In short
The episode argues that Trump is using executive power, legal threats, and Supreme Court rulings to weaken checks on government, especially by pressuring news organizations and courts; it also covers measles resurgence, tariff uncertainty, a potential Elon Musk third party, Texas flooding, and debates over “victimhood” and civil rights language.
Guests (backgrounds)
- Mark Leibovitch, Atlantic staff writer covering politics and policy.
- Juanita Tolliver, Democratic political strategist and commentator.
- Jared Bernstein, former White House economist (Obama) and Biden CEA chair.
- Ta-Nehisi Coates, author/journalist on race and democracy.
Key claims
- CBS/Paramount settlement with Trump is described as chilling “extortion” that could change editorial decisions despite no clear First Amendment violation.
- Supreme Court actions are said to favor Trump by limiting lower-court pauses on executive actions.
- RFK Jr. is criticized for attributing measles to “information chaos” while research funding/staffing are cut.
- Musk’s “America Party” could disrupt GOP politics but may be hard to execute.
- Coates says “victimhood” rhetoric is used to justify white power and exclude “people” from democracy.
Notable examples
- $16 million Paramount/60 Minutes settlement; CBS/60 Minutes interview transcripts planned.
- Measles at a 33-year high (1,200 cases, 150+ hospitalizations).
- Texas flooding: 100+ killed, including 27 girls/camp counselors; river surged ~30 feet in an hour.
- Tariffs: threats of 25–40% on 10 countries; markets react to delayed escalation.
- Coates discusses how “people” in democratic language can exclude certain groups.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOTrump's Abuse of Power
1:02 to 1:52
Exploring Donald Trump's patterns of abusing executive power and media pressure.
“There's also new tariff threats from President Trump that are upsetting the markets, stoking talk of inflation.”
CBS Settlement Details
1:52 to 3:52
Discussion on the CBS settlement involving Trump and its implications for journalism.
“Government pressure on other entities, including the capitalist corporate structure, to constrain, censor, or change the journalism that the public uses and needs to govern itself.”
Press Freedom Concerns
3:52 to 7:22
Analyzing how the settlement affects press freedom and journalistic integrity.
“He never won this case outright, and it was considered far-fetched by First Amendment advocates, lawyers, experts.”
Impact of Executive Threats
7:22 to 11:10
Discussing the implications of executive threats on journalism and public trust.
“And amazingly, the Supreme Court recently has helped the executive.”
Measles Outbreak and Health Policy
11:10 to 14:01
Addressing the resurgence of measles in the U.S. and its connection to vaccine skepticism.
“Yeah, and you remember, you're referencing, and people may remember that moment with Mr.”
Measles Surge in the U.S.
14:01 to 15:03
Learn about the resurgence of measles in the U.S. and its implications.
“is now hit already a 33-year high, 1 ,200 confirmed cases.”
RFK Jr.'s Controversial Views
15:03 to 16:19
Discussion on RFK Jr.'s statements and their impact on public perception of vaccines.
“One of the things we first heard about COVID was, hey, it's new.”
Elon Musk's Political Ambitions
16:19 to 18:58
Exploration of Musk's intentions to start a political party and its implications.
“So Mark Juanita, I want to ask you about the other big news driving this week.”
Challenges of Building a New Party
18:58 to 20:38
Insight into the complexities of building a political party from scratch.
“going to have some serious doubts about Elon Musk's ability to actually execute something like this, given his relatively brief and so much tumultuous record in politics.”
The Role of Billionaires in Politics
20:38 to 22:05
Discussion on the influence of wealthy individuals in the political landscape.
“and well-being are on the line with every single election.”
Show all 18 chapters
Commercial Break: Jenny's Ice Cream
22:05 to 23:48
Advertisement for Jenny's ice cream focusing on its unique flavors and quality.
“District X on the America Party because he or she is very, very compelled by Elon Musk's vision for the future.”
Impact of Trade War on the Economy
24:47 to 28:00
Analysis of the effects of Trump's trade war on the U.S. economy and markets.
“President Trump has not reached the many trade deals he vowed during starting from the start of this tariff and trade war.”
Economic Uncertainty and Tariffs Impact
28:00 to 29:19
Discusses the economic ramifications of tariffs and uncertainty in the market.
“So maybe they think it'll all get worked out on the tariffs.”
Healthcare Politics and Economic Betrayal
29:20 to 31:19
Analyzes the healthcare bill and its implications for working-class Americans.
“And then Jeffrey's trying to address it.”
Legislative Impacts on the Economy
31:20 to 33:14
Examines how new legislation affects government bonds and interest rates.
“Speaker Johnson was talking about it this weekend, including the voters' response.”
Upcoming Guests and Community Updates
33:15 to 33:44
Previews upcoming guests and transitions to news about Central Texas flooding.
