Understanding Socialism’s Historical Failures and America’s Economic Crossroads

ITU: Ready to break through your biggest business bottleneck? Apply to work with me 1:1 - https://impacttheory.co/SCALE Sign up for my AI Masterclass: https://tombilyeu.com/ai-masterclass?utm_campaign=TBS-Livestream&utm_source=youtube&utm_medium=social Welcome back to another live episode of Impact Theory with Tom Bilyeu, Cohost Drew and Moderator Ryan, where we dig deep into the pressing issues shaping our world right now. In this episode, Tom unpacks the escalating conflict in the Middle East, including the deadly attacks on US soldiers and the global economic repercussions. He explores the surge in Americans leaving the workforce, reflects on the economic crises gripping both the US and China, and breaks down the perils of populist rhetoric and the dangers of historical amnesia in politics. Tom also dissects a viral interview with a DSA co-chair blaming capitalism for Peru’s downfall, contrasting that narrative with a historical analysis of Peru’s real struggles. The episode navigates contentious debates about government interference in markets—from public grocery stores to state-subsidized industries—and the future of AI as China’s Kimi model challenges US dominance. Rounding things out, Tom and the team tackle the latest on the Tate brothers’ arrests, the realities of rising social discontent, and the difference between emotionally resonant political messaging and real solutions. Get ready for a wide-ranging, no-holds-barred conversation that combines history, economics, and the urgent social questions of our time. Sponsors: Quince: Free shipping and 365-day returns at https://quince.com/impactpod Whatnot: Download the Whatnot app today and get free shipping on your first order. Ketone IQ: Visit https://ketone.com/IMPACT for 30% OFF your subscription order ATT Business: Switch to AT&T Business at business.att.com http://business.att.com Incogni: Take your personal data back with Incogni! Use code IMPACT at the link below and get 60% off an annual plan: https://incogni.com/impact Pique: 20% off at https://piquelife.com/impact Netsuite: Right now, get our free business guide, Demystifying AI, at https://NetSuite.com/Theory https://netsuite.com/Theory See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

• 0:00Speaker 00

  Let's talk about the moment your side hustle becomes a real business. Now, I see way too many founders stay stuck running their business like it's a hobby. And then they wonder why nothing ever feels real. It doesn't feel real because it's not. I've helped thousands of entrepreneurs build real businesses through Impact Theory University. And the first step in the path to building a legit business is registering it. And Taylor Brands will help you do just that in a few clicks. An LLC, a limited liability company, is an official business structure. It's inexpensive to form and very simple to maintain. It's how you open a business bank account. It's how customers know they're dealing with a real company. And Taylor Brands doesn't stop at the filing.

• 0:45Speaker 00

  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. Good morning, everybody. Welcome to another episode of the Tom Bilyeu Show Live. I am so excited to be back with you guys. I missed you all on Friday. Hope you guys had a wonderful weekend. Unfortunately, not everything from a global standpoint was great over the weekend. U.S. soldiers were killed in action as the war with Iran continues to escalate.

• 1:25Speaker 00

  Trump says in response to open the gates to hell as his retaliatory measure. More Americans are out of the workforce than at any other time in American history, which is going to be problematic and is probably not a sign of what people think it is. We're going to go into that. Hassan gives populist, a populist rant that shows how basically only extremism is going to win in this current political climate, which is deeply distressing. Speaking of deeply distressing, the DSA co-chair went on Fox and blamed capitalism for the fall of Peru, but history tells a very different story. And we're going to be going deep on that one, as you can imagine. That one had me nice and animated.

• 2:08Speaker 00

  Speaking of Bernie Sanders is caught lying by my own estimation here again. As New York City welfare hits record highs, the Kimi AI model is taking the world of AI by absolute storm and reigniting fears that China is pulling ahead of the U.S., which may convince the U.S. to act stupidly in the face of that. We'll get into the details. The Tate brothers, uh oh, once again arrested and apparently being sent back to the UK to face new allegations. It is a wild time. Oh, wow. Ouch, you had that one ready. All right, let's dive into Iran. Iran struck U.S. base in the Middle East, killing at least two, possibly three U.S. soldiers.

• 2:52Speaker 00

  The U.S. has continued their bombing campaign as a part of the retaliation, going absolutely ham, hitting deeper into Iran than they've hit at any point since the war began. Now, the U.S. base that got hit was in Al Azraq, Jordan. Apparently both missiles and drones were used in the attack. The Pentagon named the fallen soldiers First Lieutenant Tyler James Feehan, who is 25 years old, out of Iwa Beach, Hawaii, and Private Isabella Gonzalez, 19, of Carrollton, Texas. Four more service members were medically evacuated and have since been discharged, thankfully. A third servicemember was initially listed as missing, and unidentified remains were later found at the site.

• 3:37Speaker 00

  It's unclear exactly the total number. So we'll wait until all of that gets sorted through before we plant a flag and say, all right, this is the final analysis. A separate service member was also killed in Iraq on Saturday during a controlled detonation of a drone, an Iranian drone that was down, but hadn't exploded. So not clear on the details of exactly how that person got caught up in what should have been a controlled demolition. So more details on that will be coming forth. That brings the U.S. death toll to somewhere around 17 or 18 since the war began in February. I'm seeing conflicting reports on that. Trump called the soldiers' deaths a very sad thing, adding that they were killed fighting to ensure that Iran never has access to a nuclear weapon,

• 4:22Speaker 00

  which has just become the de facto statement that they state over and over and over. I think everybody at this point understands that that seems a bit dubious to me. It certainly wasn't how, wasn't the messaging that we were first getting when this all re-kicked off. So keep that in mind. It is hard to know what exactly to believe at this stage. So take what I'm about to say with a grain of salt. But on social media, Iran appears to be very publicly thanking Jordan for helping them identify and target buildings that were housing U.S. troops. So I don't know if this is somebody trying to make Iran look bad. Obviously, given that we have bases in Jordan, that would heighten tensions between the U.S. and Jordan if it ends up being true. So I don't know if, you know, we're being trolled at this point on social media or if that's legit.

• 5:07Speaker 00

  So at this point, assume that that's just rumor. But I'll certainly be watching to see if anything more comes of that. Oil prices have been moving again. I'll just point people to the difference between the front end of the curve and the back end of the curve. So with a, an escalation in the destabilization of the Middle East, which of course we are absolutely awash in now, as I don't think anybody at this point believes that we're going to reach a negotiated settlement of this, not without a whole lot more things blowing up on both sides. So what will end up coming of all of this is a very big question. But you're going to get these initial transient movements in oil just based on the inability to get this stuff safely through the strait.

• 5:49Speaker 00

  But when you look at what does the market as a whole think are the either inflationary or deflationary pressures as you start leaking out even six months? And they're expecting deflation. So not seeing a lot of movement in the long run of that tale. So that would be what I keep my eyes on there. Because we have two sort of conflicting stories coming out of Iran right now, which is, oh, my God, like, energy prices are going to be skyrocketing. This is going to be inflationary. We're in for a rough time. And then the other, which in many ways is worse, which is, what do you mean going to be in really rough times? We're already in really rough times. We've been in a stealth recession for years at this point.

• 6:29Speaker 00

  And now it's just becoming absolutely impossible to avoid acknowledging that we're in the middle of this. And I'm sure we'll talk about this more in terms of the record rate at which people are opting out of the, not all opting out, but some people opting out of the labor force participation, and then others just not being able to find a way in. You put that together with the market betting that there are going to be deflationary pressures over the sort of mid to long term, not even just long term. And you start seeing that we are at the tail end of something economically that's been happening for a while. And we've been masking it here in the U.S. by spending money that we had saved up for a rainy day

• 7:14Speaker 00

  or just clocking dollars onto credit cards, which is the American way. And so you put that together with what's going on in China. They're in the middle of their 2008-style housing crisis that is just completely engulfing the entire Chinese economy. They're wiping out, it's like $18 trillion of household wealth, which is absolutely grueling. We talked about this last week. You start paralleling what's happening in China now with what happened to Japan in 1989 through the 90s. And you realize that when people lose that kind of household wealth, they start just pulling back economically massively. And so China's now, once again, changing the way that they report data

• 7:56Speaker 00

  to try to obfuscate the fact that their economies in real trouble. So, yeah, you've got the two biggest economies, both in the middle of multi-year pullbacks. So when you look at the long tail of the oil, even shutting down the Strait of Hormuz is only causing a temporary blip in people's long-term vision of what that means for the cost of energy. It's wild. It's wild. And when you really start paying attention to these numbers, it gets quite unnerving.

• 8:27Speaker 01

  Yep. And then on the back of that, we have rumors that Iran is considering a ground incursion into Kuwait to seize U.S. military bases. So it seems like this can only get worse with more boots on the ground. However, because we haven't felt the economic shocks, is that a positive for Trump that maybe we have a little bit more appetite for this war? Because oil is in 300. It doesn't put that type of pressure on us, at least right now?

• 8:51Speaker 00

  What a fascinating question. The, the very grueling, gut-wrenching answer is yes. So if, if you imagine the original predictions were oil's going to hit $200 a barrel.

• 9:07Speaker 00

  If we had gone to 200, stayed at 200 through all of this, if we are seeing 210, 220 on the horizon because things have only gotten worse, the pressure on Trump domestically and internationally would be grueling. And so, yes, this does buy him a lot of leeway. Now, you're bringing this up on the back of a ground incursion. Rumor, rumor, rumor.

• 9:32Speaker 00

  Those two things, I don't think belong hand in hand, though I think that $200 a barrel would have just precluded him pursuing the war at all, full stop. But, God, I'm projecting now. I want to believe that good sense will prevail, and he understands that body bag after body bag after body bag just would be something he will not survive in the midterms. And as a PSA, he's likely to lose the House, as that always happens. The Senate, though, probably not. If he lost the Senate, if he lost the House in the Senate, odds are he goes to jail. So, odds are he gets convicted of, he'll get impeached and then convicted. What that means, I actually don't know enough about how that kind of thing plays out. So, I'll take back that he ends up in prison.

• 10:17Speaker 00

  But nonetheless, that becomes, that'd be the first thing I'd go research. Like, what happens if you actually get convicted of an impeachment? So, on that front, he still has to worry about that tremendously. And I, God, do I like to believe that he has enough sense of self-preservation, because I certainly do not expect him to act in the best interests of the broader public. But do I think he has enough self-preservation to not go down that road? I really hope so. But he hasn't ruled it out. He has said very publicly that basically he's going to retain all options. But that would be tough. So, one thing, I don't know, I certainly didn't know just how big Carg Island is. So, Carg Island is at least the size of Iwo Jima. It might be a little bit bigger.

• 11:02Speaker 00

  I forget the exact stat that I saw. But Iwo Jima cost, what, 30,000 lives over a very short period of time? So, you start talking numbers like that, whoa. Americans already don't have an appetite for this conflict from the air. I can only imagine the extraordinary backlash that would come if we saw 30,000 troops get killed. Because, keep in mind that Iran could just torch that island themselves. And so, they have several times tried to bait us into a ground incursion, precisely so that they can rack up the body count. So, yeah, when your enemy wants something that badly,

• 11:47Speaker 00

  one of two things at play. Either they're trying to run some sort of, you know, psychological tactic, where the very thing they don't want, they're telling you they do want to try to like unnerv you, or they really do want it because they know how good that would be for them in terms of the ability to sitting duck, just take people out. There's another island in that chain as well that's also massive. So, if we try to ground incursion these islands to take them over, and I know this is separate from what you brought up, which is Kuwait. We'll get to that in a second. But sending them in, that one strikes me as just a terrible idea. You're really putting your troops in harm's way, which you're not going to survive politically, is my estimation of it right now. In terms of the Kuwait thing, that becomes a very interesting play

• 12:30Speaker 00

  for them to basically force us to defend one of our military bases. And so, now it's not about going us into showing up on their shores. It's about forcing our hand of, okay, we just invaded a sovereign nation. And, this is obviously, we're way out of our skis here. But they invaded a sovereign nation and took over one of your bases, assuming that they're able to pull it off. Who? You leaving that unresponded to would be crazy. You blowing up your own base would also be crazy. So, yeah, all of that would be a massive ratcheting up of the tensions here. Now, the question becomes, if Iran did that, what's going to be the public, the broader non-US backlash?

• 13:15Speaker 00

  Does that galvanize the Gulf countries? Does that put more antagonistic pressure on Iran? Those are going to be the calculations that Iran is going to have to run. There are rumors, and again, I'm trying to be very careful not to believe the propaganda that I'm most certainly being fed. But there are rumors that already the GCC nations are sort of refinding their sense of like, okay, this isn't about America. I don't have to be pro-America to be against Iran. So, if that comes to fruition, if Iran really is feeling that pressure, if Iran really is divided internally between their own hardliners and people that really do want to just join the world stage.

