Speaker 1: Man, these foods out here quoting Joey Crack out here
Speaker 1: sounding like fat Joe talking about yesterday's price. It's not
Speaker 1: today's price. The price just went up. You sound like
Speaker 1: your gas station right now. Oh lord, let's talk about
Speaker 1: this gas but let's talk about overall inflation, hood politics, y'all.
Speaker 1: What's up everybody? Yeah saying I don't know why y'all
Speaker 1: ain't bought no scooters. Everybody out here with electric cars
Speaker 1: out here brunching looking at you, y'all like, uh, they're
Speaker 1: looking at me too. I got a hybrid, but still
Speaker 1: because uh yo, I think sometimes we're yelling at the
Speaker 1: wrong people over this day. So today I want to
Speaker 1: get into some economic stuff. I want to talk about inflation.
Speaker 1: I want to talk about interest rates. Uh actually who
Speaker 1: and what is responsible for this uh outlandish gas prices.
Speaker 1: Because there's a lot of like, there's a lot of
Speaker 1: hot takes that are very lukewarm. There's a lot of
Speaker 1: just ice cold takes where it's like you don't know
Speaker 1: what you're talking about. There are a lot of funny
Speaker 1: takes where it's like, oh, my girl wanted me to
Speaker 1: take it to like a really expensive place and then
Speaker 1: he put it on a blindfold and then they get
Speaker 1: out at the gas station and it's like, look, I'm
Speaker 1: taking you somewhere expensive. Yeah, but I think we don't
Speaker 1: have a complete understanding of really how these prices are set. Like,
Speaker 1: I don't know what in us thinks that you know,
Speaker 1: you you're yelling at the president, like the president can
Speaker 1: I mean, everybody's like the president American president don't controls
Speaker 1: everybody's price, the price all over the dog all world.
Speaker 1: But anyway, I'm getting ahead of myself. Ken. You got
Speaker 1: a song on the two Pemple Butterfly record called how
Speaker 1: Much a Dollar Cost? And he's basically talking about like
Speaker 1: a dollar cost the price of your soul. That's kind
Speaker 1: of the idea of the song. But I want to
Speaker 1: talk to y'all like, literally, how much do a dollar cost?
Speaker 1: We're gonna talk to a bunch of economics in this one.
Speaker 1: Now check this out. Uh. When I was getting my
Speaker 1: teaching credential for California to be able to teach high
Speaker 1: school in social sciences, the third part of the credentialing
Speaker 1: program to teach at the high school level was an
Speaker 1: economics test, and his thing. I felt that about three
Speaker 1: times and it's not because I think I've said this
Speaker 1: before plenty of times. Not because I didn't know what
Speaker 1: I was talking about. I didn't know how to talk
Speaker 1: about what I was talking about. Does that make sense?
Speaker 1: I didn't understand these terms they was using it. For
Speaker 1: some reason, my eyes would glaze over when food start
Speaker 1: talking about inflation and and and and you know it,
Speaker 1: stagflation and elasticity and you know what I'm saying, like
Speaker 1: reading these charts, and like I would just I would
Speaker 1: glaze over because I was like, dog, I just don't
Speaker 1: get it. So I'm gonna teach you the way that
Speaker 1: I taught myself. If you want to understand economics, we're
Speaker 1: just gonna think of it as two things. The ice
Speaker 1: cream truck or baseball cards. Now, y'all know, dollars are made,
Speaker 1: they made up. They are worth whatever we say they worth.
Speaker 1: It's no magic to it, ain't no formula. They're worth
Speaker 1: whatever we say they're worth. How much the dollar cost
Speaker 1: is how much it costs to print it, and what
Speaker 1: it can get for you. And if there's more of them,
Speaker 1: they're worth less. That's your baseball card, that's your comic,
Speaker 1: But your Pokemon car you call whatever you want. If
Speaker 1: it's too many of them, then they're not rare and
Speaker 1: they're not worth that much. The ones that are worth
Speaker 1: a lot are the ones you can't get your hands on.
Speaker 1: That's why they cost a lot. So if there's not
Speaker 1: a lot in circulation, that that means it's worth a lot.
Speaker 1: If it's too much in circulation, that me ain't worth nothing.
Speaker 1: That's why the FEDS be trying to regulate how many
Speaker 1: dollars are in circulation. Now. Inflation work like this. Your
Speaker 1: mamma give you twenty dollars for the allowance, right, you're lucky.
Speaker 1: My mama mayn't give me no twenty dollars for no allowance.
Speaker 1: But you go to the ice cream truck and you say,
Speaker 1: I got five dollars. What can five dollars get me? Well,
Speaker 1: what if tomorrow what five dollars can get you is
Speaker 1: half of what it could get you today, And it's
Speaker 1: not just the one candy you like, it's just everything
Speaker 1: on the truck costs more. That means that dollar can't
Speaker 1: get you what it you to be able to get you.
Speaker 1: That's called inflation. The question is why are you just
Speaker 1: gonna wake up in the morning and charge more that I
Speaker 1: I mean, does it cost you more? A lot of
Speaker 1: times it's that. Sometimes it's not that. Sometimes it's because
Speaker 1: we know you'll buy it at whatever price we tell you.
Speaker 1: And we're gonna get to the answers of all that
Speaker 1: ultimately trying to understand what's happening with these gas prices
Speaker 1: everybody talking about. But we got the latest thing that
Speaker 1: it's just like the stuff just don't sit in a vacuum.
Speaker 1: Like you gotta understand how all this stuff work and
Speaker 1: who actually responsible. You could blame the president, but like
Speaker 1: I mean, he only got a sprinkle sprinkles of blood
Speaker 1: on his hand. You know what I'm saying any president.
Speaker 1: It ain't never been one president's fault. But again I'm
Speaker 1: getting ahead of myself, but let's get back to this up.
Speaker 1: It's comparison with with with your mama and the ice
Speaker 1: cream truck. You know. So if you go back to
Speaker 1: your mama and you're like, yow dollars ain't cutting it.
