Senator Ted Cruz | The All-In Inauguration Series

19 Jan 2025 · 48 min

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Podcast Summary: All-In with Chamath, Jason, Sacks & Friedberg

Episode Title

Senator Ted Cruz | The All-In Inauguration Series

Episode Overview In this episode of the All-In podcast, hosts Chamath Palihapitiya, Jason Calacanis, David Sacks, and David Friedberg welcome Senator Ted Cruz to discuss various topics, including Texas vs. California entrepreneurship, immigration policy, political strategies, and more. The conversation takes place against the backdrop of Donald Trump's inauguration as the 47th president of the United States.

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Key Topics Discussed

  1. Introduction of Senator Ted Cruz
  2. Brief discussion on Cruz's Texas boots featuring the Senate seal and the "Come and take it" flag.
  3. Historical context of the "Come and take it" flag linked to Texas' revolution against Mexico.
  1. Texas vs. California: Building and Entrepreneurship
  2. Cruz highlights the freedom, low taxes, and minimal regulations in Texas compared to California.
  3. Discussion of the cultural differences between business perceptions in Texas and California.
  4. Entrepreneurs in Texas are celebrated, contrasting with California where business people often feel marginalized.
  1. Immigration Policy
  2. Cruz outlines his views on immigration: "Legal good, illegal bad."
  3. He discusses the importance of bipartisan consensus on immigration reform.
  4. Reflects on the historical amnesty in 1987 and its long-term effects on California's political landscape.
  1. Political Climate and Partisanship
  2. Concern over the increasing polarization in politics, where dialogue is often replaced by tribalism.
  3. Cruz emphasizes the need for constructive conversations to bridge divides and address issues collaboratively.
  1. Trump's Administration and Policy Directions
  2. Cruz outlines potential actions for Trump's second term, focusing on:
  3. Securing the border and ending catch-and-release policies.
  4. Reducing regulations affecting the energy sector.
  5. Proposing tax cuts and extending tax cuts from 2017.
  6. Discussion on the implications of executive orders and how they can shift political dynamics.
  1. Healthcare and Socialized Medicine
  2. Cruz critiques socialized medicine models in other countries, citing practical obstacles.
  3. Highlights the inefficiencies within the current U.S. healthcare system exacerbated by government involvement.
  4. Advocates for policies that empower individuals rather than create dependency.
  1. Immigration and Economic Needs
  2. Discussion on better aligning immigration policy with economic needs, suggesting a data-driven approach to workforce needs and immigration quotas.
  1. International Relations and Strategic Acquisitions
  2. Cruz shares thoughts on Greenland and Panama, discussing the strategic importance of these locations.
  3. Calls for a serious discussion with Denmark regarding Greenland's status and potential investment benefits for the U.S.
  1. Senate Confirmation Hearings
  2. Cruz expresses satisfaction with the array of cabinet nominees, noting their potential as change agents within the administration.
  3. Discusses the political dynamics surrounding confirmations, including the importance of bipartisan support.

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Key Takeaways

  • Entrepreneurial Culture: Texas's thriving economy is attributed to its cultural embrace of entrepreneurship and innovation, contrasting sharply with California's regulatory environment.
  • Bipartisanship in Immigration: A call for a unified, bipartisan approach to immigration reform that considers both security and economic needs.
  • Political Polarization: The detrimental effects of political polarization on constructive dialogue and policy-making in Washington.
  • Strategic National Interests: Discussion of the geopolitical implications of acquiring territories like Greenland and re-evaluating agreements such as the Panama Canal management.
  • Healthcare System Critique: Highlighting the inefficiencies of socialized medicine and advocating for market-driven solutions that prioritize personal responsibility and access.

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Conclusion The discussion with Senator Ted Cruz provides insightful perspectives on the juxtaposition of Texas and California's entrepreneurial landscapes, the urgent need for immigration reform, and the complexities of U.S. domestic and foreign policy. The episode emphasizes a need for bipartisan cooperation in tackling pressing issues and re-evaluating the role of government in economic and social landscapes.

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Transcript

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0:04Hey everybody, welcome back to the All In podcast. We're here at the inauguration of our 47th president, Donald J. Trump, and we have a very special guest joining us on our coverage, Senator Ted Cruz, from the great state, now my great state of Texas. Welcome to the All In podcast. And welcome to Texas. It's pretty great. Where'd you get the boots? Any chance I can get a recommendation here? So that's easy. These are look as he look as he the factory is in El Paso their handmade there. They're beautiful Okay, and and these particular boots the front of them have the Senate seal on them. Oh, that's strong And the back of that's really great have the come and take it flag Whoa, which I don't know do you know the history of the come and take it?

0:49I was about to ask you okay since you're new Texan. This is important. He started saying y 'all so he's adapting but he needs to learn Y 'all gotta start giving me a hard time about that. All right, so Texas in the 1820s and 1830s, we were part of Mexico. And the dictator of Mexico was General Santa Ana. And there's a little town in South Texas called the town of Gonzales. And then General Ana sent an order to the Texians, which is what we were called back to, the Texians, to hand over their guns. And there was a cannon that guarded the city. And General Santa Ana said, hand over the cannon. And the Texians responded by making a flag with an image of the cannon and underneath that the legend come and take it.

