Kind: captions
Language: en
to me the economy is like a chessboard
once you see where all the pieces are
you can get a sense of where you are in
the game and um what is most likely to
happen next in the near- term as you
look at the set piece right now of a a
right-wing populace leader coming into
being elected uh where do you think the
economy goes from here everything that
happens has caused causes to make it
happen and so there's it's like a
machine and um so there are five major
forces that work together to determine
how this thing works the changing world
order the world order is changing those
five forces are first a
money credit money debt force in other
words the way that works is you get
credit that's buying power it produces
debt you have to pay it back you but the
buying produces economic output so
there's that cycle you have too much
debt you have a problem and you have to
go through an adjustment process there's
a mechanics to that the second one that
you're talking about is the internal
order and disorder um changing domestic
order and as you point out um there
traditionally there's the left and the
right and that's you know Democrats and
Republicans and there are times when
they're very very different and they're
fighting to win at all cost and and that
could be
disruptive um and how that works is
important the third one is the
international order there's a system of
how countries operate with each other
that's the order and there's a dynamic
for that number four is acts of nature
droughts floods and pandemics are a
force a big Force nature is a big force
and so climate change and so on is
important and number five is technology
man inventiveness that produces
Technologies they have an effect and
they all interact so what you've done uh
and what I has you've brought us back to
what is the most consequential
development of that second Force this
internal order and disorder
fortunately we had a situation where
there's a fairly clear mandate and they
were not arguing about about the
elections so we've had an orderly
transition of power from um the left the
Democrats and so on um to uh rather hard
right and so what does that represent is
your question that represents two
important forces I'll I'll say
them uh give the headlines and then go
below that the first in uh reforms
internal reforms to reform the
government and to reform the the
country in certain ways that I'll get
into in a second and second
internationally for the
preparation for war doesn't mean we're
going to have War but to be prepared for
war and to have a type of war with the
rising power China and then its allies
China Russia um Iran
and and North Korea are considered that
other side you're going to see the
country run and the government run a lot
more like a capitalist
business in which um um imagine a new
leader comes in and you have an old
company that's not doing so well maybe
that's IBM or Boeing or something and
they're coming in and they're doing a
renovation and so you're going to see
Tech Technologies be used you're going
to see a game game plan develop to make
the government run in a more efficient
and coste efficient way and you're going
to see what we call an industrial policy
which is a policy for the country the
business to operate that rather than a
purely free market economy in other
words it'll have Direction you're going
to see
deregulation you're going to see uh
changes in legislation you're going to
see an emphasis for it to be uh
productive and to be effective with an
eye on what that means internationally
and the competition for example in
technology you either win the technology
War you lose the technology War the
technology War u means if you win it you
win it
economically well whoever the winner is
will win it economically and will win it
militarily so that International Al we
have that same competition that changes
the role of the United States we have an
America First policy okay not no longer
the world order as it was the world
order as it was after uh World War II
was that uh how do we work with each
other in those countries what are the
rules and establishing a
rule-based uh what we would say also a
moral driven uh type of uh uh world
order in which there are
multinational organizations such as the
United Nations the World Bank the World
Trade
Organization uh the IMF and all those
organizations operating by a set of
rules that's obsolete now we now have an
America First policy in which then other
countries then are increasingly
pressured to be with us or against us
and now you're seeing this line up in
preparation for what side are you on so
that is the change that we're uh going
to see and we are in the process uh of
developing how disruptive do you think
this change is going to be to uh a
potential International conflict is this
going to see a rise in bricks where that
really becomes a threat to the US dollar
or do you think that there's a way to do
this well where tensions settle down
you're going to have
more strong
armed uh conflict a much more muscular
power and testing of powers and um and
getting it around that you're going to
have much
less following the United States it
wasn't long ago that the United States
only had to hint at some countries what
it wanted and they would get the message
and they'd prob pretty much fall in line
because that was the order and also the
power of the United States now that's no
longer the case and so you're going to
see a more
fragmented um policy in which uh most
countries are are interested in how
what's good for them and how how do they
pursue that so you're going to see some
countries align with one side or the
other and most countries in the world
not
align and do
deals and so that will be a much more
fragmented uh type of policy so yes
bricks will rise bricks countries which
are the let's call them the
nonaligned countries generally speaking
although part of that is China and
Russia that's part of the bricks part of
