Scott Galloway · 27:23
Fifty years, we're gonna look back and think that guy was a gangster. But he's basically said the problem... You know, the reverse of the caste system and meritocracy, the the problem with American meritocracy is we assume that everyone that isn't rich, it's that it's your fault, and it's not. Right. Exactly. So, anyways, my
Kara Swisher · 27:37
The secret.
Scott Galloway · 27:38
My win.
Kara Swisher · 27:38
The secret, Scott. It's because of you. That's the reason. Or lean in or any of these things. It's it's an idea. It's the continuing American narrative that you are where you are because of what you did.
Scott Galloway · 27:48
Well, and that's that's... And I'm guilty of it too because I found that through my thirties and forties, and I'm I'm constantly boasting about my background and where I ended up because I'm very proud of it. But here's the reality. Being born a heterosexual white male in 1964 was literally the luckiest ticket. That was the lottery ticket because what did it mean? It means you came into the University of California in the '80s where you got to go to amazing university for free. It means you got to graduate into the greatest economic creation in the history of mankind where more wealth was created with a seven mile radius of SFO Airport in seven years in all of Europe since World War two. You know, it just meant... It it literally meant you were caught in the greatest updraft in history. And I think for a long time, lot of us, including myself, credited our success, credited our character and our grit, recognizing, you know what, we just got really, really lucky. And I think that these academics are pointing out that, hey, guys, how much of this is luck and how much of this is bad luck? And it also brings up a really interesting notion with Andrew Yang, who I want to thank you. You turned me on to Yang. This notion of uni
Kara Swisher · 28:55
Yang. Gang.
Scott Galloway · 28:56
You know, this freedom
Kara Swisher · 28:56
part of the yang gang now?
Scott Galloway · 28:58
I I... You know what? So I'm interest... I'm really interested in this notion of transfers of wealth. And whenever you talk about redistribution, and I'm really on my soapbox now, whenever we talk about increasing taxes for the rich, the Republicans say, well, that's a redistribution of wealth. The greatest redistribution of wealth in the history of mankind has been happening for about thirty or forty years, and that's a redistribution of wealth from poor young people to older rich people in the form of capital gains, tax cuts, mortgage tax deduction, and then the ultimate wealth transfer is Social Security. And I like the idea of Andrew Yang's Freedom Dividend, but I think it should be adjusted for income. But there's something here that we
Kara Swisher · 29:36
He's talked about that. He talked about that too.
Scott Galloway · 29:38
We need
Kara Swisher · 29:38
If certain people don't get it.
Scott Galloway · 29:39
We need to have a serious readjustment or releveling from the transfer of wealth from young and poor people to old and rich people that has taken place over the last twenty or thirty years that has really punctured any meritocracy
Kara Swisher · 29:50
with that. I had a really good podcast with Steven Greenhouse from the New York... Former New York Times reporter has written a book about American labor. He has a lot to say about that, the... About UBI and more than that in the transfer of wealth. And, also, Steve Schwartzman from Blackstone, who had a different opinion, as you might imagine. He's he's one of the most highly paid executives in history, I guess.
Scott Galloway · 30:08
Very talented. Did you... What were the takeaways from his interview? I'd like to interview but what were kind of one or two interesting takeaways?
Kara Swisher · 30:14
I I find him to be... He's so allied with Trump. Every Democrat is terrible. You know what I mean? Anyone who's anti business is terrible. I think... But he's he's done so much philanthropy that is so effective. Like, I've kind of like it's it's a mixed bag because I think he... He's he's so on the Trump train. I'm sort of like, you're so smart. Really? Like, do you know what I mean on some of the stuff? And I think I I was surprised by that that much defensiveness of Trump. But, you know, I think I still have an issue. You know, a lot of fascinating things about his, like, Schwartz... Schwartzman's scholars that he's doing in China. He... Very prescient to bring hundreds of kids to China to interact with the Chinese. I thought that was super smart. And I I did, I I do find, obviously, he's he's brilliant in many ways. And so I just was sort of fascinated. I think he still... I think he... When when... And I asked him at the end what he would do now if he was a 20 year old. What he'd go into? The stuff he picked was really fascinating. He had a real knowledge of entertainment, how how the entertainment world is changing. He'd still go into finance. He thinks that's undergoing a really interesting thing. And so I... It was very... It was interesting. I just... The only thing was that he just absolutely believes all Democrats don't like business, and I just... That's that's not true. It's just not... It was it was sort of a crouch... You have to be in a crouch position if you're if you're an adviser to Trump. And then the other part was he kept saying, you know, I'm just a businessman. I'm like, what are you talking about? Like, that was my favorite part. I'm like, oh, yeah. You're just a regular business guy who happens to have the year of the president who obviously reveres you, and you're so powerful. It was... I I love when they do that to me.