1:33Wow. And they flew it over the town and that was the beginning of the Texas Revolution. Now the epilogue is Santa Ana came in with about 6 ,000 soldiers and he did in fact take the cannon. I mean Gonzalez was a tiny little town and the Texas Revolution was very much like the American Revolution. We lost every damn battle. The Alamo was a slaughter, Golyad was a slaughter, much like Washington, where every battle he lost and lost and lost. And then at San Jacinto we won, defeated Santa Ana, General Sam Houston. And we became our own nation, the Republic of Texas, from 1836 to 1845. It says something about resilience, he doesn't?

2:08It does. Let me ask you a question. Having lived in New York and grown up there, and then done 20 years in California now, my second year in Texas or starting my second year. It's amazing to me that you're allowed to build things in Texas, like homes or factories. And the price of homes has gone down two years in a row. And then the other two places I live, the price of homes go up every year, 10, 20%. And then you don't have state taxes. How is all this possible when you look at it just from first principles? How are you able to accomplish so much development in Texas? When in California, the Nimbism, like literally if you want to build.

2:52Yeah, that's a great question. A cancer word for children, they'll stop you because it throws shade on a protected species of flour. So California used to know the answer to this. Fifty years ago, California was the economic engine of the country. And unfortunately, you're cursed by idiot politicians who were destroying this mighty economic engine. You know, none of this is rocket science. In Texas, we believe in freedom. We believe in low taxes and low regulations. And to understand the state, Texas was basically founded by a bunch of wildcatters who were guys with fourth grade educations that began drilling holes in the ground.

3:32And one after the other became the richest men on earth. And the ethos of Texas, you know, it was interesting, a number of years ago, I was visiting with a CEO and an executive team of a company that had moved from California to Texas. And they didn't have any Texas ties, but they were just fed up with California. They moved to Texas, and so I was asking them, they don't have only been in Texas for a couple of months. I said, all right, what's the biggest difference? And I thought maybe they'd say Texas or maybe regulations or maybe lawsuits. Those were the three things I was going to guess. Their answer blew me away.

4:05They said the biggest difference is the culture. And what they said is in California, if you're in business, you're a pariah. They said, look, there's an exception for tech and an exception for Hollywood. If you're not in it more. Well, that was their view, but they were not in tech or Hollywood. They were in sanitation, which was not a sexy business. And the way they described it, they said, if you're at a party and someone asks, what do you do when you say I'm a businessman? They said, people, turn around and walk away. And I gotta say as a Texan, that is weird. I mean, we lionize entrepreneurs.

4:38California was a pioneering state. The gold rush, what happened? Because it's always easy to blame idiot politicians, but in a democracy, those politicians are elected by the voters. So something, where did the voters go that caused this change in that state compared to where the voters went in Texas? When they both came from, and all of America, all the United States, all the states of the Republic came from a pioneering origin. Well, there is a cause and effect, and you go back to 1987, and 1987 is when Ronald Reagan signed Amnesty in the place. And at the time, there were three million illegal immigrants living in the United States.

5:18And Congress went to the American people and said, all right, we got a deal for you. We're going to secure the border. We're going to fix the problem of illegal immigration forever. And in exchange, we're going to give Amnesty to the three million people who are here legally now. And in 87 the American people said, okay, that sounds like a reasonable deal, they took the deal. Now we now know what happened, which is the amnesty happened, but the border never got secured. What did that mean for California? The highest concentration of illegal immigrants was in California. In 1988, California voted Republican in the presidential race as it had for six consecutive years, six consecutive cycles previously.

5:591988 was the last year California ever went Republican. Both the shorts and egg are for president. Oh, for president. In the presidential race. And so I think the Amnesty Law played a significant part, the federal law changing the voting composition of the state. Yeah. And then, and look, you guys would know the state politics more, but it also seemed to me that you have the public employee unions in California that realize that they could vote themselves more and more of the large S and feel on the politicians. You don't have a failure of democracy, right? And it - So Jason brought up a really important question to kick this off.

6:37I just want to give you a chance to maybe expand on it, which is there are so many examples Texas is one. You can look abroad, the UAE as an example is another, where there's a high degree of quality of infrastructure and, you know, civility, social services, education, security, but you don't have the traditional taxation. And so how is Texas able to actually keep the $322 billion budget is just completely falling apart. How, what is, what, what happens? Because you then see everything at the federal level, but when you go back to your state, you see, hey, we don't have, and your real estate taxes aren't that much higher, are they in California?

7:29The real estate taxes are a little bit higher, but we have no income tax. So it more, or they're makes up for it. Yeah, yeah, that's the first and one and a half to pay. That's the principal avenue of taxation. You got real estate taxes and sales taxes or where the state and local governments get their taxes. But no income tax. Look, some of it is, government does less. I mean, there's a philosophy that government doesn't have to spend and provide everything government does police and firefighters and roads and does the basic responsibilities of government. But it's not engaged in funding every pet project of every politician.

8:05That's part of it. You know, you look at across the country, I mean, it is not a complicated migration pattern. That people are fleeing bright blue states with high taxes and high regulations. And they are coming to red states with low taxes and low regulations. Any safety. So we've had, it has now been more than a decade that we have had over a thousand people a day moving to Texas. So when I was first elected 13 years ago, we had 26 million Texans. Today we have over 31 million Texans. So we've added 5 million Texans in 13 years. And the biggest state folks come from is California. It's interesting the migration pattern.