“Jared Bernstein coming out of the holiday, all systems firing on your analysis.”
Central Texas Flooding Crisis
33:45 to 35:43
Reports on the catastrophic flooding and community responses in Central Texas.
“from really this catastrophic flooding, these terrible death tolls.”
Racial History and Political Discourse
35:52 to 42:02
Explores race, history, and the political rhetoric surrounding civil rights.
“We're joined by the author Ta-Nehisi Coates as we consider what democracy means today.”
Transcript
Automatic transcript. May contain errors.0:00Juanita Tolliver:Most ice cream is good, but not Jenny's. Jenny's ice cream is more like an obsession. What you get from over two decades of tasting and tweaking and throwing it out and starting over, chasing flavors until they feel alive. That might sound crazy, and that's because it is. Jenny's. Often imitated, never duplicated, always splendid. Stop and look at your walls. Does anything there actually inspire you? Original art has the power to transform not only how a space looks, but how it feels. And that's why for the past 16 years, Saatchi Art has helped people find art that reflects who they are. Join buyers from around the world who have found art they love living with.
0:44Juanita Tolliver:Shop Saatchi Arts Anniversary Sale through September 8th and get up to 15 % off original art. That's SaatchiArt.com. S-A-A-T-C-H-I-Art.com. Welcome to The Beat. I'm Ari Melber. Later this hour, we have the latest reporting on the horrific flooding tragedy in Texas. Just a terrible scene down there. We have the latest numbers. There's also new tariff threats from President Trump that are upsetting the markets, stoking talk of inflation. By the end of the hour, we will hear from the great author Ta-Nehisi Coates, as we always try to go deeper and broaden out over the course of our news program. We begin tonight with Donald Trump abusing executive power, some of it blatantly admitting it, other times doing it in ways that take critical scrutiny, reporting, investigative journalism to pull apart and make sense of what's happening.
1:35And some of these are stories that have echoes, they have a mood of repetition, but that's part of the problem. Not a government doing something once and getting dialed back or making a mistake, but rather what has accrued into a pattern. And while any serious journalist, all the journalists we studied under over the years, say that you don't try to make journalism the story, you don't try to make the act of reporting the story, when the government cracks down on it, as we've seen in many countries, from Russia to Hungary, well, you don't ignore it either. Journalists and First Amendment experts advocate across the political spectrum, to the extent that lawyers have this spectrum, and journalists, many of whom are completely nonpartisan in their careers, are united right now, starting this week, with concern, criticism, and some outright sounding serious alarms about it happening here.
2:28That what Trump once mused about or only tweeted about in the first term is now part of our lived reality in the autocratic crackdown against free speech, the free speech of journalists to report, unfettered both by government interference and by something that also can amount to censorship. Government pressure on other entities, including the capitalist corporate structure, to constrain, censor, or change the journalism that the public uses and needs to govern itself. I am talking, of course, about this highly unusual and costly settlement where money is basically going from the CBS company, its parent company, Paramount, towards Donald Trump and his interests.
3:12Paramount is now paying$16 million towards basically places that Trump wants, in this case, the presidential library, not directly into his pocket, but also reimbursing him and his organization's campaign, et cetera, for any legal fees accrued in their choice to sue 60 Minutes for something that is in the strike zone of journalism. Its efforts to report in the presidential campaign and to interview and quote both sides, which CBS, like many other outlets, endeavors to do every campaign year. They're also going to release the transcripts of their interviews with presidential candidates in the future.
3:51Not a big part of the settlement there, but Donald Trump made a claim that has not been proven in court. He never won this case outright, and it was considered far-fetched by First Amendment advocates, lawyers, experts. He basically said that the way the Kamala Harris interview aired was an affront of damage to him to such a degree that he wanted to take them to court. Legal scholars saw no case there. And if you want background, CBS has been sued by all sorts of important people before. They usually fight these cases, especially when the claim is weak. But the other thing going on is that its parent company, I should say, a bit of a tongue twister, its parent company Paramount has a lot on the line.
4:32because right now they need the Trump administration's approval for what they want to do that matters a lot more to them, apparently, than some news interviews for a big multi-billion dollar merger. And that was now seen by Trump as a kind of prerequisite for getting the approval. The pressure intensified because Trump threatened Paramount with another defamation lawsuit on a different 60 Minutes report. In this settlement, he will also stand down on that particular threat. Although keep in mind, as we've seen in other countries, If the government can do this kind of thing and be rewarded for it, get away with it, what's to stop Trump from picking another current or future CBS report that he threatens to sue over?
5:13It's not as if CBS or any honest news organization can just stop covering the president of the United States. Now, journalists far and wide are condemning this development. I say it may have echoes because Trump has sued multiple press outlets. Others have settled in other scenarios. And this one had been leaking out. We reported on some aspects of this, for example, last week. But take the icon of CBS News, long time CBS Evening News anchor Dan Rather, who says this today is a sad day for journalism, a distortion by the president kneeling down and saying, yes, sir, by the billionaire corporate owners.
