WEBVTT - The Case for "Good" Capitalism 0:00:00.200 --> 0:00:03.440 Welcome The Money and Wealth with John Hobryant, a production 0:00:03.680 --> 0:00:14.520 of the Black Effect Podcast Network and iHeartRadio. Hey, Hey, 0:00:14.560 --> 0:00:17.640 everybody is John Hope Bryant And this is the Money 0:00:17.640 --> 0:00:23.240 in Wealth podcast series on iHeartRadio and Black Effect Network, 0:00:23.920 --> 0:00:28.360 and today is a special episode. It is the case 0:00:29.560 --> 0:00:34.120 for good capitalism and to really unpack what a lot 0:00:34.120 --> 0:00:40.040 of people are saying about capitalism and socialism and communism, 0:00:40.920 --> 0:00:46.960 wealth opportunity and why Marek keeps getting this conversation absolutely wrong. 0:00:48.400 --> 0:00:53.479 Today is one of those episodes where there's no guess. 0:00:53.920 --> 0:00:58.440 It's just me, So you're stuck with me for the 0:00:58.480 --> 0:01:01.560 next forty five minutes or so as I began to 0:01:01.680 --> 0:01:05.319 unpack something that I write about in my best selling book. Now, 0:01:05.400 --> 0:01:08.520 thanks to all of you who've made this book number 0:01:08.560 --> 0:01:12.640 one in three different categories Capitalism for All, which is 0:01:12.640 --> 0:01:16.960 inclusive economics in the future, Proofing of America Forwards. Michael 0:01:16.959 --> 0:01:19.800 Milkin ed Bashan and Andrew Young and bashor Andrew Young 0:01:20.080 --> 0:01:23.440 together to get those three people on the same page 0:01:23.520 --> 0:01:27.280 just tough. So give it a read because it just 0:01:27.400 --> 0:01:31.160 might be the equilibrium that we all seek for this 0:01:31.319 --> 0:01:35.679 very important conversation. Anyway, I think I've qualified at this 0:01:35.800 --> 0:01:40.480 moment in time to speak on this complicated conversation in 0:01:40.520 --> 0:01:45.120 a way that I think will resonate with you that 0:01:45.200 --> 0:01:49.920 you will see and feel as fair and equitable and respectful, 0:01:50.480 --> 0:01:53.040 but direct, which is my style. 0:01:53.760 --> 0:01:57.000 So let's get into this. It's just me today. 0:01:57.640 --> 0:01:59.800 I think we're living through one of the most important 0:02:00.920 --> 0:02:03.840 economic conversations of our lifetime. Actually on the two hundred 0:02:03.840 --> 0:02:10.000 and fiftieth anniversary of America itself. I think it's really 0:02:10.080 --> 0:02:13.080 a referendum on who we want to be when we 0:02:13.120 --> 0:02:16.720 grow up as a country, whether we want to adhere 0:02:16.720 --> 0:02:19.919 to the Bill of Rights and the Constitution and all 0:02:19.919 --> 0:02:26.320 the things that makes this country aspirationally great, and whether 0:02:26.320 --> 0:02:29.160 we're going to be light on the heel for the 0:02:29.160 --> 0:02:33.320 rest of the world going forward as we have been, 0:02:33.960 --> 0:02:39.440 or whether we're going to fall backwards because we began 0:02:39.560 --> 0:02:45.800 to think and act small. And whether you recognize it 0:02:45.880 --> 0:02:48.480 or not, you cannot be You've never had a leader 0:02:48.520 --> 0:02:53.440 of the free world the superpower that wasn't the economic 0:02:53.520 --> 0:02:56.840 leader at the same time. That just never happened, or 0:02:56.919 --> 0:02:59.840 any phrase another way. It's always been that the superpower 0:03:00.720 --> 0:03:03.520 was also the economic power. And I write in this 0:03:03.600 --> 0:03:09.480 book Capitalism for all, how I prescribe how America can 0:03:09.520 --> 0:03:14.400 continue to be the superpower and two ordred pages of 0:03:14.520 --> 0:03:17.640 just math. To quote my friend Melody Hobson, I like 0:03:17.720 --> 0:03:21.120 math because it doesn't have an opinion. So read the book. 0:03:22.280 --> 0:03:25.040 Write a review online after you read the book. I'm 0:03:25.040 --> 0:03:26.600 not telling you what to write. Write what you feel. 0:03:28.000 --> 0:03:31.200 I think you'll find that the sixty or so reviews 0:03:31.200 --> 0:03:33.239 that are already up in the short time the book 0:03:33.280 --> 0:03:36.760 