that but it is um the non us dominated
non G7 non European um countries that
are creating this
alternative now what that'll be is um
they are not all in agreement with
everything but they do think they have
one thing in common and that is to get
out from under the American SE uh system
or to be controlled by the United States
so that LE lens itself to doing those
things that'll reduce their control such
as developing an alternative medium of
exchange and perhaps an alternative
storeold of wealth I don't think they're
going to develop an alternative storeold
of wealth but I do think we have our
storeold of wealth which is treasury
bonds or bonds we're going to have
problems with that
so anyway it is that alternative
organization that is not the US
dominated world order that also by the
way constitutes about 85% of the world's
population and now counts yeah and so um
you're going to see a
shift in that direction the idea of the
United States
dominating um and being so um
controlling um is no longer going to be
the case it'll be a power it'll
certainly be a great power but um it's
it's bricks inter uh um each pursuing
their own interest in deals um in a more
interesting in a more independent way is
is part of that they do not the world
sees it differently the United States
sees it and in the way I just described
in other words there's internal how do I
control the internal and then how do I
deal in an America First policy with the
outside
world um the most of the world says I
don't want to get involved in your
fights and your arguments I don't want I
don't care what you want you're pursuing
your
self-interest and instead I have my own
developmental issues and I'm not going
to follow in the same way that's the
characterization of what it is like in
the world
all right this is a really classic
pattern so what does this mean for us in
the US we've got a leader now that is
going to be very muscular uh going to be
aggressive uh sort of metaphorically
anyway slapping people around and saying
this is how we're going to do it uh he's
threatened to do 20% across the board
tariffs
um how does that play out domestically
does it isolate us from the rest of the
world and end up putting us in a
position where we can no longer export
our inflation and that becomes a
dramatic problem for uh our debt and the
value of the dollar or is this the
posure that needs to be struck right now
so that we can resolidify bring
manufacturing back on board get the
dollar strong H how does this play
out
um think of it as operating as two
different
systems and so you're going to have two
different Technologies in the world for
example um there's going to be a
china-based technology is going to be an
american-based technology and there'll
be two separate Technologies and the
technology is how they're handling their
economy no I'm referring just
to you know this AI All Tech all of
those Technologies because they are a
threat to each other and so they're
going to stop doing global trade no and
nobody wants to trust what's in here so
for the and and they need
self-sufficiency if you're in a war
you're not going you can't be dependent
on parts or things that are going to
come in from other places that could be
shut off so you're going to have this
you're going to see a lot more conflict
and you're going to see a lot more
economic independence that is going to
um
undermine uh efficiency but benefit
self-sufficiency okay so the goal is in
in 2030 to have 20% of the key chips be
able to be produced within the United
States but think about them they're
being produced in Taiwan which has this
geopolitical thing going on and that's a
scary thought so you're going to see
that you're going to see then the
support in an industrial policy
for enabling that so there'll be
protectionism there will be tariffs
certainly those ideas that in that stuff
coming in will make it more expensive
because you no longer could go to the
World Supermarket and buy whatever is
most cost effective for you but it will
at the same time develop those uh
Industries this was very much like
Germany after World War I or or or Japan
um uh this is very much um uh you know a
policy that is a a more autocratic
controlling the economy directing it to
be self-sufficient with protectionism
and so on so that will be stimulating to
those businesses we have um a number of
businesses which are not their National
Championship Champions but they may not
be the most efficient and so you will
see the desire to bring in capabilities
from other countries producing chips
Boeing has a problem the main um you
know where are we going to get it so you
will see foreigners coming to produce
within the United States um but it was
going to be much more focused within the
United States to make it more capable
more profitable and more uh independent
so that's what that piece is going to
look
like okay so to me the vote recently was
the Revenge of the working class it was
people saying that my wages have not
gone up in real terms uh since I think
the 1980s they're feeling that they I
think that the average person if they
don't believe that their child's future
is going to be better than their present
uh that you run into this anger
frustration and people lashing out so
given that that's the setup internally
as we begin to do an America First
policy as we begin to make things more
expensive by putting on tariffs um even
though I get the long-term play of we
need to prepare for a war that may or
may not come but we have to be ready for
it uh and so we're going to do things
that increase the cost of goods but make
us more resilient how is that populace
going to respond are they going to get
more pissed in the short term because
it's like hey you're actually making
things worse I think it I I I I I think
it depends I I will make the argument
for what those who are um creating this
and and behind this would say I think
they would say first of all that the
