Overview

This episode dives deep into the return to prominence of the World Economic Forum at Davos in 2026. The hosts analyze why Davos suddenly matters again, dissect the affordability crisis (real or myth?), unpack major international political moves, and debate the risks and realities of AI-driven hiring. They bring signature humor and candor throughout a lively, sometimes skeptical, conversation about power, policy, and perception at the top of the global financial pyramid.

Key Discussion Points & Insights

1. Davos’ Return to Relevance

• Opening Perspective:
  Felix muses on Davos’ previous irrelevance and sudden comeback:

  “It was just this increasingly irrelevant Alpine GabFest. And then 2026 happened. And Emily, would you agree with me that this is the most important Davos since 2008, if not ever?” (03:13)

• Board Takeover (Post-Klaus Schwab):
  The ousting of long-time leader Klaus Schwab led to a board-driven revival, with global power players like Larry Fink personally inviting high-profile figures—resulting in a “power nexus” effect.

  • Attendance by major CEOs and world leaders, including first-timers like Elon Musk and Jensen Huang.
  • The Trump factor: “[...] suddenly all these people who are like, that's not important to me. Their friends on the board telling them, come on, come along, you'll go skiing, you'll meet everyone, it'll be great. And they're coming. And so it's become this thing again.” (05:53)

• Global Urgency:
  Davos became urgent as the world order appeared upended, especially with Trump’s erratic stances on tariffs and global alliances.

2. Trump at Davos—Drama and Diplomacy

• Central Figure:
  Trump’s attendance and a much-anticipated speech drew huge crowds and set the conference’s agenda.
  • Notable outcomes: Trump’s walk-back on threatened Greenland tariffs after talks with NATO leaders; Zelensky and Mark Carney’s speeches advocating European unity.
  • Felix:

    “There was that meeting between the leader of NATO and Trump where Trump backs down on his threats to impose tariffs... Even more importantly than that, I think, was this incredibly—I’ve never seen a speech go viral in the way that Mark Carney’s speech went viral.” (06:37)

• Collective Action vs. Noblesse Oblige:
  Hosts contrast this Davos’s self-interested urgency with past “window-dressing” years of high-minded rhetoric.
  • Elizabeth:

    “For so many years, so many talks about climate, about this and that, but that was all coming from a place of noblesse oblige.” (09:06)

  • Felix:

    “But now, now it's all self interest...who gets to be rich and powerful is a little bit more up for debate right now. And sort of all the power balances have been disrupted by the American president. And these guys are—they're afraid, I think.” (09:29)

3. The Affordability Crisis: Substance or Symbol?

• Trump’s Rhetoric vs. Reality:
  Trump’s “affordability crisis” message was lightly addressed at Davos—a domestic rather than international concern.

  • Felix doubts its sincerity:

    “Davos speeches are always international. People never use the Davos speech to prosecute a domestic agenda. No one cares. And the affordability crisis, insofar as it exists, is a domestic issue.” (25:13)

• Housing & Renters:
  Trump is “obsessed with mortgage rates” but “anti-renter,” focusing on homeownership as the American ideal.

  • Felix contrasts approaches:

    “Mam Dani is pro renter. Trump is anti renter...He is pro homeowner.” (26:55)

  • Emily critiques the logic:

    “Any disruption could potentially lower our home values. And no one wants that because like Felix was saying, we're a nation of homeowners. Our wealth is in our homes...his affordability agenda on housing is damned before it even starts.” (27:44)

• Wider Economic Pain Points:
  The hosts agree that Americans are feeling the pinch, especially on food and essentials, but question whether government can truly intervene in pricing.

