Speaker 1: Okay, I'm probably like you and you probably like me.
Speaker 1: Where the words I'm about to teach you right now,
Speaker 1: for the most of your life were useless, meaningless and pointless.
Speaker 1: They infect you in any way, or you didn't understand
Speaker 1: how it affected you in any way, and then when
Speaker 1: people try to explain it to you, they would explain
Speaker 1: it to you by using other terms that don't make
Speaker 1: no sense, talking about some puka shells and the cost
Speaker 1: of tulips and iron in the Dutch Empire, Like what
Speaker 1: did you talking about. I've been very transparent about my
Speaker 1: struggles with understanding the things I'm going to teach you
Speaker 1: in the area of of discipline that we're about to
Speaker 1: talk about, because it's just not how we thought about things.
Speaker 1: This is another how much a dollar cost episode. We're
Speaker 1: gonna talk about some economics, and again, just like politics,
Speaker 1: once someone gives you a different vocabulary about it, I'm
Speaker 1: pretty sure you'll be able to follow and understand exactly
Speaker 1: what's going on. So what we're gonna talk about today
Speaker 1: is the von Dutch hats and Choco tacos hood politics.
Speaker 1: How much of dollar costs? So here, how much of
Speaker 1: dollar cost Listen New sent Shock waves through all of
Speaker 1: our wonderful memories of childhood when we saw that recently
Speaker 1: the Klondike Company decided to discontinue the Choco Taco. Now,
Speaker 1: there is a very objective understanding of what is the
Speaker 1: best things to get from an ice cream truck. The drumsticks,
Speaker 1: maybe a push pop, you know what I'm saying, if
Speaker 1: you don't have a lot of money, you know what
Speaker 1: I mean, because there was a lot cheaper um, but
Speaker 1: the Chaco Taco, this was a coveted piece of of treats.
Speaker 1: We were heartbroken to hear that this thing was going away.
Speaker 1: Depending on the quality of the ice cream truck, I
Speaker 1: think I've told you this before a lot of times,
Speaker 1: some of the ice cream trucks be held a dusty
Speaker 1: and ain't got a lot in there because they're really
Speaker 1: not ice cream trucks. There covers for drugs like this,
Speaker 1: this is a a drug dealer, so he doesn't really take
Speaker 1: care of his ice cream. And then there's those that
Speaker 1: are like, you know, really, you know, running in an
Speaker 1: amazing business. And when you hear that song coming down
Speaker 1: the street, you knew it was go time. And if
Speaker 1: you was bawling out, you know what I'm saying, you
Speaker 1: get a couple of things now laters, which I was
Speaker 1: a full grown adult before I realized they were called
Speaker 1: now and laters. But the chaco taco isn't a very
Speaker 1: important part of our childhood now. As a side note,
Speaker 1: one could argue that all we're actually remembering about the
Speaker 1: taste is our memories, is the time of life we
Speaker 1: were in. It were just reminds us of a time
Speaker 1: of innocence. Were they that delicious? I don't know, because
Speaker 1: I can't remember the last time I had one, Which
Speaker 1: is the point I'm trying to make. Everybody that was
Speaker 1: so outraged about the discontinuing of choco tacos, Oh my god,
Speaker 1: it's so sad. You know, it's the end of the era.
Speaker 1: Like when the last time you bought one, the demand
Speaker 1: is gone. We was in the whole pandemic. Was you
Speaker 1: sending your kids to the ice cream truck? How many
Speaker 1: of y'all living communities that still have ice cream trucks?
Speaker 1: Mind does Because I live in Boil Heights, we are
Speaker 1: still kind of live in a hood. So we got one.
Speaker 1: We got a trot o man. We gotta bot that
Speaker 1: old man. We got man. You know, what I'm saying, like,
Speaker 1: we got all these there's a Tomali lady, you feel
Speaker 1: me like, I just this is just the experience in
Speaker 1: Latino communities. Is you get to have these things still
Speaker 1: coming down your street? I bet you? And when the
Speaker 1: last time you've seen the ice cream truck? I wait,
Speaker 1: when the last time you bought a Chaco taco? Now,
Speaker 1: y'all win got fro Yo. You feel me? Y'all was
Speaker 1: looking for, you know, gluten free and dairy free options,
Speaker 1: so you don't even remember the last time you bought them?
Speaker 1: So why would they keep producing these things if it
Speaker 1: ain't making no money? Now on the other side that thought,
Speaker 1: I thought to myself, you know what, I've never purchased
Speaker 1: a Klondike bar. It's strange to me. This is probably
Speaker 1: just by my location. Culturally, It's strange to me that
Speaker 1: the Klondike bar has continued, but the Chaco taco has not.
Speaker 1: And that's probably because you can get a Klondike bar
Speaker 1: the grocery store. I just don't remember ever buying one.
Speaker 1: I don't even know Klondike made Chaco tacos. The thought
Speaker 1: never crossed my mind that these treats came from a
Speaker 1: company I just never thought about it, just like you.
