The Ben Shapiro Show - August 09, 2023


The Economy Is Spiraling The Drain


Episode Stats

Length

50 minutes

Words per Minute

220.51282

Word Count

11,180

Sentence Count

757

Misogynist Sentences

16

Hate Speech Sentences

6


Summary

In this episode, I talk about why the corporatist model of government intervention in the economy is a giant failure, and why we should have a free market economy like the 1950s, where the government was heavily subsidizing particular businesses, where unions were strong, and where there were no government handouts to favor particular companies. I also talk about how capitalism is better than corporatism, because it is more free market oriented, and because it encourages competition, which is the basis of innovation and economic growth, and which is why it is much better than the current model of socialism and Keynesianism, which are two of the worst economic models the world has ever seen. I discuss why free markets are the best economic system on the planet, and how they are much more efficient than socialism and communism, which aren t so different at all. I also discuss why Bernie Sanders is the best candidate for the 2020 Democratic nomination, which I think is a good thing, because he's running against Joe Biden, who is running against both of them, who are both socialist and socialist, and who are running against each other for the Democratic nomination for the White House, and vice-presidential candidate, who's a socialist and a socialist. I finish with a rant about why capitalism is a better economic system than socialism is a bad idea, and what we should be focusing on in the 21st century, and I explain why it s better than capitalism is much more "free market capitalism, not just better than socialism, and also why socialism is not so much better, and much, much, better than communism is not better than free markets, and that s better, but it s much, and more, and it s a lot better than we should we all agree on what we need to be better than that we should all get a shampoo that makes us all have a good shampoo that we all have in the same type of shampoo that s all the same shampoo? I hope you enjoy it! Tweet me with your thoughts on this one! Timestamps: 0:00:00 - What's your favorite thing you like about capitalism? 6:30 - What do you think? 7: What are you looking for? 8:40 - Why is capitalism better? 9:00- Why do we need more competition? 11:00 12:15 - Why do you need more choices? 13:30- Why does capitalism make it better for consumer choice?


