wonp6 MIKEMAZZONE READS THE WAR ON NORMAL PEOPLE BY ANDREW YANG PART 6

https://bittubers.com/playlist/1006/5 By unlike zone and I'm reading the war on normal people by Andrew Yang life in the bubble even as I have been working with young people from around the country these past years I've been living in Manhattan and silicon valley a call those places the bubble and rear strange lives and jobs in the mobile I recently had dinner with a friend of mine who works for real estate investment firm ignited a Japanese restaurant in Manhattan after catching up for bids I asked him if he'd lost any fancy hotels lately the gotten me at discount to one of few years ago she responded our appetite for risk as gone down you know what the been buying trailer Parks and became more interested really why is that the answer they good investments tenants pay to keep their mobile home in a space with water and utilities all we really have to do is keep the place clean and keep the water flowing fifth I asked him if he ever had problems with delinquency the delay was a rate is very low because first he gets a late notice on the day after their rent is do if they haven't paid we are very diligent about monitoring and everyone knows its second there's no place cheaper to live is really these places or the streets for a lot of people they find ways to pay it's a nice stable investment for us fascinating how do you grow the shrugged will probably look at rising prices over time this has nothing to do with automation but I thought it was a pretty good illustration of what we do we maximize market efficiencies and take tolls many of my friends work in technology and know that they are automating away other people's jobs for some reason is a key part of their sales pitch many explicitly talk about how much cost savings will be realized by having fewer workers arounds the technologists and entrepreneur as I know are generally good people if they were given a choice to do your job and eliminate normal jobs or do your job and create abundant opportunities they would choose the latter most of them would happily even take a small hate to do so but this isn't a choice they are given they do their own jobs to the best of their ability and that the market do the rest you may feel trouble the times of their success will displace hundreds of thousands of American workers with a belief in progress and that their work is overall for the good you may find is objectionable is the thing it is not the innovators job to figure out the social implications of what they do their job is to create and fund innovation in the market as cost effectively as possible this is itself a difficult job is our job to account for society that is is the job of our governments and our leaders unfortunately our leaders are typically a country away from the skip conversations that wrapped in cycles of warring press releases and talk show appearances and fundraising dinners they also generally don't understand technology to the reduced to lionizing innovators and try to get on their good side in turn technologies often see government as a hindrance to be ignored as much as possible lobbied when necessary and navigated around while they make things better faster cheaper more automated is is a disaster in the making because technology is transforming society and our economy while politicians are left responding to the effects and effectively years after the fact or worse yet ignoring them is is not to say that the people in the bubble have it all good we are anxious about the path ahead two we feel stuck in place competing at the top of the pyramid for the most resources for our children we are constantly as to choose between family and function and fear that if we let up for even a little while our race will be lost wooden shoes between time with their children or having children and keeping their job men choose between life on the road and being bypassed children get used to seeing one parent routinely were maybe no parents and all to me talk openly with our friends about having some place to fly when things go south we compare ourselves to our peers in our high cost mobile infield dissatisfied occasionally receive people we form a more hospitable or child friendly environments we ended the them a little also patting ourselves on the back for sticking it out professional empathy is limited we're fighters are organization its have little use or need for noncombatants in work long hours and pride ourselves on being available and indeed 13 double in the bubble the market governs all character is a set of ideas that comes up in the books we read to our children before sending them to test for the gifted and talented program or a means of doing right by our bosses in reports or a good way to burnish for one's personal network on some level most of us recognize that we are servants to the tide of innovation and efficiency as the water rises we will protest as we clamber to higher ground we will be sure to stay out of the way and keep ourselves plants and marketable to the extent possible our specialty is life commitments benevolence we will do something to help but not enough to hurt or threaten our own standing be no better than to do that's in the bubble many of us came up through the meritocracy and we've internalized its lessons the underlying logic of the merits and meritocratic system is this if you're successful is because you're smart in hardworking and thus virtuous if