8:49You get a lot of California to Texas. New Yorkers tend to go to Florida more. We get some New Yorkers, but for whatever reason, West Coast folks seem to prefer Texas, and East Coast folks seem to prefer Florida. But I actually think the competition in terms of where we lose people too. We lose people either to Florida or Tennessee. Those are about the only two places if someone's thinking of leaving. And I love that competition. I want Florida and Tennessee to be out fighting and saying we can create an even better environment for small businesses and jobs. And part of it is the number one reason people come to Texas is Texas where the jobs are.

9:26And you want an environment where you have small businesses that are doing great, but people also want to be safe. And so, you look at things like defunding the police or sorrows prosecutors that let murderers go. Yep. And that gives people a pretty acute incentive to get the heck out. We were involved in the recall of Chesa Boudin, our podcast, and David Sacks, our compatriot who couldn't make it. He's busy working with you guys. Yep. But yeah, this crime issue seems, people have seemed to lost, They seem to have lost the script on who the state is working for, the taxpayers or the criminals.

10:05In Texas, it's just extraordinary that you've figured out that you could prioritize the people not committing crime and not cater to the people committing crime. I'm saying this in the most facetious way possible, but it's just common sense. I think it feels to me like Californians have had enough and it's just going to take a decade or two to unwind it. But let's double click on immigration since the great state of Texas has to deal with this more than anybody. But this is a land of immigrants. We are all immigrants on this land. And so that's our tradition. In fact, you're sitting next to two extraordinary immigrants, my besties, Jamal, and Freiburg.

10:42What do you believe at this point in time? Is America for the Americans or here? Would you believe we should be getting the best and brightest to come to this country? Look, absolutely both. I have for a long time described my immigration views in four words. Legal, good, illegal bad. Okay. I think most Americans, most Texans agree with that. And most immigrants. Look, there's a right way to come to this country. There's the way you came to this country. There's the way my dad came to this country. My dad was born in Cuba. He grew up in Cuba. He fought in the Cuban Revolution. When he was a teenager, he fought, was thrown in prison.

11:18and he was tortured when he was 17 years old. And he came to Texas in 1957. He was 18, couldn't speak English. Had $100 in his underwear and he washed dishes making 50 cents an hour. But he came legally because he had applied to the University of Texas. He'd gotten to, and he came on a student visa. And he was an 18 year old freshman. And he started going to school here, and he came legally and he worked. And got a job and went on in time to start a small business and worked for him. You see your success, is he still with us? He is, my dad is 85. Oh my God, what a dream for him. He is my hero, it is.

11:53He's an incredible, I will say, when you have lost freedom, it's personal to you. You know, people ask sometimes, you know, why do you do politics? And I grew up as a kid, I would sit on the floor, along with my cousin, BB, with my dad and BB's mom, my Thesonia. And she also, she was also in prison in Torture and Cuba. And we would sit and listen to them tell stories. And all I ever wanted to do from when I was three, four, five years old was be a freedom fighter. I mean, it's inspiring because what they said and still say, and they're both still going strong, is look, if the only thing that prevents us from tyranny is having good people in office who will fight for our freedoms.

12:45And so, I gotta tell you today, I literally jump out of bed every day because I look at the US Senate and I think it is basically the Roman Coliseum. And you strap on, you snarmer and you grab a battle ax and you go fight the barbarians. And that is an amazing opportunity. I feel blessed and fortunate every day. You think it's become, we were talking with Rho Conna, Congressman from California earlier today. And we talked about how there might be good policy put forth by one of the two parties. But the other parties' intention is always to get more seats, get more attention, get more votes, and hurt the other party.

13:28So we end up having conflict over policy. Do you feel like there's too much of that in DC? And a lot of people talk about the, everything has become too politicized as opposed to, you know, I always think about the show. I love the show The West Wing. and he always talks about the great debate. We never have the great debate anymore. We don't talk about the fundamental policy decisions. We talk about the Republicans said this and so on so it gets personal and it gets political as opposed to like let's all take our hats off and talk about what's the right thing for the country. Doge being a great example of my opinion but I'd love to hear your point of view on how things operate in DC today.

14:00Well listen, I agree with your point at the outset which is that we need to talk to each other. I worry that we are too polarized and tribalized. The left only listens to left wing media, the right listens to right wing media, anyone who disagrees, you scream at them, the sense of community that we used to have has been badly unravelled on social media if someone disagrees with you and friend them. We're all in this little echo chain. But we're all patriots. It's the sad part. All Americans. All Americans. But we're living in alternate realities. And so look, what y 'all are doing is really important.

14:41I'm grateful for this podcast. We got to talk to each other. I do a podcast every week called Vertic with Ted Cruz. We've got about a million unique listeners that listen to the Vertic podcasts. And we do it Monday, Wednesday and Friday. Every week my podcast is beating CNN. Yeah, it's incredible. And I think the reason is the same reason people listen to you guys because you're actually talking about issues And you're not just screaming at each other, you know, it's it's not Jerry Springer. Go grab a chair and fling it at somebody But it's have a real and substantive conversation and I'll tell you one of the things that I've done and enjoyed is I've taken the Podcast on the road to college campuses and so what has happened like well for example we did want it at Yale a couple of years ago and had about 700 students come out and I didn't know how the reaction would be and interestingly enough about a third of the students were left of center and I know that because it was right after Kataji Brown Jackson was confirmed and I made a reference to that and about a third of the room began sharing and I stopped and I said hey look the fact that you're sharing it that shows that obviously we're coming from different places on political spectrum.

