1 00:00:00,080 --> 00:00:01,080 Speaker 1: And boomers. 2 00:00:01,560 --> 00:00:05,519 Speaker 2: The use of the O on the telephone was for operator. 3 00:00:05,720 --> 00:00:08,879 Speaker 2: They used to tell us to dial O for operator. 4 00:00:09,560 --> 00:00:12,920 Speaker 2: So if you're a gen xer or older, the use 5 00:00:13,000 --> 00:00:17,880 Speaker 2: of saying OH for zero is totally appropriate. 6 00:00:21,239 --> 00:00:21,479 Speaker 1: Zero. 7 00:00:22,480 --> 00:00:26,079 Speaker 3: There's a difference between a zero a number, and I 8 00:00:26,120 --> 00:00:30,080 Speaker 3: get your point. Yes, dial O for operator zero is 9 00:00:30,120 --> 00:00:35,959 Speaker 3: a number. Oh is a letter. Uh, I can't use Well, 10 00:00:36,040 --> 00:00:38,880 Speaker 3: let's do this, we asked. We had a talk back 11 00:00:39,440 --> 00:00:46,280 Speaker 3: in which we heard a a gaggle of dogs, gagle 12 00:00:46,280 --> 00:00:49,240 Speaker 3: of dogs, and then dragon one to know what a 13 00:00:49,280 --> 00:00:52,600 Speaker 3: gaggle of lawyers was, and I think the best answer 14 00:00:52,800 --> 00:00:56,720 Speaker 3: was no. There's actually two good answers. A murder of 15 00:00:56,800 --> 00:01:00,160 Speaker 3: lawyers same as crows, so a murder of lawyers, which 16 00:01:00,440 --> 00:01:05,280 Speaker 3: many people may interpret as murder the lawyers out of Shakespeare. 17 00:01:06,120 --> 00:01:09,679 Speaker 3: First we kill all the lawyers, or this one from 18 00:01:09,720 --> 00:01:13,840 Speaker 3: Goober number seventy one and zero five, Michael. A gaggle 19 00:01:13,880 --> 00:01:20,039 Speaker 3: of lawyers would be a domestic terror network, except you 20 00:01:20,040 --> 00:01:21,760 Speaker 3: can never have too many lawyers. 21 00:01:22,160 --> 00:01:25,319 Speaker 4: There's another one in here that a cackle of lawyers. Yes, 22 00:01:25,880 --> 00:01:28,520 Speaker 4: I'm still particular to my hemorrhoid of lawyers. 23 00:01:28,680 --> 00:01:30,679 Speaker 3: Yeah, I have an agree. I think that one is 24 00:01:30,680 --> 00:01:32,920 Speaker 3: correct too. But let's go back to the dogs for 25 00:01:32,959 --> 00:01:38,319 Speaker 3: a moment. I've been asked not to identify this individual, 26 00:01:38,440 --> 00:01:43,520 Speaker 3: so I respect their confidentiality. But they write this Michael 27 00:01:43,560 --> 00:01:46,560 Speaker 3: and Dragon, please do not identify me this time. I'm 28 00:01:46,560 --> 00:01:49,680 Speaker 3: a loyal goober and the word goober is in all caps. 29 00:01:49,880 --> 00:01:50,000 Speaker 1: Uh. 30 00:01:50,040 --> 00:01:53,000 Speaker 4: Oh, those are the ones that scare me. 31 00:01:53,160 --> 00:01:55,840 Speaker 1: Yes, because you know they're backcrab crazy. 32 00:01:56,720 --> 00:02:00,800 Speaker 3: Those are my dogs, Beagles for rabbit hunting, all legal with. 33 00:02:00,760 --> 00:02:01,760 Speaker 1: The shots and tags. 34 00:02:01,800 --> 00:02:07,600 Speaker 3: Well, I assume, So why are you, like, why do 35 00:02:07,600 --> 00:02:09,600 Speaker 3: you have to scream at me that they're all legal 36 00:02:09,600 --> 00:02:12,600 Speaker 3: with shots and tags. I didn't say they weren't. Most 37 00:02:12,600 --> 00:02:15,839 Speaker 3: states have a legal limit to number of dogs. Oh, 38 00:02:16,000 --> 00:02:19,639 Speaker 3: now we're getting to the truth of the money. In 39 00:02:19,680 --> 00:02:25,720 Speaker 3: my world, I have more than several dogs, hunters, herders, 40 00:02:26,000 --> 00:02:29,640 Speaker 3: rescued from poor conditions and from people who died, and 41 00:02:29,800 --> 00:02:31,280 Speaker 3: dogs needed homes. 42 00:02:31,800 --> 00:02:32,920 Speaker 1: All are welcome here. 43 00:02:33,480 --> 00:02:37,960 Speaker 3: I purchase high quality dog food by the ton in 44 00:02:38,040 --> 00:02:41,960 Speaker 3: all caps. I bet you even beat me when it 45 00:02:41,960 --> 00:02:46,200 Speaker 3: comes to dog food. Good grief. Both my feed store 46 00:02:46,240 --> 00:02:50,520 Speaker 3: and my veterinarian love my patronage. No dog goes hungry here. 47 00:02:51,480 --> 00:02:52,160 Speaker 3: There's a home for you. 48 00:02:52,280 --> 00:02:52,640 Speaker 1: Dragon. 49 00:02:53,360 --> 00:02:57,840 Speaker 3: You know when you get kicked out, that's right, there's 50 00:02:57,880 --> 00:03:01,200 Speaker 3: a kennel for you. I even make bespoke food for 51 00:03:01,320 --> 00:03:04,480 Speaker 3: my more picky eaters. It's a good thing I'm retired. 