The Real Reason Elon Is A Trillionaire Has Nothing To Do With Greed — It Has To Do With Your Savings

Elon Musk is now worth more than the Elon Musk is now worth more than the next four richest people on the planet next four richest people on the planet next four richest people on the planet combined and more than the bottom half combined and more than the bottom half combined and more than the bottom half of every household in America put of every household in America put of every household in America put together. But the people who are together. But the people who are together. But the people who are convinced Elon Musk cheated his way to convinced Elon Musk cheated his way to convinced Elon Musk cheated his way to becoming the first trillionaire do not becoming the first trillionaire do not becoming the first trillionaire do not understand the economy or who is understand the economy or who is understand the economy or who is actually stealing from them. Elon's rise actually stealing from them. Elon's rise actually stealing from them. Elon's rise to trillionaire status is an incredible to trillionaire status is an incredible to trillionaire status is an incredible story of success, value creation, and story of success, value creation, and story of success, value creation, and theft. But in the age of envy, people theft. But in the age of envy, people theft. But in the age of envy, people are very confused about what's actually are very confused about what's actually are very confused about what's actually going on. So the second Elon crossed going on. So the second Elon crossed going on. So the second Elon crossed over into trillionaire status, half the over into trillionaire status, half the over into trillionaire status, half the country instantly called it a crime. country instantly called it a crime. country instantly called it a crime. Bernie Sanders specifically called it a Bernie Sanders specifically called it a Bernie Sanders specifically called it a crime against the working class. And crime against the working class. And crime against the working class. And yet, the same weekend Bernie was saying yet, the same weekend Bernie was saying yet, the same weekend Bernie was saying that, a working class employee from that, a working class employee from that, a working class employee from SpaceX named Juan Hernandez was sitting SpaceX named Juan Hernandez was sitting SpaceX named Juan Hernandez was sitting on over a million dollars in wealth on over a million dollars in wealth on over a million dollars in wealth earned by simply holding his stock and earned by simply holding his stock and earned by simply holding his stock and sharing in the risk with Elon and the sharing in the risk with Elon and the sharing in the risk with Elon and the other employees. He wasn't an exec, he other employees. He wasn't an exec, he other employees. He wasn't an exec, he was a welder. But unlike Bernie, he was a welder. But unlike Bernie, he was a welder. But unlike Bernie, he understood how to take advantage of the understood how to take advantage of the understood how to take advantage of the value that was created by the world's value that was created by the world's value that was created by the world's first trillionaire. And thanks to the first trillionaire. And thanks to the first trillionaire. And thanks to the miracle of our incredibly flawed miracle of our incredibly flawed miracle of our incredibly flawed economic system, SpaceX alone, one economic system, SpaceX alone, one economic system, SpaceX alone, one company, has created more than 4,000 company, has created more than 4,000 company, has created more than 4,000 millionaires. But when I say that, I millionaires. But when I say that, I millionaires. But when I say that, I know that some people are going to know that some people are going to know that some people are going to stroke out. Why? Because they're stroke out. Why? Because they're stroke out. Why? Because they're convinced that the economy is rigged. convinced that the economy is rigged. convinced that the economy is rigged. And the crazy part? It is. But not in And the crazy part? It is. But not in And the crazy part? It is. But not in the way that most people think. So they the way that most people think. So they the way that most people think. So they keep shooting themselves in the face keep shooting themselves in the face keep shooting themselves in the face with arguments that will ensure they with arguments that will ensure they with arguments that will ensure they forever remain on the bottom of the forever remain on the bottom of the forever remain on the bottom of the economy. And if they get their way, economy. And if they get their way, economy. And if they get their way, they'll pull everyone down with them. So they'll pull everyone down with them. So they'll pull everyone down with them. So today, we're going to confront the core today, we're going to confront the core today, we're going to confront the core accusations that people throw around as accusations that people throw around as accusations that people throw around as proof that the mere existence of a proof that the mere existence of a proof that the mere existence of a trillionaire proves the system is trillionaire proves the system is trillionaire proves the system is irredeemable. And in so doing, we're irredeemable. And in so doing, we're irredeemable. And in so doing, we're going to prove that something completely going to prove that something completely going to prove that something completely different is actually going on. If you different is actually going on. If you different is actually going on. If you want validation that our system is want validation that our system is want validation that our system is broken, part one is for you. If you want broken, part one is for you. If you want broken, part one is for you. If you want to understand how billionaires are to understand how billionaires are to understand how billionaires are actually a symptom of something very actually a symptom of something very actually a symptom of something very surprising, head to part two. But if you surprising, head to part two. But if you surprising, head to part two. But if you want to understand whether or not we want to understand whether or not we want to understand whether or not we should just burn the whole system to the should just burn the whole system to the should just burn the whole system to the ground, part three is what you're ground, part three is what you're ground, part three is what you're looking for. Welcome to part one. Yes, looking for. Welcome to part one. Yes, looking for. Welcome to part one. Yes, the game is rigged. In just the last six the game is rigged. In just the last six the game is rigged. In just the last six years alone, the money in your pocket years alone, the money in your pocket years alone, the money in your pocket has lost about a third of its value. And has lost about a third of its value. And has lost about a third of its value. And for every new dollar the government for every new dollar the government for every new dollar the government collects in taxes, it turns around and collects in taxes, it turns around and collects in taxes, it turns around and spends $1.58, which is the problem. That spends $1.58, which is the problem. That spends $1.58, which is the problem. That is the very death march that defines our is the very death march that defines our is the very death march that defines our modern economy. Politicians campaign on modern economy. Politicians campaign on modern economy. Politicians campaign on promises of more free stuff, and we vote promises of more free stuff, and we vote promises of more free stuff, and we vote for it, dooming ourselves to the for it, dooming ourselves to the for it, dooming ourselves to the inflationary loop that we are in now. inflationary loop that we are in now. inflationary loop that we are in now. The government spends money it does not The government spends money it does not The government spends money it does not have, so it has to print the difference. have, so it has to print the difference. have, so it has to print the difference. And the money in your bank account, And the money in your bank account, And the money in your bank account, therefore, buys less every single year. therefore, buys less every single year. therefore, buys less every single year. So, if you hold cash, you lose, So, if you hold cash, you lose, So, if you hold cash, you lose, guaranteed. It's fundamental to the way guaranteed. It's fundamental to the way guaranteed. It's fundamental to the way the system works. the system works. the system works. If you want to understand the most If you want to understand the most If you want to understand the most foundational layer of how the economy is foundational layer of how the economy is foundational layer of how the economy is rigged against you, you have to rigged against you, you have to rigged against you, you have to understand inflation. And we actively understand inflation. And we actively understand inflation. And we actively participate in the madness by what we participate in the madness by what we participate in the madness by what we vote for. The only way to not lose in an vote for. The only way to not lose in an vote for. The only way to not lose in an inflationary system is to get out of inflationary system is to get out of inflationary system is to get out of dollars and into assets, stocks, real dollars and into assets, stocks, real dollars and into assets, stocks, real estate, anything that's likely to rise estate, anything that's likely to rise estate, anything that's likely to rise with inflation. It's just how the math with inflation. It's just how the math with inflation. It's just how the math works. And it means tens of millions of works. And it means tens of millions of works. And it means tens of millions of people are forced into the stock market people are forced into the stock market people are forced into the stock market whether they understand it or not, just whether they understand it or not, just whether they understand it or not, just to keep from moving backwards to keep from moving backwards to keep from moving backwards financially. Now, as it relates to how financially. Now, as it relates to how financially. Now, as it relates to how we just got our first trillionaire, you we just got our first trillionaire, you we just got our first trillionaire, you have to layer on AI's peculiar market have to layer on AI's peculiar market have to layer on AI's peculiar market distortions on top of that. AI is the distortions on top of that. AI is the distortions on top of that. AI is the hottest asset on Earth right now, and hottest asset on Earth right now, and hottest asset on Earth right now, and the way it's being financed is risky at the way it's being financed is risky at the way it's being financed is risky at best, at least according to history. I best, at least according to history. I best, at least according to history. I made a whole video about this, which you made a whole video about this, which you made a whole video about this, which you can watch right here. The companies can watch right here. The companies can watch right here. The companies building AI right now are borrowing building AI right now are borrowing building AI right now are borrowing hundreds of billions of dollars to build hundreds of billions of dollars to build hundreds of billions of dollars to build out the AI infrastructure. This includes out the AI infrastructure. This includes out the AI infrastructure. This includes chips that go obsolete in about 3 years. chips that go obsolete in about 3 years. chips that go obsolete in about 3 years. The banks making those loans do not want The banks making those loans do not want The banks making those loans do not want to be caught holding the bag if the to be caught holding the bag if the to be caught holding the bag if the market gets spooked, or the revenue