Speaker 1: I'm not being able to like cover what I used
Speaker 1: to be able to cover tw dollars, your mama is like,
Speaker 1: you better make that work. See, look, I come from
Speaker 1: the generation you better make that work. Generation. Your mama,
Speaker 1: send you to the stove with some money, and you're like, mine,
Speaker 1: it ain't enough to get what I need and get
Speaker 1: what you're asking for. She like, you better make it
Speaker 1: enough and bring me back my change. Listen, your mama,
Speaker 1: get listen if you're lucky enough to get some to
Speaker 1: get an allowance, and she like, look, you gotta make
Speaker 1: that work. And you like, my lunch costs more than
Speaker 1: this now, like the snacks caused the bus, it costs
Speaker 1: more than this. She like, you better make it work.
Speaker 1: That's living wages. That's why we always mad about minimum
Speaker 1: wage and cost the living. It's like, yo, you're not
Speaker 1: paying me more even though it costs more to be here.
Speaker 1: That's how that work. Your mom out here talking to
Speaker 1: you like like she think you just out here bawling out.
Speaker 1: You know what I'm saying. You're going to the lunch
Speaker 1: You're going to the lunch line. You're buying all kind
Speaker 1: of treats, all the snacks, all the cookies, and on
Speaker 1: Tuesday you out of money. You're like, no, I'm trying
Speaker 1: to tell you the stuff costs more. I don't know
Speaker 1: what happened, It just costs more. So your allowance is
Speaker 1: your living wages, and the cost of living is how
Speaker 1: much lunch costs and the bus and everything. You got
Speaker 1: people out here saying, well, you know, if you guys
Speaker 1: weren't just buying so much avocado toast, you could probably
Speaker 1: make It's like, nah, fam, you really think it's that simple.
Speaker 1: You really think it's that simple. No, it's it's minimum
Speaker 1: or or average wages for a job versus the cost
Speaker 1: of living is called inflation. The dollar don't get me you. Now,
Speaker 1: one would say, well, you know, I mean everything costs more,
Speaker 1: but people are making more. You know, if it's like,
Speaker 1: well gas was in the seventies, but you also made
Speaker 1: enough to do that. Now that that would mean that
Speaker 1: the cost of living and wages were growing at the
Speaker 1: same rate. They just not. So that dollar can't get
Speaker 1: you what it used to be able to get you.
Speaker 1: It's not so much that like things just cost more.
Speaker 1: It's the dollar doesn't get you what it used to
Speaker 1: get you. That's inflation. Now, we got these p is
Speaker 1: on the board, and at the end, I'm gonna give
Speaker 1: you some actual numbers and percentages. So now that you
Speaker 1: get the metaphor, let me cut it clean for you.
Speaker 1: Is definition. So what is inflation. I'm quoting from the
Speaker 1: State Policy Network dot org. It's a just some information stuff.
Speaker 1: I mean, this stuff is easily googleble, but like sometimes
Speaker 1: the terms don't even help you. So, like I said,
Speaker 1: I failed economics. I knew all these terms, but I
Speaker 1: ain't really get it. So here we go. Inflation is
Speaker 1: an economic term to describe the situation where the prices
Speaker 1: rise in the economy. It means goods and services are
Speaker 1: becoming more expensive and your monthly paycheck won't buy as
Speaker 1: much as it previously did for in other words, when
Speaker 1: everything gets more expensive. Now as the question for why,
Speaker 1: I mean this is why an economist is an actual job,
Speaker 1: because it's complicated and everybody don't agree as to why
Speaker 1: this happened. But for the sake of our discussion, I'm
Speaker 1: gonna try to make it as rudimentary as possible. And again,
Speaker 1: you know, it's probably economists that listen to this that
Speaker 1: are gonna be like, now, prop it ain't that simple.
Speaker 1: Or now I don't agree with this, dude, because I
Speaker 1: think I may have said this before and was really
Speaker 1: made clear when my wife got her PhD that even
Speaker 1: knowledge has to be agreed on. She had a saying
Speaker 1: in her pH d program that was like he or
Speaker 1: she who has funding is right. So if you could
Speaker 1: get your research funded and it make it into the books,
Speaker 1: then you write, he who got funding is right. So
Speaker 1: many people may disagree on this, but there's this o
Speaker 1: g economists. His name was Milton Friedman, and again everybody
Speaker 1: don't like him. I ain't gonna hold you here. Ronald
Speaker 1: Reagan market thatcher type dude. You know what I'm saying.
Speaker 1: So he'd be pretty conservative. So consider that as I'm
Speaker 1: saying what I'm saying. But he's one way to do it.
Speaker 1: And his argument is saying, it's pretty simple. It's inflation
Speaker 1: happens because the money supplied rows more rapidly than the
Speaker 1: goods and services produced. Because remember, we make money like
Speaker 1: physically literally it's made. We're not on a gold standard
Speaker 1: no more. They they pieces of They're cotton, pictures of
Speaker 1: dead men, that's what they are. He says, Inflation itself
Speaker 1: is a monetary phenomenon because if there's a finite amount
Speaker 1: of stuff, that's why a lot of people get excited
Speaker 1: about crypto because it's like there's only so many and
Speaker 1: you could predict that because there's only so many in circulation.
Speaker 1: You can't just like pump money into the system, because
Speaker 1: it's got to be a thing. When we was on
Speaker 1: a gold standard, a dollar meant this many ounces of gold,
Speaker 1: and there was only so many ounces of gold, so
Speaker 1: you could predict what was going on in the world
Speaker 1: and how much there was and how much it was
Speaker 1: gonna be worth, because there was only so much to
Speaker 1: go around, right, That was the idea. But if if
Speaker 1: it's just what we agree on, then as he says,
Speaker 1: it's always in everywhere a result of too much money
Speaker 1: for a more rapid increase in the quantity of money
Speaker 1: than an output. Moreover, in the modern era, the important
Speaker 1: next step is to recognize that today government's control the
Speaker 1: quantity of money, so that as a result, inflation in
Speaker 1: the United States is made in Washington and nowhere else.
