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What This Latest Supreme Court Ruling Means For Every President - Chamath Palihapitiya

July 17, 2025 / 07:38

This episode discusses presidential power, government regulations, and the implications of a recent Supreme Court ruling. Guests Jason and Travis share their views on executive authority and the efficiency of federal agencies.

The conversation begins with a debate on whether the president should have the authority to make significant personnel changes without consulting Congress. Jason argues that President Trump should have the freedom to manage his team effectively, while Travis adds that outdated technology in government leads to slow processes and excessive regulations.

They also touch on the relationship between Congress and the president regarding budget appropriations and hiring mandates. The guests discuss the complexities of laws that dictate how many employees must be hired and the potential constitutional issues that arise from such requirements.

Additionally, they consider the performance of government departments, like the Department of Education, and whether the president should have the ability to fire underperforming personnel. The discussion highlights the need for an efficient government and the challenges posed by existing laws.

Overall, the episode presents a critical examination of executive power and the operational challenges within federal agencies.

TLDR

The episode discusses presidential power, government efficiency, and implications of a Supreme Court ruling on executive authority.

Episode

7:38
00:00:00
Does the power reside with the president to make large scale or you know riffs or
00:00:05
do they have to consult Congress first? Your thoughts on this issue? It's an incredibly important ruling,
00:00:12
incredibly right. I think President Trump should have absolute leeway to decide how the people
00:00:20
that report to him act and do their job. M if you take a step back, Jason, there
00:00:25
are more than 2,000 federal agencies, employees plus contractors, I think number almost 3 million people.
00:00:36
If you put 3 million people into 2,000 agencies, and then you give them very poor and outdated technology, which
00:00:46
unfortunately most of the government operates on, what are you going to get? You're going to get incredibly slow
00:00:54
processes. You're going to get a lot of checking and double-checking and you're going to ultimately just get
00:01:03
a lot of regulations because they're trying to do what they think is the right job. So since 1993, what have we
00:01:11
seen? Regulations have gotten out of control. It's like a 100,000 new rules per some number of months. Like it's
00:01:17
just crazy. So eventually we all succumb to an infinite number of rules that we all end up violating and not even know
00:01:25
it. So if the CEO of the United States, President Trump, isn't allowed to fire people, then all of that stuff just
00:01:34
compounds. So I think that this is a really important thing that just happened. It allows us
00:01:41
to now level set how big should the government be? But more importantly, the number of people
00:01:47
in the government are also the ones that then direct downstream spend that make net new rules. And if you can slow the
00:01:55
growth of that down, you're actually doing a lot. In many ways, I wish Elon had come in and created Doge
00:02:04
now. Like, could you imagine if Doge was created the day after this Supreme Court
00:02:09
ruling? It would have been a totally different outcome, I think, because with that Supreme Court ruling in hand, these
00:02:17
guys probably would have been like a hot knife through butter, Travis. So, I I think it's a big deal.
00:02:22
Except that ruling doesn't happen without Doge. That Doge caused that ruling to occur.
00:02:27
True. Well, the EO did you could have passed all that was all Doge style, though. You know what I'm saying? It was
00:02:33
If if they wasn't firing people, yeah, they probably wouldn't felt the need to your point, Travis, to actually file
00:02:39
this. Travis, if you are living in the age of AI efficiency right now, operations of companies is changing
00:02:45
dramatically. Can you imagine telling somebody you you can be CEO, but you can't change personnel. That's the job.
00:02:52
You get to be CEO, but you just can't change the players on the team. You can buy the Knicks, but you can't change the
00:02:58
coach. No, you can grow it. You just can't shrink it. It's like a It's like running a
00:03:02
unionized company, which actually does exist or largeized companies where you can't do any of these things,
00:03:08
right? Do do they still exist or are they all gone? They're going quickly. Yeah, probably.
00:03:13
I think this just gets back to what what is actually Congress authorizing when a
00:03:18
bill occurs. And there's certain things that are specific and certain things that aren't. And I don't I'm not sure
00:03:26
that in a lot of these bills, it's not very specific about exactly how many people must be hired. And so if it's I'm
00:03:36
just doing the common man's sort of approach to this, which is like if if the law says you have to hire X number
00:03:42
of people, then that is what it is. If the law says you here's some money to spend, here are the ways in which to
00:03:48
spend it, but it's not specific about how many people you hire, then that is different.
00:03:53
Yeah. It should be outcome based. Hey, here's the goal. Here's the the key objectives, right?
00:03:58
Travis Travis is totally right. Like there are there's a variety of different laws, some with incredible