just market gets spooked, or the revenue just market gets spooked, or the revenue just doesn't come in fast enough. So, they doesn't come in fast enough. So, they doesn't come in fast enough. So, they are running the same playbook they ran are running the same playbook they ran are running the same playbook they ran in 2008. in 2008. in 2008. Slice up the risky debt, repackage it, Slice up the risky debt, repackage it, Slice up the risky debt, repackage it, and sell it off into the pension funds and sell it off into the pension funds and sell it off into the pension funds and retirement accounts to ensure that and retirement accounts to ensure that and retirement accounts to ensure that the public is exposed. That acts to the public is exposed. That acts to the public is exposed. That acts to mitigate their risk and dramatically mitigate their risk and dramatically mitigate their risk and dramatically increase the likelihood that the increase the likelihood that the increase the likelihood that the government will intervene with more government will intervene with more government will intervene with more money printing should a problem arise. money printing should a problem arise. money printing should a problem arise. Just like in 2008, which drives the Just like in 2008, which drives the Just like in 2008, which drives the value of assets up and cash down. And value of assets up and cash down. And value of assets up and cash down. And that's how the bankers end up winning, that's how the bankers end up winning, that's how the bankers end up winning, and the elite class continues to pull and the elite class continues to pull and the elite class continues to pull away from everybody else. Now, away from everybody else. Now, away from everybody else. Now, complicating matters in the face of the complicating matters in the face of the complicating matters in the face of the devastating math around AI chips devastating math around AI chips devastating math around AI chips lifecycle going from new to obsolete, lifecycle going from new to obsolete, lifecycle going from new to obsolete, the AI companies put on their books that the AI companies put on their books that the AI companies put on their books that the chips are going to last roughly 5 or the chips are going to last roughly 5 or the chips are going to last roughly 5 or 6 years. But, skeptics like Michael 6 years. But, skeptics like Michael 6 years. But, skeptics like Michael Burry, the guy who saw 2008 coming a Burry, the guy who saw 2008 coming a Burry, the guy who saw 2008 coming a mile off, say the real number is closer mile off, say the real number is closer mile off, say the real number is closer to 2 or 3 years, and that the 5 or to 2 or 3 years, and that the 5 or to 2 or 3 years, and that the 5 or 6-year figure that is being used is 6-year figure that is being used is 6-year figure that is being used is being used as an accounting trick to being used as an accounting trick to being used as an accounting trick to hide losses, at least for now, which hide losses, at least for now, which hide losses, at least for now, which only further accelerates the push of the only further accelerates the push of the only further accelerates the push of the risk off to the retail class who do not risk off to the retail class who do not risk off to the retail class who do not understand what's happening. And to make understand what's happening. And to make understand what's happening. And to make matters worse, normally the most matters worse, normally the most matters worse, normally the most expensive thing that gets built out when expensive thing that gets built out when expensive thing that gets built out when building out the revolutionary new tech building out the revolutionary new tech building out the revolutionary new tech infrastructure is the thing that lasts infrastructure is the thing that lasts infrastructure is the thing that lasts the longest. Think of the railroads, the the longest. Think of the railroads, the the longest. Think of the railroads, the stations for the railroads, or the fiber stations for the railroads, or the fiber stations for the railroads, or the fiber optic cable for the internet. But with optic cable for the internet. But with optic cable for the internet. But with AI, the most expensive thing, the chips, AI, the most expensive thing, the chips, AI, the most expensive thing, the chips, is the thing that actually dies the is the thing that actually dies the is the thing that actually dies the fastest. So, the revenue has to come in fastest. So, the revenue has to come in fastest. So, the revenue has to come in fast or the debt buries everyone and fast or the debt buries everyone and fast or the debt buries everyone and wipes out the early investors. This is a wipes out the early investors. This is a wipes out the early investors. This is a huge risk for AI right now as the gap huge risk for AI right now as the gap huge risk for AI right now as the gap between the cost of build out and the between the cost of build out and the between the cost of build out and the rate that revenue is being generated is rate that revenue is being generated is rate that revenue is being generated is massive, like staggeringly large. The massive, like staggeringly large. The massive, like staggeringly large. The early money knows that the clock is early money knows that the clock is early money knows that the clock is ticking, which is exactly why the ticking, which is exactly why the ticking, which is exactly why the biggest wave of IPOs in history is biggest wave of IPOs in history is biggest wave of IPOs in history is happening right now. SpaceX, Anthropic, happening right now. SpaceX, Anthropic, happening right now. SpaceX, Anthropic, OpenAI, they're all lining up. And an OpenAI, they're all lining up. And an OpenAI, they're all lining up. And an IPO has to be understood mechanically as IPO has to be understood mechanically as IPO has to be understood mechanically as an exit. It's the moment where the savvy an exit. It's the moment where the savvy an exit. It's the moment where the savvy early money finally gets to sell to the early money finally gets to sell to the early money finally gets to sell to the general public. A public that is less general public. A public that is less general public. A public that is less savvy and prone to getting caught up in savvy and prone to getting caught up in savvy and prone to getting caught up in the hype. That's why alarm bells went the hype. That's why alarm bells went the hype. That's why alarm bells went off for a lot of you when the indexes off for a lot of you when the indexes off for a lot of you when the indexes started changing their rules to started changing their rules to started changing their rules to accommodate SpaceX's IPO and effectively accommodate SpaceX's IPO and effectively accommodate SpaceX's IPO and effectively default put SpaceX in people's hands default put SpaceX in people's hands default put SpaceX in people's hands whether they wanted it or not. And right whether they wanted it or not. And right whether they wanted it or not. And right now, more than 30 trillion dollars is now, more than 30 trillion dollars is now, more than 30 trillion dollars is tied to the major stock indexes, the tied to the major stock indexes, the tied to the major stock indexes, the S&P, the Nasdaq, the Russell. When a S&P, the Nasdaq, the Russell. When a S&P, the Nasdaq, the Russell. When a company gets added to one of those company gets added to one of those company gets added to one of those indexes, every fund that tracks it is indexes, every fund that tracks it is indexes, every fund that tracks it is forced to buy the stock automatically. forced to buy the stock automatically. forced to buy the stock automatically. There has always been a rule that a There has always been a rule that a There has always been a rule that a company has to trade publicly for company has to trade publicly for company has to trade publicly for roughly a year before it can be added to roughly a year before it can be added to roughly a year before it can be added to an index. That waiting period exists to an index. That waiting period exists to an index. That waiting period exists to ensure the market can figure out what ensure the market can figure out what ensure the market can figure out what the stock is actually worth post a hype the stock is actually worth post a hype the stock is actually worth post a hype before people automatically get it added before people automatically get it added before people automatically get it added to to portfolio. This is designed to to to portfolio. This is designed to to to portfolio. This is designed to protect regular people from getting protect regular people from getting protect regular people from getting shoved into an untested stock. But this shoved into an untested stock. But this shoved into an untested stock. But this year, Nasdaq and the Russell changed year, Nasdaq and the Russell changed year, Nasdaq and the Russell changed that rule. They built a fast lane so that rule. They built a fast lane so that rule. They built a fast lane so mega cap companies like SpaceX can get mega cap companies like SpaceX can get mega cap companies like SpaceX can get added in weeks instead of a year. added in weeks instead of a year. added in weeks instead of a year. Michael Burry and many others have cried Michael Burry and many others have cried Michael Burry and many others have cried foul about this. One Wall Street foul about this. One Wall Street foul about this. One Wall Street veteran, George Noble, called the change veteran, George Noble, called the change veteran, George Noble, called the change a shameless manipulation of the index. a shameless manipulation of the index. a shameless manipulation of the index. Why? Because it lets the bankers, early Why? Because it lets the bankers, early Why? Because it lets the bankers, early investors, and insiders get guaranteed investors, and insiders get guaranteed investors, and insiders get guaranteed buyers at sky-high prices, and the index buyers at sky-high prices, and the index buyers at sky-high prices, and the index investor, you, ends up holding that investor, you, ends up holding that investor, you, ends up holding that risk. Nobody can see the future, not me, risk. Nobody can see the future, not me, risk. Nobody can see the future, not me, not anybody, and maybe the fast lane not anybody, and maybe the fast lane not anybody, and maybe the fast lane here is savvy investors setting up the here is savvy investors setting up the here is savvy investors setting up the public as dumb exit liquidity that's public as dumb exit liquidity that's public as dumb exit liquidity that's going to get hammered, or it could also going to get hammered, or it could also going to get hammered, or it could also be the opening of a real opportunity to be the opening of a real opportunity to be the opening of a real opportunity to regular people sooner, allowing them to regular people sooner, allowing them to regular people sooner, allowing them to capture more of the upside. But I think capture more of the upside. But I think capture more of the upside. But I think people are right to be paranoid that people are right to be paranoid that people are right to be paranoid that this is the public being taken advantage this is the public being taken advantage this is the public being taken advantage of. Now, the good news is, if you don't of. Now, the good news is, if you don't of. Now, the good news is, if you don't like the way one index is handling the like the way one index is handling the like the way one index is handling the situation, there's always another. The situation, there's always another. The situation, there's always another. The S&P 500, to their massive credit, has S&P 500, to their massive credit, has S&P 500, to their massive credit, has refused to change the rules. So, until a refused to change the rules. So, until a