This Is How New York Will Collapse | Tom Bilyeu Show LIVE Clips

Tom Breaks Down Zohran Mamdani's economic policy. What's up, everybody? It's Tom Bilyeu here: If you want my help... STARTING a business:join me here at ZERO TO FOUNDER https://tombilyeu.com/zero-to-founder?utm_campaign=Podcast%20Offer&utm_source=podca[%E2%80%A6]d%20end%20of%20show&utm_content=podcast%20ad%20end%20of%20show: https://tombilyeu.com/zero-to-founder?utm_campaign=Podcast%20Offer&utm_source=podca[%E2%80%A6]d%20end%20of%20show&utm_content=podcast%20ad%20end%20of%20show https://tombilyeu.com/zero-to-founder?utm_campaign=Podcast%20Offer&utm_source=podca[%E2%80%A6]d%20end%20of%20show&utm_content=podcast%20ad%20end%20of%20show SCALING a business:see if you qualify here. https://tombilyeu.com/call: https://tombilyeu.com/call Get my battle-tested strategies and insights delivered weekly to your inbox:sign up here. https://tombilyeu.com/: https://tombilyeu.com/ ********************************************************************** If you're serious about leveling up your life, I urge you to check out my new podcast,Tom Bilyeu’s Mindset Playbook https://open.spotify.com/show/47VE90Cittmo6TGGFqg2xf —a goldmine of my most impactful episodes on mindset, business, and health. Trust me, your future self will thank you. ********************************************************************** FOLLOW TOM: Instagram:https://www.instagram.com/tombilyeu/ Tik Tok:https://www.tiktok.com/@tombilyeu?lang=en Twitter:https://twitter.com/tombilyeu YouTube:https://www.youtube.com/@TomBilyeu Learn more about your ad choices. Visit megaphone.fm/adchoices https://megaphone.fm/adchoices See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Tom Bilyeu?

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• 0:45Tom Bilyeu?

  Their dashboard tracks what comes next based on what your business actually needs. So EIN number, registered agent, licenses and permits, bookkeeping, business banking. I tell every founder the same thing. Just make it official. Click the link in the show notes to check out Taylor Brands and get started on your business today. This is a paid advertisement. Zoran Mamdani is clearly going to be the next mayor of New York, but he is a villain, a charming villain. But here's what his fans are not thinking about.

• 1:17Speaker 01

  The mayoral debate was yesterday. In the words of Tom, who calls Mamdani his villain. Is he like your supervillain now at this point, like an arch nevvisus?

• 1:24Tom Bilyeu?

  The supervillain is Marxism itself, socialism itself. When you look at the price of gold right now and realize how rapidly it's going up. And the price of gold is an indication as to how stable the market thinks your economy is. And it's saying, bro, you're in real trouble. Everything that is wrong with the economy right now is based on debt, money printing. Mamdani is going to make that worse. The buses are never going to be free. Nothing is ever going to be free. Everything is going to be paid for by somebody. But this all becomes abstracted. If New York decides that what they want is free buses, then my only question is what aren't you going to do to be able to pay for that? If what we see is a measurable improvement in something that we all care about based on that.

• 2:10Tom Bilyeu?

  And you don't see capital flight because they're like, okay, yeah, this is a thing that we're that's worth paying for. Great, no problem. I have exactly zero belief that that's how this is gonna go. I think he's doing it from an ideological standpoint. I think no matter what happens economically, whether he gets the funding or not, whether tax revenue goes down or not, he's gonna keep pushing his agenda because he believes from an ideological standpoint, this is what we ought to do. The city's too expensive. I think that housing has become too expensive essentially ubiquitously across all of America. I think it is one of the most catastrophic problems. We have tried rent freezes before in New York. In fact, we're doing rent freezes already in New York. It hasn't solved the problem.

• 2:51Tom Bilyeu?

  We did rent freezes in the extreme back in the sixties and seventies, and it led to the burned out buildings in the seventies and eighties. People do not understand that even buildings, housing is an entrepreneurial endeavor. It is somebody who their product is an apartment complex. You buy that product because you want to live inside of it. And what ends up happening is, imagine if I told you, hey, you can't charge people, you can't charge them that amount for a pair of shoes. Well, all of a sudden, the number of people making shoes goes down because it has a knock on consequence to all the things that they can make those shoes from. And so upkeep in a building, to take it back to real estate, when you put rent freezes,

• 3:31Tom Bilyeu?

  they're like, well, you've now just made it impossible for me to make money off my building. Maybe you make it break even, which just reduces somebody's incentive because like, wait, I'm gonna have to work this hard and I'm gonna have nothing to show for it. Why would I do that? So people aren't gonna run businesses out of charity. What ends up happening is people go, wait a second, if at those rents, I can't afford to repair the plumbing, for instance. So they don't, and they tell you wrap a towel around it. And so you end up in a situation, this is real, you end up where a quarter of all of the buildings that burned in the Bronx were due to arson because it was cheaper to burn the building and collect the insurance money than it was to try to upkeep it.

