The Auron MacIntyre Show - August 28, 2026


Social Currency Is at the Heart of the Affordability Crisis | Guest: Johann Kurtz | 8⧸28⧸26


Episode Stats


Length

49 minutes

Words per minute

178.28

Word count

8,740

Sentence count

235

Harmful content

Misogyny

9

sentences flagged

Toxicity

3

sentences flagged

Hate speech

14

sentences flagged


Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.520 It's the family and friends event at Shoppers Drug Mart. Get 20% off almost all regular priced merchandise. Two days only. Tuesday, September 1st and Wednesday, September 2nd. Open your PC Optimum app to get your coupon.
00:00:13.320 hey everybody how's it going thanks for joining me this afternoon i've got a great stream with a
00:00:31.340 great guest that i think you're really going to enjoy so of course the affordability debate
00:00:37.240 continues to rage the burrito gate has exploded and people have drawn lines across the conservative
00:00:43.300 commentariat? Are you pro-affordable burrito or are young people entitled? Of course, this is the
00:00:48.900 dumbest aspect of this debate. This is a far more serious and consequential discussion. And somebody 0.99
00:00:54.620 who has done a lot about this has even written a book about leaving a legacy that you should really
00:00:59.240 just throw at anybody who tells you about the affordability crisis. It's Johan Kurtz, and I
00:01:04.180 brought him on to discuss it today. Johan, thank you so much for coming on, man. Thanks, Aaron.
00:01:08.180 Thanks for having me.
00:01:09.740 So like I said, this has been an ongoing discussion for a long time, to be fair.
00:01:14.620 You have written on it.
00:01:15.800 I have written on it.
00:01:17.380 Several people have talked about the issue of affordability and why this is not some
00:01:21.820 left-wing talking point, why this is not some progressive talking point.
00:01:26.460 But on the right, there seems to be a cohort of people who are just dead set against understanding
00:01:32.180 this topic.
00:01:32.900 Now, when we originally were discussing this, it was about housing prominently. Other things, of course, health care, cost of child care, all these other things. But that was the more serious issue. Now, Andrew Colvitt of the TPUSA, you know, he said, oh, one of my guys, one of my staffers says a radio shouldn't cost $20.
00:01:51.540 Now, obviously, he was just making an offhand comment there.
00:01:54.580 That was not some serious policy discussion.
00:01:56.740 He was not really trying to win the debate with that.
00:01:58.740 He's simply saying, look, here's what young people are noticing around me.
00:02:01.800 And I think since I'm a guy who's plugged into what young people are struggling with, we should listen to this issue.
00:02:07.500 It was a good faith point.
00:02:09.160 And, of course, everybody ran with us and said, oh, spoiled kids with their burritos.
00:02:13.300 And suddenly we just had basically the millennials swap in the burrito for what the boomers used to say about millennials when it came to avocado toast.
00:02:20.920 that it's just about them spending too much money on fast food and if they would just you know go to
00:02:25.540 a cheap grocery store and cook their own meals then they too could have the american or in your
00:02:30.220 case english dream and therefore you don't need to worry about this this is a false crisis these 0.73
00:02:35.040 people are making up they're just just too entitled to be ridiculous but you wrote a piece
00:02:39.540 on this that i thought was very insightful it's echoed a lot of things that i've talked about but
00:02:44.420 put it down in a much more detailed and i think interesting way and what you talk about in that
00:02:48.960 article is that it's not just about the fiscal capital that young people are missing out on.
00:02:53.680 It's the social capital. And the fact that every dollar you spend or every dollar you make doesn't
00:02:59.500 have to just go to the usual things that a young person would invest in. It also has to pay for
00:03:04.980 all of this social capital that is broken down, that's no longer available to young men and young
00:03:10.160 women when they're starting a family. So I want to get to the social capital part. But before we do,
00:03:16.600 it's probably on us for at least five minutes to discuss the financial part, because this is so
00:03:22.000 often dismissed by, I think, a lot of the conservative commentariats. So can you just
00:03:28.780 lay out in raw terms, why the idea that the cost of living is just not a huge issue and is not
00:03:35.660 impacting family formation, why that might be false in some way?
00:03:40.320 Yes, well, it's sort of important to disaggregate the basket of figures that
00:03:46.180 get lumped in, which, taken in aggregate, paint a general picture that can be shown
00:03:51.460 to be rosier than I think the reality is.
00:03:54.780 So if you look at, for example, how the price of goods has changed over the past 20, 30
00:03:59.840 years, overall, real earnings are up for young people over the last few decades, which
00:04:08.180 would imply that they are richer in inflation-adjusted terms than the generations who came before
00:04:13.640 them.
00:04:13.900 So why complain?
00:04:16.180 The problem is that when you start looking inside the basket of goods over those decades,
00:04:21.220 which has been used to measure their purchasing power, and you start saying, well, how important
00:04:29.360 actually are each of these items to a really meaningful and profound life that everyone
00:04:34.640 truly wants and that really in a Christian society we should be aiming for everyone to
00:04:40.160 have access to, things which have become cheaper, screens, toys, in some cases, fast food, very
00:04:48.080 cheap food, travel, a fair number of kind of disposable or entertainment goods, software
00:04:55.920 has become cheaper, and the list goes on.
00:04:59.460 But then you say, okay, well, what are the things within that basket that has become
00:05:03.820 more expensive?
00:05:04.580 and suddenly you find it's rent it's the cost of child care it's the cost of education
00:05:12.440 health insurance and you know buying homes the the share of of millennials who own homes in
00:05:22.060 their 30s is significantly below that of generation x which is in turn below that of the boomers which
00:05:27.880 is in turn lower than that of the silent generation so the things which are really
00:05:33.220 important to the transition through a kind of really stable uh middle-class existence of the
00:05:40.340 kind that has always implicitly underpinned the american dream and i will say my mother's family
00:05:45.700 are all american so i have a bit of a dog in this fight uh english english though my accent is um
