#399 — The Politics of Catastrophe
Episode Stats
Length
1 hour and 15 minutes
Words per Minute
189.30057
Summary
Mayor Rick Caruso of Los Angeles joins me to talk about the devastating fires that have ravaged the city in recent weeks, the role of government in responding to them, and what could have been done differently in order to prevent them.
Transcript
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rick caruso thanks for coming thank you sam thanks for having me anything happen in the
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last two weeks that you want to talk about only a couple of things man been a tough couple of
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weeks well so obviously we're going to talk about the the la fires and i think we'll probably also
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talk about california politics and and maybe politics in general before we jump in wait can
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you summarize your background as a businessman and as a political figure how do you come to have
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any opinions about what we're going to talk about here well i've been really fortunate sam in my
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life because i've been able to lead a life that is in business started my own business a number of
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years ago i practiced law before that wasn't a particularly good lawyer but it was great training
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and i was with a big law firm out of new york and i say that because the big law firm out of new york
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after about six years imploded it went bankrupt and it forced me to make a decision about starting a
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business and so from that standpoint it was really fortunate and a blessing and so i started my
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company and you know one by one built it up in real estate and um we've done some really incredible
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things because i've got an amazing team of people that are creative and innovative and imagine and
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we like breaking a lot of the sort of the normal boundaries and rules and then at the same time
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i uh was asked when i was 26 to be a commissioner when tom bradley was mayor i had no idea what that
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meant but i had a a good friend that was a commissioner and said he would make an introduction
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and he asked me what commission do i want to be on i didn't even know what to pick i said i love
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business and he said well how about department of water and power it's the largest public utility
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in the country and i said sure that one sounds good to me what do you do you just rent a copy of
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chinatown and blockbuster at that point exactly but you know i did that and i served under tom bradley
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i ended up becoming the president of that commission and then i left and then dick reardon became mayor
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and he asked me to come back because that was the days of uh oil deregulation energy deregulation
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enron was coming after dwp and dwp was at risk for going bankrupt so dick called me up and said you got
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to come back and restructure lapd and i did i mean la dwp and i did and then i left there and i thought
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my public service was done and jim hon asked me to come in and be the president of the police commission
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because at the time the police committee the police department uh was under a federal consent decree
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if you remember after the rodney king riots and it was just a mess crime was going out of control and
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officers were leaving so i came in and redid that brought in bill bratton and we got crime down to
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levels not seen seen since 1950 so i love public service and i've been able to do both so it's been
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really rewarding to me yeah well so we're going to track through all of this but i can just say that
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seeing the result of these fires and seeing the the response and uh the the leadership or lack of
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leadership that we witnessed throughout certainly in the the early days are there many of us in this
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town who if we could have built a time machine and gone back i mean after killing hitler and doing a
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few other nice things we would have figured out how to get you uh in the mayor's office in this town
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appreciate that we'll talk i guess i'll i'll ask you what could have been done differently given the
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resources in place if you had been mayor and maybe the answer is not much at all apart from the optics
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but the real concern is what we do going forward right how we rebuild how we use this opportunity to
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make that's right los angeles one of the great cities of the 21st century because we really have
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an unusual opportunity here we have a in some of the nicest parts of town we have a clean canvas
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and that's i want to talk to you about how we respond to that so i'm just going to go through the
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topics here briefly just to give listeners and viewers a sense of where we're headed
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i want to talk about what happened and and what could have gone differently uh the challenges of
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cleanup and reconstruction which uh everyone is is worried about and then i want to i want to talk
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about the politics i mean the cynicism around government the sense that government really is
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ineffectual and that and i'm especially concerned that a lot of very wealthy people feel that the only
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response to the the fecklessness of government is to figure out how to pay less in taxes as though that
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we're going to fix our problems i think we'll touch on the role that dei policies have played in
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california politics and whether there's anything to worry about here uh they certainly have made
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people cynical about government and then i want to talk about the problem of wealth inequality and
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the perception that there's a stigma around great wealth right that there's really no way to have
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become a billionaire ethically i mean that that is if you go left of center in our politics that's a very
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commonly held intuition which i think is wrong um and i want to talk about the role that philanthropy
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might play in performing an exorcism on all of this so that's where we're headed sounds good but
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to start i just said this is kind of a sanity check question i have for you which is given the reality on
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the ground let's say you had become mayor and you would have done all the mayoral things you would
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have done in the immediate response to this emergency the infrastructure was what it was on
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on january 7th we had 80 mile 80 mile an hour wind gusts coming across millions of acres of very dry
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brush and you know all that land has kind of a clear run onto the city you know through all of our
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canyons do you think that there's anything that could have been done differently given the resources in
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place and and the infrastructure we currently have on january 7th that would have made a difference
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absolutely there's no doubt in my mind and let me tell you why about six years ago there was a fire
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in bruntwood along the 405 freeway so for the listeners that may not know the geography that's
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about 15 minutes east of the palisades with a palisades fire and when that fire broke out it was put
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out pretty quickly it maybe took half a day or so but it didn't travel much and at that time i had said
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and i called people in the city there's 40 years of brush between bruntwood and the palisades and if
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it starts traveling west to fire it will come right down into the alphabet streets that's the neighborhood
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that backs up to the mountains there was no effort for 40 years to do anything about that brush
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so that was a predictable problem and i'm a big believer that when things are predictable they're
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preventable then on top of it some genius decided let's take one of the main reservoirs out of service
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during what's typically known to be a peak fire season when the san anna winds come up
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so we had a bad decision there we had a bad decision and not mobilizing the fire trucks into the area so that
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they were already there and could respond immediately rather than a delayed response time there was a
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whole series of things you could have done could it have been absolutely prevented because of the
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catastrophic winds i don't know only god knows what i am very certain of there was a failure of
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leadership at a lot of different levels and i've been very open about this including the mayors
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to not be adequately prepared and i think there's a lot of tough questions that need to be asked and
