Scott Galloway · 1:05:00
This is very self absorbed. I've decided, unless it's someone I'm friends with, like Stephanie or Anderson or Michael Smirka, you know, I'm name dropping right now, I don't... The juice isn't worth the squeeze. I know my partner. At the viewership. And not only that, in order to get ratings, they have fucking food fights, like whatever that show is with Abby Phillip. It's no longer news. Everyone's becoming foxy. Unless you're on The View or Morning Joe, if you have your own platforms, the juice isn't worth the squeeze. There's some prestige to being seen on MSNBC. There's... You do it every once in a while. I used to go on once or twice a week. You do? I don't go on anymore.
Kara Swisher · 1:05:38
Yeah. I know you don't. Juice is not worth the squeeze. Alright, Scott. One more quick break. We'll be back for predictions. Brussels clean up nicely at Sweetgreen. Maple glazed, roasted, and edges perfectly caramelized. Sweetgreen's fall harvest is back on the menu, and the season's most overlooked little green vegetable is dressed to be devoured. You know what to do. Order on the Sweetgreen app.
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Kara Swisher · 1:06:38
We just moved into our new house and I didn't realize just how close we were to the neighbors. That's when my friend told me about blinds.com.
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— Predictions segment begins —
Kara Swisher · 1:07:13
Okay, Scott. Let's hear a prediction. Can I do a short one?
Scott Galloway · 1:07:17
Of course.
Kara Swisher · 1:07:17
Right now, as we record, Trump is set to host the big tech leaders, including Tim Cook, Mark Zuckerberg, and Sam Altman in the Rose Garden Club, as he's calling it. I think he's paved it over and put up a parking lot. Interestingly, Elon was not on the invite list, and Trump had had just recently given an interview with Scott Jennings speaking of Food Fight, who's on the Abby Phillips show. And and he wasn't on the list, which was somewhat interesting, but Trump said that Elon has to come back into the fold. He has to. And I thought, does he? Does he have to? Anyway, I just was interested to see what would happen. I'm not so sure he'll come back in the fold. He may back J. B. D. Vance. He may back someone else. He may stay in the Republican fold because the Democrats won't be having him anymore. But, but it was just interesting to me that Elon wasn't there. And I'm not so sure he's gonna be as cooperative as they think he is. He's not a cooperative person. That's my prediction.
Scott Galloway · 1:08:12
I think he's got bigger fish to fry right now.
Kara Swisher · 1:08:14
Think he's
Scott Galloway · 1:08:14
on the verge
Kara Swisher · 1:08:15
of
Scott Galloway · 1:08:16
losing 60, 80% of his net worth. I was in Brazil last week. Every time I got in an Uber, it was like this nice, clean, little Tesla like car called a BYD. Do you know the BYD Sunny that goes for $8,000? Mean, they are doing, the CCP has asked automobile manufacturers to stop lowering their prices. You can get a decent brand new car in They're cool.
Kara Swisher · 1:08:41
They have all these cool features.
Scott Galloway · 1:08:43
Thousand dollars.
Kara Swisher · 1:08:44
Yeah. And they're cool.
Scott Galloway · 1:08:45
Average price of a car in The US, new car, is $50,000. The average price in China, 21,000. You wanna make things more affordable for young people? Partner with the Chinese and adopt these types of dark, you know, dark factory manufacturing technique... Competition. Anyways, he's got bigger fish to fry.
Kara Swisher · 1:09:05
Hey. By the way, Elon said that 80% of Tesla's value will eventually be optimist, the humanoid robots the company's been developing.
Scott Galloway · 1:09:11
I don't Yeah. Look over here.
Kara Swisher · 1:09:12
Mark Benioff put one up, and it couldn't get him a Coke,
Scott Galloway · 1:09:14
which Yes. Look.
Kara Swisher · 1:09:15
Mark, stop it.
Scott Galloway · 1:09:16
I I don't wanna talk about my core business because it's about... It's imploding. So I'm gonna create a bunch of... The Reboven. That was my favorite Oh,
Kara Swisher · 1:09:23
remember that? The Reboven? Yeah. What happened? The Reboven.
Scott Galloway · 1:09:27
Robots.
