Scott Galloway · 46:34
That administrators and faculty continue to to to put out there
Kara Swisher · 46:38
Yeah.
Scott Galloway · 46:38
And that we buy is that we don't have the classrooms and we don't have the faculty. Okay.
Kara Swisher · 46:43
So get rid of some professors or move them into more popular areas.
Scott Galloway · 46:47
Then force them to be more accountable. And given that we've raised tuition 1400%, let's ask that you teach maybe twice as many people. Yeah. The other stuff, the socialization you're talking about, which I agree is hugely important, will not take any hit whatsoever if occasionally you do a stats class or a history of Greece or the El Ellingtonia, the history of Duke and Ellington, which I took at UCLA. Some of those sessions can be taken online to free up the real friction or what they claim is the friction in that faculty
Kara Swisher · 47:16
Smaller classes
Scott Galloway · 47:17
and classroom space.
Kara Swisher · 47:18
Online and the bigger classes. Which one?
Scott Galloway · 47:21
Yeah. Well well, here's the thing. I have I have thirty six podium hours for brand strategy, 12 sessions. Take four of those sessions where I'm just lecturing, I'm talking about brand architecture. I can use the help of video, I can use polls, I can actually do really cool things online.
Kara Swisher · 47:37
Yeah.
Scott Galloway · 47:38
And take four of the 12 sessions online, and then technically or theoretically, you should be able to expand your supply by 25% or 30%. The kids are still going to get together and make connections and that, you know
Kara Swisher · 47:53
You can also advantage
Scott Galloway · 47:54
of that incredible campus environment.
Kara Swisher · 47:56
May say, you can also overbuild on those campuses. Georgetown University used to get criticized because they build on every square inch of their little spot because Georgetown's a real fancy area, right, of Washington. And they used to get criticized, but one of the things they did when I was there was build housing, housing, housing, housing, housing, because they didn't wanna keep encroaching. They knew there was a problem, especially because it's one of the more expensive areas of Washington DC, and there was a lot of tension between the town and Gown. And it's an... It's absolutely... They kept, like, one lawn thing, and then they built very innovative fields on top of buildings. And at the time, people insulted them, but now I see that it's somewhat wise by those Jesuits. They jammed people in there, so there could have more people at the university. And I remember thinking that was bad at the time, but now I'm thinking may... They built ugly buildings. That was one of the issues. But it was an interesting, technique, and it was always housing and classrooms they were building, like, a lot of them, which was interest... You know, on every square inch.
Scott Galloway · 49:00
Well, couple of things. One, you mentioned earlier in the program that you're taking your son to Berkeley. Yeah. And you said, well, no one's there. Well, guess what? Twenty weeks a year Yeah. There's no one there. I know. We need to do what Dartmouth does. Dartmouth starts the quarter midsummer. There's way too much foul capacity supply we don't use. You know what we also need to do? A great university needs to open up a campus in the South and say, it's like the Navy Seals. Right. Anyone could show up, but a lot of you aren't gonna make it.
Kara Swisher · 49:26
Right.
Scott Galloway · 49:26
Make it just entirely skills based. There's all sorts of interesting things we could do. Two year programs.
Kara Swisher · 49:32
Why is something different? Dean of the world, Scott.
Scott Galloway · 49:35
Of the world? Yeah.
Kara Swisher · 49:36
Yeah. Yeah. Dean warmer.
Scott Galloway · 49:38
There's a lot of people wanna support me for that.
Kara Swisher · 49:39
Yeah. No. I don't think so. No.
Scott Galloway · 49:41
Yeah. Occasionally occasionally, I get called to interview for a a deanship, and I say I would be the worst person in the world. Actually, I've gotten some fairly interesting calls. But what I do is I send them a list of people who are much more talented and much better with people than Wait.
Kara Swisher · 49:54
Wait. Give me one. Give me a name.
Scott Galloway · 49:56
I mean, it's one thing to be asked to interview. I wasn't off of the job, but I get asked to interview at at all sorts of schools. Schools are really trying to embrace innovation. I will say that. They like the idea or maybe they just want an innovator to interview so they can say to whoever we interview this guy. And then they'll
Speaker · 50:09
get the other guy or the woman. Yeah.
Scott Galloway · 50:11
But schools, I've actually been encouraged lately. I think schools do see the issues and they are trying to address it. But there is no reason why we can't dramatic... Christ, like I said, we can scale Google 24% a year, but we can't scale higher ed more than 1% a year.
Kara Swisher · 50:27
Right. Yep.
Scott Galloway · 50:27
There's a lot of issues we're going to have to face around demographics and who gets in and capacity and supply and cost. You know what I'm getting for the first time ever, Kara? I'm getting calls from kids in between their first and second year in business school saying I'm thinking of dropping out. Wow. This isn't worth $70. I've got a great job. I don't wanna go for another nine months.