15:52I said, I want to thank you especially for coming here, because you may not agree with me on everything or even most things. But thank you for coming and being part of a conversation. And so we did about 90 minutes of all Q &A. And we had a rule we said, if you have a hostile question, if you have an antagonistic question, come to the front of the line. And we spent 90 minutes having a real conversation. Afterwards, I I went out with an orthodox rabbi on campus. And we got a drink and he said, Ted, I've been working on Yale's campus for decades. He said, this is the biggest group of students I've seen have a positive, civil, constructive conversation on conservative ideas.

16:35He said in 20 years. There's something about the podcast format where you're taking a little bit of time. You're not rushed in six or seven minutes like you are on the weekly shows where I see you all the time. And that's sparring. Yeah, and you're just trying to get a message out in three minutes, five minutes, but here, you know, you can open it up, maybe listen to each other, invite guests in with different opinions, learn something. With the, specifically with the immigration issue, which seems to be the one that's tearing us apart a whole bunch, there's so much consensus. Hey, we want the board of clothes, we want it legal, but we also want to bring in a certain number of people and we want a system.

17:08And, you know, I did my research on this and places that have consensus like Canada, Japan or Australia, New Zealand, just they seem to understand that you need to match immigration to the reality of unemployment and which jobs you need. But one criticism I have of politicians, which I think you're one of, is - Sadly guilty of charge. Yeah, you all don't talk about it in numbers. We need this many nurses, we need this many doctors, we need this many construction people, we have 4 % unemployment, record, great job to our politicians and helping that out, you know, we can bring in two million people this year.

17:46Hey, if it goes up to 5%, we're going to bring in 1 .5. I wish that the discussion could be more granular and with numbers. And you guys could actually say, it's not 500, it's 450. Because if we were in a business decision here and we do business together and we say, hey, we have to deploy these resources to get this outcome. But it's so contentious and polarized and not fact and number based. Why is that on this issue that you guys can't just put some numbers on paper? So, well, look, there are a lot of numbers that matter intensely. Let's start at one where you talked about low unemployment.

18:17As you know, that number can be deceptive because we also have among the lowest labor force participation we've ever had. 62 % right now. And so there are millions that have just dropped out of the labor force altogether. They're not measured in top line unemployment, but it's still a real challenge. We have healthy young adults who should be working who are not working. Why aren't you in your mind? Is it because they have the resources to not do that? Look, I think it, and I think it varies state by state, but I think when you have a welfare state where you get paid for not working, people end up not working and the statistics are really crushing that if anyone doesn't work for a year, the odds of they're going back to the workforce drop precipitously.

18:59That once someone gets the habit of dependency, I've said a bunch of times, you know, I try to think of every policy from the perspective of easing the means of a cent up the economic ladder. And I think about, you know, my dad, when he was a teenage kid in Austin washing dishes, thank God some well -meaning liberal didn't come to him and say, Rafael, let me take care of you. Right, totally. Just stay home. Let me send you a government check. Don't work so hard. And it's utterly destructive. It breaks your self -respect during individual responsibility. But it comes from an empathetic play center.

19:38So, and I know this, like in kind of a liberal setting, you see people in need, you want to help them, and you use government as a tool to help people in need. And the fundamental issue is that in many cases, that creates an incentive model that makes it very difficult for that solution, for that situation to find a solution on its own, a market solution. And over time, it gets bigger and bigger and bigger, and you have cascading effects that I believe we're now realizing in this country with what I estimated somewhere between 40 to 50 percent of people that are employed in this country employed by government or government service providers.

20:13And you're right that much of it is not from ill will. But we do need to have a real conversation about what works to lift people into prosperity. And by the way, all of us know this in our own life. If you're a kid, let's say you have a kindergarten who's struggling with math. There's not a one of us who would do our kids' math homework. We know that's not helping them. That if your daughter doesn't learn to do arithmetic, it's going to hurt her for the rest of her life. So you've got to work through that problem with her. Even if it'd be easier for you just to finish it for you. We know that in our lives.

20:48The old adage of give a manifest you feed them for a day, teach them to fish you feed them for a lifetime. We know that with people we love. But yet when it comes to public policy, you have a lot of people who don't think about it more broadly. I'll say back in 2017, I did three different CNN town hall debates with Bernie Sanders. And listen, I like Bernie because he is an ontopologetic socialist. And I'm an ontopologetic capitalist. And we had 90 minute town hall debates on which system was better for maximizing human prosperity and abundance. Yep. And we didn't insult each other, neither of us called each other a son of a bitch.

21:29We talked about the facts and I'll point out something, let's take socialized medicine. It's interesting, the advocates of socialized medicine, when I pointed out all of the problem socialized medicine produces in every country in which it's been implemented. The United Kingdom, Canada, Bernie's answer was, well, there wouldn't be that way here. So the reality would not be here. Every year about 50 ,000 Canadians come to America and what they call medical tourism because they can't get the medical care they need in Canada. And I will suggest to you a question, particularly for those of you all that are Californians, that I love asking advocates of socialized medicine.

22:08Why don't California adopt it? You've got a Democrat governor. You've got a Democrat supermajority legislature. There's no constitutional impediment. California could adopt socialized medicine today. It's not the mean old Republicans that are stopping them. And as you know, the legislature looked at it and realized it would bankrupt them. By the way, Vermont, Bernie's home state, they could adopt it. And the reason you don't see California and New York or Illinois or Vermont or any blue state in America adopt socialized medicine. It wouldn't work. It wouldn't work and people would flee their state.