• 13:57Speaker 00

  And this is something that I think Americans do not have a full mental model of. Iran ejected out of the world stage back in 78, when they took over Iran with a revolutionary murderous theocratic regime, that by the way, killed the leftists that helped get them in power. This is going to be a new thing that I'm pushing down. As I was researching Peru because of this whole DSA thing, I was like, what the fuck? This is a thing that plays out over and over and over throughout history, and somehow we have just memory-holed all of this leftist violence. And the way that they will help these Marxist Leninist Maoist organizations come to power, which we are watching be attempted here in America right now, come to power.

• 14:41Speaker 00

  And then, when they get into power, time and time again, they're killed. And so, it's like, it is shocking to me that these guys fall for this. I really hope that I pulled the clip. But I saw a clip this morning of a guy who I believe had defected from Russia, and he was walking people through the exact playbook of using the useful idiots, as he called them, to, you get these leftists that helped the Marxists. Yeah, that's the one. Yeah, fuck, let's just play it right here. This is wild.

• 15:10Speaker 02

  You see, the useful idiots, the leftists who are idealistically believing in the beauty of Soviet socialist or communist or whatever system, when they get disillusioned, they become the worst enemies. That's why my KGB instructors specifically made the point, never bother with leftists. Forget about this political prostitute. Aim higher.

• 15:31Speaker 03

  But to eliminate the others, to execute the others, don't they serve some purpose? Wouldn't they be the ones we rely on?

• 15:36Speaker 02

  They serve purpose only at the stage of destabilization of a nation. For example, your leftists in the United States, all these professors and all these beautiful civil rights defenders, they are instrumental in the process of the subversion, only to destabilize the nation.

• 15:55Speaker 00

  When I heard him say that, that's what it feels like we're living through right now, through much of the West. Destabilization. Yeah. We're hitting pause for a moment, but there's plenty more ahead, so don't go anywhere. There's a reason Quince sells cashmere for $60, and it isn't the cashmere. It's real 100% Mongolian cashmere. It's the same stuff luxury labels charge a fortune for. Quince just works directly with ethical factories and cuts out the middleman. So, there's no need for a markup and no logo tax. The $60 goes to the actual sweater, not the fancy name on the tag. That's why everything they make runs 50 to 80% less. And it's not just the cashmere.

• 16:38Speaker 00

  I ordered a few things myself, their fleece joggers, a couple of their tees, which I wear obsessively. First thing I noticed was the quality. Soft, well-made, built to hold up. They make down jackets and wool outerwear now, too. So, upgrade your stuff to things you'll actually wear. Find your next fall favorites at Quince. Download the Quince app for app-exclusive offers or go to quince.com. Get free shipping on your order and 365-day returns, now available in Canada and the UK, too. And when Quince asks where you heard about them, let them know it was Impact Theory. It's the best way to support the show. Let's talk about what it means to actually be visible in today's day and age. When you build something public, whether it's a business or an audience,

• 17:23Speaker 00

  anything on social media, you become a target. This is something that legitimately keeps me up at night because our data isn't just on the obvious broker sites. It's on old news portals, public forums, obscure directories, places you would never think to look. That's where Incogni's exposure scanner comes in. It hunts down your personal information across the wider web, not just the 420-plus broker sites Incogni already removes your data from automatically. They can't harm you if they can't find you. Go to incogni.com/impact and use code IMPACT for 60% off an annual plan. Try it risk-free for 30 days.

• 18:06Speaker 00

  That's incogni, I-N-C-O-G-N-I, dot com slash impact and use code IMPACT. Let's talk about your sales pipeline reviews. If your CRM is half-empty fields and notes nobody finished, every review turns into guesswork. I've seen it so many times in my own sales team, and that's where today's sponsor, Pipe Drive, comes in. An intelligent AI-powered sales CRM that is loved by growing sales teams. Pipe Drive just launched meeting intelligence built right into the CRM. Before the call, it pulls the deal history and past conversations into one brief. During the call, it records and takes notes. After, it drafts the CRM updates for your rep to review and approve.

• 18:50Speaker 00

  The record stays complete, and you see what's actually happening. Switch to a CRM built by salespeople for salespeople and join the over 100,000 companies already using Pipe Drive. My link gets you an exclusive 30 days free instead of the usual 14-day trial. So, make sure you use it. No credit card or payment is needed. Just head to pipedrive.com/impact to get started today. That's pipedrive.com/impact, and you can be up and running in just minutes.

• 19:25Speaker 00

  Thanks for sticking around. Let's get right back into the action. You've got leftists that are, and I want to, I really hate that these have the same words. So you've got the left and the right, very evolutionarily advantageous that you have both. They hold each other in a delicate balance where you've got people pulling for compassion, to make sure that the group is protected and taken care of. And then you have people that are personal responsibility, innovation, pulling towards, we've got to build, we've got to create. They both have pathologies at the extreme, both are hyper useful when they're towards the middle. And they understand the need to work together. To me, it's just like a marriage. Quite literally, women tend towards the left, men tend towards the right.

• 20:09Speaker 00

  It is obviously not universal, but when that is working well, that's precisely the dynamic that you see when raising kids. And so you have this tension between, no, come on, they gotta suck it up, they gotta work. And then the mom being like, hold on, come to me, let me soothe you, let me take care of you. And that kind of thing is, you need both. You do not want one or the other. Now, as you radicalize and you get to the extremes, it becomes something totally different. So when I'm talking about leftists, it will inevitably get whipped up into seeming like a partisan attack. But the reality is that when you're talking about the thing that we're dealing with right now, is you have this game being played where the leftists, the radical leftists,

• 20:51Speaker 00

  not people who are left-leaning democrats or, you know, the very useful part of that. But when you're going way out, people that want to tear down capitalism, people that want to destroy the American system, all of that, that is extremely destabilizing of a country. And the thing that unfortunately I worry we're about to live through, though we've been through this before and we've somehow come out the other side. But when a country is destabilized, and we're going to talk about this when we get to Peru and the DSA. And yes, I'm extremely animated by all of this. And I want to make sure that I make my rational case over and over and over to try to get people to understand the mechanisms by which this stuff plays out. So he's talking about two beats of this.

• 21:35Speaker 00

  One, that leftists are extremely good at destabilizing a country, that what starts as compassion becomes resentment. And that resentment, you cannot understand the far left without that. So you've got this resentment, overproduction of elites. This is going to be, this has become a real pillar for my ability to understand and accurately map the likely actions that somebody will take as I try to look at this moment in American history. You have to understand resentment, how it, on the left, you can have these, what people call champagne socialists, but I'll say, people that grew up affluent and now are pushing for an ideology that would completely destroy all of the prosperity engine.

• 22:19Speaker 00

  And so, okay, he's talking about these two beats. One, that you've got the leftists as the useful idiots of a far more authoritarian style government that is not in any way, shape or form interested in the utopia. They understand the people talking about the utopia are very useful to usher in the people who are authoritarian and want the power. And again, over and over and over, those people that help you rise up end up literally being lined up against a wall and shot. And so that's the like crazy part of all of this. So those are the two things. The left destabilizes and then they end up being the useful idiots for people that are far more violent and extreme,

• 23:02Speaker 00

  that are going to ultimately cease power because that is the personality type that they represent. So yeah, it's wild. All right, let him keep going.

• 23:13Speaker 02

  Their job is completed. They are not needed anymore. They know too much. Some of them, when they get disillusioned, when they see that Marxist Leninist come to power, obviously they get offended. They think that they will come to power. That will never happen, of course. They will be lined up against the wall and shot. But they may turn into the most bitter enemies of Marxist Leninists when they come to power. And that's what happened in Nicaragua. You remember, most of these former Marxist Leninists were either put to prison or one of them split and now he's working against Sandinistas. It's the same pattern everywhere. The moment they serve their purpose, all the useful idiots are either be executed entirely,

• 23:56Speaker 02

  all the idealistically minded Marxists, or exiled or put in prisons like in Cuba. Many, many former Marxists are in Cuba, I mean, in prison.

• 24:05Speaker 00

  Dude, and it goes on and on. It's really wild. You saw the same thing in Iran. That's what triggered all this in my head. Is the leftists helped the Ayatollah come to power. Once he was in power, he had the leftists killed. Because they all had this moment of realization that, wait, that you didn't have the same ends that we had. You weren't trying to bring in socialist utopia where the workers control the means of production and we're living in this fantasy utopia. And I forget who said this, but it's a really interesting idea that when you're dealing with a leftist, what you're talking about is somebody who starts by mentally mapping what the utopia looks like and then working their way backwards to the world that they see now.

• 24:49Speaker 00

  And every gap between the way the world actually is and the utopia is considered a failing of the current state. Not that humans just aren't designed to have that kind of utopia. We talked about mouse utopia last week. It's like, humans are never going to get there. It's just not wired in animals to be that way. And somehow people brush that aside or just don't have the ability to see or understand it. I'm not sure. But once they realize, oh my God, you've been pulling for something completely different, that you have worn a mask this whole time that we saw eye to eye, enter Queers for Palestine, and now they will finally collide, but by then it's too late. And so that is a really, people need to have a mental model,

• 25:34Speaker 00

  regardless of what side of the political spectrum that you're on. You need to have a mental model that explains that. This is a fascinating thing about physics and why I'm always saying you want to get to the physics of something, whether I'm talking about in business, in politics, you want to get to the physics of it. And the reason you want to map physics as a discipline, as well as just getting to the cause and effect, which is what I mean by the physics, is that one of the tenants of the study of physics is that whatever hypothesis you put forward and say, this is how the universe really works, it must first describe the world that we actually see. Because the only thing that we know is true is that this is physics, right? This is all physics. All these things work.

• 26:17Speaker 00

  Now, you may have a misunderstanding of why this world exists the way that it exists, but any new hypothesis can't say, it can't invalidate the world that we see. It can say it's a hologram, whatever, but it's got to explain why and how we see the world that we see. And so if you're on the left and you're trying to explain to yourself where this is going and how this is actually functionally going to lead to utopia, you've got to show the mechanism by which it always fails. Okay, so yes, hey, the right, they always try to slap me around and say that this is never going to work because it's never worked in history. Let me walk you through why it has never worked in history. And if they walk me up to this point and then they go, the authoritarians end up killing the leftists.

• 27:01Speaker 00

  And so that's a big part of it, or they get rid of the cost signal, which we're going to talk about later. And so here's how we're going to reintroduce the cost signal. Here's how we're going to make sure we don't get murdered. It's like, okay, at least then they've got something that describes the world that I see, that shows that they understand this dynamic has played out over and over and over. And so they have a solution for that rather than a blindness. And right now, the only thing that I see is a repeated over and over blindness to the way that these dynamics play out. And this is a big part of why this is oftentimes young people that are doing this. First of all, they're the most likely to have the emotional reaction to being an overproduced elite. Meaning you've gotten all the education, you've taken on all the debt,

• 27:45Speaker 00

  you were told that you were going to be important, you were going to be somebody. And then you realize, oh shit, like I'm not anybody. I'm struggling to make enough money to justify all my education. I'm not as important as fast as I thought I would be or should be. And so those are the people, it's never, it's quite literally never the workers that rise up. It is always the overproduced elites. And so it is, this is so fascinating. It's so dangerous and I really hate this. But as like an amateur historian, this is unbelievably fascinating to watch this psychology, these algorithms that are eternally embedded in the human mind, play out over and over.

• 28:26Speaker 00

  History doesn't repeat, but it rhymes and it rhymes because our human psychology is banded. We are a certain way. We have a nature. And so when you drop us into, I'll shorthand it to, you drop us into a given economic scenario. And it's like, oh yeah, this is how humans respond in this economic scenario. Authoritarians will partner with leftists and they will march down a path of bringing in the utopia, which for one part of that equation is just, we rule everything, everybody does exactly what the fuck we say. We have complete and total control over the country. And the other is trying to bring in the world's most delusional, completely untethered by reality, vision of what the world could be or ought to be, but never will be because of human psychology.

• 29:11Speaker 00

  And then they collide and the most willing to murder wins always. And the most willing to murder is always going to be the person who was in it for power from the beginning.

• 29:24Speaker 01

  Got it. I want to double click on something you said a couple of minutes ago about the animal thing and about human nature. Animals aren't wired like that. I push back against that because I think humans are selectively categorized as animals when it's convenient for whatever narrative we're pushing.

• 29:39Speaker 00

  Not by me. There's no way you think that about me.

• 29:40Speaker 01

  I do, because I think like, no animals in nature charge rent, but we charge rent.

• 29:45Speaker 00

  What are you talking about? There is a huge animal. There's like nine billion of them and they charge rent.

• 29:51Speaker 01

  I've never seen a monkey charge rent.

• 29:52Speaker 00

  Yeah, monkeys don't because they don't have a prefrontal cortex, but.

• 29:55Speaker 01

  Okay, so I thought we were monkeys, so we're not monkeys.

• 29:58Speaker 00

  And then. We are monkeys, but we are.

• 30:00Speaker 01

  To monogamy, I can shift like.