has been out are all basically just write about five 0:03:36.840 --> 0:03:40.040 star and these are people who were surprised that they 0:03:40.160 --> 0:03:42.360 liked the book. Anyway, let's get into this and let 0:03:42.400 --> 0:03:46.120 me unpack this directly with you on this podcast, and 0:03:46.160 --> 0:03:48.680 you'll tell me in the social media comments and questions 0:03:49.240 --> 0:03:51.080 whether you want me to continue this as a series 0:03:51.200 --> 0:03:51.440 or not. 0:03:52.640 --> 0:03:53.920 I also plan on doing some. 0:03:55.480 --> 0:04:00.520 Live discussions on Instagram, Facebook and LinkedIn as well, so 0:04:00.560 --> 0:04:01.800 I can talk to you in real time. 0:04:02.040 --> 0:04:03.080 Okay, but I can't talk. 0:04:03.160 --> 0:04:05.200 I can't unpack that like I can unpack it here 0:04:05.680 --> 0:04:08.880 on this podcast in a structured way. So everywhere I 0:04:08.960 --> 0:04:12.160 turn these days, people are talking about what they think 0:04:12.240 --> 0:04:17.560 is capitalism and a lot of frustrations tied to it, 0:04:17.600 --> 0:04:20.599 which I actually I understand and with it. They're talking 0:04:20.600 --> 0:04:26.240 about socialism and communism and billionaires. Okay, but before I 0:04:26.240 --> 0:04:28.880 get into all that, let me lay some ground rules 0:04:28.960 --> 0:04:32.080 right up front. In the first five minutes of this podcast, 0:04:33.839 --> 0:04:35.960 a lot of my friends and people in communities I 0:04:36.000 --> 0:04:42.080 care about say I hate rich people. My response, no, 0:04:42.240 --> 0:04:46.560 you don't. You hate rich people until you become rich. 0:04:47.440 --> 0:04:51.200 What you hate is a game system. What you hate 0:04:51.760 --> 0:04:53.840 is a system that no matter how hard you work, 0:04:54.080 --> 0:04:58.279 no matter how hard you hustle, you can't seem to 0:04:58.320 --> 0:05:04.200 get ahead. That you see some half wit on television 0:05:05.600 --> 0:05:08.359 that you believe strongly is half as intelligent as you 0:05:08.440 --> 0:05:11.560 and works half as hard as you do, and they're 0:05:11.600 --> 0:05:15.360 a billionaire or a multimillionaire, and it just looks like 0:05:15.400 --> 0:05:20.480 a rigged game. And so you throw your hands up. 0:05:21.360 --> 0:05:26.200 You say, this whole thing is corrupt. The system is rigged, 0:05:26.360 --> 0:05:30.040 the system is gamed. It's a game system, and as 0:05:30.080 --> 0:05:32.719 a result, you hate it. You don't hate rich people. 0:05:32.960 --> 0:05:36.279 You hate rich people until you become rich. So let 0:05:36.279 --> 0:05:39.000 me help you ungain the system. Let me help you 0:05:39.640 --> 0:05:43.680 unrig the system by teaching you how this system works. 0:05:44.160 --> 0:05:47.400 Because we don't need less rich people, We need more 0:05:47.440 --> 0:05:50.159 of them, and we need them to include you because 0:05:50.200 --> 0:05:53.880 you will be responsible, You will be caring, You will 0:05:53.880 --> 0:05:57.240 do well and do good, You will prosper and then 0:05:57.320 --> 0:06:00.960 make sure the latter is left down for those that 0:06:01.080 --> 0:06:04.719 come but beyond behind you to lift them up too. 0:06:05.520 --> 0:06:08.320 That is the legacy of this country. Up from Nothing. 0:06:08.360 --> 0:06:11.000 That was my fifth book. I believe up from Nothing, 0:06:11.880 --> 0:06:14.880 and so I believe financial literacy is the civil rights 0:06:14.880 --> 0:06:17.239 issue with this generation. When you know better, you do better. 