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people need to be held accountable but i just want to go back a little bit in time for a second
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the head of dwp i don't know her she was an appointee of mayor bass clearly she made a lot
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of really bad decisions and there was back in the day of tom bradley or a dick reardon or jim
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hon that i worked for there was sort of this golden rule that you didn't politicize these critical
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departments they had a sort of a life and death kind of function the department of water and power
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is supplying all the water and all the power to la city and it really was an engineering marvel it was
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known for the the greatness of the engineers in that department and as long as i was there for 13 years
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the head of that department always was an engineer that came up through the ranks so that they really
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understood the system that broke down some years ago with garcetti and the head of that department
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became more of a political person and i think that's just a mistake and we're paying for that
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mistake and a lot of others so yes i do think a lot of things could have been done better and people are
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paying the ultimate price for it a lot of people lost their lives 28 people now between palisades and
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altadena and lost their homes thousands of homes yeah just to uh remind people i think it's we're up
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to over 12 000 structures i think it's 15 000 now okay it's yeah massive amount of buildings yeah so
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given your experience at dwp what do you make of the fact that it was either a lack of water or water
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pressure throughout the city at a certain point clearly there has to be some way to modernize our
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infrastructure such that that wouldn't happen well there's no doubt but again the one main reservoir
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i think it was like over a million and a half gallons or something that was empty for repairs
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so that was one of the main problems the other two reservoirs that are smaller weren't being
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replenished with water quick enough now part of that in fairness is the amount of water that was being
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used but had the other reservoir been as a backup it would have kept it so the fire hydrants are all
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gravity flow there's no pumps pumping the water out and i think it was about 10 o'clock i got the
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call because we had one of our senior people up there embedded because we were obviously worried
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about our downtown that we built and he called me about i think it was about 10 o'clock and said we ran
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out of water and i said that's impossible how do you run out of water i was at dwp a long time
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people have been in the city a long time when was the last time you heard about running out of water
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and we've had some big fires this is one of the biggest but we've had some big fires and i'll give
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you an answer to it in 1961 the same problem happened the bel air fire and that makes this
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all the worse is that we had a situation in 61 where some of the hydrants ran dry and we didn't
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do everything we could to fix it and prevent it from ever happening again yeah i know a guy in the
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palisades who was very close to where the fire started i mean this was just a little fire up near the
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highlands and i mean he told me and said so i have this this is i guess some form of journalism
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here i'm talking to the homeowner who's telling me what his experience was when the fire department
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showed up at his house to fight the fire near his house the hydrant closest to his house didn't
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produce water so that's i haven't heard that that's crazy that's completely bonkers there was no pull on
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the system at that point presumably yeah it was nothing yeah okay so but this goes back when you're the
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the the mayor or the head of an organization and you know you have a potential crisis coming
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when you bring every one of your department heads in and say run me through your protocols tell me
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what your plan is and whatever your plan is multiply it times two so nothing bad happens right and be
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eyeball to eyeball which with each of these department heads i don't think that happened maybe it did so
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we'll circle back on some of these topics about what we should do but with respect to you you
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mentioned the alphabet streets and and that that's the area of just hiroshima like devastation that
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people have seen photos of yeah terrible we're literally virtually everything burned i mean there's a few
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home standing but do building codes need to be changed and zoning change i mean we're going to talk
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about the rebuilding there but is is do we have a problem of just density that's unsustainable with respect
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to some of these areas yeah listen as you know people that know the area the homes are very close
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to one another there but i wouldn't touch the zoning of the palisades i don't think this is the time
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to reimagine the zoning of the palisades i think it's a time to reimagine the infrastructure of the
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palisades to bring it into the 21st century to not rebuild the power lines that are running on poles
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anymore that they're underground right to upgrade the water mains throughout you know upgrade the street
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systems things like that but i would say i think people want their their neighborhood back and i
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think it would personally i can't speak for everybody in the palisades obviously but i wouldn't support
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rezoning and i know there's some efforts to do that and i would push against that okay we'll talk about
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the construction building building codes in terms of the kind of materials yeah absolutely and fire
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suppression systems or like sprinklers yeah absolutely well so as you said this was really
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predictable and even the insurance companies obviously started predicting this years ago because
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they started canceling policies in the palisades i mean how do you explain the fact that you have the
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insurance companies pulling out and they're experts so you can go back to look at old podcasts i mean
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joe rogan is recycling a clip of i think probably five years ago he was talking to some uh reporting a
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conversation he had with some fire marshal who said that yeah we're going to get the right wins one day
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and this whole city is going to burn i mean just this is a tinderbox given that people are anticipating
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this what do you make of the fact that more wasn't done to prepare again sam it goes back to bad
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leadership i mean i'm not trying to pick on somebody but somebody's got to be held accountable and that
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person is at the top and i also think it goes back to eric garcetti why didn't you as mayor he was
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mayor for 10 years clean out that shrubbery clean out the brush you know that would have been a very
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different dynamic had that been thinned out and why was the fire department underfunded you know it was
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one of the things i talked about in my campaign and there's been a video of that that's gone viral
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where i said i will fully fund the fire department since 1961 i don't have my numbers completely
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accurate because i don't have notes but since 1961 we have about two million maybe three million more
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people in los angeles we have 10 times now 100 times the amount of calls but now we have less fire
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stations and the same amount of firefighters i don't know if you saw the pictures because of the
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underfunding of la fire department the boneyard full of equipment yeah i did see that yeah it's crazy
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so we have the boneyard meaning these are these are trucks that are not serviceable right they're
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just because we don't have enough engineers to keep them running right we don't have enough
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firefighters to keep fire stations open so we've closed them it's insanity so the leadership has just
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misprioritized the dollars it's not a lack of money it's where the money's going in my opinion and
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i think government's number one duty is the the safety and the protection of the residents that
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your budget should be organized around it okay so um some structures in the palisades were saved