• 30:01Speaker 00

  Well, so I want to make sure you're having an argument with me.

• 30:04Speaker 01

  No, no, yeah, yeah.

• 30:04Speaker 00

  Versus.

• 30:05Speaker 01

  You're saying this is like human, animals aren't wired like that. It doesn't work. It doesn't make sense.

• 30:09Speaker 00

  But do you feel that I have been eternally consistent on one thing? That you're having a biological experience and you must understand life through the lens of biology?

• 30:17Speaker 01

  Yes, um, but we were in physics just now, so I kind of want to separate those two things out. Cause yes, you're, you're a makeup, but you're a reaction of the chemicals inside of you. Okay, cool. Human nature specifically, though, I want to like zone in on that because human nature. In some aspect, we're innovative, we are, we're supposed to rise, we're supposed to create the world that we see in front of us. We're at the top of the animal kingdom, we're supposed to form the animal kingdom, we're not supposed to be products of the animal kingdom.

• 30:41Speaker 00

  That's it. Now you've left my belief system. So we are inextricably in the animal kingdom. We are, um, we have a different, uh, intellectual engine, just to make this about something that's. I think easier for people to understand. So you can have different cars that go different speeds, can carry different things, all of that. Um, but ultimately they're all cars, uh, or, or maybe, um, internal combustion engines. Let's say to keep it simple. Now that can be a rocket ship that can take us into outer space. Or it can be a Pinto that explodes when hit from behind and can barely make it to the grocery store. So eh, same idea, but very different scales.

• 31:23Speaker 00

  And what I'm saying is if you try to understand one is somehow mystical and separated from the rest, you will be eternally confused. It is the one issue that I have with humans is they see themselves as not being part of the animal kingdom. And I'm saying we're, we're the intellectual equivalent of an internal combustion engine. It operates on physics. There's nothing magical about it at all. Uh, and when you put certain things in, you will get certain things out with a high degree of predictability. And that is one of the earliest realizations in my life was that whatever I am, the thing that I perceive as myself. Is so trapped in my biology, there is no escape.

• 32:04Speaker 00

  And that's the, the thing that like guides my thinking is that I'm having a biological experience.

• 32:13Speaker 01

  But compared to any other animal, we're the only ones that can self-reflect. And because we're the only ones that can self-reflect, we're the only ones that can hold ourselves accountable. Because we're the only ones that hold ourselves accountable to a higher standard. I think that separates us from a different category. Dogs will be dogs, will always be dogs. Cats will be cats, will always be cats.

• 32:28Speaker 00

  If we want to debate that, I'm happy to debate it. That is not my view.

• 32:32Speaker 01

  You, you feel like no matter like.

• 32:35Speaker 00

  Well, first of all, I don't think we're the only animal that can self-reflect. So I think it's crows that recognize themselves in the mirror. If it isn't crows, there's another animal that just outright gets that, oh, that's me. So there are other animals that have a sense of this is me, I'm separate from other people. But they're gonna, like a crow's gonna behave in crow ways, a human's gonna behave in human ways. And so regardless of whether, um, we can differentiate ourselves based on that. I think it's pretty easy to say humans are different than crows. And so even if crows are super intelligent, I think they clock them at like a seven-year-old. So it's like, eh, that's pretty astonishing. But there are certainly things about our brain that make us unique.

• 33:17Speaker 00

  It just is still beholden to the biology. I don't know if we're progressing your argument. So I just want to make sure that we debate the right thing. You're not yet representing my views, which is fine. If you want to just put forward like, here's my thesis. And then I can respond to that and not get caught up as long as you understand you're not representing my worldview. We're good and I'm happy to address whatever you think.

• 33:39Speaker 01

  This came from the fact that where animals don't work that way. And my rebuttal to that is because we have a prefrontal cortex, because we have the power to self-reflect and improve. I'll make sure I add in that, that, that distinction. If any species on earth were to come up with a solution to, uh, society's problems, it would be the human. So I think too often we get caught up in, humans always do this thing, so humans are always going to do this thing. So then we kind of perpetuate the outcome. It's like you're always, everybody who grew up in this block is always going to be this type of thing. So you're, you're going to become that type of thing. And we've seen time and time again that we can break out of those pre-deceit, like preconceived notions for us. So I think humans as a, as a society, as a body, as a animal, quote unquote, I hate, just hate that framing.

• 34:25Speaker 01

  I think we can figure out solutions that we haven't seen before. I think we can figure out solutions. So when you just say animals don't work that way, that's why this thing can't work. That's the part that I'm like, well, there was a point in time where we didn't have money and we figured out how to make money work. There's a point in time we didn't have cars, we figured out a way to get transportation, we can't fly. So there's all these other things that society, humans are, are two-legged animals, we're only allowed to walk. And then we said, that's not true. So I think when we come to so many other things, we have circumvented what our predestined abilities were. And I think that we can keep doing this in other aspects of our lives, other aspects of society, other aspects in growing. Does that make sense? Am I crazy?

• 35:00Speaker 00

  It, well, you have internal logic and so it's very easy to track what your, um, hypothesis is, which is humans have the ability to change. Therefore, history does not need to be a prison. Uh, it can be an instruction manual that allows us to not repeat mistakes.

• 35:15Speaker 01

  Cool.

• 35:15Speaker 00

  So now I love that in terms of, um, I certainly believe that that's true at the individual level. And I believe that, um, in order to effectively describe the world that I see before my eyes, I have to accept that. It is true that even at massive scale, almost the globe, not quite, but almost at the global level. We've proven post-World War II that we can have like this incredibly extended period of peace. If you're aligned with the world's dominant power. The second you're not aligned with the world's dominant power, then we fuck you up in whatever way we decide we're going to fuck you up. We extract your resources, et cetera, et cetera.

• 35:55Speaker 00

  But without miring the argument in that, we did show like, if you're ignorant to what happened to Japan after World War II. Um, you're just missing a huge insight into the human psyche. Um, if you've never contrasted what happened in Germany versus what happened in Japan. Uh, you're ignorant to a real piece of the puzzle. But if you see what we're going through now as somehow a surprise. That history has never looked like this before. Um, you're clearly a historic. So this is a moment that repeats over and over and over. Now, if I wanted to take your frame and go, okay, well, we know that humans can change.

• 36:38Speaker 00

  And if humans can change, then we should be able to get a different outcome. Um, I would say all of that makes sense. You have to get down to cause and effect. And what I think you will encounter as you try to run the cause and effect is. Um, how do you go through an economic disruption, which is what we're going through right now, without this happening again? And the answer, there are two things. I guarantee what I'm about to say is a failure of imagination. And there's three through 3,000 options that I just can't imagine right now. But there are two options on the table right now for how we would eject out of the historical rhyme. And they would be, um, one, AI, that AI super intelligence actually ends up being a thing.

• 37:21Speaker 00

  It's not a thing yet, but let's say that it were a thing. And that people would willingly give themselves over to it because it yields such superior results. And so everybody, even myself goes, hey, I'm totally on board with this now. I want AI to just tell me what to do and I'm just going to do it. Because when I do that, even though sometimes it's super counterintuitive, it's made my life better. Um, and the, I just can't stop myself from saying this out loud. It is a little too, um, reminiscent though of when God, I think, tells Job to kill his son. And so.

• 37:56Speaker 01

  Abraham.

• 37:56Speaker 00

  Abraham, okay, sorry, my, uh, biblical knowledge is lacking here. So, uh, Abraham is told to kill his son. He's like, well, it is God. So, um, that makes me a little nervous. But the other one would be that we're able to, again, because of AI. But we're able to actually alter our DNA such that we don't have some of the, um, pettinesses. The ambitions or whatever that cause us to be a murderous species.

• 38:28Speaker 01

  And that's, you think that's at the DNA level?

• 38:30Speaker 00

  That is for sure.

• 38:31Speaker 01

  Got it. Okay.

• 38:32Speaker 00

  Now we have, uh, nature that requires nurture. So we are very much a product of our time and our circumstances. So I'm not saying that it's just DNA and it doesn't matter when you're born. Uh, our DNA is designed to be like, what's the world like? What do I need to adapt to? And what direction am I going to move? And because it's the blind watchmaker, um, it's not like this was done with high intent. So there are going to be weird things that will pop up that may be unexpected. Uh, as we think about trying to reshape, um, our destinies. In that we may shape ourselves in a way that still requires nurture.

• 39:11Speaker 00

  And now we've never run the experiment of now with our updated, um, processing of the physical world. What does the nurture of this environment derange us? How does it derange us? In what way? And so, man, does it scare me, the idea of editing certainly our germ line, which would be the thing you pass on to your kids. That's terrifying. Uh, if people want to run experiments on themselves. Um, that could be a very interesting way to start reaching conclusions. But anyway, those are the two ways right now where we could escape it. But as of this moment, neither of those are real, nor do I think there are any other real ones that I'm just unaware of. And so we can expect, despite the fact that people can change.

• 39:53Speaker 00

  When you start scaling up, up, up, up, up, you suddenly run into humans en masse. Humans at sufficient scale are distressingly easy to predict. We're hitting pause for a moment, but there's plenty more ahead, so don't go anywhere. Let's talk about how much you're paying to stay safe online. Count it up. A VPN, a password manager, something to block ads and trackers. The services scrub your data off of broker lists, a tool to flag scam emails. That's five, five subscriptions, apps, logins, and most people still have gaps. That's the problem Surfshark solves. It's not a VPN.

• 40:35Speaker 00

  It's an all-in-one security suite, one tool that protects your connection, your personal info and your devices all at the same time. Go to surfshark.com slash Tom B or use code TOMB for four extra months of Surfshark. Backed by a 30-day money-back guarantee. That's S U R F S H A R K dot com slash Tom B. Surfshark dot com slash Tom B. Use code TOMB for four extra months of Surfshark.

• 41:12Speaker 00

  Thanks for sticking around. Let's get right back into the action.

• 41:16Speaker 01

  Okay, I feel like we were supposed to do like a DSA pit stop, but I feel like we kind of got into a bit of a DSA potholes. I feel like at this point, we might as well keep it going.

• 41:26Speaker 00

  Wow, that's interesting. So that has not felt good to you in some way?

• 41:29Speaker 01

  No, no, no, no, no. Like, we were like, yeah, we're gonna talk about that later. We're gonna talk about it. And then I felt like we just started talking about it.

• 41:33Speaker 00

  We got on the lane. We took the best on-ramp ever. We're freeway speeds. It's an autobahn. That's how I feel. No potholes.

• 41:42Speaker 01

  I feel like this is the perfect segue to jump into Peru and kind of the debrief of what happened there.

• 41:47Speaker 00

  Let's do it. This one's wild. If you guys didn't see it, the DSA co-chair Gustavo Gordillo went on Fox News, told the world that if a bodega owner can't compete with a state-sponsored grocery store backed by billions of dollars of taxpayer funding, then maybe they just shouldn't be in business in the first place. If you don't believe me, let's hear it straight from the horse's mouth. We'll play the clip. It probably doesn't start right with that statement, but it's worth seeing the whole thing.

• 42:11Speaker 04

  So they're up, like, breaking ground on one grocery store so far. It's gonna cost $30 million to build a grocery store. In what world does it make sense to build a $30 million grocery store and put competitive pressure on the bodegas that are in the neighborhood?

• 42:27Speaker 05

  I think that what we saw in the mayoral campaign is the mayor was able to build a movement that inspired people to believe that we could have a government that works for ordinary people, that is actually responsive to the working class.

• 42:41Speaker 00

  That makes me wanna chew glass. I wanna crawl through this fucking TV, dude.

• 42:47Speaker 01

  Crazy deflection.

• 42:48Speaker 00

  Crazy deflection. And the DSA is so good at talking points. All politicians are fucking terrible at this. They all do this. So I fully acknowledge, this is not just a them thing. But because their policies are so radical, I find that these guys have to do it more than most.

• 43:05Speaker 04

  Bodega owner, how would you feel if the government opened a big grocery store right next to your bodega?

• 43:12Speaker 05

  If one publicly-owned grocery store that brings prices down in the neighborhood is enough to put someone out of business, then maybe they shouldn't have been in that business in the first place.

• 43:23Speaker 00

  Fuck this kid.

• 43:24Speaker 01

  I mean, that was the Amazon-Walmart's model, right? Like, you know?

• 43:27Speaker 06

  Yeah, well, and we already have government-owned grocery stores.

• 43:30Speaker 00

  Okay, hold on, hold on. Hold the phone. So I know what I'm arguing against. Drew, I read yours to be sarcastic to bring up a point. Ryan, I read yours to be sincere. Do you think, and by the way, if I'm wrong about you and you really think this kid's onto something?

• 43:45Speaker 01

  I'm trolling.

• 43:47Speaker 00

  Do you really believe, like, what the fuck the problem is? Like, give me a grocery run.