0:06:17.520 --> 0:06:20.080 As an old Southern saying, no matter how much I 0:06:20.120 --> 0:06:22.440 love you, my son or my daughter, if I don't 0:06:22.440 --> 0:06:25.279 have wisdom, all I can give you is my own ignorance, 0:06:25.960 --> 0:06:28.360 And so out of love, we pass down bad habits 0:06:28.400 --> 0:06:31.359 from generation to generation, out of love because of what 0:06:31.440 --> 0:06:33.760 we don't know. That we don't know that's killing us 0:06:34.120 --> 0:06:37.479 what we think we know. So let's knock it off 0:06:38.400 --> 0:06:42.960 with the bad advice. The reality is that even if 0:06:43.000 --> 0:06:46.560 you want a distribute money like a socialist, you're the 0:06:46.600 --> 0:06:51.479 first collected like a capitalist. Now think about that. You're 0:06:51.760 --> 0:06:56.440 listening to this podcast on a device that the government 0:06:56.440 --> 0:06:58.800 did not buy for you. I can say that with 0:06:58.880 --> 0:07:02.760 confidence unless you're listening to it is from some communist 0:07:02.800 --> 0:07:06.719 country and we are big all around the world, six continents, 0:07:06.720 --> 0:07:13.120 So maybe you are, but entirely it's entirely likely, and 0:07:13.160 --> 0:07:17.520 the overwhelming likelihood is you're listening to this from some 0:07:17.640 --> 0:07:21.520 place where you have some level of relative freedom, and 0:07:21.560 --> 0:07:26.080 you're engaging in free enterprise, and you are exchanging your 0:07:26.200 --> 0:07:29.360 human capital, your talents as a worker at the very least, 0:07:29.440 --> 0:07:32.520 or as a gig worker, or as a hustler, or 0:07:32.560 --> 0:07:36.440 as an uber driver or whatever, a lift driver, or 0:07:36.480 --> 0:07:42.200 as a structured employee hourly or a salaried employee. You're 0:07:42.320 --> 0:07:47.760 trading that talent, that gift for a paycheck for compensation. 0:07:49.000 --> 0:07:54.560 You are trading your human capital for money, just real talk. 0:07:55.760 --> 0:07:58.600 And you're using that money to pay your bills, to 0:07:58.600 --> 0:08:00.560 pay your car note, to pay your rent, to pay 0:08:00.600 --> 0:08:02.840 your mortgage, to pay your light bill, to pay your 0:08:02.880 --> 0:08:05.760 gas which is increasingly going up, to pay for your 0:08:05.800 --> 0:08:08.880 school fees. I mean, those kids are not being taken 0:08:08.920 --> 0:08:11.720 care of at school. I'm gonna get to this because 0:08:12.200 --> 0:08:15.120 this is actually a little bit of a socialist vibe. 0:08:15.760 --> 0:08:16.480 I'll explain that. 0:08:16.560 --> 0:08:20.160 But if you're in Africa, you're paying school fees directly 0:08:20.240 --> 0:08:23.000 to the provider in many cases, so that's like a 0:08:23.040 --> 0:08:26.560 literal transact translations transaction. That's not socialism. We have a 0:08:26.600 --> 0:08:29.560 little bit of socialism in America, actually, but every country 0:08:29.560 --> 0:08:32.679 has a little bit of socialism, sharn pack. But if 0:08:32.679 --> 0:08:34.880 you're paying somebody cut your hair, they're not cutting your 0:08:34.880 --> 0:08:37.400 hair for free. You pay somebody to take care of 0:08:37.480 --> 0:08:39.400 your your kids in daycare. They're not taking care of 0:08:39.440 --> 0:08:42.400 your your kids watching them for free. They're too bad, 0:08:44.280 --> 0:08:46.240 too much of a pain in the kazanga beans to 0:08:46.320 --> 0:08:48.880 watch them for free. That's just not there unless as 0:08:48.880 --> 0:08:50.880 your grandmother or your cousin or something that's it's not 0:08:50.920 --> 0:08:55.320 their role in life. So you're transferring the opportunity for 0:08:55.400 --> 0:08:57.200 a fee, the opportunity to take care of your kids 0:08:57.200 --> 0:08:57.680 for a fee. 0:08:57.800 --> 0:08:58.920 They're not doing it for free. 0:08:59.600 --> 0:09:01.480 So just talk like from the time you get up 0:09:01.480 --> 0:09:02.760 in the morning to the time you go to bed 0:09:02.800 --> 0:09:06.480 at night, your life is a series of financial transactions. 0:09:06.640 --> 0:09:10.160 You can't even watch or listen to this podcast without 0:09:10.640 --> 0:09:17.400 subscription fees, acquisition costs, the phone, the smartphone, the iPad, 0:09:17.520 --> 0:09:19.760 the car you're listening to, the radio, whatever it is 0:09:19.800 --> 0:09:26.080 you're consuming this with. So let's just understand that financial 0:09:26.080 --> 0:09:27.680 literacy is a civil rights issue. 0:09:27.679 --> 0:09:28.200 Of this generation. 