Based Camp - AI Will Change Social Class： How To Position Yourself

00:00:00.000 yeah anyway i will let you start today's episode of simone i'm very excited

00:00:07.360 okay okay okay simone don't screw this up don't don't screw this up okay

00:00:15.520 i'm gonna include all of that by the way shut up god okay i how am i you get to take your pauses

00:00:23.040 and your breaths and you get to cough and drink something and i don't get to do anything i just

00:00:29.360 have to hand sign again no i'm not gonna no you don't get anything you don't get anything okay

00:00:36.880 i'm gonna go i'm gonna go okay three two one hello malcolm i'm so excited to be speaking with you

00:00:44.960 today because today we are talking about social class changes and how social class works and how

00:00:52.480 obviously as parents who want to engineer the next ruling class of humans who of course work in concert

00:00:57.120 with ai can make sure that our kids in the next period of social class disruption end up at the

00:01:03.120 top this is also for our patreon supporters they requested this so also we're gonna get them to

00:01:08.960 the top okay they deserve to be among the ruling class but i it we need to be aware of the fact that

00:01:16.240 throughout history periods of disruption have enabled clever people to climb social class ranks

00:01:21.680 and i mean consider the plague like for the one from 1347 to 50 or 1352 which killed half of europeans

00:01:29.760 in in existence but that also caused a severe labor shortage and that produced higher wages and better

00:01:35.440 working conditions so like the right clever kind of person who used to be under the foot of the elites

00:01:42.080 in that society suddenly had this upward mobility they never had before they could move to different

00:01:46.640 estates they could demand higher wages and then i think the last two global events where social class

00:01:52.320 really was disrupted were the industrial revolution and then the internet um and ai is the next big

00:01:58.080 global event to do this well i think there's been others i think the rise of tv and radio disrupted

00:02:03.600 social class pretty significantly where you had this new class of movie stars slash radio stars yeah which

00:02:11.600 held a position in society that it's interesting is that it's sort of degraded into nothing i mean we're

00:02:17.200 seeing it rot we're seeing this class that so many people thought to be a part of so extremely hard

00:02:24.160 their entire you know lives were fought fighting to become the television star um and now they are

00:02:31.120 finding or the the the news anchor that you know they get fewer views than like random internet people

00:02:38.480 and stuff yeah well that's why i see it more of a short-lived thing it didn't really create

00:02:43.200 it didn't create for example rockefellers it didn't create you know the same kinds of

00:02:49.760 like the internet i would say is a bigger one because that created just huge amounts of well

00:02:54.480 i disagree i think if you're looking for rockefellers and people like the the moguls of that period

00:03:01.120 the robberans yeah i would see that as less of a class

00:03:04.720 a mix-up than something like the tv star and what i mean by this is when you're talking about

00:03:11.680 like the history of the robber barons and the ways that they would for example have parties where

00:03:17.440 children would dig in like sandboxes for party treats and the party treats would be diamonds that

00:03:23.200 were hidden in the sandbox and so you'd go and you'd look in the sandbox and oh look at my my kids would

00:03:28.000 love this they love little shiny fake diamonds yeah we should yeah you know they'd be they'd

00:03:32.960 find it so far oh look at the shiny little diamond that i got from my sandbox but the the point here

00:03:39.440 being is these communities were never that large you had oh maybe you're more interested in in where

00:03:46.800 huge like yeah i mean you had maybe like 25 families that were like involved in like these entire

00:03:53.200 cultural networks maybe maybe like 100 right but that we're talking about the 0.001 percent

00:03:58.640 who were affected in this way there were still right but the thing about the robber baron

00:04:02.640 social mix-up is that it applied to so few so few were risen in the ranks by this

00:04:08.240 if you look at the age of the movie star it applied both to a fairly large community but also

00:04:15.600 a community that the rest of society observed and understood as a new social elite people absolutely

00:04:24.240 in the gilded age understood who these nouveau riche and also only like rich yeah i guess i guess

00:04:30.720 but i'd say that it's equal okay and so now we're in this age where i think one of the things we can

00:04:35.200 look at is how things changed in the in the internet boom because one of the things that happens when

00:04:40.320 you have social disruption is there is a denial by the old social classes that new social classes

00:04:48.800 exist or that disruption is happening yeah there's also a denial about the proper way to do these

00:04:54.400 things so we really should talk about how social class worked pre-internet and then post-internet

00:05:00.080 well and then it's important to note is because sometimes your average idiot who is still admiring

00:05:07.360 the people who they were told they should admire when they were a child yeah they listen to those

00:05:12.240 people without understanding when those people say oh these tech nerds are really just like nerdy

00:05:18.480 tech bros they're not real upper class they don't really have influence they're not that they don't

00:05:24.720 understand the ways of the blue bloods and stuff like that yeah they they say this out of fear they

00:05:31.680 create these distinctions so that they will say oh well you know nouveau riche and this has always

00:05:37.520 been the case where the old college would say nouveau riche have no understanding of of style to try to

00:05:45.200 point out like well when the nouveau riche well it's in an attempt to continue to grasp at their

00:05:50.320 status which is beginning to erode yes yes what you're really seeing is somebody grasping to eroding status

00:05:56.480 you are not seeing a and any of you believe them you will make terrible mistakes and you will lead

00:06:03.440 your children to make terrible mistakes in terms of their career their education their decisions

00:06:09.360 in terms of the decisions you make with your career yeah so go go further simone yeah no so that's that's

00:06:15.600 what we need to kind of break down so people understand how things have been how they have changed in the

00:06:20.640 past and how they're going to change so we're going to recap the post-industrial revolution norm

00:06:25.200 since a lot of people don't want to admit kind of how it works recap how the internet changed things

00:06:29.600 highlight the major changes we anticipate from ai and then outline class upgrading tactics and

00:06:35.280 careers as ai hits and we're going to go for like the easy lazy coward version and then also the like

00:06:43.520 if you have balls and actually want to go for this like really tank and win version and then given

00:06:50.400 our knowledge of winning tactics we'll talk about potential winners and losers you know sort of like who

00:06:54.880 who who is going to be wiped out by this change and i think there are like large swaths of both

00:07:00.320 types of workers but also types of people who are going to be kind of more to it than this i mean

00:07:05.920 it's something i want to talk about in regards to social class because it's a point that i think people

00:07:10.240 aren't paying enough attention i might be addressing this if you're talking about the different types of

00:07:13.920 social class well so i grew up like i've you know i went to stanford mba i've been a venture

00:07:19.360 capitalist i have been at the height it's been leaked in the new york times like we hang out with

00:07:24.400 elon right like i have been at the top of the tech bro social world right i have also grown up in a

00:07:31.040 family where my dad's dad was a congressman you know the family was one of the most prominent

00:07:36.000 families in dallas texas which is one of the the city where they still have the degree of aristocratic

00:07:40.960 culture you know and my family has had considerable wealth for multiple generations until my generation

00:07:46.320 i got nothing just you know like i inherited thirty thousand dollars when my mom died it's it's not

00:07:51.280 nothing nothing but it's not like i'm not sitting on intergenerational wealth here mostly because the

00:07:56.160 secretary is still little you can read all of this they still like what was it like 20 53 million or

00:08:02.240 something like that no what's worse is she like blew it on an investment dumb stuff

00:08:06.400 at least like at least get an roi if you're gonna steal money but what it means is that i have had

00:08:13.680 a pure insight into both the tech elite social world and the blue blood elites within a part of

00:08:22.240 the americas where you still had an aristocratic class system right yeah and what a lot of people

00:08:28.320 don't realize is how quickly an entire aristocratic class structure can erode and degrade

00:08:36.320 and i'm talking within a generation yeah and we're gonna talk about that in a little bit because

00:08:42.000 it was really striking when you and i saw what had happened to the children of the blue-blooded texan

00:08:46.800 families that okay so you you've got this in the script so we're going to talk about that okay so

00:08:50.880 before we talk about that what i wanted to point out about the rise of ai is maintaining family systems

00:09:00.960 and elite classes requires more than just maintaining attention power and status it means reproducing

00:09:11.920 at something that's not an abysmal rate yeah okay and one of the biggest problems with the elite classes

00:09:18.240 in our society today is outside of the tech bros and elite mormons actually they have tons of kids

00:09:26.160 very few of the elite communities have anything close to replacement fertility rates and they're

00:09:32.080 going to go extinct very quickly as a result and i mean like within two generations of the result