5:46He's speaking of the people who now run CBS where he worked for so long. And he goes on to say, as you see here, quote, it was a sellout to extortion by the president. Current CBS journalists also condemn what's happening in their workplace. The Paramount Settlement poses a new obstacle. Can you hold power to account after paying it millions? Can an audience trust you when it thinks you've traded away that trust? The audience will decide that. Our job is to show up to honor what we witness on behalf of the people we witness it for. Trump finding new ways to basically not violate the actual First Amendment.
6:29For example, you're not seeing the government here passing a law to say you can't run the interview with his opponent that he didn't like. But he is, according to many, undercutting the spirit, the tradition, and quite possibly other laws, depending on if you believe the critics who, as all reports, say this was a shakedown. There are also letters now to tech companies where his attorney general says they can go ahead and just violate the statute that does bar companies from working here on TikTok because Trump says so. Legal experts say it's a power grab. Presidents, of course, have some discretion about enforcement priorities, but they have never admitted to or been allowed to simply pick laws out that they don't want to follow.
7:12There is also the wider effort to undercut the courts to test how far they can go in defying or delaying or not really following court orders. And amazingly, the Supreme Court recently has helped the executive. They didn't do that during the Biden era, but now that Trump has been in charge here in office for over 100 days, the Supreme Court agreed with Trump's request to have other judges back off pausing or freezing even executive actions that are deemed likely illegal, that were likely to later be frozen or overturned by the high court. An ABC News report says the court's ruling this term disproportionately advantaged Trump, which makes it easier for these assorted abuses of power, some allegedly illegal, if you believe that it's extortion, if there is evidence of that, some skirting the law, and some technically lawful, but against all long-term bipartisan traditions, including conservative traditions, about why you don't want the government in charge of the press or the tech companies or the free markets telling you what you're going to learn, what you're allowed to read or see on TV or the internet, what may be happening in the world.
8:23There is a reason why across the world autocrats have always gone after the press early in efforts to ultimately curtail democracy itself. With these alerts in mind, I want to bring in the Atlantic staff writer Mark Leibovitch and Democratic political strategist Juanita Tolliver. Welcome to both of you, Mark. The CBS story has been going for a while. It's now hit this crescendo. and I haven't heard anyone involved in journalism or facts defend it, say it's on the level. There seems to be agreement in the factual community that this was an ugly, sordid deal, even if, as I carefully point out, it may not be itself a crime.
9:04Well, you're not going to find any defense from me. I mean, I certainly, I mean, I think everyone in this business, certainly on the news side of the operation, finds it quite chilling, not just for this case in particular, but what it bodes well, what it bodes for the future as far as what Donald Trump is willing to do to basically harass news organizations. But I think even more so what the parent companies of news organizations are willing to cave into. I mean, I think, to be honest, I mean, there's always going to be some tension between the corporate parents of journalism. I mean, journalists are going to push in one way.
9:39I think a more corporate interest will maybe push in the other direction, but that's sort of part of the journalism that we operate in. This is something that basically the parent company of CBS here, Paramount, and just in advance of this merger, is looking to sort of usurp the journalistic interest of CBS, specifically 60 Minutes, and try to just sort of muddy the waters and make it harder for their journalists to do journalism going forward. I mean, I can't think of a worse result. I mean, I certainly associate myself with Dan Rather and every other journalist who condense this. Juanita?
10:15Juanita Tolliver:I keep going back to a statement that Bill Owens, the outgoing longtime executive producer of 60 Minutes, made back in April when he resigned, emphasizing how 60 Minutes lost independence through their parent company, through these threats from Donald Trump. And it just highlights the impact because, Ari, you're right. Technically, Donald Trump has not violated the First Amendment. However, it is going to have an impact on editorial decisions, stories chosen, how they're delivered to audiences. And not just by CBS. I think back to the settlement that ABC made with Donald Trump in their lawsuit.
10:52Juanita Tolliver:And so it just it just comes back to this reality of taking yet another step towards this type of control, because Donald Trump is now in a positive momentum building posture in terms of threats. What threats are going to come next? What cooling effect will we witness? How will stories be told going forward? These are all questions that hopefully journalists continue to stand up and maintain the journalistic integrity and ethics associated with the work because the audience is the public, not the president. Yeah, and you remember, you're referencing, and people may remember that moment with Mr.
11:29Owens, who was the journalist and the executive producer in charge of 60 Minutes. Whatever they saw writing on the wall, whatever pressures were brought to bear, they were dealing with it first before we got to today's settlement. Exactly. Which led to something. Yeah. Which led to something very dramatic. You referenced it. I want to play when Scott Pelley, who's this sort of a measured, constrained, nonpartisan figure on the old guard of nightly news, as there ever is, said, you know, enough, basta. And spoke out for the aforementioned Mr. Owens. Let's take a look back at that moment on 60 Minutes.