Transcript

00:00:00.000 Well, folks, Bidenomics is a giant fail, and we are seeing the wages of Bidenomics happening right now.
00:00:05.000 Here is the thing.
00:00:06.000 Bidenomics, which is basically the idea that if we sink extraordinary amounts of taxpayer dollars into Joe Biden's favorite companies, or if we just blow out cash spending on a wide variety of causes that help Joe Biden's favorite political Friends, that if we do all of that, that somehow jogs economic growth and leads to economic durability.
00:00:24.000 It's a lie.
00:00:25.000 It's always been a lie.
00:00:25.000 But here's the thing.
00:00:26.000 It's very difficult to explain to people why it's a lie.
00:00:28.000 Because capitalism is a much more subtle and interesting conversation than is corporatism.
00:00:33.000 Corporatism has always been in very easy sell.
00:00:35.000 Corporatism is basically the idea, it was started by Mussolini in the early 20th century, that if you work hand in glove, government and business together, And then you direct those businesses in a particular way.
00:00:45.000 This will lead to economic prosperity because it cuts out all of the evils of competition, and we all work together instead of working against one another.
00:00:53.000 In fact, the idea of the corporation as sort of a corporate body, again, goes back to early 20th century philosophy, particularly prominent in fascist circles.
00:01:02.000 Fascist economics looks very much like what much of the West pursues in terms of a mixed economy right now, meaning government subsidization, of particular businesses. A government telling business
00:01:11.000 what to do and business just going and doing it. And what that actually results in is certain
00:01:16.000 levels of economic stagnation because it cuts out innovation. When you are subsidizing certain
00:01:20.000 businesses at the cost of other businesses then what you are actually doing is you are twisting the
00:01:24.000 incentive structure in extraordinary ways.
00:01:27.000 And when you hear people in the United States who are very nostalgic for the 1950s, they, why can't, why can't we have an economy like the 1950s where the government was heavily subsidizing particular businesses, where unions were really, really strong?
00:01:37.000 The quick answer to that question is we can't have the 1950s unless you wish to destroy literally all of the Western economies on planet Earth, except for the United States.
00:01:45.000 The reason the 1950s were a boom time in the United States is because every single export market for the United States Was completely destroyed, so destroyed that we had to spend billions of dollars giving those countries money so they could buy our product.
00:01:56.000 That's what the Marshall Plan was.
00:01:57.000 So if you don't wish to, you know, devastate the entire world economy and then have the United States be the last one standing so that we can pay the unions off for manufacturing product that you could easily do elsewhere, well, then it's going to be kind of hard to square that circle.
00:02:11.000 But Joe Biden's quote unquote industrial policy, his entire redistributionist policy, it has real costs and we've been living.
00:02:18.000 With these policies for quite a while now and they are not going particularly well.
00:02:21.000 We are looking at slowing rates of growth across the West as governments decide to move away from more free market oriented economics and more toward again this corporatist model.
00:02:29.000 The reason I'm ranting about the corporatist model right now is because I don't think it's only a Bidenomics problem.
00:02:33.000 I'm also seeing it happen on the right.
00:02:35.000 I think there's a part of the right.
00:02:36.000 It does not understand how free markets work and why they are good.
00:02:40.000 There are a couple of reasons why free markets are particularly good.
00:02:42.000 One, you as an individual human being have a right to your property.
00:02:46.000 This is the basis of basically all innovation and economic growth.
00:02:49.000 It also happens to be moral.
00:02:50.000 If you put work into property, you You own that property.
00:02:54.000 It does not belong to other people.
00:02:56.000 If you then wish to live in a community where you share that property, that's your problem, and you can do that.
00:03:00.000 And in fact, that's what religious communities over time have done.
00:03:03.000 As I've said before, I give a lot of charity to my local synagogue.
00:03:05.000 My local synagogue distributes that charity.
00:03:07.000 I'm on a wide variety of causes.
00:03:08.000 I help out friends.
00:03:09.000 I give them jobs.
00:03:10.000 This is all stuff that people traditionally have done, but that doesn't make my property not my own property.
00:03:15.000 Freely alienatable and freely keepable, right?
00:03:18.000 All of that is very good just on a moral level.
00:03:19.000 But the other thing that capitalism does that no other system does is it creates positive externalities.
00:03:25.000 Capitalism ends with creating innovation.
00:03:27.000 Now it looks wasteful, capitalism, because look at all these people who are in competition.
00:03:30.000 Why can't there just be one type of shampoo on the shelf, right?
00:03:33.000 This is Bernie Sanders' routine.
00:03:34.000 Why do we have all of these different shampoo companies making tons of different types?
00:03:37.000 I only need one type of shampoo for this crazy hair.
00:03:40.000 Well, the reason is because the competition makes the price lower.
00:03:43.000 It makes it better for the consumer.
00:03:45.000 Choice is good for the consumer.
00:03:47.000 Competition is good for the consumer.
00:03:49.000 And the same thing is true in the stock market.
00:03:51.000 When people look at the stock market and they see it as a speculative enterprise, the stock market is not about the speculation.
00:03:57.000 It's not about some dude getting rich day trading.
00:03:58.000 The truth is you're not going to get rich day trading.
00:04:01.000 The number of people who have gotten truly wealthy day trading is very, very, very low.
00:04:04.000 That is not how good investors invest.
00:04:05.000 The way that good investors invest is they find what they believe is an undervalued property, and then they buy it, and then they hold it.
00:04:10.000 This is Warren Buffett's entire strategy.
00:04:12.000 Warren Buffett is a student of Benjamin Graham and David Dodd, and his basic strategy is, I find an undervalued asset where I like the business, and then I own a share of the business, and then the business grows.
00:04:21.000 That is why Warren Buffett is successful, because he's a very disciplined investor.
00:04:25.000 He does not speculate in the stock market.
00:04:26.000 In fact, he does the reverse of speculation.
00:04:28.000 He investigates the businesses that he is looking at, and then he invests in those businesses.
00:04:31.000 So when you see the stock market as a speculative gamble, it becomes a speculative gamble for you.
00:04:36.000 But that's not what the stock market is meant to do, and that's not actually what the stock market does.
00:04:40.000 What the stock market does is it creates giant pools of liquidity.
00:04:43.000 Those giant pools of liquidity make it possible for new businesses to get off the ground.
00:04:47.000 Some of those businesses will fail, but many of those businesses will succeed.
00:04:51.000 It allows innovation to happen.
00:04:52.000 And that innovation creates profit margin.
00:04:54.000 That profit margin allows more innovation to happen.
00:04:56.000 This is why the sort of socialistic idea that profit is bad is really stupid.
00:05:00.000 Profit is the incentive structure that actually allows people to create new and innovative products.
00:05:05.000 And when you take money out of those markets, out of the stock market, for example, if you're the government, because you just suck money into the government maw, and then you blow it out on your favored projects, or if you're a sort of Right-wing industrialist, proto-industrialist policy guy, and you think, what if we just suck money out of the markets and then we just blow it out on a manufacturing center in Ohio?
00:05:24.000 You're doing the same thing.
00:05:26.000 You are taking the money from where it is most efficient and where it is most likely to generate better products, better innovation, and more economic growth, and you are taking it and putting it in a place where that is less likely to happen.
00:05:35.000 Now, you can pretend that that's good for the economy as a whole.
00:05:37.000 It is not.
00:05:38.000 It is good for your friends.
00:05:39.000 You want to say it's good for your friends?
00:05:40.000 Fine.
00:05:40.000 That's at least a fair argument.
00:05:41.000 I'm taking money from Bob and I'm giving it to Steve because I like Steve and I don't care about Bob.
00:05:44.000 That's at least a fair argument.
00:05:45.000 But to pretend that leads to overall economic growth is a lie.
00:05:48.000 And that sort of policy undergirds Bidenomics.
00:05:51.000 And it is leading to terrible effects for the American worker, for the American consumer, for everyone.
00:05:58.000 Because here's the thing.
00:05:59.000 When we talk about the wages of the 1950s, when we talk about bringing back the 1950s, economically speaking, you would not want to live in the 1950s, economically speaking.
00:06:06.000 You wouldn't.
00:06:07.000 You wouldn't have a cell phone.
00:06:08.000 You would not have a really nice car.
00:06:10.000 The cars from 1950 were not nearly as nice in terms of the features and things they have
00:06:14.000 as the cars today.
00:06:15.000 Your fridge would be broken half the time.
00:06:17.000 You probably wouldn't have air conditioning by statistics in 1950.
00:06:20.000 No one wants to live in 1950.