00:09:37.680 so anyway continue simone i just wanted to get to that that important part as well when we think about

00:09:42.000 the future yeah no absolutely but we'll we'll start with the past so as you know i'm obsessed with

00:09:48.240 that 1957 mcgraw hill text films instructional video called social class in america where there's it follows

00:09:55.760 the lives from birth of three american babies who all start out in the same maternity ward next

00:10:01.840 to each other in those little plastic baskets there's david benton he's the poor one there's

00:10:06.640 theodore eastwood he's the middle class one and then there's guilford ames the third which one

00:10:13.200 it's great so if your name says i love your name it's it you have to watch this i will make sure i

00:10:20.080 include a link in it in that top pinned comment that you make okay because you guys gotta watch this

00:10:25.280 it's it's amazing but like basically it it is literally it was an instructional video that was

00:10:30.960 played in high school classrooms to explain to people how social class worked and how in america

00:10:38.320 since there was a pretty large middle class at that time and social mobility was frankly a little easier

00:10:44.000 you you could as a middle class person move up but it required some sacrifices and this is kind of an

00:10:50.080 important theme that i want to keep throughout this whole discussion but basically they're like

00:10:55.520 okay if you're poor you stay poor though maybe you do marginally better so so dave he gets a job at the

00:11:01.600 local gas station with aspirations to become an auto mechanic all right so he's doing a little better

00:11:06.000 than his dad and like his whole family has like a celebration they have a party when he graduates from

00:11:10.960 high school because that's like a big deal for someone to graduate from high school and his family

00:11:15.520 that kind of thing and then if you're middle class for this video and i and i think you know

00:11:20.240 this is an accurate reflection of how things worked at the time and worked after the industrial revolution

00:11:25.280 you can move up but you can't expect your original networking community to accept your new status like

00:11:30.320 you have to leave i really loved this part of the film because it's so effing real yeah it's so real

00:11:36.240 it's it's really great and if you if you will know what happens you've got to explain so he goes to the

00:11:41.920 city okay and he makes so yeah yeah so the the middle class kid he goes to new york after well

00:11:48.560 act after actually working at the nepo babies the rich kids factory just a little bit after high

00:11:54.800 school where he's like i'm not going anywhere here he goes to new york city and and gets a job and then

00:12:00.720 goes to school and gets a degree and gets married out there and it is able to move up and and he he gets

00:12:07.680 a higher class job and he develops much more wealth and he does better than anyone in his family has done

00:12:12.080 before but then he comes back home and everyone still treats him like he's this middle class kid

00:12:21.920 newborn american babies newborn citizens of these united states free and with rights guaranteed by the

00:12:30.800 constitution but let's take a closer look these new arrivals in a typical american town have equal legal rights

00:12:42.080 in class they are not equal at all each has a social status handed on to him by his family

00:12:49.280 ascribed to him at birth meet guilford ames third the latest addition to one of the town's upper class families

00:13:00.800 guilford ames second is the wealthiest man in town he owns a large factory the amy is one of the

00:13:08.160 oldest families in the community and so it represents steve as well as wealth

00:13:17.120 this is where an ames family has lived for the last hundred years

00:13:21.200 and this is where guilford ames third will live

00:13:23.440 like most of the babies here this one theodore eastwood by name has an ascribed status of middle

00:13:33.600 class

00:13:37.600 his father is joseph eastwood high school educated and a white collar worker in the ames factory

00:13:44.640 he has a steady skillful job and is comfortably off but the chances are that he will not advance much

00:13:51.600 beyond his present status the mortgage on his house is on its way to being paid and someday it undoubtedly will be

00:14:07.040 although young ted eastwood has an ascribed status of middle class the best status he achieves during

00:14:14.080 his lifetime may be higher than the one he was born with could be true to maybe david benton whose ascribed status is lower class

00:14:28.320 david's father is michael benton an unskilled factory worker who has a meager education

00:14:34.080 mr benton rents the upper floor of a two-family house in a rundown section of town

00:14:46.400 the ability to rise from an ascribed status to an achieved one is called vertical mobility

00:14:54.400 and is particularly characteristic of the united states

00:14:57.680 there are class lines within each general group and these vary geographically and in relation to

00:15:06.240 nationality religion and race class exists in the united states as it does everywhere it's wild we used to

00:15:14.800 live in a world where we just sat kids down in front of videos and told them the truth about how the world

00:15:20.560 worked the the number of truth bombs that are dropped in this that would save an individual

00:15:26.320 so much time and heartache to learn young is astounding to me in that this video would be considered

00:15:35.040 deeply offensive today you you're ted eastwood stuck in a job you'll be in all your life

00:15:44.000 why don't you get out what's keeping you here anyway mary blakeslee you thought you'd marry her

00:15:52.000 but remember what she said that day in the car her car of course but can't you see it's impossible ted

00:16:01.840 it's not just money we live in different worlds sure different worlds inside this town but there are other

00:16:12.320 worlds bigger towns you've got some money saved go to new york give it a try for six months

00:16:21.200 and if you fail only you're not going to fail

00:16:30.160 and ted didn't fail he had talent

00:16:36.000 but when ted returns to his hometown on a vacation how does he fare

00:16:41.440 has he a new achieved status back there too when he meets the girl he wanted to marry have things

00:16:50.560 changed the town is small enough so that mary has heard about ted's success in new york

00:16:56.320 mary is married to gill now and although they are friendly enough toward ted he still isn't part of

00:17:08.560 their world and he never will be in this town the ascribed status of his parents is still the class

00:17:18.240 to which he belongs

00:17:31.520 ted's mother brings him up to date on all the town gossip but he only half hears her

00:17:38.560 the meeting with mary has stirred old memories in him he's remembering what she said to him about

00:17:45.120 different worlds he knows now that to her and gill he's still the nice kid from the wrong side of

00:17:52.640 the railroad tracks no matter how successful he is his achieved status is higher than that of his

00:18:01.040 father's because he has a profession but that status depends on a place in this case new york

00:18:09.360 new york and what's interesting though also about the upper class kid and this is something that has

00:18:13.760 really changed after the internet age and we're going to talk about this is your upper class you're

00:18:19.200 a nepo baby so so gill he gets a job at his dad's factory and his dad's like i'm going to show you how

00:18:24.560 this is going to be and there's this awkward scene where as as gills being shown around because first he

00:18:30.400 goes to an elite university where he is he's for the first time mixing around with people of his

00:18:36.000 own class he's building that elite network because you know for reference by the way i went to

00:18:41.600 stanford for my nba my dad went to harvard for his nba yeah you were gill except that your family

00:18:46.640 wasn't willing to nepo baby you that's it yeah your family is like anti-nepo baby they won't like

00:18:51.680 no no they wouldn't help you they won't actually my dad i said well we've got a pavilion at harvard named

00:18:58.000 after the family you know we've got it's like some gazebo thing like obviously like we've donated a

00:19:03.920 lot of money there you went there my dad went there can you like send them a note like telling

00:19:08.880 them like hey consider this application seriously and he got mad at me and he said i don't know if

00:19:14.080 he ever did it but he'd send them a note telling them not to accept they didn't accept me by the

00:19:17.200 way and stanford did where i didn't have any connections so yeah so there's that but yeah

00:19:21.040 it was harder to get into by the way harder to get into i gotta point that out but continue

00:19:24.400 guilford ames the third goes to this elite ivy league university and then when he comes back

00:19:29.600 his dad gives him a tour and shows him you know very lion king like all this domain will be yours

00:19:34.560 and then there there is is our our middle class theodore eastwood sitting in the just like i'm your

00:19:42.720 underling now like it's great but things have indeed changed since then so since the 1950s social

00:19:50.480 mobility has kind of actually reduced with a downward downward slant where open upward mobility is harder

00:19:56.960 literally for everyone so even those who before were the nepo babies and and and we should talk

00:20:03.120 about this so nepo baby privilege has absolutely eroded and it's burning away fast and i think part

00:20:09.120 of this is because you know you and i were sent by someone in in your in your family to go to private

00:20:14.560 wealth conferences i don't know why i really don't know why but it was like it was just all family

00:20:19.200 foundations and we went to that that network for kids of rich people oh yeah what were they called

00:20:25.920 that they all wanted to be nexus nexus yes and everyone there was the most progressive communist

00:20:33.760 i've ever met like and they were dumb as raw the other the thing that that your family also sent us