  • Felix:

    “Increasing wages does not make people happy about it, because what they look at is the prices and how expensive things are rather than, ‘Oh, I can afford this now because I got a pay rise.’ ” (31:47)

  • Elizabeth:

    “I think long term, you have to make wages go up...eventually people will stop being so upset about higher prices.” (32:13)

4. AI in Hiring: Should the Machines Decide?

• A Lawsuit and the Black Box Problem:
  Lawsuits push for more transparency and regulation in AI-driven hiring, echoing requirements in financial lending.
  • Felix:

    “The whole point about the current iteration of AIs...is that you can't pick them apart and see—there's no like, algorithm. It's just a bunch of weird, predictive, random, unpredictable stuff.”

  • Elizabeth:

    “Humans created AI. Humans control AI. And to be like, ‘Oh, we created a monster and we can't control it.’ No, too bad. Figure it out.” (42:01)

• Fairness and Regulation:
  The group generally agrees: If AI hiring can’t be audited for bias, it shouldn’t be allowed.
  • Felix:

    “You cannot use AIs to hire people because you cannot audit them. You cannot be sure that they're not using information they shouldn't be using. I am 100% fine with that.” (43:51)

Notable Quotes & Memorable Moments

• On Davos’s renewed significance:

  “This is the most important Davos that I've ever seen in my time.” – Emily Peck, (03:38)

• Joke about "Klaus Klausted" (post-Schwab era):

  "Klaus Klausted." – Elizabeth Spires, (04:36)

• On how Trump operates in person:

  “He never attacks people to their face. He's very good at attacking people on truth or in press conferences or something. But then he meets with them and exhibit A being Soran Mamdani, you know, and suddenly he's all like smiles and grins.” – Felix Salmon, (13:57)

• On Davos and social causes:

  “For a really long time, the guy who ran it and the people who attended tried to pretend it was something else. They were trying to make the world great or solve climate change or whatever. But now, in the face of the challenges of 2026, it's returned to its central purpose, which is a business meeting.” – Elizabeth Spires, (10:56)

• On affordability:

  “His affordability agenda on housing is damned before it even starts because...in the mind of a lot of NIMBYs, is don't build more houses. They think if you do that, then the value of your home goes down.” – Emily Peck, (28:02)

• On AI hiring:

  “If we're going to replace biased humans, let's not replace them with biased AIs. Let's try and make things better rather than worse.” – Felix Salmon, (45:17)

Timestamps for Major Segments

• [02:52] – Davos: The resurgence and new power structure
• [06:26] – Trump’s impact, viral speeches by Mark Carney & Zelensky, Europe’s unity
• [09:58] – Self-interest replaces noblesse oblige at Davos
• [13:27] – Trump’s demeanor in person vs. online
• [17:32] – “Wokeness” scrubbed from Davos panels; focus shifts to business
• [25:06] – The affordability crisis: Trump’s rhetoric vs. economic reality
• [29:55] – Mortgage rates, home values, and political limits on affordability policy
• [40:29] – The ethics and legality of AI-driven hiring

Numbers Round [47:07]

• Emily: 10 — The number of non-English language films nominated for Best Picture since 2020; highlighting the globalization of the Oscars after intentional Academy reforms.
• Elizabeth: 10,000 — The approximate number of milligrams of caffeine it would take to be lethal; a side conversation about coffee habits and prices.
• Felix: 2 — The number of liters of liquid now allowed in carry-on at Heathrow, symbolizing shifting aviation security measures.

Final Thoughts

This episode frames Davos as newly essential—a unique, concentrated venue where the world’s business and political leaders actually influence events in real time, responding collectively to instability, notably Trump’s unpredictability. It’s a “business meeting” at its core, the panel agrees, after years of feel-good talk. The hosts view “the affordability crisis” as partly political theater, partly painful reality, but doubting Washington’s power to fix it with quick soundbites or headline policy. On tech, they’re united in suspicion of AI hiring, calling for enforceable accountability and transparency or outright prohibition.

Tone & Takeaway:
Informal, skeptical, and witty—a classic Slate Money deep dive into how power, perception, and policy interlock in 2026, with a side of pragmatic realism about money, jobs, and the world's most exclusive alpine gathering.