00:06:21.000 When everybody has economic nostalgia, just remind them that right now you live in a magical time
00:06:26.000 where you take your cell phone, which is a magical device that connects
00:06:29.000 to a cloud in the sky, a magical cloud, and then that magical cloud allows you
00:06:34.000 to buy any product on earth sourced from 10 different countries and arrives at your door
00:06:37.000 in two days.
00:06:39.000 Anybody in all of human history looked at that and they think they're living in some sort of magical universe.
00:06:43.000 And you're sitting here being like, I wish it were the 1950s again in industrial policy.
00:06:46.000 It's ridiculous.
00:06:47.000 We'll get to why this is actually failing in one second because Joe Biden's economy is about to start sliding into recession.
00:06:54.000 I know that everybody's happy talking this thing.
00:06:56.000 Oh, we escaped recession.
00:06:57.000 So first of all, let me point out, Stagnation was always coming.
00:07:00.000 I've been saying for two years now that inflation was not the long-term threat to the United States.
00:07:04.000 Stagnation was the long-term threat to the United States.
00:07:06.000 Joe Biden, when he came into office, was promising that for a decade we would not grow at above a 2% GDP clip.
00:07:11.000 That is not enough to keep up with the kind of debts that we have been assuming as a nation.
00:07:15.000 Stagnation is the problem.
00:07:17.000 And stagnation is created when you remove the innovative sector of the economy and instead you toss it at your friends.
00:07:22.000 Instead you toss it at your political supporters.
00:07:24.000 It's true on every side of the aisle.
00:07:27.000 Free economics creates better products, cheaper products.
00:07:30.000 It creates better jobs, creating those cheaper and better products.
00:07:33.000 You work a better job than your grandpa did.
00:07:36.000 You know what I mean?
00:07:36.000 Nostalgic for the 1950s?
00:07:37.000 Remember, your grandpa was sitting on a line somewhere, riveting for 10 hours a day.
00:07:42.000 Does that sound amazing?
00:07:42.000 You're sitting in an air-conditioned office and whining about how you're getting sciatica from typing.
00:07:47.000 Which one of those jobs is better?
00:07:48.000 Okay, there is no question about this.
00:07:50.000 We'll get to more on this in just one second.
00:07:52.000 First, let's talk about the economy.
00:07:54.000 So, as we've been saying, Joe Biden's economy, not fantastic.
00:07:57.000 Plus, his economic policy, also less than fantastic.
00:08:00.000 This is why I'm diversified at least a little bit into precious metals.
00:08:03.000 Since the turn of the century, the world's dollar supply grew 344%.
00:08:06.000 Each dollar's purchasing power has declined 44%.
00:08:09.000 Leaders around the world are questioning the value of owning an asset with unlimited supply
00:08:13.000 and a steadily declining value, which is why so many people are looking and diversifying into gold.
00:08:17.000 That includes, by the way, the BRICS nations, Brazil, Russia, India, China, and South Africa.
00:08:20.000 They're looking at a new international super currency fully backed by gold or other commodities,
00:08:23.000 which will drive the price of gold up.
00:08:25.000 This is part of their long-term plan to supplant the United States and the dollar
00:08:28.000 as a cornerstone of the global financial system.
00:08:30.000 One of the ways you can protect your IRA or 401k from the fallout is by diversifying with gold from Birch Gold.
00:08:35.000 Historically, gold has been a safe haven in times of high uncertainty.
00:08:38.000 That would be like right now.
00:08:39.000 Birch Gold, the people I trust with my gold investments, protect your savings the same way.
00:08:42.000 Birch Gold has an A-plus rating with the Better Business Bureau.
00:08:44.000 Thousands of happy customers text Ben.
00:08:48.000 Okay, so what is the fallout from this kind of policy, this kind of dumb industrial policy, where we spend oodles and oodles of money on unproductive companies that could not survive in the private markets?
00:09:05.000 Well, the fallout is that places go bankrupt.
00:09:09.000 The fallout is inflationary policy in which you helicopter money all over the place and then you're shocked when all the prices go up.
00:09:15.000 So for example, if you look at Joe Biden's total inflation rate since he became president of the United States, the total inflation rate, like when you actually add all that up, consumer prices since Joe Biden took office are up 16%.
00:09:26.000 That is a huge number.
00:09:28.000 That is a really, really big number.
00:09:30.000 How about real wages?
00:09:31.000 Real wages since Joe Biden took office are down 3.5%.
00:09:35.000 Okay, so that means that your wages went down 3.5% and your prices went up 15%, which means that you now have a delta of 20%.
00:09:43.000 That is a real problem for the vast majority of American consumers.
00:09:46.000 Why?
00:09:46.000 Well, because when you helicopter money all over the place, it gives people the impression they have more money, and then they go and they spend the money, and then they spend the money, and the prices go up.
00:09:54.000 Well, right now, the fallout from this is going to be, eventually, the party comes to an end, and somebody is left without a chair.
00:10:01.000 And some of those places are going to be companies that should never have had money in the first place.
00:10:05.000 So one of Joe Biden's favorite companies was a company called Proterra.
00:10:09.000 Proterra is an electric vehicle parts supplier, and Joe Biden actually spoke about Proterra and the magic of it in 2021.
00:10:14.000 Here's Joe Biden in 2021 talking about the magic of Proterra.
00:10:18.000 Right now we're running way behind China, but you guys are getting us in the game.
00:10:23.000 You guys are getting us in the game.
00:10:24.000 It's going to make a lot of difference.
00:10:26.000 We're going to end up owning the future, I think, if we keep doing what we're doing.
00:10:30.000 When you start making a thousand buses a year, you're going to need more room for your customers, aren't you?
00:10:36.000 Yes, sir.
00:10:38.000 Ah, the electric buses.
00:10:39.000 And as we know, Kamala Harris loves electric buses.
00:10:41.000 This is one of the reasons why the government decided to get behind Proterra back in 2021.
00:10:45.000 Here's Kamala Harris yesterday praising the magic of the electric buses.
00:10:50.000 In places like St.
00:10:52.000 Cloud, Minnesota, CWA workers are building electric buses so people can get where they need to go.
00:11:03.000 Where they need to- Okay, um, there's only one problem.
00:11:06.000 Yesterday, electric vehicle parts supplier Proterra, according to Reuters, filed for Chapter 11 bankruptcy, making it the latest company to go belly up in an industry grappling with supply chain constraints, slowing demand, and a funding drought.
00:11:17.000 Where's that funding drought coming from?
00:11:18.000 It turns out that when you get addicted to government cash, eventually the heroin supply stops coming.
00:11:22.000 The move comes weeks after Lordstown Motors filed for bankruptcy protection and put itself up for sale after failing to resolve a dispute over a promised investment from Foxconn.
00:11:29.000 Proterra's shares nearly halved in value after the ballot.
00:11:32.000 It listed its assets and liabilities in the range of $500 million to $1 billion.
00:11:36.000 The entire market cap of the company is $362 million.
00:11:40.000 In January of 2021, Proterra was valued at $1.6 billion, including debt, in a merger deal with a blank check firm.
00:11:46.000 And it was Joe Biden who was touting this firm.
00:11:50.000 Now, the difference between the government subsidizing a firm and you subsidizing a firm?
00:11:54.000 I've made investments that have gone bust, and I lose the money.
00:11:56.000 When the government makes the investment and then goes bust, you also lose the money.
00:12:00.000 That's the way that it works.
00:12:02.000 And that is why these sort of industrial policies are a fail.
00:12:05.000 Meanwhile, the Bidennomics team, they keep out going out there and proclaiming that everything is going swimmingly when we all know it's not.
00:12:10.000 Here is Kamala Harris lying yesterday saying that wages are up and inflation is down.
00:12:14.000 Well, that all depends on your starting point.
00:12:16.000 If you start from like last month, then that's true.
00:12:20.000 If you start from when Joe Biden became president, it's wildly false.
00:12:23.000 Again, inflation is up almost 16% from when Joe Biden took office.
00:12:26.000 If you're looking at the price rate, if you're looking at wage rates, they're down 4% during that same period in real wages.
00:12:33.000 And by dynamics is working today.
00:12:36.000 The unemployment rate.
00:12:38.000 Okay, here's the evidence.
00:12:40.000 Today, the unemployment rate is near the lowest it has been in over half a century in our country.
00:12:50.000 Wages are up and inflation has fallen 12 months in a row.
00:12:59.000 I love these sorts of talking points.
00:13:00.000 Inflation has fallen 12 months in a row.
00:13:02.000 Okay, which is sort of like saying that you're doing better than you did yesterday, and you're doing better yesterday than you did the day before, and that's because 12 months ago you were hit by a truck.
00:13:15.000 Right?
00:13:15.000 So ever since then, you've been improving.
00:13:17.000 Right?
00:13:17.000 You're missing the part where you got hit by the truck.
00:13:19.000 OK, so you know what would have been amazing is if the inflation rate had not been at like 11%.
00:13:23.000 That would be amazing.
00:13:24.000 And we brought it down month over month.
00:13:25.000 By the way, when you bring it down month over month, that still means that the inflation is continuing.