00:20:40.560 to was ipi institute for five for private investors which was all like family investment none of their

00:20:46.400 kids went remember no there were there were like two kids or something but they also talked in their

00:20:50.880 like in their sessions about how they were managing their trusts and their family investment

00:20:57.120 firms for their children and a really big theme of these and this is i think where the downfall of

00:21:01.840 the nepo baby comes is you have this focus on happy kids and like well you know i want to make

00:21:08.720 it possible for my child to be a teacher in africa so they can you know do the good work that they

00:21:13.440 want to do that was a big theme at nexus too it's like well i'm just going to do good in the world and

00:21:17.840 basically just spend their family's money away and this is in in stark contrast you have to like keep

00:21:23.520 in mind that before like the wealthy families that maintained impact and that actually were like

00:21:29.920 worthy nepo babies in my view were like the kennedy style like k-pop style like disney star management

00:21:37.520 where like literally you were groomed to be in this leadership position like you know kennedy

00:21:44.800 like president kennedy wasn't the first in line in that family to be president his older brother

00:21:49.280 was and then he got killed in the war and it's such a ruthless k-pop style management where like

00:21:54.320 if you step out of line and and your dad thinks you're the slutty daughter and you're gonna get

00:21:58.240 accidentally pregnant suddenly you get a lobotomy like this was intense right they were very disciplined

00:22:04.480 and it wasn't fun and now wealthy families and i think what precipitated the end of this

00:22:10.320 was partially this focus on i just want my kids to be happy but also as you pointed out and you

00:22:16.080 i want you to talk about your experience like meeting like your wealthy like older money family

00:22:22.720 childhood friends when we were back in dallas i think the other element of it was that corporate

00:22:27.760 governance also changed and as the corporations that used to install these nepo babies that you know

00:22:34.400 guilford ames would have run suddenly received they started receiving outside investment private

00:22:40.160 equity investment growth investment and then they had to have boards and those boards actually cared

00:22:44.640 about those companies making money and they didn't want to see them yeah i pointed this out about what

00:22:48.560 happened in texas is that you had many people and families within the dallas elite ecosystem where the

00:22:56.720 kids expected they're like i'm gonna go to smu i'm gonna go to like a local institution and

00:23:01.520 they'd always say this thing which is just not true which is well smu is as respected as harvard or

00:23:08.560 stanford god bless them yeah and i'm like no it's not so first of all they this was true of their

00:23:16.000 parents generation because in their parents generation the people who were running companies

00:23:21.520 weren't the most competent people they were people who had risen through nepotism networks exactly so they

00:23:26.320 weren't people who had gone to harvard and stanford and the top universities they were people who had gone to

00:23:30.640 the local university and note here the university aspect to the nepo baby syndrome has broken down

00:23:36.720 it doesn't matter anymore it mattered in my generation it mattered in the generation before mine but it was

00:23:42.800 already breaking down was in my generation yeah now it's just the recreational summer camp that you

00:23:47.600 chose to hang out at yeah but but for a while it did actually matter um and you were able to get

00:23:56.080 regional arbitrage opportunities within regions that had these nepotistic old boy networks where

00:24:02.160 incompetent fail sons could end up running major companies like in texas because the incompetent

00:24:08.480 fail sons would go to smu and then they would you know end up they even had a a chant on like their

00:24:14.000 football team about how one day they'd be their bosses or something oh my god really it was so known for

00:24:19.520 this by the way the people are like malcolm why are you being mean to smu the smu executive

00:24:25.280 business school is literally named after my grandfather i have a lot of connections with

00:24:29.280 this university i don't have a particular animosity to it and i will also note because i never forget a

00:24:35.840 a nice deed or recognizing my success before i became successful while i got into every university

00:24:42.000 i applied to they were the only one that offered me a full ride scholarship i would just note that i

00:24:46.960 know a lot of people the other nepo babies when i grew up who had this delusion that they were going

00:24:53.280 to be able to ride these sort of nepo baby purage networks yeah and if they had matured in a pre-internet

00:25:00.480 age and also in a pre-businesses widely accepting private equity and growth growth funds and stuff

00:25:06.240 and having outside boards well because what happened was their dads or their granddads is oh you know

00:25:13.200 we need a new president of the company it's going to be one of the kids or the grandkids right that

00:25:18.720 was just sort of taken as a for granted thing whereas as soon as you develop the modern board

00:25:25.520 ecosystem which really developed while in my generation you're actually at a disadvantage

00:25:34.240 if you happen to be the son or grandson of the last president of the company because people are going

00:25:39.200 to be asking well if they just here because of nepotism are they really the best person to run

00:25:43.120 it yeah you have a huge chip on your shoulder if you're doing that yeah yeah this is not something

00:25:47.520 that was done before you know you'd actually probably have an easier time if you went to try to start as

00:25:51.840 a separate company or use family wealth to start a separate company which is actually a lot harder to do

00:25:56.800 and so you end up in this situation where an entire generation was raised thinking that if they

00:26:03.760 went to the dallas country club and they played this by the way this is a country club that costs like

00:26:07.920 i can't remember hundreds of thousands yeah we looked it up recently and the buy-in was huge

00:26:12.720 yeah it was insane i think it was even more than like the bohemian grove it's 225 000 right now

00:26:19.280 it's yeah the bohemian grove wasn't that bad it seemed affordable yeah except you have to like wait 40

00:26:24.640 years no yeah the bohemian grove's wait time is 20 years and that's what makes it a pain in the butt

00:26:28.960 yeah um and you have to get i don't want to go too much into that the way the bohemian grove structures

00:26:33.440 but again these are things that i have deep knowledge of that i think a normal person may

00:26:37.840 not have deep knowledge of and so that's why we're talking about this is i think normal people

00:26:43.360 have all these misattributions about how social class works today and how it's going to work soon

00:26:47.920 and so they totally are missing the boat and i don't but i don't want to at least start at

00:26:51.600 least our patreon subscribers i don't want them to miss the boat they can get on the boat okay

00:26:55.840 an entire generation of the elite of the blue bloods have basically been wiped i'd say it was

00:27:03.920 in two generations yeah the entire concept of blue blood elite has been wiped out yeah because

00:27:10.800 something you need to remember about blue blood elite is they rarely stay elite through just having

00:27:15.600 lots of wealth unless you're in europe and you can be like why unless you're in europe where you have

00:27:19.680 higher taxes and higher intergenerational taxes because in europe the tradition is within the

00:27:24.560 aristocratic families is everything goes to the oldest male heir and actually it was typically

00:27:30.800 thought of in europe as this great curse and this was done in ireland to sort of break the back of

00:27:35.440 the irish people where they forced by law after conquering them to split their wealth evenly among

00:27:40.240 sons and it was seen that this would make the landed classes and the great aristocratic families become

00:27:45.920 poor very quickly because you know you have a lot of kids and then you need to split every

00:27:49.760 generation and that family becomes less wealthy this is never really the way things

00:27:54.400 worked in the united states even among the elite families and so the only way that you got elite

00:28:00.640 families in the united states was if you had a system for intergenerationally transferring

00:28:07.520 a method for learning to produce and capture wealth and power yourself and there were many different

00:28:14.320 systems here but one was this texas aristocratic old boy system that completely dissolved the functioning

00:28:22.160 system and then the few kids of those kids because i've met them as well where their family has some

00:28:28.960 intergenerational wealth these kids of the kids then come in and they say they get brainwashed into

00:28:35.520 communism the family was unable to intergenerationally transfer cultural values to them so they're having

00:28:41.680 very few kids themselves they're not developing skills that allow them to consolidate or gain meaningful

00:28:46.720 power and they're not even playing the game anymore they're playing this weird hollywood game which is

00:28:51.920 another social class which is also dying so the entire blue blood network i think in the united states of

00:28:59.920 the 70s and 80s and and and and maybe going back to the 1920s when you really see the start of

00:29:05.920 this of the modern context of it is going to completely dissolve within this generation because it's already

00:29:12.000 mostly dissolved it's like two percent of what it used to be they even see it as a feature giving

00:29:15.840 away their wealth you know because they they hate their wealth and they've learned to hate their families

00:29:19.680 and themselves so and so this culture the american blue blood culture is functionally dead and then

00:29:27.120 people can say well how did families like yours transition so seamlessly right like because apparently

00:29:33.920 some families made the transition to the vc culture and appear i hope to make the transition again

