My last post was on the political landscape before the election. It’s important that we look at the data so we make decisions and understand things as they are, not as we’re told they are. If you haven’t read that post, please read it first.
It is vital in modern day to get information from the source or as close to the source as possible. There is strong propaganda to skew information to push an agenda on every side of the political spectrum. If it is our effort to understand what is really going on and not get caught up in the propaganda, we need to do our own research, look at many sources, and watch original videos, not clips or what people say about a video or person.
If you want to know what Trump thinks, watch an actual interview with him. If you want to know what Musk thinks, watch an interview with him. If you want to know what Biden thinks, watch an interview with him. If you watch CNN, BBC, NPR or some other left-funded media, it will obviously be taken out of context. Same is true on the right, you have to be careful what you watch and how you interpret it.
Politics is fascinating, and the reason people take it so seriously is because it matters. Politics influences our lives, our perspectives, the future, and how we play the game of life. There is a strong argument to not to pay much attention to it, but there is some balance where you stay aware enough to make good decisions and be an informed voter. A. democracy (or a republic) only works if people vote. Otherwise, there are many other political systems which exist in the world that aren’t as free, prosperous, or fun to exist in.
Many people, myself included, find politics interesting. Geopolitics, economics, law, and how humans agree to structure society are an interesting blend of philosophy, psychology, and strategy. There are endless rabbit holes that affect our lives in big ways. But on the same token, you also want to focus on what you can control in life and observe the rest with a clear, calm mind. This is why all we have is conversation to understand others perspectives, and hopefully, enjoy the conversation and learn something along the way.
This post is an effort to present what I understand is actually happening currently in the US, contrary to what a lot of media may say. Everything here is based off the data, which is publicly available, and based of direct interviews with the administration.
In short, here is the prime agenda of the Trump administration so far:
- Balance the federal budget
- Move power away from federal government and more to states
- Allow Americans to keep more of their own money that they earned
- Allow Americans to build and create things without strangulation by regulation
- Make America a merit based society where you aren’t judged by your race, gender, or anything else you can’t control
- Fix the illegal immigration issue
I’ll briefly go into these in effort to convey my understanding of the situation.
DOGE
The Department of Government Efficiency (DOGE) is designed to cleanup waste in the government. The reason this is important is that for every dollar the government spends from tax, it is 1 less dollar that an American tax payer has in their pocket that they would otherwise spend themselves. In the public, people spend money based on competition between businesses, perceived value, and their own budget. The government, on the other hand, has no competition and no incentive to spend wisely. As a result, in 2024, the US federal government spent a staggering $6,750,000,000,000 in 1 year. To put that into perspective, that is $18.5 billion a day spent for 365 days straight. Secondly, the total revenue brought in was about $2 trillion less than that, meaning the government overspent $2 trillion beyond their budget.
In 2011, for example, the total spending was $3.6 trillion, and in 2019, was $4.45 trillion. Since 2011, total federal spending has nearly doubled, and just in the last 5 years, spending is up 50%. This is why the conversation is more urgent now than it was a decade ago. We’re on the verge of a runaway debt issue if we don’t cut spending.
If you have a system that is spending that vast of money, it is vital 2 things happen: 1) it is spent transparently so the public can see where their money is going, and 2) it is spent wisely only on the most important things that matter for society. If the government gets too large, it has tons of negative side effects such as inflation, increased taxation, more regulation, less freedom, more waste, etc. There is the age old debate around how big the government should be, but for most people paying attention, the spending is currently out of control. As a result, we’re currently $36 trillion in debt, and the interest payments alone on this debt is nearly $1 trillion each year, more than the entire department of defense. DOGE was created to cut spending, create transparency in spending, and to balance the budget. This is absolutely vital, but means cutting trillions in spending and shrinking the size of the federal government. It also means shrinking the 2.7 million federal government workforce.
Just with your personal spending, if you spend beyond your means, you go bankrupt and it isn’t good. If you have a business and you spend more than you’re bringing in, the business dies. Also true of the government and perhaps even the most true since it is American tax payers money, the government has to balance the budget at all costs, or the country goes bankrupt.
As a general economic theory, when money is in an inefficient system or spent poorly, there is less prosperity, less value, and less growth than if it was spent in a free market system wisely. This implies that someone was working a low productivity job in the government, and they then go to work in the private market instead, they will be more productive and ultimately make more money than working for the government. This is an important concept in economics – generally the more free that money can flow, the more prosperity that is created. This is one reason why the US is wealthy – it’s one of the freest societies on earth and is pro-business. Ease to do business is a big metric to compare between countries.
