The Prof G Pod with Scott Galloway
00:53:42 · Scott Galloway
[00:53:42] S1: So just as a means of walking down memory lane and, know, when I when I was a kid, right out of college, I went to Morgan Stanley, I made $35,000 and I got a bonus I think at 15, so call it 50. And we all put that 15 on our credit cards and paid it off with our bonus. Moved to New York. I had a one bedroom on 73rd. It was $1,900. There were three of us in there. I slept in the entryway. There was a difference though. A lot of my friends were in different industries, the arts. I had friends who were in Broadway, musicians. And the disparity between my pay as an investment banker and their pay was much narrower. I made more money, but not a lot more. It was like we all kind of were in a certain band. And I feel like those bands to your earlier point, as you said, dramatically changed. The really scary one is after graduate school, I graduated from the High School of Business at the age of 27. And I got several offers in consulting that I turned down to start my own business that compensation was around a $100,000. And I bought a house borrowing money from my girlfriend's parents for $285,000 So approximately three times my salary. And now the Haas School of Business, the average salary is $200,000 compensation, which is exceptional compensation. These kids are, going into, you know, they're considered elite young human capital. But the average housing price is 2,100,000. And that's as of last year. I wouldn't be surprised if it rockets to 3,000,000 given all the AI boom that's about taking place. So it's gonna be somewhere between ten and fifteen times. There's just no getting around it. This really is, and the word is overused, it's a crisis. And my sense is all of the things that, or many of the solutions that Aziz and Kyla recommended, it feels like we need to do all of them all at once in different areas and have just a series of pilot programs to see what works and see what really moves the needle. But I don't think, everybody talks about how great it is to rent and it's not as good an investment. I just think it's an another emotional hit on the psyche of young people. That they're not able to do what their parents did. They're not able to invest in their home and make it wonderful because they don't own it. They're less likely to start thinking about procreating. They're less likely to feel they've engaged in the American dream.
00:56:12 · Scott Galloway, Kyla Scanlon
And yet again, it's another transfer of not only wealth, but psychological well-being from young to old. All right. That's my TED Talk. Aziz Sundarji is the author of The Home Economic Substack. He previously spent fifteen years in research Barclays Investment Bank and later worked as a data journalist at The Wall Street Journal. Kyla Scanlon is an economic commentator and also haunts my Instagram feed. [00:56:38] S2: You are everywhere, Kyla. Yes. Yeah. Go to are everywhere. [00:56:42] S1: The algorithms have have have determined that I absolutely love your stuff, which is true. And she's a creator of Kyla... Or the creator of Kyla's newsletter on Substack. Her debut book, In This Economy, question mark, How Money and Markets Really Work, was a New York Times bestseller. Her new podcast, best of luck with Kyla Scanlon, is out now. Aziz and Kyla, thanks so much for joining us on this important topic. Thanks, Scott. This episode was produced by Jennifer Sanchez, Laura Janier, and Asher Schwartz. Our video editor is Bianca Rosario Ramirez. Kami Riek is our social producer. Drew Burrows is our technical director, and Catherine Dillon is our executive producer. Thanks for listening to the Prophecy Pod from Prophet G Media.
00:57:38 · Scott Galloway
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