00:13:29.000 It's just the rate is not changing in a positive direction.
00:13:33.000 That's like you're filling the bathtub and the water is still going up.
00:13:35.000 It's just filling a little bit more slowly than it was a minute ago.
00:13:39.000 But if they lie to you often enough, they figure that maybe they'll get away with it.
00:13:42.000 Because again, they can just point to, whenever you have a system where you can point at concentrated winners and disparate losers, it's much easier to pitch.
00:13:49.000 This is the beauty of industrial policy and corporatism.
00:13:52.000 You can point at individual companies, you say, ah, this guy's a winner.
00:13:55.000 And then you say, what did you lose?
00:13:56.000 You lost a couple of bucks.
00:13:57.000 He had a chance at winning, like amazing.
00:13:59.000 The problem is, when you have this many disparate costs, they start to add up.
00:14:03.000 And we're seeing that in spades right now for the American wage earner.
00:14:07.000 We're seeing this for American businesses.
00:14:09.000 And that the future of American growth is very, very precarious right now.
00:14:13.000 We'll get to more on that in just one second.
00:14:14.000 First, it's time for our Meat of It question, sponsored by Good Ranchers, where we get to the meat of a hard-hitting weekly question.
00:14:19.000 The question is, with all the recent investigations into both Trump and Biden, which American political family do you think is the most corrupt?
00:14:26.000 Well, I mean, this is a long list of corrupt political families.
00:14:29.000 So, you'd have to put up there the Kennedys.
00:14:32.000 The Kennedy family had some serious, serious corruption issues going all the way back to Joseph.
00:14:37.000 Also going back to, you know, Teddy Kennedy leaving a lady dead in a river.
00:14:41.000 You'd have to look at the Clinton family.
00:14:42.000 Both Bill and Hillary, wildly corrupt.
00:14:44.000 Selling pardons for cash and all the rest of it.
00:14:46.000 And of course, the Biden family is extraordinarily corrupt, as we've been talking about at length.
00:14:51.000 While some political families may attempt to disguise their foreign business dealings as completely innocent, Foreign meat can disguise itself as a product of the United States.
00:14:57.000 Yes, grocery store shelves are riddled with meat from other countries disguised in a product of the U.S.
00:15:01.000 label.
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00:15:25.000 Okay, so, the American consumer is going to start feeling it pretty quickly now.
00:15:30.000 Because the money is running out.
00:15:32.000 And you can see it.
00:15:32.000 It's starting, actually, forget about the consumer.
00:15:34.000 Look at the businesses.
00:15:35.000 And I pointed out, And that there is, in fact, a different measure of economic growth, different than GDP.
00:15:43.000 And that measure of economic growth doesn't look just at consumer and product spending, which is how Keynesians would look at it.
00:15:49.000 This is why they always believe that government spending is going to jog GDP, because government spending goes into consumer growth.
00:15:54.000 If the government spends a lot of money on a product, then this is called economic growth.
00:15:58.000 That's really not the way that it should work.
00:16:01.000 There's a better measure called gross output that we've been talking about.
00:16:04.000 Gross output is how businesses are investing and how businesses are spending.
00:16:09.000 And what you see is that gross output remains pretty precarious right now.
00:16:15.000 It's not looking fantastic because businesses are pulling back.
00:16:18.000 And you're seeing this in pretty much every area of American life right now.
00:16:22.000 So for example, According to the Wall Street Journal, new lending by mortgage REITs has now dried up.
00:16:27.000 So if you are worried about commercial real estate taking a dive, you should be worried.
00:16:30.000 Blackstone Mortgage Trust and KKR Real Estate Finance Trust, two of the biggest mortgage real estate investment trusts, have now halted loans to any new borrowers.
00:16:38.000 Hey, that is a serious problem.
00:16:39.000 That means that liquidity is drying up.
00:16:40.000 When liquidity dries up, it means that people can't invest it.
00:16:43.000 While these firms continue to provide financing related to existing loans, they're not originating any new loans.
00:16:47.000 That's also true of Starwood Property Trust.
00:16:49.000 Mortgage REITs, which lend to property owners instead of buying and developing real estate, like equity-oriented REITs, typically originate an average of about $10 billion in loans every quarter.
00:16:58.000 Hardly any new loans are being made right now, which means that you're going to see markets start to decline in real estate.
00:17:04.000 Well, stocks declined pretty significantly yesterday after the banks were downgraded by Moody's.
00:17:11.000 So, according to the Wall Street Journal, weak Chinese export data, which, by the way, is a reflection of the American consumer market, because we're the ones who are actually buying Chinese product.
00:17:18.000 Weak Chinese export data, a dimmer financial outlook from UPS, and a credit downgrade for 10 smaller U.S.
00:17:23.000 banks sends stock indices down on Tuesday.
00:17:25.000 Government bond prices climbed, pushing yields down.
00:17:27.000 That means people are trying to invest in government bonds at this point and get away from the stock market, which is a sign of economic weakness.
00:17:33.000 Bonds are getting more attractive compared with stocks lately, given higher yields and the risk that recession hits corporate earnings in the future.
00:17:39.000 Financial shares were stung when Moody's lowered credit ratings for 10 smaller U.S.
00:17:41.000 banks and said it was reviewing ratings for six larger ones, including Bank of New York, Mellon, and U.S.
00:17:45.000 Bancorp.
00:17:46.000 The move renewed concerns over tighter lending and the banking system's ability to withstand sharply higher interest rates.
00:17:51.000 Again, if the banks invested a lot in bonds two years ago, they're absolutely jacked.
00:17:54.000 This is what happened with Silicon Valley Bank.
00:17:56.000 They invested a lot in bonds, figuring that the government was a safe place to put the money, and then the government had to raise those interest rates radically on the new bonds, making the old bonds essentially worthless.
00:18:03.000 That's what bankrupted Silicon Valley Bank.
00:18:06.000 There are some other banks that have similar math.
00:18:09.000 So we are looking right now at persistent high inflation in Europe, tight financial conditions in Asia, a slow recovery.
00:18:17.000 All of this is negative stuff.
00:18:18.000 China is slipping into deflation right now.
00:18:21.000 According to the Wall Street Journal, tepid consumer demand and rising economic concerns in the world's second-largest economy have now tipped China into a deflationary territory for the first time in two years, adding pressure on Beijing to act more aggressively to avoid a deepening economic malaise.
00:18:33.000 Instead of experiencing a surge in prices after lifting the COVID-19 pandemic curbs late last year, China is now suffering an unusual bout of falling prices for a range of goods, from commodities like steel and coal to daily essentials and consumer products like vegetables and home appliances.
00:18:45.000 So, what happens to China?
00:18:46.000 Well, China is heavily debt-burdened.
00:18:49.000 Well, what happens to the United States?
00:18:50.000 It's also heavily debt-burdened.
00:18:52.000 Now, we are still a better bet than China.
00:18:54.000 We're still going to be able to sell our bonds.
00:18:56.000 But just remember, when we sell bonds that have an interest rate of 5.5%, 5.75%, all we're really doing is saying that the government in 10 years is going to have to pay off all of that interest.
00:19:07.000 Which is going to eat up our entire government budget right now.
00:19:10.000 So we have in this country extraordinary levels of government debt.
00:19:13.000 That is paired with extraordinary levels of personal debt.
00:19:15.000 All of this is a tsunami waiting to happen.
00:19:18.000 According to Axios, U.S.
00:19:20.000 consumer credit card loans and other revolving plans as a share of GDP are now 3.7% of all GDP.
00:19:27.000 U.S.
00:19:27.000 credit card debt hit a trillion dollars for the first time toward the end of July.
00:19:31.000 This rise reflects a number of factors, including rising consumer confidence and spending power amid cooling inflation.
00:19:36.000 But again, people are spending on that credit card, which means a bunch of people are going to go bankrupt because not everybody pays off that credit card.
00:19:43.000 There are 70 million more credit card accounts open now than pre-pandemic in 2019, according to Fed researchers.
00:19:49.000 So Americans are spending an enormous amount of money on their credit cards.
00:19:53.000 Rising balances may present challenges for some borrowers.
00:19:55.000 The resumption of student loan payments this fall may add additional financial strain for many student loan borrowers, according to Fed researchers as well.
00:20:02.000 It's all fun and games until the carousel stops.
00:20:05.000 There's a good account on Twitter called the Cobacy Letter, which is a commentary on global capital markets.
00:20:11.000 The U.S.
00:20:12.000 currently has $17.1 trillion in household debt, $12 trillion in mortgages, $1.6 trillion in auto loans, $1.6 trillion in student loans, $1.0 trillion in credit card debt.
00:20:22.000 Total mortgage debt is more than double the 2006 peak.
00:20:25.000 Now, all of this is super risky.
00:20:28.000 It relies on the government to bail everybody out.