Speaker 1: But since they do. You got all the supply and
Speaker 1: no demand. So when you got a whole lot of supply,
Speaker 1: meaning we got all these Chaco tacos just sitting here
Speaker 1: in Melton, melting and ain't nobody buying them, your first
Speaker 1: thought is like, well, maybe let's lower the price. That's like,
Speaker 1: you know when you see end of the year sales clearance,
Speaker 1: It's just like, I just got all this stuff done.
Speaker 1: Nobody wants all the last year's fashions, don't nobody won't them,
Speaker 1: but I gotta, I gotta get rid of them. So
Speaker 1: you try to lower the cars. What that is is
Speaker 1: the idea again of supplying demand. I got all the
Speaker 1: supply and got no demand. So you lower the price,
Speaker 1: but you can't lower it to zero. So you're like,
Speaker 1: I guess I stopped making it. But what if you
Speaker 1: don't want to stop making it? What if you like, well,
Speaker 1: you know, their nostalgic. So one one solution could be
Speaker 1: maybe you know, you put them in the grocery stores,
Speaker 1: you put them next to the klon die bar, and
Speaker 1: you charge twice as much for the klonde bar, and
Speaker 1: then somebody goes, well, dang, it's the same company. Man,
Speaker 1: it's you know, maybe man good that costs too much.
Speaker 1: I'll get this other one. It's one way to solve it.
Speaker 1: You know, you're just trying to figure out how to
Speaker 1: offer your product. Now is that a good idea? Because
Speaker 1: now you're killing the sales of your other products, like
Speaker 1: or you just be like, cut your losses, get out
Speaker 1: the game. It's done. I let y'all, I'll let y'all
Speaker 1: cry over it, and maybe y'all crying over it will
Speaker 1: start raising the demand again, which dupe because I got
Speaker 1: a big supply. But who knows who understands that? What
Speaker 1: if one day, you know, you decided to discontinue it,
Speaker 1: and then some guy, some TikToker you know, with three
Speaker 1: trillion followers, says he wants to go get a Choco taco,
Speaker 1: says she want to go get a Choco taco, and
Speaker 1: she go do one all of a sudden, at least
Speaker 1: for that last little blip, all of a sudden day everywhere.
Speaker 1: Now you gotta high demand out of nowhere. But what
Speaker 1: if the demand is so high you can't meet its requirements.
Speaker 1: Now you gotta high demand and a rather low supply. Well,
Speaker 1: how you control that, Well, your price goes up, you
Speaker 1: get off fat Joe on us. Yesterday's price ain't today's price.
Speaker 1: Last year, they didn't want me. Now I'm hot. They
Speaker 1: all on me. Get some Mike Jones, y'all on me.
Speaker 1: Now I can charge I can charge more now. One
Speaker 1: I could charge more now because you're demanding it, and
Speaker 1: two because well, dang, I don't have a lot of them.
Speaker 1: I can't just offer them right now. Then it's like, well,
Speaker 1: we gotta be able to make more, So I gotta
Speaker 1: raise prices so I can make more, and not only
Speaker 1: make it more, not only raising the prices, like well,
Speaker 1: kids got a lot more money these days, you know.
Speaker 1: I mean it's like the dish. There's a lot of
Speaker 1: dollars circulating. So if I charged too low, Y're not
Speaker 1: gonna value it, you know what I'm saying. So like yo, yo,
Speaker 1: I need your dollar to do a little more work.
Speaker 1: And since you're dollar not doing a little more work.
Speaker 1: If I look at you know when they was like yo,
Speaker 1: when Chaco Otaco was hot, they was only they was fifty.
Speaker 1: There was a dollar, you feel me. But you're looking
Speaker 1: across the table now at them. Throw your foods. They
Speaker 1: charging phote dollars and you're like, hold up, if I'm
Speaker 1: gonna compete with them, apparently y'all got it, So I'm
Speaker 1: gonna start, well, I'm gonna charge you with they're charging
Speaker 1: because y'all got it. Yeah, y'all got the phone right,
Speaker 1: you know what I'm saying. But they were saying, well,
Speaker 1: will four dollars used to get me? That gives me
Speaker 1: the cup, the toppings, the ice cream, the spoons. You
Speaker 1: know what I'm saying, Just give me all kind of
Speaker 1: stuff that the four dollars go a little further over
Speaker 1: there at to throw your spot. So you're like, oh,
Speaker 1: oh my dollar yo. So for me to make you
Speaker 1: the chaco taco, for me to make what they make
Speaker 1: it to throw your spot. As far as profits, I
Speaker 1: have to charge five. Uh, that's that's kind of crazy.
Speaker 1: And also you know ice cream and the chocolate. It
Speaker 1: costs a little more then y'all because y'all you know
Speaker 1: the throw yo. They got the vats and you'll feel me.
Speaker 1: They got the kegs. We ain't got no kegs. We
Speaker 1: gotta make them individually. That's gonna cost me a little more.