52 00:03:04,720 --> 00:03:09,639 Speaker 3: Have a great day. Let's see Kuber number seventeen twenty one, Mike, 53 00:03:09,680 --> 00:03:12,919 Speaker 3: I've got two red healers, one blue healer, a massive 54 00:03:13,160 --> 00:03:16,760 Speaker 3: shepherd mix. What the hell's that look like? And a 55 00:03:16,800 --> 00:03:19,200 Speaker 3: shepherd whip it mix. I can kind of see that. 56 00:03:20,040 --> 00:03:22,760 Speaker 3: We volunteer for our local shelter, Soul Dog Rescue in 57 00:03:22,800 --> 00:03:25,880 Speaker 3: Fort Lopton. Have had thirteen dogs at my house at 58 00:03:25,880 --> 00:03:29,760 Speaker 3: one point. Noah Meth has ever too many. They don't 59 00:03:29,800 --> 00:03:32,560 Speaker 3: talk politics and are always happy to see you. 60 00:03:33,160 --> 00:03:35,640 Speaker 4: That goes to the old joke you put your wife 61 00:03:35,640 --> 00:03:36,840 Speaker 4: in the trunk of a car, and you put your 62 00:03:36,840 --> 00:03:38,280 Speaker 4: dog in the trunk of a car. Leave them there 63 00:03:38,280 --> 00:03:40,480 Speaker 4: for an hour, open the trunk. See which one is 64 00:03:40,480 --> 00:03:41,240 Speaker 4: happy to see you. 65 00:03:45,640 --> 00:03:49,440 Speaker 3: Let's see uh Guber seventy seven to fifty six, Mike. 66 00:03:49,520 --> 00:03:53,560 Speaker 3: Two dogs, one is lonely, three is too expensive. I 67 00:03:53,640 --> 00:03:57,400 Speaker 3: agree with that, except I do believe that dogs are 68 00:03:57,440 --> 00:03:59,600 Speaker 3: so domesticated that they really can. 69 00:03:59,760 --> 00:04:01,760 Speaker 1: Be happy in a home alone. 70 00:04:02,400 --> 00:04:05,960 Speaker 3: But watching my two Limburgers play together, and one's much 71 00:04:06,000 --> 00:04:09,320 Speaker 3: older than the other. They're half sisters. But the older 72 00:04:09,360 --> 00:04:12,560 Speaker 3: dog she now turns seven, and I think the young 73 00:04:12,600 --> 00:04:15,480 Speaker 3: one just turned three, so they're about four years apart. 74 00:04:15,680 --> 00:04:19,520 Speaker 3: But the younger one, who I think is adhd or 75 00:04:19,560 --> 00:04:23,119 Speaker 3: on the spectrum somewhere, keeps the what are you laughing, 76 00:04:23,160 --> 00:04:27,640 Speaker 3: I'm just being honest about Michaelsburgers, right, I think the 77 00:04:27,720 --> 00:04:31,640 Speaker 3: younger one keeps the older one younger. So, but three 78 00:04:31,640 --> 00:04:34,480 Speaker 3: Saint Bernard's or I think three Liamburger's. First of all 79 00:04:34,480 --> 00:04:38,920 Speaker 3: the Limburgers shed like crazy, and Tamra would, well, those 80 00:04:38,960 --> 00:04:42,720 Speaker 3: of you hate me being on K zero A I would. 81 00:04:42,880 --> 00:04:46,800 Speaker 3: I'd be dead anyway. So there's that. There are other 82 00:04:46,839 --> 00:04:50,640 Speaker 3: differences between o's and zero, says goober number thirty eight sixty. 83 00:04:51,600 --> 00:04:55,000 Speaker 3: For instance, an O is round, but his zero is 84 00:04:55,520 --> 00:05:00,440 Speaker 3: oval very good, and of course zero sixty five one. 85 00:05:00,640 --> 00:05:05,800 Speaker 3: You are being removed from the list of Goobers, not permanently, 86 00:05:05,920 --> 00:05:11,280 Speaker 3: just temporarily, Mike a septic tank of lawyers. 87 00:05:11,320 --> 00:05:13,440 Speaker 4: That's not bad. That's not bad. 88 00:05:13,480 --> 00:05:16,480 Speaker 3: And that's why she's being or he or she's being 89 00:05:17,040 --> 00:05:20,960 Speaker 3: demoted for We'll give them a fifteen minute demotion. 90 00:05:21,400 --> 00:05:23,440 Speaker 4: No text for fifteen minutes, no text. 91 00:05:23,320 --> 00:05:24,080 Speaker 1: For fifteen minutes. 92 00:05:24,120 --> 00:05:27,440 Speaker 3: That's harsh, I know, but sometimes sometimes you gotta treat 93 00:05:27,480 --> 00:05:30,040 Speaker 3: these goobers just like they they deserve to be treated. 94 00:05:30,520 --> 00:05:32,720 Speaker 1: There's a woman that walks at the dog park. 95 00:05:33,760 --> 00:05:36,560 Speaker 3: Who she just pays the ticket, and I think the 96 00:05:36,680 --> 00:05:40,040 Speaker 3: rangers have just given up giving tickets. Your limited to 97 00:05:40,080 --> 00:05:42,320 Speaker 3: three dogs at the dog at this particular dog park. 98 00:05:42,600 --> 00:05:45,640 Speaker 3: She comes out there with either five or six poodles. 99 00:05:46,120 --> 00:05:49,400 Speaker 3: It's a pound of poodles. It's a lot of poodles. 100 00:05:49,760 --> 00:05:55,000 Speaker 3: On Sunday, The New York Times ran an essay that, well, 101 00:05:55,080 --> 00:06:00,560 Speaker 3: let me just read you the title, economists hate this idea. 102 00:06:01,960 --> 00:06:04,360 Speaker 3: It could be a way out of the affordability crisis. 103 00:06:07,080 --> 00:06:10,960 Speaker 3: What do you think they're talking about. Democrats dominated the 104 00:06:11,000 --> 00:06:16,120 Speaker 3: November November four elections, but the other big winner was 105 00:06:16,560 --> 00:06:21,640 Speaker 3: price controls. In New York, the democrats socialist excuse me, 106 00:06:22,000 --> 00:06:24,160 Speaker 3: the democrats, see I started to actually read what was 107 00:06:24,200 --> 00:06:27,400 Speaker 3: on the on the in the editorial, as opposed to 108 00:06:27,400 --> 00:06:29,359 Speaker 3: tell you what I really meant. In New York, the 109 00:06:29,400 --> 00:06:33,159 Speaker 3: democrat socialist Zoefram mom Donnie ran for mayor on a 110 00:06:33,160 --> 00:06:38,640 Speaker 3: simple promise to freeze the rent, freeze the rent. So 111 00:06:38,760 --> 00:06:42,920 Speaker 3: now the New York Times is out pushing for price controls. 