0:09:28.320 --> 0:09:31.760 Let's understand that even the Bible talks about money more 0:09:31.800 --> 0:09:36.479 than anything else, more than two thousand references. Let's understand 0:09:37.360 --> 0:09:43.160 that the disciples of Jesus were overwhelmingly business people. Yeah 0:09:43.200 --> 0:09:45.160 you heard it right from me here. 0:09:46.120 --> 0:09:46.680 Check it out. 0:09:47.320 --> 0:09:52.120 They weren't profits even though they were largely business people. 0:09:52.760 --> 0:09:56.160 They had phishing companies, they had employees, they had infrastructure. 0:09:56.200 --> 0:09:57.280 It wasn't casual. 0:09:57.440 --> 0:09:59.560 He wanted people around him who knew what they were doing, 0:10:00.000 --> 0:10:05.600 who can organize themselves. So let's get into this and 0:10:05.640 --> 0:10:09.880 stop arguing over stupid stuff. We shouldn't destroy capitalism. We 0:10:09.880 --> 0:10:12.920 should promote good capitalism, good capitalism, and get this out 0:10:12.920 --> 0:10:14.800 of the way. So good capitalism where is where I 0:10:14.840 --> 0:10:19.679 benefit and you benefit more so? Creating a comb as 0:10:19.720 --> 0:10:23.840 an entrepreneur that gets the naps out of hair all right, 0:10:24.080 --> 0:10:28.960 straightens or whatever. That comb which I manufactured for two dollars, 0:10:28.960 --> 0:10:32.040 and I retail for let's say seven dollars, which is 0:10:32.040 --> 0:10:36.520 the cost of production plus retailing marketing, administration, et cetera, 0:10:36.600 --> 0:10:39.360 plus a profit margin, and then I sell that comb 0:10:39.400 --> 0:10:43.160 for again seven eight dollars. You feel that it's worth 0:10:43.240 --> 0:10:47.960 eight dollars or ten dollars to unnap your hair. Fair 0:10:48.120 --> 0:10:51.640 change is no robbery. There's good capitalism right there, where 0:10:51.640 --> 0:10:54.760 I benefit and you benefit more. Bad capitalism of capitalism 0:10:54.920 --> 0:10:56.760 is where I benefit you pay a price for it. 0:10:57.120 --> 0:11:01.240 Drug dealing and murder and mayhem for fear and human 0:11:01.320 --> 0:11:06.000 trafficking and all kinds of crazy stuff, subprime mortgages, a 0:11:06.000 --> 0:11:07.800 lot of stuff that has done from Wall Street and 0:11:07.920 --> 0:11:11.240 Main Street can be described as bad capitalism. Or as 0:11:11.320 --> 0:11:14.199 President Bill Clinton once told me, he said, John, is 0:11:14.240 --> 0:11:16.559 hard to get someone to greet to the truth when 0:11:16.600 --> 0:11:21.960 the lie is paying their paycheck. Let's again deal with 0:11:21.960 --> 0:11:26.839 with the reality of the matter that this system is 0:11:26.880 --> 0:11:32.440 all around us, and we need to understand how to 0:11:32.520 --> 0:11:37.440 control master sorry, this system, because if it's not working, 0:11:38.880 --> 0:11:44.840 if you're not working it, it's working you. Okay, So 0:11:44.960 --> 0:11:47.360 let's not get angry, let's not get upset, let's not 0:11:47.520 --> 0:11:49.600 tear it down. Let's refine it and make it better. 0:11:51.559 --> 0:11:55.480 Because I can't help anybody broke, you can't help anybody poor. 0:11:56.559 --> 0:11:59.720 There's a difference between being broken being poor. I'm starting 0:11:59.720 --> 0:12:02.920 to preach to be broke is economic, but to be 0:12:03.040 --> 0:12:07.040 poor is the disabling frame of mind, a depressed condition 0:12:07.080 --> 0:12:09.360 of your spirit, and you must vow never ever ever 0:12:09.440 --> 0:12:12.559 to be poor again. Folks joked and laughed at me 0:12:12.600 --> 0:12:15.800 when I brought bankers into the inner city with bankers 0:12:15.840 --> 0:12:18.880 bus tours in the nineties after our founded Operation Open 0:12:18.960 --> 0:12:22.080 nineteen ninety two. In South Central LA. The nineteen nineties, 0:12:22.120 --> 0:12:24.960 even the early two thousands, we had the biggest bus 0:12:24.960 --> 0:12:28.040 tour was twelve of these chartered buses with police escorts. 