Transcript of GOP Blocks First Vote on Pete Hegseth’s Impeachment

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Scott Galloway and Jessica Tarlov discuss the growing discord within the Republican party as Congress returns for a lame-duck session before Democrats take control of the House. They cover the push to impeach Defense Secretary Pete Hegseth, calls to impeach HHS Secretary RFK Jr., and what the post-election fallout could mean for the GOP.

The hosts also examine Democratic Senate candidate Scott Colom's argument that a campaign visit by Kamala Harris helped his race, and what that might signal for her 2028 prospects. The episode ends with turmoil among MAGA influencers and audience questions on cabinet predictions and tax policy.

In this episode Jessica Tarlov, Scott Galloway

This Raging Moderates episode on the Hegseth impeachment push was made with the tool HappyScribe built to transcribe audio to text.

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Scott Galloway00:02:22

Welcome to Raging Moderates. I'm Scott Galloway.

Jessica Tarlov00:02:24

And I'm Jessica Tarlov.

Scott Galloway00:02:26

All right, before we get started, make sure to subscribe to stay up to date and support the show. All right, let's bust into it. Let's start with the latest in the Congress. Yesterday, Washington, D.C. was giving first day of school vibes as Congress churned for its lame-duck sprint, with fewer than 25 days until Democrats take control of the House. And the next Congress will have at least one fewer familiar face: Lauren Boebert. We will miss her, who has officially lost her seat. There you go. By the way, Redus District in Colorado flipped blue. But these final weeks could get messy.

Yesterday, outgoing Representative Thomas Massey introduced eight articles of impeachment for Defense Secretary Pete Hegseth, which could see a vote on the floor later this week. Hegseth insists he's not worried, but the White House is reportedly checking whether Republicans have the votes to impeach him. He may also be losing his potential soft-landing Tennessee governor-elect, Marsha Blackburn, reportedly has no plans to appoint him to her Senate seat. There's also political calculation for Trump. Republicans can still choose Hegseth's successor while they control the House.

Come January, Democrats take over. Hegseth held a press conference early this morning. Let's take a listen.

Speaker 400:03:34

History will judge the Iran War quite differently than conventional wisdom right now. We didn't start this war. Iran did, 47 years ago. But President Trump is willing to do what no other president would. The proper remedy for a policy disagreement, it's legislation. It's debate. It's the next presidential election. It's not handing the House and Senate floor to the Democrats so that they can run a show trial against the president and the secretary of war while Republicans still control Congress.

You see, we've seen this show before. They impeached President Trump over a perfect phone call. They impeached him again in his final week in office. Both times they failed. As for the articles themselves, Iran, the cartels, Maduro, Yemen, every one was a lawful operation ordered by the commander in chief, then ordered by myself, notified to Congress, and executed by American warriors who did their jobs. We destroyed terror regimes' capabilities.

We sank the boats carrying poison into our communities. We put a narco dictator in handcuffs. These are not high crimes. This is the job. And it's the job well done.

Jessica Tarlov00:04:52

If you read the articles of impeachment, it's not that long. Nowhere in there was it mentioned that this was about being just too damn good at your job. There was talk of, you know, having an illegal war. Also talking about Yemen, school kids that were killed, and other various goodies that do not have to do with being such a badass. But I'm curious to get your thoughts on this. It's a bit of a counterintuitive way to think about this, but Pete, to my mind, actually became a little bit less vulnerable because now Trump is out there talking about how he has his full confidence.

So you have Ted Cruz on his podcast where he goes into this room and he becomes honest and he says all the things that normal people are thinking, which is like the House had to be adjourned because they had the votes to impeach Hegseth. And certainly when you look at the new crop of senators coming in, or even some of the outgoing Republicans that have found their YOLO in the final moments, maybe that they would want that to be their final vote that they cast, especially those that made a big stink about him and then voted to confirm. You know who I'm talking about.

But now Trump is defiant about it and has even said that he would keep Hegseth if he gets impeached. So do you think he's not in as much of a dangerous position this morning than he was two days ago?

Scott Galloway00:06:20

I don't know. And you may know the mechanics better than me, but my sense is all of the Democrats who are all of the voters who are responsible for forming not even this tsunami, but this blue super tsunami, are looking for a blood offering. And this seems like the most obvious one, both in terms of what is incredibly unpopular not across just Democrats, but also Republicans, and also has some Republican members of the chamber fired up. So this feels like the blood offering that every Democrat wants, the voters want, and even some Republicans want.

I just don't see how he survives this, but maybe there's some mechanics here that I'm missing. What are your thoughts?

Jessica Tarlov00:07:00

I think it's just, it would be a Trump thing more than a mechanics thing. I don't think that people have changed their mind. Though it was interesting to hear Don Bacon, who is on his way out, has been hypercritical of Pete Hegseth, say that he wouldn't vote to impeach him. But the numbers are going to be there with or without Don Bacon. I just thought that was a surprise, I guess, since he has been so critical, but he has objections to Thomas Massey and saying that this is a guy who is anti-Ukraine, anti-Israel, and I don't necessarily want to be a part of this.

I think that it's very smart strategically to return to how I led with this, to put everything that he's done into one bucket because, you know, if you say Maduro, for instance, then the president is thrilled with how all of that went, especially because they're ignoring the fishermen that we killed in boats in the Caribbean and God knows what else has gone on. Saying that they followed all of the protocols, there has been a number of folks who would more traditionally be conservative about this, who have spoken out about the fact that they circumvented the War Powers Act.

That's a question for Hakeem Jeffries, how quickly that will come up as an agenda item once he's speaker of the House to make sure that there are actually votes on these things. But he did say, "This is a show trial of me and the president." And that's how I think he links it together. And that's how he gets President Trump to be supportive when you think about the autopsies that have already been written of the election, including the one from J.D. Vance, even what the president said Sunday on 60 Minutes about the Iran War being a factor in the election, though he said he would do it again because he needs to make sure that Iran doesn't have a nuclear weapon.