22:40And so their answer is, we want to do it to everyone in the entire country so you can't unless you're willing to leave America, you're stuck. And I think what's challenging, Senator, is that then you have compromises that get you to a point where the federal government has a big enough role in healthcare. My opinion is much of the inflation in healthcare costs arises from the federal government's role in the same way that the federal government has a role in student loans that has driven up the cost of education and the federal government has a role in providing loans for housing has also driven up the cost of housing.

23:10Education. Education across the board. It's a free mark. But the empathetic solution is we need to provide access to those who can't get it. And then at the end of the day, it inflates the cost of all of those services. And ultimately, the quality of the services arose. And I'll give you the anecdote real quick. My brother lives in England. They just had a child, he and his partner, and they went to the delivery room and they couldn't get a bed for a late, she was in labor. They could not get a bed to have the baby. I think it took them 36 to 72 hours to actually get into a bed while she was in labor.

23:39It was the most insane. He's calling me, you can't get a bed. It was, I'm like, you're living in the friggin' UK. This is supposed to be one of the wealthiest nations on earth. That's the outcome of socialized medicine and along the way You get the inflationary effects that we're dealing with in the United States today. I'm with you on Let's say you're the quarterback. Okay, quarterback the next two weeks of the Trump administration Well on Monday, we're gonna see a flurry of executive orders. I think it'll be in the neighborhood of 100 executive orders I'm a hunter at them. That's the number they're talking about.

24:10Wow it it it's going to be in that neighborhood shock and i and i actually i'm i'm pretty happy about that now look well i agree with all one hundred i don't know i'm i guess is all agree with the vast majority of them but i don't know everything that's in there so we'll see and in some ways it'll just make it almost impossible for the democrats to react because where do you focus yes and and and jamaul that's actually a point you know i think back to so my wife hidey and i met on the two thousand and George W. Bush campaign. And so we both served as young people in the Bush administration. And I think there is a quantum of outrage.

24:47And I call it the arsenic quantum of outrage. If you remember the beginning of Bush 43, one of the first things he did is his EPA revoked a rule on arsenic. And for like six weeks, the media saturated the airwaves with the evil Republicans want to poison our children with arsenic. And I mean, it was it dominated forever and they'd be the living daylights out of it for. Now look, Monday when you get 100 executive orders, I think that's how much outrage there is and that arsenic quantum of outrage will be directed at everything. It smeared, which makes it very hard for them to oppose anything coherently and directly and gives an opportunity, I hope, for this administration.

25:31what I'd like to see is really delivering on the mandate of this election. The outcomes in November were there. If you had to distill what are your specific takeaways as the mandate? In priority. So number one, secure the border. And I believe that'll start on January 20th and it will start by ending catch and release so that when people are apprehended they are detained and they're sent back to where they came from. Yeah, I think that will be followed up by going and arresting criminal illegal aliens going and arresting murderers and rapists and child molesters and gang bangers. I think all of that will roll out very very fast.

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26:10I think there is also a mandate to end the federal government's war on energy on Texas oil and gas. And that will lower prices at the gas pump at the grocery every bill people are paying. And I think if you look at the top two issues in this election, it was illegal immigration and safety, and it was inflation in the economy. I think we will also see a lessening of the job -killing regulations on small businesses. Say, return to thriving booming economic growth. What would those be? I look, there are host of them. Energy is the easy example where the the Biden administration's put in over 90 different regulations and executive orders all designed to drive up the cost of energy.

26:58Right. So the input gets higher and everybody suffers. And so I expect pretty much all of those to be revered. Hydrocarbon. And then subsidies for, quote, green energy. Look, I think on energy we ought to pursue all of the above. Beyond that, I think there is also a mandate on the economic side. The 2017 Trump tax cuts are expiring this year. We're going to extend them. My hope is we make them bigger and bolder. That's going to take some time. We'll do that through what's called the reconciliation process. And then on foreign policy, I think under Biden, we have abandoned and alienated our friends and we've shown weakness and appeasement to our enemies.

27:42I think that will stop on Monday as well. Senator, you just said five things, but what you didn't say was doge. So cutting taxes, there's an inflation problem. There's no way you're cutting taxes and not cutting government spending and not tampering inflation down. Don't we have to cut federal spending? How important is doge? How real is it? Is it a marketing gimmick from your point of view? How much can actually be done? Is it a real, is this kind of require legislative authority and it's going to be a longer -form process or is there going to be a lot of very quick action? So, and I'm happy to answer that directly.

28:16Let me just say one thing you just said there with respect is incorrect. Yes. You said there's no way we're cutting taxes and not cutting spending and having inflation stay down. And I just say that's objectively false because that's exactly what happened in the first trump term, which is the 2017 tax cuts. CBO had these apocalyptic project. Or just about. You're saying tax revenue went up as the economy grew. Tax revenue went up every single year. After we cut the taxes, the revenue from the federal government went up. We cut taxes. Sadly, we did not cut spending. I tried mightily to cut spending, but we did not have the votes to do it, and inflation still stayed down.

28:58But if the economy is booming, you can turn things around. Look, doge. But is there a deficit mandate? So I am excited about Doge. Elon is a good friend. I admire the hell out of him. I'm thrilled that he's a Texan. You know, I've joked with Elon that he doesn't just think outside the box. He doesn't know there is a damn box. That's a great thing. Now, Elon calls me periodically going, all right, what the hell is this government thing? How does this work this way? And I'm trying to give whatever guidance I can on that. but I think how you deal with a disruptor in government is going to be an interesting challenge.