Kara Swisher · 50:51
Sam Altman, formerly a Y Combinator and a critic of the college system, proposed an alternative this past weekend on Twitter. Find the smartest, most driven 18 year olds in the world and give them tenure, say a decade plus of salary, resources, and work at whatever they want and a smart peer group in exchange for a small percent of future earnings. What do you think is the idea of taking a percent of their earnings? That's sort of like a loan?
Scott Galloway · 51:12
That's been proposed for a long time. Here, we pay for your education
Kara Swisher · 51:16
Feels wrong.
Scott Galloway · 51:17
And we... You take... Give us one or 2%.
Kara Swisher · 51:19
Oh, it's like the military. My dad did that for the military.
Scott Galloway · 51:22
Well, you serve for a certain amount of time, It's not a percentage of your salary. Right? You just serve for an amount of time. I think I think... I I get it. I think it's headed in the wrong direction. I think I think we need to flip. I think the opportunity is to flip the cost. You have corporate profits at record highs. You have student debt at record highs, which means we need to transfer the cost of higher ed from the students to the corporations. And here's how you do it. You say to Google, you say to Amazon, you say to Salesforce. 30 kids in my class are gonna get offers from Amazon. You say to Amazon, we have an opportunity
Kara Swisher · 51:53
cost you.
Scott Galloway · 51:54
We have an opportunity for a 100 universities... Or I'm sorry, a 100 corporations. We're gonna fast track your ability to get the greatest human capital in the world, but you are going to pay for it. And we we basically pivot the cost from the kids to the corporations.
Kara Swisher · 52:09
Corporations should
Scott Galloway · 52:10
be paying to recruit at these great universities. The the greatest ROI, the... Absolutely the key asset of any company isn't artificial intelligence. It isn't technology.
Kara Swisher · 52:21
Access to these students.
Scott Galloway · 52:22
It's it's access to incredibly well trained, hardworking human capital that hasn't collected dogs and kids and is willing to work around the clock for 80 for 40% of the of the cost of that 40 year old VP and do a 110% of the work and add value. This is the secret sauce. Show me a company that's added $10,000,000,000 in market cap over the last twelve months. I'll show you a company that recruits incredible young human capital. Charge them for it.
Kara Swisher · 52:49
And it shouldn't just be just the high level, the smartest, and most driven. It should be everybody like you say, you know, when you talk about UCLA. It should be plumbing and electrical. You know, one thing I have noticed here is a couple of stores are closed parts of the week because they can't get enough employees, and so they're focused on their most profitable times. So they're not open all the time. And that's what they were telling me at this one. There's a little ice cream place that makes delicious ice cream here, and they're like, we're only open. We figured out when our most profitable times and busy times were, and we're only open then because we can't get enough staff. And that's where we focus, we do just as well. And that was super interesting to me. But, you know, the ability to attract employees is something everybody at every level is struggling with. So I would agree.
Scott Galloway · 53:42
Well, especially especially the front line. I was on a flight in Colorado, New York on United Airlines, and I hadn't flown in a while.
Speaker · 53:48
Yeah.
Scott Galloway · 53:49
They have had it. Yeah. It's like I made the mistake of keeping my laptop open while we were on descent. And this guy came over to me, and I thought he was gonna take me and my laptop and kick our ass off the plane. They have had it. Can you imagine the last two years Yeah. Frontline workers have had?
Kara Swisher · 54:06
I... If I was a flight attendant with everyone yelling about meth I can't
Scott Galloway · 54:10
see that.
Kara Swisher · 54:11
They did say.
Scott Galloway · 54:11
I just can't see that.
Kara Swisher · 54:13
I mean,
Scott Galloway · 54:13
I can't airline from hell is that called?
Speaker · 54:15
Oh my god.
Kara Swisher · 54:16
I would take super glue and super glue it onto someone's face if they gave me any trouble.
Scott Galloway · 54:21
Oh god.
Kara Swisher · 54:22
Anyway, you got a question of your own. If you like to answer it, send it our way. Go to nymag.com/pivot to submit a question for the show or call 85551 which is a great brand, by the way. Alright, Scott. One more quick break. We'll be back for predictions.
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Speaker · 55:22
That's the most important thing we should be focusing on right now.
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Speaker · 55:36
Meaning that the opportunity to pass the policies that the majority of our state supports, things like increasing minimum wage, legalizing marijuana, codifying abortion.
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Speaker · 55:59
That's all on the table with the democratic trifecta.
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Speaker · 56:06
We have an opportunity through Wisconsin to actually start improving the brand for Democrats.
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Scott Galloway · 56:20
So a little behind the music for the fans here. We've spent the last ten minutes listening to Brenda Vaccaro yell at her family to be quiet.
Kara Swisher · 56:27
Alex, I hear you. You're like a thundering herd of elephants. Go sit down quietly.
Scott Galloway · 56:34
It strikes me. You... Everyone is so scared of you except anyone related to you. Yep. And by the way, is that Casey Newton in the background? You have the weirdest I don't like, lifestyle. Is Maureen Dowd watering your plants right now?
Kara Swisher · 56:47
No. She lives in DC.
