WEBVTT - Nurturing the Next Generation of Responsible, Informed Citizens

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is Bloomberg Business Week with Carol Messer and Tim

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<v Speaker 2>Steneveek on Bloomberg Radio. Die did you well.

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<v Speaker 3>If others have.

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<v Speaker 1>Did slowly go, Yeah, you're gonna understand maybe what we

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<v Speaker 1>need to be doing with all of our kids that

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<v Speaker 1>are at them. I've got them, Tim's got them, You've

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<v Speaker 1>got them. I'm sure.

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<v Speaker 2>Uh.

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<v Speaker 1>And there's something important when it comes to understanding politics,

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<v Speaker 1>but probably more importantly, how our government works.

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<v Speaker 2>Okay, So here's some numbers that might freak you out, Carol.

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<v Speaker 4>Okay.

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<v Speaker 2>According to a twenty twenty three Annenberg Constitution Day Civic survey,

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<v Speaker 2>nearly one in five Americans cannot name a single branch

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<v Speaker 2>of government.

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<v Speaker 1>You and I can do it. We did a test.

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<v Speaker 2>Before we did a test. It's executive, legislative, and judicial,

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<v Speaker 2>by the way, but yeah, nearly one in five can't

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<v Speaker 2>name a single one of those branches.

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<v Speaker 1>Twenty percent.

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<v Speaker 5>Yeah.

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<v Speaker 2>So perhaps not surprising given the state of civics education

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<v Speaker 2>in the US. Recording to the Committee for Economic Development

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<v Speaker 2>It's the Public policy center of the Conference Board, only

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<v Speaker 2>seven states require a full year of civics or government

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<v Speaker 2>in schools. And thirteen states have no civics course requirements.

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<v Speaker 4>I didn't take a Civics class, did you?

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<v Speaker 5>Not?

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<v Speaker 1>In high school I learned about government.

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<v Speaker 2>Yeah, yeah, yeah, not do it in high school.

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<v Speaker 1>You're right, I don't know.

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<v Speaker 4>I just all right.

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<v Speaker 1>Anyway, a lot at stake. If Americans really don't know

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<v Speaker 1>how their government works, just ask Lindsay Kormack. She is

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<v Speaker 1>Associate professor of political Science and director of the Diplomacy

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<v Speaker 1>Lab at Steven's Institute of Technology, my dad's alma mater.

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<v Speaker 1>By the way, she got a new book out about

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<v Speaker 1>all of this. It's entitled How to Raise a Citizen

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<v Speaker 1>and Why It's up to You to do It? And

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<v Speaker 1>she joins us right here in New York City. Professor Kormack,

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<v Speaker 1>Great to have you here with us. We feel like

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<v Speaker 1>there's so much we want to talk about, including book,

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<v Speaker 1>but we are very interested also because of your background

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<v Speaker 1>in hearing about your thoughts on today's presidential political environment

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<v Speaker 1>and that's all of that's also too been going on

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<v Speaker 1>in the past month. Is this, in your view, democracy

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<v Speaker 1>at work?

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<v Speaker 5>Yeah?

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<v Speaker 4>I really think it is.

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<v Speaker 5>You know, we have systems in place for it doesn't

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<v Speaker 5>go the way that everyone thinks it's going to go,

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<v Speaker 5>and it seems like it's it's working out in the

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<v Speaker 5>selection of a new candidate.

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<v Speaker 2>How do you what do you mean, how's it working

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<v Speaker 2>out in the selection of a new candidate?

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<v Speaker 5>Well, I mean when Biden stepped down and a lot

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<v Speaker 5>of people were like, oh, is there going to be

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<v Speaker 5>an open convention? How are we going to pick someone?

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<v Speaker 5>And really at that point it was already at the delegates,

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<v Speaker 5>and because of our primary system, it's like, well, they're

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<v Speaker 5>deciding it's going to be common one, and that's how

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<v Speaker 5>it's going to be.

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<v Speaker 1>You know, It's funny because it's just I've been listening

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<v Speaker 1>to a lot of podcasts political podcast Tim has too,

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<v Speaker 1>and we've all kind of we've been doing mega deep

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<v Speaker 1>dives just because of everything that's going on. And I

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<v Speaker 1>heard something that said, you know, we're still a young country,

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<v Speaker 1>and other countries have seen a lot of you know,

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<v Speaker 1>the kind of their ups and downs over hundreds and

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<v Speaker 1>hundreds of years or even longer, you know, And I guess,

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<v Speaker 1>you know, we asked the question, and we've seen the Democrats,

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<v Speaker 1>at least President Biden was for a long time while

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<v Speaker 1>he was still in the campaign trail as saying, you know,

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<v Speaker 1>we've got to protect democracy.

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<v Speaker 4>It's really important.

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<v Speaker 1>But democracy isn't necessarily working for everyone who feel like

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<v Speaker 1>they're struggling to put food on their table, make sure

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<v Speaker 1>there's a roof over their heads, just struggling to make

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<v Speaker 1>monthly payments. Is democracy, though, working for everyone?

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<v Speaker 4>I mean, that's a great question. Yeah, that's it's a

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<v Speaker 4>really good question. Isn't working for everyone? It works in

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<v Speaker 4>different ways.

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<v Speaker 5>I think the relevant comparison might be like what a

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<v Speaker 5>life would look like under an autocracy, and I think

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<v Speaker 5>it probably looks worse for people who are having a

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<v Speaker 5>bad time here. And so I think one of the

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<v Speaker 5>problems is we don't really know how to engage in

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<v Speaker 5>our democracy to necessarily make it work for us. And

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<v Speaker 5>that's kind of the research that I'm into and what

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<v Speaker 5>I'm all about.

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<v Speaker 2>That's interesting, Lindsay and Carrol, an interesting thing that you

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<v Speaker 2>brought up. I don't know if you can read my mind,

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<v Speaker 2>but as I was praying for this, I was looking

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<v Speaker 2>at some stats to try to set this up. The

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<v Speaker 2>American Bar Association. Lindsay says that less than one third

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<v Speaker 2>of millennials considered essential to live in a democracy.

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<v Speaker 5>Huh, why see that's what it's slight everywhere. Yeah, I

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<v Speaker 5>mean part of it is we don't have a tradition

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<v Speaker 5>of really talking about this in a very positive way,

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<v Speaker 5>and instead our children get messages from really early ages

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<v Speaker 5>that like, government is bad, it's annoying, it's negative. And

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<v Speaker 5>so it's not surprising to me that people think, like, uh,

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<v Speaker 5>it's not really worth fighting for or worth working towards.

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<v Speaker 5>But I don't think that's true. None of our millennials

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<v Speaker 5>know what it's like to live under an autocracy, and

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<v Speaker 5>I don't think they'd like it that much more.

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<v Speaker 1>So, how do you Yeah, so let's talk about that.

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<v Speaker 1>I mean, I have a twenty one year old and

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<v Speaker 1>has young kids. You know, my daughter will remind me

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<v Speaker 1>of how we've kind of messed up everything for her generation.

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<v Speaker 1>We talk a lot of politics. She is the daughter

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<v Speaker 1>of two journalists and folks who have been in the

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<v Speaker 1>news business, so it comes up a lot. I had

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<v Speaker 1>a family that we talked abound the dinner table about

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<v Speaker 1>a lot of stuff that was going on. But how

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<v Speaker 1>do you think we should be approaching it with a

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<v Speaker 1>younger generation And how early do you start on all

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<v Speaker 1>of this stuff?