• 4:16Tom Bilyeu?

  When you start mapping Marxist beliefs.

• 4:20Tom Bilyeu?

  On somebody who's really trying to make the poor's life better, you're gonna be eternally confused. Because they'll do things that are so obviously well documented that it doesn't work, and they do it anyway. So it's like, why are they doing that? If you map them as resentful people who want to punish the wealthy, all of a sudden, all of their moves make sense. In the cross-cultural study, what they found was, if people had the opportunity to create a tax policy that made the poor's lives better, but also helped the wealthy, they won't vote for it. Not as much as they'll vote for something that makes the life of the poor worse, but punishes the wealthy. Across cultures, the thing that people will actually vote for is the thing that hurts the rich.

• 5:04Tom Bilyeu?

  They won't vote for the thing that helps the poor. And so, helping the poor would be, let the free market stop putting so many regulations on housing, and let people go in and build new apartments, build new buildings, and charge whatever rent they can get away with charging. Now, putting some restrictions on it like, we're not gonna let foreign investors buy property. Okay, I get that. With every additional property that a person buys, just charge them bigger and bigger taxes. If somebody wants to buy the third property and you're charging them 50% tax, okay, well, that's on them. Let them do their thing. Very simple things like that would, over, let's say, the next five years, make housing very, very simple.

• 5:48Speaker 01

  I don't think that's necessarily a fault of the policy as opposed to a fault of the person.

• 5:51Tom Bilyeu?

  Of course it's a fault of the policy.

• 5:53Speaker 01

  I feel like we should be more mad at the arsonist and not mad at the person whose rents are lower.

• 5:57Tom Bilyeu?

  You should be mad at the arsonist because it's illegal.

• 5:59Speaker 01

  Okay.

• 5:59Tom Bilyeu?

  You should also recognize that the government put them in that position. And I would bet dollars to donuts if I described a scenario where, let's say that your mom had bought a house. Her whole life was like, when I get to 65, I'm gonna retire, I'm gonna move to a really small apartment near my son, I'm counting on the rent that I'm gonna be able to get from that house. And my upkeep on the house with property taxes and maintenance and all of that, let's say, is $1,700.

• 6:30Tom Bilyeu?

  And then the government comes along and says you can't charge more than fifteen hundred dollars a month for that apartment. Now your mom's like, hold on a second. Now I'm losing money every month with no hope of ever making.

• 6:41Speaker 01

  Or you can sell the building.

• 6:42Tom Bilyeu?

  Who's gonna buy the building? When I say you can't make money, you will lose money. And so now your mom is like, no one's gonna buy this. So you just tank the value of my real estate because anybody even considering buying this building is going to ask, can I make money off of maintaining it off of the property taxes? And if the answer is no, she's left holding a building that she literally can't sell. That's what happens. And now you remember, this is your mom who for thirty years paid into this building with a plan for how she was gonna retire. And then somebody says you can't charge what the market is willing to pay. And now your mom's entire like, plan for the rest of her life is just over.

• 7:23Tom Bilyeu?

  She can't sell the building and now she's looking at it going, I, I have to get the money out of that. Otherwise I'm gonna be working until the day that I die. And thi- this is where people get put into desperate situations. Now, I'm not saying that your mom is a good person if she burns the building down. But I am saying I get why one day late at night, she's like, well, that is an option.

• 7:42Speaker 01

  Housing, I, I think is a different bucket here. Even the grocery store thing, I can kind of take that point and sees it a different bucket.

• 7:47Tom Bilyeu?

  So you know the way to make housing more affordable is to make more housing. You've come up with a narrative that we can't build up, which I totally reject wholeheartedly.

• 7:56Speaker 01

  I'm just saying when we build up, especially in New York City, you've never seen a high rise that's more affordable than the unit that it replaces.

• 8:02Tom Bilyeu?

  Now your beef is I don't want there to be places like Beverly Hills that poor people, they just can't afford this neighborhood.

• 8:08Speaker 01

  That, that's all of Manhattan.

• 8:10Tom Bilyeu?

  Fine.

• 8:11Speaker 01

  So, so you're saying it's fine that they can't afford it?

• 8:14Tom Bilyeu?

  Yes, of course. I'm saying it's fine. They can't afford it.

• 8:16Speaker 01

  But I thought the problem was of housing affordability.

• 8:18Tom Bilyeu?

  Yes, of course. You don't have a right to live in whatever neighborhood you want to live in. What I'm saying is stop artificially making it impossible for people to live somewhere. That it's the government regulation is making it impossible. For instance, stop freezing rents. Because if building a business in Manhattan, building a building in Manhattan. Manhattan was lucrative, then a whole bunch of people would do it. And if a whole bunch of people were doing it and renovating these buildings and knocking them down and building new things with more tenants, it's going to become more affordable. Now, if in doing that, the wealthiest people in America are like, actually, I want to migrate to the city. Yes, it is very possible

• 9:00Tom Bilyeu?

  that given that that is just a fixed, finite piece of land,

• 9:04Speaker 01

  Yeah.