12:08Our parent company, Paramount, is trying to complete a merger. The Trump administration must approve it. Paramount began to supervise our content in new ways. None of our stories has been blocked, but Bill felt he lost the independence that honest journalism requires. Mark? I mean, look, I mean, what I find really upsetting here, frankly, is, you know, Donald Trump is going to do what Donald Trump does. I mean, everything he's done here is basically in the zone of the way he behaves around journalists, around journalism in general. What we rely on as journalists is for our parent companies, our editors to back us, to have our backs.
12:56I mean, we want to work for companies that fight, fight for this principle, fight for our independence, fight for the stories we want to write. And that's what didn't happen here. So, I mean, I guess, I mean, yeah, I mean, it'd be nice if Donald Trump showed a little bit more deference to the traditions and the norms and the independence of journalists in general. But, you know, I'm much more upset about Paramount here. And I know why they did it. It's obviously a corporate interest of theirs. But you don't have to like it. And I can't imagine what it's like to work for CBS under these circumstances.
13:29And I hope I never have to. Yeah, straight up. I want to bring in another topic that relates to, again, on these downstream effects from this administration. Some things will take a lot longer. And if we're fair in journalism, we've just been talking about journalism. We tell people, here's the risk or here's why this policy is criticized. But it could be years before you see how the big new bill kicks off how many people on health care. and we'll track the numbers. Other indicators are coming in fast. I want to show something really striking that's part of our first block of the hour, top story, because measles in the U.S.
14:04is now hit already a 33-year high, 1 ,200 confirmed cases. This is now across most states in the country. There have been over 150 hospitalizations. Measles was all but officially eliminated in 2000 according to prior CDC accounts of what was a very simple, workable solution, the effective vaccines. Now, as this disease surges amidst, of course, the post-COVID vaccine skepticism in the country, the HHS secretary chosen by Donald Trump, RFK Jr., is saying this. If I walk down the street, I have every block, I have moms coming up and saying thank you. There's been this deliberate information chaos.
14:50So we're going to change all that and we're going to make it so that people can do studies, that they can do gold standard science. Juanita, it seems clear this is the result of what became a very kind of broad ranging vaccine debate about the COVID vaccine that spread skepticism against other long running vaccines. One of the things we first heard about COVID was, hey, it's new. How does this work? That's not the case with measles. And RFK appears to think this is not a problem. Your thoughts?
15:24Juanita Tolliver:I mean, it's really hard to believe anything he's saying. One, about strangers coming to thank him for these policies that lead to a 30-year spike in measles and outbreaks across the country. But also, too, in that same interview, Ari, he went on to say that we're going to start conducting real science. And I'm thoroughly confused about what he means by that, especially when this administration has been cutting research dollars to universities, public health institutions, including the NIH. And Robert Kennedy Jr. has been slashing staff. So I'm thoroughly confused about what positive impact he hopes to make or endeavors to make with that being the reality we're facing.
16:02Juanita Tolliver:When something like measles, which was eradicated 25 years ago, is surging again in this moment, it just presents the reality that with him in that role, with this Trump administration, the public is less safe in terms of our health and well-being. Yeah, and it's happening now. These are not hypotheticals. I want to turn to the other big thing that if someone would have told you a month ago, not only were Trump and Musk going to have a fallout, but Musk was going to potentially plow his considerable fortune into complicating the life of Donald Trump and the Republicans. This is something if it happens.
16:38So Mark Juanita, I want to ask you about the other big news driving this week. Elon Musk says he's really going to fund a third party against the GOP. We're going to get into that in 90 seconds.
16:54Elon Musk going after Trump and the Republicans in a way that could really matter beyond just tweeting or talking. He is vowing to now begin a new political party that would compete with the Republican Party. He says he'll call it the America Party. This Musk announcement comes amidst the break with Trump over the Republican budget, slashing subsidies, including things that Musk squanted that benefit his companies. Trump lashing out further. So the feud that had died down is back this week, saying Musk is off the rails and a train wreck. I think it's ridiculous to start a third party. Third parties have never worked.
17:29So he can have fun with it. But I think it's ridiculous. I'm back with Mark and Juanita. And Mark, we live in the world as it is and not as it might be. We were just discussing the power of some of these corporations that want to help Trump. Here is someone who has a level of wealth that can dwarf most congressional races, can meaningfully be involved in the presidential race, as he showed last time. Trump says third parties don't work. Political scientists would tell you third parties have often tipped elections, even at the national level. Do you think if he spends on it that this thing could matter or complicate the GOP's life.