tariffs can raise a lot of money and
they can raise a lot more money than
wealth taxes for example or some of the
other taxes and so they have two
benefits they will bring in tax
money and they will create a protected
environment and if we and so yes that'll
mean um higher Goods prices but if you
take that tax revenue and um you know in
a sense taxes are a type of inflation if
you raise taxes it's a type of inflation
on people okay and not might not be in
the consumer price index but it's taking
money out of the pockets of people in
the form of taxes too so they would then
say that what we will do is we are going
to improve
productivity in the United States by
these operations we're going to enable
but we also are going to improve
productivity and so those improvements
in
productivity will help to offset the
higher cost of tariffs because money
moves around that way you know so if I
can get a dollar out of a tariff or I
can get a dollar out of taxes I have to
think where am I going to get the most
dollars and what is getting it mean in
terms of taxes and what am I going to do
with that dollar and so there's a belief
that by running the country like a
company in a sense to be able to make it
productive and to by supporting that we
will get self-sufficiency we'll get
greater security and we'll get greater
productivity which will make the country
better than if it's operating highly
inefficiently depending on imported
goods to be cheap fair so let me ask you
from the economic side of this modern
monetary Theory would say print more
money and give them more resources why
doesn't mmt work in reality it doesn't
it doesn't work in real ity
because there is it's a it's it's a very
basic thing there's a debtor and a
creditor
okay the Creditor has
savings and so in Saving they want to
receive a return on their money and if
that money does not provide them with a
real return they'll put it into
something else gold something else and
so on so you have to have interest rates
that are high enough so that the
Creditor gets a good return but not so
high that it breaks the back of the
debtor and when you have a lot of that
debt and so on that balancing act
because one man's debt is another man's
assets you have that balancing act that
becomes more difficult when you print
money you do not make
productivity you just make more money
money doesn't have any value okay the
more money you make it's okay double the
amount of money wouldn't it be wonderful
if we just could double the amount of
money and then uh have benefits from it
but it doesn't give you anything really
okay it's only productivity that gives
you something so the idea that I'll
print more money and give it away is a
transfer of wealth essentially from uh
that uh
undermines proper lending of
money um and because that balance has to
be taken care of are you wastefully
producing the money or are you
productively producing the money in the
cost like anything else make it free
okay and you're not going to have it um
well handled it's that you're going to
produce more
inflation so and if you are in a
position where you make interest rates
not high enough for the Creditor and not
um and and that balance then what you're
going to have is inflation you're going
to have that money coming out and worse
than just the new supply of money is
that people want won't want to hold the
debt instruments that they're holding
because the way that stor hold of wealth
is when you hold a bond you get this
money that everybody's Printing and it's
going to go down in value okay and you
don't want that you'd rather hold it in
some things that are going to hold their
value and that's
basic okay this this is so fascinating
uh very helpful this is actually
beginning to clarify my thinking on this
moment you've talked about there needs
to be a Manhattan project for the
economy that you want to get the
smartest people that the US can get
their hands on and sit them down and
give them the grand um task of I think
what you're referring to is the
beautiful deleveraging that we have so
much debt we have so much inflation that
we have got to find a way to tame this
um what would the Manhattan Project look
like what would be the stated
goal what I would have liked best would
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now back to Ray what I would have liked
best is the recognition that um the
majority of the people have to be behind
policies you need reforms you definitely
need reforms you need broad-based
reforms that includes things that have
not been mentioned in this play
such as education the most important
thing that you need I believe is quality
education that provides broad-based
skills and also teaches civility so the
country operates well and creates but
but anyway whatever um so that we have
we cannot simply get there if we don't
have a policy that is uh that everybody
believes in that you work towards so my
idea of the Manhattan Project was to get
the most skilled people uh from both
sides um not the extremes but uh the
extremes frighten me because you're G to
have a war between one set of extremes
and another set of extremes it's not
going to be good and you can't neglect a
population that H that is going to
perhaps be neglected by these types of
policies um capitalism will not do it
all so as the result my Manhattan
Project was working making bipartisan
what I would have preferred is a uh is a
bipartisan cabinet by way of example to
be able to bring together the smartest
and the best and then you engineer how
do you create the reforms and you get
the majority of people behind it um so
that's what I meant by that type of
Manhattan Project but we are going down
this path and you know and many people
believe that this is the path just like
people believe that the other path let's
say the Democratic path would have been
a different path so we're on this path
and we hope that um that path is
successful in making those renovations
to be able to um raise productivity we