Kara Swisher · 1:09:28
Alright. What's your
Scott Galloway · 1:09:29
Mine is boring, but it's boring stuff that moves the needle. So the appellate court basically said that these tariffs are illegal, that Trump illegally enacted the kind of Emergency Powers Act when this wasn't really an emergency. Bush did it after the nineeleven attacks, where you can actually take exceptional action around pricing under the auspices of some sort of national security threat. The appellate court has basically said, no, this doesn't justify the emergency such that you can do unilateral tariffs without congressional approval. If it goes to the Supreme Court... Now, a lot of people have said that he has workarounds. There's other ways he can implement tariffs. If the administration were to decide to try and figure out a way to declare victory and leave and walk back these tariffs and say, Oh, we never intended to keep them. It was a means of negotiating. We have all these great new deals and frameworks and agreements. And if Uruguay decides to implement, you know, more a different trade agreement, and these are all frameworks, not agreements, fine. They're allowed to do that. But if they decided or the Supreme Court upholds this and the Trump administration figures out a way to spin this and walk back the tariffs, which have gone from an average of 3% to 17%, and what do we see? On average, for every 1% increase in tariffs, we see a 10 basis point decrease in GDP. So our GDP growth, right, was supposed to be around 2.8. It's been cut in half to 1.4. That may not sound like a lot, but that's the difference between doubling the economy every thirty years versus doubling the economy every fifty years. If they figure... If the Supreme Court upholds that this is, in fact, these tariffs were illegal, and the Trump administration decides to try and figure out a way to use this as cloud cover to walk the tariffs back, declare victory, and leave off a fucking disastrous policy from one of the two most dangerous people in the world right now, Peter Navarro, second only to RFK Jr, you are going to see one of the biggest weeks in Dow and Nasdaq history. Because all of a sudden, they're gonna go, okay, we're gonna add another one or one and a half percent GDP growth when we back away and we pull our heads out of our asses.
Kara Swisher · 1:11:48
Let's go, Brandon.
Scott Galloway · 1:11:50
If the Supreme Court upholds that this is... These tariffs are illegal, and the Trump administration decides not to double down and walk these things back, a step back from the wrong direction is a step in the right direction. If those two things happen, you're gonna see the biggest day in the markets of the last few years because the underlying economy has been surprisingly robust.
Kara Swisher · 1:12:12
Jobs are jobs are starting to get tightened up. But go ahead.
Scott Galloway · 1:12:15
Yeah. But if we take away if we take away this nonsense of the tariffs and say, okay, just kidding. We're declaring victory in leave. We've these great deals, but we're going to pull them back to where they were, overnight, we accrete 1.5% GDP growth. So, that decision I mean, this was a big decision. What
Kara Swisher · 1:12:36
if the opposite happens?
Scott Galloway · 1:12:38
Well, I think the bottom line is what you're seeing is, again, the tariffs are yet another transfer of wealth from the four ninety three old economy companies in the S and P to the seven new economy companies. Because Broadcom, to a certain extent, NVIDIA with this vig they've got to give, which is just socialism. But in general, the companies that have been hamstrung in terms of their ability to plan or actually see their costs go up and shareholder value go down are exactly the wrong companies we want to hamstring right now. It's the 409... It's Caterpillar. It's P and G. Whereas the big guys, who now represent 40% of the market, have been totally unfettered. You're helping
Kara Swisher · 1:13:19
They're in the Rose Garden right now, clawback.
Scott Galloway · 1:13:21
You're helping seven companies when you punish four ninety three. So all that's happened here is a transfer of wealth from old economy companies that actually needed the help more than anyone to the new guys who are the last companies that needed it. So I think you would see a really healthy rise in the S and P four ninety three, if you will, if they do away with these tariffs. Because Meta doesn't care about tariffs. It really doesn't affect No, doesn't affect them.
Kara Swisher · 1:13:46
They're not making anything.
Scott Galloway · 1:13:47
But this will be the biggest market moving decision in a while if this happens. This is a big deal. It's giving them... I almost see it as an opportunity for the Trump administration to declare victory and leave and say, well, I never... I'm a gamesman. I'm an incredible dealmaker. I threatened these things. We got amazing deals, but now we're... The market's getting a little yippy, he'll say something, so we're walking them back. But this was a huge victory for us. I I forced them to get... You know, come to the table and do all these great economic deals. But, anyways, my prediction, if the Supreme Court holds it up and the Trump administration signals they're gonna roll some of these ridiculous tariffs back and we're gonna accrete overnight one to one and a half percent additional GDP growth, watch the market scrape.
— Predictions segment ends —
Kara Swisher · 1:14:31
All right. I love it. I love it. Next... On our next show, we will be talking about RFK Jr. What a fucking murderer that guy is. He's a murderer 100%. Anyway, the Florida vaccine thing. God, I was a little concerned about you. Polio.
Scott Galloway · 1:14:46
I had, I think, what, 17 or 14 vaccines by the time I was 12.
Kara Swisher · 1:14:51
Well, that's the problem.
Scott Galloway · 1:14:53
Fluoride?
Kara Swisher · 1:14:54
I know.
Scott Galloway · 1:14:54
I mean
Kara Swisher · 1:14:55
That guy who's the Florida doctor in charge is a fucking idiot. Like, that guy is, like, so stupid and arrogant. I've never seen such a performance.