Speaker 1: So he arguing inflation is a self inflicted wound. It's
Speaker 1: the government just you keep printing money, so you need
Speaker 1: to stay out of the market. Now you get into
Speaker 1: people talking about like free market economies, you know what
Speaker 1: I'm saying, or kanzie in or whatever, like these other
Speaker 1: theories that we ain't got time to get into. But
Speaker 1: what he's saying is like inflation happens when you just
Speaker 1: printing money all willy nilly and we ain't got the
Speaker 1: product to push it, like you creating this problem. I
Speaker 1: used to wonder about, like national debt, when you're just like, yeah,
Speaker 1: this is we're four trillion dollars in debt, and it's
Speaker 1: like that's not a real number, Like you're never gonna
Speaker 1: pay that back. There's there isn't four trillion dollars. There don't,
Speaker 1: there isn't. But then I used to think, okay, well,
Speaker 1: just well, if I don't mean nothing, just print a
Speaker 1: bill that says four trillion and then give it to him.
Speaker 1: But that's not it. Just the whole thing collapses if
Speaker 1: you do that, because again, if you can just write
Speaker 1: it on a piece of paper, then it's not worth nothing.
Speaker 1: So depending on who you ask, what's the role of
Speaker 1: the government. The role of government is to either a
Speaker 1: make sure that this delicate balance of quantity, services and
Speaker 1: dollars stay even or their job is shut their mouths,
Speaker 1: stay out of it, make sure nobody break no laws.
Speaker 1: If there's too much. Again, like I said earlier, if
Speaker 1: there's too much in circulation, then that means it don't
Speaker 1: mean nothing. If there's not enough in circulation, then everybody
Speaker 1: can get to it. So you have to keep this
Speaker 1: like this balance. You follow me. Now, when you hear
Speaker 1: things about inflation and how you control that inflation, then
Speaker 1: you hear stuff about interest rates. You ever heard somebody
Speaker 1: top about interest rates on the news? Interest rates are low,
Speaker 1: So you know you're better go buy a house. You
Speaker 1: know what I'm saying. You know what the interest is?
Speaker 1: I mean, I don't know if you know interest is,
Speaker 1: but basically it's this, I'm gonna charge you to borrow
Speaker 1: money from me. Let's go back to the ice cream truck.
Speaker 1: You go out there to the ice cream truck, you
Speaker 1: and your homies out there. You got your little five dollars,
Speaker 1: and the ice cream dude say, yo, uh, this is
Speaker 1: gonna cost you ten dollars. So you look to your brother,
Speaker 1: your sister. You be like, yo, let me let me
Speaker 1: get five bucks. And it was like, okay, I'll give
Speaker 1: you five dollars, but it's gonna cost you two dollars.
Speaker 1: What does that mean? That means you need to pay
Speaker 1: me two dollars for letting you borrow my five dollars.
Speaker 1: So I want my five dollars back plus two dollars, That,
Speaker 1: my friend, is interest. The two dollars on top of
Speaker 1: that is interest. So rather than just saying a flat number,
Speaker 1: what you have is percentages or rates. However much you borrowed,
Speaker 1: I want you to pay me back what you borrowed,
Speaker 1: plus a percentage of that. So if I brought up
Speaker 1: a hundred dollars at two interests, then what do I
Speaker 1: owe you two of a hundred two dollars? That's nothing.
Speaker 1: Two percent interests, that's great. What about five percent interests?
Speaker 1: Borrow hundred dollars, I owe you five dollars on top
Speaker 1: of the hundred after I pay you back. Okay, that's cool.
Speaker 1: That's five dollars. That's a hundred. So I owe you
Speaker 1: a hundred and five. No, well you told me a
Speaker 1: hundred and five if you paid me the whole hundred dollars.
Speaker 1: But y'all on payment plans now they tell you it's cool, yo,
Speaker 1: low interest rate. You just you know, you paid you know,
Speaker 1: monthly bills. Just break it down, pay what you can,
Speaker 1: and you keep and you keep it pushing. But every
Speaker 1: year you don't pay the principal off, that's called compound interests.
Speaker 1: Principal meeting the whole hundred dollars. I get to attack
Speaker 1: another percentage on what you originally borrowed. Now what you
Speaker 1: got left, what you originally borrowed. You mess around paying
Speaker 1: twenty dollars a month, and at the end of five
Speaker 1: months you still owe fifty dollars and you're like, wait,
Speaker 1: whoa wait, I just how do I still have that? Well,
Speaker 1: it was compound interest. You know what I'm saying. You ain't.
Speaker 1: You ain't you ain't paid off in time. So I
Speaker 1: get to charge another year of interest rates on top
Speaker 1: of what you already paid, because I'm charging you for
Speaker 1: the whole amount, not what you got left. Y'all, y'all,
Speaker 1: y'all following me? How how this is what we talk
Speaker 1: crippling debt. It's because you never you can never, You're
Speaker 1: never gonna pay it back because you're paying more than
Speaker 1: if you borrowed. So at the end of this, I mean,
Speaker 1: if the numbers pay back, you didn't paid back five
Speaker 1: dollars a hundred dollars. Now, of course I'm pulling these
Speaker 1: numbers like, this is a horrible deal. If you were
Speaker 1: in it, you know what I'm saying. But that's this
Speaker 1: is this is an overview like I said, it's economists
Speaker 1: that are gonna be like prop you don't know what
Speaker 1: the hell you talking about. This is while we say, hey, listen,
Speaker 1: don't be paying the minimums because the credit card or
Speaker 1: debt or will be like, look, hey just pay me.
Speaker 1: Just just just just put something on it. You got
Speaker 1: five on it, just put a little bit on it.
Speaker 1: It's cool. Well, they're charging your interests every time, you
Speaker 1: know what I'm saying. That's why it's so good about
Speaker 1: getting out of debt, because you're gonna be in debt forever. Look,
Speaker 1: let me give you a hood scenario. Sometimes this happens
Speaker 1: with just like cloud, like you turned the wround corner,
Speaker 1: somebody be like, hey, hey, who know blood who you
Speaker 1: know over here? And you're like, oh manna I oh
Speaker 1: I know, uh I know a little tiny baby doo.