But tying them together, I think, is a very smart strategy for Pete and saying that this war was started 47 years ago. The average American doesn't care. They just saw an inflation report come in hotter than expected again, though gas on the national average just went below $4, I think, for the first time since July 19th. But I see what he's doing, and I think that if you are in that vulnerable of a position, it is the smartest thing that you can do. I guess is my final determination.

Scott Galloway00:09:19

So if there's two parties here, there's Trump, obviously he serves at the pleasure of the president. If the president says you need to resign, then he resigns. I think your point is it doesn't sound like that's going to happen. But does the administration really want to endure on, you know, kind of live, you know, 24 by 7 live coverage of this vote, which sounds like it's going to happen sooner rather than later? And does Trump's what feels like, based on this obviously coordinated release or clip or talking point from Pete, does he have the influence to pull back the vote such that he isn't impeached?

In other words, okay, even if the president is not going to put pressure on him to resign, are they on the eve of this vote going to decide that they want this broadcast live when they count the votes and find that they're going to lose and he's going to be removed?

Jessica Tarlov00:10:07

I mean, do they want it? No. They would rather program an octagon with Dana White. And we're going to talk about Dana White in the press briefing room and his turning down of that job, which was totally a legitimate offer and not a mistake on the president's front. I don't think they feel like they can stop it.

Scott Galloway00:10:24

Yeah.

Jessica Tarlov00:10:24

So I think they're just.

Scott Galloway00:10:25

So this is moving forward. This is going to be great C-SPAN drama.

Jessica Tarlov00:10:27

It's definitely moving. It is. And I thought it was the president called in to C-SPAN of all places last night.

Speaker 500:10:33

It looks like we've got a call from the White House. Mr. President, welcome to Washington Journal Primetime.

Speaker 600:10:42

Well, thank you, Mimi, and good luck with the show. I've watched you numerous times and you do a great job, but good luck with the show.

Speaker 500:10:49

Thank you. We appreciate you calling in.

Jessica Tarlov00:10:51

There was a woman laughing, giggling in the background. I don't know if it was Natalie Hart. It was not a Melania laugh, to say the least. But, you know, he said that he enjoys watching C-SPAN and that's how he takes the temperature on the country. But every network is going to cover that if there actually is an impeachment vote over Pete Hegseth. And I would imagine they were going to have way more than enough votes to make it happen. And this feels to me like them moving inwards. You know, you see this huge election, right, where you should be contending with the fact that now Texas is blue, you do Los Kansas, South Carolina, and these aren't small elections, right?

You're going to have a senator, Annie Andrews, from South Carolina for six years, right? You're going to have this in Kansas. Texas decades to undo if they think that they even can. So you would think that they would be looking at the big picture stuff and expanding their minds, but they're just getting smaller and smaller. Stephen Miller is a small-minded move. Defending Pete Hegseth like this is a small-minded move, and it shows that nobody is listening to the voters about what happened on Tuesday.

Scott Galloway00:12:01

What did you make of the Dana White-Trump, I don't know what you would call it, stunt yesterday?

Jessica Tarlov00:12:06

It was during the five. So we took it live and then talked about it. You know, they're making it out to be that this was an intentional joke. And I thought that Dana White seemed somewhere between uncomfortable and passively fine in playing along with this. But I think it all just speaks to how deeply unserious this White House has been and continues to be, and that it's just going to get worse in a lame-duck era.

You know, we weren't crazy for considering the fact that he might legitimately think that Dana White should be the new press secretary. And I think they're going to throw things at us that will boggle the mind, to say the least. And I think it's all a joke. This is like a practical joke with nuclear codes, which is the scariest joke of all. And that's what I felt about seeing Dana White on our screens when everyone was desperate to see my face.

Scott Galloway00:13:08

There you go.

Jessica Tarlov00:13:08

Not most of the viewers. Did you catch any of it?

Scott Galloway00:13:12

I saw some of it. I actually think Dana White wouldn't be, I mean, I've said jokingly that I thought he would be one of the brighter people in the White House. I just.

Jessica Tarlov00:13:20

I mean.

Scott Galloway00:13:21

He's a talented guy. He's run a great organization. I thought that was, I thought they actually handled that, I mean, fairly well. And it was sort of a, what I would call a well-placed distraction because it was sort of outrageous enough to interrupt a news cycle, which has been pretty negative. But it doesn't appear like it's, I don't know, that it was real and people like Dana. And I don't, kudos to them if they're looking for distractions. I think that was a good one. But going back to the news cycle they're probably trying to avoid, we haven't yet discussed the growing calls to impeach RFK Jr., which picked up steam yesterday after Dr.

Annie Andrews and Senator Bernie Sanders both voice support for the idea. Cauchy has the odds at 36% that he's impeached before the new year. Do you think this is a serious possibility, the impeachment of RFK Jr.?

Jessica Tarlov00:14:14

It's new to the conversation, but that doesn't mean that it isn't serious. And lo and behold, when a bunch of doctors and nurses and healthcare professionals win their races, there's going to be a discussion about the fact that we have a total crank for an HHS secretary that has made us all sicker and spews absolute nonsense on one of, if not the most important thing in our lives, which is our health. So I hope that it's serious or at least some discussion of it.

I'd be curious as to what exactly the articles of impeachment would look like. I think, you know, obviously Thomas Massey releasing what everyone's going to be voting on vis-a-vis Pete Hegseth is important, and you'd have to see that as well from Senator-elect Andrews and Senator Sanders. But why not at this point when you think we've spent two years calling these people completely unqualified for the job? Maybe it's time to do something about it.