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and most conspicuously your your shopping center in the palisades was saved yeah through i'm told your
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efforts with it with private firefighters to save it what what did you do there and i want to talk
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about the ethics of private firefighting obviously but um what techniques were used and when is what
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you did there scalable it is scalable i'll tell you that we learned a lot building the hotel the resort
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that we were building up in montecito the rosewood miramar because when we were building that about
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the same time as we were building the palisades they were both coming out of the ground about the
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same time there was a massive fire in montecito if you remember and then after the massive fire
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montecito there were massive rains and that's when the boulders came down destroyed a lot of homes and
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people were killed it was just a terrible time but we were in framing up in montecito and what we knew
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is the fire department up there up in santa barbara rightly so will put their resources to the
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residential neighborhoods not the commercial and we didn't want to be pulling any resources from the
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residential neighborhoods so our team wisely when the fires broke out contacted private fire departments
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and some came in from colorado some came in from arizona and i'll tell you which i didn't realize
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at the time 45 of all wildfires in this country are fought by private firefighters this is a very
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large industry and we also brought in companies that had retardant and we brought in water trucks so
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we weren't pulling on municipal water and we were able to protect the miramar and get it built it
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it wasn't threatened to the same degree palisades so we had a playbook and we took the time over the
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years i've got the head of what we call a rapid response team for any kind of natural disaster
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we got a whole set of plans they go to that plan depending on the disaster the minute those when the
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wind warnings came out they went into action and the same teams that we used up at miramar were called in
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they were stationed up there water trucks were stationed up there the retardant company was
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stationed up there but where it really started was when we built it we built all of palisades village
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without any combustible materials even things that look like wood are concrete right they're just
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formed to look like wood so when those embers were hitting the building they were fortunately it
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couldn't ignite anything if you go up there now and look at one of the back buildings serena and lily
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the building is scorched because of the vegetation the plants but the building is standing and the
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inside is untouched we also designed it where there's not a lot of vents a lot of people's homes
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burned down because an ember went inside an air vent right inside the house so we designed it knowing
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we're in a high fire risk area and we had plans to protect it because we knew that now i think that's
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really good preparation and i do think it's scalable it goes back to as people rebuild their homes they
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should be encouraged required i don't know which yet to use more non-combustible materials and we should
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have more equipment in la fire department's arsenal that we can spray down neighborhoods with retardant
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that we can be stationed in neighborhoods and closer so that our response time is a lot less that fire that
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started i think you were talking about the friend you were talking to was two acres and because of
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the winds and by the time the fire trucks got there it got to 200 acres yeah you know in almost no time
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so i think our team did a great job and i absolutely have zero regrets of saving the village because we
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saved hundreds of jobs all those businesses are going to reopen the majority of those businesses are small
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businesses we have eight uh families living in the village we saved their homes we tried to save the
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homes across the street we couldn't they were just too engulfed but it's absolutely the right thing to
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do and it's going to be an anchor you know to give palisades hope to rebuild i guess the only ethical
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criticism that makes any sense at all to me is if you're pulling from municipal water and there's a
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zero-sum contest between what you're doing to save your center and what the fire department's doing
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to save a nearby home is was that the case at all in no the majority of the water that was used was out
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of our trucks was non-potable water right now the fire department responded but fortunately because we
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had our own people there they were able to pull off and deal with the homes right right but let me just
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add one more thing had the fire department been properly staffed nobody would need private
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firefighters yeah right so this is no different that's happening on the fire side than what's
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happening in the police side in la yeah you know we have an enormous detail of security on all of
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our shopping centers because the resources of lapd are so thin we have to be able to take care of
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ourselves yeah that's the perfect analogy i mean again leaving aside a tug of war between
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scarce resources of water but the water shouldn't be scarce i mean there's a failure of infrastructure
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and what's the inverse i always like when i posed a question on business like okay what's the inverse
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let it burn down let it burn yeah yeah then that's a good thing and then you're of course not and then
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i mean i would imagine the village alone probably employs directly and indirectly over a thousand
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people and one of the real terrible side effects of this fire is the thousands of people that have
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lost their jobs all these homes are gone yeah yeah they have no safety net and so i i feel very good
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about the fact that life is going to come back into the village jobs are going to come back in and we're
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going to be supporting people okay so let's talk about on that last point of people losing everything
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and many of these people certainly many are not rich i mean this is widely believed that this is all
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rich people you know justice however rough being visited upon the rich people of the palisades
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many of the people in the palisades were in those homes for generations right they were only in those
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homes because they were in them for generations that's right you know they bought their home for
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forty thousand dollars at one point and they stayed there yeah so and many of these people were
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underinsured or not insured at all because of the foregoing impressions of the insurance companies that
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we spoke about what is the insurance solution here or the or the solution to the insurance problem
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in this area and other areas of la i don't know exactly how you solve the insurance problem short
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of and this is not something i normally propose because i'm not a supporter of big government but
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i think the government the state and the federal government needs to step in because now you've got
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all this rebuilding going on if insurance is even available it's going to be incredibly expensive we're
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going through this now my son whose home was damaged is buying another home and got an insurance quote
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and i couldn't believe it last night at dinner when you tell me what the quote was yeah and to your
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point so many people in the palisades were house rich and cash poor because they had been there so
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long they're not going to be able to afford to rebuild and they're probably very much underinsured
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because they were smaller homes and then they're going to have to sell their lot their property in
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order to financially survive but i think the on the insurance side the federal government or the state
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government has to come in and backstop it i don't know another another way to do it yeah it does seem
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like a market failure of some kind okay so before we rebuild we have to clean up what are you picturing