29:42Vivek is very smart, very creative. I will say a couple of challenges. Right now, look, I'm excited about Doge. I want to see some big bold creative ideas. I'm going to give you two warning signs. Number one, the phrase waste fraud and abuse. Anytime someone talks about waste fraud and abuse, they don't really want to cut government spending. You know why? Because there is no waste fraud and abuse caucus. There's no one that says, I'm for the waste. So it's the easy place to go. We'll cut the waste. If you actually cut real government spending, there is always always always a constituency who's pissed off who likes the thing they're getting.

30:23Totally. And so you have lots of politicians. They're going to lose their votes. Right. Somebody will be mad. That's right. And so that is a challenge. I will say secondly, at least in the first term, Donald Trump did not campaign as a small government conservative and he did not govern as a small government conservative. And in fact, I will relay a story at the end of the first term. You remember we're in COVID and the government is in the business of sending out checks and more checks and more checks to people all over the country. And Trump wanted the checks to be even bigger. And a lot of the folks in the White House, they asked me, they said, Ted, can you go try to talk him down from this ledge?

31:06Yeah. That's a tough job. So I went on Air Force One, and I'm sitting there with the President, and I'm trying to make the case that we don't need these gigantic stimulus checks. And he goes, Ted, and he gets the back of the hand. He goes, Ted, no one ever lost an election by spending too much money. I said, yeah, but they did bankrupt a country. So I did not succeed then. Well, you know what you should have done. You should have asked them to keep the same number, but just make the check larger and the signature bigger. That's a good idea. I look out. I'll go with it. He likes big. Are you a small government conservative?

31:39Very much so. And what percent, if no one was going to be able to run for re -election, what percent of Congress do you think would support a massive reduction in government agencies? How much of this really is driven by this kind of I got to get reelected so look it's it's a good question What I what versus what my principal tell me yeah, listen I am also a passionate advocate of terminals so I have introduced In every Congress a constitutional amendment that would limit senators to two terms limit house members to three terms Yeah, I think turn limits would change that dynamic in a very significant way and the career politicians in both parties opposed Look on any big spending bill You unfortunately have a bipartisan coalition in favor of spending.

32:23You have essentially all the Democrats and about half the Republicans. There are about 20 of us who will vote against a trillion dollar spending bill. And we are frequently begging our colleagues. And to be honest, I don't think we will ever see real spending restraint without strong presidential leadership, which means it will never come from a Joe Biden or Kamala Harris. And look, if Elon and Vivek convinced President Trump that he's going to lean in aggressively on, on cutting spending, great, but that hadn't happened. So what would it take for the voters to eventually get there? Because it would require the voters backing a candidate with that message.

33:02And it seems like no one sees that because what everyone sees is I want to get X. And the only way I get X is if I get the government to do X for me. Yeah, look, it varies. It takes electing strong leaders. So, elections matter and I engage, so I think I've probably campaigned for more candidates for Senate, House and Governor's ship than any Republican in the country. I mean, I travel all over the country, I endorse candidates and I follow the old Bill Buckley rule, which is I support the most conservative candidate who can win. And that varies. Look, a candidate who can win in Texas is different than a candidate who can win in Yeah, right and and so But but I can say the problem is you get I can tell you in Texas.

33:45I mean when I ran 2012 I ran for Senate I Never been elected before. Yeah, never been elected to nothing Yeah, literally the last thing I was elected to was student counts By the way, Chamauth you may not remember this you actually wrote me a check that I was gonna tell But look it up. We looked it up. Just we were together in Utah. Yeah Peter Teal had an event or he does this thing And we had a breakfast and Ted was surrounded by sort of a handful of us who were speaking to him and then what I would say is like every traditional Democrat from Central Castle. And he went through the firing squad and he came out the other side and I thought wow, this is really great.

34:29And so then I was very happy to donate. Well, I was, you were a damn donor back then. I was a damn donor. But I would, but see if here's a thing like, and I think what you're getting, what I think what the Senator speaks to, which is what I agree with is ideology matters and so when you make decisions about how you think the country should run You should stay loyal to that and I think what happens instead is People stay loyal to a party. Yeah, and it's the minute you do that that the whole thing breaks And this is what's broken and I think what the great thing that Donald Trump did was he basically conducted a hostile takeover of the Republican Party undoubtedly and then that is going to be submitted to Buku and that's the most important thing that happens I mean you don't have to go reset you don't have to go and kick the Kochs ring what will they say what will all the sorrows brought to say what does Soros say all of that is done the whole things flipped over a senator you that's very powerful if you had an anecdote from me tonight to go I don't know if you're willing to share it about a conversation regarding Denmark and Greenland Do you want to tell us what you think?

35:33So happens here. Look my view on Denmark and Greenland, so I did a podcast two weeks ago on Denmark, Greenland, and Canada. I did all three of them on my verdict podcast. And I put them in a spectrum. Let's start with Canada. I think the president's Canada remarks, we're just trolling. I think he was just screwing with Trudeau. I think he was sitting at the table and just, you know, why are you even a country? You ought to be a state. You should be a governor. Some of the night I send J. Caltechs like that all the time. I love that. You know, I would have paid frankly to be sitting at that table.