Scott Galloway · 31:51
Yeah, other than having a big fat finger on the codes or the button, he's probably in many ways more powerful than any president because there's more longevity And what you brought up is an interesting point around finance is, in fact a lot of kids when I say kids, my students come to me and ask me what industry they should go into. And there's a great study right now looking at funding to seed startups. And basically, to any seed startup is a function or the volume of it is a function of the sector. And what's entirely obvious is all the sectors like retail, social, media, all the funding to those startups has collapsed. Why? Because there's monopolies, and no one wants to fund companies competing against monopolies. Whereas funding to things like block chain, finance, microcredit is still really strong because those are not There's no winners. There's no monopoly there to kick you in at the balls over and over. So again, word memo to the FTC and DOJ, we are in winter right now. We're in the worst of both worlds possible because the number of acquisitions that the big four have made has declined by 72% year on year because they're worried about raising antitrust scrutiny. At the same time, we don't have startups. So we have an absolute killing, an absolute infanticide of innovation right now. And until the DOJ and the FTC get on it and either break these guys up or, quite frankly, and I hope this doesn't happen, say, alright. We're not breaking them up, and they begin acquiring companies again and investing. We are literally in in winter here. So we're in the worst
Kara Swisher · 33:25
And that's why my win my win this week is the attorney generals, several of them moving forward, joint antitrust investigations. The more pressure brought to bear The Wall Street Journal, the specific number of states might join the investigation couldn't be learned. The one person from what the effort said, up to 20 or more may participate. States getting together, especially if California is part of that, is gonna be a big deal. So we'll see. What is your fail very quickly?
Scott Galloway · 33:47
And I have the same exact fail, and I've been doing all the speaking here, so I want you to talk about it.
Kara Swisher · 33:53
Our reporter, Shareen Gafari, has reported that DoorDash is still taking tips from its workers even though it promised to change quickly, it has not. There you have
Scott Galloway · 34:04
it. Yeah. That's great reporting, and I I I did a a hot take on this yesterday. You know, this this... I don't... I worked services jobs through high school and college. I was a buck... A box boy in a union. I was a waiter. I was a busboy. I was a pool boy at the Mondrian Hotel in West Hollywood. And you know what? Generous people on a regular basis would change my life. When you're when you're working on a Sunday, and I... This is the, you know, walking through snow story. During the summer at UCLA, I needed to save a certain amount of money, and I lived on top ramen and bananas. And you can live on top ramen and bananas. It's not a, you know, it's not a It's not a woe is me story. And occasionally some really generous person would tip me $10.20, a couple times I'd get $50, and it would change my life that day. I remember I would come home and say to my roommate, we're going to Sizzler. Remember Sizzler ads? It was like, we have a
Kara Swisher · 34:56
No, did not go
Scott Galloway · 34:57
to Sizzler. Sizzler's the best way you can eat. Chicken for $99 with a coupon from the Daily Bruin. And I would go to Sizzler. I used to love the commercials and say, don't have a lot of money and I don't have a lot of time. You used to say, I don't have a lot of money. I don't have a lot of class. Sizzler.
Kara Swisher · 35:13
Sizzler.
Scott Galloway · 35:13
We used to go to our Are you
Kara Swisher · 35:15
not big? I always I always wanted to go to those restaurants, and I grew up in a wealthy environment. I did, and my mom was like, no
Scott Galloway · 35:21
way. Oh, the Sizzler was gangster. Anyways Never. Never
Kara Swisher · 35:26
had a blooming onion. Let me just say from the outback, I never had a blooming onion. Know that's a sad tale for a
Scott Galloway · 35:32
rich girl, but that was my point is tipping. The generosity of people is... It makes a huge difference in people's lives. It's a wonderful thing, and it happens about a million times a day in America, and DoorDash has decided to fuck this wonderful thing.
