Valuetainment - Universal Basic Income Explained by Patrick Bet-David

00:00:00.000 30 seconds. One time for the underdog. Technician sequence start. Let me see you put them up. Reach the sky, touch the stars up above. Cause it's one time for the underdog. One time for the underdog.

00:00:17.380 I'm Patrick B.W. Host of Value Tim and today we're going to talk about the one topic that keeps coming up in the democratic debates that's taking place and that's universal basic income.

00:00:25.640 An idea that was brought up by Andrew Yank. Is it a good idea? Is it a bad idea? Can we afford it? We're going to look into it in today's episode.

00:00:32.180 Jobs being replaced by AI. Even Kai-Fu Lee, who's an expert. AI expert. He's a Taiwanese venture capitalist. He's got his PhD from Carnegie Mellon.

00:00:41.140 Lots of respect. He said in a recent interview with 60 Minutes, 40% of all jobs could be replaced. 40%. That's a lot. That's 4 out of 10 jobs.

00:00:51.320 2 out of 5 jobs could be replaced is what he's saying. So, Pat, what do you mean? What kind of jobs can be replaced?

00:00:55.920 Well, you're seeing videos with all these robots. So, they're saying drivers are going to be replaced by self-driving cars.

00:01:01.540 Financial analysts. Computers are going to do all the animals. Why do we need a person doing that?

00:01:06.180 Transportation. Food preparation. Telemarketers. Construction. Farming. Fishing. Packaging.

00:01:11.840 You're seeing robots doing backflips. You're seeing a robot, Will Smith, trying to kiss a robot.

00:01:16.680 You're seeing so many different things with robots. People are saying,

00:01:19.340 What if this actually becomes a reality? And are we there yet?

00:01:22.400 So, one of the presidential candidates, Andrew Yang, came up with this idea saying,

00:01:25.860 Look, I think I'm not the only person that believes AI is an issue.

00:01:29.100 And we need to start giving income to people because people are going to be unemployed.

00:01:32.060 And he talked about this universal basic income of $1,000 a month to any citizen above the age of 18,

00:01:39.520 which is $12,000 per year. That's what he proposed.

00:01:43.620 And he says, I'm not the only one that came up with this.

00:01:46.060 Nixon wanted to do something like this. Milton Friedman proposed something like this,

00:01:49.620 called the negative income tax, which we'll talk about in today's video.

00:01:52.980 But there's a lot of other people doing it.

00:01:54.720 So, American people said, If a lot of other people are doing it, how about we should do it?

00:01:58.360 Why not $1,000 a month to every American citizen?

00:02:01.380 This is not a bad idea, but let's look at it a little more.

00:02:03.760 Let's peel the onion a little bit, and let's see if this could actually work or not.

00:02:08.300 So, Finland actually had a pilot for the UBI.

00:02:11.660 And they took 2,000 unemployed people, and they said,

00:02:14.900 Look, we're going to give you €560 per month to see how this works.

00:02:19.260 They tested the pilot very quickly.

00:02:21.780 They stopped the pilot, saying the results that they wanted, they weren't getting.

00:02:25.100 Now, another example people talk about is Alaska.

00:02:28.100 If you live in Alaska, I've had many friends that have lived in Alaska,

00:02:30.780 because army bases are in Alaska.

00:02:33.260 One was Fort Wainwright, and when you live in Alaska,

00:02:36.140 Alaska has this program called Alaska Oil Royalty.

00:02:40.240 They give you money every year.

00:02:42.200 If you're a citizen, they're living there.

00:02:43.520 It depends on how oil prices are doing.

00:02:45.720 You'll get a check.

00:02:46.520 For example, in 2015, they gave $2,072 per adult every year.

00:02:54.200 That year, they gave $2,072 per adult that was a citizen of Alaska.

00:02:58.480 They sent a check.

00:02:59.200 And if you were a family of four, they gave a max of $8,288.

00:03:03.460 Now, this amount is linked to oil and how it does.

00:03:07.800 So if oil prices went down, for instance, in 2017,

00:03:10.880 it was only $1,100 a person, right?

00:03:13.680 And it went even lower because gas prices went even lower.

00:03:16.340 I think it went to $800, $900.

00:03:17.760 And that's what Alaska does. 1.00

00:03:19.000 So he'll use the example and say,

00:03:20.600 You know, some of these other guys do,

00:03:21.760 but Alaska does this because, 0.95

00:03:24.040 Have you thought about moving to Alaska lately?

00:03:26.180 Like, do you wake up in the morning saying,

00:03:28.300 No, I'd love to go live in Alaska.

00:03:29.460 By the way, I've been to Alaska.

00:03:30.840 I took my kids.

00:03:31.840 We had a phenomenal time.

00:03:33.140 Living there?

00:03:33.980 Not a lot of people want to move to Alaska.

00:03:35.480 Most people like to move to Miami, California,

00:03:38.180 you know, maybe New York, maybe Chicago,

00:03:39.840 maybe different places.

00:03:40.740 No one wakes up in the morning saying,

00:03:42.120 Why would I want to go to Alaska?

00:03:43.200 So Alaska is using their natural resource

00:03:45.700 to bring more people who are willing to live there.