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here for cleanup in the palisades i mean i guess we can talk about cleanup everywhere too but i mean you
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have we have all of this toxic rubble and ash i mean for instance in the palisades there's only two
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trucking routes out of there there's sunset i can't imagine them trucking all this ways to
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cross town over sunset so that the other is pch so i'm imagining they have to take pch to the 10
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and then to some dumps beyond yeah yeah it has to be a hazardous dump yeah so what what are you
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picturing that cleanup to be like and how stringent are the safeguards that we're not going to spread
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further contamination by moving the waste i mean i mean do they treat it like plutonium where literally
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things have to be in sealed containers or are we talking about open trucks with just tarps
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cinched across the top i'm not an expert on this sam i wish i was we're trying to learn about it
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you know that's a fema operation yeah i wish it was already started it hasn't started so fema does
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everything this is there's no local it's not a local well actually what we learned is as a private
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landowner you can opt to clean it up yourself to the california standards and there's i think a
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debate going on i don't know if it's been settled if it's going to be clean to california standards
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or federal standards so that's got to get settled first and then generally fema will come in and as
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i understand it they spray a bonding agent over the debris and that bonding agent prevents it from
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dusting up right becoming airborne and then it gets put into sealed trucks not just with the canvas
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over it and then trucked off it's a massive job has anyone estimated how long this is like when will
00:25:09.500
at what point will it start and how long i don't know when it will start i think we're gonna listen
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i think the issue that's out there right now is you know the president is coming in tomorrow he's gonna
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view the site i would imagine he's gonna see altadena also same problem in altadena and then he's got to
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allocate federal funding to do it and you know there's seems to be a little bit of friction between
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him and our governor and our mayor and yeah i i hope politics stays out of this because i think the
00:25:37.900
problems are too big for politics but i i don't know when it's going to start we keep asking questions
00:25:42.540
and haven't got an answer but it's got to start soon people need to they need to see hope and future
00:25:47.580
down the road they really do it's been two weeks now now how concerned are you about the health
00:25:54.540
effects of what's already happened i mean this is to tell people who haven't been paying attention
00:25:59.180
here there's a huge difference between what happened here and just an enormous forest fire
00:26:05.500
this was an urban fire right so we're not talking about wood burning we're talking about everything
00:26:10.140
burning this is this is paint and cans of pesticide and plastic and electronics and cars and electric
00:26:17.100
batteries yeah yeah so yeah and some some structures so certainly the older structures in the palisades
00:26:23.260
might have had asbestos in them right so we're talking about you know volatile organic compounds
00:26:28.220
like benzene and formaldehyde we're talking about um heavy metals lead and mercury and arsenic
00:26:35.180
you're painting a really beautiful picture yeah yeah asbestos has already been mentioned but there's
00:26:38.940
other contaminants like dioxin i mean all this stuff has already been liberated i mean we we the whole
00:26:44.300
city has been and even for points beyond have been blanketed in this stuff yeah in in the form of smoke
00:26:49.900
and ash i mean how concerned are you about the health effects of what's already happened and then
00:26:54.300
how concerned are you around the cleanup further exposure that is possible or just the fact that
00:27:01.180
it's sitting there now wind is blowing across these sites and ash is moving around you know it's it's not
00:27:06.460
the bonding agent whatever that is presumably you don't want that in your body either but that that
00:27:11.260
hasn't been sprayed yet no i'm very concerned about it and and because of that concern you know the
00:27:16.140
whole family moved out of the region and we've got our daughter-in-law you know who's pregnant and
00:27:22.940
that's high risk with these kind of vocs floating around so no i'm very concerned about it there has to
00:27:29.260
be incredibly high degree of care by anybody that's cleaning that up and that's why they've kept the area
00:27:36.220
closed out not to get in there but to your point as the winds are blowing that stuff is blowing all over
00:27:42.300
the place and it's a real concern and people have to be very careful about it so you know again i would
00:27:49.420
imagine it's no sooner than a year you know before new construction can start if there's work that's
00:27:57.500
being done with diligence which i hope it gets done in a year but the fact it hasn't even started
00:28:03.660
concerns me too because the longer all of those ashes are remaining the higher the likelihood they're
00:28:10.220
going to start being airborne right and traveling around right and one thing i think we need is a
00:28:15.980
a network of real-time air quality monitors that everyone can see and and scientists can study i think
00:28:24.060
it's a great idea and we we have this for smoke and and 2.5 micron particulates right and as i don't
00:28:31.260
know if you've seen the purple air network but it's just it's just a consumer driven network where
00:28:36.780
hundreds of people in cities all over the world have bought these 200 monitors unfortunately that
00:28:42.620
technology doesn't cover everything else we just talked about i mean it doesn't pick up lead and
00:28:47.100
asbestos and right vocs and but so i don't know i'm looking into this now i don't know how expensive
00:28:53.580
the technology is that gives you real-time readings of everything we're worried about but whatever it
00:28:59.420
is we need whatever it is all over all over town yeah so i absolutely agree because i think there is
00:29:05.900
a false sense of safety you know people look at their phone and they bring up the air quality in
00:29:09.900
a region and it's been perfect on days where you know the air smells like metal yeah so right exactly
00:29:16.300
it's it's not it's not what can be trusted yeah well i'm talking to the uh the purple air people
00:29:22.940
tomorrow oh good uh um let me know i'll keep you in the loop yeah let me know um okay so let's talk
00:29:28.620
about interesting name purple air yeah i've had one of these monitors for years and relied on it and
00:29:34.220
then was uh quite betrayed to see perfect air all over town while when i knew it was uh poison out there
00:29:43.020
so rebuilding we have a a massive coordination problem i'm trying to imagine conservatively
00:29:50.220
speaking like obviously businesses were burned too so let's say there are 5 000 structures in
00:29:54.700
the palisades that burned let's say there's you know 3 500 homes you know i'm just guessing but
00:30:00.460
how do those people as you said many won't want to rebuild or can't rebuild right so they're moving
00:30:05.500
away um so they're going to sell their land i don't know how all these individuals decide to
00:30:11.580
rebuild i mean it's easier for me to picture someone like yourself or some group of you know some
00:30:16.940
number of people developers like yourself buying up bigger tracts of land and building several
00:30:23.660
different types of homes say you know all at once and you know and getting some kind of economy of
00:30:29.260
scale and i just i just don't see how thousands of people independently do this and get their plans
00:30:35.420
approved but perhaps i'm just being naive is it no harder to do that than than what you would do if you
00:30:41.100
just had open land as a developer well if you just had open land as a developer it would be much easier
00:30:46.780
to your point for sure it's going to be complicated and it's going to be messy out there right you're
00:30:52.140
going to have a whole bunch of people building at the same time and and um and you're going to
00:30:56.700
have supply chain issues you know churches will be rebuilt and supermarkets and schools and yeah
00:31:01.820
that's right i mean again for people that don't know that the two supermarkets larger supermarkets
00:31:07.260
in the area both burned down many of the schools burned down the churches burned down yeah so it's
00:31:12.780
a massive effort the rec center burned down you know from the parks so that's got to get rebuilt i had
00:31:16.940
a call about that this morning with getting that started i i i think just to take a tangent for a minute
00:31:22.780
from my standpoint the priority needs to be getting schools and public spaces reopen and built quickly
00:31:29.900
so people can start coming back kids can get reunited with their friends those kind of things
00:31:35.340
but no it's going to be very messy and i think there will be developers that will go in there and
00:31:39.260
buy tracks try to buy a number of lots and build i my hope is that it doesn't look and feel like a
00:31:47.820
master plan community when it's done part of the charm of the palisades and i think altadena is the same
00:31:53.260
way because it was built over time there was a uniqueness to the architecture you know the size of the
00:32:00.140
homes the density the landscaping and if it looks like you know a master plan community i think would
00:32:07.740
have a very different field yeah i think there's a a halfway point though i mean maybe the developers
00:32:13.180
coming in and they're building five homes at a time or eight homes at a time i think that's going to
00:32:18.460
probably happen also but it's going to be it's going to be very messy and complicated but i'm i always run
00:32:24.620
really optimistic and i think once people start building and seeing the rebirth i think it's going
00:32:32.140
to catch on and it's going to take some time there's no doubt but i'm i'm pretty out of a first mover
00:32:39.180
problem because who wants to be the first person in a nice house living in where as far as the eye can
00:32:46.060
see there's nothing but construction yeah that's right i know so you sort of need you need a minimum
00:32:51.420
number of homes there already before anyone wants a home there you do and the huntington will grow back
00:32:59.900
quicker because of that because there's so much still left in the huntington that it still feels
00:33:05.260
like a neighborhood right the upper huntington has a lot of damage the lower huntington has almost none
00:33:11.820
so it's going to come it's going to come in in phases i think but i don't know sam it's there's a