Speaker 1: Look like that's the homie calling right now. Then you
Speaker 1: call baby do look and do look yeah like now
Speaker 1: you're cool. Yeah that do cool? You oh do Look
Speaker 1: for a long time. You'll never be able to pay
Speaker 1: that back. If you like, hey, uh yo, man, you know,
Speaker 1: whenever you need a favor, I got you. And he's like, yo,
Speaker 1: can you get me into I'm a rapper, so it's like, Yo,
Speaker 1: can you get me into this concert? Oh? Yeah, I
Speaker 1: got you. We even that you're gonna call next week.
Speaker 1: Hey can you get me into this? I'm like nigked,
Speaker 1: Like okay, he's gonna call you again, Like, hey, homie,
Speaker 1: can you get me into this? You're gonna owe that
Speaker 1: nigga for the rest of your life, so be careful
Speaker 1: borrowing you. His name ain't So what's the solution. Don't
Speaker 1: spend money you ain't got right, I can't spend money
Speaker 1: I don't have. That's how you stay out of debt.
Speaker 1: But like, we know, not that simple, so what so yeah,
Speaker 1: the what a dollar can get me raises over time,
Speaker 1: so okay, make more money, right, it doesn't it? I
Speaker 1: mean it seems that simple. Well, let me introduce you
Speaker 1: to the CPI Inflation Calculator c p I. What that
Speaker 1: means is consumer price index, And what we're saying is
Speaker 1: like the stuff that you just normally need, the like
Speaker 1: the unavoidable stuff. You gotta buy food, gotta buy eggs,
Speaker 1: you ain't gotta go to like you know what I'm saying.
Speaker 1: You gotta Postmates, your you know your your it's the
Speaker 1: cart your stuff, but you still got I mean, of
Speaker 1: course you're gonna there's an up charge for that, but
Speaker 1: that's a luxury. You ain't gotta do that, you know
Speaker 1: what I'm saying. It was a luxury for some people.
Speaker 1: You gotta, you gotta pay your light bill, you gotta
Speaker 1: pay electric bill, you gotta, you gotta, you gotta pay
Speaker 1: your gas bill. You got you know, you gotta pay rent.
Speaker 1: And you also gotta put gas in your car, which
Speaker 1: is where this whole discussion is gonna end debt. Right.
Speaker 1: Uh So, consumer price index, right, that's what that is?
Speaker 1: What does the normal consumer pay for normal things? And
Speaker 1: a way to kind of understand this if you look
Speaker 1: at the US Bureau of Labor Statistics, here's some data tools.
Speaker 1: It's it's it's actually it's pretty crazy to like look
Speaker 1: at over time how inflation has changed us. So I
Speaker 1: punched in twenty dollars in March of can buy you
Speaker 1: the same thing as forty dollars and seventy three cents
Speaker 1: could get you in this month. You're following me, what
Speaker 1: twenty dollars could get you? Then forty dollars could get
Speaker 1: you out? So it's doubled, right, which would be fine
Speaker 1: if wage prices also doubled since then, then it would
Speaker 1: just be a wash. At has has wages risen? Well
Speaker 1: let's well how much have wages? So here's the way
Speaker 1: to get your brain around it. Think of it as
Speaker 1: like rent versus income, meaning average income versus average rent.
Speaker 1: What percentage of your income goes to rent? Will help
Speaker 1: you understand a way of saying like cost of living.
Speaker 1: So if the price of stuff is going up at
Speaker 1: the same rate as wages are as what I'm making,
Speaker 1: then this is a dumb discussion to have. But did
Speaker 1: it grow out the same rate? So the ratio is
Speaker 1: rent to income? Right, So here's some numbers. So if
Speaker 1: we say somebody makes dollar per week or like a
Speaker 1: forty nine thousand two annual salary like before taxes, that's
Speaker 1: the medium wage among like full time workers nationwide. Okay,
Speaker 1: this is this is uh average renter pace of their
Speaker 1: income are rent. Among female wage earners, the average rent
Speaker 1: is thirty point five of the individual rencome. Because again,
Speaker 1: wealth gaps, I'm telling you, man, this stuff show up everywhere. Right.
Speaker 1: In two thousand twelve, it was twenty two eight five
Speaker 1: percent was the average rent and the percentage ravage rent
Speaker 1: as percentage of their house of their income. That's a
Speaker 1: twenty four point five increase in the rate of rent
Speaker 1: to income in eight years, an annual growth of So
Speaker 1: there's a lot of numbers. I'm gonna make it easier
Speaker 1: for you in a second. So the value of the
Speaker 1: average wage increased at the rate of three point four
Speaker 1: four percent. So let me say it as clear as possible.
Speaker 1: Do all the math you want to do it, but
Speaker 1: you know math is weird. I get it. Listen, rent
Speaker 1: prices increased twelve point five percent faster than wages. So
Speaker 1: rents going up higher than your wages. That's how inflation works.
Speaker 1: So if you to go again, rent inflation, wage inflation,
Speaker 1: how much can your dollar give you? Right? So in
Speaker 1: two thousand seven, rent was going up, uh four point
Speaker 1: six percent, and then wage was going up four point
Speaker 1: five pc. In two thousand and eight, rent was going
Speaker 1: up three point six percent while wage was going up
Speaker 1: two percent. In two thousand nine, follow me, rent was
Speaker 1: going up two point eight percent. You know a wage
Speaker 1: was going up, it wasn't it was going down. Getive
Speaker 1: one point five one are our wages went down? What
Speaker 1: happened to two thousand nine housing crash recession, like the
Speaker 1: rent going up while we make it less. It ain't
Speaker 1: no avocado toast. What happened in rent went up three
Speaker 1: wage two point eight. So what I'm saying is the
Speaker 1: rent going up faster than our wages. You talk about
Speaker 1: we spending money on avocado. Know what we're saying is
Speaker 1: the dollar ain't worth the same. It costs more to live.