00:03:48.120 This is one of the motivations, right?

00:03:49.520 If you are living in a place where a lot of people don't want to go there,

00:03:52.100 this may be a good motive.

00:03:53.080 Does America have a problem with a lot of people wanting to come to America?

00:03:56.620 I don't know about that.

00:03:57.680 Why would they offer UBI?

00:03:58.980 We don't have a problem with people wanting to come here,

00:04:01.140 especially immigrants.

00:04:02.080 So another one is Dubai.

00:04:03.020 You know, when I was in Dubai,

00:04:03.860 I started talking to a lot of the business owners.

00:04:05.580 I said, How much taxes do you guys pay every year?

00:04:07.180 And they said,

00:04:07.560 Pat, we don't pay income taxes.

00:04:09.560 I said, You don't pay income taxes.

00:04:11.200 America's revenues that comes in,

00:04:12.840 half of it is from taxpayer income tax.

00:04:15.200 No, we don't pay income taxes.

00:04:16.420 So what kind of taxes do you pay?

00:04:17.780 We pay something called VAT.

00:04:19.060 What does VAT stand for?

00:04:20.640 Value-added tax.

00:04:21.920 So Dubai is another example where, you know,

00:04:23.720 somebody could go there and say,

00:04:24.740 Look, I can start a business.

00:04:26.400 I'm not paying any income tax.

00:04:27.760 I'll pay the VAT tax.

00:04:29.240 That's fine for me.

00:04:30.080 But you mean to tell me I get to keep the rest of it?

00:04:31.760 Yes.

00:04:32.420 So why did they do that?

00:04:33.880 Again, this is another method to get people to want to move

00:04:36.940 to a place like Dubai and create a business.

00:04:39.280 And it's worked for them.

00:04:40.480 But that's if they need people to go there,

00:04:42.400 which at one point Dubai did.

00:04:43.760 If you go look at Dubai in the 80s,

00:04:45.460 there is nothing.

00:04:46.140 It's the desert versus what it is today.

00:04:47.840 This was a way of getting people to want to move there.

00:04:50.260 A lot of people have done this over the years with taxes.

00:04:52.740 So now, that's universal basic income.

00:04:55.200 Is it a good idea?

00:04:56.140 Sounds ideal.

00:04:57.400 But why does he compare it to negative income tax?

00:05:00.900 Let's talk about the difference between UBI and negative income tax.

00:05:04.340 So here's UBI.

00:05:05.760 His proposal is $12,000 per year.

00:05:07.820 It is estimated that's going to cost taxpayers $3 trillion per year.

00:05:13.300 That's $30 trillion in the next decade.

00:05:17.580 That's, again, $30 trillion the next decade.

00:05:20.760 Sounds like a great idea, but it's $30 trillion the next decade.

00:05:24.820 And he says, well, it's very similar to negative income tax

00:05:27.280 because negative income tax, Milton Friedman came up with it.

00:05:30.060 So some of you guys may be asking,

00:05:31.240 I've heard about negative income tax,

00:05:32.840 but I don't really know how it works.

00:05:34.440 How does it work?

00:05:35.040 So here's how it works.

00:05:36.260 Let's just say the living wage in America is $30,000.

00:05:40.120 We're just picking this number here, right?

00:05:41.540 It's $30,000 for you to be able to survive as an individual.

00:05:45.540 You've got to make $30,000.

00:05:46.760 Let's say we come up with that number, it's $30,000.

00:05:48.560 But you don't make $30,000 in a year.

00:05:50.300 You only make $20,000 the next year.

00:05:52.960 So you were under living wage by how much?

00:05:55.760 $10,000.

00:05:57.460 So Milton Friedman's idea is,

00:05:59.700 say 50% of that is negative income tax.

00:06:02.940 We'll pay you half of that back to you.

00:06:04.900 50% of $10,000 is what?

00:06:06.820 $5,000.

00:06:07.600 So you don't get back to $30,000,

00:06:09.440 but at least we got you back to $25,000.

00:06:12.360 That's negative income tax.

00:06:13.880 But the biggest difference here is the following.

00:06:17.320 Andrew Yang wants to do universal basic income,

00:06:20.500 this $3 trillion cost per year,

00:06:22.680 on top of all the other entitlement programs.

00:06:25.380 So he doesn't want to stop

00:06:27.020 the current entitlement programs that we have.

00:06:29.280 When I show you how much it is,

00:06:30.780 you're going to say,

00:06:31.320 are you kidding me?

00:06:32.420 Versus Milton Friedman says,

00:06:34.060 I'm open to the idea of negative income tax,

00:06:37.160 but we get rid of all the other entitlement programs

00:06:39.580 because it's a lot easier for IRS

00:06:41.260 to just cut you a check

00:06:42.280 versus we have this department,

00:06:43.800 with this department,

00:06:44.440 this department,

00:06:45.060 Section 8,

00:06:45.800 all these other employees we have to hire.

00:06:47.120 Not very easy.

00:06:47.980 Negative income tax,

00:06:48.780 you make $20,000,

00:06:49.800 here's a $5,000 check.

00:06:51.160 So you decide what you want to do with this money.

00:06:53.000 And obviously I'm just giving you the math.