Speaker 1: So maybe I gotta charge six and you the kids going, well,
Speaker 1: let me get this straight. I'm paying more and getting
Speaker 1: less that and I or it's like, yo, I bought
Speaker 1: this thing yesterday. It was five hours today at six, Like,
Speaker 1: are you are y'all playing games with me right now? Well, no,
Speaker 1: this is how the economy works. We are talking about
Speaker 1: inflation and recession. This is where we're gonna learn about today,
Speaker 1: inflation and recession. I mentioned the Von Dutch trucker had
Speaker 1: because at one point that thing was so on fire.
Speaker 1: Now listen, it was hideous to me. I was never
Speaker 1: into the Von Dutch, the true religion that you know,
Speaker 1: rhyin stone jeans, you know, none of that. I thought
Speaker 1: them foods look ridiculous. I'm like, that's a trucker hat
Speaker 1: with a patch on it that costs too much. I
Speaker 1: just it wasn't my thing. But it was the hottest
Speaker 1: thing in the world, right, and then all of the
Speaker 1: sudden it got so hot that it became corny. The
Speaker 1: price was so high, right, it was so ubiquitous, It
Speaker 1: was so everywhere that it just seemed like it was
Speaker 1: gonna be on top of the world forever. And then
Speaker 1: it Wasn't you find it a thrift store from five
Speaker 1: dollars if you wear it. At some point culture changed
Speaker 1: and it became a joke to where that outfit out
Speaker 1: of nowhere. I mean, at least from a consumer standpoint.
Speaker 1: It just got so played that you was like, I'm
Speaker 1: done with this. So with the Chaco taco, we just
Speaker 1: kind of grew out of it. It's just the market
Speaker 1: moved on. That's a little more predictable. With the vond
Speaker 1: Dutch hat, it just seemed like overnight, just we decided,
Speaker 1: all right, this is wash. Okay, y'all doing too much.
Speaker 1: What I'm trying to say is like, in understanding any
Speaker 1: economic model, there is a wild X factor called humans
Speaker 1: that you just can't listen. I don't care what your
Speaker 1: models say. And this, to me was why economics was
Speaker 1: always so hard. I don't care what your little models say.
Speaker 1: I don't care. Like, it's really hard to predict where
Speaker 1: culture gonna go. You can look at huge trends like
Speaker 1: if if if your lens is wide enough, you could
Speaker 1: do it. But some stuff just defy all models. It's
Speaker 1: just how people be. We just decided Von Dutch was corny.
Speaker 1: We just did so. While you were stocking up for
Speaker 1: the next fall season, you woke up one day and
Speaker 1: was just like, ain't nobody buying this? Just what you
Speaker 1: gotta do? You gotta lower your price. Hopefully got it delived.
Speaker 1: You can't. You just can't predict humans. Now, let's get
Speaker 1: into the specifics, nuts and bolts and some mystery about
Speaker 1: like what America has tried to do to control this stuff.
Speaker 1: Let's take a break. So terms all over the all
Speaker 1: over the news right now, inflation, recession, all these different things,
Speaker 1: like I said, like they didn't really mean nothing to
Speaker 1: me until I really, uh was able to get my
Speaker 1: brain around what you're trying to say, because again, you
Speaker 1: grew up like I grew up, Like we never had
Speaker 1: enough money. You just always made it work. Like what
Speaker 1: are you gonna do? What are you gonna not get gas?
Speaker 1: We're gonna not go to work? What are we gonna
Speaker 1: not eat? Though sometimes we didn't eat or we just
Speaker 1: like you know what a thing? What an of triggering
Speaker 1: things for black people in the hood is spaghetti because
Speaker 1: it will last forever and it feeds up people. You
Speaker 1: So you be eating spaghetti like fouring five nights a
Speaker 1: week because you make one pot and it feeds somebody,
Speaker 1: It fills you and it lasts forever, you know what
Speaker 1: I'm saying. So even if the money was short, even
Speaker 1: if the money was funny, you get it. How you living,
Speaker 1: You just go figure out other things, you know what
Speaker 1: I'm saying. So you're telling me like, oh man, the
Speaker 1: markets doing this and the stock marketing the doll jones,
Speaker 1: I'm like that, don't. My life is not any any
Speaker 1: different in any way. You have to pay the bills,
Speaker 1: you know what I'm saying. And up there was again
Speaker 1: there was never enough. So I like, we were never comfortable.
Speaker 1: I mean, we were comfortable enough, but like my grandma
Speaker 1: used to say, and my mom used to say, there
Speaker 1: by the grace of God go I, which basically means,
Speaker 1: won't know where that stuff is coming from. I don't
Speaker 1: know why it's working. It just does, you know. But
Speaker 1: what does any of this stuff mean? And why do
Speaker 1: we need to care about it? So? Definition time inflation
Speaker 1: is when the price of an item rises, not just
Speaker 1: because of cost of living, but it's just going up.
Speaker 1: Which another way to say things cost more now is
Speaker 1: to say is to say that my dollar doesn't get
Speaker 1: me enough. They call it buying power. It's the It's
Speaker 1: two ways to say the same thing. Three dollars used
Speaker 1: to be able to get me a Costco slice of pizza.