you wore or unsuccessful is because are lazy and were stupid and and some are character that people at the top along there and the people at the bottom have only themselves to blame I know how deeply mistaken these promises are because of my own experiences and very little going for me as a kid accept for the fact that I had demanding parents and was very good at filling out of bubbles on standardized tests I went to the center for talented youth at john Hopkins university is I did well on the sat I went to Exeter because I did well on the SS inti I got into Stanford and brown because I did well on the sat and went to law school at Columbia because I did well on the LS eight see was the directly to a six figure job I'd even became the ceo of an education company in part because I did well on the GMAC being good at these tests however has very little to do with character for two or work ethic he does mean you are good at the tests there were many people who studied much harder than I did whom didn't do well I remember one classmate crying when we got our test results back because she'd studied so hard for its use a success in America is about hardworking character is not really most of success today is about how good you are at certain tests and what kind of family background you have with some exceptions sprinkled into tried to make it all seemed fair intellect as narrowly defined by academics and test scores is how the proxy for is now the proxy for fuming worth the fish and sea is close behind our system rewards specific talents more than anything again push for for having certain capacities others had their horizons systematically lower for having capacities that our academic system had no use for icing countless people lose heart and feel like they should settle for less if they don't deserve a punt it's J.D. Vance wrote in his best-selling memoir hillbilly elegy about growing up in Middleton olano the message wasn't explicit teachers didn't tell us that we were too stupid or poor to make its nevertheless it was all around us but the air we breathe no one in our families had gone to college students don't expect much from themselves because the people around them don't do very much there was and still is a sense that those who make it our two varieties the first are lucky they come from wealthy families with connections and their lives were sent from the moments they were born the second are the merits a credit they were born with brains and couldn't fail if they tried to the average middle Tony and artwork doesn't matter as much as fraud talents the people of Middletown have gotten the message the sat came into its own during world war two as a way to identify smart kids and keep them from going to the front lines now every year his wartime one of my sons was diagnosed as being on the autism spectrum a couple years ago he is a particularly mile high functioning form and will I believe me than amazing in fulfilling life we are in a fortunate position to be able to provide a lot for our son at the right time there are families around the country or not as fortunate the meritocracy was never intended to be a real thing that started out as a parity in a British satire in 1958 by Michael young at the time a world where intelligence fully determined who thrives and language was understood to be predatory pathological and farfetched observes journalist David Friedman today we've made it real and embraced an exultant it's the logic of the marketplace is seductive to all of us he gives everything a tinge of justice that makes the suffering of the marginalize more collectible and that there's a sense that they deserve its perhaps the most remarkable thing is that they often agree they think they deserve it too they're wrong intelligence and character are the same things at all but ending that they are will lead us to ruin the market is about to turn on many of us with little care for what separates us from teach other artwork with a grownup alongside hundreds of very highly educated people for the past several decades and trust me while I say that they are not uniformly all some people in the right bubble they get the world is more orderly than at his be over plan made mistakes marks for judgments a mistake smarts for character the overvalued credentials had it not heart beat status in reassurance is a risk as a bad thing the optimize for the wrong things they've taken two years nots 20 they need other bubble people all round they get his stuff when other succeed they think their smarts to determine their place in the world they think they think ideas supersede action they get agitated if they're not making clear progress their unhappy they feel being wrong and looking they fear being lauded wrong and looking silly they don't like to sell they talk themselves out of having guts they were shipped the markets they worry too much mobile people have their pluses and minuses like anyone else when I was kid I just wanted to belong as a smart person I was taught to leave others behind we have to snap out of it and start remembering our own humanity where all the same people we were before we got sorted and socialized it's it's where all mothers fathers sisters and brothers above all who want the same things for ourselves and our families were running out of time in coming years is going to be even harder to forge a sense of common identity across different walks of life a lot of people who now live in the bubble grew up