refused to change the rules. So, until a company is profitable, among other company is profitable, among other company is profitable, among other qualifiers, the S&P 500 is not going to qualifiers, the S&P 500 is not going to qualifiers, the S&P 500 is not going to put them on the list. Knowing that, I put them on the list. Knowing that, I put them on the list. Knowing that, I understand why people have all kinds of understand why people have all kinds of understand why people have all kinds of question marks and suspicions around question marks and suspicions around question marks and suspicions around Elon Musk taking this company public at Elon Musk taking this company public at Elon Musk taking this company public at this moment. And it gets worse because this moment. And it gets worse because this moment. And it gets worse because there are still other traps that rig the there are still other traps that rig the there are still other traps that rig the economy against the average person. One economy against the average person. One economy against the average person. One more honorable mention goes directly to more honorable mention goes directly to more honorable mention goes directly to regulatory capture that leads to regulatory capture that leads to regulatory capture that leads to monopolistic practices. You can see this monopolistic practices. You can see this monopolistic practices. You can see this in the way that some of the biggest AI in the way that some of the biggest AI in the way that some of the biggest AI companies are begging for regulation. companies are begging for regulation. companies are begging for regulation. They wrap it up in safety concerns, but They wrap it up in safety concerns, but They wrap it up in safety concerns, but the reality is this is a tale as old as the reality is this is a tale as old as the reality is this is a tale as old as time. Companies, the big corporations time. Companies, the big corporations time. Companies, the big corporations that many people distrust, are trying to that many people distrust, are trying to that many people distrust, are trying to get the regulations put in place so that get the regulations put in place so that get the regulations put in place so that the incumbents can end up making it the incumbents can end up making it the incumbents can end up making it harder for startups to get in. The harder for startups to get in. The harder for startups to get in. The biggest players end up building a biggest players end up building a biggest players end up building a regulatory moat around themselves, and regulatory moat around themselves, and regulatory moat around themselves, and the buying public gets screwed out of the buying public gets screwed out of the buying public gets screwed out of better prices and innovation to remain better prices and innovation to remain better prices and innovation to remain competitive. Now, you put all of that competitive. Now, you put all of that competitive. Now, you put all of that together and it becomes very clear. This together and it becomes very clear. This together and it becomes very clear. This is a rigged game. The money is being is a rigged game. The money is being is a rigged game. The money is being debased, the federal debt grows and debased, the federal debt grows and debased, the federal debt grows and grows, the indexes get bent to pull grows, the indexes get bent to pull grows, the indexes get bent to pull retail in on hype, and the risks get put retail in on hype, and the risks get put retail in on hype, and the risks get put on the unsuspecting while the savvy get on the unsuspecting while the savvy get on the unsuspecting while the savvy get rich. High-risk AI debt is getting put rich. High-risk AI debt is getting put rich. High-risk AI debt is getting put into your retirement account to ensure a into your retirement account to ensure a into your retirement account to ensure a government bailout if there are times of government bailout if there are times of government bailout if there are times of stress, and the regulatory cost of entry stress, and the regulatory cost of entry stress, and the regulatory cost of entry ends up blocking out startups that would ends up blocking out startups that would ends up blocking out startups that would otherwise create competition and ensure otherwise create competition and ensure otherwise create competition and ensure that at least as the buying public, we that at least as the buying public, we that at least as the buying public, we all win. So, if you came here for proof all win. So, if you came here for proof all win. So, if you came here for proof that the system is broken, that the system is broken, that the system is broken, that's a speed run for you. Your fears that's a speed run for you. Your fears that's a speed run for you. Your fears are real and justified, and I understand are real and justified, and I understand are real and justified, and I understand why people are angry. But, none of that why people are angry. But, none of that why people are angry. But, none of that proves that a trillionaire is the proves that a trillionaire is the proves that a trillionaire is the problem. Now, it doesn't disprove it, problem. Now, it doesn't disprove it, problem. Now, it doesn't disprove it, either. So, welcome to part two. either. So, welcome to part two. either. So, welcome to part two. What is wealth and how is it created? What is wealth and how is it created? What is wealth and how is it created? Want you to picture a trillionaire. Now, Want you to picture a trillionaire. Now, Want you to picture a trillionaire. Now, you're probably seeing Scrooge McDuck, a you're probably seeing Scrooge McDuck, a you're probably seeing Scrooge McDuck, a vault just full of money, a mountain of vault just full of money, a mountain of vault just full of money, a mountain of cash that some guy is sitting on top of cash that some guy is sitting on top of cash that some guy is sitting on top of or swimming in, doing the backstroke or swimming in, doing the backstroke or swimming in, doing the backstroke through all of his gold coins. That through all of his gold coins. That through all of his gold coins. That image is the single biggest reason that image is the single biggest reason that image is the single biggest reason that people get this wrong because that vault people get this wrong because that vault people get this wrong because that vault doesn't exist. That money isn't real. doesn't exist. That money isn't real. doesn't exist. That money isn't real. Elon Musk does not have a trillion Elon Musk does not have a trillion Elon Musk does not have a trillion dollars. Almost all of that number is dollars. Almost all of that number is dollars. Almost all of that number is the theoretical value of the shares of the theoretical value of the shares of the theoretical value of the shares of the companies he owns, and those shares the companies he owns, and those shares the companies he owns, and those shares are only worth something because other are only worth something because other are only worth something because other people want to own a piece of what he people want to own a piece of what he people want to own a piece of what he built. If people stop wanting the shares built. If people stop wanting the shares built. If people stop wanting the shares for any reason, his theoretical value for any reason, his theoretical value for any reason, his theoretical value drops or just disappears. Therefore, the drops or just disappears. Therefore, the drops or just disappears. Therefore, the right way to think about a trillionaire right way to think about a trillionaire right way to think about a trillionaire or a billionaire whose wealth is the or a billionaire whose wealth is the or a billionaire whose wealth is the stock they own is as a scoreboard for stock they own is as a scoreboard for stock they own is as a scoreboard for how much value people believe they've how much value people believe they've how much value people believe they've created. created. created. We'll be right back to the show, but We'll be right back to the show, but We'll be right back to the show, but right now I want to talk about an right now I want to talk about an right now I want to talk about an important investment you're not making. important investment you're not making. important investment you're not making. You optimize your calendar, your team, You optimize your calendar, your team, You optimize your calendar, your team, your systems, but not the one asset that your systems, but not the one asset that your systems, but not the one asset that runs all of it, your brain. That is a runs all of it, your brain. That is a runs all of it, your brain. That is a huge liability. Your brain is your huge liability. Your brain is your huge liability. Your brain is your business, and right now most people are business, and right now most people are business, and right now most people are running their business on the cheapest running their business on the cheapest running their business on the cheapest fuel available. Caffeine spikes, [music] fuel available. Caffeine spikes, [music] fuel available. 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We will be right back to the show, but will be right back to the show, but will be right back to the show, but first let's talk about your standards. first let's talk about your standards. first let's talk about your standards. Most people have two sets of standards, Most people have two sets of standards, Most people have two sets of standards, the ones they talk about and then the the ones they talk about and then the the ones they talk about and then the ones they actually live by when nobody's ones they actually live by when nobody's ones they actually live by when nobody's watching. When you're busy, moving fast, watching. When you're busy, moving fast, watching. When you're busy, moving fast, and hungry, those standards get and hungry, those standards get and hungry, those standards get negotiated down. You grab whatever is negotiated down. You grab whatever is negotiated down. You grab whatever is closest, [music] and you tell yourself closest, [music] and you tell yourself closest, [music] and you tell yourself it doesn't count. But it does, your body it doesn't count. But it does, your body it doesn't count. But it does, your body is keeping score, trust me. That's why I is keeping score, trust me. That's why I is keeping score, trust me. That's why I keep Paleo Valley beef sticks on hand keep Paleo Valley beef sticks on hand keep Paleo Valley beef sticks on hand >> [music] >> [music] >> [music] >> whenever I'm at risk not being able to >> whenever I'm at risk not being able to >> whenever I'm at risk not being able to get whole food because I refuse to let get whole food because I refuse to let get whole food because I refuse to let hunger be the thing that breaks my hunger be the thing that breaks my hunger be the thing that breaks my standard. [music] These are 100% standard. [music] These are 100% standard. [music] These are 100% grass-fed and grass-finished beef. Zero grass-fed and grass-finished beef. Zero grass-fed and grass-finished beef. Zero sugar, no artificial preservatives, no sugar, no artificial preservatives, no sugar, no artificial preservatives, no soy, gluten, or corn. Just beef and soy, gluten, or corn. Just beef and soy, gluten, or corn. Just beef and organic spices with 6 g of protein per organic spices with 6 g of protein per organic spices with 6 g of protein per stick. When you're running between stick. When you're running between stick. When you're running between meetings, traveling, or just don't have meetings, traveling, or just don't have meetings, traveling, or just don't have time to think about food, reach for a time to think about food, reach for a time to think about food, reach for a Paleo Valley beef stick. Right now, you Paleo Valley beef stick. Right now, you Paleo Valley beef stick. Right