Slate Money – Trump in Davos Edition (January 27, 2018)

Episode Overview

In this special episode of Slate Money, host Felix Salmon is joined by Anna Shymansky, Jordan Weissmann, and live from Davos, Jacob Weisberg, for an on-the-ground analysis of the 2018 World Economic Forum. The conversation explores how President Trump’s presence redefined the tone and focus of Davos, reactions from global elites, the symbolism and substance behind U.S. economic policy, and the broader state of global economic leadership.

Key Discussion Points & Insights

1. Trump's Impact on Davos

• Trump takes center stage:
  Trump was expected to be in direct opposition to the Davos ethos of globalization, but instead dominated discussions and was largely well received by the business elite.
  • “He gave a very conciliatory speech without a lot of substance, but… the story is going to be largely a positive one about his visit.” – Jacob Weisberg (01:09)
• Globalization vs. America First:
  Despite representing the “anti-Davos” agenda, Trump’s messaging at the forum mirrored the usual pitches world leaders make: “America is open for business.”
  • “His message is very much invest in America and it's a great place to do business. We're getting rid of all the regulations…We’ve cut corporate taxes and this sort of open for business. That was the line.” – Jacob Weisberg (02:43)
• Softening attitudes among elites:
  Traditional critics warmed up, with finance leaders and investors cheering the tax cuts and market performance.
  • “The Davos types, the bankers and the hedge fund managers and the CEOs, they love the tax cut, and they are, I think, sincerely convinced that Trump is having a very positive effect on the economy now.” – Jacob Weisberg (04:15)

2. Reception of the U.S. Delegation

• Limited pushback:
  Trump saw little open hostility; the only moment of visible dissent was when he mentioned “fake news” and was booed (05:00).
• World leaders’ strategies:
  Other leaders, like Macron, seem to have figured out how to flatter and manage Trump rather than confront him.
  • “Probably Macron in France has figured out how to play him most effectively, which is, you know, give him a big parade and a military band. Don’t make fun of him to his face and try to manipulate him.” – Jacob Weisberg (05:46)

3. The Essence of Davos

• Shift toward capital and investment:
  Davos, for all its talk of inequality, revealed its truer focus: the interests of global capital.
  • “In the end… it boils down to returns, ROI, and they are getting it.” – Jordan Weissmann (07:27)

4. Steve Mnuchin and the Dollar Policy Debacle

• Mixed messaging:
  Mnuchin gave conflicting impressions on U.S. dollar policy, praising a weak dollar one day and a strong dollar the next, confusing markets and peers.
  • “Steve Mnuchin managed to come out… with two diametrically opposed dollar policies.” – Felix Salmon (09:57)
• Bipartisan protocol undone:
  Jacob outlines the tradition of U.S. Treasury Secretaries repeating, “A strong dollar is in the national interest,” with no real intention of moving markets — a stabilizing ritual Mnuchin ignored.
  • “You should make a formulaic statement that you repeat verbatim every time because you don’t want to be moving markets accidentally…” – Jacob Weisberg (10:39)
• Market hypersensitivity:
  The panel notes markets move mainly because of perceptions, not actual policy action, highlighting Mnuchin’s “novice incompetence.”
  • “It’s just an example… of just the kind of novice incompetence, unsophistication of the Trump people… Shooting your mouth off about the dollar.” – Jacob Weisberg (15:07)
  • “We’ve managed to get like a below replacement treasury secretary. And that was actually one of the surprises of the Trump administration.” – Jordan Weissmann (18:06)
• Lack of gravitas:
  Mnuchin is seen as unimpressive in person at Davos, garnering little respect or interest.

5. Davos as a Multi-Track Event

• Jacob describes multiple “parallel worlds” at Davos: top finance officials, world leaders, NGOs/inequality activists, journalists, and the ever-increasing tech scene (notably blockchain and cryptocurrency this year).
  • “It’s a multiple ring circus now.” – Jacob Weisberg (20:38)

6. The State of Global Leadership

• Leadership vacuum and new players:
  With Merkel weakened, figures like Macron and Trudeau step up. Trudeau’s speech is seen as a (softer) bid for a leadership role in global trade discussions, especially as the U.S. retreats.
  • “When the United States abdicates moral leadership…but also more specific kinds of leadership around trade, around climate change…is it possible for someone to step in? And Merkel steps in very quietly. Macron and Trudeau are interested in being a little more visible…” – Jacob Weisberg (24:24)
• Soft power and the TPP:
  Jordan notes the new trade pact (TPP without the U.S.) is arguably less harsh and more globally considerate without U.S. corporate heavy-handedness.

7. Memorable Moments

• On Trump at Davos:
  • “He really looked and felt like he was in his element almost more than say even Bill Clinton, who has always been the sort of apotheosis of Davos Man.” – Felix Salmon (07:47)
• On privilege of attending:
  • “Why wouldn’t he like it? It’s the ultimate vindication for him.” – Jacob Weisberg (09:26)

Notable Quotes & Timestamps

• “Davos probably is a kind of civilizing influence on Donald Trump.” – Jacob Weisberg (01:09)
• “Have they softened their opposition to him now?” – Felix Salmon (04:15)
• “The only headline that was going to come out of Davos this year was about whatever Trump said.” – Jacob Weisberg (01:09)
• “He goes on his own terms and he experiences this tremendous bootlicking sycophancy from, from everyone. Why wouldn't he like it?” – Jacob Weisberg (09:26)
• “We’ve managed to get like a below replacement treasury secretary.” – Jordan Weissmann (18:06)
• “It’s just an example…of just the kind of novice incompetence, unsophistication of the Trump people…” – Jacob Weisberg (15:07)
• "It’s a multiple ring circus now." – Jacob Weisberg (20:38)

Key Segment Timestamps

• Trump’s arrival and speech: 00:40–03:45
• Davos elite reaction to Trump: 03:45–06:21
• Davos’ real focus and Trump’s appeal: 06:21–08:53
• Mnuchin dollar policy drama: 09:48–16:50
• Davos as a multi-track event: 19:43–21:59
• Global leadership shifts: 23:56–27:31

Numbers Round (27:41–32:54)

• Jacob Weisberg:
  Jobs added in 2017: 2.05 million
  “It's the lowest annual job creation number of the past seven years…” (27:41)
• Jordan Weissmann:
  18 karat (gold toilet offered by the Guggenheim to the Trump White House as a prank, embodying “America”) (28:37)
• Anna Shymansky:
  12 years (Brazil's Lula loses appeal, likely out of the election, Brazil's political future tenuous) (30:10)
• Felix Salmon:
  $1.581 trillion (world’s bottom 50% net wealth as newly calculated by Credit Suisse, an unexpectedly big upward revision) (31:28)

Tone and Takeaway

The episode is sharp, irreverent, and skeptical—Slate Money’s signature. The hosts deftly analyze the symbolism of Davos as a mirror of global capital, the paradox of Trump’s warming reception, and the theater and realpolitik at the heart of economic forums. They blend on-the-ground observations with broader commentary about the power dynamics at play, both in economic policymaking and global leadership, leaving listeners with a richer, more nuanced understanding of how “Davos Man” and Trump have become unlikely bedfellows.

For listeners: Want the inside scoop on how Davos really works, how Trump was received, and why markets freak out at the slightest policy misstep? This episode has you covered—with humor and bite.