Speaker 1: And I don't know if you saw that that that
Speaker 1: video going around where they saw the dude climb up
Speaker 1: and change the price from two dollars to three dollars
Speaker 1: or three dollars four or whatever case. When you were
Speaker 1: watching him change the price, it's the same pizza. We're
Speaker 1: not making more, you're not raising minimum wage. So what
Speaker 1: cost me two dollars yesterday is gonna cost me four
Speaker 1: dollars today. That's called inflation. Why does that happen? It
Speaker 1: depends on who you ask. And this is where it
Speaker 1: gets political because some would say, well, it's it's government
Speaker 1: and invention. It's when you pump too much money into
Speaker 1: the to the system. Member member, we talked about that
Speaker 1: where I was like, you know, again, money made up,
Speaker 1: so it didn't make no sense to me. I'm like,
Speaker 1: if we're in debt, just print more money since we
Speaker 1: get since we made it up, you're telling me the government,
Speaker 1: oh four trillion dollars, Okay, go to the machine right
Speaker 1: now and make four trillion right. But when you do that,
Speaker 1: that means again the value of the dollar. It's gone
Speaker 1: because it ceases to mean anything. You gotta you gotta
Speaker 1: keep the amount in circulation. Little. It's just like you
Speaker 1: and your little Pokemon cards. If you catch a rare Pokemon,
Speaker 1: it worth more because it ain't that many of them,
Speaker 1: you know what I'm saying. But you can find a
Speaker 1: charges are anywhere, So a charge our car that I
Speaker 1: mean that there's a million of them. They don't it,
Speaker 1: don't you feel me? So it's like it don't the
Speaker 1: value of that card. It ain't got no weight. So
Speaker 1: you can't just print money because the money loses its
Speaker 1: weight then, right, but some would say that's the cause
Speaker 1: of inflation. We just printed money, so that mean the
Speaker 1: money don't mean nothing. So that means I gotta you
Speaker 1: got all these people who all this cash, y'are buying
Speaker 1: up all my supply, right, so you gotta high demand
Speaker 1: and a low supply. Y'all got all this money. Y'all
Speaker 1: got all this money you want to spend. You got
Speaker 1: all this this stuff. You want this high demand, but
Speaker 1: we can't make it. We ain't got enough, and you
Speaker 1: just got money. It's just money everywhere. So okay, it's
Speaker 1: a brazilion dollars. When I used to teach. Actually know what.
Speaker 1: I got this from my eleventh grade English teacher. He
Speaker 1: used to say, your assignment's worth a hundred points, and
Speaker 1: we'd be like, dang, that's crazy. Then he would be
Speaker 1: he would say this essay you gotta write is worth
Speaker 1: ten thousand points. I would be like, oh my god, man,
Speaker 1: you would if we would freak out, and he would
Speaker 1: go do This's just he told me one day. I
Speaker 1: remember because I was like, he was the real cool teach.
Speaker 1: He probably what got me into like sociology cultural studies.
Speaker 1: He's one of the one of the reasons why I
Speaker 1: actually wanted to study it, like multicultural like intercultural studies.
Speaker 1: But he said, uh, because it's just a decimal. He's like,
Speaker 1: ten points is a hundred points, is a thousand points,
Speaker 1: You're just moving the decimal. I just do that to
Speaker 1: freak you all out. This man was using inflation to
Speaker 1: scare us because because he's right. He's like, I mean,
Speaker 1: I could make this thing worth ten points and you
Speaker 1: get a nine point five, or I can make it
Speaker 1: worth the hundred points and you get a nine. It's
Speaker 1: just they're just decimals. I was like, dang that you're
Speaker 1: you're smarter than me, remember my loving crazy So I
Speaker 1: started doing that in my classroom too. I was like,
Speaker 1: but I did it the other way around. I was like,
Speaker 1: your homeworks were ten points, Like that's it. I'm like, yes,
Speaker 1: it's just a decimal. I don't want to do the
Speaker 1: math yeo. Anyway, As a side note for any of
Speaker 1: you math teachers out there, one guy that used to
Speaker 1: work with me, he made all of his tests like
Speaker 1: the answer key. All this tests were ten questions. We're
Speaker 1: twin ten math problems, and the answers if you did
Speaker 1: one through ten was a phone number he had memorized.
Speaker 1: So if the phone number is like five six too,
Speaker 1: which is l a area code, So like five six
Speaker 1: to one nine, I'm making up this number five six
Speaker 1: two two one nine to night, every answer of the
Speaker 1: ten questions would be the first answer is five, the
Speaker 1: second answer is six is. So he would be able
Speaker 1: to grade them real fast by just being like, Nope,
Speaker 1: that's not the phone number. Nope, that's not the phone number. Nope,
Speaker 1: that's not the phone number. Brilliant. I didn't. I didn't
Speaker 1: teach math for a long time. I taught it for
Speaker 1: a little bit, and when I did that's that's what
Speaker 1: I did. Cut your grade in half. Anyway, I don't
Speaker 1: know what percentage of y'all are teachers, but uh, it's
Speaker 1: a great hack. So inflation is something we all understand
Speaker 1: because it's simply just means the prices is going up.
Speaker 1: It's inflating my I gotta make I gotta too much
Speaker 1: month at the end of my money, you know what
Speaker 1: I'm saying, Like we we check to check out this mug.
