Steve Bannon, the architect of the MAGA movement that has delivered Donald Trump to the White House twice, believes the right-wing “economic populism” that he embraces is starting to gain traction among leading Democrats looking for a way out of the political wilderness in the wake of Trump’s comeback victory.
His remarks to Newsweek come after his appearance on California Governor Gavin Newsom’s new podcast, This is Gavin Newsom, where the progressive Democrat found some common ground with the firebrand informal Trump advisor on issues ranging from manufacturing, corporate tax cuts to even certain tariffs.
Though he doesn’t hold an official role in the second Trump administration, Bannon’s imprimatur can be still be seen in the White House’s “flood the zone” communications strategy. He remains a leading outside advocate for expanding grassroots MAGA support, which he promotes daily through his popular War Room podcast.
“I was shocked and pleased that the governor was on the same page,” Bannon told Newsweek in a Wednesday interview just after their podcast conversation went live.
He said that the Democratic governor, who many suspect is preparing for a 2028 presidential run, “essentially embraced” economic populism—notable, Bannon said, given that “he comes from a state that’s really at the forefront of globalization.”
What Is Economic Populism, Exactly?
Economic populism, the way Bannon defines it, prioritizes the interests of the working and middle classes over those of “elites” and large corporations. It’s a political framework that exists across the political spectrum, both in the U.S. and abroad, but takes different forms.
On the left, economic populists emphasize higher taxes on the wealthy, stronger labor protections, universal healthcare and expanded social welfare programs, as supported by Senators Bernie Sanders and Elizabeth Warren.
On the right, it often centers on protectionist trade policies, resistance to globalization and significant immigration restrictions aimed at safeguarding domestic jobs—stances on which Bannon has remained steadfast through the years.
Bannon told Newsweek that his conversation with Newsom, which was cordial and included several moments of agreement with the Democratic governor, signals that members of the Democratic Party are beginning to move “much closer to MAGA.”
In the podcast episode, Bannon noted that Representative Ro Khanna and Senator John Fetterman, both Democrats, have shown signs of building an economic populist following from the left. He told Newsweek that Newsom “clearly respected” both those lawmakers.
Bannon Warms, Ever So Slightly, to Musk…
The podcast discussion eventually turned to Elon Musk, the billionaire leader of the so-called Department of Government Efficiency (DOGE), whom Bannon referred to as a “parasitic illegal immigrant” last month. It has been reported that President Trump has since asked Bannon to mend fences with Musk — and signs of that thaw were evident in his conversation with Newsom.
“I’ve got a lot of problems with Elon, and you know that, Elon knows it. But what I do admire is that he is trying to get this situation to get the waste, fraud and abuse out,” Bannon told the governor.
Bannon has long criticized the “tech oligarchs” surrounding Trump this time around, accusing them of partaking in what he calls “techno-feudalism.” He has been a vocal critic of Big Tech’s reliance on H-1B visas for labor, arguing that it undermines American workers and reduces foreign employees to “indentured servants.”
He has repeatedly warned about Musk’s business ties with China and has been outspoken against Silicon Valley elites writ large, whom he sees as consolidating power at the expense of ordinary Americans while benefiting from tax breaks and stock buybacks.
…While (Mostly) Supporting DOGE
But Bannon also applauded Musk and DOGE’s efforts to gut the federal bureaucracy, telling Newsweek he endorses “the deconstruction of the administrative state,” which he has long championed: “It needs to be deconstructed, and DOGE is one way to do it.”
At the same time, Bannon made clear that Musk must not touch entitlement spending like Medicaid, except in cases of fraud, saying that many MAGA supporters rely on the federal program.
“My complaint about DOGE is I would like to see more definitive numbers now,” he told Newsweek. While DOGE has been updating information on terminated contracts and departmental cuts online, it remains unclear how much money has actually been saved.
“I don’t actually think it’s a huge number,” he said. (Federal spending actually hit a record of $603 billion last month, according to a Financial Times report Wednesday).
When asked whether mass layoffs were inherently anti-populist, Bannon dismissed the notion, stating that no one has a “lifetime guarantee” of a government job, “They need to be treated with respect and maybe help them find jobs, but its not anti-populist.”
So far, more than 62,000 federal employees have been laid off or terminated following DOGE’s recommendations. With an estimated 400,000 additional cuts expected in the coming months, the federal workforce is set for a massive reduction—fulfilling DOGE’s mission to shrink government operations and pleasing populist MAGA supporters who advocate for a smaller federal government.
Although Bannon said he would approach layoffs and terminations differently than Musk and DOGE, he acknowledged that “people have different styles” and described the cuts as “at least effective in the direction.”
“I’m not going to agree with everything always, but it will work itself out over time,” he said.
“The system isn’t working for the working and middle class, so how do you make it better? You take dramatic action,” Bannon asserted, in reference to the ongoing mass layoffs and federal restructuring.
The War Room podcaster predicted that “DOGE will be ongoing, I don’t see an end date to it,” adding that “an aspect of DOGE will be a permanent operation of government.”
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