Scott Galloway00:15:15

Do you think that Stephen Miller's kind of full-throated or bear-hug of RFK Jr. makes it less likely? Do you think that, I mean, are they going to go from Hegseth and then the next week? At what point do Democrats decide, okay, the accountability, when does the accountability tour turn into the revenge tour? Or is this what the public wants? I mean, no one likes Pete Hegseth. No one is more grateful for Secretary Hegseth right now than Secretary Kennedy. He's got to think, okay, someone was going to take a lot of incoming here, and I'm glad I'm not, you know, on point here.

Do you think as soon as the resolve one way or another with Hegseth that they just immediately turn their sights on RFK? And does RFK benefit again from Stephen Miller? It appears that part of their strategy is, or at least Stephen Miller's strategy is to kind of embrace the MAHA movement and more tightly associate the administration with the MAHA movement and RFK Jr. Do you think they're already doing kind of trying to lay groundwork for killing the momentum around this?

Jessica Tarlov00:16:18

Well, they would be smart to embrace the MAHA movement in its original construction. The problem is that it got completely corrupted. And I think only five of 20 MAHA movement candidates were able to pull off their elections. It's been essentially decimated because people said, like, I signed up for getting the red and yellow dyes out of my food. I didn't sign up for measles. And that's what we got. So, you know, I don't think a bear hug from Stephen Miller is ever going to feel as good as a bear hug from Donald Trump.

Everyone is expendable, though Stephen Miller has obviously been there for the long haul and ultimately, you know, one of, if not the most trusted person in President Trump's orbit. And I went and listened to oversight, soon-to-be oversight chair Robert Garcia talking about what accountability looks like. And the title of his talk was Lawyer Up, which is what he tweeted out in the middle of the results coming in on Tuesday night. And, you know, that immediately hits people and they think, is this just going to be a revenge tour?

Like you said, right? If you're kind of memeing and throwing haymakers like that, you know, saying essentially, we're just going to throw you in jail, which is what people would take from it. And the base loved it, right? That's what they want to hear. They feel like crimes have been committed that there has been, to say it in the nicest terms, a lack of faithfulness to the Constitution, at the least. But you got to be really careful about this because I do think it is one of their most potent attack lines against Democrats using this lawfare argument.

And Hakeem Jeffries has to be very careful in how he treads these lines because he's got an agenda to get through, and his agenda is driven by affordability concerns. It's not driven by whatever is going to happen to Pete Hegseth and RFK Jr. and Elon Musk and the Trump kids, et cetera, even though it is a piece of it, government corruption, a huge issue to people, and this desire for accountability, not for made-up crimes, but for what they've actually done to the government and what abuses may have been committed.

So I think you're right to point out how delicate a line has to be towed in all of this.

Scott Galloway00:18:38

Yeah, and to be clear, they're zeroing in. I mean, you could argue, obviously the president has to take responsibility for geopolitical decisions, to bomb a nation, to go to war. And people would say Secretary Hegseth is a dangerous person, just, I would argue, because of his incompetence. Arguably domestically, and I think people can make this argument that the most damaging over the medium and the long term is, in fact, Secretary Kennedy. I mean, we're seeing measle outbreaks, the likes of which we haven't seen before. And a lot of this has a lag, right? When you don't have, when you're seen as being anti-vaccine or creating a both-sidism around them, a lot of the damage there might come to fruition or surface well after he's out of office.

But again, the line is the following. And a cautionary tell is Lieutenant, I think it's Alexander Vindman, who was the, raised the most money. He was a candidate for Senate in Florida, was leading for the entire race for the Democratic nomination, and then lost the nomination. And people basically described his campaign as a failed attempt to have an impeachment nostalgia tour. That's just not what Democrats, at least in Florida, appear to be animated about. So as you pointed out, the line between what people perceive as accountability, and also to be blunt, the people who are most angry are going to be the most animated and vocal online.

But I would argue that the groups that swung hardest to blue, while they want accountability and corruption, actually corruption was a big issue for them, I do think that they're more focused or I don't think the Democrats are going to be able to keep these swing voters if they just go on what's called, you know, for lack of a better term, an accountability slash revenge tour. And the question is, at what point does it begin to occupy, when does it become the main issue or what Democrats, when people say, well, what's changed now that the Democrats are in office?

I would hope that the first thing isn't, you know, these C-SPAN hearings, you know, going for resignations that people say that is happening. It's accountability. These people deserve additional scrutiny. But sooner rather than later, I hope we see, you know, a bill for universal healthcare, raising minimum wage, housing credits, whatever it is. I think a decent litmus test for how they're doing is going to be that there's an ounce of quote-unquote accountability or whatever you want to call it, but a pound of actual policies.

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Scott Galloway00:24:06

Speaking of party leaders, Nancy Pelosi, former Speaker Pelosi, had this to say about Hailey Stevens. Let's watch.

Speaker 600:24:13

What do you make of some of your colleagues calling for Hailey Stevens to be kicked out of the Democratic Caucus after she endorsed Mike Rogers at the last minute?

Speaker 700:24:23

Well, you know, we have about three more weeks or two more weeks of being in the Congress. So I don't think we should start making judgments about anybody in the Caucus at this point. In other words, compared to what? And compared to what? I was disappointed in that. I've conveyed that to her. I want to be helpful to her in terms of how she deals with this. But I'm not supporting kicking her out of the Caucus.

Speaker 600:24:52

You've spoken to her since then.

Speaker 700:24:53

Yes, I have.

Speaker 600:24:54

I mean, does she have any concern about coming back to the Democratic Caucus? We heard reports she was with the Republicans last year.

Speaker 700:25:01

You'll just have to ask her that about what her plans are.

Scott Galloway00:25:07

You seem jonesing. Go ahead.

