Relentless
00:49:01 · Sam D'Amico, Ty Morse
And they've got their own, you know, they've got their own hyper powered companies doing similar stuff as well. So I think that's that's frankly how you end up in these situations. [00:49:10] S2: And, Aaron, Apple is like a $3,000,000,000,000 company, and yet they manufacture virtually nothing in The United States. And Tim Cook has famously said that the skills and all the supply chain required to build production at that scale is all in China, and it doesn't exist in The United States. How do we basically reverse that trend?
00:49:10 · Ty Morse, Aaron Slodov, Sam D'Amico
[00:49:10] S2: And, Aaron, Apple is like a $3,000,000,000,000 company, and yet they manufacture virtually nothing in The United States. And Tim Cook has famously said that the skills and all the supply chain required to build production at that scale is all in China, and it doesn't exist in The United States. How do we basically reverse that trend? [00:49:29] S1: He has a really famous clip that I think is... It's gotta be close to at least, like, 12 or 13 years old now at this point where he's like, I can't even fill a conference room full of tooling engineers, you know, in The United States, and I can fill a football field full of them in China. So this is it's very representative of kind of just the collective of, like, tacit knowledge. Right? The people that actually understand how to do the job, the process, all of it. And people have been sounding the kind of the re industrialized alarm for forty years since we started doing this, you know, and it's not an easy trend to reverse, but it... It's something that's gonna take decades to to accomplish. This is where I think this ultimately just comes down to how serious we we really treat, the matter, you know, and it's being able to absorb a lot of this kind of demand. Right? Like manufacturing is very inflexible ultimately, when you come down to... I'm trying... Like, from the very lowest level, from refining, you know, raw material and pumping it into [00:50:46] S0: Illegal in California.
00:50:47 · Aaron Slodov
[00:50:47] S1: Yeah. Another factory that forms it into some, you know, other raw thing that can be, you know, pumped into a component stack or whatever it is. So it's... There's there's really, in my brain, in my estimation, these kind of like feedback loops of learning all the processes, right, and capturing that knowledge. It's there's such an immense amount of opportunity there. It seems very insurmountable because there are just... There are literally thousands of industrial processes that you could do something like this with. We have to stack rank them. Right? And so the idea of, like, reindustrialization is if you wanna stack rank, that's fine, but there's still an ocean of things just sitting here, right, that like that we could go through the same set of motions with. And, I mean, if we don't do this now, what does the future look like? So it kind of... Guess, in a lot of ways, I live very much in the future. Right? Because, it's obvious that we should be doing this stuff up and down, you know, the entire industrial base. And if we don't do this, what does that mean? Are we going to be relegated to, you know, some kind of dependency model, that allows China to basically, you know, take power, because they have all this industrial might. And this is where it goes back to, like, how we ultimately stack rank these things, what the timelines look like, where the capital is gonna come from. And so if you go back to the demand side model, right, this is why it's really hard to do this on a like shop by shop basis. And this is why you're seeing, you know, like a BYD city being built. I don't know if that's actually real or not, but
00:52:53 · Sam D'Amico, Aaron Slodov
[00:52:53] S0: It is. [00:52:54] S1: Yeah. That, in my brain, is just like a level of seriousness that we need to step up to. Right? And, yeah, it's it's a huge systemic problem across regulation, across capital formation, and labor. Right? Because another piece of the systemic issue too is, you know, everything is a jobs program apparently. And, you know, unions are... They could be a force for good. And I think that, you know, we've seen blunder after blunder of attempting to, you know, stand up capacity, get things built here, and they're getting built, but we're we're learning the hard way.
00:53:38 · Sam D'Amico
[00:53:38] S0: There's actually a highlight on the union side in California. There's only two... There's... I think there's a split there's a split brand in California on the union side because the carpenters unions have actually really embraced the YIMBY movement because realizing that this is additive versus like, okay, we don't really care about growing our membership. We're just gonna make sure that we can we can rent seek as much as possible. Obviously, that's bad, but the Carpenters Union is like, no, this is great. We we... Yeah, we can build more houses and get paid more money. And so the incentive alignment there with like, you can see with California Forever, they actually got the unions on board with it, which is crazy and an awesome achievement. You can see that like the the YIMBY, California YIMBY managed to align with enough of the union interests. Even though, like, DSA and some of the, the... There's kind of the left NIMBY movement, basically, because I I I know why that's the case, it's it's interesting, but it's basically because, like, the NIMBYs the NIMBYs to win political power become whatever political party can win in in their jurisdiction. So in in San Francisco, they're leftists, and in in Florida, they're rightists. And so it's it's kind of... It's got... You'll see you'll see you'll see the chameleon of the nimby thing because that's a separate axis, I would argue, from the left right political axis. But you can see that, like, okay, if let's call it California... The anecdote of California forever, but also the YIMBY movement had figured out how to make... Collaborate with the unions in a positive way. Then the flip side is like, okay, then there's the, like, Berkeley academics using SEIU to push all the billionaires to Miami, thing that's going on. And that's where I think we're gonna, like, we're gonna run into, again, the split brain situation of, like... I think we have to make sure that, like, whatever movement here has to be kind of pro labor, but it doesn't necessarily have to... Like, it has to be pro labor in an incentive aligned way, basically.
00:55:25 · Aaron Slodov
[00:55:25] S1: Yeah. I mean, to be honest, if you go back and do a re listen of, like, JD's speech at the a sixteen summit, like, last year, it was basically that. It's it's basically, like, we need to we need to uplift and dignify people's work again. And there's there's a huge argument to be made that's not zero sum. Right? That, like, we don't have to be working in, you know, fifties or eighties factories anymore. Like, it's not this terrible, awful thing where you get paid less than an Uber driver, you know, like, don't have to You be