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<v Speaker 4>Yeah?

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<v Speaker 5>So you well are lucky, because that's that's atypical. Most

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<v Speaker 5>of our families don't have those sorts of discussions. In

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<v Speaker 5>research that we did for the book, we found that

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<v Speaker 5>only twenty five percent of eighteen year olds report that

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<v Speaker 5>they ever had an intentional discussion about politics or government

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<v Speaker 5>with their parents. And my sort of stance on this

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<v Speaker 5>is you can't start it too early because kids are

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<v Speaker 5>just trying to make sense of the world around them.

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<v Speaker 5>They're soaking it up. So if they hear us talking,

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<v Speaker 5>you know, like saying like politicians are all bad or

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<v Speaker 5>they're negative, they're liars, they're cheaters, they're going to hear that.

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<v Speaker 5>And so it's not that not talking to them doesn't

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<v Speaker 5>give them a message. They sometimes just pick up the

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<v Speaker 5>negative pieces. So it's up to us to kind of

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<v Speaker 5>recast the narrative around this in front of them.

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<v Speaker 1>Okay, and I have a large family, a lot of

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<v Speaker 1>nieces and nephews. What do you do though, when a

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<v Speaker 1>twenty something year old or an early thirties like, yeah,

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<v Speaker 1>all the politicians they're really lousy. What's the right response?

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<v Speaker 1>How do you deal with that? Where they're kind of

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<v Speaker 1>so set in their view.

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<v Speaker 4>Yeah, so when I hear something like that.

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<v Speaker 5>I usually think that people are talking about federal politicians

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<v Speaker 5>and I try to change the conversation and think about

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<v Speaker 5>who their local and state representatives are. Yeah, because for

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<v Speaker 5>the most part, the people who do this work at

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<v Speaker 5>lower levels.

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<v Speaker 4>They're not bad. They're not out there to do ill.

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<v Speaker 5>They're really trying their best, and oftentimes they're not that

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<v Speaker 5>well supported financially. The jobs don't pay that well. People

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<v Speaker 5>yell at them, and so really I think most of

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<v Speaker 5>the people doing our politics are trying their best.

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<v Speaker 2>You know, we hear what you said. We hear a

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<v Speaker 2>lot from the mayors we talk to. We check in

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<v Speaker 2>with mayors around the country quite a bit, and oftentimes

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<v Speaker 2>they are Democrats or Republicans. They're required to have a

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<v Speaker 2>party affiliation, but regardless of what party there and they

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<v Speaker 2>don't really consider themselves members of a certain political party

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<v Speaker 2>because their job is to come up with solutions to

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<v Speaker 2>fixing potholes and making sure that things are running on

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<v Speaker 2>time in a small city or in a metropolitan area.

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<v Speaker 2>And it's an interesting issue because there is this separation

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<v Speaker 2>between the local level versus what happens on the federal level,

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<v Speaker 2>and so much air is taken out by national politics,

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<v Speaker 2>and that's sort of the vibe that people pick up on.

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<v Speaker 4>Yeah, that's absolutely true.

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<v Speaker 5>You know, we talk about federal politics more than anything else,

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<v Speaker 5>despite the fact that local politics is some of the

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<v Speaker 5>most consequential for our quality of life decisions.

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<v Speaker 1>You know, it's funny my husband and I, as I said,

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<v Speaker 1>he's a news guy too, and it just said, you know,

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<v Speaker 1>when he was kind of working his way up, you

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<v Speaker 1>always went to the town hall meetings and local politics.

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<v Speaker 1>And part of it is, you know, the demise of

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<v Speaker 1>local journalism, Like there's just no reporting on it anymore.

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<v Speaker 1>And so it's all kind of the same stuff. As

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<v Speaker 1>you said, a lot of it at the federal level,

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<v Speaker 1>but it's not really getting down to you know, what's

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<v Speaker 1>happening on a different level. I mean, it is why

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<v Speaker 1>I will be Tim's right, like we love talking to mayors,

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<v Speaker 1>We love talking to governors, Like what's going on in

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<v Speaker 1>your state, what's going on in your towns, it's really important.

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<v Speaker 1>All right. So you've got a five year old, how

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<v Speaker 1>do you teach them about government? How do you teach

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<v Speaker 1>them about civics?

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<v Speaker 5>Yeah, I think if you have a five year old,

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<v Speaker 5>the point is just to make sure that you are

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<v Speaker 5>comfortable doing it in front of them, have conversations around them,

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<v Speaker 5>have conversations in front of them. We don't need to

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<v Speaker 5>raise like little government trivia experts, you know. They don't

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<v Speaker 5>need to know all the presidents. They don't need to

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<v Speaker 5>know how.

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<v Speaker 4>Bill becomes a law at that age.

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<v Speaker 5>But it's about giving them the vocabulary, letting them hear

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<v Speaker 5>these words so they can kind of start to make

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<v Speaker 5>sense of it. For every other subject, we start kindergarten

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<v Speaker 5>with little concepts, little vocap and we build. But for government,

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<v Speaker 5>a lot of the times we wait until they're almost

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<v Speaker 5>eighteen and then say like, here, we're going to teach

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<v Speaker 5>you everything right now. And so it's just this idea

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<v Speaker 5>of scaffolding, like we do with every other skill and subject.

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<v Speaker 2>Okay, so parents can't always be the ones who are

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<v Speaker 2>doing this because they're not necessarily the ones who are

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<v Speaker 2>doing this. What's your view on how this should be

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<v Speaker 2>taught in schools?

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<v Speaker 5>So we do need to take an approach that prioritizes

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<v Speaker 5>things younger, like we do with everything else. Well, a

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<v Speaker 5>lot of the ways that we do this is very

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<v Speaker 5>idiosyncratic because states will say here's how we think we

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<v Speaker 5>should do it. But then it gets further devolved down

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<v Speaker 5>to school boards, or it gets devolved down to counties,

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<v Speaker 5>and so we don't have a unified curriculum. We never

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<v Speaker 5>are going to. But the thing that we can do

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<v Speaker 5>is start earlier and start building over time instead of

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<v Speaker 5>just backloading everything in that second semester of senior year

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<v Speaker 5>when kids really aren't that receptive to new information anyhow.

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<v Speaker 2>You know what's interesting, I'm getting some messages from a

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<v Speaker 2>member of our audience who says that the kids aren't

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<v Speaker 2>necessarily the problem. It's the parents who seem to be

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<v Speaker 2>the least educated, the most susceptible to misinformation online. We

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<v Speaker 2>only have thirty seconds left, then we're going to come. Actually,

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<v Speaker 2>we have a little more time with you.

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<v Speaker 4>Those grown up kids.

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<v Speaker 2>What do we do with that?

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<v Speaker 5>Yeah?

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<v Speaker 2>What do we do with those grown ups?

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<v Speaker 5>Yes? You know what. That's one of the reasons I

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<v Speaker 5>wrote this book in the way I did. The first

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<v Speaker 5>half is sort of like, here's the problem, here's what

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<v Speaker 5>our kids need to know, And the second half is

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<v Speaker 5>a primer because I understand that people who are parenting today,

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<v Speaker 5>we are products of systems that were deprioritizing civic education.

