This episode of the Ezra Klein Show features an interview with Congressman Jake Auchincloss from Massachusetts, focusing on the Democratic Party's current state and potential future direction after the 2024 election. Auchincloss critiques the "Diet Coke" version of populism he sees some Democrats adopting, arguing that voters drawn to Trump's populism are unlikely to be swayed by a diluted imitation. He contends that Democrats must offer a distinct alternative, addressing the real economic anxieties of working-class voters, particularly those who shifted from Obama to Trump.
Auchincloss believes Democrats lost ground by losing touch with the cultural mainstream and focusing too much on cultural issues rather than kitchen table concerns. He emphasizes that Democrats should unapologetically stand for the rule of law, immigration, climate action, and gun violence prevention, but must also demonstrate competence and trustworthiness at the state and local levels. He believes a core economic message should be that taxes, housing, and healthcare cost less than half of voters pay, which requires tackling "cost disease."
Cost disease, according to Auchincloss, is the phenomenon where labor-intensive sectors with low productivity gains, like housing and healthcare, inflate faster than GDP. He champions the "abundance agenda," advocating for unlocking supply rather than subsidizing demand. He argues for zoning reform and modular housing construction to increase housing supply and move away from traditional stick-built methods. He admits there are political obstacles to these changes, citing interest groups and complex liberal goals (union jobs, high environmental standards, affordable housing) that can hinder progress.
Auchincloss criticizes the Democratic Party's skepticism toward biotechnology and medical device technology, arguing that these innovations are crucial for addressing cost disease in healthcare and creating a healthier future. He suggests bolder ideas like governor-sanctioned charter cities with relaxed zoning regulations to address housing shortages. He also laments the lack of focus on education in recent election cycles and calls for Democrats to apologize for school closures during the pandemic and commit to delivering educational excellence. He proposes embracing AI-powered tutoring to personalize education and move beyond the traditional factory model.
The conversation shifts to technology and social media. Auchincloss is sector-by-sector on the issues. Auchincloss is pro-biotech, offsite construction, and blockchain (for empowering creators), but revolted by social media corporations' "attention fracking." He co-sponsored the House TikTok bill but expresses concern about the lack of enforcement and the potential for the platform to be used for political influence. He highlights the concentration of wealth and power in the hands of a few tech companies and the influence of the Chinese Communist Party through platforms like TikTok.
Auchincloss proposes taxing attention through a value-added tax (VAT) on social media companies based on the time users spend on their platforms. The revenue from this tax would be allocated to supporting local journalism. Klein raises concerns about the practicality and potential for political bias in dispersing these funds.
Discussing the upcoming budget reconciliation bill, Auchincloss predicts Republicans will target healthcare funding, particularly Medicaid and the Affordable Care Act, to pay for tax cuts. He argues Democrats need a bolder healthcare vision beyond simply expanding insurance coverage, advocating for community health centers accessible to all. He criticizes the role of middlemen, like pharmacy benefit managers, in driving up healthcare costs and calls for a shift towards subsidizing the delivery of healthcare rather than just insurance.
Auchincloss supports private health insurance for catastrophic coverage, believing the government may not be able to value and price healthcare in the same way as the private sector. He also discusses the need for greater granularity in negotiations between payers and providers, arguing that the concentration of power in both sectors inhibits competition and drives up costs.
The Congressman concludes by discussing the importance of antitrust enforcement to prevent monopolies and promote a more competitive economy. He describes his vision of an economy that works like Legos, empowering individuals to build things together, rather than like Monopoly, where wealth is concentrated in the hands of a few. He says this requires confronting corporate power and promoting policies that benefit the median voter, not just special interest groups.