Speaker 1: I guess you could go back to school and get
Speaker 1: a get a better job. Okay, cool, Well, then yeah,
Speaker 1: borrow another eighty thousand dollars that you'll pay for the
Speaker 1: rest of your life. Anyway, I'm not here to complain.
Speaker 1: I'm just trying to help you understand how this works. Now,
Speaker 1: let me get back to like how inflation and stuff
Speaker 1: like kind of kind of does things. So if you
Speaker 1: lower the interest rates, then what that means is people
Speaker 1: gonna spend more money on houses. But that mean we've
Speaker 1: gonna buy up all the houses. It ain't gonna be
Speaker 1: enough of them, which means that raises the price. Does
Speaker 1: that make sense? So the cost of houses are gonna change,
Speaker 1: and then they're gonna say many people buying up these
Speaker 1: houses even we were to raise these interest rates, right,
Speaker 1: because not the money. So they're trying to keep the
Speaker 1: money balanced. Air quotes in in in in the system
Speaker 1: to make sure that the dollar keep meaning something. What
Speaker 1: does this have to do with why Californians are paying
Speaker 1: six dollars for gas? You heard me, six dollars for gas.
Speaker 1: Let's get into it, y'all. Remember in the Dark Night
Speaker 1: when Heath Ledger was joker, and he said when he
Speaker 1: met with all the goons, hey, if you're good at something,
Speaker 1: never do it for free. He's setting up a principal
Speaker 1: here him being good at something is for the sake
Speaker 1: of our times. Is a commodity, And I'm not gonna
Speaker 1: just give you this commodity because I'm the only one
Speaker 1: you could get it from. So I get to set
Speaker 1: the price, havey have? I want to set it because
Speaker 1: you need it. And if I could control how many
Speaker 1: of it and how much of it is on the streets,
Speaker 1: then then then I could charge whatever. I won't enter
Speaker 1: the idea of the oil industry, the energy industry. Why
Speaker 1: are these dudes all clicked up together if they all
Speaker 1: trying to sell the same product. It's exactly what I'm
Speaker 1: telling you, because we get to tell you what the hell,
Speaker 1: we're gonna you're gonna pay us for it because you
Speaker 1: can't get it nowhere else. Why do they have a
Speaker 1: vested interest? And make sure you're not buying wind because
Speaker 1: wind is free. You say you got to build the
Speaker 1: infrastructure for it, of course, but the wind is free.
Speaker 1: I can set these prices because it's simple law of
Speaker 1: supply and demand. If you could control, just like the dollar,
Speaker 1: the amount, just like your Pokemon card, if I can
Speaker 1: control the amount of them that are in the streets,
Speaker 1: then I could control how much you're gonna pay for It.
Speaker 1: Would make sense for everybody that owns any of this
Speaker 1: energy to make sure we all on the same page,
Speaker 1: because if you start charging less, you mess up it
Speaker 1: for everybody. We're gonna have to make sure we got
Speaker 1: some folks on the inside that is making the laws
Speaker 1: to make sure that this money trained working. I got
Speaker 1: enough money to make sure you lawmakers ain't gonna mess
Speaker 1: up my bag. But like I said, with the Pokemon card,
Speaker 1: that can only go so far. There's a term called elasticity,
Speaker 1: which means at some point you're gonna hit a place
Speaker 1: where this is so high that we're not gonna We're
Speaker 1: not gonna buy this no more, or we're gonna figure
Speaker 1: out other ways to do it. Now we're getting into
Speaker 1: the culture war debate about like, well, you know, we
Speaker 1: got oil in America. It's sitting right up under right
Speaker 1: up under the Alaskan ice. It's sitting right up right
Speaker 1: off our coasts, it's right off the golf coats. But
Speaker 1: the problem is to get to that you kind of
Speaker 1: gotta kill earth to get it. And we're like, yo,
Speaker 1: is that juice worth the squeeze? Is it really worth
Speaker 1: the squeeze to just like destroy the ground at the
Speaker 1: ground we all live on to get some stuff that
Speaker 1: we actually need. Well, the question is how much a
Speaker 1: dollar cost? And then the next question is is that
Speaker 1: gonna make it any cheaper? Is it? If these people
Speaker 1: are already know we're willing to pay this much. I mean,
Speaker 1: if you just come down one dollar, then it's gonna
Speaker 1: seem cheaper. May I mean you you trust in them
Speaker 1: to be some economic purists. I don't. I don't think
Speaker 1: it's gonna change the price very much because they're just
Speaker 1: gonna tap a all American you know, stick on it.
Speaker 1: Just it's oil. Listen, it's oil. Riggs and long Beach
Speaker 1: it's oil riggs and in Texas and Yo, here's an
Speaker 1: interesting thing. Why I hear recently a lot of Latinos
Speaker 1: are actually switching to these Republicans because look at a
Speaker 1: lot of migrant Latinos. They work in the oil field,
Speaker 1: they work out here, and we're the ones and we
Speaker 1: do you know, Democrats talking all this like clean energy stuff,
Speaker 1: so we canna lose their job. They canna lose their jobs,
Speaker 1: and they like, listen, everybody racist. That that's they stay that. Look, look,
Speaker 1: both of y'all races democratic and neither one of y'all
Speaker 1: like y'all just the Demo has just talk nicer. And
Speaker 1: when you talk about us, all you talk about is immigration.
Speaker 1: I'm like that's like issue number five, you know what
Speaker 1: I'm saying. So like, look they look low, kid, you
Speaker 1: know they kind of did they them the Latinos is
Speaker 1: like the Republicans just gaining some Latino some Latino ground,
Speaker 1: because it's like, can you talking y'all already know y'all racist,
Speaker 1: both of y'all races. You'll be saying the quiet thing
Speaker 1: out loud. So what you got for me? Well, we
Speaker 1: got these jobs, like yeah, said, let's go comp pop
Speaker 1: how much is it worth? It? Can gas be eight dollars?