Kara Swisher · 35:46
Lot of them. It's not just DoorDash. It looks like Amazon. Like, a lot of people are are taking their tip money. Yeah. You don't take people's tip money. That's DoorDash the situation according to
Scott Galloway · 35:55
fail. And they should know, Kara Swisher and Scott Galloway, eyes on DoorDash were watching. Thirty days ago, they said they were changing it. And guess what? They haven't.
Kara Swisher · 36:04
They haven't. Eyes, baby. We're watching you.
Scott Galloway · 36:07
From far. We're watching you.
— Predictions segment begins —
Kara Swisher · 36:08
We're watching you, especially Sizzler Sizzler Sizzler Scott. So that's your nickname. So last thing, prediction. Very quickly. We gotta get out of
Scott Galloway · 36:16
here. Sure.
Kara Swisher · 36:16
Gotta get back
Scott Galloway · 36:17
So my prediction is I think Spotify is gonna come out with a hardware device. I think Spotify has the capital, the Northern European genetics to come up with incredible design. I think music is... I don't wanna say desperate for a different type of hardware, but I I think
Kara Swisher · 36:31
What hardware? What are they gonna make? An iPod?
Scott Galloway · 36:33
The answer is I don't know. But I think you asked for a prediction. I'm trying to do something bold and different here. There was a rumor
Kara Swisher · 36:38
specific.
Scott Galloway · 36:39
They filed with the FCC that they're thinking about that they filed the requisite paperwork to release a consumer device. And I think Spotify I think a European, Northern European design element listening device or some sort of audio device brought to you by Spotify has win written all over it. So my prediction
Kara Swisher · 36:59
Does it?
Scott Galloway · 36:59
Is within the next six to twelve months, Spotify comes out with a piece of hardware for streaming for music.
Kara Swisher · 37:05
That's fascinating. And how does it battle Apple and Google? Like, come on. Like, my kids listen on their phones, everything. I can't imagine them having a separate device listening to music. Music.
Scott Galloway · 37:16
Most innovative devices right now, I think in audio are obviously Amazon's Echo device. And also, think Sonos does a great job. And I really like the CEO there. I think he's a high character, high integrity guy, I'm a big fan of Sonos. But I think there's a lot of room when you look at how big that medium and look at all the innovation. TVs are amazing, they get better and better every year. Look at all the innovation around phones. When you think about our listening devices, I don't know, other than the ones in your ears, I'm talking about a home listening device. I think there's a lot of room for innovation. Spotify has the capital, the content. They could go vertical. They could make the device differentiated based on Spotify's service. So I think this is begging for Spotify to come into the hardware space.
Kara Swisher · 37:59
That is a big prediction, Scott. If that happens, you will be brilliant.
Scott Galloway · 38:03
And if it doesn't, we'll just ignore it, I'll just be me. I'll just be me.
— Predictions segment ends —
Kara Swisher · 38:08
Alright. That's a great prediction. I'm gonna leave you on a prediction, except I wanna know when when... What time does the war with Denmark start?
Scott Galloway · 38:15
That's right. The Danes. The Danes.
Kara Swisher · 38:18
Yeah. What... It's just... I don't... I have no predictions about making Copenhagen? What? Have you
Scott Galloway · 38:24
been to Denmark? Copenhagen?
Kara Swisher · 38:25
Of course. Many times.
Scott Galloway · 38:26
Wonderful I'm
Kara Swisher · 38:27
a rich kid. Of course. I went to Europe a 100 times.
Scott Galloway · 38:29
There you go. I didn't
Kara Swisher · 38:30
go because was there with my son.
Scott Galloway · 38:31
I didn't go because they're not a sizzler there. So I'm like, that's it.
Kara Swisher · 38:34
They don't.
Scott Galloway · 38:34
That's it. No. We should move to Northern Europe. We would be... But we would be much less successful in Northern European. It would be like MSNBC when there's a Democrat in office. No one would give a shit. Everything we'd be saying would be like, yeah. I agree with that. Yeah. That makes sense. Yeah. It's wonderful, though.
Kara Swisher · 38:47
Well, let us end on a quote from Hamlet then.
Scott Galloway · 38:50
Okay.
Kara Swisher · 38:50
This above all, to thine own self be true. There you go.
Scott Galloway · 38:54
Wow.
Kara Swisher · 38:54
There's a little learning for you.
Scott Galloway · 38:55
Wow. Good stuff.
Kara Swisher · 38:57
Yeah. Do want another one?
Scott Galloway · 38:58
Yes. Definitely.