18:11Yeah, absolutely. I mean, that seems to be what Elon Musk's ideal reality would be here, which is to sort of disrupt what Republicans think, you know, what they need to sort of win and continue to win the House majority and to keep the Senate. But I also think, you know, a lot of the details here are key. I mean, Elon Musk has shown consistently that he's not really much of a detail guy as far as seeing something like this through. I mean, this is going to be requiring a lot of infrastructure, someone to recruit, you know, candidates, getting people on the ballot and so forth. I mean, that's a lot of sort of nitty gritty work, which obviously he didn't seem to be too big of a fan of before.
18:50So we'll see. I mean, I see why Trump would be ambivalent about it because, I mean, he probably stands to lose more. But I also think that I'm going to have some serious doubts about Elon Musk's ability to actually execute something like this, given his relatively brief and so much tumultuous record in politics. Yeah, I mean, he's a complex figure in that way, Juanita. You can't doubt that he's had impact. He's had huge impacts in fields that he's focused on. But unlike other people that sometimes put decades into something, he has this frenetic, almost ADD style of management. And, you know, as a political yourself, I'm sure you can remind everyone, Juanita, how long term party building usually takes multiple cycles.
19:36That's even when if the Democrats are down a little bit and they're trying to fight back in Virginia or North Carolina and that's a party people are registered in here, you're asking for a whole new thing.
19:47Juanita Tolliver:Not only are you asking for a whole new thing, it goes down to a granular level of hoops that he would have to jump through at the state and local levels in terms of petitions signed by local voters, engagement that sustained. Candidates will be willing to run under his banner even. And then you bring in the entire concept of the federal election commissions and legal responsibilities and requirements and filings. I don't think he has a stomach for the long game, as Mark mentioned. But also, Ari, I got to jump back to something we talked about last time I was on with Jason Johnson when he's like, why is a billionaire able to even influence elections this way?
20:23Juanita Tolliver:It does hearken to the devastating state of our democracy at present and how much farther it stands to decline if someone like Elon Musk continues to throw around his wealth and his billions in this game when the reality is that real people's lives and well-being are on the line with every single election. Yeah, Mark, how about that? I mean, we live our lives mostly through stories, not statistics. If the story becomes enough billionaires that are overreaching and upsetting to enough people, does that catalyze some concern that Juanita mentions? That heck of a lot of people left, right and center don't think other people, whether they made a lot of money or moved here from wherever, should be running everything just because they're rich.
21:07you would think i mean i do think look i mean it's unclear how much money if any elon musk is going to put into this i mean right now his big interest or at least his big success has been to trigger donald trump i mean donald trump obviously doesn't like that he's doing this and i think elon musk probably um you know i was getting a kick out of that that that fact alone um look i think people don't like rich you know billionaires getting involved in politics but it's never stopped them before it certainly didn't stop them the last election and there's really not been an election where you can point to money and politics sort of being the main issue.
21:40I mean, yes, John McCain has, you know, that was sort of his signature when he first started running, you know, his fundraising reform bill, which was a huge issue, but it hasn't really gotten traction, certainly not since, you know, Supreme Court ruled, you know, in favor of just super PACs and the unlimited money being allowed to be spent on campaign. So, but right now, I mean, I think it's sort of a distraction. And it's also hard to imagine a serious politician running in Congressional District X on the America Party because he or she is very, very compelled by Elon Musk's vision for the future.
22:17I mean, I don't see it, but I guess it could happen in the next, you know, next year and a half sometime. Yeah. And he is different than most of these billionaires who are pulling levers. He has an actual large following. I mean, he fashions himself a type of tech celebrity and he owns these platforms where they talk about paid media. He's paid a lot to make himself allegedly popular. Whether he is or not, the social media of this is something we just saw in New York. Social media, in many ways, can have a huge impact. So, he's a little different that way. We'll have to watch it. Mark and Juanita, thanks to both of you for being here.
22:54Juanita Tolliver:Thanks, Ar. Thanks, Ar. Appreciate it. Ta-Nehisi Coates is here tonight as we look at democracy in the Trump era. Big thinker. Also, the backlash to Trump's bill now becoming law, the budget over the July 4th weekend that will slash so much health care. We're seeing the uprisings and markets jittery as Trump's bumped deadlines for the trade war come back to haunt him.
23:23Juanita Tolliver:Most ice cream is good, but not Jenny's. Jenny's ice cream is more like an obsession. What you get from over two decades of tasting and tweaking and throwing it out and starting over, chasing flavors until they feel alive. That might sound crazy, and that's because it is. Jenny's. Often imitated, never duplicated, always splendid. Stop and look at your walls. Does anything there actually inspire you? Original art has the power to transform not only how a space looks, but how it feels. And that's why for the past 16 years, Saatchi Art has helped people find art that reflects who they are. Join buyers from around the world who have found art they love living with.
