Know about Donald Trump's plan to save 'trillions' from wasteful expenditure and the economic challenges faced by New Zealand. Trump backs a plan that would give Elon Musk a broad role in U.S. policymaking. Also, explore the reasons behind the high emigration rate from New Zealand and the impact on its population. Plus, delve into the economics of immigration and its implications on housing, economic growth, and more.
Sources:
https://www.livemint.com/news/donald-trump-elon-musk-head-government-efficiency-commission-kamala-harris-joe-biden-us-november-presidential-election-11725589512332.html
https://www.washingtonpost.com/politics/2024/09/05/donald-trump-elon-musk-election/
https://www.cnbc.com/2024/09/06/economic-refugees-flee-from-new-zealand-as-cost-of-living-crisis-deepens.html
https://www.marketplace.org/shows/marketplace/the-economics-of-immigration/
Outline:
(00:00:00) Introduction
(00:00:42) Know about Donald Trump’s plan to save ‘trillions’ from wasteful expenditure
(00:03:36) Trump backs plan that would give Elon Musk broad role in U.S. policymaking
(00:07:09) 'Economic refugees' flee from New Zealand as cost-of-living crisis deepens
(00:09:37) The economics of immigration
Simply Economics
Trump’s Plan to Save ’Trillions’ and Economic Challenges in New Zealand
Know about Donald Trump's plan to save 'trillions' from wasteful expenditure and the economic challenges faced by New Zealand. Trump backs a plan that would give Elon Musk a broad role in U.S. policymaking. Also, explore the reasons behind the high emigration rate from New Zealand and the impact on its population. Plus, delve into the economics of immigration and its implications on housing, economic growth, and more.Sources:https://www.livemint.com/news/donald-trump-elon-musk-head-government-efficiency-commission-kamala-harris-joe-biden-us-november-presidential-election-11725589512332.htmlhttps://www.washingtonpost.com/politics/2024/09/05/donald-trump-elon-musk-election/https://www.cnbc.com/2024/09/06/economic-refugees-flee-from-new-zealand-as-cost-of-living-crisis-deepens.htmlhttps://www.marketplace.org/shows/marketplace/the-economics-of-immigration/Outline:(00:00:00) Introduction(00:00:42) Know about Donald Trump’s plan to save ‘trillions’ from wasteful expenditure(00:03:36) Trump backs plan that would give Elon Musk broad role in U.S. policymaking(00:07:09) 'Economic refugees' flee from New Zealand as cost-of-living crisis deepens(00:09:37) The economics of immigration
- Duration:
- 12m
- Broadcast on:
- 06 Sep 2024
- Audio Format:
- mp3
Good morning and welcome to Simply Economics. It's Friday, September 6th. On today's show, know about Donald Trump's plan to save trillions from wasteful expenditure and Trump backs a plan that would give Elon Musk a broad role in U.S. policymaking. Plus, economic refugees flee from New Zealand as the cost of living crisis deepens. Let's coverage in more up next. I'm David, and you're listening to Simply Economics. We start off with a major announcement on Thursday as Republican presidential nominee Donald Trump unveiled a plan to install tech billionaire Elon Musk at the head of a government efficiency commission. The goal, according to Trump, is to avoid wasteful spending and save the country trillions of dollars. For more on this, we turn to our correspondent. What can you tell us about Trump's proposal? Well, David, this is certainly an attention-grabbing move by the Trump campaign. The idea is that Musk, known for his leadership at companies like Tesla and SpaceX, would oversee a comprehensive audit of the federal government's finances and performance. Trump claims this commission, under Musk's direction, could develop an action plan within six months to eliminate fraud and improper payments, potentially saving trillions. It's a bold claim. How are economic experts reacting to this announcement? There's definitely some skepticism about the feasibility and the scale of the potential savings. Bharat Ramamurti, a former economic official in the Biden White House, suggested on social media that achieving such significant cuts would likely mean reducing funding for major programs like Social Security, Medicare, or Veterans' benefits. He also pointed out that Trump's own administration oversaw a substantial increase in the national debt to the tune of $8.2 trillion, which is nearly double the debt increase under President Biden so far. And this announcement comes as the campaign is heating up with a high-stakes presidential debate on the horizon. How does this fit into the broader economic debate? It definitely seems time to draw contrast with the economic vision being put forward by Trump's opponent, Vice President Kamala Harris. Ramamurti, the former Biden official, argued that Trump is essentially proposing massive tax tax cuts for the wealthy that would lead to more money for the