From: allin
The Trump Administration began with a record-breaking number of executive orders (EOs) on its first day, issuing 26 EOs, significantly surpassing the previous record of nine set by President Biden. No other president had signed more than one executive order on their first day since 1937, when the Federal Register began tracking them [00:31:39].
Key executive orders and policy directions initiated by the Trump Administration include:
Department of Government Efficiency (Doge)
The Department of Government Efficiency (Doge) was officially established [00:32:04]. Its structure involves assigning an agency head to each federal agency, with each head building a four-person team consisting of an engineer, an HR specialist, and an attorney [00:32:10]. Notably, Vivek Ramaswamy, who was associated with Doge, was announced to be leaving the initiative to run for Governor of Ohio [00:32:22].
Initially, Doge was envisioned as an entity operating outside government offices. However, in an eleventh-hour decision, the executive order establishing Doge designated it as a governmental agency [02:22:20].
Challenges to Cost-Cutting
Despite the intention behind Doge, concerns were raised about the feasibility of significant cost-cutting. Many government officials, including those entering the administration, expressed a lack of enthusiasm for cutting programs [00:19:21]. The prevailing sentiment among politicians is the need to secure more resources and jobs for their constituents to ensure re-election [00:19:46]. This incentive structure makes it difficult to vote against or cut existing programs, effectively meaning politicians would vote themselves “out of a job” [00:19:56].
An example cited was Senator McConnell’s question during a confirmation hearing for Brook Rollins’ secretary, where he inquired about a four-year delay in building a $60 million agricultural research lab for the University of Kentucky, secured in the previous farm bill [00:20:03]. This highlights the focus on securing local benefits.
There’s a prevailing opinion that major cuts will be challenging because “sacred cows” like the VA budget are now part of the discussion, making any cuts difficult [02:37:06].
TikTok Ban Suspension
The Trump Administration extended TikTok’s grace period by 75 days, with President Trump expressing a desire to negotiate a deal [00:33:40]. He indicated that the U.S. should potentially own 50% of TikTok, viewing it as a potential “trillion-dollar asset” [00:33:49]. He also expressed openness to Elon Musk or Larry Ellison acquiring it [00:33:58].
Valuation and Implications
Thomas LeFont, an investor in TikTok, provided a valuation analysis. He noted that TikTok’s U.S. operations have about 100 million daily active users (DAUs), roughly half of Meta’s combined Facebook and Instagram DAUs (around 200 million) [00:36:02]. However, time spent on TikTok is equivalent to Meta’s platforms [00:36:10]. Based on Meta’s market cap of 750 billion), TikTok’s U.S. asset could be valued at 100 billion is considered reasonable, with the potential to reach a trillion dollars as President Trump suggested [00:37:31].
Thomas’s firm had initially valued TikTok based on its Chinese business, as the regulatory environment made it difficult to assess the value of its non-Chinese assets [00:38:36].
Chamath Palihapitiya referenced the historical LVMH deal in 1984, where the French government sold a dying business (including Christian Dior) for one franc but potentially missed out on a 50% stake in its future multi-hundred-billion-dollar value [00:46:02]. He argued that if TikTok’s U.S. operations are worthless without a government permit, the government could acquire a 50% stake for a minimal price, enriching the U.S. Treasury and citizens [00:47:08]. This approach could serve as a template for future collaborations, where the government takes a royalty or stake in ventures that benefit from government incentives or land [00:49:01].
Freeberg, however, expressed concern about the precedent this sets for foreign governments taking actions against U.S. companies operating in their countries. He warned that if the U.S. demands ownership of TikTok for security reasons, other countries (like China with Tesla or Google) could apply similar rationales, potentially harming American businesses globally [00:53:39].
January 6 Pardons
The administration pardoned 1,500 individuals involved in the January 6 Capitol incident, including some convicted of assaulting police officers [00:32:41]. This action was highly controversial, with Republican figures like JD Vance stating that those who committed violence on January 6 “obviously shouldn’t be pardoned” [00:57:06].
Jason expressed strong disapproval, particularly as a member of a family in law enforcement, stating the action “betrayed the blue” [00:57:27]. He acknowledged that some sentences might have been too long but criticized the broad, political use of pardon power, rather than a granular review of each case [00:57:51]. He highlighted the danger of justifying violence by treating violent individuals (like some Oathkeepers and Proud Boys) as heroes, which could incite further aggression [00:58:37].
Chamath contextualized the pardons by citing a perceived double standard in law enforcement, especially during the COVID-19 lockdowns, comparing it to the handling of BLM and Antifa riots, and decarceration movements [00:59:28]. He mentioned the release of violent offenders who were illegal immigrants while others faced severe sentences for January 6 [01:00:15]. Chamath noted a Supreme Court ruling in June (6-3 vote) suggesting that at least 350 of the January 6 convictions should be overturned due to speculative charges or procedural issues [01:01:39]. He suggested that while the approach could have been more methodical, the pardons aim to close a chapter and ensure equal application of the law going forward [01:02:22].