in other parts of the country is still visit their families for holidays and special occasions they were brought up the middle class in normal summer's like I was and retain a deep familiar in NT with the experiences of different types of people they loved them all too in another generation this will become less and less true there will be an old army of slender by the cultivated products of mountain view and the upper east side and Bethesda heading to evade schools that has been groomed since birth in the most competitive and rarified environments that very limited exposure to the rest of the country when I was growing up there was something of an inverse relationship between being smart and being for booking is markets were bookish an awkward and the social kids were attractive and popular rarely were the two sets of qualities found together in the same people than your campsite went to look the parts today thanks to a sort of meeting in a handful of cities intelligence attractiveness education and wealth are all converging in the same families and neighborhoods and look at my friends' children and many of them resemble unicorns brilliant beautiful socially precocious creatures would have gotten the best of all possible resources says the day they were born I imagine them in 10 or 15 years traveling to other parts of the country and I know that they have to are going to feel like and be received as strangers in a strange land they will have a thriving online lives and not even remember a car that didn't drive itself they may feel they have nothing in common with the people before them their ties to the greater national fabric will be minimal their empathy and desire to subsidize an address the distress of the general public will likely be lower and lower you've already the Israeli scholar says that suggest that the way we treat stupid people in the future will be the way we treat animals to day ever going to fix of things to keep this vision coming true now is the time 10 mindsets of scarcity and abundance and spoken a high school in Cleveland a while back about entrepreneurship many parents were there and one father asked me what made you think you were capable of starting a company I thought for a SEC and responded when I was a kid my parents hammered into me that I can do anything anyone else could do I met some people who had started companies to I figured that I could two as that in my first company when I was 25 in 2000 star giving.com a fundraising site for celebrity off a leading causes that was much higher than I thought it would be they raised about $250,000 in increments of $25,000 over 810 month. And lost a web sites is by some early press be quickly lost altitude they ran out of money as the Internet bubble burst and our investors lost interest in begin clear that our prospects were terrible and after a year and 1/2 we shot the company down the first professional failure did a number on my confidence everyone knew I was well aware that I tried to lost a company and into tents and gone under a still owned $100,000 fronts loans I taken out for law school as to call my school loans fifth my mistress use it felt like I was sending a check each month to support a family in another town myself this team was low and I had a hard time meeting people or facing my parents now looking back at my first company I realize that I was unusually well positioned to both startup company and rebound from its failure at the time it hurts I was 25 had lots of school tax and it didn't really know what I was doing when I was unusually well but I was unusually well educated I had a cofounder my office mates and Davis Polk had left the firm to profound the company with me and savings which I burn through an access two credits I was able to get in front of enough which people to raise a couple 100,000 in angel investments I have friends I can move in with to save on rents when things got tough I didn't have any family responsibilities I had no kids or spouse and my parents didn't need any financial support and nearly had to listen to them periodically question my life choices I also had confidence I could get a job and if all else failed enough in my life had worked out that I thought I could make starting a company workout two I also thought correctly that even if it didn't work out I'd be fine my story is one of relative abundance and it should feel familiar america's was once the place we're starting a business was commonplace and people were optimistic about their futures unfortunately this has stopped being the case for the vast majority of Americans Edmonton work with hundreds of young people around no country was fire to be entrepreneur SP many aren't from privileged backgrounds in feel that there's an overlap between starting a company and one's personal and family resources they believe that privilege and entrepreneurship go hand in hand and often your ship isn't meant for someone like them because of their background class gender based education or geography unfortunately for the most part their rights is a substantial correlation between ones socioeconomic background as starting a successful company a UK study found that the most common shared trait across entrepreneur is his access to money be a family and inheritance pedigree and or connections a U.S. survey found that in 2014/80% of startups were initially self funded that is the founders had money and investing directly a recent demographic study in United