we certainly need
Renovations and if it delivers then
people will be happy I am worried about
the areas that they won't deliver but
that's always part of it and this is the
plan and so we you know everybody can
argue about the plan so much so that you
can't execute a plan okay this is the
plan and U you know I hope they do it
well you are having in the particular
appointments that you're having is non-c
compromisers you are having extremely
low um loyal
and uh black and white uh strong people
who will not compromise much about
anything and so that's what's going to
happen um over that Administration and
in order for them to achieve their goals
they're going to have to prioritize
there are a number of things they want
to
do um the first 100 days of an
Administration is very important in
terms of the uh what's accomplished and
certainly the first two years is
critical because there are midterm
elections and everything can change
depending on how that goes and so you're
going to have to see prioritization of
things how much what are we going to do
in um immigration what are you going to
do in trade and tariffs what are you
going to do in technology what are you
going to do in in energy policies and
Industrial policies Capital markets
deregulation all of those things are on
their list they're going to have to now
these aspirations are going to hit the
realities and and come in conflict with
those realities uh laws will have to be
changed there and it's and to change
laws is complicated and so on but
there's a determination that that some
of these things most of those things
have to be done in that period of time
so I think you're going to see very
forceful actions during that period of
time and
prioritization you said that there were
certainly things you were worried about
we'll see how they play out what are
your biggest worries what could the
non-c compromisers get wrong that would
be very
problematic I think the they can um
overdo things in a way
where the thinking of some parts of the
population who
are left behind and are not benefiting
from that um could be important I think
that they're forgetting about education
for example I think I think the most
important thing to reform
is to affect children at a young age to
be able to be to do be of good character
and good capability and I'm seeing that
education is not going to be pursued and
I think that um you know there can be
such an
alienation of the other
side um that uh you know that that that
becoms a problem in in in the longer run
so
but I understand that perspective you
know and that they um have to make those
decisions and and get them through and
that's what a renovation looks like if
you would take a company how do you
renovate a company you might cut back a
lot on the workforce you might create
lots of disruptions to get that company
in good shape and that's basically what
the attempt is um going to be by people
who think who have done those things and
are inclined to do those things so
um all right of course the people part
of
it the
establishing a minimum standard let's
say of education and um
civility you know I'm I'm very much
exposed
to the poor
underprivileged people in Connecticut my
wife works to try to help um those who
are living in school districts and areas
where there's gangs there's poverty
there's terrible education there's it's
it's an environment that if I was to
live in those environments I would be a
revolutionary um and you know how do you
establish that Foundation that no nobody
Falls below that there's a certain level
of s how do you deal with that I don't
think that that's going to be uh well
dealt with but you know
um tough choices are going to have to be
made and those are the choices that the
new leaders are pursuing and so I've
answered your question about what I
think some of the risks are all right so
if Elon and V come in and start hacking
and slashing away at the government and
reducing either size of department or
eliminating departments altogether do
you think that will be recessionary or
is that going to free up human capital
to go into the private sector I think
the key is whether it improves
productivity or worsens
productivity it's how that's done for
example if you intro it has consequences
but let's just imagine you introduce
Technologies you get rid of a bureau y
that stands in the way of progress I'm
now painting the good one and so on and
so it's like a company that all of a
sudden uh all doesn't have a bureaucracy
doesn't have waste and has
technologically um advances and it
produces things more
efficiently um that um is good for the
company the country as a whole did that
that would be good but it still creat a
situation where what are you going to do
with the people who are useless or
nearly useless how is what are you going
to do with those so it's hasn't answered
that question if it is not working that
way and not effectively done um it'll be
disruptive without um those benefits so
I think you know I
uh I
admire um
maybe it's not exactly the way that I
would do it but I admire the uh attempt
to make um that kind of Revolution that
believing that them believing that that
is the best way to do it and I can tweak
it but I would say productivity per
person broad-based
productivity is the most important they
are emphasizing
productivity I'm not so sure that
they're emphasizing broad-based
productivity because broad-based
productivity means that each person is
productive and then they are that
productivity gives them their income so
the broad-based part of it is of a
concern to me but productivity is a good
thing and so it's worth their
try Okay broad-based productivity is
there any way to get to that other than
educating the young like is there a way
to take the adult who now is going to be
wildly disrupted if they're government
employee they get uh oued from their job
they have to find their way in the
public markets do you think you just