• 43:51Speaker 06

  No, no, what I'm saying is, I just don't see the fuss with this kind of stuff, because we already have, well, we already have, we already have military grocery stores, for military folks. Like, I'm not saying we should have these, but what I'm saying is, I think people act like it's the spawn of Satan. You know what I mean? I think it's like, this is the worst thing that could ever happen, ever. When to Drew's point, there is something true about Walmart, kinda just closed all these mom-and-pops already, and Target's already going after, you know? So it's not that I'm like, ooh, grocery stores. It's just, I think it's a little, like, Fox News is a little scared of this stuff for no reason.

• 44:24Speaker 00

  Allow me to retort. That, we have to get that as a sound. It's Samuel L. Jackson from Pulp Fiction. I need that shit on speed dial. Okay, that's the craziest thing I've ever heard you say, and I mean that sincerely, and with as much aggression as the law will allow me to place on it. Here's why this is absurd. Okay, so what Amazon does to come in, what Walmart does to come in and clean all of this out, is they look at a system and they realize either they can achieve an economy of scale, or they can do something better than other people, and that's going to allow them to survive on thinner margins. And so they use the competitive force of being a more efficient business

• 45:08Speaker 00

  to allow them to get better negotiating power with the different people that are selling into them, to somebody who has sold into Amazon. This is going back a ways now, because everybody's used to it being different. But you used to go pitch Amazon and say, "I want you to carry this product." And the way that they would treat you was just absolutely grotesque. It was horrible, and I hated them. But at the same time, I'm like, laughing to myself, because I'm gonna go home and use Amazon. Because as a service, as a customer, it is so much superior than my other options, that it's going to mean what it's going to mean to sellers. Because the public is saying, "I value this thing." Now, what people don't understand, when you have a corporation that's doing that, where they are at risk,

• 45:52Speaker 00

  they are aggregating capital from investors, and they're saying, "Hey, this is my bet, that we can build this thing, that customers are gonna like more, we're gonna have to do it profitably. We're gonna create all these jobs and all that, and we're going to evolve the way that commerce works, because we found a new level of efficiency." Okay, that's the Amazon story. The Walmart story is actually utterly fascinating. A guy that would literally go to all of his competitors, walk the stores, and figure out all the things that they were doing wrong, and how they could do them better in their store, and is a classic case of a guy just out-entrepreneur-ing anybody else. And so they end up being able to do what Walmart ends up doing. In both cases, they are not publicly funded, so they are not taking anybody's tax dollars.

• 46:36Speaker 00

  They are just building a superior business on the back of selfishness and innovation. It is absolutely brilliant. This is, oh god, Joseph Smith? I always get him confused with the guy that founded Mormonism. Who wrote The Wealth of Nations? Whatever that fuck guy's name is. Adam Smith, thank you. I always confuse those two. Okay, Adam Smith ends up having this insane realization that, wait a second, we can build a better world by tapping into people's selfishness. Instead of pretending that that's not a thing, instead of asking people to be these utopian idealists, let's just go, this guy legitimately wants to make a ton of money. He wants to be richer than everybody else. He wants to lord it over people in his family. He wants to be the asshole at the country club that's richer than everybody else.

• 47:19Speaker 00

  That's his motivation. Whether it's secret, or whether he's wearing it on his sleeve, it doesn't matter. I'm gonna put that guy in a legal box, where the only way he can do that is by adding value to people, such that they say, "I would rather have your service, your product, than my money." And if that guy executes that well enough, he really can be the asshole in his family, in his country club, that's lording it over everybody, and I'm richer than you. But nobody has to care about that guy being an asshole, because he has, even if it's for the worst motives in the universe, he has made their life better. They can afford more. They are materially richer, because this guy wanted to be an asshole. Now, obviously, as an entrepreneur who's not motivated like that, I think I can just let you run

• 48:03Speaker 00

  with the worst interpretation ever, and you still get an extraordinary world. If, on the other hand, you have the government come in, and they have put a literal gun to people's head, and said, "I will put you in jail if you do not give me tax money, and now I'm going to spend that tax money however I want," you end up deranging things in several ways. First of all, you get rid of the thing that the market absolutely needs to function well, which is price signal. This is one of those things that you'll hear people say all the time. They are trying to get the average, non-economically-inclined person to understand, "Hey, there is a magical thing. There is a magical fucking thing, and that thing is a price signal."

• 48:45Speaker 00

  And when you get rid of that magical thing, that super-necessary thing, then the economy dies. So you can think of, there is an electrical impulse in the body that tells your heart when to beat. If you disrupt that electrical signal, you die. Okay? So this is why people get pacemakers and shit like that, put in their body to be like, "Uh-oh, this thing has a hard time maintaining its electrical signal, and so we're just gonna give it that pulse when it gets out of whack." That's the price signal. The price signal says, "I'm trying to build something that people in the neighborhood want, but I don't know what it is that they want." And so all of a sudden, the only way for me to know is, what do they buy, what do they not buy? This is why people that have never done a store tend to go out of business, because they don't have all of that information. So if you're about to start a bodega, the first thing you wanna do

• 49:29Speaker 00

  is go find somebody that's been running a bodega for 20 years. They know all the ways that you're gonna fall down. When I first got into comics, I took the former president of DC Comics out to lunch, and I asked him one question. "Why am I going to fail?" Not, "How do I make sure I succeed?" Why am I going to fail? I wanted to know all of the pitfalls. And so that was incredibly useful. So you're always trying to figure out, there is a thing I am blind to. What is that thing? The price signal answers that question on the whatever, 5,000 different items that you have in the store, that no one is gonna be able to guess at correctly. And when taxpayers come in and pay for everything, one, there is no incentive for that state-run store

• 50:10Speaker 00

  to be efficient, and so guess what? They won't be. And this is why governments just get completely insanely bloated, because they're going to paper over all the lunacy of that organization. No matter how dumb they get, no matter how what they're doing is not what people want, it doesn't matter. They're gonna keep funding it. The second way that it deranges it is it destroys the competition in the neighborhood. Each of those bodegas should be competing to make people walk a little bit farther to come to their bodega, instead of the next one. And one of the most obvious ways to compete is already on price. So unless you're saying, "These guys are all just a cartel, and they're getting together, and they are colluding to set prices," the very thing that a smart bodega owner is going to do is say,

• 50:54Speaker 00

  "Oh, I'm gonna survive on thinner margins, and I'm gonna make sure that people come to my bodega, and I'm gonna make it up on volume." And that's how the consumer wins. The reason that state-owned entities break everything is they have no impulse for efficiency. They do not innovate. The very thing that a free market brings out of people, innovation, because of the pressure to stay alive, which goes away, because this is a state-backed organization. And then, because they lose the price signal, it all goes to hell in a handbasket. And so now, the other bodegas end up going out of business, because they can't compete on price. And so you're left with only bodegas that are run by the state, that don't have a price signal,

• 51:38Speaker 00

  that have no impulse for efficiency, that do not innovate, and so the customer ends up losing and losing and losing. So what happens? When you artificially lower prices while demolishing the service that you provide to people?

• 51:54Speaker 00

  You end up in a position where the price can't go up. And so you just have empty shelves because eventually you run into somebody that says, "I can't afford to make my insert raw ingredient that that store requires." So, hey, let's take one that I'm intimately familiar with, protein bars. And let's say you have done some incredible innovation that allows the bar to taste like it has sugar, but doesn't. But you pay for much higher quality ingredients than the next person. And so your margins are thinner than the next person. And by the way, your prices are higher than the next person because you're doing all of this stuff that's just more expensive. Because first of all, you're innovating on all of it. So it's costing you an absolute fucking fortune. I used to walk people in to show them what's known as a slabbing machine.

• 52:38Speaker 00

  And I would say, "Let me show you my Ferrari." Because it costs as much as a Ferrari. But instead of me having the Ferrari out in the driveway, I turned it into something that allowed me to innovate and make a product for other people. So we're doing all of that. We're taking all of that risk. We're innovating. We're giving people something they want. But then California, through no fault of mine, by the way, has a drought. And this causes the price of almonds to skyrocket. Now, the vast majority of our products were made with almonds. I've just now had the price of almonds go up because there's a drought in California. And hey, guess what? Price signal. The almond growers go, "Well, motherfuckers, this is more expensive for us. So it's going to be more expensive for you. You guys are going to have to bid by telling me how serious you are about your business."

• 53:23Speaker 00

  The weak businesses fold. Strong businesses like ours were like, "All right, we'll pay more for the almonds." So we pay more for the almonds. Now, we're going to eat as much of that as we can, but we're not going to eat it to the point that we go out of business. So at some point, I may have to raise my prices. If the bodega goes, no. Now what the fuck am I going to do? Well, I can't, I either can't sell you the bar, or if they're all like that, I just can't make the bar. Because you're telling me that I can't make enough money to stay in business. You don't fucking know about the almonds. You don't need to know about the almonds. You're, the, the number of ingredients that go into all the items in your store, you could never fucking know. You sell batteries, condoms, fucking protein bars and everything in between. You don't fucking know what's going on, like in lithium ion batteries.

• 54:08Speaker 00

  Get the fuck out of here. So what you do is you just go, "Well, I, because I'll never know, I'm just going to let the free market do what the free market does, which is deliver a price signal." Dude, the, the staggering level of ignorance that these DSA guys show, they, they are so blind to the things that they don't know. Because, and here's where I'm going to go off the rails, but the effeminization of these guys is fucking maddening. And then on top of that, they in no way, shape or form have any humility in the face of the things that they don't know. They have never built anything in their lives. They are just soaked in resentment of other people having more than they have.

• 54:50Speaker 00

  And so there is no sense of like, "The tribe was like, bro, you're going out into the wilderness for a week. We really hope you survive. And when you come back, you will be greeted as an adult." We don't do that anymore. There is an incredible book I really hope everybody reads called The Power of Myth. And Joseph Campbell puts in the book a hypothesis that a big part of the problems facing modern society, and he wrote this shit like in the 60s. The problem facing modern society is that we do not do coming of age rituals anymore. And so there is no transition between I am a child and I'm an adult. This is what you see playing out with homeboy. Because if that motherfucker really had the, by the way,

• 55:32Speaker 00

  the things that I'm about to say are actual, real things that people used to do. We're going to send the kid out into the woods and you have to kill whatever the big scary animal is. I don't remember if it was really a line or some shit, but insert scary wildebeest, whatever. And don't come back until you have killed said wildebeest. And so they would go out and some of them would just die. And you didn't make it. Well, bummer kid. But if you want to be an adult, if you want to show that you're going to have a stake in this society, you've got to go do hard thing. There are other tribes where they would put big fucking fish hooks in people's chest or their back, and they would hoist them the fuck up. And literally, they would just be hanging by their own flesh. And they would go on whatever fucking spiritual quest they were going to do. And they had to do that shit.

• 56:17Speaker 00

  You have The Tame One, but Nelson Mandela wrote about this in The Long Walk to Freedom. They get whatever kids are turning 14 or 15, I forget, or 13, whatever it was, somewhere in that age. And they strip them bucket ass naked. And they bring them into the center of the village. They sit them down. They tell them to sit with their legs spread as wide as they can. And then the chieftain, the shaman, whatever, comes with a fucking rock that has been turned into a blade. He grabs the foreskin on your dick and just shunk, cuts it off, lets your dick go. And then you are supposed to scream this like warrior statement about being some badass tough motherfucker, whatever.

• 57:01Speaker 00

  And then they cover you in like this clay. And then a young woman comes and wipes off all the clay. Like, what?

• 57:16Speaker 01

  You hit me at the last one.

• 57:16Speaker 00

  And, but here's the thing.

• 57:19Speaker 01

  My boombum button is not working.

• 57:21Speaker 00

  No, no, you don't need a boombum button. Because I really think that's part of it. It's like you're, you're at your most vulnerable. Obviously, this is not a time to get an erection or anything like that. But you're, you're in this super vulnerable position. You've just sort of proclaimed your masculinity. And the awesome thing about Nelson Mandela is he confesses that he almost forgot to say the prayer because it hurts so much. And so he felt like this kind of weak guy and like it stuck in his head that like, "Fuck, I didn't like say it like hardcore enough." But when you put people through something and it's like, "Oh shit." Like I had to do a hard thing. I had to suffer in some way or prove myself in some way. On the other side of that, you really are a changed person.

• 58:04Speaker 00

  And man, like without some of these signals of having to toughen up, having to do hard things, knowing that there's a transitionary moment from childhood to adulthood, like all of that stuff, there begin to be deranging things that happen. The overproduction of elites meets this effeminization of culture. And you find yourself in a situation where people actually say the fucking words, which the audacity of this kid to say, "If you tell a landlord that, oh, you're making double digit, double digit profit margins, you have no right to do that. And so this is cruelty to say that if you can't afford rent in New York City, you should move somewhere else." That's cruel.