Speaker 800:25:09

No, I just, like, leave her alone now.

Scott Galloway00:25:13

Yeah.

Speaker 800:25:13

Like, she fucked up. And if the reports are true that she's hanging out in the Republican cloakroom, like, let her be, right? You know, she should have never endorsed Abdul in the first place. Clearly, her heart was not in it. That is completely fine to say, to just be like, I want Democrats to flip the Senate. This particular candidate is not my cup of tea for these reasons. Maybe we can continue working towards an alliance and making sure that I feel good about this and whatever reticent Jewish voters feel good about Abdul.

She completely effed it up in the process of all of this, culminating in leaving Jim Clyburn sitting in a church waiting for you with your staff, not even knowing that you're across town with Mike Rogers. Like, unbelievably uncool. But this woman has what, 30 days left of this job is probably in complete freefall in thinking about what her life looks like now. She probably isn't going to be able to run for office again as a Democrat with this kind of stain on her record vis-à-vis the party.

Like, I'm sure Nancy probably would feel differently if she was the one that was still in charge of the Caucus. This feels a little bit like nice grandma vibes on a comparative basis. And she would have been harsher maybe if she were the one that was about to get the gavel again. But I'm, leave her alone is my feeling.

Scott Galloway00:26:50

It feels like this would be a gift to Republicans because, I mean, first off, there are several Republican elected officials or government officials who endorse Talarico. Are we expecting, you know, what would we, how would we respond if the Republican Caucus kicked them out or the local Texas Republican Party kicked them out of the party? I think the appropriate response here for the Speaker or anyone else in power is, I don't argue with her decision. It's, you know, she has free will. There have been several candidates who have endorsed people across party lines. The majority of them have been Republicans endorsing the Democratic candidate.

And while I don't agree, you know, we wish her the best. Next. That's it. We keep accusing the MAGA movement of being a cult. And part of the cult is that when someone leaves, you treat them like an apostate. You treat them as if they've done something morally wrong by not signing up for every aspect of the cult. So this is, I think this is an obvious situation in that they should just, like you said, let her get back to her life. I can't imagine she needs Democrats piling on. In Mississippi, Scott Collum has been looking for big-name Democrats to energize the base of Southern Democrats.

He advocated for Kamala Harris to campaign in the state against the advice of his advisors. Now, narrowly in the lead, Collum is crediting Kamala Harris's appearance in Mississippi for bringing attention to the state's crumbling hospitals. Do you think this says anything about Vice President Harris's chances for her 2028 presidential run? Was this seen as successful? Because there was some debate, just as there was debate around whether Trump getting close to a candidate was a positive or a negative. I felt the same vibes with Vice President Harris around whether Democrats should campaign, how closely they should campaign with her.

Does this make her a more attractive or compelling person for issues and perhaps bring her back into the light for 2028?

Speaker 800:28:42

I think she's definitely out of the shadow.

Scott Galloway00:28:45

Yeah.

Speaker 800:28:45

Considering what's gone on. And, you know, if there is going to be a reprioritization of the Sun Belt over the Rust Belt, that's to Kamala Harris's benefit. And I was really happy reading this article that Scott Collum went against his advisors and said, no, I know the people of Mississippi better. I know how popular she is, especially with Black women who, I mean, ran the table in these races.

Scott Galloway00:29:14

Was it 92 to 80?

Speaker 800:29:16

Yeah.

Scott Galloway00:29:16

I mean, it was very.

Speaker 800:29:17

Just.

Scott Galloway00:29:17

And by the way, I want to apologize to Mr. It's.

Speaker 800:29:21

It's Collum.

Scott Galloway00:29:21

I've been calling him Collum.

Speaker 800:29:23

I had to do one of those pronunciation things.

Scott Galloway00:29:27

If Mary Peake can get past this, so can he.

Speaker 800:29:29

Yeah. But does it make her my 2028 pick? No. But I think that it gives her some of the flowers that she deserves for important connections that she's made in certain communities and her ability to be a good surrogate for folks. And everyone spends their time now kind of shitting on her. And I like that he stood up for her. And clearly it worked. When you look at this, we're about to have a Democratic senator from the state of Mississippi.

So I think it's a good thing.

Scott Galloway00:30:07

It's a good thing. Pennsylvania Governor Shapiro is making the case that a state, not Texas, is still the ultimate swing state. There you go. After helping Democrats flip four congressional seats, win control of the state legislature for the first time in 30 years, and securing his own reelection by more than 20 points, Shapiro says Pennsylvania should remain the blueprint for the party heading into 2028. He also brushed off the idea that Texas could replace Pennsylvania as the nation's biggest battleground, insisting, I'm Pennsylvania first. Now they're arguing over who's the battleground state.

Jess, we haven't checked in on him in a while. Yeah, Governor Shapiro sort of, he has lost some of the, I want to say mojo. And by the way, at this point, I'm not sure you want mojo. It probably isn't a bad idea to be a little bit in the shadows at this point. But we haven't heard from him in a while, or I would say he hasn't gotten a lot of coverage. What's the theory of the case for Shapiro heading into 2028? How would you handicap it? And obviously, it is very, very early. But what do you think, where would you put Shapiro right now in the increasingly crowded race on the Democratic side?

Speaker 800:31:13

I would put him still in the top tier. I was with him this weekend at Crookie Con. He was out there with Bob Brooks, one of the Democrats who was able to flip a Republican seat. And we were talking about the candidate quality in Pennsylvania and that he hand-recruited four of the folks that flipped seats. He won by these god-tier numbers. I mean, it was so insane. No one even thought that there was a chance that any Republican would be able to challenge him. I think that he's also been vindicated on the Fetterman front.