00:06:54.400 The math could be figured in many different ways,

00:06:56.340 but that's what Milton Friedman said.

00:06:57.640 They said,

00:06:57.940 this is actually not a bad idea.

00:06:59.560 So as you watch this,

00:07:00.520 you say,

00:07:00.780 what's the pros,

00:07:01.340 what's the cons?

00:07:01.940 Here's what you hear.

00:07:02.540 Andrew Yang says the pros of his plan is,

00:07:05.440 if we give people $12,000 a year,

00:07:07.980 it'll allow people to take their time getting a job

00:07:11.560 to at least get a better job.

00:07:13.240 So you know what?

00:07:14.080 I was thinking about taking this job here,

00:07:16.300 but I'm going to wait three more months

00:07:17.580 for a better job

00:07:18.180 because I'm still getting $1,000 every single month.

00:07:20.640 I'll wait three more months

00:07:21.700 to see if somebody on Mossner gets back to me.

00:07:24.560 He says that is a pro.

00:07:26.420 You know,

00:07:26.660 another one is option to go to school

00:07:28.160 or stay home and raise the kids.

00:07:29.600 You know,

00:07:29.840 I don't really need to go to school.

00:07:31.240 I don't really need to get a job.

00:07:32.540 I'm just going to stay home

00:07:33.540 and raise my kids is what I'm going to do

00:07:34.760 because I'm getting my $1,000 a month.

00:07:36.760 Eliminate poverty,

00:07:37.760 which sounds good and noble.

00:07:39.400 Help young couples start a family.

00:07:42.660 Babe, 0.51

00:07:43.060 man,

00:07:43.340 life is so expensive,

00:07:44.320 babe.

00:07:44.680 If we have this baby,

00:07:45.460 this is going to cost a lot of money.

00:07:46.800 Yeah,

00:07:47.080 but this plan is $1,000 a month.

00:07:48.880 Babe, 0.51

00:07:49.280 we can have a baby.

00:07:50.380 Oh my gosh,

00:07:51.160 let's make a baby. 0.82

00:07:52.520 Awesome,

00:07:52.940 we can afford it now.

00:07:53.640 That's the idea of what can happen.

00:07:54.880 Con.

00:07:55.600 And the con is taxes would go up,

00:07:58.520 there'd be a fallen labor,

00:08:00.260 and there would be another handout

00:08:01.820 on top of all the other handouts

00:08:03.400 that we already have in America,

00:08:04.400 which I'll explain to you

00:08:05.140 how much handout we're giving today.

00:08:07.160 So now,

00:08:07.960 some of you are watching this

00:08:09.080 and you're saying,

00:08:09.560 Pat,

00:08:10.180 I think this is a great idea.

00:08:12.260 I think UBI is genius. 0.86

00:08:14.100 And what makes you think

00:08:15.300 you are more qualified

00:08:16.700 to say something like this

00:08:17.640 if even Ilan and some of these other guys

00:08:20.040 agree with this?

00:08:20.940 This is genius.

00:08:21.720 We need to have something like this.

00:08:22.680 What if all these robots

00:08:23.460 take over our jobs?

00:08:24.380 What if all this stuff happens to us?

00:08:26.040 What am I going to do?

00:08:27.260 This is not a conversation about UBI.

00:08:30.280 This is a conversation

00:08:31.180 about a whole different story.

00:08:32.700 Let me explain.

00:08:33.800 I want you to think about a family.

00:08:35.820 The family's name is the Jones family.

00:08:37.740 Okay?

00:08:38.100 Stay with me here.

00:08:39.040 This Jones family's annual income

00:08:40.860 is $36,540.

00:08:44.100 That's their annual income.

00:08:45.940 But their cost of living,

00:08:47.360 their expenses annually

00:08:49.060 are $40,940.

00:08:51.760 That is $4,400 more

00:08:55.100 than what they make every year.

00:08:57.280 So how do they survive?

00:08:59.260 And on top of all this stuff,

00:09:01.260 they have $225,000 of debt.

00:09:03.920 I'm talking credit card debt.

00:09:05.560 And on top of that,

00:09:06.400 they have long-term debt

00:09:07.360 of $1.54 million.

00:09:10.060 It's like you're living in a house

00:09:11.500 worth $1.54 million.

00:09:13.400 So imagine you're this family.

00:09:14.980 You only make $36,000.

00:09:16.880 Your expenses are $40,000 a year.

00:09:18.860 You have $220,000 of credit card debt.

00:09:21.480 And you're living in a house

00:09:22.420 that's $1.54 million.

00:09:24.080 What are you thinking about?

00:09:25.680 Now I want you to think about this family.

00:09:27.620 Your wife, your husband,

00:09:28.720 your kid comes and says,

00:09:30.020 Hey mom.

00:09:30.640 Yeah, what's up mom?

00:09:31.900 What's up son?

00:09:32.860 Hey dad.

00:09:33.780 Hey.

00:09:34.320 You know, babe,

00:09:35.000 I think we need to go out there

00:09:36.220 and buy this car

00:09:37.820 that is better than the current

00:09:39.880 Chevy Astro van that we have

00:09:42.180 that's cheap and it's used.