• 58:49Speaker 00

  But if we put all of the bodegas out of business, it's not cruel to say, "Well, maybe you just shouldn't have been in business in the first place, even though we're backed by billions of taxpayer dollars." Get the fuck out of here. That kid can eat an entire bag of dicks. Like that is the most insane break the engine of prosperity shit ever. And it is entirely because people have not had to actually go build something and be on the hook for all the fucking risk of trying to keep something going, of understanding how things actually work. They're not coming to the world with the appropriate amount of humility of saying, "Yo, this engine of prosperity is incredible and we need to protect it." And there's a saying called Chesterton's fence.

• 59:32Speaker 00

  Chesterton was walking through the English countryside with a guy. They see a fence and the guy goes, "Hey, uh, I don't know what that fence does. Let's take it down." And Chesterton said, "Hold on. The fact that we don't know what it's for is the very reason we need to leave that fence there. Once we understand what the fence is for, if we realize that thing is no longer needed, then we can take down the fence." But when you don't understand something, to say that it should be gotten rid of, when you don't fucking understand it in the first place is civilizational suicide. It is so ridiculously stupid. You're living in this period of stability and prosperity. And you look at that and you start wanting to pull everything apart without having any idea what's on the other side of this. How do I know? Because this fuckwit himself, his parents fled Peru during what was known as the Shining Path.

• 1:00:17Speaker 00

  The Shining Path was one of the most bloody eras in Peru's history, where you had Maoists trying to take over the country. And he's saying, well, let him say it himself. But he's saying, "Well, the reason that my family fled Peru was because of US meddling. And I've got, unfortunately for him, some historical facts to walk people through that show that that's just stupid and is not the case." But nonetheless, let's hear it from my man first.

• 1:00:42Speaker 01

  I was not queued up. I'm sorry. I'm still on the 40 dot, I'm still on the circumstance rituals, the foreskin rituals. Okay, we're going back to Peru. This was the 49 clip. I feel like that was the clip from Peru.

• 1:00:56Speaker 00

  Yeah, yeah, we were, you just needed to hit play.

• 1:00:58Speaker 01

  Oh, so we had to finish it?

• 1:00:59Speaker 00

  It was the same one. Yeah, yeah, yeah.

• 1:01:00Speaker 01

  Oh, I thought we went through it. Yeah, because he, he nailed it. This is the 49.

• 1:01:04Speaker 00

  This is a short one. There, there is a longer one. So if you just search for Gustavo Gordillo Fox News.

• 1:01:11Speaker 01

  Copy.

• 1:01:11Speaker 00

  It will come up for sure.

• 1:01:13Speaker 01

  Okay.

• 1:01:13Speaker 00

  Because this is like a 14 minute interview.

• 1:01:15Speaker 01

  I have a couple of rebuttals.

• 1:01:18Speaker 01

  Two of them are from the chat.

• 1:01:19Speaker 00

  Yep.

• 1:01:20Speaker 01

  One of them is me trying to combine everything together.

• 1:01:23Speaker 00

  Yep.

• 1:01:23Speaker 01

  I don't know if I should just list all three and just let you kind of.

• 1:01:25Speaker 00

  Well, take them one at a time, but.

• 1:01:27Speaker 01

  Uh, first, um, in NYC right now, Walmarts are illegal to operate. This is New York City, like city, of course, in New York State, there are Walmarts.

• 1:01:36Speaker 00

  Yep.

• 1:01:37Speaker 01

  The fear was a Walmart opening in Manhattan will kill all the bodegas, all the Duane Reade stores, stuff like that. So.

• 1:01:44Speaker 00

  It would have, by the way, almost certainly.

• 1:01:45Speaker 01

  No, a hundred percent. So in your point, he is missing something that his own city that he thinks is championing to do it. However, in the grand scheme of things, in the US national, like in the US, Amazon does have price controls, they are price fixing, there's algorithmic pricing. So there are certain advantages that a larger company would have that smaller companies won't have.

• 1:02:04Speaker 00

  Yes.

• 1:02:05Speaker 01

  Is that different than government? And if we're mad that the government is fixing the prices, why aren't we mad that the big tech thing, people aren't fixing prices as well?

• 1:02:12Speaker 00

  Well, so I think we have to be very careful with fixing prices. So Amazon is using their economies of scale to bully everybody.

• 1:02:19Speaker 01

  Mm hmm.

• 1:02:20Speaker 00

  And if we as consumers actually hate that, and it's not just performatory, uh, then we should stop buying from Amazon. But people are not going to because the product and service is so much better. Now, if we want to say, Amazon must be broken up, this is crazy. They're using things like Amazon Web Services to funnel money back into the side of the business that isn't making money. And so they can do loss leaders and blah, blah, blah. Like there, I haven't looked at it closely enough, so I do not have a take on that. But I definitely have a general standing take on monopolies. And so if the government found itself like breaking companies up more, I probably wouldn't push back too hard on that. I would get it. Um, so yeah, you don't want monopolies because companies

• 1:03:01Speaker 00

  will go in and bully. But because I lived through this and knew I'm not going to stop buying from Amazon, even though they're making things miserable for me as somebody trying to sell. This wasn't Quest, by the way. Uh, for a long time, we didn't sell Quest on Amazon for this very reason. Uh, but my product before that, which was software, that was like a whole different thing. And so being on Amazon would have been transformative for the business, but we couldn't sell at profit margins that made it make sense. Anyway. So, um, that's where it's when through a legislative process, people say, okay, listen, we want to regionally protect ourselves. We believe that mom and pop shops, even though both Amazon, Walmart, those guys are subject to price signals, they are subject to having

• 1:03:46Speaker 00

  to please their customers. We think that there's, um, a soullessness or a, um, scale that we worry will create a vulnerability.

• 1:03:55Speaker 01

  Mm hmm.

• 1:03:55Speaker 00

  Cool. So if you guys want to come in and say, like, hey, this is the type of, um, character that we want our area to have, then by all means, if you don't understand economics and you're saying, we want the taxpayers to foot the bill, that's where I'm like, get the fuck out of here. Those guys are saying, one, um, style of capitalism, we think lacks character and/or creates a vulnerability. And so we're just going to make a regulatory environment where a certain type of company is advantaged. It's meddling, you gotta be careful, but they have real things to be concerned about. Cool. Capitalism for capitalism-ish. We'll let that slide. When you start going, the bodega owner is

• 1:04:40Speaker 00

  going to pay for his own demise through his tax dollars. That's where I'm like, get the fuck out of here. That's crazy.

• 1:04:44Speaker 01

  Got you. See delineation? Got the Peru clip pulled up.

• 1:04:47Speaker 04

  Other, your family came here from Peru, um, really in the middle of the heat of the shining path. They were Maoist communist guerrillas in Peru. So why did your family come to America?

• 1:05:00Speaker 05

  The economic situation in South America and in Peru was in a really bad place. But I think that much of, uh, what we could say is responsible for that actually was, um, the imposition of capitalism and, um, American imperialism in many cases is actually what brings, uh, immigrants, um, to the US outside, uh, coming out of Latin America. And.

• 1:05:28Speaker 04

  So they come here because?

• 1:05:29Speaker 00

  She's about to make a good point, but I think that instead it's better to challenge his direct assertion. So what she's about to say is that, hold on a second, you're saying America bad, America imperialist. So you leave Peru and go into the belly of the beast? Like, what are you talking about? Um, let's say that that were true, then it makes sense to come to America. Because you're like, well, they're destabilizing these countries to stabilize themselves. So yes, I would rather go live in the belly of the beast. I accept now that I'm a part of the problem, but fuck it. I'm going to raise my kids in a better place. So even if you accept his framing, which would be ahistorical, but even if you were to accept his framing, it does make sense. So I don't think she has

• 1:06:14Speaker 00

  a strong argument there. Unfortunately, he doesn't really have a way to say what I just said, so I'll make his argument for him. Um, so that is, to me, completely logical. Now, I have a feeling that isn't what happens. She frames this in a weird way, and he oddly doesn't push back, and I don't quite know what to make of it. But from the research that I've done, I don't think his parents were Maoists, though that is my initial read on what she was saying.

• 1:06:37Speaker 01

  Yeah.

• 1:06:38Speaker 00

  He doesn't correct her. Uh, but I don't think that was true. So anyway, I don't know. That maybe in the fullness of time, we realized they were Maoists and they raised him to be a good Maoist. I don't know. But, um, I like to make things harder. So let's assume that they weren't Maoists, that they just wanted him to have a better life. So then to challenge what he said, you've got to directly confront, does the US go into these countries, destabilize them? And so now it makes sense that you would want to flee and come to America for the reasons that I laid out, or, uh, does that not make sense? Now, as I've said many times, whenever somebody puts forward a hypothesis, the great news is that that will make predictions. So if that's true, so he makes a prediction, hey, the reason that Peru was in rough shape was because of America. Okay, if that were

• 1:07:21Speaker 00

  true, as American imperialism gets defeated from the inside, which, hey, great news, it did in Peru, then you would expect things to get better. I've got some bad news. As soon as they booted America out, things got much, much, much worse. So let's run through some hits from Peru. So from 1968 to 1980, Peru was run by military governments. The first phase, under General Velasco, tried a sweeping left nationalist program, nationalizing industries, expropriating, which I guess I could be here. Uh, so if you want to cue this up, I actually have this, Eric, down, so I don't have to be looking at my screen. Um, but the, when they were nationalizing the industries, um, kicking out the foreign

• 1:08:06Speaker 00

  countries and running one of Latin America's most ambitious land reforms, the land reform broke up the old hierarchies, but, uh, the haciendas, but it largely failed the highland peasants that it was supposed to help. So this goes back to the very thing that I'm trying to get people to understand, which is that they say that they're here for the workers, but the workers are never the ones that do the rising up themselves, and they're never the ones that benefit. So it ends up right there. You're good. So much of the best land ends up going to the coastal cooperatives. Hey, does that sound familiar? We talk about the coastal elites here all the fucking time. The poor Andean regions, uh, end up getting

• 1:08:44Speaker 00

  little productive benefit. So the very workers, the backs of whom on which you raise your Maoist propaganda to the forefront, those guys don't end up getting help because what they get is raised expectations and then just disappointment. The old world order is dismantled, but they don't have anything to replace it. And then guess what steps into that vacuum? You get the, um, the terror brought by the, the Maoist organizations, run by a guy named Guzman. So he then sweeps into this hole. You also have debt hangover, which you guys will not be surprised to hear that there's these economic, uh, requirements

• 1:09:25Speaker 00

  for any of this to kick off. The military governments ended up borrowing super heavily. Guess why? Because they don't have price signals. So if they want to fund their utopian programs, they've got to borrow to do it. So they borrow like absolute crazy. So that was in the mid seventies when the, the bill finally comes due, Peru hits this just severe balance of payment crisis in 77 and 78. They go to the IMF, the IMF forces austerity on them. So they get subsidy cuts, devaluations, wage compression gets hit hard. So real wages are now falling. There were massive general strikes in 77 and 78. And this is all the immediate backdrop to the shining path launching in 1980. So you've got a country where living

• 1:10:08Speaker 00

  standards have been falling for years and the state had visibly failed at both its, um, statist experiment. So we're, we're going to get everybody kicked out of here. Uh, we want to run this. So American imperialism is gone, baby. The state owns everything. So this dumbass is going to call for the same thing here in America. But instead of pointing you at Peru, where what he's talking about has actually been tried, he's going to try to bamboozle you and say, we want a Nordic model, which is absolute horseshit. We can happily go through that. So, uh, in Peru, we see these guys running the extreme leftist playbook, the Marxist Leninist Maoist of it all, and it ends up absolutely destroying

• 1:10:51Speaker 00

  the country. So the shining path, uh, which is the Maoist guerrilla insurgency, they terrorized Peru from the like early eighties through the nineties. It ranks among the most violent internal conflicts in Latin American history. This is all after you get rid of the US. Because, listen, I'm not saying that the US hasn't gone into countries and destabilized them. I'm not saying a bunch of, uh, Western countries, European countries haven't done the same. But the problem is that when you boot them out, if you do not have a plan for what comes after, or if your plan is some, uh, foolhardy utopian fantasy that is never going to come true because of the realities of power and violence and the fact that humans are petty, then you're going to be just completely bowled over by chaos, which is

• 1:11:35Speaker 00

  exactly what happens. So in 1980, the same, uh, day Peru held its first democratic election, by the way, after 12 years of military rule, uh, Shining Path launches its arm struggle. They burn ballot boxes, do all kinds of crazy shit. From there, it escalates very fast. You've got assassination of local officials, massacres of villages that refuse to cooperate.

• 1:11:57Speaker 00

  Let that one sit with you for a minute. Bombings in Lima, blowing up power lines to blackout the Capitol. And what ends up making that group distinctive is their just absolute brutality towards, guess who? The very peasants that they claim to represent. Okay, we were talking about at the top of the show, what ends up happening? The leftists pair up with the authoritarians. The authoritarians just want power, but they're gonna wear this over here like a fucking skin suit, which is exactly what the DSA is doing with the Democratic Party. Boys and girls, we've got to wake up to what's really playing out right now. So this group ends up executing community leaders, which by the way, would have all been left-leaning. So this is when they start to eat their own.