rich and less for everyone else. So while the Musk announcement grabs headlines, it also opens the door for Democrats to raise questions about Trump's fiscal record and priorities. Of course, the tech industry has been under intense political scrutiny lately, particularly social media. Musk himself has been a controversial figure since taking over Twitter, now known as X last year. That's right. There have been allegations that under Musk's leadership, the platform has become a megaphone for right-wing conspiracy theories. So elevating Musk to this kind of government role is likely to raise eyebrows among Trump's critics, who may see it as further alignment between Musk and conservative political figures. At the same time, Trump is clearly hoping Musk's reputation as a tech innovator and successful businessman will lend credibility to his proposals to cut government waste. Thank you for your insights on that developing story. In other political news, former President Donald Trump has endorsed a government commission that could give Elon Musk broad responsibilities for auditing federal spending and regulations. This comes as the two men appear to be tightening their pre-election alliance. Trump made the announcement during a wide-ranging speech in New York, where he also made some misleading or baseless claims on economic policy. For more on this, we turn to our correspondent. What can you tell us about this proposed commission? Well, David, Trump's advisers have apparently been discussing this commission for months, and Musk has publicly expressed interest in it on X, the social media platform he owns. During his speech, Trump said that Musk has agreed to head the task force and credited him for the recommendation of the panel. The former president claimed that this commission would develop an action plan to totally eliminate fraud and improper payments within six months, potentially saving trillions of dollars. However, budget experts have said that while it's possible a commission could identify tens or even hundreds of billions of dollars in government spending cuts, it's not credible to imagine the commission cutting trillions without severely affecting federal services. This speech seems to be a fresh indicator of the extent to which Trump and Musk have collaborated in the run-up to the November election. What more can you tell us about their growing alliance? That's right, David. Musk endorsed the former president after he was slightly wounded in an attempted assassination in Butler, Pennsylvania in July. He has also used his social media platform to try to help Trump in ways that have prompted concern from some critics. For example, Musk recently attacked Trump's rival, Vice President Kamala Harris, posting a fake image depicting her as a communist, echoing Trump's disparaging nickname for her, "Kamrad Kamala." He falsely claimed in a message accompanying the fabricated image that Harris vows to be a communist dictator on day one. This image appeared to violate ex-zone policies on manipulated content, but days after sharing it, Musk's original post was still circulating with nearly 83 million views. The close alliance between a major party presidential nominee and the owner of an influential social media platform certainly stands out, particularly this close to an election, and with Musk embroiled in recent controversies. What more can you tell us about Musk's political evolution and his support for Trump? Well, Musk's allies have poured millions into America PAC, a pro-Trump super PAC that Musk helped create. The group had raised $8.7 million as of June 30, according to public filings, with donors including wealthy business executives like former Tesla board member Antonio Grassus, Palantir co-founder Joe Lonsdale, and Sequoia capital investor Sean McGuire. Musk's support of Trump marks a major departure from past years. In 2016, days before the election, he told CNBC that he felt Trump was not the right guy because he doesn't seem to have the sort of character that reflects well on the United States. In 2020, Musk favored Biden. His growing role in Trump's orbit reflects his broader move to the right, a tack that has sometimes involved promoting fringe conspiracy theories. Thank you for that insight. The growing alliance between Elon Musk and Donald Trump and the proposed commission Musk may head are certainly developments we'll be watching closely as the election approaches. Now let's shift our focus to New Zealand, once recognized by the world as a picturesque and progressive safe haven. The country is now seeing its citizens flee in record numbers due to a frail economy. The government estimates that 131,200 people left in the past year, with about 80,200 being citizens. This is a nearly 70% increase compared to pre-pandemic levels. Here to discuss this further is our