You know how they've been in a fight for years and not spoken. Now when you look at where the Caucus is, obviously going into this, well, we're going to have like 56 senators in the end. Like, that makes John Fetterman not important at all to the Caucus. Like, there was a scenario in which we would have to be concerned about where his vote was going. And we've talked about this on Raging Moderates before. Like, what will Fetterman do? Do you think there's any possibility? Now it doesn't matter. He can do whatever he wants.

I would still like him to vote with Democrats where it is appropriate. And he made that point. He still votes with them, what, 92, 93% of the time. But we are in Fetterman-proof majority territory. And I think that Shapiro has a very strong case to make. And people were going bananas for him at this conference. Super excited. Wes Moore was also there. People chasing him all around. It's good to see folks out and about telling their stories about what they've accomplished. I mean, Josh Shapiro, JB Pritzker, and Wes Moore all won reelection on Tuesday night and all have interesting cases to make.

Huge night as well for Andy Beshear and what he pulled off with the Democratic Governors Association. Like I said yesterday, 75% of Americans are going to be governed by a Democrat come January, which.

Scott Galloway00:33:07

That just absolutely blows my mind.

Speaker 800:33:09

Yes.

Scott Galloway00:33:11

That's three and four of our citizens will be governed by a Democrat. So probably the most outrageous tax loophole, I would argue, is what's called the 2 and 20 rule in alternative investments. And that is, or that's fees, carried interest loophole, excuse me. And it's the following. If you're a Subaru salesman making 100 grand a year and you have commissions on every Subaru that you sell, you get taxed at ordinary income. And if you're making over, I think it's 180,000, you get taxed at 37.5%.

But if you're a money manager and you're managing people's money and you increase the value of the stocks you pick for them from $100 to 200, on that $100 I would call commission, you qualify for capital gains or lower interest rate. And it's called the carried interest loophole. And it applies to an industry that is arguably the most, I won't say overcompensated, but the most well-compensated industry in history. I think we're going to look back on this era. For the last 20, 30 years, there has never been a group of people, a smaller group of people who have made more money than the alternative investments community.

And in addition to making a ton of money, they get to keep more of it and not pay ordinary income taxes on what is effectively a commission. You're supposed to get capital gains tax deduction or lower rates when you put your own capital at risk. This is not putting your own capital at risk. This is putting other people's capital at risk. And that was part of the infrastructure bill. That is, they were going to do away. They were going to close this loophole. It had to be stuck back in or ripped out of the infrastructure bill because Senator Kristen Sinema, who took $700,000 from the private equity industry, she became a holdout.

And she had that kind of power, as did, remember the senator from West Virginia.

Speaker 800:34:58

Manchin.

Scott Galloway00:34:58

Manchin. When it's this close and you, the temptation to have this kind of power and cameras on you and fundraising ability where you can say, you know, I'm not sure I feel I have some concerns about this bill. And basically, the president on down have to show up and give you whatever the hell you want, including putting back in what is a ridiculous, a ridiculous loophole after receiving this kind of money. I mean, I wish, I hope someone someday loves me the same way that Kristen Sinema loves the private equity industry.

But this, what you reference is really important because when it's this close, the temptation to become the swing vote and then garner the attention and leverage is too great for someone not to pop up and say, you know, I'm worried about X, I'm worried about X, Y, and Z, and we don't have that.

Speaker 800:35:53

Can I ask you a question about Texas versus Pennsylvania? So obviously on electoral votes, Texas has 40 electoral votes. It's like the mother load. Do you think that, I know it's fun to talk about the Blue Nami and Blexis and, you know, all of the memes around what's happened in Texas. And Democrats did insanely well, you know, from the bottom of the ballot to the top of the ballot. And I love seeing Gina Nehosa going for it, right?

Like as many things as she can change, you know, from protecting women's healthcare, getting religion out of our schools. She's doing all of the things that people would want her to be able to do. Do you really think that in a presidential, Texas would vote blue? Something about that feels different to me. And maybe it's still the cautious Democrat that lives inside of me and continues to churn my stomach and still say nauseously optimistic when we had, you know, the best night since 1974 is maybe, you know, piping up too much.

But I feel like a total change in strategy where you think, oh, Texas over Pennsylvania. Like the Sun Belt versus the Rust Belt, I get. Because the Rust Belt hasn't been particularly reliable for Democrats. And then you look at the incredible candidates coming out of the Sun Belt. I get that refocusing, but this idea that we have, you know, this election and then Texas is on the map for us on a presidential level feels too shaky to my nervous system.

Scott Galloway00:37:31

I mean, we can dream and there's somewhat of an, you can make the argument that the Hispanic community or the fact that, quite frankly, there's the dream of this migration that has taken place from blue to red states. Migration can largely be described as people leaving high-tax cold states and moving to low-tax sunny states such as Florida and Texas. The dream was that so many Democrats moved into these states that it would start to change the complexion. I think if you actually look at the numbers, it's a fantasy. I mean, I just don't, like I said, I think we are renting these voters and the notion that if they put up a decent Republican candidate in 28, that this state is in play.

I mean, we can dream, but I think again, I just don't see this red riptide. I don't, you know, Trump was on the ballot. When someone else is not on the ballot, I got to think Texas remains reliably red. I mean, we can dream, but no, I don't realistically see Texas being in play. I think the governor, Governor Shapiro, is absolutely correct that our job is to hold on to those swing states and we can dream about Texas and keep tabs on it. But again, I feel like this is, I think we're way over our skis at this point thinking Texas is in play for 2028 in terms of the presidential race.

What are your thoughts?

Speaker 800:38:50

I agree. And my Jewish nervous system has been vindicated.