00:05:51.780 you know uh graduating from a good education getting a stable career finding a good spouse
00:06:00.020 buying a nice home and having children. Anchoring the debate on the price of a
00:06:06.100 burrito, it's an interesting flashpoint, but I do think that these deeper issues risk getting lost
00:06:12.660 in the discussion. Well, and I think the point is for them to get lost. I think that that's
00:06:19.020 intentional. I'm trying to remember, everything has a law attached to it, but there's some law
00:06:25.180 of statistics or engineering where whenever you choose a criteria to measure things by
00:06:31.900 it suddenly becomes a bad criteria because you change everything about what you're doing in
00:06:37.580 order to produce that one number that selected gauge by which you're looking at uh the metric
00:06:44.460 there and so what happens is when we want to make things look good we want to make the economy look
00:06:50.020 good we play this shell game with the statistics in order to emphasize the parts that's why the
00:06:56.380 biden administration and frankly the administration followed suit because they know it would be bad
00:07:01.480 for their numbers to to not continue it you know adjusted the way that we judge whether we're in a
00:07:05.900 recession uh so that we could afford we could avoid saying that we were in a recession by
00:07:11.320 adjusting how we count poor people how we count uh you know housing how we count these different
00:07:16.020 things we can bury the truth inside statistics i mean you look at the crime rate in the united
00:07:20.720 states and at some level it's gone down that's true but in other ways major cities just stopped
00:07:26.080 counting a lot of the crime so they could drive their statistics down is it really down or is it
00:07:31.280 just that they stopped counting it and so we can see you know obviously uh you know people on on
00:07:37.200 this channel might be familiar with thomas carlisle and his you know uh condition of england
00:07:42.060 question. He berated modernity for leaning hard into statistics, looking at earnings,
00:07:50.000 these kind of things, rather than actually being on the ground and looking what it's like to
00:07:54.420 actually live as a working Englishman. He said you couldn't have a grasp of the condition of
00:07:59.480 England through these raw numbers and statistics. You had to actually interact with the people.
00:08:04.460 And it seems like almost all of these arguments come down to people refusing to look at the actual
00:08:10.280 conditions of young people in america or in england and say ultimately well you know i have
00:08:15.800 the statistic i see that an aggregate these uh goods are cheaper therefore your life is cheaper
00:08:22.080 altogether but as you point out you know it is the things like health care is the things like
00:08:25.780 child care is the things like education and it's the things like housing uh fuel you know these
00:08:30.720 are the things that are everyday life that you really need don't get me wrong i like a cheaper
00:08:35.220 computer i like a cheaper television but that's not going to help you have children that's not
00:08:39.660 going to help you provide for a wife that's not going to help you build a family in a future
00:08:44.480 you're not going to you know bequeath to your children uh your you know a pile of cheap uh
00:08:50.240 flat screen television that that's not leaving a legacy there and so these are really terrible
00:08:55.920 markers for the underlying health of the entire project and this is something that i think is so
00:09:03.000 critical for conservatives to grasp because look even if you're you just for some reason don't care
00:09:08.720 about, you know, young men or, you know, young women or families or anything, if you're just a
00:09:13.460 pure Machiavellian caring about conservative politics, well, the people who vote conservative
00:09:18.260 are people who have families, who have something to protect, something to conserve. That's, you
00:09:23.840 know, you look at female voting and the magic wand is marriage. Single women and married women 1.00
00:09:29.580 vote radically different. That one, that one, you know, that one factor radically changes how they 1.00
00:09:37.440 behave and so this would be critical to that but for some reason there seems to be a perverse joy
00:09:43.280 in some of the kind of elder millennial gen x commentators in almost spitting on or mocking
00:09:50.700 young men for wanting to have a better life or saying hey we need help uh getting to where we
00:09:58.220 need to be we want to be fathers we want to be families family men it seems like these guys
00:10:02.960 take more joy in calling these guys incels than they do in reaching down and helping out the next
00:10:10.160 generation. And in many ways, a Gen X or millennial conservative commentator sounds exactly like a
00:10:18.580 feminist. Okay, you there incel guy in your mom's basement on the internet, why don't you get out 1.00
00:10:24.660 there and talk to a woman or something, be a man. Why do you think there is this obsession in this
00:10:31.140 almost intergenerational conflict why is it so important for a certain percentage of these guys
00:10:36.940 to crap on young men who are simply saying look you guys spent your you know built entire media
00:10:42.620 platforms on talking about woke and how unfair it was to men and all the you know different 0.98
00:10:47.400 opportunities that were robbed from especially young white men you built careers on this but
00:10:51.780 then when they say okay and now we need you to fix it it's time to mock us and you know throw us on
00:10:56.280 Well, you know, I don't necessarily know all the figures well enough to provide a psychological assessment, but one thing, you know, perhaps one dimension we could introduce to this that does add useful nuance is that even within 10 years, you know, some of these guys are a bit older, conditions on the ground have meaningfully changed.
00:11:18.300 and they've changed in ways which mean that it may have once been an option to buy less expensive
00:11:25.900 options and it no longer is for reasons relating to to put it generously to use the scientific term
00:11:33.120 social capital um you know as you unpack that you you quite quickly move into uh into into
00:11:39.180 territory you need to be a little bit careful about navigating but um but i mean maybe to give
00:11:44.560 one example. In London, where I'm from, the classic recommendation from middle-class parents
00:11:53.600 is you don't need an expensive home. You should just get a starter home in somewhere like
00:11:59.740 Kentish Town. Now, none of your American listeners will know where Kentish Town is, but
00:12:03.500 it's always been a kind of nice, but not particularly nice, accessible, affordable