Speaker 1: But what's so unique about inflation is the fact that,
Speaker 1: like this same check, last month's fine, we were fine.
Speaker 1: This month were not. And I I haven't made any
Speaker 1: extra purchases. It's just everything costs more. I was literally
Speaker 1: at the ice cream truck yesterday. The Chaco taco was
Speaker 1: a buck fifty. What the hell in doing three islands today?
Speaker 1: What changed? It's just the price has gone to and
Speaker 1: and and. Look. I don't care how staunch of a conservative, libertarian, whatever,
Speaker 1: whatever your political stances. At some point when something costs
Speaker 1: too much all over the board, you want somebody to
Speaker 1: do something. All of a sudden, of sudden government intervention
Speaker 1: is something because you could either blame that person, oh
Speaker 1: you know, you know this, This president he's messing up
Speaker 1: all of our prices. Mike, Well, okay, is he? You
Speaker 1: know what I mean? Well, what you want him to
Speaker 1: do about it? I think the government should stay out
Speaker 1: of our affairs. Okay, Well I won't do nothing it. Well,
Speaker 1: it's the government's fault that this is. Okay, Well I'll
Speaker 1: do something. Well, you need to say it's like dog,
Speaker 1: you can't win, you know what I'm saying, Because whether
Speaker 1: you Kanzian or Smithian, or small government or big government,
Speaker 1: when something costs too much, we can't afford to just
Speaker 1: live as a as a whole because again, like I said,
Speaker 1: where I came from, we never had enough. Just figured
Speaker 1: it out. Now. Some others would say that the reason
Speaker 1: for inflation has to do with the global economy to
Speaker 1: supply chain. You know what I'm saying, Like, well, if
Speaker 1: something costs me more, I have to pass that price down,
Speaker 1: you know what I'm saying. And whether okay, So then
Speaker 1: then we talk about like taxes on stuff like tariffs, like, uh,
Speaker 1: you know our own costs to live in You know
Speaker 1: that I want to pay my workers. Well, you know
Speaker 1: there's all these all these other things like you know
Speaker 1: this whole chip shortage. You feel me this, uh, the
Speaker 1: war in in Russia, you know what I'm saying, like
Speaker 1: all these other things, or just straight up good old
Speaker 1: fast American corporate greed. I'm charging this because you'll pay it,
Speaker 1: because you got to pay it. That's one thing, Like, well,
Speaker 1: that's what's so crazy about Like gas, you know what
Speaker 1: I'm saying, Like crue To, it's like, well, what you're
Speaker 1: gonna not use it? You like you you gotta you
Speaker 1: gotta pay it? Would you want me to say? So? There?
Speaker 1: And some of it might just be that, but at
Speaker 1: some point or another, whether we can agree on how
Speaker 1: we got here and how we don't and here's here's
Speaker 1: a news flash. We don't agree. We actually don't really
Speaker 1: know how it works because people are the X factor.
Speaker 1: We still gotta figure out what to do. But when
Speaker 1: it comes to the government, though, you want somebody to
Speaker 1: do something, and if this person is supposed to be
Speaker 1: empowers person supposed to be in charge, you're supposed to
Speaker 1: do something, right everybody, Hey, government, until you can't afford
Speaker 1: you rent me. Now it's a hey, big head, you
Speaker 1: know what I'm saying. So over the years, we've tried
Speaker 1: many different ways to try to as a nation as
Speaker 1: a total economy bring the price of stuff down, which
Speaker 1: in some senses it's like I kind of never understood
Speaker 1: like why that was necessary, in the sense that if
Speaker 1: something costs too much, we just won't buy it. And
Speaker 1: if we don't buy it, then you got to lower
Speaker 1: the price because that's one of the like And now
Speaker 1: this is a very again, like I said before, people
Speaker 1: are x factors and there are some things that you
Speaker 1: can't skimp on, but there's other things that you can
Speaker 1: that you can. It's like we ain't buy the name
Speaker 1: brand Cereal because they cost too much. When the price
Speaker 1: went down when it was on sale, we bought it.
Speaker 1: It just it would just still sim to me. So
Speaker 1: I think there's one things with like business to where
Speaker 1: it's like you can charge what people will pay, you
Speaker 1: know what I'm saying, But check this OUTO. This is
Speaker 1: where I get crazy because the same amount for two
Speaker 1: different things. Because people are so interesting. Like if you
Speaker 1: say to yourself, Okay, I'll buy this toast, you know
Speaker 1: what I'm saying, with bean sprouts and avocado on it
Speaker 1: for ten dollars because it's good. But if there was
Speaker 1: a an app on my phone that said, hey, we'll
Speaker 1: remove all the ads for ten dollars. I'm like, is
Speaker 1: you crazy ten dollars for an app? What? It's the
Speaker 1: same amount of money, but I have there's a perceived
Speaker 1: value I have for this Alvo toast. I'm not dragging
Speaker 1: Alvo toast. Avocado is amazing. It's just you know, toast.