Freeberg echoed concerns about the general abuse of the presidential pardon power by both parties, arguing it’s gone beyond its original constitutional intent of correcting overly harsh or unjust outcomes [01:05:31]. He referenced Federalist Paper No. 74 by Alexander Hamilton, which suggests pardons can restore “Tranquility of the Commonwealth” during insurrections or rebellions, implying they can be used for national unity rather than strict justice [01:07:16].
Ending Birthright Citizenship
This controversial executive order seeks to prevent children born in the U.S. to undocumented immigrants from being considered citizens [00:32:53]. Legal challenges are underway, with 22 state attorneys general already suing over the EO [00:33:06].
The order challenges the interpretation of the 14th Amendment’s clause that applies Birthright Citizenship to people “subject to the jurisdiction of America” [01:04:17]. This EO aims to force the Supreme Court to re-examine whether this phrase excludes children born to undocumented immigrants or those on certain visas [01:04:41].
Unleashing American Energy
The administration is focused on “unleashing American Energy” [00:33:14].
Federal Employees
The administration has imposed a hiring freeze for federal employees and mandated a full return to office [00:33:19]. The hiring freeze does not apply to military, immigration enforcement, or public safety roles [00:33:25]. Additionally, a regulatory freeze has been implemented on new regulations [00:33:29].
AI Infrastructure and Energy Capacity (Stargate Project)
OpenAI, in partnership with SoftBank, Oracle, and Nvidia, announced the “Stargate project,” aiming to invest 80 billion for AI [01:11:13].
Thomas, an investor in OpenAI, emphasized the strength of OpenAI’s ChatGPT franchise, which maintains over 80% market share and has 300 million weekly active users [01:14:19]. He believes the central question for Stargate is not the availability of $500 billion (which could be sourced through equity and debt) but whether a return on investment can be achieved at that scale [01:15:18].
Energy Implications for AI
The massive buildout of AI infrastructure will significantly increase electricity demand [01:23:44]. The U.S. currently pays 1.5 to 3 times more per kilowatt-hour for electricity than China and has half of China’s electricity production capacity [01:24:18]. China’s cost to add new gigawatts of capacity is also 1/10th to 1/5th of the U.S. cost [01:24:30]. Historically, U.S. investment in its grid halted around 2000 due to deindustrialization and outsourcing [01:26:00], while China’s capacity has surged (from 1,000 terawatt-hours in 2000 to 9,000 terawatt-hours today, compared to the U.S.’s 1,600 terawatt-hours) [01:27:27].
A Biden Administration EO last week aimed to permit power plants on federal lands for AI data centers, but included environmental and DEI conditions [01:27:44]. President Trump’s administration is expected to overturn this, prioritizing energy production regardless of source, which is seen as crucial for the U.S. to compete in the AI race [01:28:13].
Nuclear energy is highlighted as essential for the U.S. to catch up [01:28:26]. While U.S. nuclear capacity has been flat for over 25 years [01:30:08], China has significantly increased its nuclear capacity [01:30:27]. New Gen 4 nuclear technologies are considered safer and more efficient than older designs. France, for instance, generates over 70% of its electricity from nuclear power [01:32:02]. Removing regulatory roadblocks is seen as the primary factor to accelerate nuclear plant construction, which is deemed a national security threat comparable to border issues [01:33:35].
Recent Executive Orders (Announced by David Sacks)
David Sacks, in his return to the podcast from the Oval Office, announced three new executive orders [01:51:35]:
-
Crypto EO: Forms an internal working group chaired by Sacks, with the head of the SEC and the Secretary of the Treasury, aiming to make the U.S. the world leader in crypto [01:51:46]. The group will identify and recommend actions for various agencies [01:52:26].
- Chamath believes that a stockpile of crypto and a set of stablecoin rails for instantaneous and costless payments would enormously accelerate GDP and cut fraud [01:48:56].
-
AI EO: Rescinds the 100-page Biden Administration’s AI executive order, which was deemed “unnecessarily burdensome” [01:52:41]. The new EO aims for “global dominance” in AI and directs the creation of an AI action plan [01:53:15]. This plan will be led by the National Security Advisor (Mike Waltz), the director of the Office of Science and Technology Policy (Michael Kratsios), and David Sacks [01:53:30]. It also emphasizes preventing AI models from being “ideologically biased” or “woke” [01:54:50].
-
PCAST EO: Establishes the President’s Council of Advisors on Science and Technology (PCAST), co-chaired by Sacks and Michael Kratsios [01:53:59]. This council will assemble top science and technology minds to advise the president, with language supporting a return to “truth-telling in science” and moving away from “woke science” [01:54:35].
David Sacks characterized the new administration as an “open platform” for business and innovation [02:22:01]. He described the inauguration speech as consistent with President Trump’s campaign promises, reinforcing his mandate after winning the popular vote, seven swing states, the House, and the Senate [01:58:31].