00:12:13.060 um sort of first place to get a home leans young now if you walk down kentish town high street
00:12:21.000 it is full of unsavory characters uh doing uh substances that are not good for them and walking
00:12:29.460 around like zombies it is it is meaningfully different like you actually don't want to live
00:12:34.120 there and what is certain is that you don't want to raise young children there and leave your wife
00:12:38.760 walking them home late at night by herself. And that is, you know, perhaps it's unwise to use an
00:12:43.720 English example. There are many examples I could call on from the U.S., but that has kind of
00:12:48.960 happened across the board. Material conditions have changed, which means that it is no longer
00:12:55.080 often wise to opt for the public school. There is actually a good reason to choose the private
00:12:59.500 school. You know, if you go back 50 years and you look at the average public school, what you find
00:13:05.920 is that 85% of the families who attend that public school, it's a working class thing,
00:13:11.400 are intact families. There's a father and a mother in the home. They're raising them,
00:13:15.240 if not according to devout Christian principles, in an implicitly Christian context. And you can
00:13:21.240 have certain social expectations about what they will teach your children if you're over at their
00:13:25.540 house. Now that intact family rate has totally collapsed. And the only place where it can be
00:13:32.720 predicted and relied upon as a kind of norm, typically are in a harder to access spaces,
00:13:39.620 charter schools, public schools, classical Christian education, homeschooling, you have
00:13:44.320 to take more radical decisions. And really, in every facet of life, this thing where the easy,
00:13:50.960 cheap public option, it turns out that it's not intrinsic to that thing, that it is good.
00:13:57.440 Those things are good because they were embedded in a good culture, populated by good people.
00:14:02.720 who sort of shared a vision and understanding and moral sense of life that you shared and thus
00:14:09.620 you could you know you could slum it a little bit you could you know you don't have to be 0.55
00:14:13.560 precious you could do the you know more working class down with the mobile thing while you're in
00:14:17.140 your 20s and people did that and they're able to look back on it and romanticize it because
00:14:22.600 it's kind of like a nostalgic period of their life you know a bit like colleges for all of us
00:14:27.440 you know we kind of remember the funny sacrifices and the you know undignified conditions that we
00:14:32.160 lived in for a few years and it's a kind of like nice counterpoint to how far we've come
00:14:36.000 and now when we hear you know i suppose when these older figures hear young men being like
00:14:40.920 this is intolerable i can't live like this they think like well i live like it what's the problem
00:14:45.500 let's you know let's put them in their place but the the lived reality as you were saying kind of
00:14:50.880 good heart's law seeing like a state the lived reality is a lot of these places that were once
00:14:58.080 maintained by social capital, which maybe we can define later, have actually broken down
00:15:04.300 and are quite sketchy and are quite dangerous and are quite anti-family and really are not
00:15:10.220 places that you would want to build a meaningful life in.
00:15:16.380 It's the Family and Friends event at Shoppers Drug Mart. Get 20% off almost all regular
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00:15:32.960 Yeah, that's so critically important because, as you say, those examples exist in the UK, but they're also everywhere in the United States.
00:15:40.460 And this is one of the early videos I made on the show was actually the Ben Shapiro paradox, which was talking about how while Ben Shapiro will espouse all these family values, the importance of family, these kind of things.
00:15:55.000 everything about his economic formula is basically designed to destroy exactly that kind of life oh
00:16:02.380 well you should just pick up and go wherever a job is you should not worry about community
00:16:05.940 don't worry about family don't worry about the social capital that's been built by your family
00:16:10.300 for generations you know just uproot all of that and chase whatever economic opportunity exists
00:16:15.720 because that's that's what america is all about america is all about completely destroying your
00:16:20.620 community and running to whatever economic opportunity presents itself. And obviously in
00:16:26.760 America, the famous example is Detroit. You know, people say, well, you can go get a, you can get a
00:16:30.840 house for $50,000. Sure. And all you need is, you know, the machine gun perched on top of your
00:16:36.180 roof in order to make sure that your home is safe all the time. You know, this is a scenario where
00:16:41.520 I went to public school when I was a kid. It was important for my parents that my sister and I
00:16:47.000 kind of had that experience um and outside of one school in our entire time it was relatively safe
00:16:54.180 you know we were maybe when we were getting the top tier education but you know you weren't
00:16:58.440 worried about like literally not coming home that day i have taught public school you know in the
00:17:04.880 kind of the modern era and to your point i when i would make calls home the shocking thing would be
00:17:11.700 when the mother and father had the same last name that was the outlier by a large degree at least
00:17:17.560 80 percent of the kids were from single parent homes or divorced homes of some kind the idea
00:17:22.900 of an intact family was basically unicorn in that environment and everything you would expect flew
00:17:28.780 you know kind of flowed from that you know we had prison riot style fights in the school uh you know
00:17:34.560 i had parents you know when moms show up in stripper attire uh to parent night i mean it was
00:17:41.100 an absolute disaster. So sending your kid into that environment is just child abuse. I mean, 0.99
00:17:45.120 it's just not acceptable. And so I think that, you know, I am in this older millennial
00:17:52.140 generational divide. Yeah, I'm 42. So I have enough experience in what it was like before
00:17:59.800 to know what this transition is. I guess maybe because I was teaching or because I was just
00:18:04.840 maybe more aware. I know how much things have changed. But I'm not going to sit there and say
00:18:10.260 that because i had the opportunity to get into the housing market just a few years before it
00:18:15.300 exploded that i'm somehow a genius that i worked harder than everybody else and by the way my
00:18:20.640 boomer parents went out of their way to make sure that my sister and myself were able to get our