112 00:06:46,520 --> 00:06:51,599 Speaker 3: The hard The core truth is very simple. Every dollar 113 00:06:51,680 --> 00:06:56,839 Speaker 3: of relief to one party becomes a dollar of burden 114 00:06:57,279 --> 00:07:00,760 Speaker 3: on somebody else, minus the loss that you get from 115 00:07:00,760 --> 00:07:05,080 Speaker 3: the distortion in the price. Caps don't magic that budget 116 00:07:05,800 --> 00:07:10,960 Speaker 3: constrain away. It's just the fact of ones and zeroes 117 00:07:11,080 --> 00:07:16,800 Speaker 3: a price controls. Prices allocate scarce goods. Now, I don't 118 00:07:16,800 --> 00:07:19,240 Speaker 3: mean scarce good. I mean you can have a you 119 00:07:19,280 --> 00:07:23,280 Speaker 3: can have more than enough porkin beans. So you go 120 00:07:23,320 --> 00:07:25,560 Speaker 3: to if you go to the grocery store and you 121 00:07:25,640 --> 00:07:28,200 Speaker 3: go to the bean aisle, you'll find all kinds that 122 00:07:28,240 --> 00:07:32,280 Speaker 3: you'll pint fuck fine uh, pork and beans, black beans, 123 00:07:32,440 --> 00:07:34,760 Speaker 3: red beans, every kind of bean, pentole beans, every kind 124 00:07:34,800 --> 00:07:39,080 Speaker 3: of bean. You can possibly imagine that in that particular aisle, 125 00:07:39,320 --> 00:07:43,360 Speaker 3: in that section where the beans are. But beans are 126 00:07:43,400 --> 00:07:49,560 Speaker 3: still a scarce good. Why because prices allocate the availability 127 00:07:49,680 --> 00:07:58,160 Speaker 3: of beans. So when the state moves in and caps prices, scarcity, 128 00:07:58,440 --> 00:08:02,720 Speaker 3: scarcity doesn't vanish. It just shows up as things like 129 00:08:03,680 --> 00:08:08,720 Speaker 3: a que aligne, rationing, decay and then the exclusion of 130 00:08:08,800 --> 00:08:12,720 Speaker 3: newcomers without political pull or lucky timing, because the number 131 00:08:12,760 --> 00:08:16,119 Speaker 3: of apartments are tillawatt hours or whatever you're talking about, 132 00:08:16,200 --> 00:08:20,679 Speaker 3: or pork and beans is fixed by yesterday's investment and rules. 133 00:08:21,240 --> 00:08:25,600 Speaker 3: So in playing terms, rent control, like the New York 134 00:08:25,640 --> 00:08:30,560 Speaker 3: Times advocates, is a tax on current landlords that pays 135 00:08:30,600 --> 00:08:35,120 Speaker 3: a subsidy to current tenants with the deadweight loss on top. 136 00:08:35,440 --> 00:08:36,280 Speaker 1: And it doesn't make. 137 00:08:36,160 --> 00:08:39,679 Speaker 3: Housing affordable for society as a whole, only for the 138 00:08:39,760 --> 00:08:42,839 Speaker 3: lucky insider who holds the controlled leases, while all the 139 00:08:42,880 --> 00:08:45,679 Speaker 3: outsiders bear the shortage and the search costs. 140 00:08:47,200 --> 00:08:48,280 Speaker 1: Who wins who loses. 141 00:08:49,640 --> 00:08:54,079 Speaker 3: The immediate winners of rent camp of rent caps are 142 00:08:54,120 --> 00:08:59,839 Speaker 3: incumbent tenants whose units get covered because oh my rint 143 00:08:59,840 --> 00:09:00,680 Speaker 3: can go up. 144 00:09:00,800 --> 00:09:03,320 Speaker 1: I'm the winner. Who's the loser. 145 00:09:03,679 --> 00:09:08,120 Speaker 3: The immediate loser are the landlords and indirectly all of 146 00:09:08,120 --> 00:09:12,360 Speaker 3: the would be renters who must pay with wait time 147 00:09:12,960 --> 00:09:18,440 Speaker 3: or side payments, or lost opportunity by foregoing opportunity in 148 00:09:18,520 --> 00:09:21,840 Speaker 3: dynamic cities because controlled units aren't going to turn over 149 00:09:22,160 --> 00:09:25,080 Speaker 3: and the uncontrolled units will continue to climb in price. 150 00:09:25,720 --> 00:09:29,640 Speaker 3: So if you're looking for an apartment in Manhattan, you're screwed. 151 00:09:30,760 --> 00:09:33,760 Speaker 3: The biggest long run losers are the young, mobile and 152 00:09:33,800 --> 00:09:38,760 Speaker 3: the ambitious. You know, the graduate of the University of 153 00:09:38,760 --> 00:09:43,839 Speaker 3: Colorado a Boulder are harwd. The graduate who can't get 154 00:09:43,880 --> 00:09:48,360 Speaker 3: a foothold in downtown Denver if there were rent controls here, 155 00:09:48,440 --> 00:09:51,800 Speaker 3: or San Francisco, New York, because the turnover stalls out 156 00:09:52,040 --> 00:09:54,439 Speaker 3: and then the maintenance and new supply received under the 157 00:09:54,480 --> 00:09:59,679 Speaker 3: shadow of confiscatory rules and the expectations that they were 158 00:09:59,720 --> 00:10:00,160 Speaker 3: you to turn or. 159 00:10:00,559 --> 00:10:03,199 Speaker 1: Just this once again and again and again. 160 00:10:04,960 --> 00:10:10,000 Speaker 3: The rules of economics still applies now. Economists objective price 161 00:10:10,040 --> 00:10:14,840 Speaker 3: ceilings because they jam the signals that call forth investment, that. 162 00:10:15,120 --> 00:10:15,960 Speaker 1: Allow or. 163 00:10:17,840 --> 00:10:23,240 Speaker 3: Permit maintenance, and of course the blocks entry even caps 164 00:10:23,960 --> 00:10:27,719 Speaker 3: set just above costs. That's gonna dull in centies and 165 00:10:27,760 --> 00:10:31,480 Speaker 3: degrade the quality. Is owner's ration rationally cut all the 166 00:10:31,559 --> 00:10:36,240 Speaker 3: marginal rehabs or maintenance all their future projects. Because of 167 00:10:36,280 --> 00:10:42,319 Speaker 3: the regulatory risk that past experience shows rarely fades on schedule. 