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What can someone do when they can't buy
assets? That's the real question.
Everybody that can save $10 can buy an
asset. People don't understand them. And
do that over time so it compounds.
Correct. There's the famous story of the
janitor who died with like $2 million to
his name because he just invested in
like the S&P 500. Just take some any
amount that you can possibly bear and
put it into the S&P 500. just is a super
dumb way over 20 or 30 years that's
going to stack. I don't know that
there's ever been a 30-year stretch in
the last like 120 years where you
wouldn't have been up. Almost no one on
a long enough timeline beats the S&P
500. It's just put your money in and
chill. The problem is people want the
money right now. Got it. and to get that
$10 to put in, build your skills so that
you go to work, get a job, and spend
less than you make, and then take some
of that delta, and put it into an
investment. I'm not saying that it's
easy, you're going to have to tighten
your belt. I'm just saying as broken as
the system is, when you start saying
things like, "Well, what about the
people that can't afford to put money
into the system?" It's like there are
people that can't for sure, but most of
them are going to have gotten themselves
in over their head in some way. Drugs,
kids way too early.
Yeah. Although you now for sure could,
but I get it. And even that, like most
people will be able to overcome that.
But I'm just saying that one, I get it's
very taxing, especially if you're a
single parent. So there are ways to do
it, but most of those ways are pretty
avoidable for all but a small number of
people. Mental illness is devastating
and I don't wish it on any quite
literally. Mental illness I don't wish
on anybody. There are some things that I
say I don't wish on people, but secretly
I've got a handful of people. I'm
wishing it on them. Uh but not mental
illness. What is the best hard skill you
think that makes you money by providing
services or getting a job that has a lot
of room for growth? I have a degree in
economics and finance. The only thing
that matters in life is the ability to
map cause and effect accurately. Have
the discipline to act upon it and point
those abilities at something that people
will pay you to do. That is the string
of life. Much like investments, I lost
most people in the first couple of words
and so they won't do it. But that that
really is it. Like when you can
anticipate the outcome of your actions,
woo buddy, like you're really doing
something. And then if you can go into a
workplace, even if you don't want to run
the company, if you can go into a
workplace and say, "I see a thing you
don't see about why you're not making as
much money as you could, and I'm going
to show you how to do that." And then
when they do that, it actually works.
That person is going to make money for
all time. The problem is that's an
intellectual game. Meaning you actually
have you have to have the intellectual
horsepower. And a big problem that we
have is a lot of people I mean just take
a bell distribution. whatever 49% of the
world is going to be below average. At
some point as you slide down that scale,
they're just not going to be able to run
that at a meaningful level. And so you
have problems. And that's why I'm saying
the the things that humans do
intuitively, you have to make
accessible. That is how you have a
thriving middle class. Like where I grew
up, admittedly, we were probably lower
middle class, but nonetheless, I grew up
around farmers, pipe fitters, bluecollar
workers, bus drivers, mechanics. That
was my neighborhood. and but we had a
neighborhood and we had houses and they
weren't fancy but they were [ __ ]
houses. It's like everybody understood
that. Do that and when you do that now
it's like ah cool I've got the thing
that goes up in value with inflation.
Black Rockck didn't own houses back then
though. Yeah. Correct. So this is the I
that feels like a gotcha. No no I'm
trolling. I'm trolling. But hold on. So
on that I love that. So now you want to
talk about regulations that make sense.
Cool. Don't don't try to mandate that
like you're lower income so we're going
to give you loans that we otherwise
shouldn't give you. That's bound to end
in disaster. What you do is say we don't
let corporations buy single family homes
in excess of whatever number. We don't
overregulate builders so that they can
make houses so that the cost to make a
house goes down. When the cost to make a
house goes down, the cost to buy a house
goes down. Doing things like that.
Remember, I'm not a no uh government
guy. I like me a very intelligent
regulation that is designed to build a
system that has less holes. What I'm not
here for is the authoritarian policing
of the holes that exist in the system.