00:20:30.000 And when those bailouts stop, which eventually they will, then people are going to be in a really hard situation.
00:20:35.000 That's when you'll get more calls for more government spending, more government regulation.
00:20:39.000 This is the beauty of being a corporatist.
00:20:40.000 When your policies fail, you just call for more cowbell.
00:20:43.000 You just blame capitalism and suggest that it was capitalism's fault that all this stuff happened when it wasn't capitalism's fault in the first place.
00:20:51.000 We'll get to the impact of all of this on the 2024 race momentarily first.
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00:21:59.000 Okay, one of the ways that you can see that the easy money is drying up is because very foolish corporate policies are also starting to dry up.
00:22:07.000 Those are the preserve of the privilege.
00:22:09.000 In the same way that environmentalism is a preserve of the global privilege, the only people who care about the environment are people who can afford to do so.
00:22:16.000 They're not people who are living in Africa who are burning dung for fuel and trying to make sure that their one-year-old stays alive.
00:22:22.000 It's a bunch of rich people living in the West who are deeply worried about the polar bears and the Arctic ice caps.
00:22:27.000 Well, the same thing happens with regard to the economy.
00:22:29.000 When you have loose money policies, bad companies get money.
00:22:32.000 And bad corporate policies get promulgated.
00:22:33.000 Well, now you can see, again, this is actually, it's a good sign for the future of corporate America, but it's also a sign of an economic downturn that all these corporate firms are now getting rid of ESG and DEI.
00:22:43.000 ESG and DEI are just dragged on the profitability of these corporations.
00:22:49.000 And corporations were able to do that and they were able to virtue signal with their money and with the stock market.
00:22:54.000 They were able to do that so long as the money was still flowing.
00:22:57.000 When the money stops flowing, the first thing to go is all the virtue signaling.
00:23:01.000 Which is why the Wall Street Journal is reporting today that conservative legal activists have successfully challenged the use of affirmative action by universities.
00:23:07.000 Now they're going after diversity initiatives widely deployed across American corporations.
00:23:10.000 Some companies are already reconsidering their efforts.
00:23:13.000 In lawsuits, shareholder letters, and petitions to the EEOC, activists are using some of the same tactics that progressive groups have used to advance diversity, equity, and inclusion, or DEI programs.
00:23:22.000 They are arguing companies are violating rules against race and sex discrimination, including those drawn from legislation designed to secure the rights of Black Americans.
00:23:30.000 Comcast has settled the case accusing it of illegally favoring minority-owned small businesses.
00:23:34.000 Amazon has been sued in Texas over a program offering special benefits to Black or Latino-owned delivery service contractors.
00:23:40.000 Starbucks is being sued as well.
00:23:43.000 And as you are seeing, S&P is now dropping ESG scores from debt ratings, which is exactly as it should have been in the first place.
00:23:49.000 But when the money was free and loose, you could be just as lefty as you wanted to be.
00:23:52.000 It's when the money starts to get tight that everybody turns into a conservative again.
00:23:56.000 According to The Financial Times, S&P Global has now stopped handing out scores to corporate borrowers on ESG criteria.
00:24:03.000 The debt rating agency has since 2021 published scores from 1 to 5 for a company's exposure to each element of environmental, social, and governance risks.
00:24:11.000 Payments company Visa, for example, had received a 2 for E and S and a 3 for G. First Energy, a high utility that has been charged with corruption, received a 4 score for G, S&P's second lowest grade.
00:24:23.000 Late last week, S&P reversed course, saying only taxed non-numerical scores would comprise analysis of a company's ESG matters.
00:24:30.000 The rating agency said, quote, which means effectively speaking, it's not going to matter anymore.
00:24:33.000 in our credit rating reports are most effective at providing detail and transparency
00:24:36.000 on ESG credit factors material to our rating analysis.
00:24:39.000 So they are going to continue doing the rating analysis, but they're not gonna give it a number,
00:24:43.000 which means effectively speaking, it's not gonna matter anymore.
00:24:46.000 Moody's is still rating ESG criteria on a one to five scale.
00:24:49.000 So why is this happening?
00:24:52.000 Well, supposedly it's because of evil Republican pressure.
00:24:54.000 It's not because of evil Republican pressure.
00:24:56.000 It's because corporations are saying, well, you know what I don't need in order to be profitable?
00:24:59.000 Your ESG garbage.
00:25:01.000 And in fact, investors are looking and they're going, I just want to invest in the company that's going to make me money, in the company that is profitable and run well.
00:25:08.000 And you know what I don't care about?
00:25:09.000 Whether they are showing diversity HR videos to their employees.
00:25:14.000 I don't care about that.
00:25:15.000 That makes no difference to me.
00:25:16.000 Does the company earn or does the company not earn?
00:25:18.000 Does it provide a good product or service or does it not?
00:25:21.000 So S&P is walking this stuff back.
00:25:22.000 And again, that's the first indicator that we're about to go into a fairly serious recession.
00:25:27.000 Because again, when you look at the stuff that, just like you and your household, all your frivolous spending, when it's an economic downturn, when somebody loses a job, the first thing to go is your night out at the movies and your restaurant trips.
00:25:38.000 Well, when it comes to corporate America, the first thing to go is ESG and DEI when the cuts come.
00:25:44.000 Corporate earnings are down.
00:25:45.000 That means the economy is going to drop.
00:25:48.000 Just get ready for it.
00:25:49.000 And while Joe Biden is happy talking this thing, it would be important to start protecting yourself.
00:25:56.000 With all of that said, Republicans would be poised to take advantage of this if they knew how to speak in free market terms, but Republicans have left that far behind.
00:26:03.000 And this is a serious problem.
00:26:05.000 In the effort to win over people in middle America, the so-called Rust Belt, The suggestion has been made that those people are desperate for manufacturing policy that quote-unquote reshores jobs and all that is is nice sounding stuff that effectively means subsidization for some at the expense of others.
00:26:22.000 That's not actually by the way.
00:26:24.000 Why Republicans are winning in Ohio and Indiana.
00:26:27.000 The reason Republicans are winning in Ohio, Indiana, Iowa, all these Midwestern Rust Belt states, it has very little to do with manufacturing policy, because guess what?
00:26:34.000 Most of those jobs didn't come back.
00:26:35.000 They all just shifted over, right?
00:26:36.000 Pittsburgh used to be a steel town, and now Pittsburgh is actually a healthcare town.
00:26:41.000 Jobs change.
00:26:41.000 It doesn't mean people don't get lost in the shuffle, which is horrible.
00:26:44.000 We have to find better ways to transition them to new careers.
00:26:46.000 We have to find better opportunities for them.
00:26:48.000 But the idea that you're bringing back like the entire manufacturing base of the United States is something that both the Republican Party and Democratic Party keep saying.
00:26:54.000 And it's not going to happen in large swaths of the manufacturing economy in the same way that agriculture used to be a mainstay of the American economy.
00:27:01.000 And now agriculture is worked by a tiny fraction of the workforce in the United States.
00:27:05.000 You don't hear people saying, well, you know what?
00:27:07.000 All those farmers who lost jobs, we need to find ways for them to go back to farming.
00:27:11.000 That's just not something people say anymore, and the reason for that is economies become more innovative, they become more efficient.
00:27:16.000 The actual reason, by the way, that Republicans are winning in red states has much more to do with the bizarre cultural policies practiced by left-coast elites than it has to do with industrial policy in the Midwest.
00:27:28.000 So as the Republican Party embraces the idea that entitlement programs should never be messed with, that we should continue spending just like Democrats do, only on different people, It's a race to the bottom at that point.
00:27:38.000 It really is.
00:27:39.000 It'd be nice if somebody in American politics had the actual balls to talk about the beauties of the free market, which is what has made America the most prosperous country in world history bar none.
00:27:48.000 Without a doubt.
00:27:50.000 Instead, we're just going to blow out our debt and we're going to continue ignoring all the systemic problems of the economy until we hit a cliff, at which point we hit a cliff.
00:27:56.000 And then, because America is perceived as capitalist but actually is corporatist, at that point they blame the free markets and they call for more government interventionism and it's a spiral to the bottom.
00:28:04.000 So, if that sounds kind of dark, it's because it is.
00:28:07.000 Again, it would be really nice if somebody in political power had the capacity to speak clearly and cogently about the economy.
00:28:13.000 But that's likely not what we're going to get.
00:28:15.000 Instead, it's going to be a race of personalities.
00:28:18.000 Speaking of which, apparently Carrie Lake is now preparing another Senate run.
00:28:24.000 She ran for governor.