Scott Galloway · 1:15:04
That's DeSantis announcing that he still believes he can be president and wants to be the inheritor to MAGA in
Kara Swisher · 1:15:09
twenty years. Agreed. It was funny. There was a picture of two women who had so much Botox in him and says, don't let anyone tell you to put in your body. We don't wanna put substances. I was like, yeah. No. You don't need it all the time. And now you'll be preserved. So all of it turn... They'll find you hundreds of years from now in a crypt, and they'll be like, oh, look. They're still here. Anyway, we'll talk about him.
Scott Galloway · 1:15:29
Yeah. It's been a great summer for Rubella and Measles.
Kara Swisher · 1:15:30
Yeah. They're about to do missus a Measles, like you said.
Scott Galloway · 1:15:33
They're about to do a reuniting tour. By the way, I saw Oasis. I couldn't be any wider. I went to that Taylor Swift concert, I saw every white 15 year old girl. This is where their parents go. They go to the Oasis con...
Kara Swisher · 1:15:44
Their concert. How was it? Many people have spoken of it. Tim Miller loved it.
Scott Galloway · 1:15:48
I thought it was fantastic. I I like Oasis. I didn't love them. I went to the concert. It was amazing, but I love the backstory. It's two brothers.
Kara Swisher · 1:15:55
Yeah. They hated each other.
Scott Galloway · 1:15:56
And they hated each other. And I love money solves all problems. A promoter came to them.
Kara Swisher · 1:16:00
That's why we're together again.
Scott Galloway · 1:16:01
That tour on a much bigger level. Supposedly that tour is gonna generate a billion dollars. I went to MetLife. The stadium was packed, and people were
Kara Swisher · 1:16:08
rocking know. It was supposed... They've they've done a good job. They've done a good job.
Scott Galloway · 1:16:12
The two brothers said, I hate you. I hate me, but I like $50,000,000 more than I hate you. Yeah. They have That's decided to put their
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Kara Swisher · 1:16:20
they're bringing it. Hear they're bringing Like, there's a couple of concerts I've seen videos of that I'm like, you need to stop concerting David Lee Roth.
Scott Galloway · 1:16:27
Saw... And I saw Lady Gaga.
Kara Swisher · 1:16:29
Oh, that was supposed to be a great concert too.
Scott Galloway · 1:16:31
Different. It was in such a contrast between old rock and roll. Oasis is just a couple of white guys who grew up playing the guitar with great voices. They're just rock and rollers. Lady Gaga is Broadway meets cinema meets opera meets ballet. It is a it is a real performance.
Kara Swisher · 1:16:51
I heard that. I heard that. I wanna see it. I think... I wanna
Scott Galloway · 1:16:53
see Dolly Parton in
Kara Swisher · 1:16:55
in, at Las Vegas. Can you buy
Scott Galloway · 1:16:58
me tickets? Dolly Parton.
Kara Swisher · 1:16:59
$3,000 tickets.
Scott Galloway · 1:17:01
Is that what... I... She deserves every penny.
Kara Swisher · 1:17:03
Go... You know what?
Scott Galloway · 1:17:03
I'll be fantastic.
Kara Swisher · 1:17:04
You and I should go. Anyway That'll be fantastic. Traveling a lot this this this fall. Anyway, we wanna hear from you. Send us your question about business tech or whatever's on your mind. Go to nymag.com/pivot. Submit a question for a show or call 85551 Scott, as I said, I'm thrilled you're back.
Scott Galloway · 1:17:21
Thank you, Karen.
Kara Swisher · 1:17:21
I'm glad to have you back here at home.
Scott Galloway · 1:17:23
Thank you for saying that.
Kara Swisher · 1:17:24
The kids missed you. Okay. That's the show. Thanks for listening to pivot, and be sure to like and subscribe to our YouTube channel. We'll be back next week. Scott, read us out.
Scott Galloway · 1:17:34
Today's show is produced by Lara Naaman, Zoe Marcus, Taylor Griffin, and Kate Gallagher. Ernie Intratide engineered this episode, Jim Mackle, edited this video. Thanks also to Gibralos, Miss Rivera, and Dan Shalon. Nishat Kurwa is Vox Media's executive producer podcast. Make sure to follow Pivot on your favorite podcast platform. Thank you for listening to Pivot from New York Magazine and Vox Media. You can subscribe to the magazine nymag.com/pod. We'll be back next week for another breakdown of all things tech and business. Kara, Zoe, Taylor, Lara, Kate, thank you so much for, giving me this much time and, doing such a great job. It's very generous of everybody. Anyways, we're just just very grateful
Kara Swisher · 1:18:11
Drew.
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Scott Galloway · 1:18:11
time off. And... Well, Well, Drew knows it. Drew's here right now. Okay. Anyways, I'm rubbing my fingers through his hair as we speak off camera. Anyways, thank you everybody, and it's great to be back.
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Scott Galloway · 1:19:31
Afternoon glare totally ruined my watch party for the big game. That's when my buddy recommended blinds.com.
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