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