00:33:18.620
a lot of people that aren't going to be able to go back they can't afford it financially there's going
00:33:22.220
to be people that are going to go get resettled somewhere else and not want to move their family
00:33:27.580
again but i really believe the majority of the people really love that quality of life of the
00:33:33.980
palisades and that's what's hurting them a lot is missing that so i i think it's going to come back
00:33:41.260
quicker than people expect all right well let's talk about the political implications of all of
00:33:46.860
this and how we move forward under the uh the current regime how might this be an opportunity
00:33:54.300
to completely reset california politics i mean so much has happened here it just seems that
00:34:00.220
everyone whether they're they're speaking this way or not has gotten the message that the future of
00:34:06.220
california politics has to be competence right i mean competence you know we need competence we
00:34:12.140
need compassion we need a few other things beyond competence but competence is absolutely the litmus test
00:34:18.700
especially when you're watching fire engulf everything in sight and so again this is not
00:34:24.620
this is not something that just hit people who don't have resources this hit everybody and this hit
00:34:30.780
people who you know who have through their wealth have done their best to immunize themselves against
00:34:36.700
you know every um species of dysfunction we see in our state right i mean this is something we'll
00:34:43.180
talk about when i when we talk about wealth inequality but it's just you know i i know there are a hundred
00:34:48.620
million dollar homes that burned down right i mean so like this is not something that you as a rich
00:34:53.820
person can say okay this is not my problem because i you know even with a private fire department i mean i
00:34:58.940
i know one case where there was a a home nearly worth a hundred million dollars that burned down
00:35:06.140
right next to two homes that had private firefighters and protecting them from the hundred million
00:35:11.980
dollar home that was burning down right so i mean i guess one lesson you could draw is that we needed
00:35:16.540
three private firefighters fighters there but it's crazy like this is it's obvious that every wealthy
00:35:22.620
person has a stake in the having valid infrastructure in this society and the optics of this that were so
00:35:29.820
you know again i i don't know we'll talk about dei i don't know that dei played any role here in the
00:35:35.180
incompetence that we're we're worried about or the lack of preparation we're worried about but
00:35:39.420
when you have the largest urban fire in american history and you see the evidence that the fire
00:35:45.980
department has spent some of its attentional resources if not its actual resources over the
00:35:52.140
years on dei and you know and you have interviews with people at various levels in the fire department
00:35:58.780
saying that you know this is you know what's super important is that you know someone looks like you
00:36:03.740
when they show up to save in your house and you have a a woman firefighter admitting that she couldn't
00:36:09.020
pull a man out of a burning building but it would be his fault for being in that building in the
00:36:12.540
first place and then you have elon musk send that clip to 200 million people right yeah whatever the
00:36:17.420
reality of the effect of dei the optics are terrible right and especially in a fire department all we
00:36:25.900
want is competence right and anything else is just masochistic insanity do you see the opportunity
00:36:31.740
for a political reset here i mean just in the process of reconstruction how we just bypass the
00:36:38.300
shibboleths and the interest groups and the the normal stalemate that comes out of that and just
00:36:44.300
say look this is what's going to work this is what is actually good for the state of california this
00:36:50.380
you have thousands of people lost their homes this is how you get insured we need a hard reset here
00:36:55.900
yeah i do and i think it was on its way and building that momentum before the fire hit and certainly the
00:37:03.900
fire i think changed a lot of people's views on it and there is an opportunity here that should be
00:37:10.460
taken advantage of where we start electing people to your point that are qualified that have experience
00:37:18.300
there's a competency level there's at least a competency level to know what you don't know
00:37:23.740
and surround yourself with people that fill in the blanks for you so you make good decisions that
00:37:29.980
understand running a complex organization like a city or a state isn't about you know how long you've
00:37:36.940
been in office or what party you're a member of i truly believe one of the big shifts we're going to see
00:37:43.340
is less of being concerned about what party you're serving and more about how you're serving the people
00:37:50.540
and i hope that's going to be the case because both of these parties are sort of closed loops
00:37:56.140
and you just can't run an organization that way and what we're seeing in los angeles that was building
00:38:02.940
up you've got people that are now on the council the dsa members that are the socialist group you know
00:38:10.780
still talking about defunding the police and closing the jails i mean this is insanity i don't
00:38:17.580
understand when you look down the future where does that get you what are you accomplishing
00:38:22.300
and i hope that certainly in the city of la and the state of california we're coming back to center
00:38:30.620
we went way far out and now we're coming back to center where there's a balance to it but sam i think
00:38:37.340
that people literally need to realize this sounds so corny but it's so true their vote really does matter
00:38:46.060
and so many people choose not to vote for whatever reason and to me the big wake-up call is get out
00:38:55.180
there and vote and make sure you're voting for the right person because those that like the dsa they
00:39:01.820
do that they're very good organizing they're very good getting their people out and now you've got four
00:39:07.660
dsa members on the council that's a serious problem yeah i mean so i'm glad you mentioned the
00:39:14.460
non-partisan aspect here because obviously the republicans can't quite take a victory lap here
00:39:19.900
in the sense that they're complaining about our lack of preparedness and our lack of interest
00:39:23.900
infrastructure but they're precisely the people who in years past would have not wanted to have spent
00:39:29.580
money preparing for anything they just want lower taxes right so it's like like you can't you really
00:39:34.460
can't have it both ways like this requires real investment which require which requires real money and
00:39:40.300
except i think a lot of people would say and i tend to agree with i don't mind being taxed but use my
00:39:47.500
money in the right way right i don't even mind i don't mind paying more tax but use it in the right
00:39:52.620
way that adds to quality of life that adds to the safety that creates better neighborhoods a better
00:39:57.580
environment all of those things yeah but don't waste my money yeah that means that that's what is so
00:40:03.500
there's a few things that are so socially corrosive here that leads to cynicism about government i mean one is
00:40:09.740
just the point you just raised we have so many activists and ideologues left of center in this
00:40:15.820
state with who will say things like defund the police even in the aftermath of you know arson and
00:40:22.060
eluding that gave us half the chaos we just lived through um i think the role of arson remains to be
00:40:28.060
seen but i mean what happened again last night the rest of the guy yeah i mean there's there there
00:40:32.940
has been arson i don't know if the the initial fire in the palisades was arson but there was certainly
00:40:38.220
arson there was arson from homeless people we've got this problem with with homeless people that
00:40:43.900
for which we have not found a solution i mean back in the during the george floyd riots you know that
00:40:49.980
it was not at all obvious that the police were going to stop people from going into homes in in places
00:40:55.420
like santa monica right it was just the police it seemed to me were much better and and the national
00:41:00.700
guard response came early in this crisis so that i think there's there was a noticeable change there but
00:41:07.580
the idea that in the especially during a public emergency that we don't have a stake in maintaining
00:41:14.060
law and order and that it's somehow a sign of compassion to just allow for a free-for-all of
00:41:20.940
looting i mean this is a you i don't know if you remember this or if ever crossed your desk this is
00:41:25.420
now four years old but i mean during the the george floyd riots there was a an editorial published by npr
00:41:32.060
our our uh uh most highest our highest brow um uh radio station that looting is is good and acceptable
00:41:40.700
right looting is a is a kind of new form of restitution yeah right and so it's that thing
00:41:46.620
needs to be purged from the conversation i mean the those people will still exist but the democratic
00:41:52.860
party in particular needs to understand that they don't have to be listened to ever again right like
00:41:58.300
this these are not voices that need to be responded to noticed worried about you know you can't be
00:42:04.140
defenestrated by these people if you don't care about them right it's just right and again this all
00:42:09.180
comes back to competence and sane compassion compassion that actually understands the causes
00:42:15.580
of human suffering and and goes to mitigate those you know if your house is burning the cause of your
00:42:21.260
suffering now are the flames right it's not the skin color or gender preference of the firefighter
00:42:26.780
is showing up that's right i would add though if you don't mind please i think competence needs to
00:42:32.700
be married with backbone and courage and one of the things that i've seen i think we've all seen
00:42:38.940
with elected officials their real priority is to get re-elected and so a lot of the decisions they
00:42:46.300
make they make through that lens that doesn't necessarily get you to the right decision usually it
00:42:52.300
doesn't sometimes maybe a well usually it doesn't and they have a time horizon over like to make a
00:42:57.660
long-term investment that's expensive right doesn't marry well to your time horizon where it's you know
00:43:03.180
two years or four years or six years or whatever you're whatever you need your soundbite for your
00:43:06.940
campaign that's right yeah i learned a lot when i was president of the police commission because i had
00:43:12.060
a situation i inherited a situation where we had a very very popular chief of police bernie parks who came
00:43:18.620
out of central casting looked great handsome guy wore the uniform great been with lapd years
00:43:24.700
he was just not the right manager a bad manager and he put in policies after rodney king that became so
00:43:32.060
draconian to the cops in terms of the system for filing any kind of grievance that it basically forced
00:43:41.180
the cops career to stop until that grievance was adjudicated which could take a year to two years
00:43:47.660
so what happened the cops aren't stupid they started not policing as proactively right because
00:43:54.540
they didn't want to get a complaint the gangs aren't stupid they started filing complaints against
00:43:59.900