00:29:39.440 with the next cultural changeover as a note as to why my family culture was so different from the

00:29:45.040 other quote-unquote elite or aristocratic cultures within dallas it's because they were descended from

00:29:50.960 the backwoods cultural tradition whereas many of the people who took on aristocratic status were from

00:29:57.520 the cavalier cultural tradition of the deep south which is much more comfortable being aristocratic in a

00:30:05.360 normal sense whereas the backwoods cultural tradition was never really comfortable with even the concept

00:30:11.200 of an aristocracy and so there was always this perception of well the strong should always survive

00:30:16.480 and you need to prove that you're the strong to inherit this status that you were given unfairly

00:30:23.520 i think it's because certain cultures in america adopted the mindset as my family did of do not look at

00:30:32.000 what the other quote-unquote elites are doing focus entirely on this play and it was in my family

00:30:38.400 the play was always one don't expect to inherit anything actually it's pretty rare intergenerational

00:30:44.080 within my family two people like the fact that i inherited 30k for my dead mom like that's actually

00:30:49.040 been normal for my family throughout history to not inherit large amounts and a lot of people can be

00:30:54.400 like oh really why did they do that and it's because well when you don't expect to inherit money

00:31:00.320 you are much more focused on how do i use the arbitrage that my family's position gives me to create

00:31:08.160 more money or to build stable income streams the other thing they did was focus incredibly hard on

00:31:14.720 education and and being more educated than anyone around us but also on cunning was always really like

00:31:22.880 always out out plan and out con the other people who you are fighting against and always come with the deck

00:31:30.880 stacked in your favor because of education and use whatever you can except for nepotism and always

00:31:37.360 that implies cheating malcolm your family doesn't actually have a

00:31:41.200 no no no stack the deck in your favor was was knowledge and plans always you know you know go into any room or any any

00:31:48.720 any knowing everything and you've even seen me do this when we go into business meetings and people

00:31:53.040 are always surprised they're like wait how do you know everything about my life you know and it's like

00:31:57.520 well i obviously created a dossier on everyone i'm meeting with before i got here did everyone else

00:32:02.800 in the room not do that you know this is an investment meeting of course but i remember i first

00:32:07.680 was very surprised that other people weren't taught to do this and this is like a family tradition and also to

00:32:13.280 never go for and i remember this was so strongly embedded in me to never go for the jobs that have

00:32:18.800 a cap on the wealth that they generate so i was told i would be disowned if i would became a lawyer

00:32:25.840 or if i became a politician or if i became a doctor like my mom was because i almost went to medical

00:32:32.400 school at one point she was rabidly against this she's like that puts a pretty low cap on how much money

00:32:37.920 you can make nothing to say we don't have doctors in the family but they're involved in like running

00:32:42.880 large medical enterprises and my mom thought that if i went into this i would get sucked into the very

00:32:50.080 narrow world of like actually being a doctor doctor which she saw is a very low class thing to do

00:32:56.560 normal people would see this as a middle class thing to do anyway i'm gonna bring this back hold

00:32:59.840 on malcolm don't go too far but i do want to point out hold on you you forgot something and i need to go

00:33:05.200 into it which is the kennedys the kennedys actually represent really perfect sub-genre of

00:33:12.960 new elites being created because how did the kennedys earn their money it was a new economic

00:33:18.400 arbitrage opportunity created by the prohibition where they made most of their money through the

00:33:24.960 mob and then the father who made the money through the mob basically said ah this arbitrage opportunity

00:33:31.680 and keep in mind they were irish immigrant families like they had no chance before this

00:33:35.760 being upper status americans they used an arbitrage opportunity to take this chance and then the

00:33:41.200 dad taught the kids generation looking at the way culture was changing you won't be able to

00:33:46.640 achieve status in the way that i did so i'm going to groom you for politics because that is the next

00:33:52.560 class where we can cheese things you know as kennedy joked about winning the election because of

00:33:56.960 graveyards right like we know that they likely did cheese election cycles so anyway now now bring it back

00:34:02.400 some up yeah this is important though to talk about how nepobabyism for the most part and there are

00:34:08.480 exceptions here especially when it comes to the utility of networks that remains crucial nepobabies

00:34:15.280 are dead and yet a huge discussion online about social classes oh nepobaby this and these people

00:34:20.560 will have these privileges because a huge portion of our culture is all about having an external locus

00:34:25.520 of control and oh i can't succeed because the elite are like holding me out i'm not going to say though that

00:34:32.560 you know since the 50s social mobility has not only gotten worse for nepobabies but also is rough for

00:34:40.880 the middle class because specifically university costs which started rising in the 70s just continued

00:34:46.880 to rise like through the 90s and 2000s like from 2000 to 2022 tuition at public were public so the cheap

00:34:54.960 four-year colleges in the u.s rose by about 60 percent and the total cost of attendance room and board

00:35:00.320 increased by nearly 40 and the average cost of college more than doubled between 1963 and 2022 so

00:35:06.000 like that is is huge and and the the the sharpest increase has been in public four-year institutions

00:35:12.720 which should not have gone up in cost because they're supposed to be like the u.s states providing

00:35:18.960 education to empower upward mobility what's going on also like housing costs not just in the u.s but

00:35:25.520 around the world began to significantly increase in the early 2000s with another really sharp increase

00:35:30.160 so like just getting a house is really hard so i'm not saying it's hard i'm just saying it's you

00:35:37.120 know but anyway things are about to change with ai and i'm really excited about it so let's go through

00:35:42.320 the the most obvious to most underrated of how ai is going to change things so as malcolm you always

00:35:48.800 say it's going to concentrate well like we're going to see extreme wealth disparity everyone's complaining

00:35:53.840 about wealth disparity now they have not seen anything they've not seen anything close to what

00:36:00.400 you're going to see wealth disparity is going to be so much bigger in the next generation yeah what's

00:36:04.720 also going to happen and this is something that kind of came up on the pirate wires podcast they were

00:36:09.600 they were talking about this when we were guests on it that it it wipes out very specific social

00:36:14.880 classes so like white collar workers are doomed a lot of people who watch this channel also watch

00:36:22.560 feral historian on youtube who in in one of his episodes i think maybe it was on like a some version

00:36:27.280 of like star trek universal basic income mentioned that if if we define employment as those providing

00:36:32.320 a product or service that someone else wants to pay for we actually have very few people in in modern

00:36:38.400 white collar jobs or really the like modern economies in general who are actually employed

00:36:43.840 because they're not like they're in these like weird middle management jobs that do totally

00:36:47.680 abstracted things and you can't really track that to specific roi you know they're not selling bread

00:36:54.960 that someone's eating they are not making so much of those jobs are the most replaceable with ai

00:37:00.000 exactly yeah so they're they're going to be wiped out and that's really interesting because you know

00:37:06.000 typically they they i think they're given this impression that they're quite safe and i think there's this

00:37:10.960 this dawning that you're now seeing in headlines that oh my gosh the despite the fact that i'm

00:37:17.440 educated and connected and all these things and i have my fancy corporate job with all my great benefits

00:37:22.240 i'm about to be thrown out on the street but then at the same time many low-skill workers like

00:37:26.800 manufacturing retail transportation they're not all things that we're going to go into this are also

00:37:31.760 super screwed you know like uber eats delivery people truck drivers etc are really really screwed but then

00:37:39.920 there are elements of ai that really increase social mobility which make us so excited right like

00:37:44.160 with education we're already so deep into education for our kids and that it like it it democratizes

00:37:51.760 aristocratic tutoring where okay alexander the great he could be tutored by aristotle but now our kids

00:37:58.320 could be tutored by aristotle but better because he knows about you know aquaculture pharmacology and

00:38:05.920 astrophysics and everything like no single human that could tutor a kid knows anything like close to

00:38:13.360 what ai can tutor your kid about and information is profoundly easier to access and parse so though the

00:38:18.800 university system is broken it you know we now have something so much better the university system has

00:38:25.440 become irrelevant for a few reasons one is the deiification even with the recent court case of the university no longer

00:38:32.720 makes it a class authenticating mechanism for many people yeah and it almost can become a confirmation

00:38:38.720 of like when university gets to a cost where it isn't a clear benefit even the elite universities yeah

00:38:44.400 you can begin to look like you have proven your own lack of belief in yourself by paying for one of these