168 00:10:43,440 --> 00:10:50,840 Speaker 3: Demand subsidies layered on top constraints. Supply mostly bids up prices, 169 00:10:51,160 --> 00:10:55,600 Speaker 3: transfers value to the least elastic side, and then frequently 170 00:10:55,640 --> 00:10:59,000 Speaker 3: the property owner or the utility or the being manual 171 00:10:59,160 --> 00:11:02,800 Speaker 3: that being processed U proving again that trying to buy 172 00:11:02,960 --> 00:11:07,439 Speaker 3: pass scarcity with money or mandates moves the bump under 173 00:11:07,440 --> 00:11:11,880 Speaker 3: the rug, not out of the carpet. History is really 174 00:11:11,880 --> 00:11:16,240 Speaker 3: harsh on these temporary targeted controls. All we have to 175 00:11:16,280 --> 00:11:17,720 Speaker 3: do is just look at the history. We see what 176 00:11:17,800 --> 00:11:23,080 Speaker 3: goes on. New York's wartime measures were sold as emergency steps. 177 00:11:24,320 --> 00:11:27,000 Speaker 3: You'll hear that all the time, and everything's an emergency now. 178 00:11:27,679 --> 00:11:33,479 Speaker 3: Yet the scaffolding of rent regulation metastasized across decades, exactly 179 00:11:33,559 --> 00:11:38,800 Speaker 3: as political economy predicts when concentrated beneficiaries mobilized so they 180 00:11:38,840 --> 00:11:43,800 Speaker 3: can preserve their gains, and then sunset clauses become sunrise clauses. 181 00:11:44,880 --> 00:11:49,000 Speaker 3: The core problem is credibility. No government combine its future self, 182 00:11:49,320 --> 00:11:53,720 Speaker 3: and investors price that risk. So a policy that trades 183 00:11:54,040 --> 00:11:58,000 Speaker 3: relief today for a weaker long run investment often delivers 184 00:11:58,040 --> 00:12:02,880 Speaker 3: exactly that trade repeatedly, with compounding consequences for stock quality, mobility. 185 00:12:03,200 --> 00:12:07,880 Speaker 3: It just compounds itself. You invoke price controls and all 186 00:12:07,920 --> 00:12:10,000 Speaker 3: those things on the margins, you don't spend the money 187 00:12:10,000 --> 00:12:17,480 Speaker 3: on maintenance, new construction, whatever. It just begins to compound itself, 188 00:12:18,679 --> 00:12:23,200 Speaker 3: which leads me to the next point. Supply is policy 189 00:12:23,520 --> 00:12:29,200 Speaker 3: if the objective of If you're objective is lower rents 190 00:12:29,480 --> 00:12:34,040 Speaker 3: or say, lower utility bills, the durable path is supply. 191 00:12:35,520 --> 00:12:41,560 Speaker 3: Remove zoning choke points, accelerate by ride approvals, Relax height 192 00:12:41,600 --> 00:12:47,560 Speaker 3: and density caps, streamline permits, reform labor and licensing frictions 193 00:12:47,559 --> 00:12:50,880 Speaker 3: that make adding units or megawatts or more cans of 194 00:12:50,920 --> 00:12:55,280 Speaker 3: beans a decade long obstacle. Course supply is also about 195 00:12:55,360 --> 00:13:03,199 Speaker 3: using what exists allow lady us or room rentals, conversions, 196 00:13:03,400 --> 00:13:08,400 Speaker 3: ease exit frictions for seniors, sucking over large homes by 197 00:13:08,960 --> 00:13:13,840 Speaker 3: reforming capital gains, reforming the property tax cliffs that many 198 00:13:13,880 --> 00:13:19,160 Speaker 3: seniors face, and fixed contract rules that discourage a landlord 199 00:13:19,840 --> 00:13:24,679 Speaker 3: from serving a marginal tenant, all of which expand effective 200 00:13:24,960 --> 00:13:28,959 Speaker 3: vacancye now. Not in the future, not in the future, 201 00:13:29,080 --> 00:13:32,080 Speaker 3: you can't even predict. But this is what the New 202 00:13:32,120 --> 00:13:40,400 Speaker 3: York Times is proposing. There is a powerful demand. I've tried. 203 00:13:40,480 --> 00:13:44,320 Speaker 3: I don't think I have yet in this segment. But 204 00:13:45,200 --> 00:13:51,400 Speaker 3: the word affordability is the new buzzword affordability, and that 205 00:13:51,480 --> 00:13:55,840 Speaker 3: creates this political temptation to do something right now. So 206 00:13:55,880 --> 00:13:57,800 Speaker 3: when you get an op ed like the New York Time, 207 00:13:58,200 --> 00:14:04,920 Speaker 3: carefully designed to temprairiy caps alongside ambitious buildouts that's aimed 208 00:14:04,920 --> 00:14:08,800 Speaker 3: to satisfy that desire to do something now. But we're 209 00:14:08,800 --> 00:14:13,720 Speaker 3: talking about politics, we're not talking about physics. Because the 210 00:14:13,800 --> 00:14:18,079 Speaker 3: budget constraints remain, and so do incentive effects that shrink 211 00:14:18,080 --> 00:14:21,560 Speaker 3: tomorrow's pie so that you can try to cover today's promise. 212 00:14:21,680 --> 00:14:22,960 Speaker 1: Economists are. 213 00:14:24,360 --> 00:14:30,000 Speaker 3: Most useful when resisting, pushing aside that allure of liver 214 00:14:30,120 --> 00:14:34,560 Speaker 3: expectations to rules that have stood for what thousands of 215 00:14:34,640 --> 00:14:40,920 Speaker 3: years of trial controls distort shortages, then follow maintenance and 216 00:14:41,080 --> 00:14:47,120 Speaker 3: investment begins to fade, and insiders prevail over outsiders who 217 00:14:47,320 --> 00:14:52,040 Speaker 3: most need access to opportunity, or I would even phrase it, 218 00:14:52,520 --> 00:14:56,000 Speaker 3: as I think about it a little differently, it also 219 00:14:56,880 --> 00:15:01,840 Speaker 3: takes those outsiders who not just we need access to opportunity, 220 00:15:02,200 --> 00:15:06,960 Speaker 3: but they want the access to opportunity they've got in 221 00:15:07,000 --> 00:15:10,920 Speaker 3: a very crude way, they got money burning in their pocket. 