sort of have to set that aside and like
focus on the youth or do you think there
is a way to get current adults broadly
productive you have to and that's what I
worry about not being adequately
attended
to you have to deal with that
population all so let's the question is
is there a way but before we get to way
I would say you must find a
way because if you make a lot of useless
people um you're going to have your the
same kind of problems and a worse
problem with all of those useful people
not good for them and they're going to
be disruptive to the society so you must
find the way and I worry that there's
not enough attention to being given to
that issue are finding the way so now
can you I'm look I'm not an expert on
jobs programs you know and and how that
works and I'm not a big believer that
the government is the best most creative
ways of you know government efficiency
is an oxymoron so when you uh you know
um would you like your um whole
government to work the way the
department of Motor Vehicles works you
know it's it's a problem no so so how
you do that um is not as being
neglected and I I think that's the basis
of a
problem so and young people yes and it's
that's being neglected how you do that
um at a young age and I'm saying you
have to teach them two things you have
to educate them the skills we have
measured in the world go like Pisa
scores where is the United States for
the average
school um we have 60% of the population
has below a sixth grade reading level
you have
to improve that education and you also
not just in the formal education you
have to teach civility how people can
come out and work well together to be
productive and those are the areas that
are being neglected in my
opinion okay so before we go down the
education path talk to me about the so
this group that is potentially going to
get disaffected if we start reducing the
size of the government focusing on
efficiency we know that we have to deal
with that population um let me give you
a terrible idea just spitballing here
and you tell me how we potentially make
this good and heard you're not a jobs
expert however uh when we look at
economic policies that are likely to
create opportunities in the private
sector that they can be absorbed in
because I'm making the base assumption
that the private sector is going to be
the far more efficient with human
capital than the government so um I buy
into the idea that if you release them
from the inefficiency of a government
job as long as there's proper incentive
in the private sector to on board them
you could really make use of them uh
would something like leveraging tariffs
in of income tax is that like an absurd
idea and we're never going to be able to
get rid of income tax or is that the
kind of thing that could be so
stimulative uh that we could then absorb
those people into the private Market
well you're talking about two things
where you get the money from and then
what you do with the
money so where you get the money from
tariffs um as I
mentioned if if that money that you get
from tariffs
is used to raise productivity better
than
taxes that's a good thing what do you do
with the
money the question Still Remains though
um what is the plan to do with those
people who who let's say artificial
intelligence will replace a lot of
people um you you know people get upset
about the the uh Chinese
Imports um and the Chinese
Imports are less impactful in jobs than
technology and they're also giving you a
cheaper product that has some benefit
because you can more cost effectively
get it when you have um technology
replacing jobs that you know that can
make it the items U more cost effective
but it also can disrupt jobs and so we
still come back to your question of what
happen what is the plan for um those
people whether of any age later or
earlier what is the plan to do with them
and who is going to execute that plan
that's what's missing uh and and there
are no easy answers does the government
do it well the government is not very
efficient in doing things and what does
that mean but anyway the government
won't do it so we have um those
consequences as a result of this and we
just have to realize that that's that
would be the type of thing that if I was
saying a Manhattan Project it would be
that kind of examination of what is the
the plan for those people what I'm
trying to put my finger on is there's a
Euphoria in the markets since Trump was
elected there is a sense of uh I'm I'm
gonna guess this is my read of the
situation that people are looking at
this and they're saying okay here is
somebody that's Pro business they're
going to be deregulating they're going
to be reducing the scope of the
government if anything they're going to
reduce taxes and so people are saying
okay uh there's going to be massive
investments into businesses that's going
to make the stock market go up they're
also Pro crypto so there's going to be
more Innovation on that side as well and
so you see Bitcoin is mooning uh you see
the stock market is going up now I don't
know if that's pure
optimism or if mixed into that is a
belief that Trump is also going to
continue to print money continue to
deficit spend and so they also need a
place to um sock away their assets so
I'm not quite sure what the best way to
read this is but if it's the first one
and this is just optimism there's going
to be deregulation reduction in taxes
massive investments into business um
that feels like a very
hopeful signal when you think about
people losing government jobs and
needing a place to go into the public
markets do you think that's a misread I
I think I think everything that you said
up until the last part um is is
perceived and and I agree with that kind
of an
assessment uh so what I mean
is there'll be less taxes um it's more
capitalist it's good for the
markets um there'll be more efficiencies
it's all of the things that you
said but um it still doesn't and and
there'll be both by the way both of your