cops so the cops wouldn't go into the gang's areas so we had the crime spiking we had an unhappy
00:44:06.540
workforce we had cops that were leaving because they didn't want to be part of that system and parks
00:44:12.700
wouldn't change it and we had a consent decree which he didn't want to follow so me and my fellow
00:44:19.100
commissioners made the tough decision that we're going to fire him you know and there's a whole
00:44:23.580
backstory on that and then my choice and and the commission agreed with me and jim hon agreed with me at the
00:44:30.300
time was bill brenton so now i'm going to remove this guy that has been part of the system for a long time
00:44:37.820
beloved by the city i literally had my wife would call me and say you know rick they're burning you
00:44:44.300
an effigy outside of city hall right now they were marching on the grove as we were under construction
00:44:49.420
to put pressure on me stopping construction it was just insane and i would say to tina i would say i'm
00:44:55.020
going to be home for dinner don't worry about it we're going to do what's right here and i called jim
00:44:59.580
han and i said i'm going to tell you that i'm going to select bill bratton and he has to approve
00:45:06.060
that as a mayor and i said i also want to tell you you can fire me at any time you want but i'm
00:45:12.060
going to bring you who i think is the best and that's going to be bill but it's going to be a
00:45:16.460
political hot potato i forget did bratton come from the nypd or is that nypd yeah yeah so you take
00:45:22.060
this guy not from lapd you take a guy with the boston accent doesn't look like you know whatever
00:45:28.940
brilliant cop by the way and to jim han's credit he says just do what you think is right
00:45:34.780
what i learned from that exercise it is so liberating when you're in a position to make
00:45:40.380
a decision where you're not worried about the consequence of the decision you're just worried
00:45:44.860
about is it the right decision and that decision did result in crime in la getting back down to
00:45:52.700
levels not seen since 1950 leadership matters good decisions matter backbone matters also bad
00:46:01.740
incentives are so corrosive right yes but what you just named there was this this perverse wheel of
00:46:09.340
essentially stigmatizing policing right where the police don't want to be complained about because
00:46:15.020
it causes consequences for them right everyone knows this so you can complain about the police to
00:46:19.180
keep them out of your neighborhood that's an incentive problem that needs to i mean there's
00:46:22.460
probably a hundred of those that need to be recognized and that's right it's also an insanity
00:46:26.380
loop yeah because you're just creating your own insanity over and over again yeah and we have that
00:46:30.940
now that's why we're so short of cops because so many of the cops in los angeles are under such
00:46:36.780
constrained rules that they're just they don't want they don't feel like they're being police and i'm not
00:46:41.820
talking about cops that want to go do bad things or take advantage of people i'm talking about
00:46:45.980
cops that take great pride in being proactive and protecting a community right but the rules that
00:46:52.140
garcetti has put put him when he was mayor that have remained under bass allow crime to rise because
00:46:59.660
police are not allowed to be proactive yeah yeah well so um how do we change that i mean how can we use
00:47:08.540
this moment of rebuilding to solidify some gains in in political sanity here i'm not uh i'm not sure i
00:47:18.700
know the answer to that i'm sure i don't know probably the answer to that i hope i really hope sam
00:47:24.380
that people have you know from all different backgrounds and political beliefs and whatnot woken
00:47:29.740
up to what you're saying is let's just hire competent people for the quality of life that we want
00:47:35.020
and and and and not worry about this whole ideology system that we were so married to for such a long
00:47:44.140
time and um my feeling is that so much of this is a um while it's often not explicit so much of it is
00:47:52.700
responsive to the problem of wealth inequality i mean so so much of the concern about identity politics
00:47:59.020
is being driven by a perception of class difference right because because there's a obviously a
00:48:04.860
significant correlation between class difference and difference in racial outcomes right because of
00:48:10.700
the way wealth is is spread around uh and all of that class difference correlates with you know
00:48:16.460
academic outcomes and and health outcomes right so there's just a lot of there's a lot that's
00:48:21.980
that's attached to this issue of the uh inequitable spread of resources in our society and i feel like we're
00:48:29.500
reaching some kind of tipping point if we haven't reached it already i mean
00:48:32.380
that where rich people seems to me are just they're worried about class war right they're worried about
00:48:39.180
themselves they want it they just they want their freedom to make money and freedom to live beautiful
00:48:43.580
happy creative lives they want to be insulated from the chaos of the world they don't trust government
00:48:49.020
as you say to successfully insulate them because they're worried that if they pay more in taxes
00:48:54.300
they're not going to see a better fire department they're going to see a government that wants to spend
00:48:58.780
that money on dei initiatives for lumberjacks or whatever it is like it's going to be just pissed
00:49:04.860
away on some insane and ideologically driven program clearly what we need is a system where
00:49:12.140
rich people understand their connection to the common good and can see when they pay taxes that
00:49:19.580
the money is spent sanely so that we have you know clean streets and orderly neighborhoods and beautiful
00:49:25.020
schools and beauty and just you know all of that should be possible right yes it should but when i
00:49:31.020
ask myself how we get from where we are to a fundamentally different relationship to you know
00:49:37.500
from the people who don't have much their relationship to the reality of inequality the reality of the rich
00:49:44.220
people in their midst and from the the side of the rich people i see a role for philanthropy here that i
00:49:50.460
i think i don't see how we get around because i mean one of the so on the side of the people who
00:49:56.940
don't have much right i mean i see a tremendous amount of resentment of wealth right and some
00:50:02.780
delusional notions about economics i mean just this the notion due to that the writer balzac
00:50:08.780
behind every fortune there's a great crime right i mean or but you have people like elizabeth
00:50:13.420
warren and bernie sanders and other people at the national level talking in these terms and i'm
00:50:17.660
sure we have local politicians you know certainly your socialist friends will be talking this way
00:50:22.620
just that there's there's no way to get really really rich without perpetrating some kind of
00:50:27.980
fraud right and that the capitalism is broken is if it's producing billionaires now we could go into
00:50:34.060
why that's not true or not likely to be true but one thing is obvious we don't want to create an
00:50:39.100
environment in california where rich people just decide well it's better life is better elsewhere this
00:50:45.180
this is this environment is hostile to wealth right we have i think it's still the fifth largest
00:50:51.500
economy in the world it is right that's right and yet we have these two cities la and san francisco
00:50:56.860
which to one or another degree can be viewed as almost failing cities i mean they're like yeah and
00:51:03.020
and they're and they're the engines of wealth in the fifth greatest economy in the world right
00:51:09.020
here's a here's one moment this is not um i could be reading too much into this but when i was
00:51:12.780
online during the height of the fires and i saw it reported that steven spielberg's house was saved
00:51:19.500
i saw all of these cynical comments and even a cynical article and even even journalistic efforts
00:51:24.860
that were expressing cynicism basically saying well look see look it must be nice to be rich right
00:51:30.060
look at his spielberg's house was saved and i knew that most of these people had probably bought
00:51:35.340
a ticket to every one of spielberg's films for the last 50 years right so like so that that level
00:51:41.260
of resentment and schadenfreude and and the stigmatization around wealth seems to me to be
00:51:47.020
so unhealthy and and illogical because all these people want to be wealthy right i mean they they
00:51:53.980
would want to be living like spielberg i think if they take 10 seconds to think about it they want to
00:51:59.340
live in a in a society that is just pulling abundance out of the ether right they they want
00:52:05.260
all boats to be rising with a tide of of great abundance and so there's something aspirational
00:52:11.020
about wealth that in you know in another mood they they can tap into right but there's this sense that
00:52:18.220
the system is rigged and people are just in it for themselves and what i see from the wealthiest
00:52:25.900
rather often is yeah a sense that you can't trust government right so they see the dysfunction of the
00:52:31.340
the government and it just looks like an argument for paying less in taxes where in my view the
00:52:36.780
dysfunction we see in government is an argument for better governance right we should want the
00:52:40.540
government they could spend our tax dollars absolutely but there's a sense that yeah yeah
00:52:45.100
you you can live behind your walls and you can fly privately and you can you know you can get your
00:52:49.420
private security force and your private fire department and you're good but the reality is is that
00:52:55.500
again i just i told you about a billionaire who lost his home because he didn't have his private
00:52:58.780
fire department perhaps but no matter how wealthy you are no matter how immunized you are if you have
00:53:04.380
to step over a homeless person to get in the door of your favorite restaurant in this town yeah your
00:53:09.420
quality of life is diminished right absolutely and if you're living in bel-air right now you're breathing
00:53:14.860
the asbestos and the arsenic and the and the vocs that are wafting all over this town right now you
00:53:21.820
don't have your own air we have to solve this problem together and so yeah i don't know if you saw this
00:53:27.500
pitch i made on my blog but i find i realize i'm i'm giving you a lot to get your chance to react
00:53:33.580
but uh let me just vomit my socialism on you for a moment i mean it occurs to me that you know you
00:53:38.620
i know you're very philanthropic and and i am at my level and you know we're surrounded by people
00:53:43.660
who give a lot of money away i think you just gave five million dollars to the fire department right
00:53:48.540
which is wonderful but the reality is that i mean we know people we know single individuals
00:53:54.380
who could take away all of the financial concerns of this whole area literally make everyone who lost
00:54:01.260
their home and wasn't insured whole they could find everything that's not covered by insurance
00:54:05.740
right and i think i think this is estimated to be a 50 billion dollar problem and there's 20 billion
00:54:10.220
coming from insurance perhaps we know people who could lose 30 billion dollars and nothing would
00:54:17.500
change about their lives and they could lose 30 billion more and nothing would change and even 30 billion
00:54:22.540