0:12:28.559 --> 0:12:30.000 And I treated it like it was a Third World 0:12:30.000 --> 0:12:33.439 country at South Central LA, Washington DC, different places in 0:12:33.440 --> 0:12:36.560 Oakland where we did these tours. Because if you hang 0:12:36.600 --> 0:12:38.840 around nine broke people, you'll be the tenth. I don't 0:12:38.840 --> 0:12:42.000 care how smart you are. No one has capital, and 0:12:42.080 --> 0:12:45.200 so these communities have drug dealers and well check cashers, 0:12:45.200 --> 0:12:49.400 pay daylin lenders, rental owned stores, title lenders, liquor stores, pawnshops, 0:12:50.000 --> 0:12:55.760 drug dealers, gangsters, and you're dying at sixty one years 0:12:55.800 --> 0:12:58.880 of age because you're stressed out. Because people in a 0:12:58.920 --> 0:13:01.600 five hundred credit scord neighborhood die at sixty one years 0:13:01.600 --> 0:13:03.920 of age. Did you know that My hope financial one 0:13:04.000 --> 0:13:07.240 is index. Go to operations website, putting your zip code. 0:13:07.240 --> 0:13:10.120 I'll tell you how you live in and by the way, 0:13:10.160 --> 0:13:13.360 for every fifty point increase in your credit score, you 0:13:13.480 --> 0:13:18.760 live about another five years. So if you get to 0:13:18.760 --> 0:13:22.199 your credit score above seven hundred, you live to eighty 0:13:22.280 --> 0:13:25.000 one years of age on average. And we've z We've 0:13:25.000 --> 0:13:28.360 mapped every ZiT code out in America. Now again, think 0:13:28.360 --> 0:13:31.480 about that fifteen minutes away from the hood where we 0:13:31.600 --> 0:13:38.880 are rejecting capitalism but are completely involved in hustling, which 0:13:38.920 --> 0:13:42.439 is capitalism, but without the structure, without the incentives, without 0:13:42.480 --> 0:13:45.920 the legal nature of it, without the ability to compound. 0:13:45.960 --> 0:13:48.800 Because there's a difference between making money and building wealth. 0:13:49.000 --> 0:13:52.520 You make money during the day and income. You build 0:13:52.520 --> 0:13:55.240 wealth in your sleep. Things I keep trying to teach 0:13:55.280 --> 0:14:02.000 you stocks, investing, stocks, bonds, education, business is real estate, 0:14:02.920 --> 0:14:06.800 et cetera. And as your stress increases in these underserved communities, 0:14:07.559 --> 0:14:10.760 you have a surviving mindset surviving mindset versus a winning 0:14:11.080 --> 0:14:14.800 mindset or a builder's mindset, and winners are builders. I 0:14:14.880 --> 0:14:17.160 need you to be a builder, and a builder's mindset 0:14:17.200 --> 0:14:20.120 is optimistic. I can't guarantee the being positive it's gonna 0:14:20.160 --> 0:14:24.120 make you succeed, but I absolutely guarantee that being negative 0:14:24.200 --> 0:14:27.960 is going to ultimately make you fail, and that negativity 0:14:28.040 --> 0:14:30.680 also is going to cause you your health to fail 0:14:30.720 --> 0:14:34.240 because of thoughts are things. So you're gonna be broke, 0:14:34.280 --> 0:14:36.600 You're gonna be Frustrated're gonna be depressed and be arguing 0:14:36.600 --> 0:14:39.400 with your wife or your husband about money. You're gonna 0:14:39.400 --> 0:14:41.800 have anxiety and have a heart attack or whatever, high pertension, 0:14:42.000 --> 0:14:44.520 eating bad food. Also in these communities I love I 0:14:44.520 --> 0:14:47.040 grew up in, and you're gonna drop dead on average 0:14:47.040 --> 0:14:49.880 of sixty one but fifteen minutes away, whether a credit 0:14:49.880 --> 0:14:57.720 score is seven hundred plus two, parent households, restaurants, grassy areas, calmness, 0:14:58.320 --> 0:15:04.880 proper businesses, stress, more education, more aspiration, more ownership, you 0:15:05.000 --> 0:15:07.480 live to eighty one ninety one years of age. Don't 0:15:07.520 --> 0:15:13.600 trust me, look at the data. So let's start winning. 0:15:13.800 --> 0:15:16.120 Because with the rules of published and the plain fullers level, 0:15:16.400 --> 0:15:20.440 we kill it. Professional sports we kill it, the arts, 0:15:20.680 --> 0:15:23.960 we kill it. I'm talking about black people now, faith 0:15:24.160 --> 0:15:28.520 we kill it. Kill it means we've mastered it and 0:15:28.560 --> 0:15:32.080 scaled it. Politics from slavery to the President of the 0:15:32.160 --> 0:15:35.000 United States of America, as in President Barack Obama, who 0:15:35.080 --> 0:15:39.480 just launched his Beautiful Library with his wife Michelle in Chicago. 