00:18:26.040 families into homes like they you know they forego luxury so not all boomers by the way you know
00:18:32.340 the good ones are out there the responsible ones are out there um you know but but i'm aware of
00:18:37.680 all of these advantages that i have had uh and so that doesn't mean that i am going to say don't
00:18:43.200 work hard that doesn't mean i'm not going to tell young men that they need to get themselves in
00:18:47.080 order and you know put their nose to the grindstone and make sacrifices but i'm also not going to
00:18:51.880 pretend like i suddenly just did all of this on my own and that everybody else can just do it too
00:18:57.940 if they were you know blessed to be born at just the right time to get into a housing market before
00:19:03.080 you know it blew up with the help of a family you know that that just it would be incredibly
00:19:08.400 selfish of me and arrogant to pretend that i had some kind of amazing skill in doing this
00:19:12.980 but another big part of this is i think what you're in the most important inside of your essay
00:19:17.660 was which was the social aspect the social capital involved because yes we can look at the financial
00:19:23.860 issues we can look at the numbers we can point out bad tracking of statistics all of those things
00:19:29.420 But what's really happened is the breakdown in all of those things that used to operate in the background that were built in to the social fabric, the idea that you had intact households that cared for each other, that cared for the neighborhood, that made places safe, that made places affordable, that allowed for child care and all these things that weren't a paid job, that kind of thing, that took a large amount of the burden off of young working families.
00:19:55.020 When you have to pay someone to watch your kid that almost equals the amount of the income of your wife, well, you're just lighting that money on fire.
00:20:03.780 When you have grandparents, uncles, aunts around to help out with that burden to make it possible for that child to not only be watched but also be cared for by actual direct family members who are invested in the welfare of the child, that's just a radically different way to grow up.
00:20:19.980 but it saves a pile of money for the family.
00:20:22.720 So can you just lay out what social capital is
00:20:26.280 and some of the key areas that you think we've lost it
00:20:28.860 when it comes to families?
00:20:30.940 Sure.
00:20:31.680 Well, how wealthy you are
00:20:33.480 and certainly how wealthy you feel
00:20:35.280 is more than simply how much money is in your bank
00:20:39.840 or how valuable the assets which you hold are.
00:20:43.060 Those are examples of financial capital,
00:20:45.020 but there are important other aspects of capital
00:20:49.000 which empower you, which allow you to achieve the life that many of us want to lead.
00:20:54.640 A commonly cited one is human capital.
00:20:57.200 So what do you know?
00:20:58.400 What skills do you have?
00:20:59.580 What education do you have?
00:21:01.300 Which field do you work in, et cetera?
00:21:04.200 Another one, for example, that multi-generational family advisors often speak to wealthy families
00:21:10.260 about is moral capital.
00:21:12.500 How serious is the faith of your children?
00:21:15.200 is it strong enough to withstand temptation in an increasingly materialistic society?
00:21:20.940 Social capital is the value, and it's very real.
00:21:25.040 In fact, it intensely affects your life in a lot of subtle ways.
00:21:28.780 The value that exists in relationships and in networks, in institutions, and so forth.
00:21:36.580 It's characteristic, for example, when someone describes a high-trust society,
00:21:40.520 which is a society that is easy to navigate, rapid to navigate, in which you incur low transaction
00:21:47.060 costs and don't have to call upon professional third parties for background checks and litigation
00:21:52.620 and security screening and everything else. That is an example of social capital where you have
00:21:59.500 mutual trust, you have a mutual set of obligations that is understood by everyone who everyone
00:22:04.360 engages in automatically. There are a million ways in which conditions of high social trust
00:22:12.840 make your life less expensive. And none of this shows up in the CPI, the consumer price index,
00:22:19.080 or things like that, because it's not about the discrete cost of an individual item. It's about
00:22:25.480 which items you have to buy and how many and when. So, for example, you might make the case,
00:22:32.660 as people do when they point to the house in detroit that you can still get cheap houses
00:22:36.580 but what is the context that that house is embedded within that kind of argument that
00:22:42.980 kind of setup really extends to every aspect of modern life to give a simple one dating if you
00:22:48.820 come from the same social circle in which you come to that first date with a young lady or man who
00:22:53.700 you haven't met but who you have a lot of mutual friends with and maybe they're part of the same
00:22:58.020 church or some other kind of trusted organization, you come with a recommendation, they will already
00:23:03.980 know a lot about you. They'll know your background. They know why they've been set up with you. They
00:23:07.600 know your prospects and what you're doing. And they know what community you're a part of. And
00:23:11.560 they'll have a realistic sense, especially once they've spoken to you, engaged your intelligence
00:23:15.400 and your wit and so forth, of your prospects in life. They will feel like, okay, I know what's
00:23:21.180 going on. Is this person right for me or not? If you come with zero context, suddenly you have to
00:23:27.420 establish a lot of that background in an anonymous context on the first date and you move into a far 0.50
00:23:33.820 more kind of uh dating environment that is characteristic of the third world with expensive
00:23:38.700 signaling and ostentatious gifts and there was a very viral thread uh last week about an expectation
00:23:45.020 that women in new york have now which is that a car will be sent for them to pick them up
00:23:49.260 which is a very crass kind of like artificial bar that is being introduced to test the sort
00:23:54.780 sort of financial prospects of the man they're meeting this is very much characteristic of low
00:23:59.080 trust societies with weak social capital the same is true of marriage you know whether you exist as
00:24:04.420 part of a thick network which has a beautiful church uh that sort of ties into your your own
00:24:09.300 sense of religion or whether you have to go private for a venue the same is true of child
00:24:13.820 care once you have them i do have a great relationship with your neighbor do you trust