222 00:15:11,920 --> 00:15:15,000 Speaker 3: But why would you go spend your money to build 223 00:15:15,080 --> 00:15:19,440 Speaker 3: some more apartments. They're going to be subjected to rent 224 00:15:19,920 --> 00:15:23,880 Speaker 3: ice controls. Why would you start processing more beans when 225 00:15:23,960 --> 00:15:26,960 Speaker 3: you've got the money in the capitol and you've got 226 00:15:26,960 --> 00:15:29,960 Speaker 3: the supply where you could you know, sell even more beans, 227 00:15:30,040 --> 00:15:32,960 Speaker 3: capture more market share, but there's a price control on it. 228 00:15:33,080 --> 00:15:36,560 Speaker 3: So you've taken away that incentive. And when you take 229 00:15:36,600 --> 00:15:40,360 Speaker 3: away that incentive for someone to produce more apartments or 230 00:15:40,400 --> 00:15:45,920 Speaker 3: more beans than what scarcity moves in. And when scarcity 231 00:15:45,960 --> 00:15:50,200 Speaker 3: moves in, what happens next? Prices go up. You know, 232 00:15:50,280 --> 00:15:53,200 Speaker 3: we have lessons we can learn from this, but nobody 233 00:15:53,200 --> 00:15:55,320 Speaker 3: seems to want to do it. And the thing that 234 00:15:55,360 --> 00:16:00,400 Speaker 3: frustrates me the most is these lessons are never taught. Oh, 235 00:16:00,480 --> 00:16:02,480 Speaker 3: you took an econ class in college. 236 00:16:02,520 --> 00:16:03,280 Speaker 1: Woop poop do do? 237 00:16:03,880 --> 00:16:07,240 Speaker 3: I bet you didn't take one economics class in high school. 238 00:16:07,880 --> 00:16:10,680 Speaker 3: And whatever you took in econ one oh one in 239 00:16:10,840 --> 00:16:13,800 Speaker 3: undergraduate school, you were so focused on your major you 240 00:16:13,800 --> 00:16:18,200 Speaker 3: forgot about the lessons about rents and power. And so 241 00:16:18,280 --> 00:16:20,880 Speaker 3: when you forget those lessons, you're doomed to do what 242 00:16:21,400 --> 00:16:22,520 Speaker 3: repeat the mistakes. 243 00:16:22,680 --> 00:16:26,120 Speaker 5: Michael, who was at goober That, said that dialing oh 244 00:16:26,640 --> 00:16:30,880 Speaker 5: for operator was part of his lexicon when he was 245 00:16:31,040 --> 00:16:36,000 Speaker 5: growing up. I always heard dial zero for operator, later 246 00:16:36,080 --> 00:16:39,360 Speaker 5: on press zero for operator. I mean, come on, did 247 00:16:39,360 --> 00:16:42,000 Speaker 5: this guy come from a place where the invention in 248 00:16:42,120 --> 00:16:43,520 Speaker 5: numbers arrived? 249 00:16:43,520 --> 00:16:44,920 Speaker 4: If youw Millennia too late. 250 00:16:47,240 --> 00:16:51,240 Speaker 3: Now we got an argument between a rotary dial telephone 251 00:16:51,440 --> 00:16:55,880 Speaker 3: or maybe maybe a princess phone, and so you pushed. 252 00:16:55,920 --> 00:16:57,960 Speaker 1: Maybe we got a push button phone. 253 00:16:58,240 --> 00:17:02,320 Speaker 3: Oohad pink princess phone at home. 254 00:17:02,960 --> 00:17:05,080 Speaker 4: I just love it when they fight with each other, 255 00:17:05,320 --> 00:17:07,520 Speaker 4: I know, because we can just sit back and let go. 256 00:17:07,840 --> 00:17:10,359 Speaker 4: We just let them go tomorrow. 257 00:17:10,480 --> 00:17:10,960 Speaker 1: Don't forget. 258 00:17:11,040 --> 00:17:13,640 Speaker 3: Let's help those in need with Koa's holiday food drive 259 00:17:13,720 --> 00:17:17,320 Speaker 3: benefiting Food Bank of the Rockies, a good organization. You 260 00:17:17,359 --> 00:17:20,640 Speaker 3: can join KOA nine to nine yours truly at King 261 00:17:20,720 --> 00:17:25,600 Speaker 3: Soupers at Colorado and Yale. Donate turkeys, no, not yourself, 262 00:17:25,600 --> 00:17:28,919 Speaker 3: a real turkey, food or cash through a QR code. 263 00:17:29,000 --> 00:17:31,160 Speaker 1: Hey dragon, can I bring my own QR code? 264 00:17:31,760 --> 00:17:31,920 Speaker 4: No? 265 00:17:32,240 --> 00:17:34,120 Speaker 1: Oh I have to use the official QR code? 266 00:17:34,200 --> 00:17:34,440 Speaker 4: Yes? 267 00:17:34,600 --> 00:17:37,119 Speaker 1: Oh well, how are they gonna know? 268 00:17:37,600 --> 00:17:39,880 Speaker 3: I'll just I'll have a QR code and a white 269 00:17:39,920 --> 00:17:42,560 Speaker 3: piece of paper and I'll just tape it to the 270 00:17:42,560 --> 00:17:42,960 Speaker 3: back of. 271 00:17:42,920 --> 00:17:46,760 Speaker 1: My Wouldn't that be awful? Can you imagine some dirtbag 272 00:17:46,880 --> 00:17:47,320 Speaker 1: doing that? 273 00:17:47,560 --> 00:17:49,480 Speaker 3: You're trying to raise money for a food bank and 274 00:17:49,520 --> 00:17:51,200 Speaker 3: you take your own QR code. 275 00:17:51,400 --> 00:17:52,879 Speaker 4: I'm sure it's been done before. 