scenarios there'll be more um uh there
could be deficits it'll be monetized by
the Federal Reserve and one way or
another they'll control the interest
rates through um but they'll print more
money in order to do that and there'll
be things happening okay you've the that
a good summary it still doesn't tell me
how that's going to deal with those
people okay so um the only thing I have
for you at this point is something very
vague which is if private sector
stimulated then more jobs and therefore
anybody leaving the government sector
that wants a job is more likely to have
that
opportunity I don't think but it is
vague I I I don't think don't I don't
think so I think um um
those there's the government people
leaving and then there's the vast
majority of the population who are being
disrupted for other reasons such as
technology having efficiencies in both
cases there um you're going to have
Technologies increasingly replacing
people now
um you're going to break the world into
two types by and
large there's about three million people
who account for most of the benefits
that of the new technologies you know
the
unicorns and such It's a Wonderful
environment if you go to the great
Americans schools that um are these
the rarified environments where you're
among the brightest and you learn and
you come out and you get jobs or uh a
lot of the people half of the people are
immigrants who are very talented from
different countries and three million
people about half of which uh are
immigrants are
really uh doing the amazing technology
work and creating unicorns and so on and
then it's a country of 333 million
people so how we broaden that um there
will be those who invent the
Technologies and do very well and then
there will be the a lot of people who
will be disrupted and they're not going
to be able to just go from a government
job in which they were operating a
certain way into the
workforce and you know they what what
I'm okay what's my background government
bureaucrat okay now I'm you know a 52y
old Old Government bureaucrat uh looking
for a job I don't think that there's
going to be a you know a great job
market for that those people and that's
the government part and then there's the
others who will also be
disrupted so
any there needs to be there needs to
be attention paid to
this okay there needs to be attention
paid to
this partially are you un fortunately
the
government is not great at this because
also you know it's like the priv the
private sector wants efficient
people not
people who are like that by and large
and the
government is not good
at disconnecting themselves with the
companies they can TR a lot of people
you could spend a whole career being
trained in this program and this program
and never end up being
productive so that's a
problem that is a problem uh so I my in
my darker moments where I'm just being
blunt with myself the thing I would say
is uh anybody that is unable to make
themselves productive in the private
sector you just have to give up on like
the your only other option is is every
kind of social safety net once the
social safety net gets put in place then
people are groomed to find their place
in the social safety net instead of
being groomed to find their place in a
productive
Workforce uh I don't see a way around
other than slowly finding a way to um
let the the markets decide who has value
and who doesn't and it sounds gross to
say but I don't see a way around
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Theory the answer start with how you
educate your young people when they get
older and they're ingrained and they
don't have the capabilities or they and
they don't have the
civility you have people who are very
difficult to make
useful and it's roughly a 10year cycle
that 10 years is not very
long but having um excellent education
establishing a a bottom so that
everybody this being I think the most
important thing to change and improve a
society is to have an education system
that the majority of the people can have
a bottom in their conditions to be
educated and to live in a civil
environment that is the lesson not only
in Singapore but it's the lesson
throughout history in all all places
think about you and those around you and
the generation of raising children think
about how you were raised and raising
children the most important thing is
raise your children
well okay the children they learned
these things in early life they learn
their approach to life at an early age
and so they not only to get the skills
but they get the
approach you know ethics behavior in the
society not to if you're raising CH
children in an environment where there
are guns and shooting and drugs and
stealing and you make your money because
you do those things and then they grow
up it's very difficult so I do believe
that the lesson of uh these places is
that you should make those things go
well rather than deal with them go go
going poorly why does America have a
hard time imparting its values uh from
one generation to the next there a few
reasons um
first each values comes from the
particular parents that have the biggest
influence on those
values um and we are living in a
society in which there's um uh
competitiveness also determines the
resources that you're living in and we
have a society in which by the
Constitution
education formal education is a state
issue and then it comes down to a tax
District issue within the state so what
you have is a situation where if you
don't
have the
parents and you're in that
environment um let's say for example I
live in Greenwich Connecticut and the on
the public school system I think of the
average per student expenditures 28,000
in Bridgeport Connecticut which is 10
minutes up the road and they don't have
money the average expenditures something
like
$114,000 in school and then uh they need
more money because it's not just the
amount for education but if you buy them
a computer you have to buy them a