24:07Juanita Tolliver:Shop Saatchi Arts Anniversary Sale through September 8th and get up to 15 % off original art. That's SaatchiArt.com. S-A-A-T-C-H-I-Art.com. If you like YouTube, you'll love YouTube Premium. It's destroying athlete, creator, and YouTube Maxer. YouTube Premium enhances how I use YouTube with awesome features like offline downloads so I can download my favorite training videos before I hit the gym. So no Wi-Fi doesn't turn leg day into loading day. Plus, I get ad-free videos, background play, and so much more. YouTube Premium is like YouTube got some extra gains. Try YouTube Premium for two months free at youtube.com slash premium.
24:45Trial eligibility varies. Terms apply. Cancel anytime.
24:53President Trump has not reached the many trade deals he vowed during starting from the start of this tariff and trade war. He backed down partially and also did some delays to buy himself time. But if you ever thought maybe over the holiday or as the summer's been going on, whatever happened to that trade war? Well, what Donald Trump started is coming due again. The Dow Jones crashing about 400 points today because there is concern that this trade war ain't over. It's just delayed. Not only that, but Trump's talking up other tariffs on 10 other countries between 25 to 40 percent. They have delayed the date that the tariffs would have taken effect to next month.
Read the full transcript
25:32But again, as soon as this is back on people's minds and the markets think any of this has a risk of being real, they start pricing in the risk. Remember, Wednesday was actually supposed to be the real delayed deadline. Trump's team had one time talked up 90 deals in 90 days. They are under five deals, and we don't hear anything about a full 90 anymore. Now, as for the delaying, this isn't the first time. Donald Trump has relented and backed off the tariffs so many times that Wall Street traders, who often lean Republican, refer to him as a chicken. They have an acronym TACO, as in Trump always chickens out.
26:09It is a bit of wordplay that got so much airplay that Trump himself has responded to it. Now, the threats, though, are still rattling the markets because even if you think there's an unlikely chance this will happen, say 90 % Trump will delay and back down again, but 10 % chance that this thing could finally escalate into another round of trade war, well, then you're supposed to price that 10%. Now, five polls show most people don't approve of Trump's budget. People have heard bad things from how it's going to affect inflation in the economy to health care. Backlash has been visible out in the country.
26:49For those who don't follow maybe every Internet news story or national cable political news, here's how it's playing locally and online. Food pantries are reeling as the megabill passes through the House.
27:02Juanita Tolliver:Analysts predict that the big but ugly bill is going to add$2.4 trillion to the national deficit. Crowds of people holding signs, chanting and marching. This bill basically sets a trap. It's sending billions and billions of dollars to a force that is picking people up off the street without warrants. You're doing everything you're supposed to do. You're working, but you can't afford to be healthy. Take away from both like food stamps and health care, Medicare, all those things, and then give to like massive tax cuts to billionaires. The word is getting out. We are joined by Jared Bernstein, a veteran of the White House under Obama.
27:43Biden chaired the Council of Economic Advisers under President Biden. Welcome. You see some of the awareness of the budget and this sort of low grade trade war, which went to the back burner for a bit. How is this affecting the economy? And what do you think of that risk I mentioned, that people have seen this cycle? So maybe they think it'll all get worked out on the tariffs. But meantime, there seems to be some cost. If people, and in this case investors in the markets, think that things are going to work out, then the markets don't fall by 400 points on the Dow, about a percent, just under a percent for the Dow, the S &P, the NASDAQ, all three indices.
28:27And you don't see the kind of nervousness that we've seen among American businesses who are sitting on their hands when it comes to investing because they don't know where this is going to bounce. I wrote a piece this morning, Ari, that was called There Are But Two Roads Out of Tariff Hell. One path is Trump declares victory, which he could do, and the MAGA crowd would probably applaud, and certainly businesses, consumers would like it. The other path, probably more likely, is to set the damn rates and move on. He is taking neither road. And that kind of uncertainty is clearly hurting markets, businesses, consumers, the overall economy.
29:06Yeah. Here's what they're saying about the health care stuff, which now is going to hit so many people, whether they were following it closely in the summer or not. I've got this back. I've got this congressman on the Republican side. And then Jeffrey's trying to address it. Take a look. You're not worried at all that Americans may lose their health care. Oh, well, just just some Americans that aren't Americans. And that is the illegals. Why should illegals be on Medicare? Actually, federal law, to your point, and explicitly prohibits federal dollars from being used to provide health care to undocumented immigrants.