Speaker 1: When it's done right, it's amazing. If you can make
Speaker 1: a good one, you know, do a little Friday Egg,
Speaker 1: gonna do a little Loco Moco. You understand what I'm saying.
Speaker 1: It's bombed the meat. I'll pay ten dollars for that.
Speaker 1: But you know what I ain't gonna pay ten dollars
Speaker 1: for is like, uh, like a value meal at a restaurant,
Speaker 1: at like a fast food joint. I'm not ask too much.
Speaker 1: It's so there's more food with that. I just don't
Speaker 1: believe that that is worth my ten dollars. I can't
Speaker 1: explain it. That's just how people are. So we've tried
Speaker 1: many ways to keep inflation from going crazy, right, And
Speaker 1: some would say, you know, the purists are just like
Speaker 1: you know les fair let the buy everywhere, like the
Speaker 1: economy a fixed itself. People ain't crazy, right, Uh, it
Speaker 1: just doesn't that just now happens for some reason. I don't.
Speaker 1: I don't get it. It's just dope, right, because of
Speaker 1: a lot of things. Really I'm being silly, but like
Speaker 1: because of a lot of things. You know, sometimes it's
Speaker 1: um racism, sometimes it's greed, and you know, maybe if
Speaker 1: you give me a couple of cocktails and I'll draw
Speaker 1: that line for you. But like, that's that's not what
Speaker 1: we're trying to learn right now. Let's let's not overcomplicate
Speaker 1: things because it's already hard to understand. So one way
Speaker 1: to do that, and we actually tried this, like post
Speaker 1: World War two, you know what I'm saying, where we agreed.
Speaker 1: There was even a whole like straight up government office
Speaker 1: that was all about price control. That the government set
Speaker 1: up price for something, and it was like outlawed, illegal.
Speaker 1: You get fined to raise your price pass a certain
Speaker 1: threshold because of cost of living. They're like, look this
Speaker 1: the money we got. You feel me, if I'm gonna
Speaker 1: feed my family based on what average wages are, you
Speaker 1: can't go higher than that because that's like and who
Speaker 1: wouldn't want the idea of knowing for a fact that
Speaker 1: this corporation, you know, this company can't price gouge me. Now.
Speaker 1: The only way for that to work is you have
Speaker 1: to add rations to that, which is what we did
Speaker 1: as a nation. I don't even notice, but like rations
Speaker 1: meaning like okay, check this out. Like if we're saying
Speaker 1: eggs a carton of eggs, you can't charge more than
Speaker 1: three dollars for a carton of eggs. Foods will go
Speaker 1: in there and be like, give me twenty cartons of eggs,
Speaker 1: and now they all gone, And then you know what
Speaker 1: I'm gonna do, like anybody else would do, I'm about
Speaker 1: the whole stack of them and sell them out the
Speaker 1: garage because I'm not a corporation, right, and I can
Speaker 1: sell them for five dollars because there ain't none that
Speaker 1: the store. That's what anyone who got any sense would do, right.
Speaker 1: So they said, okay, now you're not allowed to do that.
Speaker 1: You can only get so many cartons, you know what
Speaker 1: I'm saying per household. Yeah, they had what's called a
Speaker 1: ration card out of the yain. I know that, y'all.
Speaker 1: This was in America, like we did this, and it
Speaker 1: was again to make sure that the prices that that
Speaker 1: that the dollars still get you and we're trying to
Speaker 1: trying to catch all the prices right, and when you
Speaker 1: run out, you run out. Now, everybody like that except
Speaker 1: for the the business people, because they was like, Yo, wait,
Speaker 1: hold up, how I'm gonna compete with the store next
Speaker 1: door if I can't fluctuate my prices here. Not only
Speaker 1: that you're telling me, it's like say, for example, you
Speaker 1: know you gotta you gotta you gotta gig where you
Speaker 1: need to uh for your business. You gotta get these
Speaker 1: certain like three fourth inch nails, and these three fourth
Speaker 1: inch nails are out of stock because of these rations.
Speaker 1: I'm now out of business. I mean there's nothing I
Speaker 1: can so if I'm out of business, fam I just
Speaker 1: fired all these people. Now there's unemployment, so you're trying
Speaker 1: to keep the prices low. Hello, is zero because nobody
Speaker 1: working because you won't let me make no profit. That's
Speaker 1: they was arguing. Because check this out. Here's what the
Speaker 1: other side of inflation happens. And this is why it's
Speaker 1: always a tug of war, because to bring down inflation,
Speaker 1: you got to create a recession. What yes, unemployment, because
Speaker 1: look at if the employment is low, I don't care
Speaker 1: what you charge. I ain't got the money for it.
Speaker 1: And if I ain't got the money for I think,
Speaker 1: guess what happens? The supply grows and the demand shrinks.
