Episode summary
How the Blue Wave Could Reshape America’s Economy
Wall Street Week
· · Guests: Glenn Hubbard
Summary
Glenn Hubbard argues that the midterm results were less a mandate for any one ideology than a demand for policies that visibly improve people’s lives. He says voters want “what works” and want leaders to engage real problems like affordability, not just gesture at them. His prescription centers on growth plus broader participation: prepare workers for AI-driven change, address electricity, permitting reform, and housing costs, and avoid assuming the tech sector alone will sort out the disruption.
On tariffs and trade, Hubbard says tariffs did raise prices, but that reducing them only makes political sense if it is paired with a credible plan to bring more Americans into the economy. He frames the needed response as a “big idea,” not a massive new bureaucracy, pointing to land-grant colleges and the G.I. Bill as historical examples of national adaptation. He also expects debt politics to become unavoidable as Social Security pressures, higher-for-longer rates, and refinancing costs force a fiscal reckoning.
The later segment shifts to election integrity and the rule of law. Robert Post says state and local officials proved resilient under pressure and that the election proceeded without the crisis many feared. He also warns that if an administration acts first and explains later, politicizes the Justice Department, and weakens legal norms, businesses and markets have reason to be alarmed.
Key takeaways
- Glenn Hubbard says voters want policies that “work” and are tired of politicians nodding at affordability without solving it.
- Hubbard wants any AI or growth agenda to be paired with concrete steps so “everybody’s going to be in the boat.”
- He says tariffs raised prices, but tariff reduction only sells politically if it is tied to broader economic participation.
- Hubbard expects Social Security and higher-for-longer interest rates to force a debt and deficit debate onto the next president’s agenda.
- Robert Post says state and local governments were the key guarantors of election integrity under federal pressure.
Notable quotes
“The first is that voters want what works. The second is that voters want you to actually look at their problems”
“Don't be glib and say, "AI will make us better off," the same way globalization would or any other technological change”
“Tariffs did raise prices and Americans did bear the burdens of tariffs”
“what we have seen in this administration is quite beyond anything we saw in the first Trump administration”
How the episode opens
We start with the aftermath of the midterm elections this week, and what they may mean for the policies, or lack of policies, on the economic issues that matter to voters. We talked with Glenn Hubbard of the Columbia Business School, who served as Chair of the Council of Economic Advisers under President George W. Bush.
-I think there are two messages, and I don't think the press has really picked up on them. The first is that voters want what works. The second is that voters want you to actually look at their problems.
I think there's a view that, well, the Democrats won because their ideas are better. Well, they may or may not be, but that's not what the electorate was saying. I think the electorate is just saying, give me something that works.
Affordability is an example. But really we've had decades of big change in the economy. Politicians on both sides of the aisle have nodded, but have not offered solutions.
And I think voters are sick of it. Westin: So if the Democrats turned to you tomorrow and said, "OK, what plan should we pursue "in the new Congress that would address "some of the affordability concerns? What would you suggest they look at?
Well, let me start 30,000 feet and then land the plane. So 30,000 feet, it ought to be about two things. One is economic growth.
It's still the case growth makes everything in life easier, makes us better off. But the other is to have a full participation economy. Don't be glib and say, "AI will make us better off," the same way globalization would or any other technological change.
Tell us how we all can participate. Going down to the landing field, how are you going to prepare people for those new jobs, give the voters some specific ideas?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- tariffs
- ai
- congress policy
- affordability
- national debt
Watch the episode
Watch “How the Blue Wave Could Reshape America’s Economy” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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