• 1:12:40Speaker 00

  Imposed forced labor, also known as slavery, and slaughtered entire villages deemed insufficiently loyal. We've heard that idea of these purity tests, okay? That drove many rural communities to form self-defense militias that end up fighting against them. So Peru ends up having this Truth and Reconciliation Committee later. It's estimated that roughly 69,000 people died in the conflict, with the Shining Path responsible for a majority of the deaths. Which by the way, this is super weird because normally when you have internal conflict, where the state is involved, typically the state is the bigger killer. But that didn't end up being the case. The fucking Maoists were, which is why, part of the reason you hopefully will understand by now,

• 1:13:24Speaker 00

  why I'm such a psychopath for people that are embracing Mao. It is such a murderous ideology. And the victims always, guess what? Overwhelmingly poor and rural. So the people that they're supposedly trying to help end up being the ones that they kill en masse. Now, the worst of Peru's collapse, they had hyperinflation by the way. They had a roughly 25% GDP crash. All of that happened under the anti-imperialist program itself. So the leader capped debt payments, defied the IMF, and ran heterodox stimulus because he was so pissed about US involvement and US running the world.

• 1:14:09Speaker 00

  But the reality is money works the way money works. And so if the IMF is the way that you're going to get money, is the way you're going to have a debt rating that allows you to attract foreign investments, you can actually build your country, and those are the guys you're telling to fuck off, guess what happens? You end up having, and this is real, the fastest destruction of living standards in Peruvian history. Under imperialism? No, motherfucker. Under the thing that was supposed to replace imperialism, which becomes just authoritarian rule. Now, you can argue the credit cutoff made this program impossible, but Bolivia and Israel stabilized in the same era using the orthodox programs. So I get why you might be annoyed at the system, but you're going to have to use the system that exists

• 1:14:53Speaker 00

  if you're going to interface with economic realities, which is what these guys tend not to do, because they think that they can just continue to peristatize the engine of prosperity. And they think, well, capitalism's not gonna go anywhere. We were making money before, we were wealthy before, and that's all that matters. We're gonna keep being wealthy, and we're just gonna tax, we're just gonna take control of it. We're just gonna tax it. It's not gonna be a problem. Everything's gonna be great. And of course, it ends up breaking everything because the very thing, and I know that this makes people uncomfortable, but the very thing that makes the engine of prosperity work is that people can be selfish and end up getting more money. They can get richer than other people. And they want to show that they can do something bigger and better than everybody else.

• 1:15:36Speaker 00

  And for some reason, we're totally chill with it on the sports stage, but we're not when it comes to business. But the reality is, it is the same impulse to compete and to win and to push your skillset and to become truly great and to do something extraordinary that will be remembered for generations and generations. And for hundreds of years, civilization, at least in the West, has been advantaged by taking advantage of that reality. The way that humans are and the things that motivate them and what makes the actual free markets such an incredible generator of innovation. But now, we are finding ourselves telling bullshit lies about what's really going on. And because, bless her cotton socks, she doesn't know about the economy,

• 1:16:21Speaker 00

  so she doesn't know how to fucking push back. And so you end up in a situation where you've got people spouting just absolute bullshit that's easy enough to debunk, but you have to know about it. And unfortunately, economics is just complicated enough that people will just take the bullshit bamboozle story that somebody gives them. And in a moment where people are emotionally vulnerable because the economy is not working for the people on the bottom side of the K, then they grab for the emotional story, even though it does not make contact with reality.

• 1:16:53Speaker 01

  There's been some like back and forth, right? Have you ever read the book, Economics, Confessions of Economic Hitman? John Perkins?

• 1:17:03Speaker 00

  I've heard of it, but I haven't read it.

• 1:17:05Speaker 01

  There's, the majority of the pushback is like, yes, that's true, but we have to make sure that we're not saying to Gustavo's point, economic destabilization is a thing. And I think a lot of times we think of, we swing back from the ought and is too frequently in the sense of, yes, in a perfect world, we ought to have free markets and we ought to have capitalism win, and we ought to have competition, just like we do in sports and all these other things. They'll push back at that. But there is, in certain places is, it's economically beneficial for the world to believe that capitalism is the only way to win, especially when it comes from a country that is number one in capitalism. It's the same as if, looking at the World Cup,

• 1:17:46Speaker 01

  it's beneficial for Messi to get all the calls because it's beneficial for his team to win. And every time his team member goes down, it's the worst thing in the world. Every time another team member goes down, what? I barely touched you. And there is a sort, a level of framed expectation when it comes to certain talking points, or framed, um, uh, grace is a better word, and I'm not trying to get into the woo-woo, but it's like, oh, okay, that's different because of this, this, this, this, this, and this. But that's still mostly capitalism, so that's cool. And as soon as it's socialism, it's like, nope, not budging. I'm not giving you 1%. You said the S-word, banned, exiled, blocked.

• 1:18:26Speaker 01

  And I think that the level of grace, again, I'm just failing to find a better word. I think we need to add to where the general emotion of socialism come from. Because whether it's Gustavo, or Gary's Economics, or Mamdani, or even Bernie Sanders for his third political reinvention, these ideas are here and they're not going away. And we need to figure, to me, I think we need to figure out how to galvanize that audience versus just saying, you're stupid, this is what happens. Or you don't know about history, this is what happens. Is there a way that we can bridge that gap in a way? Does that make sense?

• 1:19:04Speaker 00

  It makes perfect sense. And I think that hopefully, by this point, anybody that's been watching for a long time understands, that is my commitment that I've given over this part of my professional career to, largely trying to deal with one thing. The bottom side of the K is not working. And the thing that got me into economics was wanting to help people on the bottom side of the K. So this all started for me in COVID, when I was still much closer to my days at Quest, when I was working with former gang members, drug dealers, like people that really grew up hard. And so my entry into economics was going,

• 1:19:47Speaker 00

  COVID is going to wipe those guys out because none of them are gonna have jobs. They're gonna get sent home. And I didn't have a mental map for money printing. So I didn't know they were about to get stimulus checks and all that stuff. So I was just like, oh my God, these guys are really gonna be fucked. So I was like, I've gotta do content. And my whole team was freaking out because, and Drew wasn't here at the time, but they were like, this is gonna be bad for the channel. And I was like, yes, and I could not care less because this is what people actually need in this moment. And so I started doing basically Bouncer Checkbook, How to Get Ahead, the like, Personal Finance 101 stuff. And then, as I started encountering like, what is money and all of that? It just unspooled into something.

• 1:20:30Speaker 00

  So to not diatribe on that too long and just say, the very thing that animates me is wanting to help people on the bottom side of the K. And to actually help them though, you have to say how things really work. Because Gary's Economics wants to give people an emotionally satisfying answer that won't make their life better. And Gustavo is, he wants to give them an answer that will make their lives

• 1:20:57Speaker 00

  Worse, to a degree that is hard to overstate, if he were to be able to play out his actual full agenda, abolishing the police, getting rid of prisons, no borders. It's really crazy. It's crazy. And so, we're gonna keep playing the DSA in their own words. So people do not need me to translate for them. They say the most unhinged shit ever. So, all of this is, uh, what scares me is that, hey, I actually wanna fix the K. And you can, even though I'm emotionally animated by something, just listen to the cause and effect. I'll walk you through it, over and over and over and over and over and over. And so there, you can say, oh fuck, I've gotta ignore Tom. He's so hyperbolic. Uh, but he, the dumbass, gives me his chain of logic.

• 1:21:41Speaker 00

  And so I'm just gonna go show how that part in the chain of logic doesn't make any sense. You'll notice people don't do that. But if they did, that would be great. Okay, so now, accepting your frame, we must galvanize those people and say, you have every right to be mad. I understand the frustration. Not only do I understand it, the frustration is legitimate. Now, let's just not do what historically people have done, which is grab the emotionally resonant speech that will make your life a thousand times worse. Let's instead do the hard work of saying, this is how an economy is actually constructed. And so, let's go in and figure out how we get rid of the abuses of power. Right? This is why, um, the death of Thomas Massey as a relevant political figure is so emotionally devastating.

• 1:22:26Speaker 00

  Um, I don't think he's a saint, and he probably isn't who, um, is ever gonna be a viable presidential candidate. But at a minimum, he really understood debt. Um, is now caught up in money and politics. And so he'll be able to bang that drum well. And so, that kind of thing is very disheartening. And I understand why people, um, get sad to see that go. But, our energy should be on that. We need sensible voices, like a Thomas Massey, like a Rand Paul. But instead, what we're getting, I see you have queued up Hassan next. We're getting Hassan's, we're getting, uh, Gustavo's. Instead of people that are like, listen, you're mad for this reason. This is corrupt. This must be fixed.

• 1:23:09Speaker 00

  Um, and here's what the economy needs to look like. Here's why the debt is a problem. And they're just cause and effect, all day long. But, I, I will be interested to see if the fact that I'm emotionally animated by this ends up helping or hurting us. I don't know. It's far more entertaining. I can see that in the numbers. The more you can take me somewhere where I am legitimately riled up. I'm never gonna play a character. But, the more that it goes somewhere that I legitimately have emotional animation, uh, we can see it in the numbers. So it's like, that's obviously, um, there is something there that makes it better TV. Whether it ends up being more persuasive is a bigger question. And I don't know the answer to that. So, but what I will say is, um, when you can make the person feel the way they want to feel, they're far more likely to follow you than if you simply give them...

• 1:23:53Speaker 00

  But I don't know if I make people feel the exact opposite. Because, um, for my thing anyway, I need people that challenge my ideas. And so, what we don't do, there are communities that, from a financial standpoint, is very wise. But there are communities where you'll see any dissenting voice gets first put in timeout, and then they just will block them forever. And it becomes like, sort of a joy. And you'll hear their community be like, oh, ban them forever. Because they said something that's considered, you know, a non-starter in their group, whatever. Like, oh, um, we shouldn't ban all Muslims. That's crazy. Ban them. Like, you'll hear that kinda shit all the time. And I'm like, yeah, I get it. You're gonna make more money, cuz people go in and they're like, you're gonna tell me all the things I wanna hear. Uh, whereas in some ways, I'm using it the opposite way,

• 1:24:37Speaker 00

  which is I ask you guys to surface the sharpest critiques of my ideas.

• 1:24:41Speaker 01

  Um, you kinda answered my question, the reason I had queued up. I was gonna say, why do messages like this resonate when other messages that come from a place of, I'm trying to help, and the Rand Pauls, the Thomas Massies, don't?

• 1:24:53Speaker 00

  Yeah, this is only a minute. We should probably still play it. Yeah. So, um, people are attacking this speech in ways that I think go too far. So, everybody's saying this is a Hitler-style rant, uh, in a Maoist uniform. The Maoist uniform is almost certainly intentional. So that one, I will say, I've got all my beefs with him on that. And I, I can't believe that he backs a murderous regime, but whatever. Uh, we can have that comment, or that, um, discussion separately. But, I don't think it's fair to categorize this as being like Hitler. But we're gonna talk about why Hitler's speech falls into the same category. But Hitlerian isn't the category.

• 1:25:36Speaker 00

  It's just where Hitler slots. So, anyway. No more to Trumpism. But no more to the Democrats who compromise, who conciliate, and who betray us.

• 1:25:56Speaker 00

  No more to the fascist reactionaries. But no more to the Democrats who will collaborate and cooperate with the fascists. Who will fund ICE, who will fund Israel, who will help poison the planet, who will stiff workers and help bosses. We don't need those Democrats anymore. This is so wild. We're really living through it. In fact, I know we have a message. We are coming. We are embossed, we're unbought, we're unbowed, and we will become undeniable. Okay, so, um, the reason that people are calling this Hitlerian is that it's a populist speech. So, it's designed entirely to arouse your emotions.

• 1:26:40Speaker 00

  I used to do something called impact quotes. And impact quotes was me doing what I have always referred to as my magic trick. Uh, so I would take quotes that may seem unrelated. I would start with one, and I would finish with another. And I would do a very performative rant, in that I knew music was gonna be put under it. And I knew that it was meant to be this sort of fast-flowing, um, chain of ideas that people would often listen to in the gym, and was meant to get them hyped up. Okay, so, that falls into the same vein. It is a speech that's not meant to necessarily make contact with, um, cause and effect. It's a speech that's meant to make you feel something. And, he's doing that. And Hitler did that. And countless, um, orators, uh, Nelson Mandela, I'm sure, did that.

• 1:27:24Speaker 00

  But certainly, um, Martin Luther King Jr. was the king of this. He would give a speech that made you feel something. Now, are we gonna say that Martin Luther King Jr. gave Hitlerian speeches? No, that's fucking ridiculous. It, it is that people are tapping into your emotions. It's what we want in a populist moment. So it's why it works in a populist moment. And so, um, there is enough to drag Hassan for, for being a complete unhinged lunatic, in terms of his actual policies, that when people, in my opinion, discredit themselves by trying to paint it as if it were worse than it really is. This is why I tried to make Gustavo's argument better than he made it, in terms of why his parents would've come here, even if, like, it almost doesn't matter what they believe.