00:09:43.720 I think we need to go buy

00:09:44.620 this new Navigator came out

00:09:45.980 and this new, you know,

00:09:47.300 Expedition that came out

00:09:48.360 or this new Escalade that came out.

00:09:50.440 And your wife says,

00:09:51.040 Babe, what are you talking about?

00:09:51.960 We can't afford that.

00:09:52.880 What do you mean we can't afford that?

00:09:54.100 But it's a great idea.

00:09:55.480 Look how amazing the car is.

00:09:56.680 Babe, we can't afford it.

00:09:58.260 Babe, that's not the way

00:09:59.020 to think about this.

00:10:00.160 We've got to buy this car.

00:10:01.640 Do you think that is a good idea

00:10:03.320 to go buy that Escalade?

00:10:04.620 Do you actually believe that?

00:10:05.920 You really think that's a good idea?

00:10:07.280 Like common sense.

00:10:07.980 You're watching this.

00:10:08.520 You're a numbers person maybe.

00:10:09.980 Does that make any sense?

00:10:10.960 Your wife, your husband,

00:10:11.860 you go up to your family.

00:10:12.600 Would you say yes to it?

00:10:14.120 Everybody would say,

00:10:14.860 Babe, we can't.

00:10:15.380 We have $1.5 million, $220,000.

00:10:17.640 We're about to go bankrupt.

00:10:18.960 We don't have any kind of money.

00:10:20.000 What are you talking about here?

00:10:21.580 Well, here's the reality of it.

00:10:23.500 This is America.

00:10:25.520 This is not the Jones family.

00:10:27.140 You just got to add eight zeros to it.

00:10:29.120 Let me explain to you

00:10:29.700 what I mean by this.

00:10:31.160 That annual income of $36,000

00:10:33.100 is really $3.654 trillion.

00:10:36.020 That annual expenses of $40,940

00:10:39.800 is really $4 trillion of expenses.

00:10:43.000 We are under $440 billion per year.

00:10:47.240 That $225,000 of debt,

00:10:49.980 our national debt is $22.5 trillion.

00:10:53.680 That's real money.

00:10:54.700 $22.5 trillion.

00:10:56.840 Our long-term debt of $1.54 trillion

00:10:59.600 is really $154 trillion.

00:11:03.140 So you may be asking,

00:11:04.840 Pat, what is within that $154 trillion?

00:11:07.020 What do you mean unpaid commitments?

00:11:08.940 Here's what we're talking about.

00:11:10.120 Social Security.

00:11:11.000 We've committed.

00:11:12.060 We've got to pay for it.

00:11:12.840 There's a lot of people

00:11:13.380 that are depending on it.

00:11:14.940 Medicare.

00:11:15.760 Part A, which is hospital.

00:11:17.100 Part B, which is medical.

00:11:18.760 And then D is your prescription.

00:11:20.460 Federal debt held by public.

00:11:22.220 Federal employees.

00:11:23.100 And veteran benefits.

00:11:24.040 So that's $154 trillion

00:11:25.800 of unfunded liabilities

00:11:27.420 that we have to pay.

00:11:28.320 That's just a commitment

00:11:28.960 that we made to the people, right?

00:11:30.520 So that's going to be happening.

00:11:31.640 But the question I want you

00:11:32.400 to be thinking about is the following.

00:11:33.960 Remember how I said,

00:11:35.480 we make only $36,000,

00:11:36.860 we spend $40,000?

00:11:38.080 Watch how much America

00:11:39.940 spends on entitlement programs.

00:11:42.500 Out of our $3.654 trillion

00:11:44.840 that comes in every year,

00:11:47.200 $2.7 trillion

00:11:49.980 goes towards entitlement programs.

00:11:52.640 Let me unpack that for you.

00:11:55.180 $988 billion a year

00:11:56.980 goes to Social Security.

00:11:59.260 $589 billion goes to Medicare.

00:12:00.900 $604 billion goes to Medicaid.

00:12:04.020 And $443 billion

00:12:05.600 goes to other welfare programs.

00:12:07.860 And for some of you guys

00:12:08.740 that were asking about military,

00:12:10.380 military is $684 billion last year.

00:12:13.200 That's $684 billion military.

00:12:15.800 $2.7 trillion

00:12:17.200 entitlement programs.

00:12:19.240 And on top of that,

00:12:20.920 Andrew Yang wants to spend

00:12:22.060 $3 more trillion

00:12:22.980 on top of our $2.7 trillion

00:12:25.100 of more entitlement programs

00:12:26.500 where Milton Friedman said,

00:12:28.300 negative income tax.

00:12:29.220 Let's get rid of all these

00:12:30.080 entitlement programs.

00:12:31.240 Here's just money back.

00:12:32.060 Do whatever you want to do with it.

00:12:32.960 You want to get health insurance?

00:12:33.780 You want to get this?

00:12:34.280 It's on you.

00:12:35.180 You decide what you want to do with it.

00:12:36.560 We're not giving you

00:12:37.160 any more entitlement programs.

00:12:38.580 This is it.

00:12:39.340 He wants to tag

00:12:40.320 on top of everything else.

00:12:41.600 So now,

00:12:42.480 you're watching this.