0:15:40.360 --> 0:15:45.760 He's a living legacies. But we live at a capitalist democracy. 0:15:45.920 --> 0:15:49.400 That's right, I said it. And if you don't believe that, 0:15:49.440 --> 0:15:52.640 look at recent elections and what's driving this whole situation. 0:15:53.320 --> 0:15:55.640 Look at what's driving the conversation right now in this country. 0:15:55.760 --> 0:15:59.680 Look who really has the power capitalists owners. Look at 0:15:59.680 --> 0:16:02.040 the name. Think about the household names here and around 0:16:02.040 --> 0:16:04.640 the world. Okay, you used to be politicians now as 0:16:04.680 --> 0:16:09.080 business people, but they don't look like us, they don't 0:16:09.080 --> 0:16:11.720 have our pedigree. I was just at a meeting last 0:16:11.720 --> 0:16:15.360 week and I was the only black male founder, entrepreneurs, 0:16:15.440 --> 0:16:19.120 CEO chairman up from nothing, formerly homeless, you know, from 0:16:19.120 --> 0:16:21.560 the hood, in the whole group. Not because they don't 0:16:21.680 --> 0:16:25.520 want us there. They invited me, but there's a bunch 0:16:25.560 --> 0:16:29.760 of billionaires, multi millionaire CEOs, et cetera. But we're just 0:16:29.800 --> 0:16:35.040 not sign up for this movement at scale with the 0:16:35.120 --> 0:16:37.400 tools needed to sit at the table. And I want 0:16:37.400 --> 0:16:39.240 to expand the table and add a chair. That's why 0:16:39.280 --> 0:16:41.880 I'm trying to teach you how this game works. Because 0:16:42.960 --> 0:16:46.120 Forbes just made me a Forbes two fifty with one 0:16:46.160 --> 0:16:49.520 of the Forbes two hundred fifty greatest living self made Americans. 0:16:49.520 --> 0:16:52.080 So they say, on the two hundred and fiftieth anniversary 0:16:52.080 --> 0:16:54.680 of American Oprah Winfrey, who I can say now is 0:16:54.720 --> 0:16:57.480 a friend and she's amazing, is number one on that list. 0:16:57.880 --> 0:17:00.920 And number one of the greatest histori list of self 0:17:00.920 --> 0:17:05.800 made Americans is President Abraham Lincoln. So what a trajectory 0:17:06.080 --> 0:17:09.000 from Abraham Lincoln to Oprah Winfrey. And if she can 0:17:09.040 --> 0:17:10.439 do it, you can do it. If I can do it, 0:17:10.480 --> 0:17:13.320 you can do it too. Legally. And it's about it's 0:17:13.320 --> 0:17:17.440 not about networth, it's about distance travel, right, it's the arc, 0:17:17.840 --> 0:17:20.800 and it's proof of concept that this stuff works. My success, 0:17:20.920 --> 0:17:23.879 Oprah success, all the other people on that list success 0:17:25.200 --> 0:17:28.080 is proof that this works and it could work for you. 0:17:28.200 --> 0:17:31.959 And my book is a roadmap capitalism for all. So 0:17:32.600 --> 0:17:43.160 let's talk about this. Socialism, communism, billionaires, taxes, wealth, inequality, 0:17:43.680 --> 0:17:44.919 the rich, the poor. 0:17:45.840 --> 0:17:47.640 Everybody seems to have an opinion. 0:17:48.960 --> 0:17:54.760 Very few people define the words they're using today. We're 0:17:54.760 --> 0:17:57.359 going to define all of this and unpack it for you. 0:17:57.440 --> 0:18:00.919 Because we want to only argue about the solutions. We 0:18:01.000 --> 0:18:04.560 ought to just understand the problem. We shouldn't be admiring 0:18:04.600 --> 0:18:08.959 the problem or debating stupid stuff, and I believe America 0:18:09.040 --> 0:18:12.600 is actually getting this conversation wrong. So let's first talk 0:18:12.600 --> 0:18:14.120 about why people are so angry? 0:18:14.640 --> 0:18:16.800 Right, let me. 0:18:17.240 --> 0:18:20.359 Just say, right off the bat as I tell my 0:18:20.480 --> 0:18:24.560 wealthy and rich, my rich and my wealthy and uber 0:18:24.600 --> 0:18:29.960 wealthy friends, including billionaires, when they ask me why this 0:18:30.080 --> 0:18:32.720 movement of people talking about socialism and why people so 0:18:32.840 --> 0:18:39.359 angry at me them, I tell them that folks have 0:18:39.560 --> 0:18:43.200 a right to be angry, a right to be frustrated. 