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little known New York State Assemblyman Zoran Mam Donnie took the internet by storm this week shocked the world
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beating out Andrew Cuomo for the Democratic nomination here's the poly market chart just crazy one month ago
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Cuomo was at 93% zoron had a 6% chance my lord what a flip a couple of things happened that
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led to this obviously a bunch of viral moments he's a great speaker reminds me of Vake in in that regard really good uh
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you know in debates and and speaking publicly started rising in the polls got a ton of endorsements from millennials
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Gen Z AOC endorsed him as well and uh now he is mom Donnie is the 75% favorite to beat Eric Adams but looks like Eric
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Adams is going to get a shocking amount of support because people don't want a Democratic socialist who's got some
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really unique and colorful history of becoming the mayor of one of the greatest cities in the world my hometown
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he wants to have free buses doesn't sound like that big of a deal he wants to freeze rent and triple the
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development affordable housing city-owned government grocery stores that sounds crazy a $30 minimum wage new
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York's at 1650 by the way uh he wants to defund the police replace the cops with
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social workers in high crime areas a bunch of really wacky interesting proposals and uh you were I think on to
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this early Freedberg in your predictions last year you saw this coming again if you listen to the number one podcast in
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the world you're going to get this information a year earlier than everybody else that's why we are the
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number one podcast in the world freeberg maybe you talk a little bit about your prediction last year and uh where we are
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right now and your reaction to this i don't know perplexing shocking is this perplexing shocking or obvious to you
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for me it feels like actually a little bit of a beginning of a wave that's going to continue to sweep over this
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country starting in cities and I think that we're at the very early stages i think we'll look back and I jokingly say
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that Kla Harris is going to look like a conservative candidate pretty soon and I
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do think that this is a broad kind of reaction to the economic condition of the United States and I've talked a lot
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of people don't quite recognize and see how important the debt and the deficit is with respect to how it's ultimately
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going to lead to socialism as it has every single time in history when you've had a free voting democracy a
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representative democracy that becomes encumbered with too much debt so Nick if you'll pull up this chart it'll just
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show you a microcosm of it and specifically how it played out in New York and how it will continue to play
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out in cities this is the total amount of student loan debt in the last 20 years the student loan debt has
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ballooned from 500 billion to two trillion four million college graduates per year in the United States about 40%
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of them have student loan debt that they leave that means that in the last 20 years 80 million people young people
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have graduated from college and they've accured $ 1.5 trillion of new debt and based on the percentage and the
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distribution that means the average debt for these individuals is sitting around
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$60,000 so you're a young person where do those young people go where do they live and
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remember there's about 32 million of them they live in cities they don't go back to rural towns most of that
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population sits in cities it sits in New York sits in Los Angeles sits in Seattle
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sits in San Francisco sits in Portland and sit in Chicago and what we're seeing in those cities is a massive political
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shift people call it left but it's actually quite different than just being more traditionally left it's really a
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revolution against the system that brought them to this moment because the promise that we gave in America the
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American dream was if you will go to college you will graduate you will have income you will have stability you will
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be able to buy a home and what we did is we increased the government's role in making that dream possible and in doing
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so we created effectively a system where we gave unrestricted access to capital which inflated the cost of education
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people could go to school like Zoran and major in African studies at Bowden College they could get a a loan and
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graduate with 200 $300,000 of debt and then never get a job the guy has not had a real job and this is the truth for 32
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million young Americans they find themselves living in places where they cannot afford to pay their bills every
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month and they will never get out of the debt cycle that they were thrust into and believe that they were going to be
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able to graduate from and excel in the world and increase they all have what is called negative capital they have debt
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and they will never be able to get out of that cycle so where do you turn in that moment you don't go turn to
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corporations to solve your problems you don't go turn to your friends and your siblings and your family they're not
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going to bail you out you turn to the voting booth and you hear a guy like Zoran show up and say there can be a
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better path forward the better path forward is the government can and should do more to help and in doing more to
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help we will increase government we will tax the rich we will tax the corporations we will take all of that
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capital and we will redistribute it in the form of services and checks and support for all of the people that find
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themselves unable to take care of themselves and this becomes a tipping point when the majority of the voter
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base ends up in that situation where they're that deeply in need where they have negative capital and that is the