00:24:19.660 the way that they're raising their family do they go to the same church are they on the same school
00:24:23.680 board and therefore when it's time to call a babysitter do you trust their teenage daughter
00:24:28.560 or do you call a professional service and pay a far higher rate to a third party professional
00:24:33.600 who you'll never interact with again? This character of transaction and cost and decision
00:24:41.200 tree attaches to every aspect of life. Social capital is every bit as important as financial
00:24:46.960 capital and that kind of seeing like a state 30,000 foot view where you quantify everything
00:24:52.880 and you host these very abstract arguments which are exclusively framed in terms of a narrow set
00:24:59.200 of poorly understood reductive metrics it misses all of that context which is why the lived reality
00:25:04.720 on the ground can differ so radically from the kind of theoretical arguments that people make
00:25:09.920 online it's the family and friends event at shoppers drug mart get 20 off almost all regular
00:25:17.040 priced merchandise two days only tuesday september 1st and wednesday september 2nd
00:25:22.240 open your pc optimal map to get your coupon
00:25:28.960 yeah that is something that i think a lot of people just don't factor in when things have
00:25:33.840 broken down families are so uh no longer intact there are so many temptations and options for
00:25:39.920 people to go the other way you have just like these basic things that you can't do anymore
00:25:45.360 or without having a high degree of skepticism, for instance, just a basic, hey, go ahead and send your son over to someone's house to have a sleepover.
00:25:56.500 That used to be a very normal, common, healthy thing for you to do.
00:26:01.140 Now you have to ask, well, what are the values of that family?
00:26:05.080 What is my son going to be exposed to when they go over to this person's house?
00:26:10.820 You know, if they have unrestricted access to the Internet, in three clicks, this person could completely destroy everything you've tried to do to kind of protect from what's going on in the world or, you know, all the things that are available there.
00:26:24.000 And unless you're like super very aware of what that parent believes and what they allow with their child and everything, you don't just have this baseline of trust.
00:26:33.840 And the problem then becomes, well, then you can't send your child over to those people's houses.
00:26:39.300 So the safest way for them to interact is through screens, right? It's online where you think you can somehow curate it. And that has two more problems because obviously you're not actually curating it. You don't have the level of online control you think you do. But on top of that, you're also training that child to basically not build those social skills, not interact, not have a richer, deeper life that comes with true friendships and real human interactions.
00:27:03.780 And so there are just these minor things, you know, just sending a kid over to a sleepover without thinking, you assume that that is just such a minor aspect of life, but it suddenly becomes a huge issue.
00:27:15.220 And as you say, this kind of just radiates out through all of these aspects of, you know, can I just easily send my kid to a public school? Can I easily send my kid to a church? Do I have to worry about every single interaction they have?
00:27:27.420 god forbid when they get to dating that kind of thing or am i going to be able to find a compatible
00:27:31.780 person for them with a family that you know can respect those issues it's just a cornucopia of
00:27:36.740 things that you always had to be careful about at some level but you could take most of it for
00:27:42.160 granted and now it's every single interaction and i think these things really you know the issues of
00:27:48.220 the of the social uh decomposition when it comes to this uh uh this uh you know uh capital stock
00:27:56.100 ultimately boils down to three things that really have broken down entirely one is obviously as you
00:28:02.260 pointed out repeatedly the church the church used to be like just the absolute center of social life
00:28:07.940 it's where you've met spouses it's where you met friends it's where you got married it's where you
00:28:13.580 got buried it was woven through the life of everything it's where you found business partners
00:28:18.080 where you found employees where young men could find mentorships where young women could find
00:28:23.480 the kind of people that they should ultimately be modeling their lives after. In every one of
00:28:28.660 these scenarios, the church was the center of this. And so without this automatic kind of just assumed
00:28:34.220 political and cultural and social and spiritual center of the community, all of these functions
00:28:41.100 get kind of sent out into the market in some other way. And the market does them much less
00:28:46.660 in a more inhuman fashion than the church would have done. I think the other two aspects that
00:28:53.160 we really have to talk about are especially in america the civil rights act the fact that people
00:28:59.020 are simply not allowed to voluntarily associate with people that they feel are more like them and
00:29:05.080 are more likely to maintain their culture and project project their values and so therefore
00:29:09.780 you can't build those societies it's literally illegal to only live around people who you feel
00:29:15.280 actually hold that same culture and that same expectation and then finally it's the destruction
00:29:20.880 of the idea of the mother that the you know so much of the social capital that you're talking
00:29:26.500 about was sustained by the fact that women were at home that they were building you know that that
00:29:32.200 that the un unquantifiable social capital they were building as mothers was far more valuable 1.00
00:29:39.820 than sending them into the workforce to earn you know something that increased gdp the mother is
00:29:45.980 the person who is selecting for education the person mother is the person who's providing
00:29:49.740 child care the mother is the person who's building community putting together those those social
00:29:54.340 functions those church functions you know they're they're providing a safe network for children to
00:29:58.960 be watched inside the community so they can roam outside without fear these are all things that
00:30:03.200 don't show up at a balance sheet but by breaking them out of the role of the mother we create again
00:30:08.040 all of those things that have to be moved into the market they become more expensive and every
00:30:12.240 single one of those things becomes a tax on a young family trying to get started i mean that's