00:12:43.160 You're saying,

00:12:43.380 well, Pat,

00:12:44.400 why are so many people

00:12:45.380 getting excited about it?

00:12:47.220 An idea like this,

00:12:48.540 people are just like,

00:12:49.480 everybody seems excited about it.

00:12:50.860 Look,

00:12:51.260 if you think about

00:12:52.020 how the U.S. government

00:12:52.760 gets money,

00:12:53.320 it's typically three different ways.

00:12:54.600 One is taxes,

00:12:55.820 one is borrowing money

00:12:56.800 from other governments,

00:12:58.020 and the other one

00:12:58.800 is printing money.

00:12:59.600 So let's talk about

00:13:00.260 all of them.

00:13:00.860 Taxes.

00:13:01.800 If they raise taxes too much,

00:13:03.640 Arthur Laffer once said,

00:13:04.840 if we go above

00:13:05.860 a 30-34% tax rate,

00:13:08.860 and David Romer

00:13:09.760 said the similar thing,

00:13:10.800 who's out of Berkeley,

00:13:11.720 him and his wife

00:13:12.200 wrote a paper saying,

00:13:13.040 anything above

00:13:13.740 34.5% motivation

00:13:15.800 goes down to create

00:13:16.660 more economy,

00:13:17.380 more commerce, right?

00:13:18.420 So if you tax too much,

00:13:19.700 incentive goes away.

00:13:21.060 And just like you

00:13:21.860 incentivize your kids

00:13:23.000 to do something,

00:13:24.160 they gotta incentivize

00:13:25.240 us adults

00:13:25.880 to go do something

00:13:26.700 and create something better,

00:13:27.780 okay?

00:13:28.280 So the problem

00:13:28.880 with too much taxes,

00:13:30.120 incentive goes away.

00:13:31.000 Number two,

00:13:31.400 with borrowing money.

00:13:32.680 When you borrow

00:13:33.360 too much money,

00:13:34.160 you get into debt,

00:13:35.320 and other countries

00:13:36.360 control you.

00:13:37.320 Great Britain,

00:13:38.440 the money they borrowed

00:13:39.500 from the U.S.

00:13:40.100 for World War II

00:13:40.900 for the weapons they bought,

00:13:42.260 they barely paid off

00:13:43.240 that money

00:13:43.680 December 31st of 2006.

00:13:46.100 Think about how many years

00:13:47.000 that was

00:13:47.420 until they paid it off,

00:13:48.340 right?

00:13:48.480 Now they had to make

00:13:49.020 the decision,

00:13:49.700 but it took a long time

00:13:50.580 and we have a lot

00:13:51.360 of money we owe right now.

00:13:52.640 And last but not least

00:13:53.520 is printing money.

00:13:55.380 U.S. can make a decision

00:13:56.400 at any point

00:13:57.040 to say,

00:13:57.320 we're gonna start

00:13:57.660 printing money,

00:13:58.280 but here's the reality

00:13:58.960 with printing money.

00:14:00.180 I collect baseball cards.

00:14:01.900 A 1986

00:14:03.120 Michael Jordan rookie card,

00:14:05.440 FLIR,

00:14:06.620 BGS 9 1⁄2,

00:14:07.840 which is Beckett

00:14:08.500 Graded Services,

00:14:09.400 9 1⁄2,

00:14:10.720 was sold for $77,000

00:14:12.480 a few years ago,

00:14:13.660 okay?

00:14:14.320 $77,000.

00:14:16.000 Fast forward today,

00:14:17.140 that same $77,000

00:14:19.940 card today

00:14:20.540 you can buy

00:14:20.900 for $8,000,

00:14:21.260 $9,000.

00:14:22.140 Let me say that again.

00:14:23.300 That same $77,000

00:14:24.500 card today

00:14:25.020 you can buy

00:14:25.320 for $8,000,

00:14:25.640 $9,000.

00:14:26.220 You know why?

00:14:27.000 Because back then

00:14:27.660 there was only

00:14:28.020 a couple of them.

00:14:28.700 Today,

00:14:29.400 there are hundreds

00:14:30.600 everywhere you can get

00:14:31.620 a 9 1⁄2 graded.

00:14:33.040 So people are like,

00:14:33.700 oh, you know,

00:14:34.080 I'll give you 7 grand,

00:14:35.260 I'll give you 8 grand,

00:14:35.980 I'll give you 9 grand.

00:14:36.820 It's not worth a lot anymore.

00:14:38.260 We can print

00:14:39.100 to be able to afford

00:14:39.940 this $5.7 trillion,

00:14:41.420 but dollar goes down,

00:14:42.860 other countries control America. 0.61

00:14:44.060 So there is ways

00:14:45.380 to get money,

00:14:46.060 but just because

00:14:46.560 there's ways to get money

00:14:47.440 doesn't mean a family

00:14:48.120 should go out there

00:14:48.640 and do it, right?

00:14:49.600 So that's one thing

00:14:50.280 to be thinking about.

00:14:51.000 The second thing

00:14:51.480 I want you to think about

00:14:52.200 is this.

00:14:53.520 The fear of innovation.