now, you can get 30 beef sticks for just $36. can get 30 beef sticks for just $36. can get 30 beef sticks for just $36. That's real nutrition for barely over a That's real nutrition for barely over a That's real nutrition for barely over a dollar per stick. Click the link below dollar per stick. Click the link below dollar per stick. Click the link below to get your 30 beef sticks for just to get your 30 beef sticks for just to get your 30 beef sticks for just [music] $36. And now, let's get back to [music] $36. And now, let's get back to [music] $36. And now, let's get back to the show. the show. the show. In fact, that's a good place to start In fact, that's a good place to start In fact, that's a good place to start the definition of value. Economic value the definition of value. Economic value the definition of value. Economic value is very simple. You create something is very simple. You create something is very simple. You create something people want more than they want the people want more than they want the people want more than they want the money that you charge for it. Can be a money that you charge for it. Can be a money that you charge for it. Can be a product, a service, or a share. Doesn't product, a service, or a share. Doesn't product, a service, or a share. Doesn't matter. [music] Value is created matter. [music] Value is created matter. [music] Value is created literally out of thin air when something literally out of thin air when something literally out of thin air when something new enters the world that people want new enters the world that people want new enters the world that people want badly enough to pay for it. Could be a badly enough to pay for it. Could be a badly enough to pay for it. Could be a brand new thing that solves a problem brand new thing that solves a problem brand new thing that solves a problem nobody had previously solved. Think of nobody had previously solved. Think of nobody had previously solved. Think of the airline industry. For all of the airline industry. For all of the airline industry. For all of eternity, humans could not fly. Then we eternity, humans could not fly. Then we eternity, humans could not fly. Then we could. The Wright brothers captured some could. The Wright brothers captured some could. The Wright brothers captured some of the value, but the real wealth was of the value, but the real wealth was of the value, but the real wealth was generated by the people that made the generated by the people that made the generated by the people that made the innovation accessible to the masses. innovation accessible to the masses. innovation accessible to the masses. Proving that it could be done was cool, Proving that it could be done was cool, Proving that it could be done was cool, but the value is in the productization but the value is in the productization but the value is in the productization of the thing. In packing the innovation of the thing. In packing the innovation of the thing. In packing the innovation in something others could have or use. in something others could have or use. in something others could have or use. That's how you create value. Making That's how you create value. Making That's how you create value. Making something people want. Typically by something people want. Typically by something people want. Typically by solving a problem. Shares turn money solving a problem. Shares turn money solving a problem. Shares turn money into money-making machines as one into money-making machines as one into money-making machines as one example. Shoes keep your feet from example. Shoes keep your feet from example. Shoes keep your feet from hurting. Packaged food makes it much hurting. Packaged food makes it much hurting. Packaged food makes it much easier to avoid starving to death. Video easier to avoid starving to death. Video easier to avoid starving to death. Video games entertain you and make your free games entertain you and make your free games entertain you and make your free time more enjoyable. Doctors keep you time more enjoyable. Doctors keep you time more enjoyable. Doctors keep you healthier. Trainers get you strong. So healthier. Trainers get you strong. So healthier. Trainers get you strong. So on and so forth, but all of them are on and so forth, but all of them are on and so forth, but all of them are examples of how value is created. The examples of how value is created. The examples of how value is created. The more value you create for more people, more value you create for more people, more value you create for more people, the more wealth you can accumulate if the more wealth you can accumulate if the more wealth you can accumulate if you own that company. But there is a you own that company. But there is a you own that company. But there is a part of the process that confuses the part of the process that confuses the part of the process that confuses the life out of people. When you create life out of people. When you create life out of people. When you create value, value, value, you're not necessarily taking a slice of you're not necessarily taking a slice of you're not necessarily taking a slice of somebody else's pie. Now, you might be. somebody else's pie. Now, you might be. somebody else's pie. Now, you might be. Competition is certainly part of the Competition is certainly part of the Competition is certainly part of the process. Some people are going to win process. Some people are going to win process. Some people are going to win and some people are going to lose. But and some people are going to lose. But and some people are going to lose. But when new products, services, or when new products, services, or when new products, services, or efficiencies are created, new money can efficiencies are created, new money can efficiencies are created, new money can be conjured out of thin air by the Fed be conjured out of thin air by the Fed be conjured out of thin air by the Fed and injected into the system without and injected into the system without and injected into the system without causing inflation, as long as it's kept causing inflation, as long as it's kept causing inflation, as long as it's kept in proportion to the new value that's in proportion to the new value that's in proportion to the new value that's been created. So you've got bad money been created. So you've got bad money been created. So you've got bad money printing that comes from deficit printing that comes from deficit printing that comes from deficit spending, and you've got good value spending, and you've got good value spending, and you've got good value creation that can lead to new money creation that can lead to new money creation that can lead to new money through innovation. Now, I'm not going through innovation. Now, I'm not going through innovation. Now, I'm not going to bog us down by going into too much to bog us down by going into too much to bog us down by going into too much detail here, but failing to understand detail here, but failing to understand detail here, but failing to understand that is why so many people become that is why so many people become that is why so many people become convinced that a billionaire, or now a convinced that a billionaire, or now a convinced that a billionaire, or now a trillionaire, must have done something trillionaire, must have done something trillionaire, must have done something illegal. But it's just not true. It's illegal. But it's just not true. It's illegal. But it's just not true. It's just a fundamental misunderstanding of just a fundamental misunderstanding of just a fundamental misunderstanding of how money creation actually works. how money creation actually works. how money creation actually works. Inflation occurs when more money chases Inflation occurs when more money chases Inflation occurs when more money chases the same amount of goods and services. the same amount of goods and services. the same amount of goods and services. But if you create more goods and But if you create more goods and But if you create more goods and services, more things for people to buy services, more things for people to buy services, more things for people to buy that they actually want, you can either that they actually want, you can either that they actually want, you can either watch things get cheaper and people are watch things get cheaper and people are watch things get cheaper and people are thus wealthier because they can afford thus wealthier because they can afford thus wealthier because they can afford more stuff, or you can, in proportion, more stuff, or you can, in proportion, more stuff, or you can, in proportion, inject more money into the system, inject more money into the system, inject more money into the system, spurring growth, and people get spurring growth, and people get spurring growth, and people get wealthier because they literally have wealthier because they literally have wealthier because they literally have more money, but prices have not gone up. more money, but prices have not gone up. more money, but prices have not gone up. This is how a society at large gets This is how a society at large gets This is how a society at large gets wealthier. There is literally more money wealthier. There is literally more money wealthier. There is literally more money to go around and more cool things that to go around and more cool things that to go around and more cool things that people want. People are actually getting people want. People are actually getting people want. People are actually getting richer in real terms when it's led by richer in real terms when it's led by richer in real terms when it's led by innovation. When that happens, the innovation. When that happens, the innovation. When that happens, the person that created that new value has person that created that new value has person that created that new value has literally made the pie bigger. And if literally made the pie bigger. And if literally made the pie bigger. And if they've made the pie bigger by a lot, they've made the pie bigger by a lot, they've made the pie bigger by a lot, then they're going to get a lot richer. then they're going to get a lot richer. then they're going to get a lot richer. Before SpaceX reusable rockets simply Before SpaceX reusable rockets simply Before SpaceX reusable rockets simply did not exist. Before Starlink, you did not exist. Before Starlink, you did not exist. Before Starlink, you couldn't get high-speed internet in the couldn't get high-speed internet in the couldn't get high-speed internet in the middle of the ocean, on a farm, or in a middle of the ocean, on a farm, or in a middle of the ocean, on a farm, or in a war zone. Elon took raw materials and war zone. Elon took raw materials and war zone. Elon took raw materials and turned them into things that didn't turned them into things that didn't turned them into things that didn't exist before. He created value, things exist before. He created value, things exist before. He created value, things that people really wanted. He didn't that people really wanted. He didn't that people really wanted. He didn't move wealth from one pocket to another. move wealth from one pocket to another. move wealth from one pocket to another. He created value where there was no He created value where there was no He created value where there was no value before. The pie legitimately value before. The pie legitimately value before. The pie legitimately enlarged. The pie literally got bigger. enlarged. The pie literally got bigger. enlarged. The pie literally got bigger. And the value of the slice that he owns, And the value of the slice that he owns, And the value of the slice that he owns, now that that pie is much larger, has now that that pie is much larger, has now that that pie is much larger, has gone way up as a result of the things gone way up as a result of the things gone way up as a result of the things that he did. Now, in response to this, I that he did. Now, in response to this, I that he did. Now, in