00:30:18.440 exactly right. Yeah. I mean, the place that I recommend people start with on this topic,
00:30:24.220 if they're interested in a comprehensive, if slightly liberal coded breakdown of the factors
00:30:30.520 in systematic fashion is Bowling Alone by Robert Putnam, who's kind of the quintessential scholar
00:30:37.220 on this issue of social engagement broadly defined in America's life. And the revelation
00:30:45.800 which begins that book is, if you go back to 1950, you find a level of social engagement
00:30:51.640 amongst local groups, which is unthinkable. It's another world. It is just a completely
00:30:59.260 different reality that people are living in. They are going out several times a week with
00:31:04.440 big groups of people who they have deep relationships with that transcend context from the workplace
00:31:09.920 to the church, to the social league, to the hall, to union membership, and they are really
00:31:16.320 part of something.
00:31:17.480 I mean, they're really part of living local networks that define everything they do and
00:31:22.840 that provide all of these incredibly strong externalities.
00:31:27.160 And the question is, why has this collapsed?
00:31:29.080 And the answer is complex.
00:31:30.340 It's a bit like asking, why has the church, the Christian church, in its various forms
00:31:34.860 and denominations, collapsed over the last 70 years?
00:31:38.100 Very complex.
00:31:38.780 But the kind of common factor is kind of churn.
00:31:45.480 It's just drift and change and mobility, including in ways that, you know, change is inevitable.
00:31:53.760 Evolution is inevitable.
00:31:56.300 There's no stopping history.
00:31:57.700 But some things are just so destructive and ill-thought-out and were ushered in with huge degrees of triumphalism that, looking back, it's kind of unthinkable and devastating the level of destruction that was wrought on these essential social institutions.
00:32:16.520 I mean, yes, to take your points, women entering the workforce, it's funny.
00:32:24.000 So Putnam looks at this specifically, and interestingly, what he finds is that the families who have the highest level of social engagement,
00:32:36.040 measured by volunteering and entertaining and organizational membership and so forth,
00:32:41.360 are families in which the mother voluntarily works part-time. In other words, these are families
00:32:49.460 which are characterized by kind of agentic women who want to get involved. Their family setup is 0.99
00:32:55.920 such that they don't have overbearing financial pressures on them that forces them to work full
00:33:00.260 time. And so they're involved. They're kind of in the house, they're out of the house, they have
00:33:03.940 time for their kids, but maybe, you know, they are professionally involved on the side.
00:33:08.980 Conversely, the women who are catastrophically, the families, not just the women, because this
00:33:14.720 extends to the entire family, it doesn't characterize the woman alone, it also characterizes
00:33:18.340 her husband and children. The families who have catastrophically low levels of social engagement,
00:33:23.860 for example, which cut volunteering by more than 50%, are those in which the woman, 0.94
00:33:29.940 not through choice works full-time. It is no longer an option in the vast majority of the
00:33:36.240 Western world to have a two-income household if you want to have a nice house. You can pursue
00:33:43.960 other routes, but it's a real sacrifice and it requires strong, unusual people making radical
00:33:50.000 decisions. And I encourage that, by the way. We're a single-income household. There's been
00:33:55.340 real hardship associated with that, I still think it's worth it. But again, if you're asking how a
00:34:01.140 population should be governed, you can't just say, do the radical thing, live like an outlier. You
00:34:06.260 actually have a responsibility to think about the moral, physical and spiritual health of the
00:34:10.840 population at large. And what we have done intentionally and unintentionally is impose
00:34:16.360 conditions on the vast majority of the population, which pushes all households into the position in 0.68
00:34:22.940 terms of the gender arrangements, the sexual arrangements of lowest social engagement, which
00:34:28.360 is the kind of two-income trap. Elizabeth Warren, of all people, summed us up brilliantly, which is 0.91
00:34:33.360 that once enough people have entered the workforce, once enough women have entered the workforce, 0.92
00:34:37.440 their excess labor moves from being impossible to quantify because it exists as social capital,
00:34:43.740 which is not taxed, which is extremely productive, which has all kinds of
00:34:47.840 positive externalities. It moves into being financial capital, which is taxed, which has
00:34:53.280 a narrow range of applications. And that extra income then becomes financialized back into
00:34:59.580 housing prices, which sort of suck it up. At that point, it becomes mandatory if you want to live in
00:35:04.520 most nice neighborhoods in the United States to have two incomes. That is very much the norm.
00:35:10.980 And families kind of have to figure that out one way or another. And so that suppresses family
00:35:16.100 formation, it suppresses social engagement across the board. Immigration is another one that we 0.99
00:35:21.860 could talk about, and diversity. Putnam, as I mentioned, has fairly evident liberal dispositions.
00:35:31.220 It's kind of funny because in the book, in Bowling Alone, for example, he lays out these incredibly
00:35:36.020 impressive and methodical examinations of the issues, and he'll conclude them by being like,
00:35:41.140 after examining a ton of evidence that this has been bad, socially speaking, he'll be like,
00:35:45.460 Of course, it was a good thing that we're into the workforce en masse.
00:35:49.080 Anyway, on to the next thing.
00:35:50.800 It reminds me a lot of Jonathan Haidt.
00:35:53.100 I don't know if you've ever read The Righteous Mind,
00:35:54.740 but he spends 95% of the book explaining how moral tastes
00:35:58.980 are entirely without choice, and it's a dispositional thing.
00:36:03.480 There's no debating, and there's no understanding
00:36:06.020 it through the marketplace of ideas.
00:36:08.000 And then at the last 5% of the book, he's like,
00:36:10.200 well, we have to be good liberals anyway.
00:36:11.840 And so even though I've just made the entire argument
00:36:14.240 against this position uh at the end of the day with this is the only way we can exist and so we
00:36:18.900 have to do that and funny enough i i could be wrong in this but i believe putnam actually
00:36:23.460 suppressed a number of his findings for years especially on women uh working because he knew
00:36:30.060 how controversial and like how heterodox this would be how he would be seen as a heretic of