0:09:43.800 --> 0:09:45.320
<v Speaker 5>A lot of times we had parents who were not

0:09:45.360 --> 0:09:48.400
<v Speaker 5>comfortable talking about these topics, and so whoever's pointing that

0:09:48.440 --> 0:09:50.760
<v Speaker 5>out to you, I share that viewpoint with the parents.

0:09:50.800 --> 0:09:52.760
<v Speaker 5>We need a little bit more education here too, and

0:09:52.800 --> 0:09:54.760
<v Speaker 5>that's sort of what this effort is about.

0:09:55.440 --> 0:09:57.360
<v Speaker 1>How do you You know, it's interesting because I think

0:09:57.360 --> 0:10:02.240
<v Speaker 1>we've all had conversations with adults where it gets heated,

0:10:03.080 --> 0:10:08.439
<v Speaker 1>and you know, how do you how do you how

0:10:08.480 --> 0:10:10.320
<v Speaker 1>do you have that conversation like, well, wait a minute,

0:10:10.320 --> 0:10:12.600
<v Speaker 1>you don't really understand how this works, Like how do

0:10:12.640 --> 0:10:15.480
<v Speaker 1>you do that in an environment where there's just a

0:10:15.480 --> 0:10:17.440
<v Speaker 1>lot of anger and nobody wants to listen.

0:10:18.360 --> 0:10:19.480
<v Speaker 4>Yeah, I'll tell you the strategy.

0:10:19.520 --> 0:10:21.640
<v Speaker 5>I'm mostly talking with college students, like eighteen to twenty

0:10:21.760 --> 0:10:24.040
<v Speaker 5>year olds, and they get heated too. But instead of

0:10:24.080 --> 0:10:27.240
<v Speaker 5>asking someone what they think or why they believe that,

0:10:27.320 --> 0:10:29.040
<v Speaker 5>the first question I always like to ask is what

0:10:29.040 --> 0:10:31.080
<v Speaker 5>have you heard about that? Because I think when you

0:10:31.080 --> 0:10:33.760
<v Speaker 5>ask someone what have you heard, it removes them from

0:10:33.800 --> 0:10:36.920
<v Speaker 5>having the responsibility of defending or justifying a position. They

0:10:36.920 --> 0:10:38.880
<v Speaker 5>can say, oh, I heard this on Twitter, Oh I

0:10:38.920 --> 0:10:41.160
<v Speaker 5>heard this from my uncle or whatever it is, and

0:10:41.200 --> 0:10:42.920
<v Speaker 5>then you can kind of work with that instead of

0:10:42.960 --> 0:10:45.079
<v Speaker 5>putting it on them to defend whatever it is they're

0:10:45.120 --> 0:10:46.079
<v Speaker 5>trying to think.

0:10:46.120 --> 0:10:49.679
<v Speaker 1>Source matters, right, It's funny that, I mean, I find

0:10:49.800 --> 0:10:51.480
<v Speaker 1>myself doing that to a lot, Like where did you

0:10:51.520 --> 0:10:52.400
<v Speaker 1>hear that it does?

0:10:52.440 --> 0:10:56.320
<v Speaker 2>But I think one challenge now is the polarization that

0:10:56.360 --> 0:10:59.440
<v Speaker 2>we see on these online platforms. So you have, you know,

0:10:59.520 --> 0:11:03.080
<v Speaker 2>a for example, the Elon Musk, the owner of X,

0:11:03.800 --> 0:11:08.199
<v Speaker 2>has endorsed Donald Trump and he has hosted a conversation

0:11:08.320 --> 0:11:11.520
<v Speaker 2>with him on the platform, and he is in complete

0:11:11.559 --> 0:11:16.200
<v Speaker 2>control of that platform. Can you imagine the outrage that

0:11:16.240 --> 0:11:21.680
<v Speaker 2>you'd hear from folks out there if you saw that

0:11:21.960 --> 0:11:23.760
<v Speaker 2>on the flip side of like if it was more

0:11:23.760 --> 0:11:26.000
<v Speaker 2>open you mean, or no if it but if you

0:11:26.000 --> 0:11:29.360
<v Speaker 2>saw the opposite, like on Facebook or something like the

0:11:29.400 --> 0:11:30.120
<v Speaker 2>CEO of.

0:11:30.720 --> 0:11:34.440
<v Speaker 5>Oh, like if Zuckerberg sat down with Kamala Harris.

0:11:33.920 --> 0:11:36.520
<v Speaker 2>Yeah exclusively or endorses her.

0:11:37.240 --> 0:11:40.480
<v Speaker 5>Yeah. Yeah, you know what that might be like a

0:11:40.520 --> 0:11:43.720
<v Speaker 5>pulse on current politics because I imagine that that probably

0:11:43.760 --> 0:11:46.680
<v Speaker 5>would have more outreach than what happened with one point

0:11:46.720 --> 0:11:49.720
<v Speaker 5>two million people listening to Elon Musk and Donald Trump.

0:11:49.800 --> 0:11:52.000
<v Speaker 5>But yeah, it's hard to know, but you're probably right

0:11:52.040 --> 0:11:53.880
<v Speaker 5>your intuition there kind of goes with what I would

0:11:53.880 --> 0:11:54.240
<v Speaker 5>think too.

0:11:54.520 --> 0:11:56.600
<v Speaker 1>Let's get back to our guest. We're talking with Lindsay Kormack.

0:11:56.840 --> 0:11:59.800
<v Speaker 1>She's Associate Professor of Political Science, director of the Diplomacy

0:11:59.840 --> 0:12:04.199
<v Speaker 1>Life at Steven's Institute of Technology. Her new book, How

0:12:04.200 --> 0:12:06.640
<v Speaker 1>to Raise a Citizen and Why It's up to You

0:12:06.720 --> 0:12:08.520
<v Speaker 1>to Do It. She is still with us in New

0:12:08.600 --> 0:12:12.400
<v Speaker 1>York City. Hey, Lindsey, we mentioned that you have got

0:12:13.120 --> 0:12:17.280
<v Speaker 1>basically five rules or five skills that you think kids

0:12:17.320 --> 0:12:19.360
<v Speaker 1>ought to have. Can we go through them?

0:12:19.800 --> 0:12:20.040
<v Speaker 4>Sure?

0:12:20.080 --> 0:12:21.400
<v Speaker 5>Thing, This is the things that you need to go

0:12:21.440 --> 0:12:23.280
<v Speaker 5>over with your kids before they leave your house, so

0:12:23.320 --> 0:12:25.880
<v Speaker 5>before they're gone for college or whatever awaits them after.