Scott Galloway00:38:54

There you go. All right. Let's move on. Before we get to audience questions, I want to check in on the state of the MAGA influencer ecosystem because the infighting is getting pretty spectacular. Laura Loomer is taking a podcast hiatus after being accused of taking undisclosed payments for political posts. And she's now feuding with other Trump world influencers over who deserves blame for the midterm losses. Meanwhile, Katie Miller is pulling the plug on her podcast as her husband, Steven Miller, takes over as White House chief of staff. The Macrons are escalating their legal battle against Candace Owens over her conspiracy theories while Megyn Kelly and Elon Musk are rallying to defend Russell Brand following his rape conviction.

It seems like there's trouble in MAGA world. What do you think is going on here?

Speaker 800:39:40

I mean, I don't know. Rushing to defend someone that's getting 10 and a half years in prison for rape by.

Scott Galloway00:39:48

10 years?

Speaker 800:39:48

I don't particularly understand. I don't know. And I can't even imagine that their followers or viewers are so incensed about this. I get that Russell Brand, you know, became a player in the influencer space, but I don't know. It just feels like a week after so many people told you to, like, essentially go F yourself, that that is not the direction that you need to be running. You know, Katie Miller needs to spend more time with her kids.

Obviously, Steven Miller is going to be, you know, has a bigger job and, you know, she says that the podcast is a lot of work. I get it. We do a podcast. It is a lot of work. I think they are trying to get out of the way a bit. And Laura Loomer is afraid. And this actually came up on my panel on Saturday about influencers taking money for political posts. I was curious what you think about it because I was on with Carlos Espina, who we've had on Raging Moderates, you know, one of the biggest influencers in the ecosystem, especially in the Spanish language space.

And he was talking about the balance between, you know, it has to be something that you believe in, but also people need to make money. So like people are doing this as a full-time job. And if there's no money associated with it, how are you supposed to, like, pay rent and eat, which was the number one issue for all of these voters? So what do you think about it? Putting aside what Laura Loomer is doing, I'm talking about with full disclosure of folks being paid.

Scott Galloway00:41:30

So what's sort of not a great reflection on America right now is that in China, the number one aspirational job is to be an astronaut or I believe an engineer. And the number one aspirational job that kids mention or teens mention in the US that they'd like to do professionally is to be an influencer. And there's nothing wrong with being an influencer. And a lot of influencers build really large communities on one or more platforms and then talk about fashion or beauty or the products they use. And these platforms have rules. And as does, I believe, the FCC that you need to disclose that you are being paid.

And, you know, people don't mind a podcast that runs ads because it's pretty obvious that this is a paid advertisement or you disclose that they're a data partner or whatever it might be. There's nothing wrong with that. The problem is.

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This week on the Unexplainable Podcast, we talked to Emily St. John Mandel, the award-winning author of books like Station Eleven, Sea of Tranquility, and her newest novel, Exit Party. She spoke with me about how she approaches her specific kind of literary science fiction.

If I'm not describing how a car engine works, why do I care about the mechanics of the time machine?

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Scott Galloway00:44:03

People don't mind a podcast that runs ads because it's pretty obvious that this is a paid advertisement. The problem is, is when listeners feel like they didn't know you were getting compensated. And I don't think people mind. I think, you know, when Howard, you know, when Howard Stern had a snapper on his desk, you know, he was open. Yeah, we're getting paid. That's fine. It's not, the problem is when it's not disclosed. But more importantly here, I think this reflects something bigger. This is effectively, you know, what's going on between the influencers on the right.

It's a food fight at a funeral. And that is the outrage economy always needs a villain and defeat kind of removes it. So the influencers are turning on each other. And the undisclosed paid posts raise FTC disclosure questions. It's just, this is a very small conflict of interest. I don't see this as that big a deal. A lot of influencers have gotten tagged and maybe had to pay a fine for not disclosing that they were getting compensated. The bigger issue here is how they're turning on each other, right?

That they seem to have, they're shooting their arrows at Democrats. It just feels for a brief time, Democrats have this pretty serious shield surrounding them. So now they're moving on each other. Everybody is pointing fingers at the other. But I think this, I would think this story kind of comes and goes. I don't think this is going to be in the news cycle very long. The more interesting one is Macron, the Macron family going after Candace Owens. Your thoughts?

Speaker 800:45:36

Couldn't happen to a nicer gal. You know, she took a wild incendiary rumor and is like a dog with a bone about it. And I go for it. Basically is how I feel about that. And, you know, she has like a very strange listener base. I think I talked to you about this, that after the 2024 election, I was listening to a focus group of swing voters, I think from Pennsylvania, and a couple of the Kamala voters, their main news source was Candace Owens.

And she's one of these completely like heterodox stops for folks. And she's very talented. You know, I think being able to do that, I wouldn't be able to, you know, talk for a couple of hours straight, you know, on my own. I certainly also, my imagination can't go to the places that hers do to invent this idea that Brigitte Macron is actually a man, no matter what pictures you might be looking at. But, you know, she certainly has a big following, very dedicated.

But, you know, if you're going to spread rumors like that and then you're not going to give it up if the law says people can move forward against you, I certainly think they have that right. And I understand why the Macrons don't think that this is something that you can just ignore.

Scott Galloway00:47:02

Yeah, this is, it really, it always amazes me when you look at the charts and podcasting, she's always way up there.

Speaker 800:47:10

Yeah, hugely popular.

Scott Galloway00:47:12

To your notion, some of the things she says are just so out there. And then she doesn't, she doesn't, she doesn't withdraw and say, okay, this isn't playing well. She just doubles and triples and quadruples down on these things. I mean, the question is, do people just find it amusing and sort of, you know, sort of tune in to like watching a bit of a car wreck? Or do they actually believe this and think she's speaking truth to power? But whatever it is, there's, she has, she has aggregated a really large audience. And also it's a monologue, as you pointed out, the majority of successful podcasts have either co-hosts or guests because there's no back and forth to fill the gaps.