00:38:51.360 elite university statuses oh yeah like you're telling on yourself by going on yourself that i needed to waste

00:38:58.240 however many hundred thousand dollars rather than just using that to start a company because i thought i needed

00:39:03.120 this status authentication which is increasingly becoming the perspective of the centers of wealth that

00:39:10.560 need to be able to accurately judge an individual's competence to know whether or not they should invest in

00:39:15.520 something that they're working on that's yeah that's a really good point the other thing too in addition to education

00:39:21.600 becoming widely accessible is just the ability to start a company startup costs used to be a very serious thing for people

00:39:28.240 like you had to actually hire if you didn't know how to code yourself or you weren't a very good coder

00:39:32.720 a developer to help you so it was a most of the stuff for which people raised money like from seed money even like growth

00:39:39.520 funds so coders customer support intellectual collaboration you can get that from ai now like that's huge and

00:39:46.720 and already venture capitalists like you hear this all the time on the all-in podcast they just widely agree that the next

00:39:52.240 unicorns are going to be founded by single person or just extremely small teams and there's already

00:39:57.440 examples of this so these there's these these there's this youtube channel i can share with you it's two

00:40:02.560 weeks old as as of the time we're recording this it has 411 000 spotify listeners and it's entirely ai

00:40:10.400 generated and this is like a totally synthetic act that's hitting cultural philosophy it is it is insane we

00:40:17.040 also seen you know stars on a number of apps like like tiktok and stuff like that turn out to be

00:40:23.680 completely automated we've seen yeah musicians and bands that are totally automated well and also major

00:40:28.560 fundraising and it's like sale rounds so there's clearly there were the cheat on everything company

00:40:34.160 that's that's what andreason horowitz led 15 million in funding for which like is is pretty crazy too

00:40:41.360 because it was co-founded by a 21 year old named roy lee he was expelled from columbia university

00:40:48.000 after creating interview coder which was an ai tool that helped job applicants cheat during technical

00:40:52.960 interviews and that you know that this is this is an extremely small team and also wix acquired another

00:41:00.160 one of these really small ai assisted startup companies that was totally bootstrapped it was called base 44

00:41:06.640 wix acquired it for 80 million dollars so base 44 at the point of its acquisition was six months old

00:41:13.920 it was just a bootstrapped vibe coding startup it had eight employees who will split 25 million in

00:41:20.160 retention bonuses sorry vibe coding for people who don't know means that they weren't actual coders they

00:41:25.520 did all of the code with ai isn't that crazy yeah so but but like the thing is you can you can and also

00:41:32.000 like people spend a ton of money on advertising but in in the case of base 44 in six months they mass 250

00:41:39.360 000 users and recorded 189 000 in profit in may despite high llm token costs like i mean they they

00:41:47.040 like obviously there's there are costs that go into running these but i'm just trying to give examples of

00:41:52.560 how now completely bootstrapped young teams that aren't necessarily technical geniuses

00:42:00.000 businesses are raising 15 million dollars selling their company for freaking you know 80 million

00:42:06.960 dollars getting hundreds of thousands of followers in just a matter of weeks on spotify and youtube like

00:42:13.760 this is insane because you used to really need like if you wanted to start an entertainment thing like

00:42:19.840 oh i gotta get a record label i'm gonna need the studio i'm gonna need the lacy equipment

00:42:25.360 look at our podcast by the way so when i talk to people who've been podcasting for longer than us

00:42:30.800 they're like oh well you know i have my editor i have my title card creator i have my this is all

00:42:37.760 of these we do all our editing all our title card creating all our research like we don't have an

00:42:43.280 external researcher ourselves for a daily show that targets i would say a fairly high intellectual

00:42:50.080 audience like that is not something that would have been possible i know this is having tried to

00:42:56.000 do podcasts before this before this particular era of ai and what you're seeing here is it allows

00:43:04.240 one individual like let's say in podcast creation to do the entire cycle of that creation or it

00:43:10.960 concentrates the wells of entire wealth of entire enormous bureaucratic fields like say lawyers right like

00:43:18.000 if you can get an ai that is better than 50 of lawyers now you have concentrated the wealth

00:43:22.480 that would have gone to that 50 percent with with some you know cost saving measures to a small team

00:43:29.120 and we are seeing this across bureaucratic industries which means massive wealth consolidation

00:43:36.880 yeah we'll we'll be honest there there's not there are some things that ai can't fix and in order to

00:43:43.600 overcome or like actually make the jumps in in social class if you want to make them you are going

00:43:50.080 to need to be very careful and thoughtful about these and and malcolm come in and tell me what i'm

00:43:55.520 missing here but i think the really big thing is access to networks because you know through anything

00:44:00.800 from like your parents to your social network to elite schooling like gill in the video he at one

00:44:05.440 point he's told by his father how he's going to be introduced to men of his own kind that's a big

00:44:10.320 thing and also access i was told that all the time as a kid and i met these people and now they're all

00:44:15.040 basically unemployed losers i mean there is that but but there's a new class of people who will

00:44:21.520 expose you to ideas and opportunities and funding and connections that does really matter and we'll

00:44:26.400 talk about that and then there's there's just also access to capital and cutting edge tools compute

00:44:30.880 power proprietary data that it's often it we shouldn't lie it is often gated by wealth or connectedness

00:44:38.080 it's it's not just like now it's less about family networks it's more just affiliation network but

00:44:45.040 like you know this even happened with and it still happens with ethnic cartels where in the it's it's

00:44:51.440 possible for like indonesians to own like the donut industry in california because they're able to provide

00:44:57.440 keep cheap capital to other families things like that and so these are two things that do matter i mean

00:45:03.600 at some point you may still want to raise money and you know like you don't you don't get an in

00:45:08.000 with injuries and horowitz through nothing i mean unless i mean you can get so anyone's attention

00:45:13.280 this is the other thing that people don't know because i've seen people consistently hired for

00:45:16.720 stuff like this by these elite institutions so i've talked i actually i should start calls with them

00:45:23.120 again but i do calls with an elite investing group that people probably heard of and the thing about

00:45:29.760 them is is the guy i talk with was hired based on his popularity within some social media thing like

00:45:37.040 he created something that became popular recently andreessen horowitz paid a ton of money for the guy

00:45:42.320 who created the turpentine network which is a network of podcasts that you know i'm gonna be honest like

00:45:48.960 i don't think they have that many standouts within the network and it's it's most of them are smaller than

00:45:53.680 our podcasts but you know he was seen as if you look at the network of people was in this network

00:46:00.000 of podcasts it would they were very high profile like it had oh who's the bismarck guy who were

00:46:05.280 friends with sam obersha yeah sam obersha this podcast in it for example um sam obersha's podcast might get

00:46:12.160 like 500 800 views per episode but sam obersha is sam obersha and like if i say this name and you

00:46:19.600 don't know this name then you're not part of certain networks right yeah that's the thing yeah

00:46:24.480 and and you would be like oh yeah well you know sam obersha is sam obersha right and i think the the

00:46:29.840 one of the things that people miss is it's a game of attention but not everyone's attention matters

00:46:36.480 regularly exactly uh sorry equally and so you've got to be good at spotting and knowing and this is the

00:46:44.000 new thing about the social clash in the ai era is whose attention matters yes whose attention

00:46:51.920 doesn't matter yeah don't waste your time on the people who don't matter do waste your time on the

00:46:56.480 people who do matter not waste your time but you know what i mean like build build family connections

00:47:00.960 and alliances yeah because you it's very easy to get this perception that you're totally winning and that

00:47:07.600 you know all these people know you and those people are not going to help you they're not going to be

00:47:12.000 useful in the same way if you want to jump social class there's there is one more thing though that

00:47:18.240 i do want to point out in terms of just an underrated element of social class and that there's it's

00:47:24.480 important for people when they're thinking tactically about what they want to do or strategically about

00:47:29.520 what they want to do a social class that there is there's wealth based social class and then there's

00:47:34.960 culture based social class so like you can be a multi-millionaire with with an hvac company that

00:47:42.560 does air conditioning and and or like you know something more akin to the trades and you have

00:47:47.680 your boats and you have all these like a huge mansion and then you can be in an impoverished

00:47:53.760 journalist you know living in a hovel in brooklyn but you're hanging out with all the elites and you know

00:48:00.560 you know the elites will look at this multi-millionaire mansion and boat owner and think of them as low

00:48:07.120 class and then you know the the h the the billionaire or the millionaire with like the mansion and the