response to this, I know people will often say, "Wait a know people will often say, "Wait a know people will often say, "Wait a second. Elon did not create that value. second. Elon did not create that value. second. Elon did not create that value. He received government subsidies. That's He received government subsidies. That's He received government subsidies. That's where the value was created." Or they'll where the value was created." Or they'll where the value was created." Or they'll say, "Wait a second. Elon did not create say, "Wait a second. Elon did not create say, "Wait a second. Elon did not create that value. His employees did. Elon is that value. His employees did. Elon is that value. His employees did. Elon is effectively just stealing the value effectively just stealing the value effectively just stealing the value created by other people." Now, the created by other people." Now, the created by other people." Now, the ultimate test of the veracity of those ultimate test of the veracity of those ultimate test of the veracity of those claims is to say, "If that's true, go claims is to say, "If that's true, go claims is to say, "If that's true, go replicate Elon's success." What you will replicate Elon's success." What you will replicate Elon's success." What you will quickly discover is that despite you quickly discover is that despite you quickly discover is that despite you also living in the same country and also also living in the same country and also also living in the same country and also having access to the same government and having access to the same government and having access to the same government and the same pool of talent, you will be the same pool of talent, you will be the same pool of talent, you will be unable to do what Elon has done. And unable to do what Elon has done. And unable to do what Elon has done. And that's because builders, the people who that's because builders, the people who that's because builders, the people who create value out of nothing, the ones create value out of nothing, the ones create value out of nothing, the ones who can turn a zero to a one, are not who can turn a zero to a one, are not who can turn a zero to a one, are not random people who happen to be in the random people who happen to be in the random people who happen to be in the right place at the right time. They have right place at the right time. They have right place at the right time. They have a certain set of skills that the world a certain set of skills that the world a certain set of skills that the world values very highly. Now, all of us are values very highly. Now, all of us are values very highly. Now, all of us are subject to being born in the right subject to being born in the right subject to being born in the right country or getting the timing right. I'm country or getting the timing right. I'm country or getting the timing right. I'm not denying that there's an element of not denying that there's an element of not denying that there's an element of luck, but when you see somebody succeed luck, but when you see somebody succeed luck, but when you see somebody succeed at that level over and over and over, at that level over and over and over, at that level over and over and over, chalking it up merely to luck is to miss chalking it up merely to luck is to miss chalking it up merely to luck is to miss the point of how value is created in the the point of how value is created in the the point of how value is created in the first place, which robs you of your own first place, which robs you of your own first place, which robs you of your own agency because there is so much that all agency because there is so much that all agency because there is so much that all of us can do. Now, there's a great scene of us can do. Now, there's a great scene of us can do. Now, there's a great scene in the movie Steve Jobs by Aaron Sorkin in the movie Steve Jobs by Aaron Sorkin in the movie Steve Jobs by Aaron Sorkin where Apple co-founder Steve Wozniak, where Apple co-founder Steve Wozniak, where Apple co-founder Steve Wozniak, the real-life engineer who's played in the real-life engineer who's played in the real-life engineer who's played in the movie by Seth Rogen, asks Jobs in the movie by Seth Rogen, asks Jobs in the movie by Seth Rogen, asks Jobs in disgust, disgust, disgust, >> What do you do? >> What do you do? >> What do you do? >> He says that everything Jobs is known >> He says that everything Jobs is known >> He says that everything Jobs is known for was created by someone else, an for was created by someone else, an for was created by someone else, an argument that we hear about argument that we hear about argument that we hear about entrepreneurs all the time. And Jobs entrepreneurs all the time. And Jobs entrepreneurs all the time. And Jobs [music] says coldly, [music] says coldly, [music] says coldly, >> I play the orchestra, and you're a good >> I play the orchestra, and you're a good >> I play the orchestra, and you're a good musician, you sit right there. You're musician, you sit right there. You're musician, you sit right there. You're the best in your role. the best in your role. the best in your role. >> Now, it's obviously a thing to >> Now, it's obviously a thing to >> Now, it's obviously a thing to say, but it gets at a truth that people say, but it gets at a truth that people say, but it gets at a truth that people don't want to accept. You haven't don't want to accept. You haven't don't want to accept. You haven't created value until you've created created value until you've created created value until you've created something that people actually want more something that people actually want more something that people actually want more than they want their money. The world is than they want their money. The world is than they want their money. The world is littered with phenomenally engineered littered with phenomenally engineered littered with phenomenally engineered products by incredibly brilliant people products by incredibly brilliant people products by incredibly brilliant people that ultimately failed because they that ultimately failed because they that ultimately failed because they couldn't do the final magic trick of couldn't do the final magic trick of couldn't do the final magic trick of turning it into a product that people turning it into a product that people turning it into a product that people wanted. Beta lost to VHS, even though it wanted. Beta lost to VHS, even though it wanted. Beta lost to VHS, even though it was a better technology. Kodak's digital was a better technology. Kodak's digital was a better technology. Kodak's digital camera lost to everyone, even though camera lost to everyone, even though camera lost to everyone, even though they were first. The DeLorean is an they were first. The DeLorean is an they were first. The DeLorean is an absolutely iconic car, but the company absolutely iconic car, but the company absolutely iconic car, but the company still went bankrupt. Engineers at Sony still went bankrupt. Engineers at Sony still went bankrupt. Engineers at Sony invented the first MP3 player, but they invented the first MP3 player, but they invented the first MP3 player, but they got buried by the iPod. Atari got buried by the iPod. Atari got buried by the iPod. Atari essentially invented home gaming, but essentially invented home gaming, but essentially invented home gaming, but got obliterated by Nintendo. And God got obliterated by Nintendo. And God got obliterated by Nintendo. And God only knows how many incredible feats of only knows how many incredible feats of only knows how many incredible feats of engineering have come and gone, but engineering have come and gone, but engineering have come and gone, but failed even register in the public failed even register in the public failed even register in the public consciousness. Now, this is not to take consciousness. Now, this is not to take consciousness. Now, this is not to take anything away from the incredible people anything away from the incredible people anything away from the incredible people who make up the mass of a company, the who make up the mass of a company, the who make up the mass of a company, the employees who show up every day, and employees who show up every day, and employees who show up every day, and they work themselves applying their they work themselves applying their they work themselves applying their talent and intelligence to the goals of talent and intelligence to the goals of talent and intelligence to the goals of the company. Entrepreneurs would not be the company. Entrepreneurs would not be the company. Entrepreneurs would not be able to scale without them, but it able to scale without them, but it able to scale without them, but it becomes a question of risk and reward becomes a question of risk and reward becomes a question of risk and reward and the ability to generate tangible and the ability to generate tangible and the ability to generate tangible value with your talents. There are value with your talents. There are value with your talents. There are engineers making a million-dollar plus engineers making a million-dollar plus engineers making a million-dollar plus salary at some of the large AI companies salary at some of the large AI companies salary at some of the large AI companies right now. And they're going to collect right now. And they're going to collect right now. And they're going to collect that check whether the company succeeds that check whether the company succeeds that check whether the company succeeds or fails. The welder at SpaceX is going or fails. The welder at SpaceX is going or fails. The welder at SpaceX is going to get paid whether the rocket flies or to get paid whether the rocket flies or to get paid whether the rocket flies or the company goes bankrupt. His wage the company goes bankrupt. His wage the company goes bankrupt. His wage comes first, and it comes guaranteed. comes first, and it comes guaranteed. comes first, and it comes guaranteed. The person holding equity gets paid last The person holding equity gets paid last The person holding equity gets paid last and gets wiped out first. That's the and gets wiped out first. That's the and gets wiped out first. That's the trade. Labor takes the sure thing, the trade. Labor takes the sure thing, the trade. Labor takes the sure thing, the owner takes the risk of walking away owner takes the risk of walking away owner takes the risk of walking away with nothing. You get the upside because with nothing. You get the upside because with nothing. You get the upside because you risked the downside. Elon's you risked the downside. Elon's you risked the downside. Elon's compensation package, for instance, pays compensation package, for instance, pays compensation package, for instance, pays out nothing, zero, zip, zilch, unless he out nothing, zero, zip, zilch, unless he out nothing, zero, zip, zilch, unless he is absurdly successful. So, he only wins is absurdly successful. So, he only wins is absurdly successful. So, he only wins if the other shareholders win. And an if the other shareholders win. And an if the other shareholders win. And an insane number of his employees are insane number of his employees are insane number of his employees are shareholders. We've spent so long shareholders. We've spent so long shareholders. We've spent so long vilifying entrepreneurs in our society vilifying entrepreneurs in our society vilifying entrepreneurs in our society that we've forgotten how rare that skill that we've forgotten how rare that skill that we've forgotten how rare that skill set actually is, with or without set actually is, with or without set actually is, with or without subsidies. But, let's look at the subsidies. But, let's look at the subsidies. But, let's look at the government involvement directly. Around government involvement directly. Around government involvement directly. Around 38 billion dollars in contracts, loans, 38 