computer school doesn't provide that so
some get computers and some don't get
computers and and such things and
they're living in an environment where
there's drugs and shooting and all of
those things and and that's a more
traumatic environment so re reforming
that is more difficult and expensive you
have those two different kinds of
environments so who are your
parents how did they raise
you do you have the education and the
ability do you have those resources you
know that these are the fundamentals and
the basics so the answer why don't we
learn your question was you know why
don't we do that why don't we learn well
that parent who
is
now you know may be drug addicted
at 14 or 15 years
old becomes the
parent what kind of parent are they
going to
be so you have the spiral that worses
my my
wife who deals with this this issue um
sponsored a uh an examination in the
state of
Connecticut and looked at you know who
are they and what are the
costs and it was um BCG she hired BCG to
do the study and and it did this
examination and it showed that uh
besides this human tragedy as I said say
in the state of Connecticut 22% of the
high school students have either dropped
out of high school or are failing
classes with absentee rates of greater
than
25%
yo in the state which is the always
number one two or three richest state in
the country okay because of that that
has created almost a plague that has
then caused crime
and incarceration they're spending $700
million a year on
incarceration okay so it's been shown
that it is so cost effective that if you
didn't even care for the people and you
were just saying what is it costing the
society it's costing the society a huge
amount of money that if you fix this
thing if you would deal with those
things Not only would you have a fair
Society for education and so on but
you'd say save money and you have a more
civil environment so that in that
environment there's greater safety A
Better Community people want to be there
so that's a
reality so that is um so I'm just trying
to answer your question
um if your parent was one of those
parents you'd be raised that
way yeah I've seen problem up close so
as somebody who was in manufacturing and
long personal story as to why I've spent
so much time in the inner cities but uh
to me it seems pretty blatantly not to
be a money problem it is an ideas
problem the problem is to your point the
place that you get your ideas from your
parents if your parents got bad ideas
and it becomes a self-fulfilling
prophecy um zooming in on education so
the hope would be that kids walk into
school as a kindergartner and we start
edating them well we're not doing that
currently the Department of Education is
coming under increasing scrutiny um what
are your thoughts
about the principles that make and I
don't want to put words in your mouth
for me I look at that and I go if you
have a system where you can't fire
people that are underperforming if you
have a system where you don't hold
people accountable to
kpis of course that system is going to
derange that you have to fundamentally
make it so that the best and the
brightest make it to the top that they
get paid a competitive wage that
attracts High Caliber talent and not
just people that have a big heart um
what do you think is the read how would
you actually I I I I would say
everything that you said is true but
there's much too much emphasis on that
relative as being the problem relative
to the fact that
um the amount uh uh there are teachers
many many wonderful teachers
who are having to be in these
environments and
are under underresourced
um not
appreciated they're going through they
take money out of their own Pockets to
try to give things that you know there
are not in some of these schools
adequate basic things like pencils
they'll take money out of their own
Pockets so if we pour money into the
system will it solve it sorry if we pour
money into the system would it solve the
problem
um we're dealing no I think you need
both okay um uh you when you're
describing it you're describing it as a
one-dimensional problem okay meaning as
I hear you that they are lousy teachers
you're not holding them the kpis and so
on and I'm agreeing that that's true but
to characterize that as a
one-dimensional problem and not deal
with the other part of the problem is a
mistake in my opinion and that other
part of the problem for example in covid
there was 60,000 students who would not
get computers that would mean that they
would not get
education Jesus okay okay so uh we
fortunately we have the resources we
bought the computers but if we didn't
buy the computers and get the computers
connectivity they don't have
connectivity so when you're dealing with
the other part of that issue which is
that deprivation
$114,000 versus $28,000 in an
environment like that if you yourself
were in there and you were a teacher I
know people who are wonderful teachers
who are in those environments and so on
you have no idea how hard it is because
of those things so when you ask me um
with pouring money into it the help let
me say with um pouring money into some
things like Basics like okay every child
has this basic set of
circumstances if you take the good
teachers who are doing an excellent job
and you distinguish them from the bad
teachers and they are doing an excellent
job you will have a better system a
better education system I'm not the guy
to fix the education system I'm not
telling you but I'm just saying that
when I look at it up close it's not as
simple as sort of saying that you know
there are uh bad teachers and so what
you do is you have to yes you have to
I'm hearing you I agree with you on that
but you cannot ignore this other part of
it which is the starvation of resources
and the general environment that they're
living in food I mean the kids come to
school to get the food because they
don't have enough at home in their
various ways these are
issues yeah no I agree and in my own