00:28:25.000 She lost to a wet rag in Katie Hobbs in Arizona.
00:28:28.000 Everybody thought Carrie Lake was going to win that race.
00:28:30.000 They thought she was going to win that race because again, Katie Hobbs is a terrible candidate, like a truly awful candidate.
00:28:36.000 Carrie Lake somehow found a way to lose the race by essentially saying to a bunch of people in the middle, I don't want you to vote for me.
00:28:41.000 I mean, she actually said that pretty much.
00:28:43.000 Now, she has declared that she won.
00:28:46.000 And if this is the Republican plan for victory, I gotta say, it's really stupid.
00:28:50.000 Declaring that you won a game that you lost does not make you the winner of that game, nor should it make you the favorite for the next game.
00:28:56.000 There is no game of which I am aware that you claiming victory makes you the victor in the game.
00:29:00.000 If you just declare that you won a basketball game after you clearly lost a basketball game, does that now make you a winner who moves on to the next round?
00:29:09.000 And yet this seems to be denial is not just a river in Egypt.
00:29:12.000 Denial is apparently now a Republican electoral strategy.
00:29:14.000 If you pretend that you didn't lose an election and then you say a bunch of stuff about it that is unverifiable, then we give you the benefit of the doubt because we hate the left so much that we have decided that everything they say is a lie up to and including election results.
00:29:26.000 That's not a good way to win a reelect effort.
00:29:28.000 The Arizona Republican Party is destroying itself right now, and it's a disaster area for the Republican Party nationally, because if Republicans lose Arizona, which state do they make up in a presidential?
00:29:37.000 Remember, until about five years ago, Arizona was entirely red.
00:29:41.000 If you go back to, like, 2016, the senators from Arizona were John McCain and Jeff Flake.
00:29:48.000 It was two Republicans, and Doug Ducey was the Republican governor of Arizona.
00:29:51.000 And now, there's a Democratic senator— there are two Democratic senators and a Democrat governor in Arizona.
00:29:57.000 So, is the Arizona Republican Party shifting back toward the sort of maverick state status that actually allows it to win in the state?
00:30:03.000 Nope.
00:30:03.000 Apparently, Carrie Lake is not only running in this Senate race, she is now the far-and-away favorite in the primary race there.
00:30:10.000 Which, I gotta say, is just wild.
00:30:13.000 It's wild, especially because this is a super vulnerable seat for Democrats.
00:30:17.000 Kyrsten Sinema, the current independent senator in Arizona, she is running against Ruben Gallego.
00:30:23.000 Ruben Gallego right now is drawing a plurality of the vote.
00:30:26.000 Sinema is drawing some of the Republican vote.
00:30:28.000 And, well, if you had a strong Republican candidate who, say, didn't alienate independents, maybe fewer of those independents would go over to Kyrsten Sinema.
00:30:36.000 Right now, Kyrsten Sinema's winning like 37-38% of the vote, Gallego is at like 40-something, and Carrie Lake, if she were in that race, is in the 20s.
00:30:43.000 Okay, that ain't gonna do it.
00:30:46.000 And yet, Republicans in Arizona seem so obsessed with the idea that if they just keep relitigating 2020 and 2022 and presumably 2024 for the rest of time, that this will be an electoral strategy that leads to- I just don't understand how this has ever worked.
00:30:58.000 Name a situation in your life where looking back on a thing and just Gnawing on it over and over and over has made your life better.
00:31:06.000 Name literally one situation in your own life where something has gone wrong for you and you gnaw on it.
00:31:11.000 You just sit there and you just obsess about it endlessly.
00:31:14.000 And this has now made your life better going forward.
00:31:16.000 And yet this is what Republican Party seems to be doing not only over 2020, but over over 2022 as well now.
00:31:22.000 According to Axios, a potential three-way battle with Kyrsten Sinema running as an independent exposes deep divisions in both parties on whether to appeal to their bases or independence.
00:31:31.000 Lake still has not conceded her gubernatorial loss in 2022.
00:31:33.000 The race offers a state-level experiment on the implications of a possible three-way presidential contest because Sinema is playing the sort of no-labels candidate right now.
00:31:44.000 If Lake wins GOP's primary next August, she will likely face down Gallego and Sinema in the general election.
00:31:51.000 Sinema has not officially announced whether she will seek re-election, but she has a bunch of cash on hand.
00:31:55.000 Now again, Republicans cannot afford to lose Arizona.
00:31:58.000 It's this simple.
00:32:01.000 Maybe it feels good to sort of stew in these issues.
00:32:04.000 But I'm just wondering, again, whether it's better to stew in them or it's better to win.
00:32:09.000 Republicans could do the same thing in Georgia.
00:32:10.000 I noticed that, for example, Brian Kemp won going away as governor of Georgia.
00:32:14.000 Won going away.
00:32:17.000 Even as Republicans stewed over 2020 in Georgia, Brian Kemp won running away in Georgia over Stacey Abrams, who was the scourge of Georgia in 2020, supposedly.
00:32:27.000 So, here are your choices.
00:32:29.000 You can either sit there and you can gnaw on the past, or you can win.
00:32:31.000 There's no third choice here.
00:32:34.000 Which is why, again, if Donald Trump is the nominee, he's gonna need to not re-litigate 2020 as his key motivation to victory.
00:32:41.000 That is not going to motivate independence, just not.
00:32:44.000 No one wants to re-litigate that other than the Republican base.
00:32:47.000 And it may feel good, and you may believe you're right, and maybe you are right!
00:32:51.000 Okay, I don't think the proof is there.
00:32:52.000 I don't think the evidence is there that like votes were tallied in the middle of the night.
00:32:56.000 False votes were bused into Fulton County by the box and then loaded into machines.
00:33:00.000 I think the evidence does not exist for that, but let's even say you're right.
00:33:03.000 Question.
00:33:04.000 If you just say that over and over, does that make Donald Trump president?
00:33:07.000 Because what Carrie Lake is doing on a state level is what Donald Trump is doing on a national level.
00:33:11.000 And the thing is, Donald Trump, if he's the nominee, he could redeploy and go against Biden.
00:33:15.000 He does have that capacity, but he's going to need the incentive structure to do that.
00:33:18.000 That incentive structure is going to come from the Republican base, not from the media, who wish to wait.
00:33:23.000 The media want nothing but Donald Trump relitigating 2020 for 2024.
00:33:26.000 That is their favorite thing.
00:33:28.000 It means that Donald Trump does not become president of the United States in 2024 if he does that.
00:33:32.000 We'll get to more on this in just one second.
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00:34:58.000 Okay, meanwhile, So, when it comes to Donald Trump's race, he can run one of two races.
00:35:03.000 One of them, he could win.
00:35:04.000 One of them, he is almost sure to lose.
00:35:05.000 The one that he can win is the one where everyone just highlights Joe Biden's failures.
00:35:08.000 We've been talking about it incessantly.
00:35:10.000 Joe Biden is a failed president.
00:35:11.000 He's a terrible president.
00:35:12.000 There is not a thing that he has touched that has not turned to garbage.
00:35:15.000 Well, here was Donald Trump on that topic yesterday, and this is totally fine stuff.
00:35:19.000 Everyone can see the stunning contrast between our incredible success and Joe Biden's horrendous failures, and that's one reason why we're leading so big in the polls.
00:35:29.000 That's really the reason, I think.
00:35:30.000 It's more enthusiasm now than 2016 or 2020, because you've seen how incompetent these people are.
00:35:40.000 It's horrible.
00:35:43.000 Okay, so all of that is fine.
00:35:45.000 If, however, Donald Trump runs on the basis of his legal cases, it's not likely to go amazing.
00:35:49.000 So yesterday, he said, I'm not in Iowa.
00:35:51.000 There's a reason I'm not in Iowa.
00:35:52.000 It's because of my legal cases.
00:35:55.000 How can my corrupt political opponent, crooked Joe Biden, put me on trial during an election campaign that I'm winning by a lot, but forcing me nevertheless to spend time and money away from the campaign trail in order to fight bogus, made-up accusations and charges?
00:36:12.000 That's what they're doing.
00:36:14.000 I'm sorry, I won't be able to go to Iowa today.
00:36:16.000 I won't be able to go to New Hampshire today because I'm sitting in a courtroom on bullsh** because his attorney general Okay, again, I agree with him on a lot of this stuff.
00:36:33.000 But is that going to win a presidential election with independents?
00:36:35.000 Is that going to be the line?
00:36:36.000 If the line is Joe Biden's a terrible president, he can win.
00:36:38.000 If the line is I can't campaign today because I'm in court, that is not a winning line.
00:36:44.000 And no matter how much Republicans are going to have to get out of their own heads, they really are.
00:36:47.000 And this is true on nearly every issue.
00:36:49.000 Republicans are insider.
00:36:50.000 Again, I get the lack of credibility of the left.
00:36:53.000 I also think they lie frequently.
00:36:56.000 Near-incessantly.
00:36:57.000 I also think that they say things that are not true, that they twist the narrative, that they do things that are truly bad.
00:37:02.000 I agree with all of that.
00:37:03.000 It also does not mean that if we are constantly looking in the mirror and just seeing what we want to see, then we are going to come away with an accurate reflection of what politics in America looks like.