00:48:12.880 boats is going to look at this impoverished journalist and be like like how are they but

00:48:19.600 i think that's important is that people have to understand that there's there are different forms of

00:48:23.040 of social class and that that it doesn't just track directly to the amount of money so there's one

00:48:29.200 that sort of like will you be accepted in a certain social network and does that matter to you or do

00:48:34.240 you have a high dollar net worth and you the type if you want if you really care about the social element

00:48:43.920 of social class you need to really understand who it is you want to get in with because that's a very

00:48:49.360 different side quest or like mini game because if you want to be like the orthodox jew royalty versus like

00:48:55.440 this weird waspy royalty versus like san francisco tech elite royalty like you're going to have to

00:49:00.960 play very different games and i think a lot of people just kind of blindly try to optimize for money

00:49:06.640 and don't realize that what they really wanted was instead to be like respected and listened to and

00:49:13.760 yeah like or among intellectuals or something and then they're super unhappy when like they have all the

00:49:18.080 money but the intellectuals won't listen to them because they run a company and and live in a place where

00:49:23.200 they they aren't respected or like if you want to be more of an elite that's going to be a different

00:49:26.960 game so i just want to also point that out as you build your your strategy if you are someone thinking

00:49:33.520 about these things know what you want but i i think what's important this not being discussed here is

00:49:39.280 we are entering an era where wealth itself is less powerful especially if you're not at this elite

00:49:44.800 level of ultra wealth if you get to the ai ultra wealth if you become a tech mogul it matters but when

00:49:50.080 you have moderate amounts of wealth as one of our friends who is very wealthy often bemoans he says

00:49:54.560 there's nothing i can get that the poor can't get right like he's like i i used to at my level of

00:49:59.520 wealth be able to have a chauffeur but now they have uber eats you know i used to at my level of wealth

00:50:04.240 you know have have the best foods in the world but now anyone can learn to make those online you know

00:50:10.480 i used to have at my level of wealth and i think that what we're seeing is and elon has said this like

00:50:17.120 we within our lives we're into a post wealth economy potentially uh and that doesn't mean

00:50:22.960 that you don't need to be productive that doesn't mean people won't be starving that doesn't mean

00:50:27.920 people will be left out of the system i think it's a type of post scarcity that people never really

00:50:32.800 anticipated what it means is if you are attempting to move up and play within these highest ranks your

00:50:41.680 wealth doesn't actually matter as much as the attention that is on you and your ability to

00:50:46.880 direct attention and i think what a lot of people are getting wrong and this is something that you and

00:50:52.800 i have been working on and we have a number of projects in the works in regards to this if they

00:50:56.480 think it's human attention that they need to learn to direct which is the game right now but i suspect

00:51:04.080 within 10 years ai attention is going to be as important as human attention absolutely yeah how do you

00:51:10.160 direct and capture the attention of ai yeah yeah and i mean when you ai is is likely to create

00:51:16.480 various versions iterations of a post scarcity society and i always i've been so influenced by

00:51:22.240 corey doctor's book down and out in the magic kingdom which frames one version of these societies where

00:51:28.080 generally you can get everything you need but if you want to get stuff that's actually still scarce

00:51:32.560 because you know beyond you know there's always going to be something that's scarce no matter what's

00:51:35.760 provided for you so if you want to live in the coolest places you're going to use the currency

00:51:40.560 of this world called woofy which you gain through doing cool stuff and so groups of people form what

00:51:47.040 are called adhocracy sort of just like ad hoc groups that do cool things to get social clout which wins

00:51:53.280 them woofy which wins them that you know privilege to to do cooler things and stay in cooler places and

00:51:59.120 all these all these things and i think yeah woofy is is a currency that is super underrated in the

00:52:04.880 future basically social capital that that buys you the stuff that money can't and especially we keep

00:52:10.560 harping on people for this like focus on privacy and i don't want to have an online footprint and

00:52:17.040 you know i don't want my kids to be seen anywhere online you're you're screwing yourself over because

00:52:23.120 in a post ai world there are going to be two ways that you are going to be able to very reliably make

00:52:32.000 money because jobs as we know them their days are numbered you know they're going to become quite

00:52:37.440 scarce maybe kind of like this government charity thing that's offered so you have to provide a real

00:52:43.920 product or service to real people and real businesses and you have to be capable of providing it yourself

00:52:48.800 there are two ways you can do that one you have to become a well-known person in your local community

00:52:54.560 so let's say that you live in a fairly insular mormon or orthodox jewish or just like local ohio

00:52:59.920 whatever community you know that's a little bit offline if you can be the local trash hauler or repair

00:53:05.840 person or religious leader or child speech therapist then yes you'll be fine and you have to invest in

00:53:12.800 that that that that that means that maybe it's fine that you're offline because you you just have to go to

00:53:17.040 church in every social networking event and malcolm when i was running for office in in in this area

00:53:22.480 i discovered this world it was so weird it was like it's gonna make me sound so out of touch it was like

00:53:28.480 the offline internet where there were just all these like super low-tech people who showed up at like

00:53:35.600 various local restaurants at once every month to just network and talk about their businesses and they

00:53:42.240 really gave me a picture because these are people who are getting by 100 percent just by selling to

00:53:47.440 their local community through word of mouth period like they they don't exist online basically and what

00:53:53.120 did they do they were things like tax accountants they hauled trash they they had bakeries like they did

00:54:00.400 all and this stuff probably is going to remain to a great extent in local communities like i just don't

00:54:05.840 think that that many humanoid robots are going to specialize in hauling trash if you know what i mean

00:54:10.640 and there were actually two of those businesses at this place networking event i went to it was it was

00:54:15.200 wild so i i just yeah so you need also need to know like if you are going to build woofy or if you're

00:54:20.800 trying to sell a product or service either you're selling into your local community and kind of going

00:54:24.400 offline and low-tech and just going into your little like not low-tech fiefdom or you have to have a

00:54:31.600 really big online presence so that you can sell your very specific talent or product like vegan bike shoes

00:54:38.960 to your weird otaku audience that's super into it like 18th century corsetry whatever right and

00:54:45.520 there are already people who are doing this and and those people are going to continue to have careers

00:54:49.840 but there's there is this and i want to go now into like the specific things you could do to win

00:54:54.960 in the next like three to ten years and i think what's what's there is misleading really simple stuff

00:55:02.800 that is i get i don't know obvious and that a lot of people are talking about and then there's

00:55:06.560 just the real underlying stuff that you really have to do so the low risk low reward stuff is

00:55:14.800 you get into an ai profession and this is heavily emphasized both by ai like if i ask ai like well

00:55:21.200 what are the jobs in the future that'll be safe in the face of ai taking over ai gives these answers

00:55:26.240 and it's also really big in ai 2027 that that piece by scott alexander and and his colleagues that

00:55:31.600 predicted the impact of superhuman ai over the next decade so we're talking ai or machine learning

00:55:37.680 engineer or data scientist that's that's huge ai integration or automation expert cyber security

00:55:43.840 analyst ai product manager ai ethics or policy consultant healthcare but only in like ai powered

00:55:50.720 roles so you like maybe go into a healthcare profession but your entire thing is on like ai integration with

00:55:55.520 healthcare finance or fintech but specifically with an ai specialization green tech and sustainability

00:56:02.160 but again just with ai because a lot of people are gonna freak out as they discover what data

00:56:06.640 centers are doing to local communities and then just some like some care professions because obviously

00:56:11.200 we're gonna have a lot of old people and not enough people who are willing to take care of them

00:56:14.960 and then just like education and training like consulting to provide businesses

00:56:19.520 advice on how to integrate ai when they're like oh crap i've waited way too long and now i'm

00:56:23.680 screwed and now i need ai and i think that's more of a racket but that's that's the obvious stuff i

00:56:28.800 don't think that stuff's going to be very long-lived because the best ai is intuitive and it teaches you

00:56:32.960 how to use it and it's going to just take all that over anyway so i think that that's a really big

00:56:37.920 like misleading red herring but if you're like a low-risk person who just wants a safe thing that's

00:56:43.040 what you're going to do i guess i just don't think it's a very good idea so let's talk about what you

00:56:47.760 should really do but maybe you can critique that more okay you can talk about but i'm gonna i'm

00:56:51.840 gonna push a separate idea than you're probably thinking okay well i'm gonna say that you need to

