Tesla would have failed without Obama-era loan
Klein argues Tesla would have gone under without an Obama-era government loan guarantee, undercutting Musk's anti-government narrative.
Snapshot · Modern Wisdom
The Collapse of American Politics - Ezra Klein - #1114
Explore episode
Jun 22, 2026
Where this was said
What Does Deregulation Actually Mean?
At 55:30 · chapter starts 53:53
Williamson poses the sharpest policy question of the episode: how do you explain the difference between Klein's deregulation and Musk's around a dinner table? Klein's answer is disarmingly simple: deregulation means removing rules; the question is always whether the specific rules you are removing serve your goals. Tesla was built on government tax credits; California subsidised the entire EV market into existence; an Obama-era loan guarantee saved Tesla from bankruptcy. SpaceX's revenues depend on NASA contracts. Musk's project — indiscriminate cutting without a theory of what to build — is self-defeating and the opposite of what created him. [1] — Ezra Klein "Tesla exists because of government subsidies and Obama-era loan guarantees. SpaceX runs on NASA contracts. Musk's DOGE-style deregulation —…" 54:00 Klein then applies this logic to housing: Mamdani's Block by Block plan is a deregulation plan, but its goal is to make affordable housing cheaper to build. The absurdity it is trying to fix is a case where government rules designed to raise standards have made it two to four times more expensive to build publicly subsidised affordable housing than market-rate housing — producing Washington DC units costing $1.2 million each. The abundance question is always: what do you want more of, and how do you get it? Rules are tools, not ideologies.
Deregulation Isn't Owned by the Right — It Depends on the Goal
Tesla exists because of government subsidies and Obama-era loan guarantees. SpaceX runs on NASA contracts. Musk's DOGE-style deregulation — cutting indiscriminately without a theory of what to build — is the opposite of what made those companies possible. Real abundance thinking asks: what do we want more of, and how do we get it?
Affordable Housing That Costs More Than Market Rate
In Washington DC, publicly funded affordable housing units have cost as much as $1.2 million each. One development had affordable units costing $800K while market-rate units next door cost $400K. The goal was affordability. The rules created the opposite. This is the Abundance critique in one case study.
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