billion dollars in contracts, loans, 38 billion dollars in contracts, loans, and credits have gone to Elon's and credits have gone to Elon's and credits have gone to Elon's companies over 20 years. Now, it sounds companies over 20 years. Now, it sounds companies over 20 years. Now, it sounds pretty damning until you look at what pretty damning until you look at what pretty damning until you look at what that money actually is. The big loan to that money actually is. The big loan to that money actually is. The big loan to Tesla got paid back early and with Tesla got paid back early and with Tesla got paid back early and with interest, so taxpayers actually made interest, so taxpayers actually made interest, so taxpayers actually made money and citizens were able to keep money and citizens were able to keep money and citizens were able to keep their jobs. The regulatory credits their jobs. The regulatory credits their jobs. The regulatory credits helped to incentivize the transition helped to incentivize the transition helped to incentivize the transition from gas to electric. Elon didn't reach from gas to electric. Elon didn't reach from gas to electric. Elon didn't reach into taxpayers' pockets and take the into taxpayers' pockets and take the into taxpayers' pockets and take the money [music] out. People voted for money [music] out. People voted for money [music] out. People voted for politicians that had a green agenda, and politicians that had a green agenda, and politicians that had a green agenda, and Tesla was simply the company that Tesla was simply the company that Tesla was simply the company that followed the regulatory incentives followed the regulatory incentives followed the regulatory incentives provided by the voters. And NASA didn't provided by the voters. And NASA didn't provided by the voters. And NASA didn't hand SpaceX a gift, it paid SpaceX to do hand SpaceX a gift, it paid SpaceX to do hand SpaceX a gift, it paid SpaceX to do what NASA couldn't or wouldn't. SpaceX what NASA couldn't or wouldn't. SpaceX what NASA couldn't or wouldn't. SpaceX managed to drive the cost of rocket managed to drive the cost of rocket managed to drive the cost of rocket launches way down, a cost structure that launches way down, a cost structure that launches way down, a cost structure that the incredible engineers at NASA had the incredible engineers at NASA had the incredible engineers at NASA had decades to address, but didn't or decades to address, but didn't or decades to address, but didn't or couldn't. As Charlie Munger said, "Show couldn't. As Charlie Munger said, "Show couldn't. As Charlie Munger said, "Show me the incentives and I'll show you the me the incentives and I'll show you the me the incentives and I'll show you the outcome." Entrepreneurs will follow outcome." Entrepreneurs will follow outcome." Entrepreneurs will follow governmental incentives. That's why governmental incentives. That's why governmental incentives. That's why politicians create the incentives in the politicians create the incentives in the politicians create the incentives in the first place. To then be mad that people first place. To then be mad that people first place. To then be mad that people take advantage of them is nonsensical. take advantage of them is nonsensical. take advantage of them is nonsensical. If you don't want the government to If you don't want the government to If you don't want the government to offer incentives, make sure you let your offer incentives, make sure you let your offer incentives, make sure you let your congressman know with your words and congressman know with your words and congressman know with your words and your vote. Additionally, we're competing your vote. Additionally, we're competing your vote. Additionally, we're competing in a hyper-competitive global economy. in a hyper-competitive global economy. in a hyper-competitive global economy. If we want to make sure that we're If we want to make sure that we're If we want to make sure that we're thriving as a society, we're going to thriving as a society, we're going to thriving as a society, we're going to need policies that keep us competitive. need policies that keep us competitive. need policies that keep us competitive. Now, personally, I think there is way Now, personally, I think there is way Now, personally, I think there is way too much money in politics, and I want too much money in politics, and I want too much money in politics, and I want far less government involvement in the far less government involvement in the far less government involvement in the economy. But unless we want to wall economy. But unless we want to wall economy. But unless we want to wall ourselves off from the world, become ourselves off from the world, become ourselves off from the world, become isolationist, and leave churches and isolationist, and leave churches and isolationist, and leave churches and families to carry everyone who falls families to carry everyone who falls families to carry everyone who falls behind, we will need some reasonable behind, we will need some reasonable behind, we will need some reasonable amount of subsidies to maximize amount of subsidies to maximize amount of subsidies to maximize employment and steer industry. To employment and steer industry. To employment and steer industry. To compete against countries like China, compete against countries like China, compete against countries like China, who pour subsidies into the areas that who pour subsidies into the areas that who pour subsidies into the areas that they want to win globally in, we will they want to win globally in, we will they want to win globally in, we will need to point capital at things that need to point capital at things that need to point capital at things that matter for our national security, as but matter for our national security, as but matter for our national security, as but one example. If we don't like that the one example. If we don't like that the one example. If we don't like that the government is currently offering government is currently offering government is currently offering incentives to green energy and the space incentives to green energy and the space incentives to green energy and the space race, that's fine. But don't call the race, that's fine. But don't call the race, that's fine. But don't call the entrepreneurs who follow the incentives entrepreneurs who follow the incentives entrepreneurs who follow the incentives grifters. They're literally doing what grifters. They're literally doing what grifters. They're literally doing what we've told them to do. Another argument we've told them to do. Another argument we've told them to do. Another argument is that the stock price isn't about is that the stock price isn't about is that the stock price isn't about value creation, it's just about hype. value creation, it's just about hype. value creation, it's just about hype. There's no doubt that hype is a part of There's no doubt that hype is a part of There's no doubt that hype is a part of what makes something valuable. That is what makes something valuable. That is what makes something valuable. That is just how the human mind works. We like just how the human mind works. We like just how the human mind works. We like to get excited, and that is certainly to get excited, and that is certainly to get excited, and that is certainly part of the price that we'll pay. part of the price that we'll pay. part of the price that we'll pay. Apple's iPod wasn't better than Sony's Apple's iPod wasn't better than Sony's Apple's iPod wasn't better than Sony's MP3 players. In fact, at the technical MP3 players. In fact, at the technical MP3 players. In fact, at the technical specs level, they were worse. specs level, they were worse. specs level, they were worse. But owning an iPod carried cultural But owning an iPod carried cultural But owning an iPod carried cultural value, and that is worth a lot to value, and that is worth a lot to value, and that is worth a lot to people, whether we think it should be or people, whether we think it should be or people, whether we think it should be or not. Jobs and Elon are extraordinarily not. Jobs and Elon are extraordinarily not. Jobs and Elon are extraordinarily good at building that excitement, but it good at building that excitement, but it good at building that excitement, but it doesn't mean that the products doesn't mean that the products doesn't mean that the products themselves aren't valuable and that the themselves aren't valuable and that the themselves aren't valuable and that the companies themselves aren't valuable. companies themselves aren't valuable. companies themselves aren't valuable. They are. They are. They are. Plus, Elon's companies make products Plus, Elon's companies make products Plus, Elon's companies make products that people not only want, but in the that people not only want, but in the that people not only want, but in the case of SpaceX, they're doing something case of SpaceX, they're doing something case of SpaceX, they're doing something that no other company or product on that no other company or product on that no other company or product on planet Earth has ever been able to planet Earth has ever been able to planet Earth has ever been able to replicate. The same with Starlink. Tesla replicate. The same with Starlink. Tesla replicate. The same with Starlink. Tesla has the most competition, but it was has the most competition, but it was has the most competition, but it was still the first company to make electric still the first company to make electric still the first company to make electric cars desirable and people are betting cars desirable and people are betting cars desirable and people are betting that Elon can continue his unprecedented that Elon can continue his unprecedented that Elon can continue his unprecedented string of successes. So, the value is string of successes. So, the value is string of successes. So, the value is real. Elon has truly made the pie real. Elon has truly made the pie real. Elon has truly made the pie bigger. Now, the question becomes has he bigger. Now, the question becomes has he bigger. Now, the question becomes has he made it a trillion dollars bigger? Has made it a trillion dollars bigger? Has made it a trillion dollars bigger? Has he created that much value? The people he created that much value? The people he created that much value? The people that are angry would definitely say no, that are angry would definitely say no, that are angry would definitely say no, but that's because they've got the cause but that's because they've got the cause but that's because they've got the cause and effect backwards. Go back to the 30% and effect backwards. Go back to the 30% and effect backwards. Go back to the 30% inflation in the last six years inflation in the last six years inflation in the last six years statistic. When the government debases statistic. When the government debases statistic. When the government debases your money, every asset gets repriced your money, every asset gets repriced your money, every asset gets repriced higher. Not because it got better or higher. Not because it got better or higher. Not because it got better or more valuable overnight, but because the more valuable overnight, but because the more valuable overnight, but because the dollars measuring that value got weaker dollars measuring that value got weaker dollars measuring that value got weaker overnight. You take away the deficit overnight. You take away the deficit overnight. You take away the deficit spending and the money printing and Elon spending and the money printing and Elon spending and the money printing and Elon wouldn't be a trillionaire even with all wouldn't be a trillionaire even with all wouldn't be a trillionaire even with all the same level of value, hype and the same level of value, hype and the same level of value, hype and excitement, the subsidies, all of it. If excitement, the subsidies, all of it. If