0:12:26.440 --> 0:12:27.840
<v Speaker 5>The first one is they need to know how to

0:12:27.840 --> 0:12:30.280
<v Speaker 5>have hard conversations. And one of the reasons that I

0:12:30.280 --> 0:12:32.320
<v Speaker 5>know that that's true is as a college professor, I

0:12:32.320 --> 0:12:34.520
<v Speaker 5>have students who are afraid to upset anyone and they're

0:12:34.520 --> 0:12:37.440
<v Speaker 5>afraid to feel this discomfort themselves, and so that's like

0:12:37.480 --> 0:12:39.120
<v Speaker 5>a big skill that we need to make sure that

0:12:39.160 --> 0:12:41.640
<v Speaker 5>they have. The second one is parents need to make

0:12:41.640 --> 0:12:43.600
<v Speaker 5>sure their kids know how to register to vote, and

0:12:43.640 --> 0:12:45.840
<v Speaker 5>then they have to change it when they move. I

0:12:45.920 --> 0:12:48.000
<v Speaker 5>take our kids just to vote every year when we

0:12:48.040 --> 0:12:50.160
<v Speaker 5>have an election, and without fail, some of them are

0:12:50.160 --> 0:12:52.280
<v Speaker 5>turned away because they thought they were registered and they

0:12:52.280 --> 0:12:54.200
<v Speaker 5>don't realize that if you're registered in one county, it

0:12:54.200 --> 0:12:56.400
<v Speaker 5>doesn't transfer to the other. So make sure that they

0:12:56.480 --> 0:12:58.200
<v Speaker 5>understand how to do this and how they change that

0:12:58.240 --> 0:13:00.360
<v Speaker 5>when they move. The third one is they need to

0:13:00.440 --> 0:13:03.880
<v Speaker 5>understand the difference between primaries and general elections. All too

0:13:03.920 --> 0:13:06.240
<v Speaker 5>often we only focus on general elections when we talk

0:13:06.240 --> 0:13:08.120
<v Speaker 5>about this in schools, and so they really miss out

0:13:08.160 --> 0:13:10.240
<v Speaker 5>on this big piece of power, which is picking someone

0:13:10.240 --> 0:13:13.199
<v Speaker 5>in a primary election. The third thing is they need

0:13:13.200 --> 0:13:16.040
<v Speaker 5>to have an understanding of federalism because we so are

0:13:16.080 --> 0:13:19.320
<v Speaker 5>the fourth thing. Rather, we oftentimes focus on the federal level,

0:13:19.360 --> 0:13:21.920
<v Speaker 5>and then they don't realize that state and local governments

0:13:21.920 --> 0:13:24.800
<v Speaker 5>control so many things. When we think about big policy

0:13:24.840 --> 0:13:28.440
<v Speaker 5>issues like gun licensing, or healthcare or marijuana policy, things

0:13:28.480 --> 0:13:30.960
<v Speaker 5>that matter to young voters, this happens at the state

0:13:31.040 --> 0:13:33.040
<v Speaker 5>level for the most part, and so having an appreciation

0:13:33.080 --> 0:13:34.840
<v Speaker 5>of these different levels it's an important thing for them

0:13:34.880 --> 0:13:37.080
<v Speaker 5>to have. And the fifth one, and this is a

0:13:37.120 --> 0:13:38.840
<v Speaker 5>hard sell, but a lot of parents that I'm talking

0:13:38.840 --> 0:13:41.240
<v Speaker 5>to are pretty receptive to it. Your kids need to

0:13:41.280 --> 0:13:43.960
<v Speaker 5>have read the Constitution at least once before they leave

0:13:44.000 --> 0:13:46.640
<v Speaker 5>your house. It's our charter of government is the rules

0:13:46.679 --> 0:13:48.760
<v Speaker 5>of the game. And once they have an understanding of it,

0:13:48.800 --> 0:13:51.880
<v Speaker 5>they can't be as suayed with bad information or misinformation

0:13:51.920 --> 0:13:53.880
<v Speaker 5>because they'll really just have a rooted understanding of what

0:13:53.920 --> 0:13:54.960
<v Speaker 5>our system is all about.

0:13:55.160 --> 0:13:57.160
<v Speaker 1>And yes, you could start with Hamilton, like it'll get

0:13:57.200 --> 0:14:01.439
<v Speaker 1>you really excited like that. No, seriously, like I think

0:14:01.440 --> 0:14:04.160
<v Speaker 1>about something like that gets people interested, like, oh wait

0:14:04.160 --> 0:14:07.280
<v Speaker 1>a minute, this is really our history in a fun form.

0:14:07.320 --> 0:14:10.360
<v Speaker 1>But there's a lot of information there. What is it

0:14:10.400 --> 0:14:13.800
<v Speaker 1>that the kids that you teach eighteen to twenty one,

0:14:13.960 --> 0:14:16.840
<v Speaker 1>twenty two, you've got a young daughter too. But I

0:14:16.880 --> 0:14:19.640
<v Speaker 1>am curious about the questions that come up the most

0:14:20.800 --> 0:14:23.360
<v Speaker 1>when it comes to government politics. What do they want

0:14:23.400 --> 0:14:24.840
<v Speaker 1>to know? What is it that they're like, I don't

0:14:24.880 --> 0:14:27.000
<v Speaker 1>really understand this. I feel like when there's a piece

0:14:27.000 --> 0:14:30.720
<v Speaker 1>of legislation going through Congress, we all are kind of like, wait,

0:14:30.760 --> 0:14:32.880
<v Speaker 1>where are we in this process? And where are we

0:14:32.960 --> 0:14:35.080
<v Speaker 1>and what vote is this and how does this work?

0:14:35.120 --> 0:14:37.920
<v Speaker 1>Because there's still things, I think the mechanics that don't

0:14:37.920 --> 0:14:40.160
<v Speaker 1>always make sense or don't you know, there's just it

0:14:40.160 --> 0:14:42.640
<v Speaker 1>feels like nuances do it. But anyway, what do kids

0:14:42.680 --> 0:14:43.800
<v Speaker 1>ask you the most?

0:14:44.120 --> 0:14:45.360
<v Speaker 5>I mean, I wish I could tell you that there

0:14:45.400 --> 0:14:47.400
<v Speaker 5>was this one thing that they didn't understand, But truly

0:14:47.440 --> 0:14:50.000
<v Speaker 5>they're lost. Like their understanding of the courts is based

0:14:50.040 --> 0:14:52.960
<v Speaker 5>on like courtroom drama TV. Their understanding of the presidency

0:14:53.040 --> 0:14:55.440
<v Speaker 5>is sort of like whatever they've seen on Instagram or

0:14:55.480 --> 0:14:56.360
<v Speaker 5>TikTok that morning.

0:14:56.680 --> 0:14:57.800
<v Speaker 4>And when it comes to like how the.

0:14:57.840 --> 0:15:01.240
<v Speaker 5>Legislature works, it's really hard and so it's not something

0:15:01.240 --> 0:15:03.120
<v Speaker 5>where we can fix it overnight. But I do think

0:15:03.160 --> 0:15:04.800
<v Speaker 5>that if we start a little earlier, if we're a

0:15:04.840 --> 0:15:06.960
<v Speaker 5>little bit more intentional about it, and we recognize that

0:15:07.000 --> 0:15:08.960
<v Speaker 5>we have a role as families in writing this thing,

0:15:09.400 --> 0:15:11.360
<v Speaker 5>we can get to a lot of their questions because

0:15:11.360 --> 0:15:12.800
<v Speaker 5>they're kind of lost all over the place.

0:15:13.320 --> 0:15:16.320
<v Speaker 2>Do the social platforms have a role too? You mentioned

0:15:16.320 --> 0:15:19.760
<v Speaker 2>Instagram and TikTok just now, how do you see them?

