Bannon and Newsom Find Common Ground on Certain Economic Policies

Despite their typically contrasting viewpoints, the two experienced political figures found agreement on several issues, such as economic theories and government authority.

Bannon kicked off their discussion by unveiling his strategy to transform Newsom from a “globalist” into a “populist.”

“Is this part of the deprogramming, then?” Newsom quipped in reply.

Regarding tariffs, both acknowledged that they can play a role in U.S. trade policy. While Newsom expressed a preference for targeted tariffs, Bannon argued that broad and sustained levies are more effective.

The governor noted that former President Joe Biden not only kept the tariffs instituted by Trump but also tripled some of them.

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“Democrats weren’t raising a fuss about that,” Newsom remarked. “What’s fair is fair.”

They concurred that while tariffs could inflict some economic pain, they are anticipated to foster a return of businesses and employment to the U.S., with Bannon predicting red states with less regulation would gain the most.

Conversely, Newsom pointed out that those same states might face significant challenges from tariffs if they lead to increased prices.

“Concerning tariff policy, it appears somewhat chaotic, and the markets are reflecting that,” Newsom stated.

Bannon articulated his concerns regarding issues stemming from unelected government officials, an idea that found support from Newsom.

“It’s a “clay layer of bureaucracy, unaccountable individuals making a multitude of decisions,” Newsom commented.

Disagreements surfaced on how to navigate this situation, with Bannon backing Trump’s initiatives proposed by the Department of Government Efficiency (DOGE) to rapidly streamline government processes, whereas Newsom advocated for a more cautious approach.

“There will be tears here,” Newsom warned. “This transition won’t happen overnight … and will come with genuine costs and consequences.”

Opinions on Musk

Although both men have voiced criticism of prominent advisor Elon Musk, Bannon expressed appreciation for the tech executive’s initiatives with DOGE.

Conversely, Newsom expressed reservations about Musk’s role within the government.

“There’s a recklessness in his actions; it’s unaccountable,” Newsom remarked.

Bannon acknowledged his ambivalence regarding the situation.

“I have numerous issues with Elon; you know that, and so does Elon,” Bannon admitted, while also praising efforts to mitigate national debt.

The Republican media figure compared the DOGE team to “shock troops” and “special forces” on a mission to eliminate inefficiencies with the aim of erasing the federal deficit.

“I would like to see a bit more clarity about their findings,” he said, earning Newsom’s agreement.

Both agreed that eliminating waste, fraud, and abuse is a commendable goal.

“Everyone supports that,” Newsom said.

Bannon suggested that those profiting from insufficient oversight might be among the opposition to such initiatives.

“Wall Street is not going to appreciate it because they are all neoliberal neocons,” he stated. “They want to be intervening everywhere and despise populism.”

Economic Populism

Bannon suggested that the notion of economic populism, where policy choices prioritize the wellbeing of American citizens, is gaining traction across diverse demographic segments, championed by some Democratic figures like Sen. John Fetterman (D-N.Y.), Ro Khanna (D-Calif.), and former Rep. Sherrod Brown (D), among others.

“There are some very impactful voices in the Democratic Party,” Bannon noted. “I think they’re somewhat isolated as it hasn’t been a central topic of discussion.”

They also concurred on the significance of citizen engagement in the democratic process.

“I value the concept of agency, that we aren’t just passive spectators in the world,” Newsom stated. “Our fate and future are determined by decisions, not mere conditions.”

The governor expressed his support for revitalizing jobs through a balanced approach to foreign trade policy, viewing it as a “worker-centered” imperative.

Taxes and Budgets

Both agreed that tax rates should increase for the wealthiest individuals and that corporations should not receive tax breaks if they intend to use the money for stock buybacks.

“They’ve discovered how to exploit the system,” Bannon remarked.

Additionally, both advocated for the abolition of a tax advantage known as “carried interest,” which benefits investment managers.

“That aligns with my vision of DOGE,” Newsom responded.

Bannon characterized the nation’s fiscal predicament as a consequence of overspending rather than insufficient revenue and advocated for substantial cuts to federal expenditures, including within the U.S. Defense Department, Medicaid, and social programs, as the sole remedy for inflationary pressures.

“This will lead to difficult discussions,” he warned. “It has spiraled out of control, affecting both parties. Major confrontations are on the horizon.”

He expressed irony that Republicans passed a continuing resolution, known as a CR, including provisions from the Biden-Harris budget.

“We detest any CR. We’ve disliked this one for an extended period,” Bannon said. “It’s a challenging reality to accept.”

Newsom indicated his surprise at the Republicans’ endorsement of the plan.

“Securing the Biden-era budget, or at least prolonging it … was the last outcome I anticipated from the [Make America Great Again] movement,” Newsom remarked.

Lowering energy costs is also a mutual goal, though their strategies to achieve this vary.

Another shared viewpoint is the potential of small modular reactors in powering artificial intelligence systems and data centers.

“It has revived the discussion surrounding nuclear energy, which is intriguing,” Newsom said.

At one instance during the podcast, Newsom appeared unfazed when Bannon confidently asserted that the 2020 election was stolen.

Speculation abounds that the California governor is positioning himself for a presidential campaign in 2028.