Speaker 1: You see that. An inflation is when the demands high
Speaker 1: but the supply is low. A recession is when the
Speaker 1: supply is high but the demand is low. I can't
Speaker 1: get it because I ain't got it. So what happens
Speaker 1: if you can't sell no product? You try to do
Speaker 1: what the Chaco taco do? You lower the price. Because
Speaker 1: if I lower the price, maybe y'all will start buying
Speaker 1: it again. But I mean, if you as American as
Speaker 1: I am would, could you honestly imagine America actually trying
Speaker 1: to put some sort of government agency for prices? Like,
Speaker 1: as you serious, you really think that's gonna ride? Absolutely not,
Speaker 1: because it didn't because they just like us, right, so
Speaker 1: it ain't ride. You know. Uh, Nixon tried to do
Speaker 1: it again, except when he did it, y'all know, y'all
Speaker 1: remember the pictures of the sevenies and people siping gas.
Speaker 1: My my daddy used talking about that. You go in
Speaker 1: there and go to the gas station, suck the mug out,
Speaker 1: spit it out real quick, and try to get some gas.
Speaker 1: Because gas costs to what it was running big old
Speaker 1: lines down to me because listen, there was look at
Speaker 1: the demand was high, supply was low, so it costs
Speaker 1: too much inflation out the window. So what he tried
Speaker 1: to do, will say, okay, for the next ninety days,
Speaker 1: nobody raised their prices. I'm gonna trust y'all to be
Speaker 1: cool about it. The problem is what's gonna happen is
Speaker 1: what we would do with the X because he didn't
Speaker 1: put no rations in place, which is like, oh, you're
Speaker 1: telling me, okay, so so kannye. Saturday is two dollars
Speaker 1: a pound. I can't go hired than two dollars a pound. Okay,
Speaker 1: give me a hundred pounds of it, and I'm gonna
Speaker 1: sell it, and I'm gonna sell it out the trump.
Speaker 1: I know it's weird to sell knee out the trunk,
Speaker 1: but you just put ice in the trunk and if
Speaker 1: it ain't none over there, what you're gonna do? You know?
Speaker 1: The kid, like we said, the kid I did that
Speaker 1: a long time ago, the kid that had the backpack
Speaker 1: full of candy at school. He charged, whatever you want,
Speaker 1: what you're gonna do, where you're gonna get. I'm your
Speaker 1: only option charge what I want. You gotta clean this stack.
Speaker 1: Listen all of y'all trying to This is stock x.
Speaker 1: This is you trying to buy sneakers. That's how, that's how.
Speaker 1: That's how it worked. This you're trying to get concert tickets.
Speaker 1: A third party bought up, bought the whole arena and
Speaker 1: selling to you what they want to sell because you
Speaker 1: can't get anywhere else. It's the American way sucks, right,
Speaker 1: but the more modern way people try to fix it.
Speaker 1: And this is where it gets real crazy. Where I
Speaker 1: was like, I don't know what y'all talking. This is
Speaker 1: where I usually check out, but don't check out with
Speaker 1: matter of fact, I'm gonna give you all break real quick.
Speaker 1: H m hmm. All right. Then you start talking about
Speaker 1: the Feds and interest rates, and usually I'm like, okay,
Speaker 1: if I don't understand what you're talking about, like what
Speaker 1: that got to do with anything. This is how it works.
Speaker 1: Prices go super high because of inflation, right, high demand,
Speaker 1: low supply for whatever reason, we all need this stuff.
Speaker 1: This is what's happening. So to bring that demand down,
Speaker 1: this is what the FEDS do. They raise interest rates.
Speaker 1: What does that mean? So remember I told you, like
Speaker 1: interest is very simple. You gotta pay me to let
Speaker 1: you use my money. I'm not just gonna it's not
Speaker 1: gonna be just a one to one exchange like I'm
Speaker 1: offering a service. So a hundred dollars is going to
Speaker 1: cost you five right, you know five of a hundred
Speaker 1: dollars is go ahead and do the math. You got it.
Speaker 1: It's five bucks right? So uh cool, um, if it's
Speaker 1: if you pay it off right then, but remember compound
Speaker 1: or like it's five percent every time you pay the bill. Anyway,
Speaker 1: I don't want to get into that. So you would
Speaker 1: raise the interest rates, and what do you do for who?
Speaker 1: Who's going to get loans? People buying houses, so people
Speaker 1: got money, people buying houses, people owning businesses. You know
Speaker 1: what I'm saying. People trying to do that. So so,
Speaker 1: so the idea was this, if we shoot the price
Speaker 1: of interest up right where it's like I can't afford
Speaker 1: to I can't afford to go get no loan, whether
Speaker 1: you are home or a business, the price is gonna
Speaker 1: get so high. Like we said before that you like,
Speaker 1: I'm good, I can't go get a new one. And
Speaker 1: not only that, the bills I got now on my business.
Speaker 1: You just shot my interests up, so that means nobody's
Speaker 1: going to get the loans because ain't nobody got money
Speaker 1: for it. So in theory, that's gonna make everyone else
Speaker 1: across the economy now have to lower their prices because
Speaker 1: nobody's spending anymore because it costs too much. Right, Well,
Speaker 1: the priv him is if businesses are doing this, if
Speaker 1: they bills go up, they can't afford to pay people
Speaker 1: what they was paying them. You understand, you can't afford
Speaker 1: to even keep the same amount of employees. So what
Speaker 1: happens is gross unemployment. And then when unemployment happens, like
Speaker 1: we said, you get a recession, we ain't got the bread.