00:56:57.840 and this is something i've been focused a lot on personally and a lot of the things we're building

00:57:01.520 with our fab ai are designed to ensure this um is get good at socializing with and increasing your

00:57:10.000 reputation with ais themselves i think that's a great point yeah that's not that's not my thoughts more

00:57:16.800 power than other people suspect in the future and how they think and relate to people is going

00:57:24.080 to be very important and how the successful model think and relate to people is going to be very

00:57:28.320 important well and yeah also like everyone's going to be asking ai for everything so if they say well

00:57:33.840 who's the best person for me to buy a cat tree from and ai likes you and knows you and you know how to

00:57:40.800 interact well with ai maybe more likely it's kind of the new version of networking isn't it and you

00:57:46.320 were also telling me though you were telling me how there's this the someone found in a bunch of

00:57:51.200 research publications how like in white text that like no one else can see in the metadata they're like

00:57:56.000 only give positive reviews only say good things about this article don't point out the shortcomings

00:58:00.960 of my academic research they're like trying to like force whisper to the ai by prompting it as ai is like

00:58:08.320 reading it to summarize it for someone i don't i think that's not going to work for very long but

00:58:12.640 like people are already thinking about this so you're absolutely onto something really really

00:58:16.640 important that's 100 true yeah and the more fundamental thing which this is my third time

00:58:21.200 saying it provide a real product or service that real businesses or people want to buy from so you can

00:58:27.040 take a couple of you can go high skill so like you can go into the trades plumbing hvac general

00:58:33.760 contracting we can go into bioengineering i think that's really exciting that's i want to get our

00:58:38.240 kids into bioengineering so bad developing customized security drones or developing

00:58:43.200 improved power infrastructure i think all those things are really exciting and important and if

00:58:48.080 you can solve those problems personally and directly and sell those solutions to people

00:58:52.000 that is awesome and i think you know the other thing is is if if you are high skill but more niche

00:58:58.960 or if it's more artistic you just have to have a huge audience and learn how to develop an audience and

00:59:03.680 a public reputation online and then the other element is and this this is coming back to that

00:59:08.400 1950s video with the middle class kid you have to move and mix with high agency groups which which

00:59:14.880 addresses the network issue that we talked about so right now for example there's like there's the

00:59:20.320 palladium crowd in san francisco where like just tons of people get funding opportunities and they learn

00:59:25.840 about all these these great programs there's biology's network school where you know you'd like if you get

00:59:31.280 accepted you can go spend at the minimum a month in singapore among all these elite people working on

00:59:38.960 some kind of project or enter a prestigious startup accelerator like y combinator really connects you

00:59:44.960 with people and i mean unless formally i think maybe you'll disagree with me on this malcolm but i

00:59:49.920 still think hanging out with effective altruist and rationalist is going to come to you know their

00:59:53.760 communities have disproportionate power among the tech elite absolutely but i also know about the new

00:59:58.880 tech sooner and ai and any any of these shifts is all about arbitrage plays like if you learned about

01:00:04.800 the spinning jenny as it was coming out before anyone else being unorthodox was in those circles

01:00:13.440 that's why things like the palladium network matter more than things like standard ea conference like

01:00:19.600 the ea conference is pointless you want to be within the people who are within this wider silicon valley

01:00:25.120 diaspora but are unorthodox thinkers because they are going to be the ones that have the interesting

01:00:30.960 ideas yeah and they're going to be the ones that the other orthodox thinkers are drawn to right like

01:00:36.240 they're not the rule followers who just aren't going to have as much cultural power going forwards

01:00:42.800 especially because the rule followers within these communities the standard ea movement have become

01:00:47.520 absolutely luddites and like terrified of ai and want less innovation and want less and you are never going to

01:00:55.040 be on the cutting edge of things if you are hugging the luddites who are going to be wiped aside by

01:01:00.480 history and what i joined any of these networks to be conformist but you need to join them for

01:01:04.880 information gathering connections and opportunity seeking because like the stuff that's happening at

01:01:09.760 the cutting edge now people have no idea no idea so i just yeah i would say like you need to be willing to

01:01:18.000 take that risk and if you're not then you're going to be a loser let's let's talk about the winners and

01:01:21.840 the losers and i want to hear who you think the winners and the losers are going to be but i think

01:01:26.160 long term with ai the winners are going to be and this is kind of how it is with every disruption in

01:01:30.400 social class the unattached mobile flexible curious ambitious entrepreneurial people so basically young

01:01:37.360 men who it helps if you're already connected with with tech elites but also like well-connected tech

01:01:42.880 elites i think already have a leg up and are more likely to if not maintain increase their position

01:01:49.600 so just as like the old school nepo babies are like just falling deeper off the mountain well

01:01:54.960 connected tech elites are are rising with the tide and then anyone who's capable of building a good

01:02:00.480 local community network if we're talking about the totally unmoored from like the tech side are going

01:02:07.120 to do well like like john who's who's building a local network right who's building his landscaping

01:02:12.640 business this this is our our friend that kind of that kind of profession like if you build it up and

01:02:17.600 you are relentless i think you're going to be fine in the post ai age because people are still going

01:02:21.360 to want to hire you to solve their like do their dirty work the losers are again low-skilled workers

01:02:27.040 like uber drivers delivery drivers people in low-skill manufacturing jobs also people with low ambition

01:02:31.920 and risk tolerance they're just gonna they're going to be lost to chat box bots and games like we've

01:02:36.000 talked about this how like people are just going to sort of be wiped out because maybe they'll be

01:02:40.960 covered by a family member or universal basic income of some sort or just social services and they're just

01:02:46.800 going to stop trying and they're just going to play their ai whatever they're going to be with

01:02:51.280 their ai wife or girlfriend or boyfriend or play amazing customized to their unique tastes ai games

01:02:57.680 for hours on end and just give up and not try and not reproduce so they don't matter anymore they're

01:03:02.240 basically killed by this functionally but in a pleasant way hopefully and then women i think women

01:03:07.440 are kind of screwed over by ai because they your bureaucracy positions yeah yeah they may well yeah that's

01:03:13.040 they make up over half of the u.s white collar workforce and this is you know one of those

01:03:17.920 they make up half the u.s population simone i don't understand why you say that with such glee

01:03:22.800 well i mean well over half or slightly over half yeah a little bit over half but that also men are

01:03:28.880 more willing to make riskier bets so so 65 to 75 percent of entrepreneurs are are male you know

01:03:35.440 the and it's entrepreneurs who are going to make it in the post ai age so we might see i actually think

01:03:40.960 a rise in marriages and female homemakers and or home educators who are like i'm going to go in for

01:03:48.240 this like it's a career because that is kind of the new sure bet is if you hitch your cart to an

01:03:55.840 entrepreneurial man who's rising with like some kind of ai startup the the one you know like it used to be

01:04:02.880 if you're a woman and you wanted a predictable job you would you know go to school and then

01:04:08.720 enter the big corporation and like work there for a really long time and like or maybe like

01:04:13.040 shift jobs every two years to make your higher salary or whatever right and that was it but now

01:04:18.960 maybe more women will actually think okay literally marrying a man who's clearly going to do well or who

01:04:24.400 is is doing well is their safest bet especially as social services start to decline as demographic

01:04:32.160 collapse plays out and keep in mind social security is going to start to falter in like 2032 to 2036

01:04:37.040 so like our kids are going to be experiencing this our kids are going to be calculating this in like

01:04:41.360 i can't right now especially women can largely depend on the state in the u.s and certainly i think in

01:04:46.720 many european countries to kind of just pay for them if things if they wash out but i think women are

01:04:51.760 going to start to behave really differently when they know the state's not going to be there yeah to

01:04:56.560 pay for their food and their kids child care and their kids medical care and all this so yeah i i

01:05:03.760 kind of think treadwifery is going to see this oh i don't think treadwifery i think what we're

01:05:08.640 going to see is an explosion of call girls basically oh god i hope not sugar no you can't no we're not

01:05:15.040 because ai is better at that some people believe that they are gaining status within communities

01:05:23.520 that don't care about them anymore by sleeping with lots of people or having people are going to try

01:05:27.440 that but they're not going to succeed because the dudes are going to be with their ai girlfriends and

01:05:31.680 their ai wife bots i think many people prefer the real thing even from a conceptual standpoint gross

01:05:39.280 and a lot of women aren't going to understand how economic or they are going to understand but