Kara Swisher · 38:59
More things in heaven and earth, Horatio, than are dreamt of in your philosophy. I should have been an actor. Acting.
Scott Galloway · 39:08
You should have been.
Kara Swisher · 39:10
Take it to be or not to be.
Scott Galloway · 39:12
Alright. I'll leave us with a quote. Sometimes it's darkest before it's pitch black. When is this all gonna end, Kara? When is this all gonna
Kara Swisher · 39:20
end? Never.
Scott Galloway · 39:21
Alright. Alright.
Kara Swisher · 39:22
It's not going to, Scott. Like you said, good and bad. Good and bad.
Scott Galloway · 39:25
Good to see you. What a pleasure to meet your mother.
Kara Swisher · 39:28
Thank... Oh, that was that was that.
Scott Galloway · 39:30
That was nice. Thanks.
Kara Swisher · 39:31
Yes. Careful. Don't turn your back on her. That's what I say
Scott Galloway · 39:34
to you.
Kara Swisher · 39:35
Before we end, I want a quick plug for my other podcast, Recode Decode, because you'll like this, and we'll talk about it next week. Today's episode is a big panel discussion about CDA and section two thirty. We had Kerry Goldberg, Jeff Kosseff, and Mike Masnik. It was a really good substantive discussion with three experts, so please check it out. And we're gonna talk. I want you to listen to that one, Scott, because that was really interesting. And I also wanna call out an email we got this week from a listener call... Named Shane. He was at our live show in New York on Tuesday, and he says he loved it. Your show was so refreshing and direct refreshing.
Scott Galloway · 40:07
That's us. That's us refreshing.
Kara Swisher · 40:09
We're refreshing
Scott Galloway · 40:11
like a beverage. Shane
Kara Swisher · 40:13
also says the crazy news cycle today reminds him of Howard Beale's famous rant on network. I'm mad as hell, and I'm not gonna take it anymore. What do you think, Scott? Are you ready to fling open your window and start shouting into the streets of Nantucket?
Scott Galloway · 40:24
That guy's a role model of mine. I love that. Fate... Probably Fate Dunaway's best film. That's a great movie. Network.
Kara Swisher · 40:30
Okay. That didn't end well for Howard Beale. Just FYI. Yeah. Anyway, I saw Bryan Cranston in the new version of it on Broadway.
Scott Galloway · 40:37
Oh my god. Bryan Cranston? Greatest series in the history of television, Breaking Bad.
Kara Swisher · 40:43
He was great in this world. It was amazing. Amazing. Amazing. Amazing show. I'm sorry you didn't see it, but I enjoyed it. I'm going... I'm in New York. I'm gonna see Moulin Rouge this week too.
Scott Galloway · 40:53
What's Moulin Rouge doing?
Kara Swisher · 40:56
It's it's a new play on Broadway. It's a big hit. Yeah. Anyway, I'm not even... It's culture, Scott. I'd listen
Scott Galloway · 41:01
Pretty hard to sell that as...
Kara Swisher · 41:01
Go to the Sizzler. Go to the Sizzler and
Scott Galloway · 41:03
enjoy Pretty hard to sell that as compelling. Do that after you listen to the CDA panel. Jesus Christ. Alright.
Kara Swisher · 41:09
Yeah. For those of us who are not screaming yet, you polite... You can send us politely worded indoor voice email with your comments and suggestions to pivotvoxmedia dot com. We really do listen to this. Scott, I will be with you again next week. I'm very excited, and we will plan our city that we're gonna go to. I think it should be Tampa.
Scott Galloway · 41:29
Tampa. What do
Kara Swisher · 41:30
you think?
Scott Galloway · 41:30
Do... I'm thinking I'm just trying I'm thinking Miami. I think the best big dog and the big cat go a little Latin, a little sexy, a little hot erotic. That's right.
Kara Swisher · 41:38
End on that. I'm gonna stop you
Scott Galloway · 41:39
before you invent your career. Alright. Let's
Kara Swisher · 41:41
roll. Today's show is produced by Rebecca Cenanis and Eric Johnson. Eric Anderson is Pivot's executive producer. Thanks also to Rebecca Castro, Drew Burrows, and Nishat Kerwa. Special thanks to Jeff Geld for mixing this episode. Make sure you subscribe to the show on Apple Podcast. If you like this week's episode, leave us a review. Thanks for listening to Pivot from Vox Media. We'll be back next week for another breakdown of all things tech and business.