Speaker 1: Which which with where where's your price? Y'all just saw
Speaker 1: our president get on the stage and he say, hey, listen, listen,
Speaker 1: effective immediately, we're gonna ban Russian oil import because we
Speaker 1: have war with Russian. Now, let me ask you this,
Speaker 1: how smart is it to buy something that you need
Speaker 1: from somebody that show enemy. Does that sounds smart to you? Well,
Speaker 1: we've been doing it four decades because we've been using
Speaker 1: Middle Eastern oil and and there's there's there's some weird
Speaker 1: kind of things going on here. This stuff is complicated,
Speaker 1: and when you get into the geopolitics of it, because
Speaker 1: it's like why I'm ba buy oil from Afghanistan if
Speaker 1: I'm at war with Afghanistan? That don't make no sense
Speaker 1: to me, right, But it's because, well, y'all can destroy
Speaker 1: y'all land, I'm not gonna destroy mine. You know what
Speaker 1: I'm saying, Like I'm not if you don't clean your kitchen,
Speaker 1: you understand what I'm saying. You don't already clean your kitchen.
Speaker 1: Are you gonna cook for dinner? You're gonna buy something
Speaker 1: because I'm not trying to wash all these dishes again. Right,
Speaker 1: So you're like, don't destroy your land. You feel me,
Speaker 1: We'll just buy it from you. But on people on
Speaker 1: the right, it's like that don't make no damn sense.
Speaker 1: We got it over here. We could get some of
Speaker 1: that good some of that good money, you know what
Speaker 1: I'm saying. So they're looking at everybody going Okay, how
Speaker 1: much is it worth? How much is it worth it? How? How? How?
Speaker 1: What's the price? What's your breaking point? How much the
Speaker 1: oil prices gotta be before you stop worrying about sequoia
Speaker 1: trees and breathable air and nashvial parks and an entire
Speaker 1: globe that's like livable. What's like? What's what's the price?
Speaker 1: How high this gas gotta get before you stop realizing that, Look,
Speaker 1: we're just gonna have to pay it. So does the
Speaker 1: president control the prices? Who know? The industry control the prices?
Speaker 1: The question is what does he control? But only specifically
Speaker 1: for America. So if the president say, hey, listen, we're
Speaker 1: not using that oil, we're shutting off this pipeline, we're
Speaker 1: doing this, then the industry gets to go, okay, cool,
Speaker 1: So you you're cutting off your other sources, all right, Dope,
Speaker 1: this will we charge it. Oh look, now get hell
Speaker 1: of murky because listen, you put a sanction on Russian oil.
Speaker 1: Let's just say you make this like an international NATO
Speaker 1: sanction on Russian oil. Somebody gonna make some money because
Speaker 1: you don't cut them off. So now look at look
Speaker 1: at peepe this, peepe this. We make money off this
Speaker 1: war because you still gotta buy oil. And if you're
Speaker 1: telling me you're not gonna buy oh man, now look,
Speaker 1: somebody fnna get bread off this war and get it.
Speaker 1: Get crazy, don't it. You're a You're in a horrible situation.
Speaker 1: You want to keep the prices down, Go ahead and
Speaker 1: buy from Russia. You're buying from Russia. You're supporting their war.
Speaker 1: I mean, it's crazy, ain't it. You need to tell
Speaker 1: me you ain't never had to play nice, to play
Speaker 1: the long game. Somebody you know, crazy, But like I
Speaker 1: don't know what to say, like I need them? Yeah?
Speaker 1: Like or or do you need them? What's the price?
Speaker 1: And it's not like the president buying that oil, your
Speaker 1: gas station buying that oil. You feel me and he's like, look,
Speaker 1: that's just how much it costs. You went to the
Speaker 1: ice cream truck and your drum stick that was a
Speaker 1: dollar yesterday. If the ice cream industry, truck truck industry
Speaker 1: was like, hey, we're not buying from anybody from Colorado,
Speaker 1: then the rest of the state's go, oh word, okay,
Speaker 1: well we get to raise our price though, because you
Speaker 1: actually need these drumsticks and you're gonna sell them, Like
Speaker 1: what what what y'all gonna do? And now you like
Speaker 1: got dog man? Okay, so now the ice cream two dollars.
Speaker 1: So you're like hey mom, and mom like, I ain't
Speaker 1: paying you. Listen, you got this. How much your money is.
Speaker 1: You gotta make your work, so do you? So I
Speaker 1: guess you gotta make sacrifices. You gotta do other things.
Speaker 1: You gotta get you a scooter. I don't know, you're
Speaker 1: gonna start mowing the lawn and make some extra money
Speaker 1: and wash some cars or you could do with Some
Speaker 1: other people have argued to continue this metaphor switch the
Speaker 1: frozen yogurt, Well what if we don't use oil into
Speaker 1: electric cars, into clean energy, And to this, we're like, well, yo,
Speaker 1: well if we just stopped doing that, then well, now
Speaker 1: you messed up another part of economy because there's millions
Speaker 1: and millions of people that got jobs. So now you're
Speaker 1: gonna put all these people out of business, which is
Speaker 1: also gonna mess up inflation because now there's more people
Speaker 1: in the job marketing. If there's more peop, if there's
Speaker 1: more people that need jobs than there are jobs that exist,
Speaker 1: then guess what our unemployment race rise. It's it's a
Speaker 1: crazy balance, right come. There's a lot of different Like
Speaker 1: it's super cool now like back, which is way better
Speaker 1: than when I was trying to learn all this stuff,
Speaker 1: where there's just like dope websites that can like give
Speaker 1: you pretty simple breakdowns of a lot of these things.
Speaker 1: That makes it a lot more easier than the way
Speaker 1: I went through learning all this stuff. So here we go.
Speaker 1: Just bottom line, I'm gonna break these things down for you. Okay,
Speaker 1: look again, Like we said, gas prices are basically supplying demand,
Speaker 1: and then gasoline prices cover the cost of like why
Speaker 1: it says six dollars a pump, what does that cup
Speaker 1: six dollars a gallon? That's covering firing, the crude oil,
Speaker 1: refining it, distributing it, right, and additional federal taxes because
Speaker 1: everybody got get the cut. Usually if it's reasonable as
Speaker 1: related to inflation, costs of living wages. Nobody really notices
Speaker 1: it because it's a necessary evil, like you still gotta
Speaker 1: get around. It only becomes noticeable when it gets too high.
