Hoover Daily Report | October 2, 2025

Today, David R. Henderson discusses a new book analyzing the economic history of the Great Depression; Lee Ohanian and Bill Whalen break down the politics of California’s Proposition 50 ballot measure, which would allow the State Assembly to redraw the state’s congressional districts; and Mike Kuiken warns of America’s dangerous dependence on China for computer chips that are critical to many industries. 

Hoover Daily Report | October 2, 2025

Episode Transcript

(00:00):
- Welcome to the Hoover Daily Report.
Ideas Advancing Freedom. It'sThursday, October 2nd, 2025.
- Today David R. Hendersondiscusses a new book,
analyzing the Economic Historyof The Great Depression.
Lee Hanian
and Bill Whalen break down the politics
of California's Proposition50 ballot measure,
which would allow the state assembly

(00:21):
to redraw the state'scongressional districts
and Mike Kiken warns
of America's dangerous dependence on China
for computer chips that arecritical to many industries.
- What ended the GreatDepression in a new article
for defining ideas?
Research fellow David R.Henderson provides an overview
of the argument made infalse dawn, the New Deal
and the Promise of Recovery.

(00:42):
19 33, 19 47
by monetary economist GeorgeSelgin Henderson finds
that this volume willlikely stand for a long time
as the definitivestatement on the causes of
and recovery from the Great Depression.
Henderson highlights selgin's analysis
of outgoing President HerbertHoover's mixed feelings about

(01:02):
declaring a bank holiday to calm deposit
or panic given uncertaintyabout the limits
of his presidential authorities.
But as Henderson notes,Hoover tried to persuade FDR
to support a bank holiday
with the new Democratic Congress on board.
What's more? Several seniorHoover administration,
treasury officials stayed on to help
with the complicateddetails of the closing

(01:23):
and reopening of US banks.
The article continues with an exploration
of the depression's later phases
and ultimate reversal around 1940
- California update the 50 50 proposition
as California enters thefinal phase leading up
to its November 4th special election
and a vote on Proposition 50.
Plenty of unknowns surround the fate

(01:44):
of the controversial ballot measure
that would redraw California'scongressional districts
to offset a Republicanled gerrymander in Texas.
Hoover Senior fellow Lee Hanian
and distinguished policyfellow Bill Waylon,
both contributors to Hoover's,
California on your mind webchannel, discuss the tactics
and messaging behind Prop 50.
Hanian and Waylon consider the roles

(02:06):
that current governor Gavin Newsom
and former Republican governorArnold Schwarzenegger have
played so far in theballot initiative campaign.
The fellows also discussedwhy the upscale town
of Calabasas ended upas a toxic waste site
for Los Angeles fire debris,as well as the failure
of a prominent former legislator
to gain traction in nextyear's governor's race.

(02:26):
Despite her compelling life story,
- America risks a dangerousdependence on Chinese chips
while Washington fixates onadvanced AI semiconductors.
Beijing is quietly corneringthe market in so-called
foundational chips thatpower everything from cars
to medical devices to defense systems.
Warns, distinguished visitingfellow Mike Kiken in an op-ed

(02:47):
column for the Financial Times.
Kiken emphasizes thatin semiconductor policy,
the misleading terms, legacy
or mature connote obsolescence for
what are in fact indispensable
and innovative components,noting the ubiquity
of Chinese chips acrossvital US industries.
The author says Washingtonshould adopt a Know your chip

(03:09):
requirement, the semiconductor equivalent
of financial know your customerrules, forcing companies
to map and disclose their supply chains.
Kiken, a commissioneron the US China Economic
and Security Review Commission concludes
that getting chip policy rightis the essential, urgent,
non-negotiable nationalsecurity imperative of our time.

(03:30):
- Do incumbents still enjoya financial advantage?
How individuals cease
to advantage incumbentswhile corporate America
continues to favor them?
Incumbents have long enjoyeda substantial fundraising
advantage in American elections.
Note senior fellow Andrew B. Hall
and co-authors in a new paper,
but it remains unclear whetherthis advantage has persisted

(03:51):
as elections have become more partisan
and nationalized in recentyears to learn more,
the authors analyzed acomprehensive data set covering US
House, US Senate, gubernatorialstatewide executive
and state legislative elections.
To present the first systematicevidence on the evolution
of the financial incumbencyadvantage, the authors find

(04:12):
that the financial advantage enjoyed
by incumbents at all levelsof government has declined 25%
to 50% over the last decade.
This decline, however, is driven entirely
by individual donors andespecially small dollar donors.
In contrast, the advantage
among corporate PACS has remainedstable or even increased.

(04:33):
The authors conclude
that these shifts reveal acampaign finance landscape
that is increasingly shapedby partisanship on one side
and strategic investment on the other.
- The AI bull case for the Republic.
In a co-authored column
for Fortune research fellowPatrick McLaughlin channels,
the historical example
of the Roman EmperorJustinian Corpus Juris,

(04:56):
a comprehensive codification
and streamlining of Romanlaw across all provinces
as a template for America'sown justinian moment.
As McLaughlin notes betweenregulations, statutes,
and case law, our country has accumulated
around 260 million lines oflaw at the federal level alone.
Now, advanced AI tools canhelp to identify opportunities

(05:19):
to streamline laws
and regulations promisinga slimmer, more accessible
and more efficient set of governing rules.
As the piece concludes.
While China uses AI fortyranny, we should use it
for renewal, embracingtechnology to reverse legal
and institutional decay.
A millennium and a half ago,
Justinian chosetransformation over decline.

(05:40):
History will judge whether we do the same.
- This month in Hoover history,
Hoover Institution welcomesfirst class of veteran fellows.
In October, 2021,
the Hoover Institutionwelcomed its inaugural class
of veteran fellows.
Each year, the veteranfellowship program selects armed
services veterans based ontheir demonstrated leadership
and success as mid-careerprofessionals in the private

(06:03):
sector, as well as their commitment
to the Hoover institution'soverall mission
of advancing ideas for free societies.
At the conclusion oftheir one year fellowship,
veteran fellows submit acapstone project in which they
develop actionable solutions
to policy challenges intheir respective communities,
including those impactinggovernments, businesses,

(06:24):
workforces, schools, publichealth systems, and the security
and safety of their fellow citizens.
- That's your HooverDaily report for Thursday,
October 2nd, 2025.
Each weekday, we bringyou research, analysis,
and commentary focused on publicpolicy, national security,
and the ideas shaping Americansociety and government.

(06:44):
The Hoover Institution atStanford University is grounded in
constitutional principleswith a commitment
to sustaining the safeguardsof the American way of life.
Thank you for listening.
For links to all the articles
and interviews mentionedtoday, visit hoover.org/hdr.