So you have to give the people who do these individual monologues or, you know, I do it on Prof G of all the podcasts I do, hands down the most difficult is Prof G because it's just me. You know, you can't, some of the friction and some of the ease, I know I get on when I get on this with you with the right data that if I'm not, for whatever reason, I know that you're going to be able to fill in the blanks and that we'll create some friction between each other or some sparks, whatever it is, to fill those empty voids. She is, I hate to say this, you know, she's a talented person, but this stuff, I just, I'm shocked it's still in the news cycle.

I'll be curious, the law around, I believe defamation is you have to show malice that you generally want to hurt these people. You have to show that you know your information was false and you continue to spread it despite that. And three, that it's causing you economic harm. So this will be, but this will get a lot of attention when this case comes up. All right, let's move to listener questions. Sam asks, who do you think will actually be press secretary? Jess?

Speaker 800:48:55

I think they're going to rotate it for a long time. Honestly, some of the best briefings came from when the folks actually in charge of whatever department, like Secretary Rubio was doing it and JD Vance was doing it when at the beginning of Caroline Leavitt's maternity leave before she actually ended up saying that she was going to leave the administration. They were some of the best performing sessions and reporters felt as well that they were able to get real answers to their questions because they were asking the people in charge of it.

My worst nightmare, and I guess now that he's chief of staff, it's not going to happen, but some people were joking around about Steven Miller being the press secretary. And I would have to, at the ripe age of 42, retire from the world if Steven Miller were the press secretary. So I think, I don't think the actual Dana White has much of a chance considering what's gone on the past few days, but I think they're going to rotate for a while. What do you think?

Scott Galloway00:49:54

I think the press secretary is the president. And I don't, do you think he feels a need right now to even have a press secretary?

Speaker 800:50:03

Well, he went and did the press briefing himself yesterday and he had a great time. And the reporters have a great, they love being able to access him like that, even if he goes after you, like he was nasty to Caitlin Collins again. One thing that I brought up on Saturday and I think that we should be doing, I want a Democratic shadow press secretary where we have a briefing every day, whether that comes after what the Republicans have said or just that we know, you know, every day at 2 p.m., there is going to be a top-tier Democratic communicator telling you about what's going on in the party, what's going on with the Trump administration.

I think it would be fantastic content and help a lot of people also feel better about what we're doing. You know, if you don't like Hakeem Jeffries, how he communicates, you don't like Chuck Schumer. And I mean, we'll see now if Chris Van Holland's actually getting in and, you know, what's going to happen with leadership there. But like, let's just get a good talker where the party's full of good talkers.

Scott Galloway00:51:02

Yeah, it's, and not only that, I think it would drive the president crazy if those, if those, you know, Democratic press briefings or Democrat, Democratic responses got bigger turnout. And I think you'd actually, the thing that I've never, I've never understood about, you know, the Republican or the Democratic response to the State of the Union address is, granted, it's hard to compete with the majesty, but it feels like they're filmed in a bad conference room in a Marriott lobby. Like the production values are always really weak on them.

But this feels like an opportunity to find somebody who has real cinematic skill on the Democratic side and to have what feels like a fairly high status, you know, press briefing. And I think the bench is so strong on the Democratic side that it wouldn't be who to pick, but who not to pick. All right, Tiffany wants to know, what do you guys think about near attendant antagonizing the left? Jess, your thoughts?

Speaker 700:51:55

I feel like this is a two-terminally online question for you, especially because you're not on Twitter. So I can take it. I could ask Tiffany, what do you think about the left antagonizing near attendant? Right? This is the fight that's going on between the progressives and the moderates. You know, who had a bigger night? What was actually the impact of a Bernie Sanders endorsements? Which coalitions are getting bigger, Blue Dogs and New Dems versus Progressive Caucus? I think this is Twitter porn more than anything.

Scott Galloway00:52:29

Agreed.

Speaker 700:52:29

And, you know, Nira, to her credit, shows up. She debates Mehdi Hassan. She goes on with Sam Sader. And I think that it's important for people to want to take their beliefs into any venue. So I think everyone is trying to antagonize each other to some degree to get the clicks and the likes, but to also hash out the realities of this big tent. Last year we were saying, oh, we have a big tent. How will we make it work?

We just made it work on Tuesday night. So that's what you're seeing.

Scott Galloway00:53:06

Yeah, I think a lot of the Democrats have said correctly that, you know, blue versus arguing versus incandescent blue is just not productive at this point. And this is a moment of victory and everyone, you know, there's being a sore loser and there's being a dumb winner where you start taking your ammo and your victory and aiming it at each other. I just don't see how that benefits Democrats at all. And I think we look at the data and talk about, okay, is the, I mean, look at the mayoral race in LA. Was it a referendum on socialism or was it just a very weak incumbent?

And if you look at, as you've pointed out, the majority of the people who won, they would probably be best described as moderates. I think that's, you know, a conversation. We don't need to have an argument on the left. I mean, this is an enormous victory for the left. Biggest victory probably in half a century. And to not just sort of say, well done and high five each other, even for just a moment, to me seems very unproductive. Benjamin asks, what is Elon's new tax reality going to be in Texas? Huh.

So the question over the longer term is, and I think this would be, I think Democrats would be smart to do this in terms of proposing new tax policy. Even if it doesn't go through, I think they should propose policies that effectively outline their agenda and their platform moving into 28. But another pretty big tax loophole that needs to be closed is that Bezos or Musk can create wealth in a state, in states like Washington and California and benefit from their infrastructure, benefit from the fact that a lot of the most talented human capital ends up in Washington, California.

