1 00:00:00,160 --> 00:00:03,040 Speaker 1: The total household debt hit a new high eighteen point 2 00:00:03,160 --> 00:00:06,840 Speaker 1: six trillion dollars. Young adults have been hit the hardest. 3 00:00:06,920 --> 00:00:10,720 Speaker 1: Their delinquency rate for people age eighteen to twenty nine 4 00:00:11,360 --> 00:00:16,079 Speaker 1: rose five percent. So what are they having the. 5 00:00:16,000 --> 00:00:19,400 Speaker 2: Most debt on? Well, mortgage is okayop. So this does 6 00:00:19,440 --> 00:00:22,599 Speaker 2: include mortgages okay, followed. 7 00:00:22,280 --> 00:00:26,080 Speaker 1: By auto student loan debt, and then credit card debt okay. 8 00:00:26,160 --> 00:00:26,920 Speaker 2: So the first two. 9 00:00:27,000 --> 00:00:30,880 Speaker 3: Let's address the first two because those don't concern me 10 00:00:31,000 --> 00:00:34,560 Speaker 3: as much unless your house poor. Because in your house 11 00:00:35,440 --> 00:00:37,720 Speaker 3: or your automobile, now I think you're more much more 12 00:00:37,760 --> 00:00:40,360 Speaker 3: likely to be underwater in you're some financial guy who 13 00:00:40,400 --> 00:00:43,040 Speaker 3: probably you'll scream at me or send a mean spirited 14 00:00:43,080 --> 00:00:45,360 Speaker 3: email if I'm wrong. But I would think people are 15 00:00:45,440 --> 00:00:48,519 Speaker 3: much more likely to be underwater in their car than 16 00:00:48,560 --> 00:00:51,320 Speaker 3: their house because of depreciation. What's so it's saying, you know, 17 00:00:51,360 --> 00:00:53,080 Speaker 3: you drive the car off the lot and it loses 18 00:00:53,320 --> 00:00:56,000 Speaker 3: x amount of its its value, right Whereas a house, 19 00:00:56,280 --> 00:00:59,680 Speaker 3: as we've clearly seen based on these assessments, quote unquote, 20 00:00:59,680 --> 00:01:03,320 Speaker 3: goes up over time, So you might owe x amount 21 00:01:03,320 --> 00:01:06,880 Speaker 3: of a house. But if the actual value is why 22 00:01:07,000 --> 00:01:09,400 Speaker 3: and why is bigger than X. Yes, you have debt, 23 00:01:10,120 --> 00:01:13,800 Speaker 3: but that is technically, at least the way the government 24 00:01:13,920 --> 00:01:15,840 Speaker 3: views it. It's an asset that you get, you can 25 00:01:15,880 --> 00:01:17,000 Speaker 3: and will eventually make money. 26 00:01:17,520 --> 00:01:18,240 Speaker 2: So I'm not I don't. 27 00:01:18,280 --> 00:01:20,920 Speaker 3: I don't have as much unless somebody is, unless somebody 28 00:01:20,959 --> 00:01:23,240 Speaker 3: is house poor. And for those you know houseports, like 29 00:01:23,280 --> 00:01:25,080 Speaker 3: you live in a nice house, but all your money 30 00:01:25,120 --> 00:01:27,640 Speaker 3: is going into the house, so you can't afford other things. 31 00:01:28,000 --> 00:01:30,959 Speaker 3: That one doesn't bother me as much. The car does 32 00:01:31,160 --> 00:01:34,000 Speaker 3: to an extent, because you can get underwater in your car, 33 00:01:34,280 --> 00:01:37,560 Speaker 3: although again it's an asset that you can move and 34 00:01:37,680 --> 00:01:39,800 Speaker 3: conceivably appreciating asset. 35 00:01:39,920 --> 00:01:40,120 Speaker 2: It is. 36 00:01:40,319 --> 00:01:41,520 Speaker 3: No, you're right, but you got to have a car 37 00:01:41,560 --> 00:01:44,840 Speaker 3: to go somewhere. Now there are cars like mine. 38 00:01:45,240 --> 00:01:47,760 Speaker 1: Right, can you be car poor? 39 00:01:48,000 --> 00:01:52,520 Speaker 3: I mean where you power locks, not within windows, but 40 00:01:52,560 --> 00:01:56,480 Speaker 3: it drives me to and from work. But then there's 41 00:01:56,520 --> 00:01:58,720 Speaker 3: a car like I'm you know, driving a BMW every 42 00:01:58,760 --> 00:02:00,840 