excitement, the subsidies, all of it. If we don't want trillionaires to exist, we we don't want trillionaires to exist, we we don't want trillionaires to exist, we don't need to break the entire economy don't need to break the entire economy don't need to break the entire economy to stop it as Bernie, AOC and Mondaire to stop it as Bernie, AOC and Mondaire to stop it as Bernie, AOC and Mondaire would like to do. We just need to stop would like to do. We just need to stop would like to do. We just need to stop deficit spending and money printing deficit spending and money printing deficit spending and money printing which causes the price inflation. So, which causes the price inflation. So, which causes the price inflation. So, who should you actually be mad at? who should you actually be mad at? who should you actually be mad at? And what do you do about it? So, here's And what do you do about it? So, here's And what do you do about it? So, here's where we actually are. The system is where we actually are. The system is where we actually are. The system is rigged. The raw numbers have gotten rigged. The raw numbers have gotten rigged. The raw numbers have gotten silly because of inflation and a real silly because of inflation and a real silly because of inflation and a real human being is getting historically human being is getting historically human being is getting historically almost unimaginably wealthy inside of almost unimaginably wealthy inside of almost unimaginably wealthy inside of this distorted system that is leaving so this distorted system that is leaving so this distorted system that is leaving so many people behind. Which leaves us with many people behind. Which leaves us with many people behind. Which leaves us with one real question to answer. Do we burn one real question to answer. Do we burn one real question to answer. Do we burn this whole thing down and start over? Do this whole thing down and start over? Do this whole thing down and start over? Do we fix it? we fix it? we fix it? Or do we learn to win inside of it? With Or do we learn to win inside of it? With Or do we learn to win inside of it? With that in mind, welcome to part three, how that in mind, welcome to part three, how that in mind, welcome to part three, how to deal with a rigged game. In 1820, to deal with a rigged game. In 1820, to deal with a rigged game. In 1820, around 80% of the people on planet Earth around 80% of the people on planet Earth around 80% of the people on planet Earth lived in extreme poverty. Today, it's lived in extreme poverty. Today, it's lived in extreme poverty. Today, it's under 10%. For nearly all of human under 10%. For nearly all of human under 10%. For nearly all of human history, no society on Earth had ever history, no society on Earth had ever history, no society on Earth had ever produced sustained economic growth. produced sustained economic growth. produced sustained economic growth. Everyone was poor on every continent, Everyone was poor on every continent, Everyone was poor on every continent, across every century. It was just across every century. It was just across every century. It was just grinding universal poverty as far as the grinding universal poverty as far as the grinding universal poverty as far as the eye could see. The TV show alone should eye could see. The TV show alone should eye could see. The TV show alone should be required viewing so that people can be required viewing so that people can be required viewing so that people can see firsthand just how hard it is to see firsthand just how hard it is to see firsthand just how hard it is to scrape together enough food and shelter scrape together enough food and shelter scrape together enough food and shelter to simply stay alive. And how the people to simply stay alive. And how the people to simply stay alive. And how the people who thrive universally rely on who thrive universally rely on who thrive universally rely on innovation to get a better result from innovation to get a better result from innovation to get a better result from their time and energy. Societies, as a their time and energy. Societies, as a their time and energy. Societies, as a product of evolution at the level of product of evolution at the level of product of evolution at the level of civilization, have found over and over civilization, have found over and over civilization, have found over and over again to pull people out of desperate, again to pull people out of desperate, again to pull people out of desperate, grinding poverty, you must do things to grinding poverty, you must do things to grinding poverty, you must do things to foster innovation. That's going to foster innovation. That's going to foster innovation. That's going to create inequality as some people are create inequality as some people are create inequality as some people are simply better at the task than others. simply better at the task than others. simply better at the task than others. But inequality isn't an anomaly that But inequality isn't an anomaly that But inequality isn't an anomaly that requires explanation or something that requires explanation or something that requires explanation or something that will serve us from trying to eradicate. will serve us from trying to eradicate. will serve us from trying to eradicate. Poverty is the thing that people should Poverty is the thing that people should Poverty is the thing that people should focus on. Poverty is the constant. What focus on. Poverty is the constant. What focus on. Poverty is the constant. What beggars belief and what requires an beggars belief and what requires an beggars belief and what requires an explanation and what needs to be explanation and what needs to be explanation and what needs to be fostered is the engine of prosperity. fostered is the engine of prosperity. fostered is the engine of prosperity. That's what we have to understand and That's what we have to understand and That's what we have to understand and protect. That's what's at the center of protect. That's what's at the center of protect. That's what's at the center of this entire video. How do we this entire video. How do we this entire video. How do we intentionally create value? When we fail intentionally create value? When we fail intentionally create value? When we fail to understand what actually causes the to understand what actually causes the to understand what actually causes the creation of value, we end up looking at creation of value, we end up looking at creation of value, we end up looking at a trillionaire and we see a crime. But a trillionaire and we see a crime. But a trillionaire and we see a crime. But it only looks like that from the safety it only looks like that from the safety it only looks like that from the safety of a society that's born of innovation. of a society that's born of innovation. of a society that's born of innovation. People making things other people want, People making things other people want, People making things other people want, building businesses that make life building businesses that make life building businesses that make life easier, and scaling those things up easier, and scaling those things up easier, and scaling those things up through capital aggregation and improved through capital aggregation and improved through capital aggregation and improved efficiencies creates an incredible efficiencies creates an incredible efficiencies creates an incredible world. And this engine of prosperity has world. And this engine of prosperity has world. And this engine of prosperity has allowed us to pull so many humans up out allowed us to pull so many humans up out allowed us to pull so many humans up out of the dirt, and we have lived in this of the dirt, and we have lived in this of the dirt, and we have lived in this prosperity for so long that we're prosperity for so long that we're prosperity for so long that we're confused, and we think it is a confused, and we think it is a confused, and we think it is a fundamental law of nature that it will fundamental law of nature that it will fundamental law of nature that it will always be here, and it is simply about always be here, and it is simply about always be here, and it is simply about distributing it in an appropriate distributing it in an appropriate distributing it in an appropriate manner. But, the reality is manner. But, the reality is manner. But, the reality is >> [music] >> [music] >> [music] >> that innovation engine is the most >> that innovation engine is the most >> that innovation engine is the most powerful force on Earth for lifting powerful force on Earth for lifting powerful force on Earth for lifting people out of poverty that has ever people out of poverty that has ever people out of poverty that has ever existed, but it is rare, and it is existed, but it is rare, and it is existed, but it is rare, and it is fragile, and it's best understood as fragile, and it's best understood as fragile, and it's best understood as being nearly a miracle. Anyone who looks being nearly a miracle. Anyone who looks being nearly a miracle. Anyone who looks at a trillionaire and screams thief puts at a trillionaire and screams thief puts at a trillionaire and screams thief puts the entire prosperity engine at risk by the entire prosperity engine at risk by the entire prosperity engine at risk by failing to understand failing to understand failing to understand that that person has made the pie that that person has made the pie that that person has made the pie bigger. And the thing that took us from bigger. And the thing that took us from bigger. And the thing that took us from millionaires to billionaires and now millionaires to billionaires and now millionaires to billionaires and now trillionaires isn't greed, it's trillionaires isn't greed, it's trillionaires isn't greed, it's inflation. Now, that doesn't mean that inflation. Now, that doesn't mean that inflation. Now, that doesn't mean that there isn't greed, and it doesn't mean there isn't greed, and it doesn't mean there isn't greed, and it doesn't mean that the system isn't rigged. We've gone that the system isn't rigged. We've gone that the system isn't rigged. We've gone through that. And it doesn't mean that through that. And it doesn't mean that through that. And it doesn't mean that we don't have to protect ourselves we don't have to protect ourselves we don't have to protect ourselves against the ultra-wealthy from using against the ultra-wealthy from using against the ultra-wealthy from using their money to co-opt the political their money to co-opt the political their money to co-opt the political system. They most certainly will, but system. They most certainly will, but system. They most certainly will, but these are separate phenomena, and if we these are separate phenomena, and if we these are separate phenomena, and if we don't keep them separate, we will burn don't keep them separate, we will burn don't keep them separate, we will burn our entire house down trying to get rid our entire house down trying to get rid our entire house down trying to get rid of our rat problem. The fire will of our rat problem. The fire will of our rat problem. The fire will disperse the rats, it may even kill some disperse the rats, it may even kill some disperse the rats, it may even kill some of them, but it will destroy every of them, but it will destroy every of them, but it will destroy every single thing that's good. If people single thing that's good. If people single thing that's good. If people don't understand how good we have it don't understand how good we have it don't understand how good we have it right now, even in this horrifically right now, even in this horrifically right now, even in this horrifically gilded age, we will break the engine of gilded age, we will break the engine of gilded age, we will break the engine of prosperity and rapidly find out just how prosperity and rapidly find out just how prosperity and rapidly find out just how bad things can