The fact that Californians spend so much money and energy on creating an unbelievable university system that produces some of the brightest people for technology, whether it's a great, you know, whether that's the Huskies, a great University of Washington system, obviously the Cal State, University of California, to basically leverage and build your wealth in large part. We had Governor Newsom on stage a few days ago, and he pointed out that California investors invested $350 million in tax credits into Tesla.

And then to aggregate 10, sometimes hundreds of billions in wealth and then piece out to a low tax state because, quote unquote, according to Jeff Bezos, he wants to spend more time with his father. And then when he finally sells the stock, as long as he's been a resident, and you have to be there, I think, for longer than a year, you enjoy zero state taxes versus 13.5% in California. What we need to do is what we do with options. And that is, if you exercise a capital gain on options, not on equity you get as a founder, you have to pay the tax on the amount that was accreted or when the, where the options were vested.

So if 75% of your options vested while you were a resident of California, the capital gain on those options is taxed in the state where it vested. We need to do the same thing with founders' equity or with shares. And that is, you can't or you shouldn't be able to aggregate $120 million in equity. And then as you begin to sell it after leveraging the incredible infrastructure, these high tax states move to a low tax state. I just, that loophole needs to be closed. And I also think it's going to be part of the same package where people decide to start taxing or that it what triggers a capital gain tax is when you borrow against stock, because the basic construct for how the mega wealthy get more mega wealthy is they never sell their stock.

They buy their stock or they're awarded, they were awarded their stock when they start a company and then they borrow against it to fund their life, thereby letting their capital or their stock grow tax deferred. And this is essentially, you know, a trick for getting exceptionally wealthy. And I would imagine the same package is going to say, okay, if you borrow money against your stock, you're sort of realizing a gain on that stock and it should trigger some sort of tax. But this is a structural issue around our high tax states who these entrepreneurs benefit from.

Should they not pay it, pay it backward, if you will? What are your thoughts?

Speaker 800:57:13

Not nearly as good as your thoughts.

Scott Galloway00:57:16

Go on.

Speaker 800:57:17

No, I was just going to add to it that my colleagues launched a new theory of the case of why there can't be any investigations into Elon Musk, which is he's done too much good and he has too much money. And I was like, did you not hear or see what happened last Tuesday and how people feel about the idea that the quote unquote oligarchs of our society are untouchable? That's all I got. And that Gina Iñigosa has said, you know, we're obviously going to still be fair to Mr.

Musk, but there should be no guarantees of getting to run rough shot across our system, you know, getting special deals that other folks wouldn't be entitled to. So.

Scott Galloway00:58:01

Yeah, I think Governor Iñigosa needs to be careful as to all the newly elected Republican leaders or Democratic leadership to show that the changes they want to make are structural and affect everybody, that they're not going after specific companies.

Speaker 800:58:13

Like the data stuff.

Scott Galloway00:58:14

Yeah, that's just because, I mean, there are a lot of states that would love to have SpaceX. I think she, I think she needs to say, look, we're going to look at all data center deals and make sure that they're good for taxes. We're going to look at, you know, tax policy across working with the federal government tax policy. She shouldn't probably even, I think, mention individuals or individual companies. And I think one of the, one of the real flaws of the Trump administration was he started playing favorites with companies. And look, if you want to finance or have, if you will, you know, funding for the chips industry, fine, because there is a security concern and there is national interest in ensuring that we maintain our lead in chips.

So if you were to say, okay, we're going to give $200 billion for infrastructure buildout for chips, but any chip company is eligible for that. That is, I would argue, good governance. When you say we're taking a stake in Intel, which immediately puts at a regulatory disadvantage the chip companies that don't have a stake in Intel, that's just bad governance. And I don't think the president or a governor, other than a positive light, should be talking about individuals or individual companies.

Speaker 800:59:24

No, especially if you don't want them to freak out on you in response. And obviously she had that lawsuit to be able to see Elon Musk's emails with Governor Abbott. And we talked about that when she was on Raging Moderates with us about a week out from the election. But you, they still control the DOJ and you don't want to be seen to be operating with malice or a grudge versus, you know, just wanting sunlight to be on everything.

So yes.

Scott Galloway00:59:57

All right, let's leave it there, Jess. Make sure to tune in tomorrow at 1 p.m. Eastern time, live on YouTube and Substack to catch Jess and Aaron Parnes. I'll be back on Thursday. Jess, have a great, where are we? Great Tuesday and Wednesday.

Speaker 801:00:11

Yeah, I love my Tuesdays and Wednesdays.

Scott Galloway01:00:12

There you go.

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Episode description

Scott Galloway and Jessica Tarlov discuss the growing discord within the Republican party. 

Congress is back in session for a lame-duck sprint, with fewer than 25 days to tackle a packed agenda before Democrats take control of the House. But these final weeks could get messy. Outgoing Republican Thomas Massie has initiated the process to impeach Defense Secretary Pete Hegseth, Democrats are floating impeachment for HHS Secretary RFK Jr., and Speaker Mike Johnson is already accusing voters of making the wrong choice by handing Democrats the majority. What do these developments say about the future of the Republican party?

In Mississippi, Democratic Senate candidate Scott Colom advocated for Kamala Harris to campaign in the state, against the advice of his advisors. As he appears to be headed toward an unlikely victory over incumbent Republican Cindy Hyde-Smith, Colom attributes some of his success to this choice. What does this signal about Harris’s popularity, and for her chances in 2028? 

Next, it’s time for a check-in on the state of the MAGA influencer ecosystem. As MAGA-world copes with the repudiation of Trump and his party that came on Election Day, hugely-popular podcasters Megyn Kelly, Candace Owens, Laura Loomer, and Katie Miller are either taking a hiatus, facing adversity, or even grappling with lawsuits. Are we seeing the breakup of this dominant bloc of alternative media?

Finally, Scott and Jess take audience questions on Trump cabinet predictions, Elon’s new tax reality in Texas, and more.

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