Speaker 3: day and I have you know, no business doing that. 43 00:02:02,600 --> 00:02:05,280 Speaker 3: Then there's the Then there's the rest of it, and 44 00:02:05,320 --> 00:02:07,640 Speaker 3: the rest of it is the is the big anchor, 45 00:02:08,120 --> 00:02:11,280 Speaker 3: which is the student loan debt and the credit card debt, 46 00:02:11,600 --> 00:02:15,080 Speaker 3: because that's not returning you anything. It doesn't do anything 47 00:02:15,080 --> 00:02:17,200 Speaker 3: for you. Now, a student loan can conceivedly you have 48 00:02:17,240 --> 00:02:19,959 Speaker 3: a degree, I get a job, but clearly if you're 49 00:02:20,280 --> 00:02:22,120 Speaker 3: it's not. Unless you're a doctor, a lawyer, or some 50 00:02:22,320 --> 00:02:22,880 Speaker 3: high paying. 51 00:02:22,720 --> 00:02:24,800 Speaker 1: Position, it's got to outpace the loan. 52 00:02:24,760 --> 00:02:27,720 Speaker 3: Right exactly, and in most cases it's it appears to 53 00:02:27,760 --> 00:02:30,680 Speaker 3: not be. And then obviously the credit card debt is 54 00:02:30,720 --> 00:02:33,520 Speaker 3: just actual money spent, and that's a that's totally a 55 00:02:33,520 --> 00:02:34,160 Speaker 3: song called. 56 00:02:34,080 --> 00:02:38,920 Speaker 1: The average credit card debt per borrower is six twenty 57 00:02:39,000 --> 00:02:39,600 Speaker 1: three dollars. 58 00:02:39,639 --> 00:02:43,840 Speaker 2: That's what they own. The average person, average person in 59 00:02:43,880 --> 00:02:48,560 Speaker 2: this country owes six how much six twenty three dollars 60 00:02:48,720 --> 00:02:49,600 Speaker 2: on their credit card? 61 00:02:49,760 --> 00:02:54,880 Speaker 3: That is so scary. And how do you get to 62 00:02:54,960 --> 00:02:56,720 Speaker 3: that position? 63 00:02:56,840 --> 00:03:00,560 Speaker 1: So by just paying your utility bills, insurance. 64 00:03:00,560 --> 00:03:01,400 Speaker 2: Medical bills. 65 00:03:01,480 --> 00:03:03,520 Speaker 3: Okay, So this is then when we get to the 66 00:03:03,520 --> 00:03:05,240 Speaker 3: next part, like, this is the problem with this it's 67 00:03:05,280 --> 00:03:07,359 Speaker 3: such a large problem. There's no way we're going to 68 00:03:07,400 --> 00:03:10,800 Speaker 3: solve it in one segment. But if you're paying your 69 00:03:10,919 --> 00:03:15,040 Speaker 3: utility bills or your mortgage or any sort of monthly 70 00:03:15,080 --> 00:03:20,800 Speaker 3: expense on a credit card, you're lifing wrong, right. And 71 00:03:20,840 --> 00:03:25,120 Speaker 3: then it comes back to a failure both of the 72 00:03:25,160 --> 00:03:28,840 Speaker 3: public education system, but also parenting in general of people 73 00:03:28,880 --> 00:03:31,519 Speaker 3: not having a firm understanding. 74 00:03:31,560 --> 00:03:33,520 Speaker 1: Of finances and financial literacy. 75 00:03:33,639 --> 00:03:35,720 Speaker 2: Here's how yeah, here's how it works. 76 00:03:36,080 --> 00:03:40,440 Speaker 3: And one of the things that my father did for me, 77 00:03:41,320 --> 00:03:45,320 Speaker 3: and in hindsight it proved to be very helpful in 78 00:03:45,360 --> 00:03:50,680 Speaker 3: the long run, was he basically said, at about fifteen 79 00:03:50,760 --> 00:03:55,880 Speaker 3: or sixteen, here's life. College is on you. Here's your options. 