36:05In fact, see Trudeau's face. In fact, look, it was reminiscing if you remember the 2016 campaign on the debate stage, where Trump turned Rand Paul was at the end, and he's like, why are you even on this stage? And what is it with your hair? I mean, it was the same sort of comment that we're just messing with him. Yeah. But I put that in one, and by the way, that may be the most epic troll of all time, because I think that literally pushed true to resign. What's true? Crazy, huh? I mean, it's a fairly... Why would he do that go to Mar -a -Lago? I mean, such a stupid thing to do. He just should have been like, yeah, we're our own sovereign country banks.

36:42Well, he was already... I think we... He likes to go with the trend, so that was the trend. Yeah, that's what happens. You're not a weatherman. I will say I couldn't resist tweeting and said, you know, Trudeau's lasted really long for a son of Fidel Castro. Yeah. I wish. Oh wait. It's close to home. I mean, keep telling us about. All right. Okay. Democratic control. Yeah. Democratic Greenland. Greenland, on the other hand, I think is a very serious policy, and I think there are, you know, Trump mentioned this in the first term and a lot of people dismissed it. Oh, this is just Trump talking wacky.

37:14Yeah. But I think there are enormous national security and economic reasons why acquiring Greenland makes a ton of sense. And you look at Greenland's location on the Arctic. It has incredibly prime location on the Arctic. If from a national security perspective, God forbid we ever get in a shooting war with China or with Russia. ICBMs are coming right over the Arctic. And Greenland is a prime location to deal with that. We're also seeing more shipping lanes coming in and around the Arctic. and China and Russia both competing for prized, prized access there. Greenland makes an enormous sense from that perspective, but also makes an enormous perspective from critical minerals and rare earth minerals.

37:59They have vast amounts. And so what I said is, look, I think we should pursue this seriously. I'll tell you how to conversation this week with the Danish ambassador to the United States. And look, Denmark's a little freaked out by all this conversation. And I'll tell you what I told the ambassador. I said, listen, Denmark is our friend, your ally, you will continue to be our friend in ally. But friends in allies can have conversations. We can have, and the ambassador said, well, Greenland's not for sale. I said, that's fine. Everything's for sale. We're gonna have a conversation. And by the way, if you maintain that, one of the things this has produced is a growing independence movement in Greenland.

38:38And if you do nothing, you may end up getting nothing for Greenland because they break off on the run. Totally. Right. Now look for it to happen. I think you would probably have to have a referendum on Greenland. Yeah. I find it quite plausible that the Greenlanders are about 50 ,000 of them. Yeah. Would say wait a second. I get to be an American. They're polled just showed positive results. They just did a survey there. I mean to become an American is in many ways the greatest gift we can give anyone on planet Earth. Totally. And the billions in investment. If Greenland became an American territory, the difference it would make for Greenlanders.

39:11Well, Senator, we could pay $200 billion for the territory that Denmark, they were their federal debt or their national debts about 150 billion They'd have a 50 billion surplus they could build a pension right around that's why we have you could spend another You could spend another 10 billion to put everyone in a great situation for the rest of their life That's a resident of Greenland and that becomes an American territory and this could be like a whole new philosophy for us I think we just go right to 60 states how I make it open off No, but so it's and yeah, and sorry How does the president the administration how are they gonna tackle this or do you have any insights into what's gonna happen here?

39:40So look, Ken Hower, you guys know I know as a good friend who has been nominated to be ambassador to Denmark. I've talked with Ken. Good friend of ours. Talked with Ken just yesterday about this. Yeah. I think we need to lean in and try to negotiate both with Denmark and Greenland. I'm certainly from the Senate going to push it. But I wanted to contrast. It is Canada going to come to a state. No, but Greenland, listen, we acquired... We could have protracted it. Louisiana purchased. We purchased from France. Alaska, we purchased from Russia. I mean, there's a long history of them. And it totally Puerto Rico next, let's go.

40:12If they want to come on board, why not? What's an American? This is a, it's already a pre -trial. It's an American, it's not a state. And so Panama, I view, is kind of in the middle of the two. And Panama is a little more complicated. Look, I think Jimmy Carter giving away the Panama Canal remains one of the most spectacularly stupid decisions a president has ever done at home. So I think it was profoundly harmful to US national security interest to our economic interest. Yep. But that being said, it's been long enough that unwinding it is really tough. However, President Trump, if you listen to what he's saying on Panama, he's got actually some very sophisticated legal arguments that he's making.

40:53Number one, when we gave the Panama Canal to Panama, technically sold it for a dollar, we had a binding agreement that laid out the terms of that transfer. And one argument that President Trump has put forth is that Panama is in violation of that agreement because they have allowed China to effectively seize control of the canal. How is that? Because a Chinese state owned enterprise owns a building on one end of the canal and on the other end of the canal. And should we be at a point of conflict, military or other with China, it's not difficult to imagine those Chinese state or enterprises using that location to try to shut down anyone traversing the country.

41:34Sounds like they avoided the contract. That's a pretty powerful argument, the second argument, and I had breakfast this morning with President Trump. He had breakfast with all the Republican senators two and a half hours. He gets sworn in tomorrow and he spent two and a half hours. That's the aminah. Stream of consciousness talking. We talked about Panama. He's pointing out the president said this morning says, US Navy ships pay double. what any other country's Navy ships pay. He said that American commercial ships pay 58 % more than other nations pay. Look, we need to drill down into those facts, but on the face of it, I think there's a powerful argument that that's inconsistent with the terms of the agreement.