States found that the majority of high growth entrepreneurs were whites 84% Males 72% with strong educational backgrounds and high self esteem one of the others commented if one does not have money in the form of a family with money the chances of becoming an entrepreneur would drop quite and it's of work with hundreds of successful entrepreneurs around the country and most came from financially comfortable backgrounds the truth is that it's a lot easier to start a company if you have a few things going for you in addition to resources you have a mindset of abundance after you make one thing work out you kind of think you can make anything workouts and not try to minimize all that goes into being a successful entrepreneur building a business is super difficult no matter whom you are there are always obstacles trials in very long hours is virtually impossible to build a consequential business or organization without tons of work persistence and heart and soul I admire everyone was started a business on the corner diner on up is also not the case that entrepreneurs uniformly had easy lives many were marginalized Molly were made to feel like they didn't belong in skeins the LAN must related this as his immigrant experience some have family dramas and gave them a chip on their shoulder and drove them to achieve our record koran and Damon john both described growing up dyslexic and being told that school wasn't going to be their route to success fifth immigrants have higher rates of starting businesses because some feel that they don't have much of a choice that the mechanics of entrepreneurship make it a lot more accessible to people who can realistically gather meaningful resources defer money and take on risk the startup community nationally is very unrepresentative of the American population no women will soon make up nearly 60% of college graduates and the country will be majority nonwhite in the next 27 years tech is dominated by in my view mostly good natured white man most of whom are well educated for a woman or person of color try to start a growth business every step is Harter lower personal savings lower access to capital dismissive were creepy investors fewer professional role models and mentors potentially more personal obligations and so on better for America is trying to help address this are less class was 43% woman women and 25% black and latino entrepreneur is have among the most powerful mindsets of abundance of anyone silicon valley CD the aspen institute there uplifting places because the people in attendance believe that all things are possible often because they've made unlikely things happen for themselves you can say something about starting a new company or organization and people simply not at you and think of course is like there's more oxygen for ideas along with more money and attendance had last year wraps the most exclusive conference in the world I got invited through a friend and pay $8500 for admission not including travel expenses when I got there there was up meditation tents my friend waited to try it wanted to try its so we sat down in each listen to a peaceful Pont cast as I sat down the attended the each of us a small black envelope within was a $150 kit car to Lulu live on the tense and sponsor my mood improved significantly and I wasn't sure if it was because I'd meditate ago because someone gave me a $150 gift card rights as I sat down as an environment of abundance money comes to do a good things happen to you seemingly for no reason though the real reason is where you happened to be sitting it's it's a scarcity makes you think differently contrast the above would build livid experience of normal Americans who operates in the prepared in a perpetual state of scarcity the average American lurches from a paycheck to paycheck with no financial cushion spending significant bandwidth scrambling to stay one step ahead of their bills and borrowing from Peter to pay Paul their paychecks are not only modest but highly variable due to unpredictable shifts and being paid cash fees for hourly work like Manual labor in babysitting a study of tens of thousands of Jp Morgan chase customers saw average monthly income volatility of 30 to 40% per month for customers with annual incomes of $35,000 and even higher swings for people making less than that's the might make $2000 one month $3000 the next $1800 the one after that and so on says the 1970s steady work that pays a predictable and living wage has become increasingly difficult to find said Jonathan Warnock a director of the U.S. Financial diaries project an in depth study of 235 low and moderate income households the shift has left many more families vulnerable to income volatility the Jp Morgan chase study showed that roughly 80% of customers had insufficient cast cash to manage the differences in monthly income and expenses and any unexpected expense like Health Care or car repairs would wreck the family's picture for the year the observe the income level and in which at which point income volatility stop being a problem at about $105,000 per year a level far out of reach for most families for tough and people are unable to plan or budget effectively because they don't know know how many hours they will receive at their store restaurant or construction sites 41% of hourly workers say they are not given more than a week's notice of their schedule and many say that if they turn down a shift that will mean fewer hours the following