80 00:03:55,960 --> 00:03:58,600 Speaker 3: Here's the one I'd take, go forth and figure it 81 00:03:58,640 --> 00:04:00,520 Speaker 3: out right. And I was like to live at his 82 00:04:00,600 --> 00:04:02,920 Speaker 3: house and you know, under his rules, and so I 83 00:04:02,920 --> 00:04:05,440 Speaker 3: didn't have a more you know, rent or anything like that. 84 00:04:05,760 --> 00:04:08,280 Speaker 3: But all of the stuff, the expenses of living were 85 00:04:08,360 --> 00:04:11,960 Speaker 3: my responsibility from a very young age. And it taught 86 00:04:11,960 --> 00:04:14,640 Speaker 3: me the discipline of here's how you do these things, 87 00:04:14,800 --> 00:04:16,000 Speaker 3: here's how you pay these things up. 88 00:04:16,040 --> 00:04:17,720 Speaker 2: I will help you with a B and C, but 89 00:04:17,760 --> 00:04:18,680 Speaker 2: everything else is on you. 90 00:04:18,880 --> 00:04:20,640 Speaker 3: And I think a lot of parents bail their kids 91 00:04:20,680 --> 00:04:22,440 Speaker 3: out too much at a young age and they don't 92 00:04:22,520 --> 00:04:26,680 Speaker 3: learn the financial discipline. Like I remember when I was 93 00:04:26,880 --> 00:04:29,440 Speaker 3: when I was sixteen, there was this kid on my 94 00:04:29,480 --> 00:04:34,880 Speaker 3: baseball team and his parents bought him Mustang, and I 95 00:04:34,960 --> 00:04:37,880 Speaker 3: remember seeing him pull up the baseball practice and that Mustang, 96 00:04:38,839 --> 00:04:41,360 Speaker 3: and I was like, that is going to screw that 97 00:04:41,480 --> 00:04:44,039 Speaker 3: kid up forever. First of all, a kit should never 98 00:04:44,120 --> 00:04:47,400 Speaker 3: drive a nicer car than their parents, never, under no circumstance, 99 00:04:47,440 --> 00:04:49,520 Speaker 3: should have a nicer car their parents. 100 00:04:49,839 --> 00:04:53,880 Speaker 2: But also, what are you teaching that kid that, at 101 00:04:53,880 --> 00:04:56,160 Speaker 2: that age you're not responsible enough to have that car. 102 00:04:56,800 --> 00:04:58,039 Speaker 1: He's not going to value it either. 103 00:04:57,920 --> 00:04:59,200 Speaker 3: Right, And I get people love their kids and they 104 00:04:59,240 --> 00:05:02,919 Speaker 3: w blah blah blah, but it's like like, that's the 105 00:05:02,960 --> 00:05:05,360 Speaker 3: thing we don't teach, and we can put it on 106 00:05:05,400 --> 00:05:07,359 Speaker 3: the public education system, and part of it we should, 107 00:05:07,360 --> 00:05:09,920 Speaker 3: because they don't teach you. They'll teach you nine thousand 108 00:05:09,960 --> 00:05:13,000 Speaker 3: different languages, but they won't teach you how to, you know, 109 00:05:13,120 --> 00:05:15,880 Speaker 3: balance your checkbook and pay the bills and all that stuff. 110 00:05:16,120 --> 00:05:19,320 Speaker 3: But also the parenting of teaching your kids life is hard. 111 00:05:20,040 --> 00:05:24,279 Speaker 3: You earn stuff you aren't given it, and and purchases them, 112 00:05:24,360 --> 00:05:26,520 Speaker 3: especially big purchases. You got to put a lot of 113 00:05:26,520 --> 00:05:29,080 Speaker 3: thought into them. You got the ramifications, but clearly that 114 00:05:29,120 --> 00:05:30,520 Speaker 3: is not happening in our society. 115 00:05:30,720 --> 00:05:32,640 Speaker 1: Yeah, and you'll take more pride in it once you 116 00:05:32,680 --> 00:05:35,040 Speaker 1: do work for it. Yeah, entertain or you'll. 117 00:05:34,920 --> 00:05:36,800 Speaker 3: End up at forty years old driving a car without 118 00:05:36,800 --> 00:05:39,160 Speaker 3: power lockser windows. Why because it gets me to and 119 00:05:39,200 --> 00:05:39,719 Speaker 3: from work. 120 00:05:39,920 --> 00:05:43,640 Speaker 1: Top ten percent of households now account for nearly half 121 00:05:43,920 --> 00:05:46,960 Speaker 1: of all consumer spending. What is it, top ten percent 122 00:05:47,000 --> 00:05:50,599 Speaker 1: of households, The top ten percent earners account for nearly 123 00:05:50,680 --> 00:05:52,200 Speaker 1: half of all consumer spending. 124 00:05:52,320 --> 00:05:55,120 Speaker 3: That's also very concerning because it's what we talk about 125 00:05:55,120 --> 00:05:56,120 Speaker 3: all the time in this program. 