• 1:28:09Speaker 00

  If you look at whether they were or weren't, if America really is destabilizing something, it makes sense to go inside the bill of the beast. So, if you can show, I'm not trying to straw man. Let me make this as hard as I can. Let me steel men the shit out of this. And then tell you why this is still nonsensical, um, then you have something. So I, yeah, I, the speech is designed to whip people up into a lather, to get them to stand up and get them to applaud. There's nothing specific. He's just saying, we can't be stopped. We're here. We're the formidable force. Uh, and yes, that is the kind of thing that Hitler would do. It's also the kind of thing that Churchill would do. It's the kind of thing that every populist leader ever would rightly do, because they understand that moment in history.

• 1:28:50Speaker 01

  Uh, it kinda brings me back to the David Freiberg quote that was just like, I think we're just gonna have to, like, run the experiment, fail it, just to squash this. I don't think there's any other, like, avenue. He kind of, yeah, ships in in that way. I hope it's not, but that quote came back to my head after seeing him rile up people. And it is true, if you get people feeling emotionally connected with you, they don't care what you do. They're like, he gets how I feel. I'll follow him and...

• 1:29:14Speaker 00

  Yeah, but here's the, the real problem. So, um, there are gonna be people that will hear my breakdown of Peru. And they're just going to say, oh, that's all crazy. Um, these guys were only demented because, uh, American imperialism happened for so long. This is all just American imperialism. And so, for them, they're still gonna have the argument. It, we, we are living in a world where Mao killed at least 45 million people. Stalin killed at least 25 million people. And, we still can't condemn them. We, we can't say that, oh, this, the, and forget Pol Pot, who killed millions. It's like...

• 1:29:54Speaker 00

  Government after government after government in the 20th century alone racked up, the numbers vary, but it's somewhere in the neighborhood of 180 million to 200 million people were killed by their own governments. And yet, still, people want to give more power to the government instead of stripping it away. That is, that is scary. That tells me that touching your hand to the stove only works for the person whose hand actively got touched. The people who fled Cuba, they're like, yo, we can't do this again. But their kids are like, what's the problem? So it fades so fast that, I think it was Jefferson that was like, uh, to preserve liberty,

• 1:30:37Speaker 00

  you must water the country with the blood of tyrants and patriots alike. I mean, basically in a far more poetic way than I'm not remembering off the top of my head, saying every generation is gonna have to pay a price to keep this in place because of this loop where it's like, if you grew up in prosperity, you, you just don't know anything else. And so you don't realize how bad things can get. You don't realize that prosperity is not the default setting. So they assume Peru would have been fine if America hadn't come in and messed things up. They assume India would have been fine if the British Empire hadn't come in and messed things up. They assume Africa would have been fine if, uh, Europe hadn't come in and messed things up.

• 1:31:21Speaker 00

  And we don't have the evidence for that. So recognizing that there have been these incredible problems born of colonialism and imperialism is not the same as going, this all would have been fine without it. It's like people that have a vision of Europeans come to America and ruin this otherwise like idyllic pastoral life where everybody got along. And it's like, well, let's also remember that you weren't considered a man until you took the scalp of somebody else from the tribe. So that sounds like some gangland shit, uh, but that's just what it was. They would raid for women and take them back and they didn't let them go.

• 1:32:05Speaker 00

  You were gonna be somebody's wife, whether you wanted to be or not. And by the way, they killed your husband in front of you. And if your kids were old enough, uh, they would kill them in front of you. And oftentimes, by the way, they would like cut their bellies out and pull the intestines out and show them, um, they would kill a woman if she was pregnant and cut her baby out right there. I mean, it, people just do not understand, like humans are savage. So it's like one savage group happened to beat the other, but in this case, partly because largely through geography, you don't need to discount anybody. Europe had fucking amazing geography. And so they just got hundreds of years ahead of everybody because they had, and part of the amazing geography, shit was cold. And so they had fertile land, but only for like a narrow band of the year. And then they would freeze to death during the other part of the year and couldn't grow

• 1:32:50Speaker 00

  food. So that forced them to be like, yo, we've got to be industrious. We've gotta, uh, make hay while the sun shines. Literally why we have phrases like that. So you would plant and, uh, reap what you sowed during a very specific time. You would hunker down for the winter. You would build shelter. You had to come together as a group, but also compete within the group, like all of that shit. And by the way, you couldn't tolerate people that were just trying to be a parasite. So those motherfuckers got ostracized, which meant what? You're gonna die. You're either gonna be eaten by wolves, you're gonna die in the first winter. Period. End of story. Go watch a season of Alone. You will see very quickly, being ostracized is the same as being killed. So it was just like, that's how we came up.

• 1:33:29Speaker 00

  Now, because of that, we were able to import that European culture into America. And America then becomes the greatest nation, most prosperous nation the world has ever seen. That is not the same as a counterfactual of had we not ever come here, that this would have been something even better. That's where it's like, maybe it would have been. We don't know that. So all I'm saying is, well, we have one result and the other is a big set of question marks. So we have to be very careful about thinking that people will touch their hand on the stove, draw the right conclusions. It's just not what history says actually happens.

• 1:34:06Speaker 01

  And it's going to get worse before it gets better. I'm talking about the US labor force numbers. It seems that Americans are falling out of the labor force at record rates. And to me, unemployed person is the prime, was it, uh, idle mine is the devil's playground? So they're gonna be sitting around not working. So I'm gonna be looking more and more good.

• 1:34:26Speaker 01

  Yeah, so the number of Americans who are not in the workforce rose by 832,000 in June to 100, 105.8 million, an all time high. These are people who are neither employed nor actively looking for work. This is now 2.2 million above the 2020 pandemic peak when the global economy was shut down.

• 1:34:44Speaker 00

  That is crazy. This is worse than COVID.

• 1:34:46Speaker 01

  So in 2026, 2.5 million Americans have exited the labor force. By comparison, 68.7 million Americans were not in the labor force at the beginning of this century. As a percentage of the population, age 16 plus, this figure is up 38.5%, the highest since the 1970s, excluding the pandemic period. The US job market is weak under the surface. This goes back to the Jeff Snyder conversation we had. So it's, there's a lot of different indicators of recession, not just the stock market.

• 1:35:12Speaker 00

  Yeah. And the wild thing to me, so this exists right now in a confluence of things. We had our boy at the DSA, but we've also got Bernie. If you pull up his tweet, basically like trying to bullshit the American public about what's really going on. So this is Bernie Sanders. Sergey Brin is now worth 276 billion. He could save healthcare for 3 million people. Instead, he's spending 82 million against California's 5% billionaire wealth tax. He'd rather see low income Americans die and suffer than pay his fair share of taxes. That is a moral obscenity. All right. The fact that Bernie Sanders knows this is a lie is a moral obscenity. First of all, the reason I, I call this a lie is, uh, to say that Sergey Brin has not

• 1:35:57Speaker 00

  paid his fair share, like remember, for him to realize any of those gains in his life, he would have paid tax on them. It's not gonna be ordinary income. So I understand that riles people up, but I've debated that a thousand times. I'm not gonna go into it right now. But he's paying an obscene amount of taxes. He will have paid more in tax than virtually any other human being who's ever lived. So that's already crazy. And then this is the part that really drives me crazy with this. He could save healthcare for 3 million people. That's a lie. That would be for a year. The thing is, the billionaire tax is meant to be a one-off, which is a lie because it will never be able to meet the needs of the system that has a gap that must be filled every year. This is the central lie of what Mom Donnie is saying about what's happening in New York

• 1:36:42Speaker 00

  is I've closed the budget shortfall. No, you have not. You've widened the gap and you will have to close it again next year and again the year after, but making it worse every time. And so eventually you run out of places to pull it. You run out of deferrals and you still are gonna have this gigantic gap. What these guys try to do, I would just like to remind Bernie Sanders that 47% of Americans are on public dole of some kind. Our welfare system is massive. America is one of the largest socialist states in the world. And so we can't tolerate people to, um, frame America as if we don't have social safety nets. Now, if you wanna start making our social safety nets less fucking obscene, I would be all for it because the amount of fraud that's in them is ridiculous.

• 1:37:27Speaker 00

  The fact that the government will pay for things. So it's saying like, oh, we're using free market economy, but not really. This one goes aimed specifically at healthcare. And so you've got all these problems with the, uh, put college, um, loans in there as well, where the government's backing all of that stuff. And so it creates massive distortions in the market, which makes everything more expensive. And so you're not actually letting the free market do its thing. And so you're creating like the worst of all worlds where you're socializing, uh, healthcare, you're socializing, um, education, but in the worst conceivable way possible. And so that kind of stuff, I would love to see that solved because these things are absolute atrocities. But that's not what Bernie's talking about.

• 1:38:11Speaker 00

  What Bernie's talking about is just a little bit more tax revenue is gonna solve the problem. And just if these greedy assholes would give up the money, we'd be fine. Dude, with the amount of fraud that we have, you're never going to convince wealthy people to give up more money. That is absolutely absurd. What you want is to get them to go in and make it more efficient. Oh yeah, we tried that. And people started bombing Elon Musk's Tesla facilities because they didn't like that he was going after fraud, waste and abuse. And look, I know that that's gonna be hotly debated and there are gonna be people just absolutely freaking out. But who was it that told us that the rate at which an employee of the government can retire is choke pointed by the speed of an elevator in a mine shaft where all of the records are sent down? Guys, this is so crazy.

• 1:38:55Speaker 00

  The level of absurdity, that money can go out without anybody having to say what it's for, that's fucking absurd. Like there are so many things that are just absolutely asinine. You had the single most effective entrepreneur at creating efficiencies ever in human history in the government for whatever number of days. And people reacted to that with such an allergic reaction that the only thing that made sense was, uh, this is either, um, left extremists just trying to get what they want, full blown Trump derangement syndrome, or people just so blindly hating capitalism that a capitalist coming in and trying to make the government, uh, more efficient was such anathema to their

• 1:39:38Speaker 00

  belief system that they couldn't have it, or that they're just in on the take. And that was of course, one of the things that Elon put, he said, listen, this is largely a left leaning thing, but there are people on the right that are also, uh, using the fraud spigot to get money, uh, going over to them. And I'm sure you guys' algorithms are not as honed as mine to show you fraud examples over and over and over, but boy, there is no shortage of examples, basically every day of new fraud being uncovered. It's absolutely crazy. And so every time I see Bernie going on one of these rants, um, I'm going to counter it with facts. It, it is just criminal that Bernie makes out like, we're not already taxing people to death.

• 1:40:19Speaker 00

  Like just look at the graph of, remember over the last 10 years, okay, the last 10 years, we have effectively doubled the government budget. That's crazy. That's so stupid. So you just see tax going up, up, up, up, up, up, up, up, up, up. And he just wants more, more, more, more, more. It hasn't solved the problem yet. Why the fuck would it solve the problem with the next round? So stupid.

• 1:40:43Speaker 01

  Crazy, I was trying to pull up the graph, but I did not find it in time. Okay, I want to jump over to AI because I think that this is a really good example, going back to earlier about like subsidizes industries, things like that. So, right now, Kimi K3 was just released, China's open source model, and this spells big problems for OpenAI and Anthropic. So, set it up for us, but I have a couple of follow-ups to see kind of how we maneuver this market disruption that's happening live, because I think this is a live example that we can use, that we can like hang back from like Peru and all these other things that we were talking about earlier.

• 1:41:15Speaker 00

  Yeah, this one is very interesting. The AI arms race continues between the US and China, and it is best understood as an AI arms race. Beijing-based Moonshot AI released Kimi 3 recently. It's a 2.8 trillion parameter frontier model, showing that China can do frontier models. It's the largest open weight AI model ever built by Moonshot's own benchmarks, so take this with a grain of salt. K3 beats Anthropic's Opus 4.8 and OpenAI's GPT 5.5 on most coding and agent tasks. It still trails the absolute American top-tier system, so Claude Fable 5 and GPT 5.6 Soul, but it runs at roughly 40% lower cost. And on July 27th, so a little bit in the future here,

• 1:42:00Speaker 00

  Moonshot plans to release the full model weights, meaning any company or government, by the way, on Earth can download it and run it on their own servers for free. So, people are gonna sit up and pay attention to this one, the market for sure has. Semiconductor stocks sold off in an echo of the deep-seak panic of January of 2025. Xi Jinping amplified the moment personally, opening the World AI Conference in Shanghai with a speech, doubling down on China's open-source strategy, casting China as the open collaborative partner, and America's closed frontier labs as the ones hoarding the technology. Now, of course, he fails to mention that him using OpenAI, funding it with the government,

• 1:42:44Speaker 00

  but then using OpenAI, or open-source AI, the way that the DSA wants to use state-run state-run grocery stores to wipe out bodegas. China wants to use that as a way to basically batter the entire US economy, which right now hinges almost entirely, our growth anyway, on what's going on in AI. And so, it's really a brilliant strategy. So, that is a part of this that people cannot lose sight of, is what you really have going on is this AI arms race between the US and China, China having the much better cover story of like, no, no, no. Like, we want to open-source this, this is crazy. These guys are just being closed source.