0:18:44.040 --> 0:18:46.359 The system has not worked for them, and capitalism and 0:18:46.400 --> 0:18:51.399 capitalists have done a crappy job of marketing itself and 0:18:51.440 --> 0:18:54.359 its virtues to the least of these God's children, a 0:18:54.440 --> 0:18:57.600 crappy job of making sure that the ladder of opportunity 0:18:57.680 --> 0:19:01.159 reaches the bottom and people can climb up with their 0:19:01.200 --> 0:19:01.679 own effort. 0:19:01.680 --> 0:19:02.040 At the top. 0:19:02.200 --> 0:19:04.560 People I know who are from the hood and the 0:19:04.560 --> 0:19:08.800 hood adjacent, who want success, believing the James Brown version 0:19:08.840 --> 0:19:11.800 of affirmative action, open the door. I'll get it myself. 0:19:12.160 --> 0:19:14.720 They're not asking for handouts, they're asking for a hand up. 0:19:15.119 --> 0:19:18.240 But you can't boots your up yourself without shoelaces. So 0:19:18.560 --> 0:19:20.680 I tell my friends, you know, you guys got to 0:19:20.680 --> 0:19:24.040 do a better job of doing something other than celebrating yourself, 0:19:24.040 --> 0:19:26.280 and how great this is supposed to great. The system is, 0:19:26.880 --> 0:19:29.440 we got a K shaped economy and somebody just told 0:19:29.440 --> 0:19:30.840 me they might have turned it might have turned into 0:19:30.880 --> 0:19:33.280 an E shaped economy. In other words, the E shaped 0:19:33.320 --> 0:19:35.480 economy is worse because there's these like these ledges that 0:19:36.040 --> 0:19:38.840 don't go anywhere. The kse shaped economy, Lisa is an 0:19:38.840 --> 0:19:40.679 angle that you might be able to rocket up, but 0:19:40.760 --> 0:19:44.320 it should be a V shaped economy, where V means 0:19:44.400 --> 0:19:48.640 victory at some point. So people are rightly so frustrated 0:19:48.680 --> 0:19:51.680 inflations through the roof. You might, by the way, understand 0:19:51.720 --> 0:19:55.960 inflation came from COVID because it's never been a response 0:19:56.000 --> 0:19:59.000 by the government to anything in the history of the 0:19:59.040 --> 0:20:01.560 world before COVID with the T in front of it, 0:20:01.600 --> 0:20:06.520 as in trillion. Never It's been hundreds of millions and billions, 0:20:06.920 --> 0:20:09.600 the global economic crisis of two thousand and the mortg 0:20:09.680 --> 0:20:11.840 crisis of two thousand and eight, two thousand and nine. 0:20:13.119 --> 0:20:15.240 But this was billions, and it wasn't one billion, it 0:20:15.320 --> 0:20:18.320 was two, it wasn't two, three, four five billion. Congress 0:20:18.359 --> 0:20:21.480 did all up. You're talking about six seven eight billion, 0:20:21.680 --> 0:20:23.440 a billion and a half of that was probably too much. 0:20:23.440 --> 0:20:26.000 But no, there was no manual you put off the 0:20:26.000 --> 0:20:29.000 shelf that said here's how you solve COVID or some 0:20:29.080 --> 0:20:33.280 global economic not economic crisis, how how you respond to 0:20:33.320 --> 0:20:36.240 a pandemic. The last pandemic we had was a Spanish 0:20:36.320 --> 0:20:38.760 flu in the world. It was one hundred and twenty 0:20:38.760 --> 0:20:41.520 five plus years ago. There was no manuals and it 0:20:41.560 --> 0:20:45.159 was on manual now. So the whole economy just seized up. 0:20:45.200 --> 0:20:46.840 It was like it was like, we forget this more. 0:20:46.840 --> 0:20:49.399 We're so traumatized, we don't want to remember it. But 0:20:49.440 --> 0:20:52.000 that's where the inflation came from. Because the government poured 0:20:52.040 --> 0:20:56.400 all this money over the free that freezed up gears, 0:20:56.480 --> 0:20:59.480 the locked up gears of the economy from big companies 0:20:59.480 --> 0:21:01.200 all the way down to your house. When they send 0:21:01.200 --> 0:21:04.160 you a check for a couple thousand dollars, remember that, Well, 0:21:04.200 --> 0:21:06.439 that has to be paid back people. It has to 0:21:06.480 --> 0:21:10.639 be flushed to the system that causes inflation. You