get. When you have a bad things can get. When you have a bad things can get. When you have a system that's as flawed as ours that has system that's as flawed as ours that has system that's as flawed as ours that has soaked us in safety and prosperity for soaked us in safety and prosperity for soaked us in safety and prosperity for as long as ours has, campaigning on as long as ours has, campaigning on as long as ours has, campaigning on burning it all down is the easy answer. burning it all down is the easy answer. burning it all down is the easy answer. Seize it all, redistribute it. That's Seize it all, redistribute it. That's Seize it all, redistribute it. That's the call you're going to hear from a lot the call you're going to hear from a lot the call you're going to hear from a lot of people. But that method of fixing the of people. But that method of fixing the of people. But that method of fixing the system has been tried many, many times system has been tried many, many times system has been tried many, many times before. And it is as predictably [music] before. And it is as predictably [music] before. And it is as predictably [music] destructive as a woman who stops destructive as a woman who stops destructive as a woman who stops unwanted advances by pouring acid on her unwanted advances by pouring acid on her unwanted advances by pouring acid on her own face. It solves one problem, but own face. It solves one problem, but own face. It solves one problem, but creates another that is much, much worse creates another that is much, much worse creates another that is much, much worse and self-destructive. If we don't want and self-destructive. If we don't want and self-destructive. If we don't want there to be trillionaires, great. I get there to be trillionaires, great. I get there to be trillionaires, great. I get it. Stop deficit spending. But no one it. Stop deficit spending. But no one it. Stop deficit spending. But no one should want to burn our all too flawed should want to burn our all too flawed should want to burn our all too flawed system down because it has flaws. Not system down because it has flaws. Not system down because it has flaws. Not when the [music] fix is so when the [music] fix is so when the [music] fix is so straightforward. And that even if we straightforward. And that even if we straightforward. And that even if we can't fix it, we can still learn to can't fix it, we can still learn to can't fix it, we can still learn to succeed inside of it. The particular succeed inside of it. The particular succeed inside of it. The particular brand of corruption we have now is one brand of corruption we have now is one brand of corruption we have now is one in which everyone can still win. Some in which everyone can still win. Some in which everyone can still win. Some will always win more than others. That will always win more than others. That will always win more than others. That problem is never going to go away. But problem is never going to go away. But problem is never going to go away. But the system is rigged in a way where real the system is rigged in a way where real the system is rigged in a way where real value must be created for the elite to value must be created for the elite to value must be created for the elite to win. The people trying to rig the game win. The people trying to rig the game win. The people trying to rig the game have to create something where everybody have to create something where everybody have to create something where everybody can win in order for them to succeed. can win in order for them to succeed. can win in order for them to succeed. And the only way to lose is to not play And the only way to lose is to not play And the only way to lose is to not play the game. Think back to Wan, the welder the game. Think back to Wan, the welder the game. Think back to Wan, the welder at SpaceX. Wan didn't inherit anything. at SpaceX. Wan didn't inherit anything. at SpaceX. Wan didn't inherit anything. He didn't win a lottery. He did two He didn't win a lottery. He did two He didn't win a lottery. He did two simple things that are available to simple things that are available to simple things that are available to almost anyone in this country who's almost anyone in this country who's almost anyone in this country who's paying [music] attention. First, he made paying [music] attention. First, he made paying [music] attention. First, he made himself more valuable by learning to himself more valuable by learning to himself more valuable by learning to weld. He elevated his skill set. weld. He elevated his skill set. weld. He elevated his skill set. And then second, he became an owner. He And then second, he became an owner. He And then second, he became an owner. He wasn't some super savvy insider wasn't some super savvy insider wasn't some super savvy insider investor. At first, he said he didn't investor. At first, he said he didn't investor. At first, he said he didn't even know what SpaceX was all about. His even know what SpaceX was all about. His even know what SpaceX was all about. His friend just told him about the welding friend just told him about the welding friend just told him about the welding job. But the only time he sold any of job. But the only time he sold any of job. But the only time he sold any of his shares his shares his shares was to start his own business. He didn't was to start his own business. He didn't was to start his own business. He didn't cash out the first second that he could. cash out the first second that he could. cash out the first second that he could. He held on while the stock became worth He held on while the stock became worth He held on while the stock became worth more and more. Even though that meant he more and more. Even though that meant he more and more. Even though that meant he had to take a bigger risk. Our economy had to take a bigger risk. Our economy had to take a bigger risk. Our economy is not Elon and the elites versus you. is not Elon and the elites versus you. is not Elon and the elites versus you. It's investors versus savers. Anyone can It's investors versus savers. Anyone can It's investors versus savers. Anyone can be an investor. But if we vote for be an investor. But if we vote for be an investor. But if we vote for deficit spending, anyone who tries to deficit spending, anyone who tries to deficit spending, anyone who tries to save will automatically lose. It is the save will automatically lose. It is the save will automatically lose. It is the most immoral setup, but it's the one most immoral setup, but it's the one most immoral setup, but it's the one that we have. Every other distortion and that we have. Every other distortion and that we have. Every other distortion and abuse in our economy is a drop in the abuse in our economy is a drop in the abuse in our economy is a drop in the ocean compared to that. We can and ocean compared to that. We can and ocean compared to that. We can and should address things like loopholes should address things like loopholes should address things like loopholes that allow people to borrow against that allow people to borrow against that allow people to borrow against stock and avoid selling it and paying stock and avoid selling it and paying stock and avoid selling it and paying taxes, but I promise you we don't have a taxes, but I promise you we don't have a taxes, but I promise you we don't have a revenue problem. We bring in trillions revenue problem. We bring in trillions revenue problem. We bring in trillions of dollars a year in tax revenue. We are of dollars a year in tax revenue. We are of dollars a year in tax revenue. We are quite literally the richest country on quite literally the richest country on quite literally the richest country on planet Earth. We have a spending planet Earth. We have a spending planet Earth. We have a spending problem. Bernie thinks he's standing up problem. Bernie thinks he's standing up problem. Bernie thinks he's standing up for Juan, the working man, but in for Juan, the working man, but in for Juan, the working man, but in reality he's standing up for murderous reality he's standing up for murderous reality he's standing up for murderous policies that break the very thing that policies that break the very thing that policies that break the very thing that has made us such a rich country. [music] has made us such a rich country. [music] has made us such a rich country. [music] I don't know if he really is naive and I don't know if he really is naive and I don't know if he really is naive and just does not understand economics or if just does not understand economics or if just does not understand economics or if he's sinister, but either way those he's sinister, but either way those he's sinister, but either way those policies have been tested over and over policies have been tested over and over policies have been tested over and over and over and they do not work. and over and they do not work. and over and they do not work. Politicians and talking heads should Politicians and talking heads should Politicians and talking heads should instead be repeating two things on a instead be repeating two things on a instead be repeating two things on a loop until the end of time. One, balance loop until the end of time. One, balance loop until the end of time. One, balance the budget so people can save their way the budget so people can save their way the budget so people can save their way to success. And two, until then everyone to success. And two, until then everyone to success. And two, until then everyone needs to invest in assets and pray needs to invest in assets and pray needs to invest in assets and pray innovators come along and make the pie innovators come along and make the pie innovators come along and make the pie bigger. The system is not fair. It's bigger. The system is not fair. It's bigger. The system is not fair. It's never going to be fair, but even with never going to be fair, but even with never going to be fair, but even with all of the market manipulations, all of all of the market manipulations, all of all of the market manipulations, all of the money in politics, a welder at a the money in politics, a welder at a the money in politics, a welder at a company today can walk away a company today can walk away a company today can walk away a millionaire. millionaire. millionaire. So don't burn it down. Only misery would So don't burn it down. Only misery would So don't burn it down. Only misery would ensue. Instead, learn to play the game ensue. Instead, learn to play the game ensue. Instead, learn to play the game well. And if you want to see how well. And if you want to see how well. And if you want to see how well-intentioned but bad policies can well-intentioned but bad policies can well-intentioned but bad policies can break an economy, make sure you watch break an economy, make sure you watch break an economy, make sure you watch this video here on rent control. Till this video here on rent control. Till this video here on rent control. Till next time, my friends. Be legendary. next time, my friends. Be legendary. next time, my friends. Be legendary. Take care. Peace. Take care. Peace. Take care. Peace. If you like this conversation, check out If you like this conversation, check out If you like this conversation, check out this episode to learn more. this episode to learn more. this episode to learn more. The average rent for a one-bedroom The average rent for a one-bedroom The average rent for a one-bedroom apartment in Manhattan now exceeds apartment in Manhattan now exceeds apartment in Manhattan now exceeds $4,200 $4,200 $4,200 per month. That's more than twice the per month. That's more than twice the per month. That's more than twice the average monthly income for a recent average monthly income for a recent average monthly income for a recent college graduate. In San Francisco, a college graduate. In San Francisco, a college graduate. In San Francisco, a person earning