after that and nothing would change right i mean we know those people right and what and so they're
00:54:27.660
obviously there are things like the giving pledge where you have a lot of rich people who who have
00:54:32.140
vowed to give you know at least 50 of their wealth away at some point but in most cases this means upon
00:54:39.020
their death right the pledge i'm imagining is uh more aggressive than that and it's based on this
00:54:44.700
recognition that at whatever level of wealth you're at right let's say you have a billion dollars
00:54:51.420
there's some amount of money that truly wouldn't matter to you that if it went missing nothing
00:54:59.580
would change about your life right you're like you know how much your kids are going to get you know
00:55:04.380
how you want to live you know how many homes you have and this is true so this is certainly true if
00:55:10.060
you have a billion dollars or two billion dollars you are living exactly the way jeff bezos lives
00:55:15.900
right or elon musk's lives i mean like like there's there's no i mean you correct me if i'm wrong but
00:55:21.100
i think that the you know the only thing that changes is that maybe you have a bigger boat
00:55:25.740
if you know maybe you don't spend 500 million on a boat if you only have a billion dollars right
00:55:30.620
most likely not yeah but you're i mean that you know we're talking about p the difference between
00:55:35.900
a billionaire and someone who has 10 billion or and certainly the difference between someone who has
00:55:40.140
10 billion and someone who has 100 billion that's not reflected in the style of a person's life they
00:55:45.980
have all the same homes they have all the same planes i mean it's just it's all the same right and so
00:55:52.860
one could recognize that there's a certain amount of money that will only ever be just a number in a
00:56:00.140
spreadsheet right for as long as you live and for as long as your kids live right there's just it is
00:56:05.340
just an idea of how wealthy you are it's a way of keeping score between yourself and the other
00:56:11.420
wealthy people what i imagine is that you know and this is me trying to however ineptly and
00:56:18.140
sanctimoniously trying to move the overton window around philanthropy where we get you know all the
00:56:24.780
rich people and again this this is not just billionaires this is because there are other sort of
00:56:29.340
valleys here where if you have a hundred million dollars and you're you know at the level of a hundred
00:56:34.300
million dollars you're not saving up to buy a 75 million dollar gulf stream right so there's certain
00:56:38.300
things that are just off the menu for you right and then and you might recognize that you would
00:56:42.460
live no differently if you only had 90 million dollars say right but so the argument runs through but
00:56:47.500
what i'm trying to argue for is that we have a lot of very very wealthy people and you and i know
00:56:53.100
many of them by name and have relationships with any of these people they could pledge to use their money
00:56:59.580
they could start using their money now on problems like this and their lives would be completely unchanged
00:57:05.580
and yet the default norm is to just hold on to it right just to hold on to it till you die
00:57:11.420
and you will know on your deathbed that you had that amount of money and whether it's going to your
00:57:15.660
kids or not you know you went for decades without relieving all of the suffering and building all
00:57:22.540
the beautiful things that could be built with that money and you know in my view this wouldn't take
00:57:27.820
this this isn't a matter of people selling their interest in their companies this is just you could
00:57:31.900
be giving some charitable at active charity and interest in your company right so anyway i mean
00:57:38.460
that's my pitch for much more aggressive philanthropy okay so this is like the the the ultra pledge you
00:57:45.100
know this is the the extra pledge the part which you could even you whatever that number is
00:57:50.140
you could cut it in half just in case you thought you needed the other for a rainy day on your on your
00:57:54.700
yacht whatever that number is there's some number and in the case of truly wealthy people the number the
00:58:01.820
number is so much bigger than anyone actually gives because i i you know i know what people give and
00:58:07.820
even the people who are give a tremendous amount of money it is in almost every case it's nowhere near what
00:58:14.780
could possibly show up as a sacrifice of anything in their lives and what i'm arguing for is not
00:58:20.620
sacrifice i'm i'm defining this in terms of the portion you you know couldn't conceivably impose
00:58:26.940
a sacrifice on you right it's still enormous right so this is the this is the kind of arm twisting you
00:58:32.940
get on this podcast okay no it's an interesting idea i have what what's what's wrong with it well let me
00:58:39.820
just start out by saying i think it's always good for people to be generous to the point that
00:58:46.620
it's a little bit painful so i take a little bit different point of view i think i think you have to
00:58:51.180
have everybody has to have great generosity especially people with means there's no doubt about it people
00:58:57.340
that i know and i certainly know how my wife and i run our lives we give a lot away we give a lot of
00:59:04.300
money away we give a lot of our time our kids are all involved and we take great joy in that
00:59:11.100
it brings us a lot of joy but i also believe that you've got to be so careful in philanthropy
00:59:18.060
because just giving away money depending on where it goes what it's used for doesn't solve a lot of
00:59:24.380
the problems it's hard to do it it's hard to do it well and it's and it can have perverse effects
00:59:28.780
it doesn't even mean like tina and i spend an enormous amount of time and money with children
00:59:35.740
who are at or below the poverty line who are living in the toughest circumstances living in
00:59:42.060
the housing projects of los angeles nickerson gardens that need to sleep on the floor because
00:59:49.180
the worry of night of bullets coming through your window and they're probably maybe that family's
00:59:55.820
making 20 000 a year and trying to survive dear families great families our money goes to educating
01:00:04.380
those kids right supporting the kids educating the kids bringing an ecosystem around those children
01:00:10.300
and it's amazing how they take off in the success that we've got kids that have been on our program
01:00:17.900
called operation progress it goes from third grade all the way through college and there's kids now in
01:00:23.100
harvard and columbia and sc and ucla and mit that to me is solving a problem and then those kids
01:00:30.860
hopefully come back into their neighborhoods and they give back and everything i mean i think that's
01:00:35.180
fantastic but that problem is being under resourced you're doing what you're doing but what would you
01:00:41.020
do with a blank check it is under resource sam but i was just trying to respond to the idea of giving
01:00:47.900
away a lot of money like going and giving away a lot of money i think a lot of times creates more of
01:00:53.980
a problem or makes the problem last longer than solving the problem we have bad incentives we have
01:01:00.700
bad incentives so listen i i don't know most people that i know are really generous and they're not
01:01:07.260
they're not no no no no okay i think they are no well no so i think it's easy to give away other
01:01:12.540
people's money too the people the people who you don't know the demands the people who are middle
01:01:17.980
class or just like moderately wealthy when they give money they're they're often giving a much
01:01:23.660
bigger percentage of their wealth than billionaires are but you don't know the demands listen there's
01:01:28.860
people that are not generous or there's people that don't give as much as they should of course there
01:01:32.780
are but it's easy to sort of generalize you look at you know my wealth is very different than
01:01:40.060
somebody else's wealth that has a public company right my my wealth is very illiquid somebody that
01:01:48.140
has a public company is very liquid so the constraints on me giving something away are
01:01:53.580
very different than the constraints on somebody giving away shares in a company right i can't give
01:02:01.020
shares of the grove it doesn't work that way right right so there's always different levels to it also
01:02:07.740
but i think but anyone could give whatever percentage of their income stream to this new entity
01:02:15.100
right i mean like they could i mean we give away on average about 20 percent i think that's a very
01:02:21.020
large number well so but this but again this is me pushing on the overton window i mean because i'm
01:02:26.460
not i'm twisting your arm it's a perverse irony that i'm twisting the arm of already a spectacularly
01:02:33.020
generous person that's okay by by buying and i'm not trying to be the defending agent of billionaires
01:02:39.020
yeah it's not that's not where i want to that's not where i want to be or i intended to do that no
01:02:43.740
but i just think it's very few people see wealth as i mean one of the great things you get to do once
01:02:52.700
you're rich is solve problems for which money is the solution right i mean like that is just it's
01:02:58.940
incredibly rewarding i mean to come back to the point you made like the incredibly rewarding it is
01:03:04.060
a source of a genuine source of happiness right to be able to help people i agree and there's just
01:03:09.100
and the targets the appropriate targets for that help are practically numberless right i mean and this
01:03:15.740
is a you know we're i'm talking we're talking about the rebuilding of los angeles which i think is
01:03:19.340
an important project but you know obviously the the need at a global scale is absolutely enormous but
01:03:25.740
the point i want to make is that you and there's there's no person who wants to feel like they're
01:03:33.580
making a pointless and painful and solitary sacrifice right like like like the retort to much of what i'm
01:03:41.180
saying is like okay you can volunteer to pay more in taxes that's right like like no one's stopping you
01:03:45.660
sam go out there and just double your tax burden right right but the sense that that will be ineffectual
01:03:51.500
the sense that that's not going to matter in the end that's what makes that just a non-starter but
01:03:57.740
there really is i just do see that there's a new norm that we could have around wealth where we
01:04:03.740
recognize that one of the great things you get to do when you become not just a billionaire but a
01:04:08.780
million you know multi-millionaire someone who just has more than than they need at any stage
01:04:14.620
you get to solve problems you get to help people and and it feels fantastic and i feel like we're just
01:04:21.340
just where there's a landscape of possible kind of social and psychological attitudes toward all of
01:04:26.700
these things we're talking about and we have found a low spot you know culturally where there's just
01:04:32.460
like a a ridge line of cynicism we have to get over in order to find some happier spots on this
01:04:37.740
landscape and we're in this low spot where most people think okay it's just virtue signaling you know
01:04:42.380
you're talking about giving money away and you're just trying to cover the fact that you've just
01:04:45.340
hoarded so much for yourself and it's like it's not you know you can talk about it being important to
01:04:49.340