can 0:21:10.680 --> 0:21:12.639 bind that, and I mean, I'm a surprise, frankly, I'm 0:21:12.680 --> 0:21:15.879 surprised inflation is not more like seven eight percent given 0:21:15.960 --> 0:21:17.840 what we went through. And that just shows how dynamic 0:21:17.960 --> 0:21:19.920 this economy is. And how amazing we are that we 0:21:19.960 --> 0:21:22.280 recover from that. But people just forget. They want to 0:21:22.280 --> 0:21:24.919 blame it on a president or something and come on, 0:21:25.000 --> 0:21:28.760 knock it off. That was bipartisan stimulus money. Both Republicans 0:21:28.840 --> 0:21:32.240 and Democrat gave that money during the pandemic, and presidents 0:21:32.240 --> 0:21:35.840 from both parties contributed to this whole situation. It's just 0:21:35.840 --> 0:21:40.560 with an unfortunate situation with no good answer. I understand 0:21:41.160 --> 0:21:43.280 the concerns. I understand that people got too much month 0:21:43.280 --> 0:21:46.000 at the end of their money and they're using credit 0:21:46.040 --> 0:21:47.920 cards to get buy with their standard of living. I 0:21:48.000 --> 0:21:50.920 understand the student loans are driving them crazy. I understand 0:21:50.920 --> 0:21:53.480 you can't you can't buy a house. The interest rates 0:21:53.480 --> 0:21:55.240 are too high because the interest rates are high because 0:21:55.280 --> 0:21:58.919 the Federal Reserve is trying to stamp out inflation. So 0:21:59.200 --> 0:22:04.120 you cannot have low interest rates without risking high inflation. 0:22:04.200 --> 0:22:06.639 So they're trying to get the interest rates the Federal Reserve. 0:22:07.400 --> 0:22:10.800 But you cannot have low interest rates without triggering high inflation. 0:22:10.920 --> 0:22:15.680 You cannot have higher interest rates without dampening economic activity 0:22:15.680 --> 0:22:20.000 and making things expensive. So buying a house is expensive. 0:22:20.640 --> 0:22:23.520 Buying anything is expensive these days, and it has an 0:22:23.520 --> 0:22:25.560 interest rate attached to it right, and then now you've 0:22:25.560 --> 0:22:28.280 got oil is through the roof. So I mean people 0:22:28.280 --> 0:22:33.480 are really frustrated. Whatever they turn you, affordable housing ain't affordable. 0:22:33.560 --> 0:22:35.200 And I say, a on a purpose. And so wherever 0:22:35.200 --> 0:22:38.199 you turn, you've got too much month at the end 0:22:38.200 --> 0:22:40.160 of your money and you're just not a happy camper, 0:22:40.240 --> 0:22:41.600 and you want somebody to cut you a break. Do 0:22:41.600 --> 0:22:44.359 you want somebody to solve an actual problem in your life? 0:22:44.400 --> 0:22:47.080 So millions of Americans feel left behind. I get it. 0:22:47.960 --> 0:22:50.080 Young people wonder if they can ever own a home 0:22:50.480 --> 0:22:54.960 in California. They're building what they call in Hawaii, ohannas, 0:22:54.960 --> 0:22:58.400 I think, but they're building residences above the garage. 0:22:58.440 --> 0:22:58.600 And the. 0:23:00.080 --> 0:23:02.639 Chief of Sabrachel told me, because she lives there still, 0:23:02.960 --> 0:23:06.800 that they're getting city, county, state government permits to build 0:23:07.480 --> 0:23:10.520 a living unit over the garage so that the kids 0:23:10.520 --> 0:23:12.719 can stay there, the seniors, the mothers and fathers can 0:23:12.720 --> 0:23:14.800 stay there. I think it's actually a pretty innovative idea. 0:23:15.440 --> 0:23:19.400 And I love how entrepreneurs and creative thinking and solve problems. 0:23:19.560 --> 0:23:22.840 I love how crisis requires us to think outside the box. 0:23:23.440 --> 0:23:26.000 And the housing crisis required California to come up with 0:23:26.040 --> 0:23:31.480 this cool idea, probably borrowed from my friends in Hawaii. Anyway, 0:23:31.960 --> 0:23:33.800 minions of Americans just don't know if they can ever 0:23:33.880 --> 0:23:35.880 young people, if they're gonna have ever own a home. That's 0:23:35.880 --> 0:23:38.080 the number one you build wealth in America's home ownership 0:23:38.400 --> 0:23:45.040