reSee.it Podcast Summary
There has been a purposeful transfer of wealth from young to old. How did we get where we are today? The largest capital transfer in history happens every year. It's called Social Security. The tax code has gone from 400 pages to 4,000, and those 3,600 pages aren't there to help the young and the middle class. Old people have figured out they can vote themselves more money.
What do you say to young people listening to this that go, those problems are so big? Things are worse for young people than they are for old people now, but the reality is young people do have a lot of agency. What is the actionable thing that you can go do? Find something you're good at. People say to follow your passion. I think that's [ __ ]. Anyone who tells you to follow your passion is already rich.
I saw one of the best TED Talks I've ever seen from you recently about stealing from the youth to give to the old in this country. What do you think's happening, and how did we get where we are today? Well, the D in democracy is working a little bit too well, and that is old people have figured out they can vote themselves more money, and people your age don't vote in the same kind of volume. So the incumbents will blame it on things like network effects or globalization, but there has been a purposeful transfer of wealth from young to old over the last 40 years. The tax code's gone from 400 pages to 4,000, and those 3,600 pages aren't there to help the young and the middle class. They're there to transfer money from people your age to my age.
Universities' incentives are misaligned. The elite endowments contrast with rising costs and declining ROI for students. 'Harvard, $54 billion in endowment, it's grown its endowment 4,000% in the last 30 or 40 years, up 40-fold. It grows its freshman class size 4%. So it admits 1,500 kids on 55,000 applicants.' The resources exist to admit more students without sacrificing quality, yet exclusivity entrenches incumbents. COVID created an intergenerational theft moment: trillions printed, most saved, feeding housing and stock markets, pricing out newcomers. The deficit looms; 'The deficit is a tax on young people' and 'interest costs will crowd out investment in technology, R&D, and education' if not addressed. The critique targets concentration: BlackRock, Blackstone, private equity, and the 'rent' created by industry concentration. Antitrust remedies, breakups, and reallocation of capital are argued as paths to broaden opportunity and lower daily costs.