The Prof G Pod with Scott Galloway
00:12:43 · George Hahn, S0, S2
[00:12:43] S3: We'll be right back. [00:12:51] S0: Support for the show comes from USA Facts. I've interviewed countless politicians, and if there's one thing we all find disconcerting is when they butcher the facts with some biased half truth. Give us a break already. So when I had the chance to debate conservative podcaster Ben Shapiro, our natural response was bring it on. Why? Because it was sponsored by USA Facts, and each debate segment started with a presentation of government data and facts, employment, government spending, income data, housing, and more. The topic, the American dream. Is it still within reach? We argued. We found some common ground. We actually debated, and there were no personal attacks. Watch the full debate on The USA Facts YouTube channel. We think you'll find it unlike any other debate. That is entertaining and informative. We hope you check it out. [00:13:42] S2: This episode is brought to you by Indeed. You're ready to level up your business, but the pressure to find the right person to make that happen is intense. Indeed sponsored jobs can help carry the load. It boosts your job post to help it reach quality talent fast. Cut through the chaos with Indeed sponsored jobs. Get a $75 sponsored job credit at indeed.com/podcast. Terms and conditions apply. Hiring now? Then this is a job for Indeed sponsored jobs.
00:14:13 · S0
[00:14:13] S0: Support for the show comes from SoFi. Here's the thing. Most traditional banks pay almost nothing in interest, so your money ends up just sitting there twiddling its thumbs doing nothing. And if your money's doing nothing, it's not doing its job. You work hard for every dollar, so why not put those dollars to work for you? That's where SoFi comes in. With the everything app for smarter money, with SoFi checking and savings, you can easily track your spending and save towards your goals while earning nine times the national average savings rate. You'll get paid up to two days early with direct deposit, and you can access additional FDIC insurance up to 3,000,000 on your deposits through a network of participating banks. You'll pay no account or overdraft fees, and you can also earn a cash bonus when you sign up with eligible direct deposit. You also can organize your savings into vaults for the goals that matter most. Small decisions like this can create big momentum over time. You can open your SoFi checking and savings account today. Head to sofi.com/profgbank to get started. That's sofi.com/profgbank. SoFi checking and savings is offered through SoFi Bank NA member FDIC.
00:15:24 · George Hahn
[00:15:24] S3: Welcome back. Scott's entrance versus incumbents argument has a very obvious test case in housing. We talk a lot about how housing is one of the clearest indicators of the separation between earners versus owners in our economy. On Tuesday's bonus episode of Conversations, Aziz Sunderji, author of The Home Economics Substack, and Kyla Scanlon, economic commentator and host of the new podcast, Best of Luck with Kyla Scanlon, explained to Scott where young people are getting pushed out the most.
00:16:02 · Aziz Sunderji
[00:16:02] S7: Yeah. I mean, I think America does have a really complicated relationship with housing because, you know, Derek Thompson has talked about this before, housing has to be both a speculative asset and a place to live. And I think for a lot of people, a lot of their wealth is wrapped up in the house. So they're gonna push back against anything that they think can threaten that. And increasingly, that's turning towards the stock market. Stock market wealth is becoming more and more of people's total net worth. But I think that for younger folks, like, they look at the refusal to build, and when they look at older folks, you know, just saying, like, no. You can't build near us. Like, we don't want this housing near us. I think it can feel like everything is sort of working against you because what you've been told from... Since you were little is that in order to be a successful person, in order to reach this American dream, you have to buy a house. And, you know, I'm 29, and I don't I don't know when I'm gonna be able to buy a house. And I I know a lot of people in this situation, and more and more people are starting to lean on their parents for financing a home or leaning on some sort of outside help. And I think that's the really hard part is that housing is the foundation of the economic ladder. And if people feel like they can't climb up a bit, they're just gonna be like, well, you know, maybe it doesn't make sense for me to work really hard at my job, and it doesn't make sense for me to get married. It doesn't make sense for me to build this economic future because I don't feel stable. And I think for older folks, they were able to benefit from the post World War two boom. You know? I feel like there was just so much policy that worked in their favor, and that's why people over the age of 55 have so much wealth in The United States.
00:17:42 · George Hahn
[00:17:42] S3: Aziz spent fifteen years in research at Barclays and later worked as a data journalist at The Wall Street Journal. He wanted to put the current crisis in perspective, so he read the group an article from The New York Times.
00:17:56 · Aziz Sunderji
[00:17:56] S8: The article is called High Rents. This is the season of the year when the people of New York break out in loud complaints about the rise of rents, the scarcity of houses, and the impossibility of making both ends meet while landlords demand such exorbitant rates for their tenements. So that last word might give you a clue about when this is from. This is from 1856. So aside from the word tenements, you could kind of just copy and paste that onto The New York Times today, and it would read pretty accurately. So my point is that this is like... This is a big this is a big crisis. It's happening around the world, especially in these big productive cities where the economic opportunities are, and it's been happening for a long time. So I think we should stay very humble about our ability to influence this. I think if I could choose one thing that is driving it that we don't talk about enough, it's income inequality. You know, the fact is that you have some people like Scott, as you were working at a bank, and when I moved to New York, was also working at an investment bank. They come to the city and they earn these high salaries, and they're competing with everybody else, teachers and, you know, all kinds of people who don't earn high incomes for the same parcels of land. Housing is a positional good. We're all competing for it. And I think inequality is a huge engine explaining the fact that we've been in a housing crisis around the world and clearly for, like, hundreds of years. So I... You know, it's... I I don't know if there's any, like, silver bullet for it.