276 00:17:52,920 --> 00:17:56,760 Speaker 3: Oh my gosh uh anyway presented by Red Bird Farms, Colorado, 277 00:17:56,840 --> 00:17:57,840 Speaker 3: but GMC. 278 00:17:57,600 --> 00:17:59,600 Speaker 1: Dealers and Koha. 279 00:18:01,440 --> 00:18:03,800 Speaker 3: I'm going to finish the price controls and then I 280 00:18:03,800 --> 00:18:05,560 Speaker 3: have a few text messages I want to get to 281 00:18:05,920 --> 00:18:07,919 Speaker 3: in case you need a map to know where we're going. 282 00:18:08,359 --> 00:18:12,040 Speaker 3: So back to the price controls for a moment. Have 283 00:18:12,119 --> 00:18:15,920 Speaker 3: you ever heard of the Lindback warning? As their Lindback 284 00:18:16,680 --> 00:18:20,879 Speaker 3: put it pretty starkly next to bombing something, You're going 285 00:18:20,920 --> 00:18:24,000 Speaker 3: to go bomb the crap out of something. Rent control 286 00:18:24,040 --> 00:18:29,560 Speaker 3: has been among the most effective techniques known for destroying 287 00:18:29,600 --> 00:18:30,159 Speaker 3: a city. 288 00:18:31,400 --> 00:18:31,520 Speaker 1: Now. 289 00:18:31,560 --> 00:18:38,359 Speaker 3: He reached that conclusion by looking across decades the comparative experience, 290 00:18:39,040 --> 00:18:46,040 Speaker 3: and it sighted or I cited because it captures the 291 00:18:46,160 --> 00:18:52,280 Speaker 3: cumulative damage of chronic under maintenance, the exit of capital, 292 00:18:53,119 --> 00:18:56,480 Speaker 3: and destalled mobility. Think about each one of those things. 293 00:18:56,480 --> 00:19:02,120 Speaker 3: When you put price controls on, it is damage that accumulates. 294 00:19:02,800 --> 00:19:09,120 Speaker 3: There's chronic under maintenance. Well I'm stuck at this price level. Now, 295 00:19:09,160 --> 00:19:12,320 Speaker 3: if you're stuck at that price level on your rent 296 00:19:12,880 --> 00:19:18,360 Speaker 3: as a landlord, what about old say light bulbs, or 297 00:19:18,400 --> 00:19:21,280 Speaker 3: you gotta have plumbing fixed, or you got to put 298 00:19:21,320 --> 00:19:23,600 Speaker 3: a new flooring in, or you have to paint. All 299 00:19:23,600 --> 00:19:27,840 Speaker 3: of those prices keep going up, but your income from 300 00:19:27,880 --> 00:19:31,000 Speaker 3: your rent control department does not. This is what this 301 00:19:31,080 --> 00:19:32,920 Speaker 3: is what it's Overham wants to do in New York City. 302 00:19:33,080 --> 00:19:35,240 Speaker 3: And this is what a bunch a bunch of socialists 303 00:19:35,240 --> 00:19:40,080 Speaker 3: things is. The is the cure all for affordability. So 304 00:19:40,119 --> 00:19:45,240 Speaker 3: you impose price controls, so you start deferring maintenance because 305 00:19:45,320 --> 00:19:47,680 Speaker 3: it's costing too much and you don't have that capital, 306 00:19:48,119 --> 00:19:51,679 Speaker 3: particularly if you're if you're operating on the margins, so 307 00:19:51,760 --> 00:19:54,600 Speaker 3: you have under maintenance and then you have the exit 308 00:19:54,640 --> 00:19:59,960 Speaker 3: of capital. Why would I loan you money if I'm 309 00:20:00,080 --> 00:20:02,639 Speaker 3: a mortgage or why would I loan you money to 310 00:20:02,720 --> 00:20:05,720 Speaker 3: go out and build an apartment complex when I know 311 00:20:05,880 --> 00:20:08,040 Speaker 3: that your income is going to be capped at a 312 00:20:08,080 --> 00:20:10,840 Speaker 3: certain amount, and I know your expenses are going to 313 00:20:10,920 --> 00:20:13,840 Speaker 3: be over here, and those expenses are going to fluctuate, 314 00:20:13,960 --> 00:20:16,919 Speaker 3: most likely rise, but your income is going to remain stable. 315 00:20:18,200 --> 00:20:19,040 Speaker 1: I'm not going to lower you. 316 00:20:19,240 --> 00:20:21,920 Speaker 3: I'm not going to loan you that money to build 317 00:20:21,960 --> 00:20:24,440 Speaker 3: that apartment unless I know that you've got a whole 318 00:20:24,480 --> 00:20:27,800 Speaker 3: bunch of capital back here that can absorb and maintain 319 00:20:27,960 --> 00:20:32,880 Speaker 3: that apartment complex. So you have an exit of capital, 320 00:20:33,640 --> 00:20:38,399 Speaker 3: and then you have stalled mobility. The person who is 321 00:20:38,440 --> 00:20:42,280 Speaker 3: in a rent controlled apartment, let's just say, you know, 322 00:20:42,359 --> 00:20:46,120 Speaker 3: it's a boyfriend and a girlfriend. It's in a boyfriend's name, 323 00:20:46,960 --> 00:20:51,600 Speaker 3: pretty typical in New York. But they have a family, 324 00:20:52,040 --> 00:20:56,439 Speaker 3: they they decide to have a baby. Now they can't 325 00:20:56,480 --> 00:20:58,879 Speaker 3: get to a larger apartment because they can't afford it, 326 00:20:58,920 --> 00:21:02,359 Speaker 3: because then the rent control apartment and once they move out, boom, 327 00:21:02,440 --> 00:21:05,000 Speaker 3: Now that rent can go up. So they're never going 328 00:21:05,040 --> 00:21:08,520 Speaker 3: to move. So you've got stalled mobility. And when you 329 00:21:08,560 --> 00:21:13,399 Speaker 3: have stalled mobility, that means that the upward mobility gets compressed, 330 00:21:13,400 --> 00:21:16,879 Speaker 3: if not stalled completely. So people trying to move into 331 00:21:16,920 --> 00:21:21,120 Speaker 3: those lower cost apartments they're screwed. They can't do it. 332 00:21:21,720 --> 00:21:26,320 Speaker 3: So you have perpetuated the problem of affordability