00:37:13.000 I'll give you another example.
00:37:13.000 So last night, there was a special election in Ohio.
00:37:16.000 It was a special election on what they called Issue 1 on the Ohio ballot.
00:37:20.000 This election was about whether to change the Ohio State Constitution to make it so that amendments basically required a supermajority in order to be passed.
00:37:28.000 So if you want to change the Ohio State Constitution right now, you need just a sheer majority.
00:37:31.000 But instead of that, they want to make it a supermajority.
00:37:33.000 This is what was up for debate.
00:37:34.000 However...
00:37:35.000 This debate actually wasn't about the constitutional amendments.
00:37:38.000 It was about the Ohio Republican Party doing that and the left saying what they actually are attempting to do is prevent you from enshrining Roe versus Wade in the Ohio state constitution.
00:37:46.000 What they really want to do is just ban abortion in state law and then make it impossible for us to overturn because they've changed the rules of the constitutional amendment.
00:37:53.000 So that's what was on the ballot last night.
00:37:56.000 And here's how the Associated Press described the results.
00:37:58.000 So first of all, the Ohio resolution to essentially stabilize the Ohio state constitution, it went down to flaming defeat 57 to 43.
00:38:06.000 Here's how the AP described it, quote, Ohio voters on Tuesday resoundingly rejected a
00:38:10.000 Republican-backed measure that would have made it more difficult to change the state's
00:38:12.000 constitution, setting up a fall campaign that will become the nation's latest referendum
00:38:16.000 on abortion rights since the U.S.
00:38:17.000 Supreme Court overturned nationwide protections last year.
00:38:20.000 The defeat of Issue 1 keeps in place a simple majority threshold for passing future constitutional amendments, rather than the 60% supermajority that was proposed.
00:38:27.000 Its supporters said the higher bar would protect the state's foundational document from outside interest groups.
00:38:31.000 Voter opposition to the proposal was widespread, even spreading into traditionally Republican territory.
00:38:35.000 In fact, in early returns, support for the measure fell far short of Donald Trump's performance during the 2020 election in nearly every county.
00:38:42.000 So as Jazz Shaw points out over at Hot Air, the word abortion appeared nowhere in the text of issue one.
00:38:47.000 It was a proposal to raise the bar for amending the state constitution to 60% support rather than simple majority.
00:38:52.000 That's already in place in a lot of other states.
00:38:54.000 However, however, it was read by the voters as an attempt to basically protect pro-life positions.
00:39:02.000 He says, even a quick glance at the national polls will tell the same story about the state of play in American politics today.
00:39:06.000 Joe Biden is among the least popular presidents in modern American history.
00:39:09.000 Recent investigations have made it increasingly clear he is almost certainly among the most corrupt.
00:39:13.000 Nobody approves of him.
00:39:15.000 But yesterday's results in Ohio are all the proof you need.
00:39:17.000 Such a result is not going to happen like a giant romp over Joe Biden.
00:39:21.000 And that Biden could still hold on to the White House.
00:39:22.000 That's because if we allow Democrats to make next year's election all about abortion, their voters and a number of moderates and independents will ignore massive failures and the deplorable state of their country, hold their noses, and vote to keep the GOP out of power at any cost.
00:39:32.000 There is no more pro-life person in America than I am.
00:39:35.000 Okay, I am fully pro-life all the way back to point of conception, no exceptions for rape or incest.
00:39:41.000 Now, I'm as pro-life as it is possible to be.
00:39:43.000 Also, politics exists.
00:39:45.000 Republicans saying over and over to themselves that if we take the hardest pro-life position in every state in the union, this will lead to electoral victory is dumb.
00:39:51.000 It is not correct.
00:39:52.000 You're going to have to gradually convince the American people of the rightness of your positions.
00:39:57.000 Because if you don't, the backlash is going to come strong from the other side.
00:40:00.000 You're seeing this in state election after state election.
00:40:02.000 It's what's happening in Kansas, for example.
00:40:04.000 Where an overwhelmingly Republican population voted to actually enshrine abortion in Kansas constitutional law.
00:40:13.000 If Republicans feel like they are the only voters in the room, if they feel like they vote on the basis of Carrie Lake's race in 2020, or they vote on the basis of Donald Trump being victimized by law enforcement, or they vote for their nominees on the basis of who takes the most pro-life position and promises they're going to ram it down in law even without any political support for that position, they're going to lose.
00:40:32.000 Okay, gravity does exist.
00:40:34.000 The left has been assuming with the economy gravity doesn't exist.
00:40:36.000 And the left for a long time, with regard to things like crime, assumed that gravity did not exist.
00:40:40.000 Gravity continues to exist in the political realm.
00:40:43.000 Reality continues to exist in the political realm.
00:40:45.000 Now, I'll be honest with you and I'll tell you where people are straying from their central principles.
00:40:50.000 It is 100% true that if you go for a 10-week abortion ban, that is not a full abortion ban, nor it is remotely sufficient to protect human life.
00:40:57.000 It is also true, if that's the best you can get, that may be the best you can get.
00:41:01.000 Now, there are a lot of people who make a great living telling you that if you don't go for broke all the time, every time, that you're never gonna get anywhere.
00:41:08.000 And it's precisely the opposite.
00:41:09.000 If you go for broke every time, all the time, you're going to lose from here till the end of time.
00:41:15.000 Because going for broke every so often may result in the victory, but the other 98% of the time, it results in loss.
00:41:23.000 And that other 98% of the time, it matters an awful lot more.
00:41:26.000 It really does.
00:41:28.000 Victories are won incrementally.
00:41:29.000 The pro-life movement defeated Roe vs. Wade over the course of 50 years of building up an entire legal movement specifically dedicated to interpreting the Constitution as originally intended.
00:41:40.000 That took 50 years of incremental movement.
00:41:42.000 Do you think that tomorrow, if we just go for broke, that magically the country is going to snap into a place of virtue?
00:41:48.000 I don't.
00:41:49.000 I think it's a long, hard slog.
00:41:50.000 I think it's a long, hard process of convincing people, and working with people, and yes, taking incremental gains, and recognizing the gains for what they are, while also recognizing what they are not.
00:41:59.000 That is what political honesty would look like.
00:42:02.000 But very few people on either side of the political aisle actually do political honesty these days.
00:42:05.000 Instead, their business is telling you about how pure they are on every form.
00:42:10.000 And they don't worry about winning.
00:42:11.000 Instead, what they worry about is can they wrong-foot the other guy and make it look as though he's actually pusillanimous on an issue, when what he's really saying is the only way to... I agree with you on the issue.
00:42:20.000 The only way to get to the point where you win is by pursuing these very practical steps.
00:42:25.000 Or alternatively, you can shout at the win and then you can lose.
00:42:27.000 Maybe it feels good to shout at the win.
00:42:29.000 Feeling good is not politics.
00:42:31.000 Feeling good is not victory.
00:42:32.000 Victory is victory and there's no substitute for it.
00:42:34.000 All right, meanwhile, speaking of left-wing liars, the Advanced Placement Board, the college board, they're just liars.
00:42:40.000 They lie on...
00:42:41.000 On the regular.
00:42:42.000 They lie routinely.
00:42:43.000 So they lied about their AP African American History course in Florida, suggesting that it couldn't even be taught in Florida because you can't teach black history in Florida.
00:42:50.000 It's just crap.
00:42:51.000 It's not true at all.
00:42:52.000 Well now, the College Board has announced that it's going to pull its AP Psychology class from Florida schools.
00:42:57.000 It's not Florida banning the AP Psychology class.
00:43:00.000 Florida did not do that.
00:43:01.000 It is the college board saying we can't teach our AP psychology class in Florida schools.
00:43:07.000 They said, quote, Florida Department of Education has effectively banned AP
00:43:10.000 psychology in the state by instructing Florida superintendents that teaching
00:43:13.000 foundational content on sexual orientation and gender identity is
00:43:16.000 illegal under state law.
00:43:18.000 Um, that is a lie.
00:43:19.000 Here's what the Florida Department of Education says, quote, So it's the AP that is removing the course, not Florida.
00:43:23.000 Florida did not say you can't teach AP.
00:43:25.000 AP said you can't teach AP in Florida.
00:43:26.000 Why?
00:43:26.000 psych course. The other advanced course providers, including the International Baccalaureate
00:43:30.000 program, had no issue providing the college credit psychology course. So it's the AP
00:43:33.000 that is removing the course, not Florida. Florida did not say you can't teach AP. AP
00:43:37.000 said you can't teach AP in Florida. Why? Well, according to the AP standards on psychology,