126 00:05:56,320 --> 00:06:01,880 Speaker 2: A society thrives when they have a a. 127 00:06:01,279 --> 00:06:03,640 Speaker 3: Robust middle class, both in the amount of people in 128 00:06:03,680 --> 00:06:07,200 Speaker 3: the middle class and their ability to elevate forward in 129 00:06:07,240 --> 00:06:09,800 Speaker 3: the middle class. Like that's because there's always going to 130 00:06:09,800 --> 00:06:12,920 Speaker 3: be tippy top people, even you know the North Korean society, right, 131 00:06:12,960 --> 00:06:16,120 Speaker 3: there's tippy top people. But if the rank and file 132 00:06:16,400 --> 00:06:21,680 Speaker 3: aren't moving forward, it's always about like this is a 133 00:06:21,720 --> 00:06:23,640 Speaker 3: weird analogy, but it's the best thing I can think of. 134 00:06:24,640 --> 00:06:26,960 Speaker 3: When I was an elected official, because I was an 135 00:06:26,960 --> 00:06:29,560 Speaker 3: elected official. Our senator doesn't seem to know that, but 136 00:06:29,640 --> 00:06:31,720 Speaker 3: I was an elected official. One of the things we 137 00:06:31,760 --> 00:06:33,839 Speaker 3: had to do, and it was a fascinating venture, was 138 00:06:33,880 --> 00:06:36,960 Speaker 3: to create a new sign and zoning ordinance for the town. 139 00:06:37,720 --> 00:06:40,360 Speaker 3: And it had been like ten fifteen years since they 140 00:06:40,360 --> 00:06:42,800 Speaker 3: touched signing, zoning ordents obvious, there's all sorts of changes 141 00:06:42,839 --> 00:06:44,920 Speaker 3: and you've got to update all this stuff. And one 142 00:06:45,000 --> 00:06:48,560 Speaker 3: of the things I'll never forget this when dealing with signage, 143 00:06:49,680 --> 00:06:53,599 Speaker 3: whether it's it's street signs or whether it's signed businesses 144 00:06:53,640 --> 00:06:55,680 Speaker 3: that are located near streets, and how you do that 145 00:06:56,200 --> 00:06:58,839 Speaker 3: is and the Chief of police said this. He said, 146 00:06:59,279 --> 00:07:02,760 Speaker 3: the goal of traffic should always be to keep it moving, 147 00:07:03,440 --> 00:07:07,360 Speaker 3: even if it's at five miles an hour. People feel 148 00:07:07,400 --> 00:07:09,760 Speaker 3: optimistic as long as they. 149 00:07:09,600 --> 00:07:10,440 Speaker 2: Are going forward. 150 00:07:10,480 --> 00:07:11,960 Speaker 3: I mean you think about like on the highway, if 151 00:07:11,960 --> 00:07:14,480 Speaker 3: you're stuck on seventy or four sixty five or whatever, 152 00:07:15,000 --> 00:07:18,360 Speaker 3: even if you're creeping, As long as you're going you think, well, 153 00:07:18,400 --> 00:07:20,120 Speaker 3: maybe it's right up the road that it is right, 154 00:07:20,200 --> 00:07:22,560 Speaker 3: so you're optimist. It's when you sit there. And the 155 00:07:22,600 --> 00:07:26,640 Speaker 3: same thing is true with our classes in society. If 156 00:07:26,640 --> 00:07:30,160 Speaker 3: people are moving forward, even if it's by one or 157 00:07:30,200 --> 00:07:32,760 Speaker 3: two percent every year, or they feel themselves being elevated, 158 00:07:32,840 --> 00:07:34,360 Speaker 3: or they were able to get a little bit nicer 159 00:07:34,440 --> 00:07:37,960 Speaker 3: car or whatever, they feel hopeful, Hey, this is going 160 00:07:38,040 --> 00:07:39,760 Speaker 3: to keep getting better. I'm going to continue to engage 161 00:07:39,760 --> 00:07:42,840 Speaker 3: in the society. But then when they don't, or they 162 00:07:42,840 --> 00:07:46,640 Speaker 3: start shrinking or going down. People lose hope, they lose optimism, 163 00:07:46,720 --> 00:07:49,600 Speaker 3: and that's when you start seeing the real decay of society.