correspondent. So what are the main factors driving this exodus? There are a few key reasons behind this trend. Firstly, many young New Zealanders, also known as Kiwis, have long sought experiences abroad with strict COVID-19 lockdowns having delayed many travel plans. Now there is pent-up demand for that overseas experience. However, the turbulent economic recovery from the pandemic has also been an encouragement factor, pushing millennial and Gen Z Kiwis to leave. What specifically about the economic situation is causing citizens, especially younger generations, to look for opportunities elsewhere. A lack of quality jobs seems to be a major issue. Over 50% of New Zealand's emigrants in the past year were people aged between 20 and 39, with those between 25 and 29 making up the largest group. As one manager in the fashion retail industry put it, "In New Zealand, you feel limited in terms of job opportunities and the work experience you can gain." With the economy slowing and job losses beginning, especially for the youngest generations, many are seeking better prospects overseas. Amid these concerning trends, is there any indication that this exodus of citizens will slow down anytime soon? Unfortunately, economists believe this trend is unlikely to stop in the near future. New Zealand is facing a perfect storm of high prices, steep interest rates, and elevated unemployment. Until the job market improves significantly, experts say they wouldn't expect these economic refugees to stop leaving. The country will need to work hard to create more attractive opportunities, especially for its younger generations, in order to entice citizens to stay or eventually return home. A troubling situation indeed for a country once seen as a highly desirable place to live. Thank you for that insightful analysis. Now let's shift our focus to another pressing topic, immigration. This hot button issue has significant economic implications. To help us understand the economics of immigration, we're joined now by our correspondent. So tell us, how does immigration impact the economy overall? Immigration can have both positive and negative effects on the economy. On the plus side, immigrants help drive economic growth by starting businesses, filling critical job openings, and contributing to innovation. Many immigrants are highly skilled and educated, bringing valuable human capital. However, large influxes of low-skill immigrants can also depress wages in certain sectors and strain public resources in the short term. What about the impact on specific industries and sectors of the economy? Where do we see immigration having the biggest effect? One major area is housing. Immigrants, especially those who settle permanently, create additional demand for housing which can boost residential construction and home prices. Industries like agriculture, hospitality and technology also rely heavily on immigrant labor. In tech, for example, immigrants make up a large share of the skilled workforce helping drive innovation. On the flip side, research shows immigration can negatively impact wages for native born workers with lower education levels who face more direct labor market competition. There's been a lot of debate about the fiscal impact of immigration. Do immigrants cost more in government services than they pay in taxes? Cities on this issue have produced mixed results, but in general that the fiscal impact tends to be relatively small and depends on the characteristics of the immigrant population. Highly skilled immigrants who earn good incomes tend to pay more in taxes than they use in services. Younger working-age immigrants also tend to be a net positive since they pay into social programs like Social Security. However, the initial costs of public education and other services for immigrant families can be substantial for state and local governments. But over the long term, the children of immigrants who get educated and join the workforce end up being a fiscal net positive. So it sounds like from an economic perspective, the pros and cons of immigration really come down to the specifics, the skill levels and demographics of the immigrant population and the time horizon we're looking at. Exactly. And it's a complex issue because economics is only one piece of the puzzle. There are also social and cultural impacts to consider, as well as the moral question of how to treat those seeking opportunity and a better life. Ultimately, immigration is an issue that requires weighing many factors and making difficult policy trade-offs. But the economic impacts, while not always clear cut, are an important part of the overall equation. Thanks for helping us break down this complex issue. And with that, we wrap up our stories for today. Thanks for listening to Simply Economics, we'll see you back here tomorrow. [MUSIC] [BLANK_AUDIO]