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Marketplace All-in-One

On that two-hour convo between Trump and Musk

Marketplace All-in-One

Marketplace

Business, News

4.51.4K Ratings

🗓️ 13 August 2024

⏱️ 8 minutes

🧾️ Download transcript

Summary

Elon Musk made news yesterday during his conversation with former President Donald Trump, which live-streamed on X. In it, Musk advocated for reducing federal government spending and reducing deficits as a way of fighting inflation, and he angled for a role in the administration if Trump wins. Plus, what would it take to see an emergency interest rate cut? Then, A generally strong job market has led to economic improvements for people without higher levels of education.

Transcript

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0:00.0

The Tesla SpaceX-S SpaceX guy applies for a job while interviewing the Republican candidate for president.

0:07.0

I'm David Brancatia. There was a lot of Elon Musk in his conversation last night with Donald Trump live streamed on the platform

0:14.8

formerly known as Twitter. Over two hours Musk, the world's richest man, made the case for

0:19.8

lower government spending to fight inflation and angled for a role in the

0:24.0

administration if Trump wins. Here's Marketplace's Nova Safo. During their

0:28.9

life-streamed conversation Elon Musk said Donald Trump should consider

0:32.3

reducing federal government spending

0:34.4

and reducing deficits as a way of fighting inflation, as often argued by

0:38.6

conservatives. If the government spends far more than it brings in. That increases the money supply

0:44.9

and if the money supply increases faster than the rate of goods and services

0:48.1

that's inflation. Yes and no government spending and borrowing doesn't always

0:52.2

increase the money supply.

0:54.0

Also, other economists have a more nuanced theory of inflation,

0:57.5

which takes money supply into account as just one factor.

1:01.0

Another thing that comes into play, tax cuts such as the ones passed during the Trump administration,

1:06.5

which can act as fiscal stimulus, and many argue worsened federal deficits and the subsequent

1:11.2

need to borrow.

1:12.2

Still, Musk focused on government spending as the deficits and the subsequent need to borrow.

1:12.8

Still, Musk focused on government spending as the key reason inflation rose during the

1:17.3

height of COVID-related economic disruptions, and he said he wants to counteract that.

1:22.4

I mean, I think it would be great to just have a government efficiency commission that takes a look at these things and just ensures that the taxpayer money, the taxpayers are hard-earned money is spent in a good way and I'd be happy to

1:38.1

help out on such a commission if it were formed. Help out how and what would be cut. Neither man addressed that but Trump

...

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