of so 333 00:21:26,480 --> 00:21:29,480 Speaker 3: called affordable housing. The New York Times is out there 334 00:21:29,520 --> 00:21:34,680 Speaker 3: advocating this. They're actually advocating this, as is the new 335 00:21:34,720 --> 00:21:39,720 Speaker 3: Mayor of New York too. The rhetorical sharpness endears because 336 00:21:39,760 --> 00:21:43,399 Speaker 3: the mechanism is so mundane. The city is its flow 337 00:21:43,480 --> 00:21:48,360 Speaker 3: of reinvestment and entrance, as people move in and out, 338 00:21:48,560 --> 00:21:53,280 Speaker 3: as reinvestment occurs and all these price controls systematically erode 339 00:21:53,320 --> 00:21:57,080 Speaker 3: both of those things, first beginning at the margin, then 340 00:21:57,160 --> 00:22:01,640 Speaker 3: in the middle, until finally vitality way to just stasis. 341 00:22:01,960 --> 00:22:03,160 Speaker 1: You're just stuck. 342 00:22:04,119 --> 00:22:11,400 Speaker 3: When the government insists on short run help, use transparent 343 00:22:11,520 --> 00:22:15,639 Speaker 3: on budget tools, time limited means testing cash transfers or 344 00:22:15,680 --> 00:22:20,280 Speaker 3: maybe vouchers to households paired with hard front loaded supply 345 00:22:20,440 --> 00:22:25,760 Speaker 3: deregulation milestones, rather than implicit taxes on very specific asset 346 00:22:25,800 --> 00:22:30,040 Speaker 3: owners that quietly degrade the base on which future affordability depends. 347 00:22:31,160 --> 00:22:36,119 Speaker 3: Pair those transfers with automatic off ramps that are tied 348 00:22:36,280 --> 00:22:41,800 Speaker 3: to vacancy rates, new unit completions, or maybe priced income ratios, 349 00:22:41,960 --> 00:22:46,200 Speaker 3: so that exit out of that system is governed by 350 00:22:46,480 --> 00:22:52,760 Speaker 3: measurable conditions instead of lobbying muscle. And then approvals for 351 00:22:52,880 --> 00:22:56,159 Speaker 3: new construction or changes or whatever on zoning system or 352 00:22:56,160 --> 00:22:59,960 Speaker 3: whatever that advances on a legally binding calendar, on a 353 00:23:00,160 --> 00:23:03,919 Speaker 3: legally binding bases that allows all of those moving parts 354 00:23:03,960 --> 00:23:04,720 Speaker 3: to begin moving. 355 00:23:05,600 --> 00:23:06,440 Speaker 1: Think of it this way. 356 00:23:06,920 --> 00:23:15,200 Speaker 3: Price controls just freeze everything, mobility, maintenance, everything, And when 357 00:23:15,240 --> 00:23:25,400 Speaker 3: that freezes, what happens? Everything begins to deteriorate. The temptation 358 00:23:25,600 --> 00:23:33,119 Speaker 3: to a to flatter a base of voters is bipartisan. 359 00:23:33,680 --> 00:23:34,639 Speaker 1: Both parties do it. 360 00:23:35,720 --> 00:23:40,719 Speaker 3: Tariffs dressed up as strategic are relatives of price caps 361 00:23:41,240 --> 00:23:46,520 Speaker 3: dressed up as temporary, and both breed permanence, rent seeking, 362 00:23:46,840 --> 00:23:50,639 Speaker 3: investment killing uncertainty that ultimately is going to do what 363 00:23:50,920 --> 00:23:54,120 Speaker 3: it harms the very workers and families that they purport 364 00:23:54,200 --> 00:23:58,520 Speaker 3: to try to shield to try to help. Intellectual honesty 365 00:23:58,600 --> 00:24:01,639 Speaker 3: requires telling voters is what works, even when it is 366 00:24:01,680 --> 00:24:05,520 Speaker 3: slower to show up on a chiron because short run, 367 00:24:05,840 --> 00:24:10,399 Speaker 3: short run theatrics that corrode long run supply is going 368 00:24:10,440 --> 00:24:14,280 Speaker 3: to leave a community poor, less mobile, and more unequal 369 00:24:14,320 --> 00:24:20,760 Speaker 3: than ever it was before. So if the goal is affordability, 370 00:24:20,920 --> 00:24:24,000 Speaker 3: then you've got to lift price controls. You got to 371 00:24:24,040 --> 00:24:27,080 Speaker 3: make room to build, to subdivide, to convert, to move, 372 00:24:27,280 --> 00:24:30,040 Speaker 3: and to maintain. You don't tax it very casual that 373 00:24:30,160 --> 00:24:33,080 Speaker 3: keeps the roofs, attack in projects penciling out, And you 374 00:24:33,119 --> 00:24:36,800 Speaker 3: don't and do not ask price signals to lie when 375 00:24:36,800 --> 00:24:40,280 Speaker 3: hoping that engineers and investors will be you know, will pretend, oh, 376 00:24:40,320 --> 00:24:44,240 Speaker 3: I'm not going to notice that. No, it freezes everything, 377 00:24:44,520 --> 00:24:47,359 Speaker 3: and that's precisely what you don't want to happen. 378 00:24:48,119 --> 00:24:50,600 Speaker 4: Hey, Michael, there's four lawyers in my family. 379 00:24:51,160 --> 00:24:54,720 Speaker 2: When they're all together, we refer to them as a muddle, 380 00:24:55,359 --> 00:24:58,520 Speaker 2: as in a muddle of lawyers. 381 00:24:59,480 --> 00:25:01,800 Speaker 3: I like that one too, and I bet the whole 382 00:25:01,840 --> 00:25:05,439 Speaker 3: conversation is muddled too, because nobody can agree on anything, 383 00:25:05,480 --> 00:25:07,680 Speaker 3: and everybody's got their own opinion, and everybody thinks they're 384 00:25:07,760 --> 00:25:12,680 Speaker 3: right and nobody there's there's no in between. It's one 385 00:25:12,720 --> 00:25:17,920 Speaker 3: or the other, and that's it. I cheated a little 386 00:25:17,920 --> 00:25:21,400 Speaker 3: bit during the break because we have a text message 387 00:25:22,000 --> 00:25:29,000 Speaker 3: that just irritates me. M go number three, four, zero seven. Michael, 388 00:25:29,040 --> 00:25:32,600 Speaker 3: you said earlier zero was a number, Oh was a letter. 