Speaker 1: And the hope is when you have that the ideas
Speaker 1: that you're it's like it's a balancing act. It's like
Speaker 1: inflation goes so crazy, or we better raise the interest
Speaker 1: rates to make everybody drop their prices, and then now
Speaker 1: people are spending again because it's like, well, yo, I
Speaker 1: can afford it again. It's the sweet cereal, Like the
Speaker 1: price went down, I'm cool, But if the demand's gone,
Speaker 1: you gotta be a choco taco Like well, I mean
Speaker 1: I was buying it at all, So what are we doing.
Speaker 1: There's zero demand, all right, because I got this high supply,
Speaker 1: no demand, right, So the the goal is to try
Speaker 1: to pull levers like this. Now, this is what you're
Speaker 1: listening to. Is reaganomics. This, this is Reagan. That's what
Speaker 1: he did. That's what that's the eighties and people claim,
Speaker 1: which is the craziest part to me, because we came
Speaker 1: out of the eighties after two courses as a nation,
Speaker 1: after two terms of of Reagan, we came out into
Speaker 1: this nineties economic boom where the nation was just bawling
Speaker 1: and they were saying it because well, because Reaganomics worked.
Speaker 1: But I'm like, unless you black or brown, because the
Speaker 1: eighties I remember was vast unemployment. Foods couldn't find no jobs,
Speaker 1: and white think we white think we were selling drugs.
Speaker 1: Well there was but no jobs nowhere. You couldn't go
Speaker 1: get a job and if you did, it paid nothing.
Speaker 1: Because of this thing you're telling me fix the economy.
Speaker 1: You're this again. This why economics don't make no sense
Speaker 1: to me, because I'm like you telling me this is
Speaker 1: a success. I don't I don't understand. Oh, well, you
Speaker 1: know the prices of things went down, you know, and
Speaker 1: they think was like, yo, you just gotta sweat it out,
Speaker 1: sweat it out, tough it up, make it work. Remember
Speaker 1: I told you I was raised in a way that
Speaker 1: it was like, well, there was never enough. That's because
Speaker 1: I'm a child. I'm a I'm an eighties baby, the
Speaker 1: child of the nineties. I was in this, this is
Speaker 1: my time. There was never enough. Jove's head, he had
Speaker 1: this idea that like, okay, so we raised his interest rate.
Speaker 1: I I lowered the taxes of these businesses, and eventually
Speaker 1: that money is gonna come down and you're gonna be
Speaker 1: able to hire more people. People don't get new jobs.
Speaker 1: You know what happened though, is people was people. That's
Speaker 1: this was supposed to be called trickle down economics, meaning
Speaker 1: keep the prices low, let the government stay out of it,
Speaker 1: cut your taxes so that these companies now have more
Speaker 1: more more buying power, more spinning power. That means you
Speaker 1: can hire more people, you can expand you could get them.
Speaker 1: So then eventually that tax break is gonna get down
Speaker 1: to the people. Guess what happened. The tax breaks stayed
Speaker 1: at the top. They just pocketed it, so it didn't
Speaker 1: it never trickled down. It's the point, at least to us.
Speaker 1: I can't talk about nobody else's community, but I know
Speaker 1: in my community didn't change nothing, Joe say. But it
Speaker 1: convinced the nation that that's how you fix inflation and
Speaker 1: recession is you give a little bit of recession and
Speaker 1: to fix the inflation. Just just you know, Teeter Totter,
Speaker 1: tip for tat you feel me, keep the scales balanced,
Speaker 1: so von Dutch Choco tacos. It's all about supply and demand.
Speaker 1: And there are things that we may not necessarily understand
Speaker 1: as to why we demand certain things. But if the
Speaker 1: supply is low and the demand is high, you can
Speaker 1: charge whatever you want. And why the supply is low
Speaker 1: can vary, right, But either way, the prices go up
Speaker 1: without us making any more money than we normally do.
Speaker 1: That is called inflation. And the recession that everybody is
Speaker 1: talking about is when the prices dropped so low that
Speaker 1: no business is really making money because nobody can actually
Speaker 1: buy the stuff because the recession caused unemployment. Kind of
Speaker 1: feels like it's it's a never ending sort of Teeter Totter,
Speaker 1: don't it? Yeah? No, what are you gonna do? Guy,
Speaker 1: honestly don't know good politics. M Yeah, that's here. Thing
Speaker 1: was recorded by Me Propaganda and East Low's Boil 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 going by Matt
Speaker 1: now again because he got to some legal situations with
Speaker 1: the name headlights. Y'all know, comment used to be called
Speaker 1: common sense, you know. Tip t I was tipped and
Speaker 1: top executive produced by the one and only Sophie Lectorman
Speaker 1: for a Cool Zone Media and the theme music by
Speaker 1: the one and only Gold Tips Gold Tips d J
Speaker 1: Shawan p So. Y'all just remember listen every time you
Speaker 1: check in. If you understand city living, you understand politics.
Speaker 1: We'll see how next week