• 9:04Tom Bilyeu?

  that the wealthiest people are going to keep pouring in. But my instinct is that isn't going to be true.

• 9:09Speaker 01

  It's the number one city in the, in the world, arguably.

• 9:11Tom Bilyeu?

  Right, but are you trying to regulate who can and can't come there? I don't understand. If you are saying no neighborhood should ever be able to be out of reach of, and I don't know if you'd say anyone, but are you saying every neighborhood should have low income housing?

• 9:27Speaker 01

  I have not said that, no.

• 9:27Tom Bilyeu?

  Perfect. Then now you're just into what you just said a minute ago, which is there will always be a supply and demand problem when Manhattan is of finite size. What I'm saying is the free market is going to lower the prices. It's not going to take them up. Regulation is going to take them up. It's not going to lower them. So I'm saying, yeah, it's possible that an area just becomes so desirable for a whole host of reasons. Take the Hollywood Hills, for instance. The Hollywood Hills are always going to be more expensive because they have a view. And there's just always going to be a certain type of person that's going to be willing to pay for that view. So, limited amount of hills.

• 10:00Speaker 01

  How many additional units we try to build on Hollywood Hills, we are going to reach the upper threshold.

• 10:04Tom Bilyeu?

  Yeah, exactly.

• 10:04Speaker 01

  We ran out of hills.

• 10:05Tom Bilyeu?

  Right, right, right. But I'm saying if you want to lower it as much as you can, then you would deregulate as much as is safe. I'm not saying you take it to zero. And then if you're going to put limitations on it, put limitations of habitation. So I get a regulation that says you can only own a house here if you actually live in it at least fifty one percent of the time or whatever. Now you're going to find out when it is single family ownership. Single family dwellings, what becomes the price? And then if that price is just, it's too high. There's so many people that can afford that place and want to live in that place. Well, Manhattan is just more or less off limits for anybody that's making less than whatever. $350,000 a year.

• 10:50Speaker 01

  I understand the A to Z of what that laid out, but the end results of that policy would be, this is just how much it is, either you got it or you don't. It's like you're at the bar, it's at the club.

• 11:00Tom Bilyeu?

  Always gonna be the case.

• 11:01Speaker 01

  You have to cover.

• 11:01Tom Bilyeu?

  You, you can't, you can't own a, a house on a minimum wage job. Which is not gonna be possible.

• 11:07Speaker 01

  Now enter Mom Donnie, who's saying there are people who are quote unquote residents of New York, who are born in New York, who are now getting priced out of this same thing. Because the demand is too high, because the prices are rising, because New York is number one city in the world, because people are still flooding in. They are getting priced. So what he's saying is, I'm going to artificially hold this amount of units, just so that way I can help those specific people.

• 11:27Tom Bilyeu?

  And if it worked, I'd cheer for it. It doesn't work, it goes the exact opposite direction. It will make a housing crisis. It will make it so that nobody wants to invest in the area.

• 11:36Speaker 01

  There's rent controlled units now. There's people who still want to live in New York. New York does not have a vacancy problem. I, I guess this is the fundamental, this is a values problem. So I think we could talk about housing.

• 11:45Tom Bilyeu?

  But you have to tell me what, what the end result is that you want to get to.

• 11:49Speaker 01

  Drew personally understands how the economics are working. The reason I'm trying to argue Mom Donnie's point is because I think a lot of times when we talk about him on the show, it becomes, oh, that's a socialist and we kind of minimize like what he's trying to.

• 11:59Tom Bilyeu?

  Mom Donnie's policy is full retard. It, it is so ignorant to how economies work, that the very thing I'm screaming for is for people to just follow the math. If you follow the math, you realize if you make it impossible for business to run, then business stops running. Business is how you get affordable homes in anywhere. And he's breaking that equation. We've run this scenario before, not only here, but all over the world. It doesn't work sometimes, it literally never works.

• 12:30Speaker 01

  But we're doing that now though. And I, that's the thing that I think.

• 12:32Tom Bilyeu?

  You literally hear yourself. You're saying, hey, New York is totally fucked, it's totally broken. And we're, we're already running his policy. That's my fucking point is even now, when you have some small amount of it going on, it hasn't solved shit, because what it does is it tells, it tells investors, don't invest here. Let's talk about a pattern that is guaranteed to be killing your progress. You know what you need to do. You need consistent nutrition. We all do. You need vitamins, probiotics, greens. We all know that we should be doing more of it. When your morning gets chaotic, you skip it. When you travel, you skip it. When your routine breaks, everything tends to break. And that inconsistency compounds against you every single day.

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