29:44And so that was always alive. What do you see from an economic perspective on the budget, the health care impact and how long it's going to take before people start feeling this? Well, before I get into the economics, I think what we saw there is that a bunch of people who voted for this bill really don't know what was in it. I mean, I've seen that many times over and that's just a really horrible situation. In terms of the economics, there are so many things to worry about. First of all, we know that one of the things that's really troubling Americans is the cost of living. And in that sense, this bill deeply betrays the working class who put this administration, many of whom put this administration in the White House because they believed them when they said we're going to lower costs, we're going to lower interest rates, we're going to make housing, health care, education, groceries less expensive.
30:39they've actually you know let's tie these two conversations we're having together what do tariffs do they make life more expensive particularly for middle and working class people what happens when you cut medical coverage nutritional support energy support you know the price of electricity will go up because of this bill higher education these are all betrayals of people who need help with their living standards they're getting kicked in the head by this bill. And I can wax all day about the economics of deficit financing and the interest rate implications. I actually think that's very important.
31:14Bottom line, this is a betrayal of working people. Yeah. Speaker Johnson was talking about it this weekend, including the voters' response. Take a look. We're excited about the upcoming election cycle in 26, because people will be right in an economic high, just as we did after the first two years of the first Trump administration. But this time it's on steroids. Now, on the one hand, I don't know what else he's going to say, but I am putting it to you. Do you think the bill, properly understood as it gets out there as law, is going to help them? No, I don't. For the very reasons I was just saying.
31:57I mean, one of the first things that starts happening in this bill is that the government is going to have to sell more bonds in order to raise money to cover the deficit that they are exacerbating with this bill. My belief, and that of pretty much any economists who've looked at it, is that this puts upward pressure on interest rates, and that feeds right into mortgage rates. The tariffs, as we've mentioned, they're going to raise prices, and And some of the health care cuts are backdated, but some of them begin, particularly the ones that hurt some of the hospitals, they start to come in pretty quickly.
32:34And, you know, the backdrop of this is also something we shouldn't lose sight of. Consumer spending has actually been flat since Trump took office. It's just been about zero in real terms. We've seen some cracks in the labor market. It's still solid, no question. But the hiring rate is way down. And companies, again, are sitting on their hands when it comes to investing, when it comes to hiring, to see where a lot of this lands. So is the Federal Reserve, by the way. They're solidly in wait and see mode. And what we saw today does nothing for them because it just increases the uncertainty. So that means they're going to be hesitant to lower interest rates to try to help boost growth going forward.
33:15So, you know, again, I think, as you said, Speaker Johnson's going to say what he has to say, but I think it's going to be proved wrong. Understood. Jared Bernstein coming out of the holiday, all systems firing on your analysis. So we appreciate you on more than one topic. Thank you, sir. Coming up tonight, we do have Ta-Nehisi Coates here. is always interesting, the author on the state of race and history in Trump's America. We're going to hear from him on that tonight. But next, we do head to Central Texas for an update on a community absolutely reeling from really this catastrophic flooding, these terrible death tolls.
33:53We will keep you updated on all of that next.
34:05We turn to the devastating deadly floods in central Texas, which hit over this holiday weekend. There were heavy rains on Friday, which caused a river to surge about 30 feet in under an hour. You can just see how quickly that overtook everything there. Officials have now confirmed over 100 people killed. That includes 27 girls and camp counselors who attended a summer camp that was positioned just along that river. Dozens are missing. Search and rescue efforts are now entering a fourth day. More rainfall, unfortunately, is expected overnight. Survivors of the catastrophic flooding have been sharing what they witnessed, what they experienced, and the heartbreak as these tragic events unfolded.
34:49Juanita Tolliver:guess one of those a true very fast ferocious like no one had seen probably since 32 flood what kind of things have you seen out here um unthinkable things I mean there's things that no one ever would have thought they've seen in their lifetime we had no warning nobody notified us there was a crepe myrtle tree that we grabbed hold of and we waited for rescue hundreds of miles of devastation so we need help they keep finding more missing people down the river I'm just trying to do whatever I can. People trying to get by. Some members of the community have been gathering, providing food, supplies, whatever they can offer up to those affected.
35:28President Trump signed a disaster declaration for that county, Kerr County, Texas. A flood watch, we should note, remains in place until 7 p.m. Central time for our viewers in that region. This has been a very tough time for everyone out there. Our thoughts and prayers are with everyone. And we will keep reporting on this here on MSNBC as we get additional information tonight and in the days ahead. We wanted to keep you updated on that. I'm going to fit in a break when we returned as promised. We're joined by the author Ta-Nehisi Coates as we consider what democracy means today.
36:08People are coming back to work after July 4th. the time to look at what unites us in this country or even reflect on history and sacrifice beyond our current political divides. That's at least the hope. Of course, today we see a week starting with plenty of politics and clashes. Even history isn't safe from our current partisan brawls. Republican lawmakers and many MAGA pundits often twist history and the very definition of civil rights concepts, say, being a victim of discrimination. Remember, elite schools and institutions have long discriminated against women and racial minorities and in favor of classes and graduates like you see here, mostly men, mostly white men.