00:14:55.160 You know,

00:14:55.680 but Pat,

00:14:56.960 this is real, Pat.

00:14:58.140 You mean to tell me

00:14:58.940 you're not concerned?

00:14:59.460 These are some smart people

00:15:00.360 saying this stuff.

00:15:01.360 But is innovation

00:15:02.420 really new?

00:15:03.180 Like, is this really new?

00:15:04.780 Is this something

00:15:05.300 that we ought to be

00:15:05.920 that concerned about?

00:15:07.140 Did it just,

00:15:07.780 like, did this just

00:15:08.660 start happening

00:15:09.400 and robots are just

00:15:10.360 coming out?

00:15:11.120 Have we had other

00:15:11.960 kind of innovation

00:15:12.780 where experts

00:15:13.400 were all worried

00:15:14.000 about what's going

00:15:14.780 to happen with the economy?

00:15:15.860 Let me give you

00:15:16.420 a few examples of some.

00:15:18.240 Cars replaced jobs.

00:15:19.620 I mean,

00:15:19.940 before cars,

00:15:20.780 it was horses, right?

00:15:22.380 Electricity replaced jobs.

00:15:24.100 Lights,

00:15:24.540 you know how you

00:15:24.920 turn on the lights?

00:15:25.600 Lights replaced jobs.

00:15:26.680 My dad used to be

00:15:27.340 able to make candles

00:15:28.000 in Iran.

00:15:28.440 That's how he made money.

00:15:29.640 Candles don't mean 0.99

00:15:30.260 anything today

00:15:30.840 except for a hot date,

00:15:32.020 right?

00:15:32.880 Telephones replaced jobs.

00:15:34.860 Machines replaced jobs.

00:15:36.680 Trains replaced jobs.

00:15:38.980 Calculators replaced jobs.

00:15:41.340 Computers replaced jobs.

00:15:43.060 The internet replaced jobs.

00:15:45.860 Video games replaced jobs.

00:15:49.300 So, we can sit here

00:15:50.620 and talk about,

00:15:51.720 oh my gosh,

00:15:52.600 all these robots

00:15:53.160 are going to be replaced.

00:15:53.940 That's called innovation.

00:15:56.240 And advancement's

00:15:57.060 going to be taking place.

00:15:58.360 And every 30 to 50 years,

00:16:00.400 jobs are going to be replaced.

00:16:02.520 This is why 60% of

00:16:04.240 Fortune 500 companies

00:16:05.340 from 1970 are no longer around.

00:16:08.040 Because it replaces.

00:16:09.980 And if you don't adapt,

00:16:11.420 if you don't adjust,

00:16:12.360 and you don't pivot,

00:16:13.260 this is going to happen

00:16:14.400 to everybody.

00:16:15.400 This isn't a new thing.

00:16:17.020 So, somebody may be watching

00:16:17.920 and saying,

00:16:18.620 well, Pat,

00:16:19.040 I know you're seeing

00:16:19.800 all this stuff

00:16:20.400 and this sounds good,

00:16:21.740 but I still think

00:16:23.060 we have other problems

00:16:23.720 we ought to be focused on.

00:16:24.720 Shouldn't we kind of

00:16:25.460 fix this kind of stuff?

00:16:26.720 Here's the reality of it.

00:16:27.580 Look,

00:16:28.260 your value system

00:16:29.660 is going to tell you

00:16:31.200 which problems

00:16:32.020 you think we should change

00:16:33.040 and which problems

00:16:33.860 you think we should focus on

00:16:34.960 and spend money on.

00:16:35.600 Right?

00:16:35.680 Let me give you an example.

00:16:36.460 Say you and I are roommates.

00:16:39.040 And neither one of us

00:16:39.820 have a lot of money.

00:16:40.580 But every month

00:16:41.160 we set aside $100

00:16:42.060 of roommate money

00:16:43.180 that we save, okay?

00:16:44.300 And we buy stuff

00:16:45.200 for the place

00:16:45.640 that we live together.

00:16:46.880 All of a sudden

00:16:47.460 we have $400 saved.

00:16:49.140 And you say,

00:16:50.300 I think we need to buy a TV.

00:16:52.020 And I say,

00:16:52.480 buddy,

00:16:52.660 we don't need a TV.

00:16:53.540 We can watch this stuff

00:16:54.300 on our phones.

00:16:55.120 We need a microwave 0.99

00:16:56.120 and we need like a

00:16:57.140 George Foreman girl

00:16:58.160 to be able to cook

00:16:58.900 and we need a couple pans.

00:16:59.880 We don't have that.

00:17:00.740 Are you kidding me, man?

00:17:01.760 We got girls coming. 0.97

00:17:02.740 We need a TV.

00:17:03.740 We need to eat.

00:17:05.200 Man,

00:17:05.320 we need a better microwave.

00:17:06.160 That microwave is not working.

00:17:07.200 It's not even doing

00:17:07.700 the toaster stuff.

00:17:08.960 The decision on

00:17:09.960 who's right

00:17:10.400 is based on the value system.

00:17:11.920 Party, fun,

00:17:13.280 feed, healthy,

00:17:14.820 you know,

00:17:15.040 what is the one

00:17:16.100 that you want to vote for?