00:36:35.660 a liberal by acknowledging this so it is funny that this guy just can't stop running headlong
00:36:42.660 into the truth despite like his hardest efforts to try to ignore or as you say at least say well
00:36:48.240 but ultimately it's probably good we we have to pretend it was good even though all of my data
00:36:52.600 and all my conclusions are showing it's a disaster yeah i i have mixed feelings about putnam because
00:36:58.400 he he clearly doesn't want to be finding out the things he's finding but he does do a fantastic job
00:37:03.840 of discovering them and reporting them you know in a in a what at least appears to be a fairly
00:37:09.040 unbiased way. If he was conservative, it's kind of interesting to think about how much
00:37:14.340 more radical the framing and discoveries would be. But the one that, to my knowledge, I've
00:37:20.380 heard he suppressed for a long time, I think that is the accepted position, are his findings
00:37:26.280 on diversity, which he wrote up in a later paper after Bowling Alone, a much more contemporary
00:37:32.380 paper called E Pluribus Unum. And what he found there is that diversity, unfortunately,
00:37:41.820 has a highly suppressive effect on social trust and people's willingness to engage in
00:37:48.240 out-of-the-home activities across the board. And people basically just end up watching
00:37:53.240 far more television. This isn't even like a kind of... So the theories which preceded
00:38:00.740 Putnam's findings, but they didn't have access to the scale and quality of data that he ended
00:38:05.860 up acquiring for the purposes of this study, whether either it was going to be true that
00:38:10.560 diverse settings would engender conflict because two groups would come into contact and discover
00:38:17.560 they were nothing like each other and retreat into their ethnic identities and sort of solidify,
00:38:21.720 you know, I'm white or black or whatever, or that it would actually be a good thing.
00:38:26.920 They come into contact, discover that they had a ton in common, that they were all human,
00:38:30.100 and that, you know, there were good people on either side and tensions would be relaxed.
00:38:34.740 Turns out neither of those things actually characterize what happens.
00:38:37.860 Not only do people retreat from contact with the other, with people from other ethnic backgrounds,
00:38:45.020 they retreat from contact with their own.
00:38:49.020 And this is likely a reflection, and here I'm editorializing slightly,
00:38:54.420 but this is likely a reflection of the fact that social capital should always be understood as a
00:39:04.340 complex system. In other words, it has emergent effects which are difficult to predict and it can
00:39:10.580 have runaway exponential effects if you change only a few of the underlying factors. Essentially,
00:39:17.780 the more full and bursting the church is with young families, the more I want to take my 1.00
00:39:24.340 own family there because it's going to be a more relaxing experience and i'm going to have more
00:39:28.100 friends there the same is kind of true for everything every family lost from participation
00:39:35.220 every person every upstanding individual lost from participation in a social network
00:39:40.340 makes the network less attractive for the next person to come along and very quickly if you
00:39:46.020 undermine the integrity of social networks you get these runaway effects where actually no one's
00:39:52.980 incentivized to participate at all. And this is worst of all in conditions of rapid change.
00:39:59.220 If you look at white flight, for example, out of a city like Chicago or Detroit in the American 0.96
00:40:05.300 mid-century, you don't need to sort of moralize about the situation to observe that it clearly had 0.97
00:40:12.980 massively deleterious effects on both social and financial capital. A lot of those families
00:40:18.100 were making decisions to leave behind homes whose houses were plummeting in value
00:40:22.580 to move to expensive new suburbs that were less convenient than the kind of walkable neighborhoods
00:40:29.300 that they had known for so long, and often the kind of thick ethnic enclaves that they were a
00:40:34.420 part of if they were German or Scandinavian or Irish, et cetera. So they were leaving behind a
00:40:40.900 lot. It's a really tough issue. It's not something where you can just look at it and take moral
00:40:47.460 stock of it and say ah this is a good thing or this is a bad thing these are complex interactions
00:40:53.940 of really often subconscious difficult to identify phenomena that have massive effects on the quality
00:41:01.620 and trajectory of people's lives down the line so that's it's just not easy to dismiss them
00:41:06.660 yeah and especially when it it comes to the fact that we're not supposed to discuss any of this
00:41:11.300 it's incredibly taboo and so everyone kind of has that you know in the back of their mind
00:41:16.660 but they're not allowed to explore that in any way.
00:41:20.320 And that's intentional to make sure that you never actually come to logical conclusions about this.
00:41:25.020 But, for instance, I've had discussions with women down in Florida.
00:41:29.700 And there's not a lot of – most of the people here are older, but especially the white people are older.
00:41:37.260 And most of those people having children are young, Hispanic, or other immigrant communities.
00:41:42.800 And so I talked to one woman who she went up to Tennessee and she said, oh, this is so different. Like white women actually have children here. Like the culture is radically different down in Florida. Most white women do not have families or do not have more than one child in Tennessee.
00:42:01.900 It's very common to see a white family with four or five children, young children, young families.
00:42:10.300 That is just a thing that you, again, aren't really supposed to say out loud, but does radically change your outlook. 0.56
00:42:17.700 All of a sudden, everybody in your friend group has children.
00:42:20.620 All of a sudden, it's normal to be the person who shows up to a social event with children.
00:42:24.900 Their children have other children to play with.
00:42:26.900 If you're someone who doesn't have a child, all of a sudden you're the one who's the outlier and you're the one receiving social signals and pressure saying maybe this is something you should be involved in and maybe this is something a person of your age should do.
00:42:39.840 And so just that shift in and of itself, nothing said out loud, nothing explicit, no government program, but just a simple observation that when you are around other people like you, having young children, engaging in those scenarios, well, then you are encouraged to do that in a way that you just aren't when you're outside of it.