42:17And is the final outcome of this that we get total control of the Panama Canal back? Probably not. I think that's a high lift. But in many ways, I think Trump is negotiating on price. And I could easily see an outcome where both Navy ships and commercial ships that are American pay much, much lower rates, number one. And number two, critically, that we get China, the hell out of the canal. And that, if we accomplish those two, that would be a massive improvement from US interest. Have you, I'm sure you've been paying attention beyond the things that you've been a part of, the confirmation hearings?

42:53Can you give us the sort of blow by blow of where you think things have gone well, where there was room for improvement, whether there's going to be some spotty weather ahead? Look, I've been really happy so far. I think the array of cabinet nominees has been very, very strong. Were there a couple that were you thought going in, we have to, this one will be a little bit harder than the other? Well, look, clearly the most bumpy was Matt Gates and they were through Matt Gates. He was not going to get confirmed. There were multiple Republican senators who were going to vote now. But I will say, I mean, they withdrew that nomination pretty quickly when I did that.

43:26I think that was strategic. They sent him up the hell to take the first two. And Pambondi is, seems amazing. Pambondi's going to be terrific. She's going to get confirmed easily. I think right now every Trump cabinet nominee gets confirmed. That's great. Pete Hegseth is clearly who they're shooting at the most. I don't think they've scored real blood. I did a whole podcast on the Hegseth confirmation hearing. where it spoke volumes that the Democrat virtually all of the Democrat attacks were personal attacks based on anonymous charges, typically with no evidence and with no one coming forward and putting their name on it.

44:02And they had virtually nothing to say about the job to which he'd been nominated and what he intends to do as the Secretary of Defense. I think that fundamentally is a flawed strategy. So I think everyone gets through right now. Do you think that you'll see any Democrats, senators support any of the candidates? Yes. Rubio. So Rubio will get 90 votes. He could get north of 95 votes. It'll be a huge bipartisan vote for Rubio. John Ratcliffe for CIA, he'll get significant bipartisan votes. Sean Duffy at Transportation, he'll get a bunch of bipartisan votes. Howard Lutnik at Commerce, my guess is he'll get bipartisan votes although he hasn't had his hearing yet, so we'll see.

44:44So there will certainly be some. Pambondi, I think Pammas Terrific. Brook Rollins. Brook will get bipartisan votes. Part of it is, all right, let's take Sean Duffy. So I shared the confirmation hearing for Sean Duffy, Secretary of Transportation. It was a love fest. Why was it a love fest? Because everyone wants a bridge or a road in their state. So you're like, wait, you're Santa Claus and you're giving out hundreds of billions of dollars. I want some. And so everyone wants it. And so, Brooke Rollins at Department of Agriculture, again, everyone wants stuff for ag and farmers in their state. So, in that sort of role, it's easy for it to be a love fest.

45:24Pam Bondi, even though she did very well, I'd be surprised if Democrats vote for just the nature of attorney general in this politicized environment. My guess is, I think of the committee, the D's are going to vote now, but I think Pam will hold every Republican. Okay. I think she she gets through easily Bobby senator. I think he makes it through I spent an hour with him It'll be interesting this is I was talking with him about this will will any Democrats vote for him? Obviously he's been a Democrat his whole life until like 12 minutes ago They hate him and they really they do view him as a Judas for daring to to to change all of us it's still Look take out to you look at like red dye number three You look at what Bobby is doing.

46:10I am re -what I'm looking at. I need more change before he's become a GJ secretary. I mean, the system is so screwed. Like, let him cook. Let's see what he can do. And his willingness to take on corruption, corruption of big pharmaceutical competition, get in bed with big government that they perpetuate their monopolies using government power. So I talked to Bobby, for example, about a bill that I've been fighting for a long time that I call the results act. The results act says that if any pharmaceutical, any medical device is approved in another major developed country. So approved in Canada or Japan or the EU, that the FDA has 60 days to approve it here or it's deemed automatically approved by operations.

46:52Love it. Brilliant. I'm going to fight, I have been fighting for that, but I think now I'll have an HHS secretary that agrees with it. And I do think if you look at these cabinet nominees, the most striking characteristic of virtually all of them is that they're change agents that they're going to fundamentally change disruptors disruptors and that's exciting we need that all right listen your people have been we're getting hooked out of hand for 20 minutes but you know what? let the man cook I gotta tell you I gotta tell you our bestie Phil Helmuth every time he sees you comes back to our poker game says what a great poker play what a gentleman he drops your name I can get him on the phone right now I told them call him right now never does it he was a hundred percent right you are amazing great to have you on the bottom you are attempting me with poker chips I mean when you get you in a game I know you don't make it to California much but when you do come to know the boots play and we need scotch in a cigar and I am happy happy happy maybe we'll go play it often I can't all these egg balls where everyone's in in tuxedos but but but my happy place is sitting around the poker table man you're gonna try to say good scotch so great to have you and Congratulations on the big win and thank you for your service.

48:04Thank you very much. Thanks a lot. Thank you.

From the publisher

(0:00) Besties intro Senator Ted Cruz; history of the "Come and take it" flag

(2:21) Texas vs. California: how to approach building and entrepreneurship

(10:25) Thoughts on immigration, serving in the Senate, over-politicization

(16:55) How to create a bipartisan consensus on immigration, increasing prosperity through opportunity

(23:54) How Sen. Cruz would approach Trump's first two weeks of his second term

(29:02) DOGE's two major challenges, unlimited Congressional terms, ideology over party, the great political flip

(35:22) Trump's strategy on Greenland/Denmark, Panama Canal, and Canada

(42:45) Thoughts on Senate confirmation hearings

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