00:17:17.200 That's how we come out

00:17:18.120 with programs

00:17:18.720 and you're generally

00:17:19.840 going to vote for a program

00:17:21.060 that's going to be

00:17:21.640 benefiting you.

00:17:22.580 By the way,

00:17:23.220 this is not just me or you.

00:17:24.520 This is everybody.

00:17:25.560 But we have to sit there

00:17:26.480 and say,

00:17:26.780 is that the betterment

00:17:27.720 for what we're really

00:17:28.720 trying to do to advance?

00:17:30.120 Do we really go into debt

00:17:31.180 this kind of money

00:17:31.760 and say yes to UBI?

00:17:32.840 Is it really that big

00:17:33.660 of a concern?

00:17:34.180 And the other thing

00:17:34.960 I want you to think about

00:17:35.760 is the following.

00:17:36.420 Look,

00:17:38.060 this isn't the first time

00:17:39.220 brilliant minds

00:17:39.980 have said things

00:17:40.780 that aren't right.

00:17:42.200 And a lot of people say,

00:17:42.960 well, Pat,

00:17:43.820 you, again,

00:17:45.500 Elon Musk

00:17:46.260 and Zuckerberg said this.

00:17:48.160 Listen,

00:17:48.900 I've said stuff

00:17:49.820 that have been wrong.

00:17:51.280 A lot of people

00:17:52.160 have said stuff

00:17:52.760 that are wrong.

00:17:53.700 Anybody that comes up

00:17:55.060 and does something big,

00:17:56.320 it doesn't mean

00:17:57.080 100% of their predictions

00:17:58.760 are right.

00:17:59.560 Let me share a few with you.

00:18:01.560 You ever heard of this guy

00:18:02.260 named Bill Gates?

00:18:03.020 You know Bill Gates

00:18:03.520 from Microsoft?

00:18:04.240 In 1981,

00:18:05.060 this is what he said.

00:18:06.300 No one will ever need

00:18:07.620 more than 637 kilobytes

00:18:10.460 of memory

00:18:11.000 for a personal computer.

00:18:13.020 640 kilobytes

00:18:14.000 ought to be enough

00:18:14.860 for anybody.

00:18:16.120 Bill Gates said that.

00:18:17.420 It's a guy worth

00:18:17.960 nearly $100 billion

00:18:18.760 to something like that.

00:18:19.980 Thomas Edison

00:18:20.600 in 1889 said,

00:18:21.640 fooling around

00:18:22.020 with alternative current,

00:18:22.940 which is AC,

00:18:23.760 is just a waste of time.

00:18:25.500 No one will use it ever.

00:18:27.500 Albert Einstein

00:18:28.240 in 1932 said,

00:18:29.480 there's not the slightest

00:18:30.500 indication

00:18:31.240 that nuclear energy

00:18:32.800 will ever be obtainable.

00:18:34.440 It would mean

00:18:35.060 that the atom

00:18:35.800 would have to be

00:18:36.700 shattered at will.

00:18:38.020 Einstein,

00:18:38.720 one of the biggest geniuses,

00:18:40.300 E equals MC squared 0.68

00:18:41.660 said something like that.

00:18:43.080 Andy Grove,

00:18:43.780 who's a genius,

00:18:44.560 somebody I admire tremendously,

00:18:46.180 CEO of Intel

00:18:46.800 in 1992 said,

00:18:48.360 the idea of a personal

00:18:49.400 communicator

00:18:50.100 in every pocket

00:18:51.300 is a pipe dream

00:18:52.640 by greed.

00:18:54.200 This is Andy Grove

00:18:55.660 saying this.

00:18:56.320 Steve Jobs in 03

00:18:58.100 said the subscription

00:18:59.040 model of buying music

00:19:00.180 is bankrupt.

00:19:01.000 I think you could

00:19:01.580 make available

00:19:02.240 the second coming

00:19:03.100 in a subscription model

00:19:04.640 and it might not

00:19:05.720 be successful.

00:19:06.480 He said this

00:19:06.880 to Rolling Stone magazine.

00:19:08.400 And last but not least,

00:19:09.800 Charles Duell,

00:19:11.280 commissioner,

00:19:11.980 U.S. Patton

00:19:12.840 of 1899

00:19:14.060 said the following,

00:19:15.160 everything that can

00:19:16.580 be invented

00:19:17.220 has already been invented.

00:19:19.220 Can you imagine?

00:19:20.200 These are some

00:19:20.800 genius luminaries

00:19:21.920 who said the following things.

00:19:23.320 You've said some things

00:19:24.180 you were wrong.

00:19:24.640 Just because everybody

00:19:25.280 said let's worry about AI,

00:19:26.220 it doesn't mean

00:19:26.540 everybody's right.

00:19:27.540 It just means

00:19:28.000 it's an opinion.

00:19:29.160 As much as we're worried

00:19:30.340 about AI and robots

00:19:31.740 and all this other stuff,

00:19:32.680 I want you to think

00:19:33.180 about it in a whole

00:19:33.660 different way.

00:19:35.020 20 years ago,

00:19:35.880 could a seven-year-old

00:19:37.020 make $21 million

00:19:38.320 in a year on YouTube?