00:43:45.000 one of the standards is, describe how sex and gender influence socialization and other
00:43:49.000 aspects of development.
00:43:50.000 And also, articulate the impact of social and cultural categories on self-concept and relations with others.
00:43:55.000 Now, there's nothing there that says that you have to teach a bunch of weird gender theory garbage.
00:44:01.000 You could not, right?
00:44:02.000 You could just teach that sex, of course, impacts socialization because girls are girls and boys are boys.
00:44:07.000 And gender is deeply connected with sex.
00:44:09.000 You could totally teach that in the context of the AP psych course.
00:44:12.000 But what AP is saying is that we don't want you to teach that.
00:44:15.000 So as a columnist for The Federalist points out, the College Board is equating the limits placed on teaching these two skills with removing a cornerstone of the course.
00:44:21.000 This is like saying that neglecting to explain all the unconventional ways punctuation is used for rhetorical purposes somehow makes the whole class illegitimate.
00:44:29.000 And the real reason for this is because the APA, the American Psychological Association, which has always been and is a deeply, deeply partisan political organization.
00:44:38.000 Groups like that are arguing that AP Psych should actually include more content about gender and sexuality.
00:44:44.000 The APA CEO, Arthur Evans, says, quote, an advanced placement course that ignores the decades of science studying sexual orientation and gender identity would deprive students of knowledge they will need to succeed in their studies in high school and beyond.
00:44:53.000 So first of all, I guarantee you that what they're teaching in AP Psych does not actually reflect the best science.
00:44:57.000 I promise you.
00:44:58.000 Because the best science says, with regard to, for example, sexual orientation, that there is no genetic marker for sexual orientation.
00:45:05.000 That is what the actual science says right now.
00:45:07.000 There is no clear and convincing genetic marker for sexual orientation.
00:45:11.000 That is what a study of hundreds of thousands of human genomes by the Human Genome Project found.
00:45:14.000 Will that appear in the AP Psych course?
00:45:16.000 I have serious doubts that will appear because it conflicts with their entire narrative.
00:45:20.000 How about gender identity?
00:45:21.000 There is no, none convincing science that there is something called a female brain in a male body.
00:45:27.000 That is a myth.
00:45:28.000 That is a Gnostic myth.
00:45:29.000 It does not exist in science.
00:45:30.000 Because no one can actually label what a female brain looks like in a male body.
00:45:34.000 Because the brain is part of the body.
00:45:37.000 It's nonsense.
00:45:38.000 Will they teach it anyway?
00:45:39.000 That's what they want to teach.
00:45:41.000 So Florida's just saying that we can't actually teach that stuff.
00:45:43.000 And the AP is saying, well, you must teach that stuff.
00:45:45.000 So is that Florida's fault or is that the AP's fault?
00:45:47.000 Again, Florida didn't ban the AP course.
00:45:49.000 AP banned the AP course.
00:45:51.000 So stop blaming Florida for actually making sure that its kids aren't indoctrinated.
00:45:54.000 Instead, blame the AP for attempting to indoctrinate the kids.
00:45:57.000 Okay, time for some things I like.
00:45:58.000 So things that I like today.
00:46:00.000 So there is a book that was enormous in the 1970s.
00:46:04.000 It's called Zen and the Art of Motorcycle Maintenance.
00:46:07.000 It was written by a guy who used to be sort of an English composition professor and then got very into psychology, went to University of Chicago.
00:46:16.000 This book sold just millions and millions of copies, Zen and the Art of Motorcycle Maintenance.
00:46:22.000 It's one of my dad's favorite books.
00:46:23.000 I first read it when I was in my teens.
00:46:25.000 I reread it like this week because he kept talking about it.
00:46:28.000 I was like, I don't really remember it that well.
00:46:30.000 The book by Robert Peirsig received 120 rejections before it was actually published.
00:46:35.000 It's initial sales were at least 5 million copies worldwide.
00:46:38.000 At this point, probably sold twice that.
00:46:41.000 Which makes it, by the way, the single best-selling psychology book probably in human history.
00:46:46.000 You haven't heard of it because you didn't grow up in the 70s.
00:46:48.000 The book in the 70s was perceived as an attack on conservatism.
00:46:52.000 It is not.
00:46:53.000 It is a deeply conservative book.
00:46:55.000 So, basically what the book is, Zen and the Art of Motorcycle Maintenance, is it's a story about the author and his son taking a motorcycle trip across the country.
00:47:04.000 And It's interspersed with his flashbacks to his days in psychology because it turns out that he had an actual psychological break and he was hospitalized and getting like electrotherapy and all of this.
00:47:16.000 And so it's a travelogue interspersed with philosophical musings and investigations into what it was that made him go crazy about philosophy in the first place.
00:47:28.000 Well, the book says a lot of the same sort of stuff that Jordan Peterson says now.
00:47:32.000 So a lot of the book is about the magic of fixing his motorcycle.
00:47:36.000 You don't have to be, by the way, a motorcycle enthusiast to actually enjoy this sort of stuff.
00:47:40.000 I'm not.
00:47:40.000 And again, what I actually do enjoy is what he calls in the book quality.
00:47:44.000 So the central idea of the book is that there is this thing called quality.
00:47:48.000 You know what it is, I know what it is, and it's undefinable.
00:47:51.000 When you try to define quality in any particular situation, you're gonna have a very hard time categorizing quality.
00:47:56.000 But you know what it is.
00:47:58.000 You know, down in the cockles of your own heart, that Beethoven is higher quality than Cardi B. Everyone knows that.
00:48:03.000 And any attempt to say that that's not true, everyone knows is crap.
00:48:06.000 Everybody knows that it's bullcrap.
00:48:07.000 It's postmodernist nonsense.
00:48:09.000 And so what he says is that this quality has been lost.
00:48:12.000 Why has it been lost?
00:48:14.000 And he breaks it down into Greek philosophy, and he basically says that there was an attempt to separate off the true from the good.
00:48:21.000 And that was because if there was no way to define the good, then presumably truth could get lost.
00:48:27.000 But what Pirsig says is, we should stop running away from the undefined term.
00:48:31.000 Stop pretending that you can define a term that you can't define, like quality or the good.
00:48:36.000 Because that is the thing that actually drives human beings.
00:48:38.000 And you can pretend that you can categorize it, that you can nail it down like a butterfly on a piece of paper, but you can't actually do that.
00:48:43.000 You know what it is in your heart?
00:48:46.000 Because that is the way that we interact with the universe, is through the prism of that good, of that quality, and it's not entirely quote-unquote subjective.
00:48:52.000 It is between you and the world.
00:48:54.000 That's why there's widespread agreement on what amounts to quality in a wide variety of areas across human life.
00:49:00.000 Now, What he doesn't, he kind of hints at it, but what he doesn't actually say is that that good, that quality, is God.
00:49:08.000 Right?
00:49:08.000 That system of values is in fact the divine.
00:49:12.000 And that is how we interact with the world, is through that prism.
00:49:15.000 That's what religion fills the gap of.
00:49:16.000 He comes very close to basically saying that in the book, but he doesn't quite say that.
00:49:19.000 But the book is really A much earlier version of make a bed.
00:49:24.000 There is such a thing as a higher value and that higher value is the thing that orients you.
00:49:27.000 That science is not that higher value because science has no values because the empirical cannot actually separate, cannot bridge what they call the is-ought gap from things around you in the universe in the physical universe to what you ought to do.
00:49:39.000 And what he says is that's an artificial gap in the first place because the way that you actually address the world is always going to be oriented through a particular perspective of quality.
00:49:48.000 Like you as a human being.
00:49:49.000 Again, a point that my friend Jordan Peterson makes all the time.
00:49:52.000 You as a human being, when you take in your sense perceptions around the world, you are discriminating among sense perceptions.
00:49:56.000 You're not taking in everything around you at an equal rate.
00:49:59.000 If you did, you'd go crazy very, very quickly.
00:50:02.000 Which means there's automatically an orientation process that is happening between you and the universe.
00:50:07.000 And that orientation process, says Peirce Egg, is quality.
00:50:10.000 And that bridge, it puts back together the true and the good.
00:50:14.000 Because it turns out that they are, in fact, enmeshed with one another.
00:50:18.000 Because you can't actually see the true unless you acknowledge the good.
00:50:23.000 So the book is well worth the read.
00:50:24.000 It's really kind of riveting reading, philosophically speaking.
00:50:29.000 I highly recommend it.
00:50:30.000 Robert Peirce's Zen and the Art of Motorcycle Maintenance.
00:50:32.000 Alrighty, guys.
00:50:33.000 The rest of the show continues right now.
00:50:34.000 You're not going to want to miss it.
00:50:35.000 We'll be getting into the situation in Oakland where residents have a new way of fighting crime.
00:50:39.000 If you're not a member, become a member.
00:50:40.000 Use code SHAPIRO at checkout for two months free on all annual plans.