month the bus live in a perpetual state of both scheduling and income uncertainty the average worker trends schedule volatility so much that they're willing to sacrifice 20% of their income for predictability according to one study scarcity has a profound impact on one's worldview elder should fear a Princeton psychologist and send hill mall in a fan of Harvard economist conducted a series of studies on the affects of various forms of scarcity on the war he found that poor people and well off people generally are performed very similarly on tests of fluid intelligence that generalize measurements that corresponds to IQ but if each person was forced to consider how to pay an unexpected car repair bill or 300,000 or $3000 just before taking the test that core group would underperform of the equivalent of 13 IQ points almost one full standard deviation just having to think about how to pay a hypothetical expense was enough to derail their performance on a general IQ test and send them from superior to average or from average two borderline deficient activating scarcity through a hypothetical expense was also found to reduce correct responses on a self control test from 83 to 63% among the last well of participants with no affect on the will of a minds in a scarcity is more than just stress and actually makes one less rational and more impulsive by consuming bed with another study to fear in Mullen Molina fan as two groups to memorize either a two digit number or an eight digit number they were presented the groups would both Katyn fruits that people were preoccupied trying to measure the eight digit number eight cake much more often when ethnic person service study participants are impulsive and traditional death dish that preoccupy group was more likely to be rude or make a racially insensitive comments the group with the easy mental task by the bandwidth to restrain their reaction and maintained decorum we all respond poorly to scarcity imagine yourself sitting peacefully at your desk in your office seven rushes to tell you that you forgot about a meeting that starts in 5 minutes and you'll have to hurry across town to get there all the sudden you burst into action you where they think about what if anything you have to prepare you might be prone to forgets your keys or some other belonging on the way out the door getting detained the detailed directions to where you're going seems like it will take too much time sages had off in the general direction and frantically text or e-mail the person on my way will be a bit leads some part of the wonders how you forgot about this meeting and if it's someone else's fault you may become agitated and the 20 settle yourself down before you actually into the meeting taking a couple deep breaths to try to compose herself to make yourself presentable or imagine a particularly busy day when you are forced to step a bunch by the afternoon you are beating for something to eight but you're in back to back meetings pretty soon you're distracted and just thinking about whether anyone has a granola bar or if there's a vending machine nearby instead of listening to what people are saying studies show that people on a diet are continuously distracted and fare worse on various mental tasks the same goes for deep sleep deprived people lonely people people with their phone on the table in front of them and for people or as to think about money given forms of scarcity are often tie together for example if someone lacks the ability to pay for their car repair the maze they have to figure out another way to get to work via public transportation and then figure out if they will make it back in time to pick up their child from school and whether that means the lead to arrange childcare and so forth New York wore these many choices defined your waking hours and become almost existential and all consuming any money you choose to spend means that shall have less money to spend elsewhere making every decision and calculation both important and taxing to fear the pristine psychologist observed is a very large proportion of Americans were concerned in struggling financially and therefore possibly lacking in bandwidth each time you issues raise their ugly heads we lose cognitive abilities elsewhere these findings may even suggest that after the financial crisis America may have lost a lot of fluid intelligence they don't have room for things on the periphery one of the things it has struck me about the age of the Internet is that having the world's information at our disposal does not seem to have made us in a smarter if anything is kind of the opposites most of us find ourselves struggling with scarcity of time money empathy attention or bad within some combination is one of the great provisions of automation that just when advancing technology should be creating more Buffy Ling of all buttons for us all is instead activating economic insecurity in most of the population is quite possible that is steady and predictable work and income become more and more rare our culture is becoming dumber more impulsive and even more races and misogynist due to an increased bed with tax as people jump from island to island try to stay one step ahead of the economic side one can argue that it is essential for any democracy to do all it can to keep its population three of a mindset of scarcity in order to make better decisions a culture of scarcity is a culture of negativity people think about what can go wrong