00:04:03
specificities, some with very broad mandates. The Constitution clearly says that all executive power resides in the
00:04:09
president of the United States. Period. There's no exceptions there. However, Congress does appropriate money and post
00:04:15
Watergate, many people think Congress has the power to force the president to spend the
00:04:21
money. And you can debate that. You can debate it on a per statute basis. and that will be more nuanced and that's
00:04:27
going to get litigated whether the president can refuse to spend money that Congress explicitly instructed him to
00:04:34
spend sometimes called empowerment. That's a very interesting intellectual debate. This one's a little bit easier.
00:04:39
It'll get more complicated again like this EO is only approved to allow for the planning. I think the vote might be
00:04:47
closer. I think there's still a majority on the Supreme Court for the actual implementation, but it may not be 81
00:04:52
when there's a specific plan that has to navigate its way through the courts again.
00:04:58
Yeah, it's super fascinating. Yeah. I wonder if they're going to get to the point where they're going to say
00:05:03
in every bill, you need to hire this number of people to hit I don't I don't know if they can. Like
00:05:08
that's where it gets borderline unconstitutional. like where you actually prescribe that the president in
00:05:14
the exercise of his constitutional duties has to hire certain number of people that feels pretty precarious.
00:05:22
Well, I I I'm not sure, Keith. It's just like they prescribe a whole bunch of other things like you must you must
00:05:29
appropriate money for to this specific institution to do this specific work. But that's not an executive function.
00:05:37
Like if you said like the secretary of state has to have x number of employees doing something. The secretary of state
00:05:45
is your personal representative to conduct foreign affairs on behalf of the president of the United States. It gets
00:05:51
a little bit more messy as you translate it to people um that the president should I mean yes Congress does set you
00:06:00
know which people are subject to Senate confirmation, what their salaries and compensation bans are. So it's it's
00:06:06
never going to be fully binary where the president can do whatever he wants and it's never gonna I don't think it'll be
00:06:11
constitutional for Congress to mandate and put all kinds of handcuffs on the president.
00:06:15
Well, then you you also have performance that comes in here. What if you look at
00:06:19
the Department of Education? You say scores have gone down. We've spent this money. We're not getting the results.
00:06:25
Therefore, these people are incompetent. Therefore, I'm firing them for cause and
00:06:29
I'm going to hire new people. How are you going to stop the executive from doing that? There's been a bunch of
00:06:34
litigation, you know, in parallel to this litigation about the president's ability to fire people. And for the most
00:06:40
part, the Supreme Court's basically, with maybe the exception of the Federal Reserve chair, said that the president
00:06:46
can fire pretty much anybody he wants. I mean, that's the way to go is like I mean, I hate to be cut, but if the
00:06:53
results aren't there, I think if they're presidential Yeah. If they're a presidential appointee, the
00:06:58
president should be able to fire you at will. Just like if you were a VP at one of our companies, the CEO should be able
00:07:04
to fire you at will. But what about Keith? If the whole department sucks. Hey, you guys were
00:07:08
responsible for early education. You had to put together a plan. The plan failed.
00:07:12
Everybody's fired. We're starting over. Like, you should be allowed to do that. How are we going to have an efficient
00:07:18
government? Some of these departments were created by congressional statute like the
00:07:22
Department of Education in 1979. And you're right, every single educational stat has got worse in the United States
00:07:28
since the department was created. But there is a law on the books that says there shall be a department of
00:07:34
education. So you may have to repeal

Episode Highlights

  • Government Efficiency
    Exploring the impact of outdated technology on government processes and regulations.
    “You're going to get incredibly slow processes.”
    @ 00m 51s
    July 17, 2025
  • Doge and Supreme Court Ruling
    Speculating on how the creation of Doge could have influenced a Supreme Court ruling.
    “Could you imagine if Doge was created the day after this Supreme Court ruling?”
    @ 02m 05s
    July 17, 2025
  • Executive Power and Accountability
    Debating the president's ability to hire and fire personnel in government roles.
    “If the whole department sucks, everybody's fired. We're starting over.”
    @ 07m 06s
    July 17, 2025

Episode Quotes

  • It's an incredibly important ruling, incredibly right.
    What This Latest Supreme Court Ruling Means For Every President - Chamath Palihapitiya
  • Could you imagine if Doge was created the day after this Supreme Court ruling?
    What This Latest Supreme Court Ruling Means For Every President - Chamath Palihapitiya
  • You can be CEO, but you can't change personnel. That's the job.
    What This Latest Supreme Court Ruling Means For Every President - Chamath Palihapitiya

Key Moments

  • Government Size Debate01:45
  • Doge Speculation02:05
  • Executive Accountability07:06

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