00:42:59.980 And there's just nothing evident that you would put out there that you would list on any kind of application about what's going on here.
00:43:07.600 But it is something that is going to be real.
00:43:10.680 And if we don't address it, if we're too scared to acknowledge this factor, then we're going to keep getting exactly the same results.
00:43:17.320 So no matter how many times people call you funny names for pointing this out, you have to engage with it.
00:43:22.720 That said, I know that we have limited time today, Johan.
00:43:25.800 So I just want to ask you an important question before we leave here.
00:43:29.980 Uh, obviously we know the government is not going to fix any of this, right? Like they're going to
00:43:35.200 keep printing money into the ground. Uh, the, the, the current political class is going to continue
00:43:40.180 to kind of just burn the candle at both ends. Uh, there isn't going to be some radical change.
00:43:46.480 I think, unfortunately in society, uh, when it comes to the structure, uh, we can all say
00:43:52.360 individually, okay, we need to do better. We need to make sacrifices. We need to go through this,
00:43:56.600 But what are some concrete steps that young people should be taking to put themselves in a better position to build social capital?
00:44:05.940 I mean, we we don't want to be the boomers, right?
00:44:08.080 We don't want to be the people who say we're going to push this off to the next generation.
00:44:11.900 We're going to get what we can out of this.
00:44:13.860 You know, if we don't plant these trees now, no one will sit under their shade later.
00:44:17.480 So what should we be doing personally if we can't expect the government to come in and fix this for us?
00:44:22.860 It's the family and friends event at Shoppers Drug Mart.
00:44:27.200 Get 20% off almost all regular-priced merchandise, two days only, Tuesday, September 1st and
00:44:32.940 Wednesday, September 2nd.
00:44:34.740 Open your PC Optimum app to get your coupon.
00:44:37.560 Well, it's tough fixing at a national level, and you can address some of the things we've
00:44:44.860 spoken about so far, but in terms of an individual, I think there is a silver lining here, which
00:44:50.900 is that the crux of the discussion we've been having so far is actually there are really
00:44:56.500 important sources of wealth and value that a lot of people miss out on they can't recognize them
00:45:01.540 and thus their reasoning is confused but if you can see them suddenly you realize a lot of value
00:45:08.740 is kind of left on the table and waiting for you to grab it so there are situations in which you
00:45:14.420 may be discouraged from moving to a community which uh has you know maybe maybe you'd have to
00:45:22.420 take a salary cut to move there but actually if you were able to recognize and participate in
00:45:28.580 and take advantage of social capital the the lived reality of your life would uh increase substantially
00:45:36.100 one concrete example for a lot of people is they assume the default that if uh as all families now
00:45:42.900 do, it has to be rational for the woman to work. In fact, if you have children and you run a
00:45:48.460 sophisticated analysis, after taxes, after additional childcare costs, and after some 1.00
00:45:53.780 of the things that accrue, a woman has to be earning a really good salary before it makes
00:45:58.740 financial success for her to work a full-time job and employ childcare to cover one or more children. 1.00
00:46:04.080 Um, so I'd say, you know, basically find, um, neighborhoods with other people like you
00:46:13.120 broadly defined, you know, that includes, uh, faith that includes every aspect of the
00:46:20.020 vision of the life that you want and recognize that there is, uh, you know, there's wealth
00:46:26.660 in and of that in itself, and that, frankly, you will have to likely make sacrifices because
00:46:35.040 moving from the very convenient world of financial capital, where wherever you need food, you
00:46:41.300 door dash it, whenever you need a nanny, you call the agency, whatever, to one in which
00:46:45.140 you engage in this economy of favors and mutual support, it often is quite frustrating having
00:46:52.680 to engage at that level of thickness in your relationships and make yourself available
00:46:58.460 and foster obligations and so forth.
00:47:02.680 But in conditions of degraded social capital, the opposite of the runway effect we were
00:47:09.120 discussing before can take place.
00:47:11.140 It can have exponential returns because your introduction into that thick social capital
00:47:16.180 and the sacrifices you're willing to make makes that network more attractive for everyone
00:47:21.820 who comes after you and you can be part of rebuilding that social fabric. It's important
00:47:27.800 not to be a martyr and to try and do that in a place where it's just never going to work
00:47:31.800 because you will live a thankful life generating positive externalities for people who don't
00:47:37.320 recognize them, don't want them, don't value them, and never thank you. But embedded in the
00:47:41.640 right context of a really good community of people, social capital presents a really great
00:47:49.060 opportunity for people to enrich themselves and build a better life than is commonly recognized
00:47:56.020 absolutely well man it's been great speaking with you uh guys we're not live today this is
00:48:00.020 pre-recorded so we can't take your questions today sorry about that but johan uh where would
00:48:05.220 people find your work tell them about your book everything you're doing great yeah well i have a
00:48:09.700 book i've actually got i don't this isn't a setup i'm not i don't have marketing copies right here
00:48:14.420 but i do have a copy right here so i'm gonna put it on the screen uh leaving a legacy uh inheritance
00:48:19.380 charity in thousand-year families which is a good gentle gift for family members who are deciding
00:48:24.820 what to do with their estates uh it's not it's not too pushy but it's a good introduction to
00:48:30.180 the way that we think about things uh yeah and you can find it leaving a legacy on amazon or my blog
00:48:35.700 becoming noble on subsec all right guys make sure that you are following johan and reading his work
00:48:41.780 and of course it's your first time on this channel you need to subscribe click the bell
00:48:45.380 notifications all that stuff so you know when we go live if you want to get these broadcasts
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00:48:53.780 and when you do leave a rating or review it really helps with the algorithm magic thank
00:48:57.720 you everybody for watching and as always i will talk to you next time