the attack each other tribalism and divisiveness go way up reason starts to lose ground dishes and making gets systematically worse acts of sustained optimism getting married starting a business moving for a new job all go down if this seems familiar is exactly what we're saying by the numbers here in America we are quickly transitioning from the land of plenty to the land of you get yours I get mine a mindset of abundance or scarcity is type closely to what part of the country you live in different regions are now experiencing such different levels of economic dynamism that they often have utterly different notions of what the future holds one's way of life is largely a product of where you happen to live fifth Aladdin and geography is destiny where jobs disappear when jobs leave a city or region things go downhill pretty fast Youngstown Ohio immortalized in the Bruce Springsteen song is a posters child for postindustrial cities that by job loss is if he rose to prominence as a hub of Steel Manufacturing in the early to mid 20th century Youngstown sheets and two U.S. Steel and Republic Steel each built major steel Males in the city that supported thousands of workers the population of the city grew from 33,018 90 to 170,000 in 1930 as the industry bones good jobs were so abundant that Youngstown and one of the highest median incomes in the country and was fifth in the nation in its rate of homeownership he was known as the city of Holmes the city steel industry was considered pivotal to National Security when union workers threatened to strike during the Korean war in 1952 president room and ordered the Youngstown sheet and two Males in Chicago in Youngstown seized by the government to keep production high the most of the 20th century Youngstown skull sure was proud and vibrant two major department stores occupied downtown as did for upscale movie theaters that showed the latest films there is also a public library and art museum and too large a leveraged public auditoriums the city organized an annual community chest to help the needy steelwork was central to the city's identity a local church featured an image of a male worker with the quotes the voice of the lord is mighty in operation the steel industry began to based global competitive competition the route that 1960s and 1970s Youngstown sheet into march with blacks corporation a steamship company based in New Orleans in 1969 the wood Males were not reinvested in as corporate ownership left the city the workers knew that their mails for not state of the arts and continually continuously agitated for more investments then on black Monday, September 19, 1977 yards down sheet and two announced that it was closing its large local mail Republic Steel and U.S. Steel followed suits within five years the city lost 50,000 jobs at $1.3 billion in manufacturing wages in common and economists scoring the term regional depression to describe would occur in Youngstown and the surrounding area on local church and union leaders organized a response to the mall closing forming a coalition that included national up reach a legislative agenda and occupying corporate headquarters in protest is exceeded and prompted Congress to pass a law saying that plant shutdowns should have more notice he tried to engineer a worker takeover of one of the Males government loan programs made it possible for some hacks steelworkers to attend Youngstown State university to retrain these efforts were largely few tile at preserving residents way of life the mail state closed in local unemployment surged to depression era levels of 24.9% in 1983 a record number of bankruptcies and foreclosures followed as property values plummeted arson became commonplace with an average of two houses per day was on fire through the early 1980s in part by homeowners tried to collect on insurance policies the city was transformed for my a psychological and cultural breakdown depression child and spousal abuse drug and alcohol abuse divorces and suicide all became much more prevents the caseload of the area's mental health center tripled within a decade during the 1990s young towns nice house murder rate was eight times the national average six times higher than New York 4 1/2 times that of and Los Angeles and twice as high as chicago's the route the 1990s local political and business leaders Seeking a new opportunities for economic development hurston was warehouses and telemarketing than a minor league sports than prisons for wilbon four were built in the region which added 1600 jobs but brought other issues many residents were concerned about the perception of Youngstown has a penal colony one prison run by a private corporation and was so lax to six prisoners including five convicted murderers escaped at midday in July 1998 and the officials didn't notice on till notified by other inmates national press descended on Youngstown and the present company apologized and paid the city one million dollars to account for police overtime capturing the escapees on other prison run by the country was forced to release several hundred prisoners early in 1999 because of inadequate staffing and budget shortfalls in 1999 a 20 year investigation convicted over 70 local officials of corruption including the chief of police the share of the county engineer and a U.S. congressman and will stop there and I'm reading the the war on normal people by injury Ing and I'm mike zone thanks for listening a one T a T ET E a TE a T E