you but we just know that you're holding on to how do you solve the problem right how do you get
01:04:52.860
people to do that you actually just well i think you can demonstrate that it is genuinely rewarding
01:04:58.860
and i think but the thing i think it's a coordination problem i think the culture of very wealthy people
01:05:05.660
you know the kinds of conversations we have in private the kinds of things we say we're doing we need
01:05:12.140
to inspire each other and we need to and and there needs to be the kinds of things we would we when
01:05:19.020
i'm around a lot of wealthy people the conversation turns to just like what what are the where are the
01:05:24.060
great places you're you're vacationing right and how fun is it to talk about that and it's like with
01:05:28.380
like what's that hotel like and they're like it just and it's fun to just we want that information
01:05:33.340
and it's just fun to hear about it and i want to go there and that's all great there's nothing wrong
01:05:36.780
with that that's one great thing that money is for but what i'm not hearing so much when i get into a
01:05:41.660
room filled with super wealthy people are just the amazing things they were able to do to solve
01:05:47.900
people's needless misery because they had the money to do it right and and it would it sounds like a
01:05:53.660
strange there's this maybe it's a quasi christian ethic but the idea that you should do this you
01:05:58.620
shouldn't wear that on your sleeve you should do this in silence because otherwise you're you're
01:06:03.340
encouraging the sin of pride or or something right right but i really think we actually need to
01:06:10.220
be honest about how good this feels and about how this is one of the good things in life
01:06:16.140
and i mean honestly you're like i remember you and i don't know you and i've had exactly one lunch
01:06:21.340
you know before this conversation but just being at lunch with you and hearing something about your
01:06:27.340
philanthropy i forget even how we spoke about it i mean we talked about the the giving you you do
01:06:32.380
around homelessness and in downtown la it just inspired me to give a bunch of money away you
01:06:38.300
gave yeah very generous and it was and and so at my level that was like a a lot of money to give
01:06:44.220
away but it was purely based on being inspired by you right i appreciate that not enough of that is
01:06:51.180
happening and how do we do more of that i mean i love that idea actually well i mean i don't know if
01:06:56.060
you saw the so i i singled out the resnicks in this in this blog post because as i think you probably
01:07:02.140
know they're being vilified online as some of the major water users in the state and as you know i
01:07:08.300
don't think there's a direct connection between the water they use and the water that didn't come out
01:07:11.580
of the tap when we needed it but not at all but i just in as a way of kind of resetting people's
01:07:17.660
sense of this i just imagined what linda resnick or stewart resnick could do if they were you know feeling
01:07:23.980
the epiphany that i'm trying to urge upon them should go knock on their door yeah well i i could
01:07:29.900
i might have done it with this blog post but um yes i guess you did they could easily say you know
01:07:35.340
listen we're we're incredibly fortunate to have lived in los angeles for 50 years we've built amazing
01:07:40.860
businesses here we've made amazing friends you know we have we have given back to the community
01:07:45.100
in all kinds of ways you'll notice that there are buildings in this town that have our names on them
01:07:48.780
but we recognize that this is a totally new moment and we're in our 80s and we we know we're not even
01:07:56.140
going to live to see the thing we now want to build but we want we want our grandchildren to live in a in
01:08:01.820
in the most beautiful city in the world for the rest of this century so we're going to give 90 of
01:08:08.060
our resources away right now for the reconstruction of this city and we're not going to just hand it over to
01:08:13.740
the the government for dei initiatives obviously but we're going to pull together a team of the best
01:08:19.580
advisors we we can pull together and in concert with with the same administration yeah amazing and
01:08:27.020
we invite all of our rich friends to join us you know we've got 12 billion we're going to give 10
01:08:31.820
billion right now you know so that the 10 billion share in all of our enterprises is now going to this
01:08:37.340
project and we've still got 2 billion we're going to drive the same cars and live in the same house
01:08:42.460
we've got no problems obviously but this is what we're doing and this is this brings us joy now i
01:08:50.060
don't see how it's possible to be cynical about that that just seems like an intrinsically good thing
01:08:55.180
and it just seems like if they did that i think it would be so obvious to everyone that okay this is
01:09:01.740
why you get rich this is what wealth is for this is the best game you could play it would be an amazing
01:09:07.180
thing no doubt it'd be an amazing thing and i wish more people would do that and some people have
01:09:13.820
given away you know the majority if not all of their fortunes i mean you read about that so it does
01:09:19.900
happen but i would also say on that just reflecting back as you were talking and i i would imagine the
01:09:26.780
resnicks are very generous on their own but it takes again it's a role of a city leader to help do that
01:09:35.180
and a guy who was really great at that was dick reard and dick reard and his mayor he wanted to get
01:09:43.100
certain things built or certain cultural institutions stronger and on and on and on and he would call
01:09:49.980
around and he would start out by saying i'm putting up x and i'd like you to match x and he did that
01:09:58.140
until he raised the money and i was usually often the recipient of that call but i always admired him for
01:10:03.580
doing that that's good leadership and i i do hope that happens more but here's what i see teen and i
01:10:10.780
did do that lead gift you mentioned for the fire department we didn't do it for publicity we did it
01:10:16.300
because the fire department has been so underfunded it needs the equipment and we wanted a challenge to
01:10:22.460
raise 20 million dollars teen and i were convinced that this city there's enough people in the city that
01:10:28.700
will rally around it we raised the 20 million dollars in less than a week it's pretty remarkable
01:10:35.420
right yeah the fire department told us their ability now to do things is forever changed they
01:10:42.060
didn't have like bulldozers to move earth during these fires it was crazy so what we plan on doing
01:10:49.020
is rinse and repeat rinse and repeat to help the area in the palisades and in altadena also and
01:10:57.420
hopefully more people will do that now i'm not saying i'm going to go give away 90 of my net worth
01:11:04.540
because if i gave away 90 of my net worth i wouldn't be able to keep my businesses going
01:11:10.220
well i i think there's i mean correct me if i'm wrong but there's got to be a way to do
01:11:16.220
something like this while maintaining your business right like it like you do you pick that
01:11:21.980
number that works right but i mean like if mark zuckerberg gave 90 of his interest in in facebook
01:11:27.660
away today he'd retain he would just retain all of his super voting rights i mean he would he would
01:11:33.340
he would maintain control of the of the company and the money would still just flow to these to
01:11:40.140
this this entity that he had set up it's a that's not not when he dies and you know a thousand years
01:11:46.140
once he solves the problem of aging but now it would start working now and be a beautiful thing
01:11:51.260
i can't argue with that i mean especially at that level of kind of wealth yeah it would be a beautiful
01:11:56.300
thing but i also think there's a beautiful thing in the power of people coming together at every level
01:12:02.700
like they did the fire department foundation we had people put up two million we had people put up
01:12:08.540
two hundred dollars right but collectively 20 million bucks in a week and that was just awesome
01:12:15.100
yeah so we're going to do more of that well done well rick um i hesitate to ask your your uh
01:12:22.300
future aspirations politically because i want to but you will twist your arm in that that direction
01:12:27.500
is there anything you want to talk about on on the horizon do you have thoughts about running for
01:12:32.460
anything i i love public service so it's it's in my blood i've done it for a long time would you run
01:12:39.740
for governor would you run for mayor again what's what's possible i don't know i really don't know
01:12:45.420
and i'm not trying to be the typical politician that says i don't know i just really don't know i
01:12:50.300
loved running for mayor i love the campaign i love being with the family i love meeting people all around
01:12:56.220
the city it was just it was so rewarding for us we loved it and that's a good sign because it looks
01:13:02.780
excruciating from someone who's not built that way yeah it looks i mean that that's the barrier the
01:13:08.140
idea that it would just be tortured to go through the process yeah yeah but what what what i didn't
01:13:14.300
expect was the fuel and the energy i got by seeing people becoming hopeful that someone was going to help
01:13:23.020
them come to their rescue that so many people that don't have a voice don't feel like they're ever
01:13:27.820
heard that are sort of lost in the system and in a lot of these neighborhoods i mean there was a lot
01:13:33.180
of hugs and a lot of crying it was just it was wonderful so from that standpoint i'd love to do it
01:13:39.660
what i hated about it was the democratic party so scared that i was going to come into their tent
01:13:46.380
that they they rallied like never before in a mayor's race the president flies out biden flies
01:13:55.420
out harris flies out campaigns for for bass yeah pelosi bernie flew out i mean they were all flying out
01:14:04.700
and up to the point right before the election we were still running as a democrat and running as a
01:14:10.380
democrat being treated as a closet trumper or you know treated as a new person and we've got a career
01:14:17.180
politician we're going to protect she's part of the system up until right before the election we're
01:14:23.340
still tied we're right on top of each other from the polling and then they finally convinced obama to
01:14:28.460
come into it now whether that moved it or didn't move it or there are other things i don't know but to
01:14:33.980
have that kind of energy to stop somebody from getting in just blew my mind right yeah why not just
01:14:42.060
let the system work so you know i would love to serve i think i could i know i would work hard i
01:14:49.580
think i could do a good job i would certainly do my best but i just got to get around the idea of
01:14:55.100
of going through that again i feel like we're at a different moment i think a lot of it could be
01:14:59.900
that that is has been uh but it's it's corrupt yeah the system is really corrupt and you got to
01:15:08.380
break through that you got to break through that yeah well um if and when you make that decision we
01:15:15.100
will have another conversation about it i look forward to it okay yeah yeah thank you so much for
01:15:19.500
your time i know it's a very busy couple of weeks so yeah let's get back out there and yeah keep that
01:15:25.020
suit on at least one person dresses as a grown-up in this town so thanks for having me sam really