The government's job should be to keep
the rules of the game fair and ensure
competition is working. A lot of what
we're dealing with now just feels like
monopolies dominating the system. Yes,
he's certainly right on the first part.
How much of this this is Drew's beef.
Your broken system has created so many
perverse capitalists. It's not the right
word, but it'll do as a standin. AT&T
and Spectrum. I know this person. Trust
me, I was thinking about that. This
personal example, you can't start new
internet companies. Google tried it.
They went to six different markets. They
got shut down. Starlink. My thing is
just impatience. Satellite different
than like fiber. Yeah, but it doesn't
matter. Like the the way there's a
there's a there's a technological
disadvantage from satellites to fiber
for today. But like you're if he makes
enough money, he'll keep innovating.
There's no way to regulate out of
existence that some things are going to
be very hard to do. But the exact thing
you want to do is fill the void. You
want to come into that space where there
is no solution and go, I'm going to do
that really hard thing. That that's what
you want to incentivize the system. You
do not want to try to underhand pitch
for people. That's not real life. You
want to say, hey, if you can learn how
to hit this fast ball, great. It's going
to be better for all of us. Yes. The
point I'm making specifically for AT&T
Spectrum like that is that satellite
companies, internet companies are
technologically disadvantaged because
satellite the range the things like that
it's slower bandwidth than hard lines,
fiber, copper, things like that. Well,
the speed of light is so fast. I don't
know if you're going to notice, which is
certainly what Elon is saying. Yeah,
there no there's definitely a gap
between as it stands right now the
technology that physically exists
satellite companies they're at one point
they're getting an average of like 25
megabytes versus when they're just going
up up up up up up up up up so we'll wait
we'll wait for it to get there but yeah
give me your argument in a single
sentence cuz I'm confused there would be
more uh more internet companies in local
communities that are hardwired if
governments didn't stop new incoming
ISPs to try to compete I love it less
regulation yay Ipso facto I was trying
set you up with the spectrum thing to
say that that's an example of it is
super annoying and I'm totally on board
with less regulation. Billionaires, mega
corpse, lobbyists, etc. all skewing
governments, all of that gets better
with smaller scale. Debt is a symptom of
capitalism at scale. Should we consider
debt the lethal symptom of aggregating
too much?
No. Debt is the symptom of uh fiat
money. You keep it in check when it's a
hard currency and there's just no more
money to lend you. And so now people
start to be like, who am I actually
going to give this loan to? When you
have fiat money, you have bailouts. When
you have bailouts, you have the robbing
of the poor middle class and giving to
the rich. All of the problems that we
see map one for one with a debt money
printing system. Everything else, as far
as I can tell, is just downstream of
that. Downstream of that. A man is
political animal. Tom, please clip that
entire section about $10 compounding so
I can send it to my friends. So many
people can't seem to comprehend that
concept. Dan, I feel your pain. It's uh
people don't have an intuition for the
stock market. They don't have an
intuition for compounding interest, and
it's just boring. And so the idea of
giving $10 every paycheck to something
that's boring and way out in the future.
Uh they did the marshmallow experiment
back in the 60s or 70s and they ended up
tracking those kids for like 30 years.
And the kids that could wait the longest
to get the reward of the second
marshmallow, they ended up doing better
in life. I forget who came up with it
originally, but I heard this from Alex
Hormoszi that there are three things
that make for hypers successful people.
Number one is a delusional belief in
yourself that you can pull it off.
Number two is a crushing fear that
you're inadequate. And number three is
the ability to delay gratification. If
you can like suffer suffer suffer suffer
suffer for something that's way out in
the future, you're going to murder. And
most people can't do that. There's that
book Everyday Millionaire that there's a
large swath of people who just invest
every day, close your eyes for 30 years,
and then wake up and you're good. But
it's the 30-year part that people don't
want to close their eyes and create.
Correct. Correct. It's way more fun to
get rich fast. I get it. But good luck.