defense I uh was merely trying to set
you up to um give your take versus
giving my whole take but uh where I come
at it from is you have a system where
even if you pour money into it I don't
think it's going even though I agree
with you that you want parody across the
board but if you look at some of the
things that are going on with the
charter schools they don't come in and
solve the problem through money they
come in and solve the problem through a
value system and the value system
alignment of discipline Focus hard work
expectation we disagreeing on
something I no no no I I I merely wanted
to put forward that I agree with you
it's not as simple as but I think the
problem is so now we agree on that point
and now let's go back and can step back
and say that won't
happen Okay
so we can uh I think we're in agreement
or we could debate the question of what
should be done but now let's step back
and when we're talking about the changes
that are taking place we have to
recognize that not that won't
happen any renov dark sad dep in but uh
pros and the cons this conversation if
I'm understanding it is to look at the
pros and cons of the of what's happening
the pros are you're going to take on
reform and you're going to you know and
and and and that can have a lot of
beneficial effect in a lot of diff
different ways and then the con is what
we could do all our debating but that is
not going to happen that there will be
no changes in any material improvements
of taking that thing that we're talking
about taking that on to make that better
education then that's going to be a con
I'm not Mo moralistically doing this I'm
not idealistically doing it I'm just
analy analytically doing it okay and
that's what it looks like right Ry I
cannot tell you how much I cherish my
time with you uh I know you have a new
initiative going on I would love you to
tell me and my community a little bit
more about
it well I think you're it's it's not a
new initiative but I'll but I'll tell
you um I think you're speaking about
um the
um charitable gifts okay so I'll tell it
the specific name ISB TB exactly okay
tbest is a vehicle let me let me
describe this about 20 years ago
um I didn't like typical giving at
Christmas because people waste so much
you know they buy the junk that they
give as Christmas gifts and so on um the
amount of giving of candy at Christmas
is greater than the amounts of money the
annual budgets of the American Heart
Association American Cancer Society and
Habitat for Humanity combined
candy because somebody's got to give
candy and it becomes decadent and so on
and so it occurred to me about 20 years
well more than 20 years ago that if I
know that you're
charitable and that I would if I gave
you a donation to your favorite
charity that um that that you'd
appreciate that as a gift not my
favorite charity your favorite charity
and that you would appreciate apprciate
that as a gift and we together could
give that and and the B benefits of that
is it goes to those who we're excited to
have it go to um if you're not
charitable it's it's not a good gift but
if you are charitable and it also makes
the holiday spirit more in keeping with
the holiday spirit and it's a whole lot
easier shopping to do and U and it's tax
deductible too so I mean like it's got a
lot of
benefits so um anyway um so I I gave a
lot of those out and 20 years ago I
started a campaign for how to do that
for individuals and companies because I
found out it was great and then when I
did that um it it caught on and um so 20
years ago I started to initiate that
about five years ago um I found this
organization tisb
and his best it makes that really easy I
used to send out checks there were
basically blind blank checks that they
would fill in who to send it to but this
now organization's fantastic because it
has all the Charities you could imagine
on it you put that in they will do all
the work and get it out there so five
years ago I started to do that and as
you know very well because you've been
also helpful in this regard uh that what
happens is um um um what we do is we
introduce that to people so um every
year um a few of my friends and I um
want to give that experience out to
people and the way we do that is we give
away
money
um it could
be we figure out every year maybe it's a
million dollars maybe it's a few million
dollars um to people for that purpose in
other words you can go sign up and you
yourself can get the money to go to your
charity or you can take that and give it
to somebody else to go to their charity
charity and so it doesn't cost you a
dime you just go through that experience
and we've done this um we're going to do
this again this year um the by the way
the money for the charity goes in about
five minutes so if people want to pay
attention they may pay attention to it
because even though it's a significant
amount of money it goes very very
quickly and uh that experience has
turned people on and turn companies on
to doing that practice so I want to
bring it to attention that this is a
great way for holiday shopping in many
many ways it's a great way for holiday
shopping for the recipient who is a
charitable person
I love it Ry thank you for sharing that
with us and sharing your time to talk
about this uh very fascinating economic
moment as always thank you for joining
me man I appreciate it Tom it's always a
pleasure you're a Force for good thank
you oh man same same to you Ray all
right take care all right everybody if
you haven't already be sure to subscribe
and until next time my friends be
legendary take care peace if you like
this conversation check out this episode
to learn more you could ask yourself
what do we celebrate my income isn't
going up as an individual I'm not making
more money but this guy's got $200
billion the US doesn't know pain like we
have no idea there's a world where we
Embrace technology where we say we're
not going to be fearful of loss but
we're going to