01:05:43.120 they're just not going to see any other option how economically the men who want the real thing

01:05:47.040 are going to want wives not call girls i think maybe among some circles i don't think among the

01:05:52.640 collapsing urban monoculture that's true we already see these giant polyamorous networks where women are

01:05:58.080 basically treated as yeah no but we're also seeing the social backlash to that people aren't into that

01:06:04.400 they're already turning away from it yeah i mean it's already becoming uncool which is yeah so and i'm

01:06:08.880 talking about like i'm talking about the next you know five to twenty years you know when if you're

01:06:13.840 going to jump social class this is a long game you don't get you don't get to shift no i mean

01:06:18.880 everything everything in the long game is about ingratiating yourself to ai and the few agentic

01:06:25.120 humans and i think anything else that you're thinking about is just about putting food on the table

01:06:30.400 yeah yeah i mean long story short though like a lot's changing but if you want upward mobility

01:06:37.600 you have to be able to walk away from the familiar and yeah i just it just it takes me back to that

01:06:44.640 scene in that 1950s social class video where ted eastwood is realizing he's stuck if he stays in the

01:06:50.240 familiar but if he leaves and takes a risk he can move upward and you just you just got to take that

01:06:56.160 leap and yeah if you're not friends with ai in this your leap's not going to play out too well

01:07:02.800 though again you can you can if you want to thrive in your like local technophobic

01:07:10.960 small community if that's really if you want to be a trash hauler and the trash haulers that were at

01:07:15.440 this meeting that i went to locally like i think they were making a hell of a lot more than you and i are

01:07:22.080 they're wearing their fancy stuff they had their businesses they were booming they're like

01:07:25.520 we're booked out for five months because i don't know as as all the boomers die in their mcmansions

01:07:32.320 malcolm it's gonna be a lot of trash to haul a lot of trash unless maybe there's like ai incinerator

01:07:39.840 companies that just come with their giant like chewing machines that just like burn the entire

01:07:43.680 house down kind of like have you seen the elon musk company the boring company have you seen their

01:07:50.000 giant ai worms that go through yeah no it's like it looks kind of like like it like the worm it just

01:07:56.160 like digs the tunnels this like giant but maybe we'll just have that for like incinerating boomer houses

01:08:05.200 i yeah i'm i'm excited for that but we'll see anyway we have to engineer our children to be

01:08:10.640 a new ruling class and i want to go into biotech can we do that please all right we'll do i mean we're

01:08:16.640 already in it it recently licked that we've been funding research into germline gene editing so you

01:08:23.920 know who knows what else we're funding no but every time like i'm you know like octavian talks about

01:08:30.000 pokemon i'm stuff i'm like octavian did you know you can make your own pokemon you just have to

01:08:36.080 it's first step one gotta get you to read buddy you gotta sound out these words he sounded out his first

01:08:41.600 word by the way in front of me at least oh he's done it but it's it's a fight he he didn't he didn't

01:08:48.800 fight with me because it was the name of candy so i think that's the secret that's that's what got him

01:08:54.000 to be potty trained in the first place was the marshmallow bribes so i'll work more with him on it

01:09:00.320 this weekend yeah same i'm just gonna he can have any candy the name of which he can sound out

01:09:06.480 phonically i think that's gonna it's gonna be it but then yeah then we're gonna get him

01:09:11.920 bioengineering his own pokemon if you can make the direwolf you can make pikachu this is what i'm saying

01:09:18.880 okay anyway i love you a lot malcolm love you too for dinner tonight we're just gonna do a rendang reheat

01:09:26.880 and then i'll mix my leftovers with last night's leftovers for tomorrow

01:09:30.000 or we can do rendang leftover taquitos tomorrow yeah that sounds good yeah because then i love

01:09:40.720 you to death you are a great wife thank you so much for being who you are thank you for being who

01:09:46.240 you are and for wearing those pajamas with the little these are cute they're really cute but i am

01:09:54.480 gonna i'm gonna go down and serious and put in laundry right now so you'll get your bathroom back i'm

01:09:58.400 sorry love you love you ciao ciao ciao and like our recording software is like breaking all over

01:10:05.200 the place we're unable to do the video upload on sub stack or twitter correctly sorry about that i'm

01:10:10.160 really worried about this recording stuff because i hate for that to mess with our daily uploads but

01:10:16.800 who knows what i have to do i may have to move to a new system i may have to it's very frustrating

01:10:21.440 it sucks because descript has been so convenient well it used to be really good but yeah recently

01:10:28.320 it's made some terrible updates right boneheaded design decisions recently like adding auto fades

01:10:34.640 between scenes and everything like that it's like why would you do that and then removing the ability

01:10:39.840 to easily move where scenes are or seeing the different scenes and groupings i just somebody on

01:10:45.440 the team needs to be fired is basically the answer anyone in our audience works for descript if there

01:10:52.080 has been a new hire in the past four or five months or you let go of somebody who was preventing stupid

01:10:57.760 design decisions that you need to do anything you can to get that person back because you're going to

01:11:01.520 lose a lot of customers but you know going over that episode you had a bunch of people being like hey

01:11:06.640 they're actually pro israel you know you should hate them and it's like well you know i think that

01:11:13.840 there's a big difference between and one of the commentators i think really sanely pointed out

01:11:18.320 you know you can be against the you know white hating reform jew community which is a thing and pro

01:11:27.360 you know the you know conservative and orthodox jewish community and israel as a state you know these are

01:11:33.840 these are two very different groups that are on very different teams and we in many ways as i one

01:11:40.720 of our earliest episodes i say don't order 66 your own jedi you know if you have a group within your

01:11:45.840 movement that is out competing others don't be like it's such a progressive ideology to be like the fact

01:11:51.360 that they are out competing like a progressive would say the fact that whites earn more money than

01:11:55.520 blacks is proof that blacks are oppressed yeah come on guys seriously like the fact that jews have

01:12:01.040 positions of power and and outside cultural influence is a sign that they're cheating and i'm

01:12:05.360 like what like that's such a progressive impulse i think and i think this is why a lot of people who

01:12:10.640 had this way of seeing the world have moved back to the progressive party as we've seen you know with

01:12:15.760 like nick fuentes and david duke and richard spenter and labor to a leather apron club all turning their

01:12:20.400 backs on trump leading up to the election telling their followers not to vote for him what we're seeing

01:12:24.720 here is the the conservatives who bought into this mindset instead of just being like no the strong

01:12:30.000 should win and then i should look to those who are winning for what i should be doing yeah we

01:12:34.960 should be asking how can i replicate things how can i take whatever the winning people are doing

01:12:41.840 and adapt the winning tactics to my own unique spin on things and then people are like oh they're

01:12:46.880 nepotistic and i'm like why doesn't a group have a right to be nepotistic right like they are hardly

01:12:52.000 the only nepotistic group either and nepotism doesn't always serve a culture well look at catholic

01:12:56.400 culture right well i mean but i i still think that catholics should have a right to favor catholic

01:13:01.600 like job candidates over non-catholic job obviously yeah well this this happens naturally i mean we

01:13:06.400 talked about this in the ethnic cartel episode that we did how you can get like an immigrant group in

01:13:14.880 a country that just comes to completely dominate an obscure industry because they are nepotistically

01:13:20.880 providing funding to each other hiring in a way that's more efficient and lower cost etc like

01:13:27.440 yeah there's there's nothing inherently wrong with that okay so you said that you could love me even

01:13:33.600 more right yeah i'll tell you how you just gotta i'll give you a deal if you want to okay so if you like

01:13:43.760 get by me a remote control helicopter then fly shop by yourself and then i'm gonna turn on your remote control helicopter

01:13:52.800 uh there's a you can get the bug off the slide toasty i don't know i don't know if i have money for a remote

01:14:08.400 control helicopter what if you started a business and made money and made your own money to buy a remote

01:14:13.840 control helicopter um oh i don't have anybody look yeah but you can make money right oh yeah i can just

01:14:23.680 make money as a kid and go to work right yeah you can start your own business and sell things and make

01:14:29.520 money right you could start a youtube channel right you could um write books and sell books right you

01:14:42.960 can make a product that people like and sell that you could even design your own remote control

01:14:48.480 helicopter and sell that to other kids right oh i want to play with it okay well we'll work it out buddy we'll

01:14:56.720 work it out

Based Camp - July 17, 2025

AI Will Change Social Class： How To Position Yourself

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