0:15:20.720 --> 0:15:22.880
<v Speaker 5>I mean, they're already here. They're going to be here

0:15:22.920 --> 0:15:25.880
<v Speaker 5>for good, I think, and so we have to understand

0:15:25.880 --> 0:15:28.360
<v Speaker 5>what they are. I think something that parents can do is,

0:15:28.400 --> 0:15:29.680
<v Speaker 5>you know, we're not going to see the same things

0:15:29.680 --> 0:15:32.200
<v Speaker 5>as our kids. We're algorithmically fed different things. We all

0:15:32.240 --> 0:15:33.920
<v Speaker 5>know this, and something that I argue in my book

0:15:33.960 --> 0:15:36.320
<v Speaker 5>is that take a little time with each other and say, like,

0:15:36.320 --> 0:15:37.840
<v Speaker 5>what is it that you're seeing and make sure that

0:15:37.920 --> 0:15:40.040
<v Speaker 5>you kind of have an understanding of what their algorithm

0:15:40.080 --> 0:15:42.040
<v Speaker 5>feeds them, and let them see what you're getting fed

0:15:42.080 --> 0:15:44.040
<v Speaker 5>as well. That way, you can talk about things with

0:15:44.080 --> 0:15:47.240
<v Speaker 5>a better understanding of the background inputs that either side has.

0:15:48.320 --> 0:15:51.840
<v Speaker 1>You know, we talked about education, tim you asked earlier.

0:15:51.880 --> 0:15:54.800
<v Speaker 1>I think let's you some questions. But do we need

0:15:55.080 --> 0:15:58.680
<v Speaker 1>to have mandatory civics classes in school? Do we need

0:15:58.720 --> 0:16:00.720
<v Speaker 1>to have a Civics test before people vote?

0:16:02.160 --> 0:16:04.120
<v Speaker 5>I don't think a civics test is necessarily the way

0:16:04.120 --> 0:16:06.440
<v Speaker 5>to do it. The people who study like education, the

0:16:06.480 --> 0:16:08.920
<v Speaker 5>people who are experts in this field, always come back

0:16:08.960 --> 0:16:11.040
<v Speaker 5>to this idea of action civics, which is like giving

0:16:11.120 --> 0:16:13.000
<v Speaker 5>kids a project so that they can really see how

0:16:13.040 --> 0:16:15.000
<v Speaker 5>the process works. You know, they find like a playground

0:16:15.000 --> 0:16:17.120
<v Speaker 5>and say, oh, our basketball courts are kind of cracked

0:16:17.120 --> 0:16:18.920
<v Speaker 5>and they don't really work. How can we figure out

0:16:18.960 --> 0:16:21.040
<v Speaker 5>how to fix that? And that process is you know,

0:16:21.080 --> 0:16:23.840
<v Speaker 5>figuring out which branch of government is responsible, which level

0:16:23.880 --> 0:16:26.360
<v Speaker 5>is responsible, trying to figure out how you activate to

0:16:26.400 --> 0:16:28.240
<v Speaker 5>talk to those people, and even if you don't succeed

0:16:28.280 --> 0:16:30.640
<v Speaker 5>in getting better basketball courts, you understand a lot more

0:16:30.680 --> 0:16:32.920
<v Speaker 5>about the process. And so the people who study that

0:16:32.960 --> 0:16:34.560
<v Speaker 5>sort of like what can we do in schools, they

0:16:34.560 --> 0:16:37.640
<v Speaker 5>mostly point to action civics versus study for a test,

0:16:37.960 --> 0:16:39.880
<v Speaker 5>get ten answers right and go on with your life.

0:16:39.880 --> 0:16:44.960
<v Speaker 1>The January sixth riot on the Capitol was that, I mean,

0:16:45.520 --> 0:16:48.600
<v Speaker 1>how do you think about that in our political history?

0:16:49.280 --> 0:16:53.880
<v Speaker 1>And I'm just thinking, like, does it make you nervous?

0:16:53.920 --> 0:16:56.720
<v Speaker 1>Like those individuals did they think, well, this is democracy.

0:16:56.760 --> 0:17:00.240
<v Speaker 1>I believe the vote was stolen, you know, like, like,

0:17:00.280 --> 0:17:04.000
<v Speaker 1>how do you kind of teach around that that those

0:17:04.000 --> 0:17:10.360
<v Speaker 1>are citizens to people who may have thought, listen, you know,

0:17:10.560 --> 0:17:15.639
<v Speaker 1>we think things weren't democratic, and so we're protecting our state.

0:17:17.119 --> 0:17:18.840
<v Speaker 5>Yeah, that's a really hard one, and I talk about

0:17:18.880 --> 0:17:20.560
<v Speaker 5>this a little bit in the book. I think one

0:17:20.560 --> 0:17:22.720
<v Speaker 5>of the things that's challenging there is, my guess is

0:17:22.760 --> 0:17:24.880
<v Speaker 5>that people who are storming in the Capitol on January sixth,

0:17:24.920 --> 0:17:26.480
<v Speaker 5>I don't think many of them ever worked as poll

0:17:26.520 --> 0:17:28.720
<v Speaker 5>workers or election workers, because I think if you had,

0:17:29.040 --> 0:17:31.480
<v Speaker 5>you would understand how difficult it is to actually steal

0:17:31.520 --> 0:17:33.720
<v Speaker 5>an election, or how unlikely it is that enough people

0:17:33.760 --> 0:17:34.960
<v Speaker 5>would conspire to do that.

0:17:35.359 --> 0:17:36.160
<v Speaker 4>And so this is.

0:17:36.160 --> 0:17:37.679
<v Speaker 5>All sort of going back to the point of like,

0:17:37.720 --> 0:17:40.600
<v Speaker 5>if we understand our systems better, I think they operate

0:17:40.640 --> 0:17:43.040
<v Speaker 5>in better ways and we're less prone to things like

0:17:43.320 --> 0:17:46.159
<v Speaker 5>misinformation that can incite violence. So I think about January

0:17:46.200 --> 0:17:49.080
<v Speaker 5>six as an ultimate failure of political education more than

0:17:49.119 --> 0:17:49.760
<v Speaker 5>anything else.

0:17:50.040 --> 0:17:53.480
<v Speaker 2>But many Americans do still believe the twenty twenty election

0:17:53.600 --> 0:17:56.280
<v Speaker 2>was stolen and question and again, I'm going to the

0:17:56.320 --> 0:18:02.320
<v Speaker 2>American Bar Association. They write that they question the integrity

0:18:02.359 --> 0:18:07.080
<v Speaker 2>of our election systems, and you actually hear the current

0:18:07.119 --> 0:18:11.320
<v Speaker 2>front runner and Republican nominee still questioning the twenty twenty election.

0:18:12.119 --> 0:18:16.200
<v Speaker 2>How do you view those in positions of power making

0:18:16.200 --> 0:18:16.960
<v Speaker 2>comments like that.

0:18:18.520 --> 0:18:21.000
<v Speaker 5>So I think it's easier to give Donald Trump a

0:18:21.040 --> 0:18:24.720
<v Speaker 5>pass versus seasoned politicians a past, because seasoned politicians, you know,

0:18:24.720 --> 0:18:26.879
<v Speaker 5>they understand these systems, They've interacted with them for a

0:18:26.880 --> 0:18:29.440
<v Speaker 5>longer time. I think what Donald Trump kind of brings

0:18:29.520 --> 0:18:32.000
<v Speaker 5>is more of an infotainment style of things and not

0:18:32.119 --> 0:18:34.920
<v Speaker 5>a deep rooted understanding of how the processes that underlie

0:18:34.920 --> 0:18:37.679
<v Speaker 5>our systems work. I think it's kind of dangerous for

0:18:37.840 --> 0:18:40.960
<v Speaker 5>us to kind of take that as the teaching versus

0:18:41.000 --> 0:18:43.120
<v Speaker 5>going back to basics and saying, you know what, maybe

0:18:43.119 --> 0:18:45.000
<v Speaker 5>I'll go volunteer as a poll worker and go see

0:18:45.040 --> 0:18:46.720
<v Speaker 5>how that actually is. That would be the version of

0:18:46.760 --> 0:18:49.000
<v Speaker 5>doing like your own real research. And I think when

0:18:49.040 --> 0:18:51.520
<v Speaker 5>people do that, they realize it's very hard to steal

0:18:51.520 --> 0:18:53.399
<v Speaker 5>an election. It's very hard to do these sorts of

0:18:53.400 --> 0:18:55.440
<v Speaker 5>things because we have so much redundancy in place in

0:18:55.480 --> 0:18:56.159
<v Speaker 5>the US system.