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situation America finds itself in today there is no easy answer and there is no easy solution out of this but I can tell
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you one thing for sure that in historical perspective we have seen it time and time again across dozens of
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countries that have embraced socialism to get out of the debt cycle that ultimately absorbs and and swallows up
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the young it swallows up every family it swallows up every person in the working
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class with debt they're swaddled with it and they all try and get out of it by increasing government and embracing
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these socialist concepts and it has never ever worked more government is not the answer less government is we can get
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into that but if you look at the results Zoran won 61 to 39 with college educated
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young people voted for him old people did not as much white people voted for him because they went to college
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non-white people did not as much at the end of the day young collegeed educated white people elected this guy and that
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is the beginning of a wave that will sweep over America and I really do worry about where this takes us so
way to go
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dummies yeah i mean the you're correct he won amongst Asians why it's college educated
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and to put a finer point on it Freeberg it really isn't just college it's the cost of college increases in the cost of
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college degrees have outpaced the wage growth of entry-level salaries by 10x over the last 20 years you could go
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300,000 400,000 not in debt but that might be what you paid for those degrees in those major cities and you don't
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believe in capitalism anymore and you believe that you need to tax the rich just one warning for people in these
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states in these cities we saw this sax in San Francisco we saw the the the doom spiral you and I worked on the Chesodine
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recall and now they have Dan Lori there and things are starting to slowly turn around a bit in Los Angeles we saw this
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with Karen Bass they didn't vote for Rick Caruso he would have been an amazing mayor they voted for
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incompetence and these people are voting for incompetence and a plan that will not work because twothirds of the tax
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base in New York is paid for by the top 10% who are leaving people will leave they will see that Austin and Miami are
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fantastic cities to live in at half the price a third of the price and you get a
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tax break and you can always go back to New York and California and hang out for
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a month and get whatever values left in those cities that hasn't been destroyed by these socialists and the incompetent
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people running them saxs what are your thoughts on what's happening in New York City specifically well you're right that
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every generation seems to need to learn this lesson for themselves because they don't study history and they they don't
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see that socialism always fails wherever it's tried san Francisco went through this i mean it was a doom spiral uh now
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I think we've turned the corner la is in the midst of going through it and a large portion of LA just burned down
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because there's no water in the fire hydrants basically all the public services have been looted
and New York
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is about to learn this for themselves so it just seems like every generation just
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has to learn this there's no way to teach them so I do think that that is one thing that's going on i I do agree
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with Freeberg that a big underlying root cause here is the student debt it's the
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fact that these kids have negative capital they've got no skin in the game they graduate from college with
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worthless degrees and massive amounts of debt that debt was not used to make their education better universities have
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been using the spiraling tuitions to fund massive amounts of bureaucracy you know for DEI and woke and all sorts of
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stuff like that and these kids have no prospect of getting out of debt or being able to buy a home so they just have no
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skin in the game and so this is part of why they're they're turning against capitalism one thing we need to do by
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the way is we need to make the student debt dischargeable in bankruptcy is one of the it's the only kind of debt that
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you can't get out of through bankruptcy and if we were to make that change at least these kids would have a way out
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they have no skin in the game the universities have absolutely no incentive to keep prices down and create
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a competitive or economic incentive for making sure that their degrees work the only group that possibly could would be
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true capital lenders people like banks or underwriters that are saying "Here's a loan because I expect you to be able
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to pay it back." There's no underwriting in student loans today there's no underwriting the student loan program
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the federal student loan program needs to go away because when it goes away if it goes to zero and people might say "Oh
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that's awful you're taking away education." What will happen is the capital markets will flood to fill that
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hole banks and lenders will show up and they will say "You know what we'll underwrite the loans." But they'll
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underwrite it by saying good colleges get the get get loans and bad colleges don't good degrees get the loans bad
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degrees don't and people that are expected to pay back the loans will now get loans and all of the rest of the
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money that's caused everyone to end up in this debt spiral will stop and we'll be able to kind of recover from it
it's
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ironic that a problem that is being caused by government is going to lead to socialism it's going to lead to maximum
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government which will then create the next spiral of problems but I agree with you i think this is very sad