Scott Galloway · 56:49
It's Nicholas Kristoff. He's here to wash the cars. It's like journalists roaming around your house.
— Predictions segment begins —
Kara Swisher · 56:54
Yes. We are very... We're the Partridge family is what we are. Okay, Scott. You gotta really do a good prediction this week. Beyond streaming, that was last week. That was a good one though.
Scott Galloway · 57:04
My prediction. So what's happened at BuzzFeed is basically an Easter parade compared to what's about to happen to private companies all across America. And that is the detail that wags the dog here is the public markets. The public markets have been creamed across growth companies. And every... Or not every. 50 to 80% of boards of unicorn companies are asking the CEO for... To revise their plan for, 2022 and 2023. They're gonna look at the plan. They're gonna send it back and say, we need you to make the following tweaks, which is Latin for we need you to lay off people.
Speaker · 57:41
Oh, wow. Okay.
Scott Galloway · 57:42
The layoffs at BuzzFeed were actually not that big. I think it was, like, one and a half percent of the workforce. You're gonna see in the next three to... In the next six months, once a week and once there's some cloud cover from some some high flyers that do this, you're gonna see layoffs in the hundreds of people, at some of these unicorns. They just got way out over their skis. Yeah. And when the market... When VCs and their boards realize, no. We're not worth $3,000,000,000. We're worth 300,000,000, and we're gonna run out of capital if we don't type... There's gonna be some major belt tightening over the Is next
Kara Swisher · 58:17
it because you've been on your own company boards? Is that what's happening on your boards or the companies are
Scott Galloway · 58:22
It depends which company, but every every board right now, especially of a growth company where literally capital is infinite and it was just all about growth, is really having take a hard look nervousness.
Kara Swisher · 58:33
A little nervousness. Right?
Scott Galloway · 58:35
Take a hard look at the numbers. Well, your benchmark for what you're worth is off 80%,
Kara Swisher · 58:41
Yeah.
Scott Galloway · 58:41
You've gotta you've gotta recalibrate. So we're gonna see
Speaker · 58:44
It happened to Fox and BuzzFeed. That's a great prediction.
Kara Swisher · 58:47
I think you're right. I think people at the same time never been more jobs. Unemployment isn't at record low. So lots of jobs out there. It's just where
Speaker · 58:55
they are. Correct? That's what you're saying.
Kara Swisher · 58:57
Will that create more startups? Will that create more startups?
Scott Galloway · 59:01
Your term is the right one. The great reassessment. A lot of people are deciding to start small businesses. And what I would tell the young people, I talked to a lot a lot of young people when they get laid off, I'm like, don't bring your full self to work. This isn't about you. You're gonna get... There's very few people that haven't been laid off at some point in their career.
Speaker · 59:17
Right.
Scott Galloway · 59:17
This isn't, you know, ask yourself if it was about you. If you were an asshole or distracted or just not very good at this, then you need to learn from that. Otherwise, just mourn for a week and move on. But, I've never bought that people bring... Should bring their full selves to work. I think that's just such BS. This is this is an inanimate legal entity that can provide economic security for you. Be loyal to the people there. But if you get laid off, it's likely it's likely not about you. And it's a great time to start a business. I'm more bullish on entrepreneurship, which creates twothree of new jobs than I've ever been. And it's supported by the number of new businesses being formed. And the great thing about starting a new business coming out of a time like this is that consumers and businesses are reevaluating how they do business, which lends itself really well to new businesses. They're open to new ideas and new ways of doing businesses and new ways of spending money. So one of the silver linings coming out of the pandemic is a boom in entrepreneurship. It's very it's very exciting.
Kara Swisher · 1:00:15
That is a fantastic bridge. And one thing I did notice is, as you said, lots of businesses closed after they got the the money from the pandemic money. I've noticed a lot of little businesses opening all of a sudden too in the closed spaces. Very... And new new restaurants. So it's always, you know, it is what it is, and there's renewal at some point.
Scott Galloway · 1:00:37
Churn is good. There's certain there's certain Yep. Pyrolytic plants that only germinate after a fire.
— Predictions segment ends —
Kara Swisher · 1:00:42
Yep. Absolutely. Okay, Scott. That's the show. We'll be back on Tuesday with more pivot. I will be in a quieter place. My family's very noisy this morning, very early in San Francisco. I'm not sure why. They usually sleep late. In any case, why don't you read us out, and we'll see you on Tuesday.
Scott Galloway · 1:01:02
Today's show is produced by Lara Naiman, Evan Engel, Taylor Griffin, Casey Newton, Amanda Katz, and Kara's 11,000,000 children. Learning Energy taught engineered this episode. Thanks also to Drew Burrows and Miel Silvario. Make sure you subscribe to the show wherever you listen to podcasts. Thanks for listening to Pivot from New York Magazine and Vox Media. We'll be back next week for another breakdown of all things tech and business. Madeleine Albright, secretary Albright, forceful yet dignified.
Kara Swisher · 1:01:26
You go, girl.