Speaker 1: And what's crazy if your oil exactly is don't nobody
Speaker 1: get mad at you. Everybody get mad at the president.
Speaker 1: Which is a great set up if if you, if
Speaker 1: you them right now, let's dive into it. So remember
Speaker 1: that that gasoline don't come out the earth is gasoline
Speaker 1: oil don't come out there. It comes out as crude oil, right,
Speaker 1: and it's a raw commodity, and getting it out the
Speaker 1: ground is the biggest percentage of our cost. That's why
Speaker 1: oil men make so much. Well that and it's freakishly dangerous.
Speaker 1: So if you look at like according to again I'm quoting,
Speaker 1: I'm quoting Investopedia. According to the US Energy Information Administration,
Speaker 1: the price of crude oil accounting for fifty of the
Speaker 1: price of gasoline in the decade through on average, But
Speaker 1: that average conceals wide fluctuations in when crude prices down
Speaker 1: sharply during COVID, crew just accounted for just fort of
Speaker 1: gas prices. Because you remember when COVID started, nobody was
Speaker 1: going nowhere so we wasn't buying it. Now if you
Speaker 1: know how again, selling something work. If it's just if
Speaker 1: it's just sitting in the warehouse, it ain't doing nothing
Speaker 1: but getting rotted. So you're trying to offer it right there?
Speaker 1: What's up with these like end of the year sales.
Speaker 1: You're just trying to off your stuff, so that means
Speaker 1: you got to lower the price. And if you lowering
Speaker 1: the price, that means you're not getting a return on
Speaker 1: your investment. So you're hoping that you could just off
Speaker 1: as much as you can with hopes that that muggle
Speaker 1: rebound a little later and you make your mo money.
Speaker 1: You feel me. I don't know if you'll remember in
Speaker 1: the pandemic, there was a moment when crude oil prices
Speaker 1: the price of a barrel got to negative where it
Speaker 1: was negative a dollar. You know what I'm saying. I
Speaker 1: know it's a weird mathematical thing, but that's what I'm
Speaker 1: trying to say. The demand was so low, so it
Speaker 1: just like, dang, we can't even get this stuff away.
Speaker 1: Don't nobody wanted? Whoa that? Did that mean that? The
Speaker 1: President went up there and with his harsh negotiation and said,
Speaker 1: you're gonna give us oil. Now that's not now that
Speaker 1: our work now crude oil. I'm gonna give you another
Speaker 1: metaphor in a lot of ways, is like coffee. Now,
Speaker 1: I stay with me. Now, why wohen you go to
Speaker 1: specialty you know snobby tea coffee shop that that coffee
Speaker 1: cup is six dollars a cup, whereas you could just
Speaker 1: go to Circle K seven eleven, Piggy, Wiggy you know,
Speaker 1: wig wams, I don't know, and get you a one
Speaker 1: dollar cup of coffee. Well, one taste horrible and the
Speaker 1: other one tastes amazing. If you know what you're tasting. Why,
Speaker 1: it's because all coffee beans ain't created even the process
Speaker 1: of getting them to that shelf and created equal. That's
Speaker 1: why that hoity toity spot is called specialty coffee. It's
Speaker 1: the top of the crop that gets to go there
Speaker 1: that for it to be called specialty. Everybody else that
Speaker 1: little folders you know what I'm saying That that I mean,
Speaker 1: I'm I'm throwing shade it folders, you know what I'm saying.
Speaker 1: But that stuff, why it tastes awful is because it's
Speaker 1: a lower grade being. And then the process of getting
Speaker 1: that thing roasted and grinded and stuff like that. Like, yo,
Speaker 1: it's not it's not as good, but you can still
Speaker 1: sell it because plenty of people drink it. Look, this
Speaker 1: is easy when cocaine and crack cocaine costs more because
Speaker 1: it's pure. I mean it's easy, right, that little dirt
Speaker 1: weed that you'd bought from your uncle, Like why it
Speaker 1: was only two dollars. It's because it's nasty. It's got
Speaker 1: a reguno in it, you know what I'm saying. But
Speaker 1: that good, that good good that Kelly Kush is gonna
Speaker 1: cost you something because it's better, like right, I mean,
Speaker 1: it's this easy. Crude oil, there's a quality of crude oil.
Speaker 1: If you want good crude oil that's good to make gas,
Speaker 1: you gotta pay for the best stuff. Secondly, refining it,
Speaker 1: like I said, the process of making crude oil at
Speaker 1: a high grade into gas, it costs a lot. You
Speaker 1: gotta pay them people. And then next you gotta do distributing,
Speaker 1: marketing that once the crude oil is refined in the gasoline,
Speaker 1: it gotta get shipped in storage tanks and eventually make
Speaker 1: it to those gas stations. And then stations require staff
Speaker 1: making its distribution and marketing and that account for like
Speaker 1: fourteen percent of the US retail price in gas in
Speaker 1: the decades average. Right, they gotta make their money too.
Speaker 1: And then finally the tax man. Here's where it gets gangster.
Speaker 1: Stay in local taxes account for sixteen percented at retail
Speaker 1: gas price. Now this is where you can start getting
Speaker 1: your pitch force together, because I ain't set the price,
Speaker 1: but I set the percentage. Now, it's not just the president,
Speaker 1: their state taxes to everybody gotta make their money. If
Speaker 1: you can think of it like this, what the president
Speaker 1: gets to do is figure out which supplier he go on. You.
Speaker 1: The supplier get to tell you how much this stuff costs.
Speaker 1: And then after you bought and how and how, that
Speaker 1: supplier tells you how much each of these things costs.
Speaker 1: They calculating their cast to get it out of the ground,
Speaker 1: to process it. And then once we sell you that barrel.