0:18:56.200 --> 0:18:58.040
<v Speaker 1>Hey, lindsay one last question. We've got to wrap up,

0:18:58.080 --> 0:18:59.560
<v Speaker 1>but got about a minute. I think there are a

0:18:59.560 --> 0:19:01.920
<v Speaker 1>lot of folks there like, this isn't my government, it's

0:19:02.359 --> 0:19:05.479
<v Speaker 1>companies who do lobbying. You worked at a lobbyist in

0:19:05.640 --> 0:19:09.960
<v Speaker 1>Washington for about a year, and I just, you know, how,

0:19:10.119 --> 0:19:12.440
<v Speaker 1>how do they're like, why should I vote because it

0:19:12.480 --> 0:19:14.679
<v Speaker 1>doesn't really matter because my vote doesn't matter because it's

0:19:14.760 --> 0:19:17.000
<v Speaker 1>money that matters. What do you say to them? And again,

0:19:17.000 --> 0:19:18.720
<v Speaker 1>we just got about forty five seconds.

0:19:19.160 --> 0:19:21.359
<v Speaker 5>Yeah, I think that's a hard feeling, and I understand

0:19:21.359 --> 0:19:23.240
<v Speaker 5>it to think that you're inconsequential. The thing is you're

0:19:23.280 --> 0:19:26.520
<v Speaker 5>truly not at all the local and state levels federal government, sure,

0:19:26.600 --> 0:19:28.399
<v Speaker 5>You're a small piece of that, but when you're doing

0:19:28.440 --> 0:19:30.879
<v Speaker 5>things that are understanding local level, you are pivotal. We

0:19:30.920 --> 0:19:33.679
<v Speaker 5>have elections that are decided in fewer than hundreds of votes,

0:19:33.960 --> 0:19:35.920
<v Speaker 5>so I understand that concern.

0:19:35.960 --> 0:19:37.120
<v Speaker 4>I think you should put it away and.

0:19:37.040 --> 0:19:38.760
<v Speaker 5>Still exercise the rights that you have here.

0:19:39.200 --> 0:19:42.320
<v Speaker 1>All right, really cool stuff and very thoughtful as we are.

0:19:42.520 --> 0:19:45.200
<v Speaker 1>How many days are we away? Just over eighty eighty

0:19:45.280 --> 0:19:49.040
<v Speaker 1>days away and people can start voting come September. Lindsay,

0:19:49.160 --> 0:19:51.600
<v Speaker 1>thank you so much. I really enjoy this, Lindsay Cormac.

0:19:51.680 --> 0:19:54.720
<v Speaker 1>She is Associate Professor of Political Science and Director of

0:19:54.760 --> 0:19:58.080
<v Speaker 1>the Diplomacy Lab at Steven's Institute of Technology. Her new

0:19:58.119 --> 0:20:00.520
<v Speaker 1>book out, How to Raise a Citizen and Why It's

0:20:00.600 --> 0:20:03.800
<v Speaker 1>up to You to do It. That book is out

0:20:03.840 --> 0:20:04.840
<v Speaker 1>as we speak.

0:20:04.840 --> 0:20:05.760
<v Speaker 2>Eighty two days.

0:20:05.920 --> 0:20:06.640
<v Speaker 4>Eighty two days.

0:20:06.760 --> 0:20:09.320
<v Speaker 2>Yeah, according to the countdown clock at two seventy to

0:20:09.400 --> 0:20:13.960
<v Speaker 2>win dot com.

0:20:12.040 --> 0:20:15.439
<v Speaker 1>All right, yeah, no, I know, fast and furious. All right,

0:20:15.480 --> 0:20:20.120
<v Speaker 1>you're listening and watching Bloomberg BusinessWeek. One of the big headlines,

0:20:20.119 --> 0:20:22.320
<v Speaker 1>certainly here at Bloomberg we've been talking about it all day,

0:20:22.600 --> 0:20:24.840
<v Speaker 1>is a deal in the package food space today between

0:20:24.880 --> 0:20:26.760
<v Speaker 1>brands we all know We've been talking about it, whether

0:20:26.800 --> 0:20:31.280
<v Speaker 1>it's cheese, it's M and MS, Dove Bars, Pedigree, Original Greenies.

0:20:31.400 --> 0:20:35.439
<v Speaker 1>We mentioned earlier Mars Agreen to buy Kelennova, formerly of Kellogg's,

0:20:35.480 --> 0:20:39.119
<v Speaker 1>for nearly thirty six billion dollars. It included in debt

0:20:39.240 --> 0:20:41.800
<v Speaker 1>in that deal, and it really brought together two major

0:20:41.840 --> 0:20:44.760
<v Speaker 1>food companies and the biggest deal of the year. And

0:20:44.800 --> 0:20:46.399
<v Speaker 1>then we get a lot going on. We've got retail

0:20:46.400 --> 0:20:49.840
<v Speaker 1>sales tomorrow Walmart. So it got us thinking big time, Tim,

0:20:49.840 --> 0:20:50.640
<v Speaker 1>about the consumer.

0:20:50.840 --> 0:20:52.600
<v Speaker 2>There's a voice we turned to again and again on

0:20:52.640 --> 0:20:55.560
<v Speaker 2>the consumer and the retail environment. It's Eric Clark. He's

0:20:55.600 --> 0:20:59.840
<v Speaker 2>portfolio manager at Rational Dynamic Brands. FUN ticker hsut X,

0:21:00.359 --> 0:21:05.360
<v Speaker 2>sixty eight million dollar. FUN top holdings include Amazon Live Nation, Uber, Netflix, Apple, Chipotle,

0:21:05.480 --> 0:21:08.760
<v Speaker 2>and more. Eric joins us from San Diego. Eric, how

0:21:08.800 --> 0:21:09.040
<v Speaker 2>are you.

0:21:09.960 --> 0:21:11.040
<v Speaker 3>I'm great, Tim, how are you?

0:21:11.200 --> 0:21:14.600
<v Speaker 2>We're doing pretty well. Hey, we're gonna get to the

0:21:14.880 --> 0:21:16.480
<v Speaker 2>I want to get to big picture in just a sec.

0:21:16.600 --> 0:21:18.840
<v Speaker 2>But when we were on our planning call this morning

0:21:19.280 --> 0:21:21.440
<v Speaker 2>and our producer Paul Brannan told us that you were

0:21:21.520 --> 0:21:26.200
<v Speaker 2>adding to Chipotle after the news of Brian Nichol's departure.