389 00:25:33,480 --> 00:25:40,040 Speaker 3: Zero is the absence of numbers, Okay, but that doesn't 390 00:25:40,080 --> 00:25:44,280 Speaker 3: mean that it's not a number. So I asked one 391 00:25:44,280 --> 00:25:52,680 Speaker 3: of the AI platforms is zero a number? Zero is 392 00:25:52,720 --> 00:25:57,359 Speaker 3: an integer, a whole number. It belongs to multiple number sets, 393 00:25:57,560 --> 00:26:01,960 Speaker 3: natural numbers. In some definitions that included zero integers, Z, 394 00:26:02,440 --> 00:26:05,760 Speaker 3: rational numbers, Q, real numbers, are and complex numbers C. 395 00:26:06,200 --> 00:26:10,640 Speaker 3: It satisfies all the basic properties of numbers. You can add, subtract, multiply, 396 00:26:10,800 --> 00:26:12,600 Speaker 3: and with care divide. 397 00:26:12,200 --> 00:26:13,040 Speaker 1: It with it. 398 00:26:13,280 --> 00:26:16,119 Speaker 3: In the number of systems that we use, zero is 399 00:26:16,160 --> 00:26:19,000 Speaker 3: the additive identity for any number. 400 00:26:19,040 --> 00:26:20,200 Speaker 1: For example, x. 401 00:26:20,680 --> 00:26:26,880 Speaker 3: X plus zero equals x the additive identity. It represents 402 00:26:27,040 --> 00:26:31,520 Speaker 3: nothingness or the absence of quantity, but in a very 403 00:26:31,560 --> 00:26:35,560 Speaker 3: precise operational way, not just a placeholder. It's the number 404 00:26:35,560 --> 00:26:38,840 Speaker 3: of elements in the empty set. So that makes a 405 00:26:38,880 --> 00:26:42,879 Speaker 3: foundational in set theory, the modern foundation of all mathematics 406 00:26:43,720 --> 00:26:48,800 Speaker 3: historical fun fact. Zero was invented or discovered relatively late. 407 00:26:48,880 --> 00:26:52,359 Speaker 3: The Babylonians used a placeholder around three hundred BCE, but 408 00:26:52,440 --> 00:26:55,720 Speaker 3: the fully fledged number zero, with its own semblance rules, 409 00:26:56,000 --> 00:27:00,720 Speaker 3: emerged in India around the fifth senth century CEU. It 410 00:27:00,840 --> 00:27:05,119 Speaker 3: spread via Arab mathematicians to Europe, where it faced resistance 411 00:27:05,400 --> 00:27:08,400 Speaker 3: from people like you, because people found the concept of 412 00:27:08,920 --> 00:27:16,280 Speaker 3: nothing being a number as being philosophically weird. Okay, common 413 00:27:16,320 --> 00:27:19,600 Speaker 3: misconceptions that zero is not a number, that it's nothing 414 00:27:20,320 --> 00:27:25,440 Speaker 3: that's wrong. Nothing is what zero measures. But zero itself 415 00:27:25,520 --> 00:27:30,120 Speaker 3: is a perfectly valid number. Division by zero is undefined, 416 00:27:30,240 --> 00:27:35,080 Speaker 3: would say another misconception. Okay, true, but that's a special rule, 417 00:27:35,400 --> 00:27:38,240 Speaker 3: not evidence that zero isn't a number. It's just a 418 00:27:38,320 --> 00:27:42,240 Speaker 3: number that breaks division in the real numbers. In short, yes, 419 00:27:42,400 --> 00:27:47,119 Speaker 3: zero is one hundred percent a number, probably the coolest number, 420 00:27:47,400 --> 00:27:50,920 Speaker 3: because without it, we'd still be stuck with Roman numerals 421 00:27:51,160 --> 00:27:54,600 Speaker 3: and no decent way to do algebra or computing, and 422 00:27:54,600 --> 00:27:56,080 Speaker 3: I wouldn't have anything to talk about. 423 00:27:57,080 --> 00:28:00,640 Speaker 1: So zero is a real number as well. 424 00:28:00,720 --> 00:28:03,639 Speaker 4: You can now wear zero in the NFL as of 425 00:28:03,680 --> 00:28:06,680 Speaker 4: about a year or so ago. And uh Cooper, Jonathan 426 00:28:06,680 --> 00:28:09,640 Speaker 4: Cooper wears zero on the Broncos. So oh, really was that? 427 00:28:09,800 --> 00:28:12,440 Speaker 4: I didn't know that it's a number. Oh all right, 428 00:28:13,520 --> 00:28:20,280 Speaker 4: let's see. I thought there was only husho too. 429 00:28:20,200 --> 00:28:25,399 Speaker 3: Thinking about Oh, this is pretty good about dogs. Giber 430 00:28:25,440 --> 00:28:27,359 Speaker 3: thirty eight sixty two, Mike, I have no use for 431 00:28:27,400 --> 00:28:28,480 Speaker 3: people who don't. 432 00:28:28,320 --> 00:28:32,280 Speaker 1: Like dogs, but I trust a dog when he doesn't 433 00:28:32,359 --> 00:28:33,679 Speaker 1: like a person. True. 434 00:28:33,800 --> 00:28:40,080 Speaker 3: Oh that's so true, just so true. Brownie's number seventy 435 00:28:40,080 --> 00:28:42,000 Speaker 3: seven oh three. I have two dogs, A ninety pound 436 00:28:42,120 --> 00:28:46,640 Speaker 3: mutt had one hundred and fifty pound gladiator Dane. Greta 437 00:28:46,720 --> 00:28:51,040 Speaker 3: Limburger used to follow her on Instagram until I got booted. 438 00:28:53,120 --> 00:28:57,520 Speaker 3: I'm happy to say that Greta the Lionberger never got 439 00:28:57,560 --> 00:28:58,880 Speaker 3: booted off Instagram