DEI
Diversity is good, equity is good, inclusion is good. Giving people access to equal opportunity is vital. But judging or hiring based on race or gender, things you can’t control, is by definition genderist and racist. We should be gender blind and color blind and hire simply based on who people are and what they can bring to your organization. This is why so many people are against DEI. The intention is good to give opportunity to less privileged people, but the way it is implemented is very poor and is incredibly divisive. Again, don’t judge or use things people can’t control to hire or judge them, it isn’t right. The current administration is making strong efforts to get rid of the racist and genderist policies that plagued the last decade.
If you don’t hire based on merit, you end up hiring less qualified people at every level and it makes everyone worse off – more dangerous pilots, surgeons, doctors, lawyers, teachers, etc. We have to keep the system color blind and eliminate racism from it.
Immigration
Most people are not anti-immigration, but anti illegal immigration because it is illegal, it breaks the law. You can vote to change the laws, but if law exists, it should be enforced, otherwise what is the point of the law. I’ve been an immigrant for years, and I’ve brought immigrants to the US. When we apply for a visa, it takes a lot of time and costs money, and we have to go through the legal steps via port of entry. If people can walk across the border, break the law with impunity, that is unfair to everyone abiding by the law, and therefore should be illegal. And there are consequences for doing anything illegal. My post on Politics and Divide from a few months ago goes into details on the actual immigration numbers.
Regulation
Regulation is important. However, too much regulation limits innovation. If new laws are constantly added and not changed with time, you end up in a position where it makes it hard to actually build and create things. A simple example is lets say you want to build a new restaurant in your hometown. If it is easy to do with clear, simple regulations then people will build restaurants and serve the people great food, and employ new staff. If it is too difficult, too expensive, and too slow, people who want to start a restaurant can’t because of the costs, time, and commitment. Then they go elsewhere to do it or do something else, and the city has one less great restaurant and a few less jobs. This example applies to everything from housing, any small business, etc. So by de-regulating, it often causes a lot more prosperity because it allows people to actually build what they want to build. This means more businesses, more services for the people, more employees at higher wages, which means more spending, etc.
If you look at Europe, the regulation has halted most innovation, GDPs are stagnate or in decline, and anyone who wants to build/innovate leaves Europe where it is more lucrative. Then you end up with brain dump where all the smart people leave and build elsewhere, which is detrimental to the country. It is vital in a global world that countries attract the best people to build and create, because otherwise they can easily go to another country and do so. This is the big argument for de-regulation – there are currently too many rules in America that halt building businesses and slows prosperity and economic growth greatly. When you de-regulate, you get a lot more people building and therefore a lot more properity.
Federal vs State Power
There is a long discussion about the role of different governments. States tend to better govern themselves because they represent smaller groups of people more accurately. For example, people in Alabama may have different beliefs, perspectives, and interests than someone in California. That is okay, people in America are free to choose and say what they wish as granted by the constitution. If the federal government starts making blanket rules and laws to govern everyone, it is often worse for everyone than if each state makes their rules. This isn’t to say there isn’t a role for the federal government, there obviously is, especially when it comes to national security, and national defense. But over time the federal government has become enormous and much larger, and more expensive, and this administration is shrinking that and pushing more power to the states, which overall is a good thing for America.
There is a lot of nuance to everything in politics and everything is a discussion. Communication is all we have – our ability to ask questions, listen, share our perspectives, and learn from each other. There is no role for violence in politics – burning of Teslas, attempted assassinations, and other forms of violence are domestic terrorism and should be treated as such. Breaking the law is not legal. The best way to learn and make change is to share ideas peacefully, calmly, and rationally. There are two sides to every discussion and it’s important to understand the other side, especially if the media has skewed the truth about what is actually going on.
What has become apparent over the last several years is how biased much of the mainstream media is. I always suggest checking out CNN, BBC, and browse X. That way you get a wide perspective of different political spectrums. I’ve discovered that 90% of mainstream media doesn’t report much other than their main agenda. If you browse X, you can get an entirely different picture about what is going on than if you browse Reddit. And most heads of state, most CEOs of the biggest companies, and most thought leaders are active on X, so it’s worth at least hearing their perspective on things, even if you don’t agree with them. It is the closest thing to a global town square that the world has.
There are many other topics to discuss such as income inequality, which is a fascinating discussion and a lot more complex than most think. I wrote and article awhile ago called Are the Rich to Blame? on that topic that may interest you.
2025 is shaping up to be a transformative year in the government, the structure of the US, and the geopolitical landscape of the world. And there are a lot of things to be optimistic for. There is more opportunity in 2025 than anytime in human history.
As I written about on X, reduced government spending will curb inflation, and deregulation will lead to more business and prosperity over time. With this said, the equities PE ratios are dot-com bubble highs and I’d expect a bubble pop at some point in the coming year(s). Structural changes to government and monetary policy can have delayed effects that can take a decade to be fully understood. All we can do is discuss flaws in policy and shape the government and the system better than it has been in the past. And openly discuss and share opinions peacefully, even with people we may disagree with.
All the best in 2025, make it the best year of your life yet.