0:21:26.280 --> 0:21:28.480
<v Speaker 2>We were both like, whoa wait a second, wait, what

0:21:28.760 --> 0:21:32.439
<v Speaker 2>give us your thesis here, given that we saw shares

0:21:32.480 --> 0:21:35.080
<v Speaker 2>fall significantly yesterday after this news was announced.

0:21:36.080 --> 0:21:40.040
<v Speaker 3>Yeah, sure, I mean, listen, Brian has done amazing job

0:21:40.119 --> 0:21:42.359
<v Speaker 3>with Chipotle, and he will do a lot of great

0:21:42.359 --> 0:21:45.080
<v Speaker 3>things at Starbucks. But the reality is he put a

0:21:45.080 --> 0:21:47.359
<v Speaker 3>big team in place, a big formula in place, and

0:21:47.400 --> 0:21:50.240
<v Speaker 3>it's working. And he's a builder and a fixer, and

0:21:50.320 --> 0:21:54.119
<v Speaker 3>you know, psychologically, builders and fixers get bored when things

0:21:54.160 --> 0:21:56.359
<v Speaker 3>are kind of stable, and I think that's where we

0:21:56.400 --> 0:22:00.480
<v Speaker 3>are with Chipotle. They are appealing to lots of demograms, epics,

0:22:00.880 --> 0:22:05.119
<v Speaker 3>traffic is strong, digital was amazing, They've removed all the

0:22:05.160 --> 0:22:08.000
<v Speaker 3>friction from acting, and it's just one of those restaurant

0:22:08.080 --> 0:22:11.600
<v Speaker 3>fast casual brands. It's just very, very popular. And you know,

0:22:11.640 --> 0:22:14.960
<v Speaker 3>for him it's probably less interesting. Then you know, let's

0:22:15.000 --> 0:22:16.760
<v Speaker 3>what can we do to where can we go to

0:22:16.760 --> 0:22:19.199
<v Speaker 3>fix something else? And I'm sure you know the compensation

0:22:19.280 --> 0:22:22.000
<v Speaker 3>at Starbucks was amazing, so the deal was probably too

0:22:22.040 --> 0:22:24.840
<v Speaker 3>good to pack. I do not worry about Chipole at all.

0:22:25.440 --> 0:22:29.960
<v Speaker 1>That's interesting, that's interesting. So having said that, but did

0:22:29.960 --> 0:22:31.000
<v Speaker 1>you buy any Starbucks?

0:22:32.359 --> 0:22:34.120
<v Speaker 3>I didn't you know, it's funny, and we were looking

0:22:34.200 --> 0:22:36.560
<v Speaker 3>at Starbucks as well as you know, I like to

0:22:36.560 --> 0:22:40.680
<v Speaker 3>call them diamonds in the dumpster, and you have you know, Starbucks, Nike, Lululemon,

0:22:41.680 --> 0:22:44.840
<v Speaker 3>sde Lauder. There's a bunch of really amazing brands that

0:22:44.880 --> 0:22:47.760
<v Speaker 3>are just down on their luck. So we ended up

0:22:47.800 --> 0:22:50.560
<v Speaker 3>adding Nike and Lulu back. And we haven't known those

0:22:50.560 --> 0:22:53.600
<v Speaker 3>for a while, thank heavens, because they're down over fifty percent.

0:22:53.680 --> 0:22:55.680
<v Speaker 3>But I think it's a great time to start picking

0:22:55.760 --> 0:22:58.480
<v Speaker 3>up those things. But Starbucks, I certainly wasn't going to

0:22:58.560 --> 0:23:01.600
<v Speaker 3>chase it after twenty twenty five per because I feel like,

0:23:02.000 --> 0:23:04.119
<v Speaker 3>you know, that's the first two years of benefit of

0:23:04.160 --> 0:23:07.160
<v Speaker 3>having Brian come in and assess everything. It gets harder

0:23:07.160 --> 0:23:07.520
<v Speaker 3>from here.

0:23:07.560 --> 0:23:10.959
<v Speaker 2>I think, okay, so let's move on a little bit

0:23:10.960 --> 0:23:13.640
<v Speaker 2>big picture stuff, and then we're going to go smaller

0:23:13.680 --> 0:23:17.280
<v Speaker 2>picture once again and talk about more individual names. Strength

0:23:17.320 --> 0:23:23.639
<v Speaker 2>to the consumer, strong, weak, recession coming? What say you?

0:23:25.320 --> 0:23:29.879
<v Speaker 3>I think without the recession? I think, yes, the consumer.

0:23:30.119 --> 0:23:32.439
<v Speaker 3>I just wrote a report a little note that said,

0:23:33.119 --> 0:23:37.240
<v Speaker 3>is the consumer tapped out or opting out? And it's

0:23:37.280 --> 0:23:41.439
<v Speaker 3>the latter. The consumer has been getting overcharged all of

0:23:41.520 --> 0:23:44.680
<v Speaker 3>us for two plus years. Eventually we get tired of

0:23:44.720 --> 0:23:48.200
<v Speaker 3>it and we push back on brands, and so consumers

0:23:48.240 --> 0:23:51.399
<v Speaker 3>are basically saying, I am going to say no to

0:23:51.480 --> 0:23:53.960
<v Speaker 3>that at least for now until you write size prices.

0:23:54.680 --> 0:23:57.080
<v Speaker 3>I really love that concert, so I'm going to overspend

0:23:57.119 --> 0:23:59.360
<v Speaker 3>on that one. Or I want to go on vacation

0:23:59.440 --> 0:24:01.280
<v Speaker 3>and I know I'm going to have to overspend there,

0:24:01.560 --> 0:24:03.280
<v Speaker 3>so I'm not going to buy some goods. And so

0:24:03.480 --> 0:24:07.359
<v Speaker 3>I see this kind of almost seasonal consumer spending that's

0:24:07.400 --> 0:24:10.040
<v Speaker 3>happening because prices are just too high everywhere and I

0:24:10.040 --> 0:24:13.399
<v Speaker 3>don't buy the inflation is almost back to two percent.

0:24:13.440 --> 0:24:15.720
<v Speaker 3>I don't see it anywhere in the real economy.

0:24:16.440 --> 0:24:18.920
<v Speaker 1>Hey, one thing that's a big holding in your portfolio,

0:24:19.040 --> 0:24:22.280
<v Speaker 1>and I believe has for a while is Alphabet. And

0:24:22.400 --> 0:24:26.200
<v Speaker 1>we talked earlier about the Department of Justice Eric Mulling

0:24:26.200 --> 0:24:31.560
<v Speaker 1>an idea of maybe breaking up Google after a landmark

0:24:31.800 --> 0:24:36.640
<v Speaker 1>antitrust win. Does that depending on how this plays out,

0:24:37.119 --> 0:24:40.440
<v Speaker 1>will that impact your investment thesis for Alphabet?

0:24:42.000 --> 0:24:44.480
<v Speaker 3>You know all of these big techts, and I'll put

0:24:44.520 --> 0:24:50.480
<v Speaker 3>Google and Amazon in particular, if there were any type

0:24:50.480 --> 0:24:52.720
<v Speaker 3>of real breakup, and I don't think the odds of

0:24:52.720 --> 0:24:54.919
<v Speaker 3>that are very high, and they would take multiple years.