• 1:43:25Speaker 00

  Now, the bad news is that Trump may take the bait. So, the Trump administration is now reportedly weighing an executive order targeting open-source AI, potentially restricting American access to Chinese models. So, even the administration's own advisor, who is like the czar of all this, David Sacks, warned that the rules could entangle the country in complications that end up hurting US competitiveness. So, while yes, there is like the AI models out there, if they're open-source and sent to the US would be bad for Anthropic and OpenAI, they're gonna use a jujitsu move to try to make this the best thing that ever happened to them, so that the government clamps down on China and open-source models maybe entirely

• 1:44:09Speaker 00

  to create a protected space for our big AI companies. Now, this is where this shit gets complicated. I do not trust them to do this well, so just to plant my flag. I don't trust them to do this well. I think this will end up being a bigger problem, and they should just not do it. And if the American companies can't survive, you've got to wipe out that first wave of investors, and it means what it means. And then, as with all of these technologies, you get the inheritance generation that will come along behind them, and they'll be able to build something big on the back of this. It will be very economically devastating. But, it is what it is, man. And so, this is one of those times. Okay, everybody hears me. I'm planting that flag. That is what should happen. Now, do I understand why the government is being protectionist? Yes, I do.

• 1:44:52Speaker 00

  This is just one where they're gonna end up creating, I think, more problems than they solve. So, if we want to say, okay, look, we've got to do something to feed our the big frontier models, so we've got to make sure that those are getting funded, but we are going to be agnostic to what companies end up actually running that. Cool. I don't know what the best way to do that is, but I certainly understand, much like I really believe America should make sure that things are being manufactured in the US, even if that means that we give incentives to industry, even if that means that we tariff our competitors and keep them out, and I understand the historical fears over protectionism.

• 1:45:35Speaker 00

  But so far, we have not seen any inflation from doing that, so a lot of that stuff assumed a very different economic time than what we're living in right now. So, I think that there are good ideas to be had there. I do not trust the Trump administration to do this well, which is why my flag gets planted elsewhere. But there is certainly an argument to be made that we have to make sure that the US wins this AI arms race. It's just there's gonna be a smart way to do this and a dumb way, and the odds that they choose a dumb way border on 100%. So, that is my fear.

• 1:46:03Speaker 01

  Okay, this, I understand. I get the importance of AI. I get the importance of restriction. I get the importance of winning the arms race. But I'm gonna lay three industries down there, and I'm gonna ask you to help me see the nuance of it.

• 1:46:15Speaker 00

  Yep.

• 1:46:15Speaker 01

  So, we have the AI industry, China versus America. America needs to go balls-to-the-ball, no regulation. We need to just make the best man win.

• 1:46:24Speaker 00

  You'll never hear me say no regulation, but yes, I get your point.

• 1:46:26Speaker 01

  Yeah.

• 1:46:28Speaker 01

  Automotive. BYD wants to come to the US. We cannot let them come to the US. It will decimate Ford, DeSantis, Chrysler, and our local manufacturing. We need to learn how to manufacture locally.

• 1:46:42Speaker 01

  Grocery stores. I want to subsidize a grocery store in order to get low-cost goods too. So, I'm not being a jerk, I'm just trying to lay out the three different things.

• 1:46:52Speaker 00

  I don't feel like being a jerk at all.

• 1:46:52Speaker 01

  I'm trying to lay out the three different things that seem to rhyme, but I know that there are different nuances. And I want people like to explain like, this is why it's okay for here, not okay for here. This is the main thread of what, you know, I'm trying to communicate in that way.

• 1:47:05Speaker 00

  So, the second you destroy the price signal, you create a problem for yourself. So, anything that the government does where they're picking winners and losers, this is why I absolutely despise the US government investing in Intel, is, well, now you're saying, for the American people to win, every president is gonna have pressure to make sure that whatever policy they put in place advantages, they'll say the American people, because it advantages the one that the US government has a stake in. Fuck that. So, what you want to do is say, like with the Trump accounts, that this is about American industry writ large. And so, what you do is you put a, much like you would do with the S and P 500, you put a set of criteria. Whatever companies meet that criteria, they're in. Whatever ones don't, they get booted out. And so, it's constantly changing.

• 1:47:50Speaker 00

  So, you are completely agnostic to what companies win and lose. So, that is the ideal way to do something like that, where the American people are advantaged, but they don't have to care about what companies exactly. So, you want to do a very similar thing with your subsidies. So, hey, we're gonna be protectionists. So, vehicles from other places, especially places that we really fear China. And keep in mind, the reason we fear them, amazing engineering, so they're just awesome, so start with that. But then, the government subsidizes, so now this is bodega territory. So, the reason that we're walling off is they're using their taxpayer dollars to go up against an industry that historically wasn't using taxpayer dollars.

• 1:48:32Speaker 00

  So, that's unfair. So, you guys can make things cheaper for, let's say, five years, 10 years, by forcing the taxpayers in your country to pay for it, and then you stop doing it once we've hollowed out our manufacturing here, because we couldn't keep up. And now, we just don't have the industry, and so we literally can't compete physically. And so, even if we have the brilliant engineering talent, the years it would take to spin up the factories and all that, who's gonna fund that? So, that's the kind of thing that will only get funded by the government. So, we did exactly that. Riding on the back of our belief that America was this incredible industrial powerhouse, we ended up gutting our industrial capabilities, because just that was our identity.

• 1:49:13Speaker 00

  And so, we didn't realize we were weakening ourselves through globalization, but nonetheless, we were. So, you tariff, you keep people out, you incentivize companies to bring their manufacturing here. So, even if this is like Toyota or whatever, it's a Japanese company, but they're hiring American workers, and by the way, the thing that you don't want to say out loud, but is very much in the back of your mind, should we go to war with anybody, Japan or anybody else, we're going to confiscate that facility. And now, because of people like Palmer Lucky, we're gonna be able to spin that up into a cruise missile factory. And so, that becomes that part of it. Now, when you get into the state-run grocery store of it all,

• 1:49:57Speaker 00

  that is, now you're making sure that the industries themselves are run by the state. So, the state isn't doing an incentive structure to make sure you still have all the competition amongst all the different bodegas, all doing things in a very different way. But that, and I don't even know how they would incentivize this at the bodega level, but let's say that you do like what we're talking about, where you keep Amazon and Walmart out. All right, guys, we're gonna help your industry. We're gonna be protectionists geographically with the five boroughs of New York. And we're going to, from a regulatory method, we're going to block out the big guys. So, it's government involvement to make sure that you guys are doing okay.

• 1:50:38Speaker 00

  It's not technically ideal for the end customer, but we think it creates a bigger vulnerability in the long run. Plus, we don't like what it does to the characters, so we're gonna do it. So, it's like, that, I still think that you've got to be so fucking careful. But, I get it, and at the end of the day, this is why we live in a republic. It's like, if those are the things that you want to see done, then you can go lobby your congressmen, your senators, to make sure that's the thing that actually happens. Okay, great. Other cities are gonna run different things. So, another city would be like, no, fuck you. We're letting the most Walmart in ever. And let's see who ends up winning the argument. So... State incentives and protections versus state run very different.

• 1:51:18Speaker 00

  But state incentives and protections can go very, very awry and create some of the problems. And so you want to do it for the least period of time possible. So if you're trying to incentivize electric cars, I get it. You're going to do some subsidies in the beginning. Probably should be blanket tax incentives. So everybody gets it equally and it doesn't advantage one company over another. But when and tax breaks would be another way that they would do what I was talking about with the grocery stores. Like those kinds of things where it applies generically to anybody who qualifies versus we're picking that store is going to win.

• 1:51:55Speaker 01

  So then when it comes to top down policies, it's not necessarily every top down policy is wrong. It just comes down to the implementation of that top down policy and the second and third order consequences.

• 1:52:07Speaker 00

  Yes, and it's a slippery slope and I'm well aware of that. So I, I am doing my best to describe the world that I actually see. And the world that I actually see, when you let capitalism truly go unchecked, what you find is that men with a sociopathic tendency, the dark triad, they rise to power and they don't mind being predatory. And so then you get like Standard Oil, where he just didn't care if he put you out of business. His Standard Oil story is really Rockefeller, is really a fascinating fucking story. Like that guy was unbelievably good at entrepreneurship, like unbelievably good.

• 1:52:51Speaker 00

  And psychotically disciplined with his money. His men loved him because he was so driven and so ever-present and just set the tone. And at the same time was so efficient that he could go bully everybody off the ball. And so he just consolidated, consolidated, consolidated, consolidated until you just couldn't compete with him. Cause he could lose money wherever he needed to, to put somebody out of business because he was making so much money elsewhere. And so, yeah, part of the way that we got out of the robber baron era was we broke those monopolies up. That's a good thing from where I'm sitting. So it's like, is it a dangerous game? Did we just give more power to the government? Yes, but is it a necessary game from where I'm sitting?

• 1:53:32Speaker 00

  Yes, because the very thing I'm worried about with government had become actual and manifest in business. So it's like, well, then I'm going to say, hey, okay, for the least amount of time possible, I want to see you and minimum amount of force, I want to see you go break that stuff up and then back the fuck off. And we definitely ebb and flow, right? We'll go too far with regulation, which is where we're at now. And then we'll deregulate too far and you run into other problems and you oscillate between the two. I wish we didn't, but that's just how it works. And so me trying to describe like, okay, how do I create the like real period of prosperity? It's not a utopia, but how do I create a real period of prosperity?

• 1:54:13Speaker 00

  Let me look back at the eras that worked very well and the periods that worked very well. We had just enough regulation that we didn't spill over into monopolies. But we were light touch enough that there was just constant competition where you had all these new upstarts coming nipping at the heels of the people bigger than them. And just the way that companies work, this is the most fascinating thing to all the young people. If there's anybody young, if you hear my voice, oh, please know, here's how this always, always, always works. Old people get stupid and they get stupid partly because literal plaque is building up in their brain. And they get stupid because things worked for them. And so they, they take their lessons, the, the very thing that made them aggressive and risk-taking.

• 1:54:57Speaker 00

  They thought that they had some brilliant idea that was better than everybody else and they end up being right. And so now they're like, I can do no wrong. And so they, that calcifies into dogma. And it's like, well, this is how we do things here. This is why I'm one of the goats. And all of a sudden you don't realize that you're 39 messy and you don't make some of the runs that you should make. And so kind of trading on a reputation of you four or five years ago, but that's not who you really are anymore. And so it's the young fucking hungry kid who's a little bit faster, a little bit sharper, and he supplants you. And so young people always have an advantage. It's crazy, but you can't take the victim card. And right now people are handing it to you like fucking candy at the fucking first day of kindergarten and all the way through of like, just get your piece from the government. You're being victimized, go get your piece from the government.

• 1:55:43Speaker 00

  Instead of being like, yo, young people always eat the lunch of old people. Go, this is like, I remember when I heard Eric Weinstein say that old people just need to retire. They need to like recognize that their time has passed. Fuck that. Young people need to be taught to be savages. Like get out there, do your fucking thing. You can run circles around these old dumb asses and they're just not. And so that one makes me sad. Now we can get into the like ways that the government is facilitating all that, the demographic shifts and all that. All of those things are real, but in trying to make a point, I'm going to oversimplify. And so anyway, that's where I want to see young people just really leverage that. You want that competition. So we don't ever want to over-regulate. So you lose that competition, period.

• 1:56:28Speaker 01

  That's all I got.

• 1:56:29Speaker 00

  All right, everybody, thank you so much. We've got an AI masterclass coming up Wednesday, August 5th at 1:00 PM Pacific. I hope you will join me for free. I'm going to show you how to build a company using AI. There's never been a better time than right now. If you want to control your destiny, make sure you join me. Again, that's August 5th at 1:00 PM Pacific time. The link is in the description. Sign up now, boys and girls, and we'll see you then. Until next time, my friends, be legendary. Take care, peace. 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.

• 1:57:11Speaker 00

  When your routine breaks, everything tends to break and that inconsistency compounds against you every single day. AG1 is designed to solve the execution problem. One scoop, eight ounces of water and you're done. You're getting 75 plus ingredients, vitamins and minerals, pre and probiotics, nutrient dense, superfoods. Everything that used to require six, seven different supplements and perfect planning now happens in one drink that takes about 30 seconds to make. Right now AG1 is giving you $87 worth of free gifts with your first subscription. You get a welcome kit, travel packs, vitamin D3 plus K2 and flavor samples. Click the link in the show notes or visit drinkag1.com/impact to claim this offer.