00:19:40.000 No.

00:19:41.180 20 years ago,

00:19:42.060 would you and I

00:19:42.520 have known each other?

00:19:43.700 How?

00:19:44.300 How would you have

00:19:44.840 known me?

00:19:45.240 Through YouTube?

00:19:45.840 Many of you around the world,

00:19:46.800 170, 180 different countries

00:19:48.360 watch Valuetainment.

00:19:49.380 How did you find this?

00:19:50.820 Did I come and shake your hand?

00:19:52.420 Have you and I

00:19:53.040 ever met before?

00:19:54.400 We probably never met before.

00:19:55.540 How did this happen?

00:19:56.500 Technology.

00:19:57.000 Twitter, you can share your opinion.

00:19:58.900 Facebook, pictures.

00:20:00.540 I've got family, friends

00:20:01.640 all over the world.

00:20:02.980 I can see where they're at.

00:20:04.120 I don't need to call them

00:20:04.880 every five seconds

00:20:05.540 to see what's going on.

00:20:06.400 I can simply go on Facebook

00:20:07.460 and see the pictures

00:20:08.100 of their kids growing up.

00:20:09.160 I couldn't have done that before.

00:20:10.040 I would have missed these moments.

00:20:11.440 So as much as we can put the fear

00:20:13.420 of what AI can do to people,

00:20:16.240 we've got to kind of look at it

00:20:17.360 and say,

00:20:17.680 okay, say this happens one day.

00:20:19.500 It's not here today,

00:20:20.600 but say it happens one day.

00:20:22.120 We keep watching movies with robots.

00:20:23.780 Say it happens in one day.

00:20:25.360 I best make sure I take care of my family

00:20:28.000 by making sure I adapt, adjust, and pivot

00:20:30.580 so if this ever comes,

00:20:32.380 you're at least in good place financially.

00:20:34.220 Because if I go to sleep

00:20:35.380 every single night

00:20:36.140 worrying about being

00:20:36.940 the end of the world,

00:20:37.900 kind of a life in my life.

00:20:38.620 Can you imagine if every day

00:20:39.500 you're worried about

00:20:40.060 what your wife is going to do, 1.00

00:20:41.700 husband's going to do, 1.00

00:20:42.420 your kids are going to do,

00:20:43.160 you're constantly worried

00:20:43.920 about what your job is going to do,

00:20:45.000 what the market's going to do.

00:20:46.120 I'm in the insurance business.

00:20:47.300 Can you imagine if every day

00:20:48.160 you're worried about dying?

00:20:49.060 What kind of a life is that?

00:20:50.560 It doesn't produce offense.

00:20:53.040 It produces this.

00:20:54.540 It produces fear.

00:20:55.620 People don't move when they're like this.

00:20:57.400 Don't let a lot of these minds

00:20:58.780 produce the fear

00:20:59.520 where you don't move.

00:21:00.380 My encouragement to you

00:21:01.680 is to listen to this message

00:21:02.720 and say, you know what?

00:21:04.020 As much as it's advancing,

00:21:05.740 I'm going to have this thing

00:21:06.520 work in my favor

00:21:07.300 rather than being a person

00:21:08.440 that's frightened of it.

00:21:09.200 I hope you do that.

00:21:09.940 So again,

00:21:10.740 I'm not telling you

00:21:11.400 anything I said today

00:21:12.460 is right or wrong.

00:21:13.100 I'm not telling you

00:21:13.520 what I said,

00:21:14.100 these are my thoughts.

00:21:15.000 I'm not telling you

00:21:15.620 I'm 100% right.

00:21:16.800 What I am encouraging you to do

00:21:18.320 is the same thing.

00:21:19.000 The next time you hear an idea

00:21:20.140 that sounds ludicrous

00:21:21.160 or exciting

00:21:21.800 rather than jumping up excited

00:21:23.340 or saying this is terrible,

00:21:24.880 go do some research.

00:21:26.440 Go online and say,

00:21:27.140 yeah,

00:21:27.820 it's not as simple

00:21:28.780 as the guy made it out to be.

00:21:29.920 Thanks everybody for listening

00:21:31.220 and by the way,

00:21:31.800 if you haven't already

00:21:32.400 subscribed to Valuetainment

00:21:33.640 on iTunes,

00:21:34.700 please do so.

00:21:35.940 Give us a five star,

00:21:37.260 write a review

00:21:37.900 if you haven't already

00:21:38.700 and if you have any questions

00:21:39.840 for me that you may have,

00:21:41.040 you can always find me

00:21:41.940 on Snapchat,

00:21:42.920 Instagram,

00:21:43.660 Facebook,

00:21:44.240 or YouTube.

00:21:44.880 Just search my name,

00:21:45.780 Patrick MidDavid

00:21:46.620 and I actually do respond back

00:21:48.760 when you snap me

00:21:49.620 or send me a message

00:21:50.740 on Instagram.

00:21:51.780 With that being said,

00:21:52.460 have a great day today.

00:21:53.500 Take care everybody.

00:21:54.080 Bye-bye.

Valuetainment - July 31, 2020

Universal Basic Income Explained by Patrick Bet-David

Episode Stats

Summary

Transcript