0:24:55.200 --> 0:24:58.439
<v Speaker 3>That would be an unlocking of value because there's so

0:24:58.520 --> 0:25:01.880
<v Speaker 3>many great brands inside of these great companies that if

0:25:01.880 --> 0:25:05.000
<v Speaker 3>you set them free on a standalone basis, the sum

0:25:05.000 --> 0:25:07.000
<v Speaker 3>of the parts is much higher than the current market

0:25:07.000 --> 0:25:10.159
<v Speaker 3>cap for Google or Amazon. Amazon in particular, which is

0:25:10.160 --> 0:25:12.119
<v Speaker 3>why it's the biggest holding. But I think it's a

0:25:12.160 --> 0:25:14.440
<v Speaker 3>lot of noise, and certainly it could it could keep

0:25:14.440 --> 0:25:16.720
<v Speaker 3>people away because they don't want to deal with headline risk.

0:25:16.760 --> 0:25:19.840
<v Speaker 3>But I don't think it's anything more than just typical

0:25:19.920 --> 0:25:22.480
<v Speaker 3>DJ stuff and you know, just trying to make waves

0:25:22.480 --> 0:25:24.400
<v Speaker 3>about big companies that are dominant.

0:25:24.640 --> 0:25:27.640
<v Speaker 1>There's a well known brand that just reported earnings, Cisco,

0:25:27.920 --> 0:25:30.480
<v Speaker 1>that is also trying to write it ship and we

0:25:30.600 --> 0:25:32.960
<v Speaker 1>just broke down the numbers and we did see the

0:25:32.960 --> 0:25:36.280
<v Speaker 1>stock actually pop in the aftermarket. How do you think

0:25:36.320 --> 0:25:40.120
<v Speaker 1>about a brand like that? Is it just something when

0:25:40.160 --> 0:25:43.280
<v Speaker 1>you look at the tech universe you're not interested or

0:25:43.320 --> 0:25:44.879
<v Speaker 1>do you see some value there?

0:25:45.840 --> 0:25:49.080
<v Speaker 3>You know, we don't follow Cisco as much because it's

0:25:49.119 --> 0:25:54.760
<v Speaker 3>not kind of direct consumer within our portfolio, you know, Amazon, Apple,

0:25:55.240 --> 0:25:58.080
<v Speaker 3>and then we have some Google and Meta. We're more

0:25:58.080 --> 0:26:00.800
<v Speaker 3>in the communication services, you know, with the Netflix or

0:26:00.840 --> 0:26:03.280
<v Speaker 3>a Live Nation or things like that. So we have

0:26:03.440 --> 0:26:06.560
<v Speaker 3>owned some direct tech, but Cisco isn't isn't part of that.

0:26:06.560 --> 0:26:09.680
<v Speaker 1>That's true because it's not as much consumer consumer focus there.

0:26:09.800 --> 0:26:13.200
<v Speaker 2>Hey, Eric, I look through your holdings in the Rational

0:26:13.400 --> 0:26:17.040
<v Speaker 2>Dynamic Brands Fund and I see a company, a couple

0:26:17.080 --> 0:26:19.440
<v Speaker 2>companies or segment. I should say that it's like kind

0:26:19.440 --> 0:26:21.439
<v Speaker 2>of that old is the is it Sesame Street? One

0:26:21.440 --> 0:26:23.800
<v Speaker 2>of these things does not belong. It's like one of

0:26:23.800 --> 0:26:25.840
<v Speaker 2>these things. Yeah, one of these things is not like

0:26:25.920 --> 0:26:28.040
<v Speaker 2>the other. Gave all these consumer facing companies, and then

0:26:28.040 --> 0:26:32.119
<v Speaker 2>you have private equity Blackstone, KKR, Apollo. You've added to

0:26:32.200 --> 0:26:35.760
<v Speaker 2>Apollo recently on the dip. Why is private equity or

0:26:35.840 --> 0:26:38.800
<v Speaker 2>I guess alts as we they want to be called. Now,

0:26:39.600 --> 0:26:40.600
<v Speaker 2>why is it appealing to you?

0:26:41.560 --> 0:26:41.840
<v Speaker 5>Yeah?

0:26:41.880 --> 0:26:43.680
<v Speaker 3>You know, it's a major theme in the high net

0:26:43.720 --> 0:26:47.000
<v Speaker 3>worth area, money migrating on the margin from public equities

0:26:47.040 --> 0:26:50.720
<v Speaker 3>to and public fixed income over to privates, and very

0:26:50.720 --> 0:26:53.400
<v Speaker 3>few people have any exposure to the private market, which

0:26:53.440 --> 0:26:55.879
<v Speaker 3>is eighty percent of the economy. So it's just that

0:26:55.960 --> 0:26:59.280
<v Speaker 3>little area that I think it shields people from volatility.

0:26:59.520 --> 0:27:02.119
<v Speaker 3>You get out to some of the smartest investors on

0:27:02.160 --> 0:27:05.320
<v Speaker 3>the planet. They can see around corners, they have great

0:27:05.359 --> 0:27:09.000
<v Speaker 3>information kind of advantages, and they've been all of them

0:27:09.000 --> 0:27:12.080
<v Speaker 3>since they're IPOs. They've been monster out performers. And they

0:27:12.119 --> 0:27:14.240
<v Speaker 3>all pay a dividend and they grow that dividend. So

0:27:14.840 --> 0:27:16.880
<v Speaker 3>you know, sometimes they can be a little bit vollable,

0:27:16.920 --> 0:27:20.560
<v Speaker 3>but they are terrific companies, terrific stocks, and they are

0:27:20.720 --> 0:27:24.160
<v Speaker 3>really under owned still even though two of the three

0:27:24.200 --> 0:27:26.240
<v Speaker 3>are part of the S and P and Apollo. I'm

0:27:26.280 --> 0:27:28.440
<v Speaker 3>sure in the next twelve months or less would be

0:27:28.480 --> 0:27:29.239
<v Speaker 3>part of the Oh.

0:27:29.400 --> 0:27:33.680
<v Speaker 2>Interesting, I like a prediction. I like a prediction. Absolutely,

0:27:33.760 --> 0:27:36.440
<v Speaker 2>we'll come back to that in the next twelve months. Yeah, exactly,

0:27:36.440 --> 0:27:37.320
<v Speaker 2>So you're right about that.

0:27:37.440 --> 0:27:40.200
<v Speaker 1>Eric, talk to you about it. Hey, listen, Eric, take care.

0:27:40.600 --> 0:27:42.840
<v Speaker 1>Enjoy the rest of the summer. Eric Clark, portfolio manager

0:27:42.880 --> 0:27:44.640
<v Speaker 1>at Rational Dynamic Brands Fund.

0:27:44.640 --> 0:27:47.399
<v Speaker 2>As we mentioned, it's always summer in San Diego. You

0:27:47.400 --> 0:27:49.439
<v Speaker 2>don't have to say enjoy the summer to somebody who

0:27:49.440 --> 0:27:53.200
<v Speaker 2>lives in San Diego, like three sixty five. It's beautiful there.

0:27:53.320 --> 0:27:55.679
<v Speaker 1>It's a state of mind, it really is.

0:27:56.520 --> 0:27:57.120
<v Speaker 4>You're to date.

0:27:57.160 --> 0:28:00.359
<v Speaker 1>His fund is up to shy of nine percent according

0:28:00.400 --> 0:28:04.680
<v Speaker 1>to Blomberg Rankings, putting it in the seventeenth percentile. One year,

0:28:04.720 --> 0:28:06.359
<v Speaker 1>it's in the seventy fifth percentile.