36:51But some MAGA voices now insist the actual victims are the white men, a wider trend that author Taunahisi Coates has documented in his books and journalism, we turn to that now. I don't think there should be a Black History Month. That particular passage wasn't saying that slavery was a benefit. They were saying there was resourcefulness and people acquired skills in spite of slavery. The word racism is almost extinct now because we can't discern true racism from wokeness. Wokeness is racism in and of itself. It's all activism.
37:27Juanita Tolliver:It's all ideology. It's no history. We cannot perpetuate a lie to our students and push this propaganda leftist agenda, teaching our kids to hate America. The only through line that you might get across the spectrum from left, right, middle there is that racism is bad. You don't have a lot of people who say out loud the opposite. But now they've tried to hijack that and say that the problem is that type of racism or what they call wokeness run amok, and it's against these white men. What do you see there, and why do you think that is happening, particularly rhetorically, that they want to take the terms that may have at one point done something?
38:11I think that's not as new as it looks. Okay. Yeah. Um, if you had went to a slaveholder in Virginia in 1840 and said, why can't we, you know, free these people? I mean, there would have been a long list of reasons, but among those reasons would have been, if I free them, they'll kill me. you know um in 1865 after black folks were freed if you went to them and said you know why why do you need to be in charge they would say because these people are going to oppress us um and if you had come in 1876 after reparations they would have said because these people are oppressing us the notion of the person doing the violence because people rarely say you know what i mean I want your money.
39:02Give it to me. I could put it to better use. You know what I mean? Like, evil rarely confesses itself. You know what I'm saying? And so the notion that white people have somehow been victimized, you know what I mean, by some other, you know, group of people, very often black people, is not a particularly modern invention. Those who are interested in white power and the maintenance of white power, always use victimhood as a construction. And what they don't do is they don't substantiate. Look, I don't stand up and tell you that, you know, Black folks have, you know, been an oppressed class in this country.
39:40You know, I point to statistics. I point to history. I tell you things that have happened at particular points. You know, I don't, you know, merely just marshal rhetoric. Yeah. You know what I mean? I think those that oppose that point, if you have a much more difficult time doing that. There's those statistics. Well, we're also in a period of resurgent activism against Trump and on behalf of people targeted because of their immigration status, race or even beliefs, as we've seen on the college visa crackdowns, which also raises some deeper questions right now. the question you wrote is not whether lincoln truly meant government of the people but what our country has throughout its history taken the political term people to actually mean and legally um it's easy for folks to forget that it's not bad not bad you like that put it back up as they They say, run it back.
40:38Because I'll let people take another moment and let it sink in. Because law is written in language. So if the language says person, but person doesn't include humans, or also includes corporations, then suddenly the words get pretty confusing and subject to power. So given that, tell us your thoughts today. I mean, I remember what I was trying to get across with that. And, you know, it was true at the time. You know, I mean, Black folks at that particular point in time, to a large extent women, you know, and all sorts of other groups were basically written outside of what, you know, the bounds of what, you know, people thought democracy or who the people thought democracy were fit for.
41:19And I think that has remained true. There is no lack of democratic language among Trump and his followers. They just don't think certain people should matter. That's just the basic idea. There's a tolerance for a cruelty. There's a tolerance for a kind of violence. There's a tolerance for a kind of hierarchy and anti-democratic norms, as long as it's not those who they consider to be the people. You know, and so I just, I don't, I don't, you know, folks have no problem preaching democracy as long as it's democracy for certain people. Coates discussing his memoir there, Between the World and Me, to mark its 10th anniversary.
42:01These are new excerpts from our extended interview. And if you want to see the entire full interview, it's on YouTube. You can search Coates and Melbur or go to msnbc.com slash Ari for our YouTube playlist. We'll be right back.
42:23developments and artificial intelligence are looming over many aspects of our lives from business to workplace to democracy itself the new york times ezra klein was talking to us about that in one of our extended interviews and here's what he said one of many things i worry with AI, is that it automates away from us the exact parts of intellectual work that make us smarter. In every generation, you got to make sure the solutions of the past era don't become the problems of the current era. Efficiency towards a better America is something I would support. Efficiency to run the country off a cliff, I'm not a fan of it.
43:02A final thought there from one of our guests. As I mentioned, you can go to msnbc.com slash Ari, A-R-I, see our playlist and catch up on those longer interviews, some of them extended, especially for our digital viewers. Thanks for watching.
43:16Juanita Tolliver:Most ice cream is good, but not Jenny's. Jenny's ice cream is more like an obsession. What you get from over two decades of tasting and tweaking and throwing it out and starting over, chasing flavors until they feel alive. That might sound crazy, and that's because it is. Jenny's. Often imitated, never duplicated, always splendid.
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