Speaker 1: Now the company that bought the barrel, they gotta tell
Speaker 1: you how much it costs for them to get that
Speaker 1: Crewe get that gas in a truck to the station
Speaker 1: in the pumps, and then that company got to pay
Speaker 1: the state and the federal and they're saying, Okay, you
Speaker 1: gotta get your cut it cost me this much. I'm
Speaker 1: a seller at this you want this percentage for gallon
Speaker 1: of what I sell? So then they say, okay, who
Speaker 1: paying for all that? Nigger us? We but this when
Speaker 1: you say proudly it's the same amount of work to
Speaker 1: get the oil out of the Why then why is
Speaker 1: the price changing. It's the same amount of work to
Speaker 1: get the oil out the thing through the thing. It's like,
Speaker 1: what's the inflation? Baby? Add it's inflation. Look, I can't
Speaker 1: control them, you know what I'm saying, how much of dollar? Cause, yeah,
Speaker 1: it's inflation, baby. And what we say before inflation may
Speaker 1: it up? And if inflation shooting up faster than your
Speaker 1: your rent or your income, oh baby like that, man,
Speaker 1: that's y'all's problem. We just look, the inflation went up,
Speaker 1: so now I gotta pay my workers more. That's what
Speaker 1: y'all said, cost the living, right, Oh baby, you got
Speaker 1: all these environmental laws, they just cost me more to
Speaker 1: make sure I'm taking care of earth. That's what y'all said.
Speaker 1: Maybe you ain't have all those laws, you know what
Speaker 1: I'm saying, Maybe we could get this gas a little cheaper.
Speaker 1: Pimping ain't easy. And then that's where your price come.
Speaker 1: So you see how crazy that is. They mess around,
Speaker 1: tell you it's your fault. It's your faults these prices.
Speaker 1: That is, don't blame us, blame your president, blame your laws.
Speaker 1: The only problem is this is an international commodity. So
Speaker 1: it ain't just inflation, it ain't just the president, it
Speaker 1: ain't just the oil industry. It's cap ullism. It's the
Speaker 1: whole systems. It's the whole thing. So when you're feeling
Speaker 1: the pain at the pump, you gotta understand economy. It's
Speaker 1: all of it. So what are some of our solutions? Well,
Speaker 1: like I said, you can go get a better job,
Speaker 1: or we can start lobbying for higher wages for workers.
Speaker 1: We can start talking about clean energy not needing these things.
Speaker 1: We can start talking about these tax rates and try
Speaker 1: to understand like hey, homey, like why are you charging
Speaker 1: this much? And then there's us as consumers. You remember
Speaker 1: beanie babies, I know, right, because we stopped caring. They
Speaker 1: used to cost a lot, they used to be collectors
Speaker 1: on it. Maybe there's a few niche places that you
Speaker 1: can get them for high prices, but we generally don't
Speaker 1: care no more. You know, how you make a price
Speaker 1: go down, stop needing it. What I tell you about, uh,
Speaker 1: the price of crude oil during COVID season, during them lockdowns,
Speaker 1: when nobody was driving or they was like, oh man,
Speaker 1: President Trump got the gas right kesa chump, ain't do nothing.
Speaker 1: Nobody was buying it because nobody needed it. They needed
Speaker 1: to off they wait, that's I mean, it's pretty simple.
Speaker 1: You go to the ice cream truck, all of a sudden,
Speaker 1: something go down with them drumsticks. Don't nobody like them,
Speaker 1: no mo, So you're charging two dollars for them. Drumsticks
Speaker 1: gonna be dumb because all they're gonna do is sit
Speaker 1: on the bottom of your freezer because nobody buying them.
Speaker 1: Guess what I bet you them things go down the
Speaker 1: fifty cents. You feel me where? Okay? Am I being
Speaker 1: a hypocrite? Absolutely? Because guess what, I still got to
Speaker 1: pick up my child today. I still got to feel
Speaker 1: my gas tank. I'm just saying, if I'm gonna shake
Speaker 1: my fist as something, it ain't the damn President. He ain't.
Speaker 1: But one piece of this. If if anybody I'm gonna
Speaker 1: be mad at, it's the industry itself. But the industry
Speaker 1: said something very simple, the same thing the joker said.
Speaker 1: If you're good at something, don't do it for free.
Speaker 1: You mad at me, but you're still buying it. You
Speaker 1: still swipe your card. Question we gotta ask ourselves is
Speaker 1: when is it too much? Neighborhood pimps looking at the
Speaker 1: judge like, yo, you could put me in jail, you
Speaker 1: could put my house in jail. But I know your face.
Speaker 1: You bought one of mine yesterday. I'm only in business
Speaker 1: because you're buying. If you stop buying, I stopped Selling's pimping,
Speaker 1: pimping up with these electric cars, you know, I said,
Speaker 1: And y'are acting like airplanes don't run on fuel either.
Speaker 1: That's gas too they I mean they're buying gas. We're
Speaker 1: gonna stop flying as a nation. Look, I don't know
Speaker 1: it's pimping. I don't I mean, I don't know. I'm
Speaker 1: just saying, if you're gonna shake your fists, shake your
Speaker 1: fists at gestures wildly the whole thing, because at the
Speaker 1: end of the day, this is the price of participation.
Speaker 1: Come on, player hood politics. M M yeah. This here
Speaker 1: thing was recorded by me propaganda in East Low Spoil Heights,
Speaker 1: Los Angeles, California. This mug was mixed, edited, mastered, and
Speaker 1: scored by Matt Osowski. I can totally say his name, guys,
Speaker 1: it was it was just stick. He's won by Matt
Speaker 1: now again because he got two legal situations with the
Speaker 1: name Headlights. Y'all know, common used to be called common sense.
Speaker 1: You know, Tip Ti tips sometimes it happened. Executive produced
Speaker 1: by the one and only Sophie Lectman for a Cool
Speaker 1: Zone Media and the theme music by the one and
Speaker 1: only Gold Tips Gold Tips d J Shawn p So.
Speaker 1: Y'all just remember listen every time you check in. If
Speaker 1: you understand city living, you understand politics. We'll see how
Speaker 1: next week start to start