WEBVTT 00:00:00.080 --> 00:00:02.957 There's basically, right, three components to the American dream, right? 00:00:03.040 --> 00:00:05.597 There's house, you know, have a have a house, have a a house for your kids, 00:00:05.680 --> 00:00:07.917 where and you know, kind of by definition, this goes back to the 00:00:08.000 --> 00:00:11.037 geographic lens. The house needs to be like near a place where there's like 00:00:11.120 --> 00:00:13.757 great job opportunities, right? So, it can't be a house in the middle of 00:00:13.840 --> 00:00:16.797 nowhere. It has to be a house where there's going to be great jobs um and 00:00:16.880 --> 00:00:20.157 you know, a safe environment and so forth. Um, number one. Number two is is 00:00:20.240 --> 00:00:22.877 is healthare. You need, you know, great healthcare for you and your family. And 00:00:22.960 --> 00:00:26.557 then three is education. You want to send your kids kids to good schools. Um 00:00:26.640 --> 00:00:30.237 if you disagregate sectors of the economy over the last 25 years, what you 00:00:30.320 --> 00:00:33.757 find is basically everything that technology touches basically collapses 00:00:33.840 --> 00:00:38.717 in price. Um and so television sets and you know computer games and you know 00:00:38.800 --> 00:00:41.837 everything you know anything with electronics in it basically that the 00:00:41.920 --> 00:00:44.797 prices productivity growth in those sectors has advanced very fast. Product 00:00:44.880 --> 00:00:47.597 prices prices have have uh have collapsed. Everything is is much 00:00:47.680 --> 00:00:51.117 cheaper. Um but if you chart uh housing, 00:00:51.200 --> 00:00:55.037 education and healthcare um the prices of those things are skyrocketing, right? 00:00:55.120 --> 00:00:58.477 And and we all we all you we all see this. It's just the price of housing is 00:00:58.560 --> 00:01:01.357 exploding, the price of education is exploding, and the price of healthcare I 00:01:01.440 --> 00:01:06.637 mean healthcare is 20% of the economy on its way to 50%. Um and uh and so the the 00:01:06.720 --> 00:01:10.157 prices are exploding and and and so it's like okay what what makes healthcare 00:01:10.240 --> 00:01:12.957 what what makes those three components the American dream have these exploding 00:01:13.040 --> 00:01:15.037 prices? It's basically it's two things. 00:01:15.120 --> 00:01:18.397 Number one is uh and these are interrelated but number one is 00:01:18.480 --> 00:01:21.837 technology is not really touching them very much. that and you could say the 00:01:21.920 --> 00:01:25.197 tech industry has done a bad job at addressing housing and healthcare and 00:01:25.280 --> 00:01:27.837 education or or you could say that you know those industries have been 00:01:27.920 --> 00:01:30.797 resistant to it. Uh but technology hasn't really touched them that much 00:01:30.880 --> 00:01:33.997 which means that they productivity growth hasn't happened in them. Um and 00:01:34.080 --> 00:01:36.957 then the other thing is they're heavily regulated. Um they're they're heavily 00:01:37.040 --> 00:01:39.357 dominated by the government. they're heavily regulated. And then in all three 00:01:39.440 --> 00:01:43.837 of those sectors, uh, the government both restricts supply, right? And so 00:01:43.920 --> 00:01:47.757 zoning laws and university certifications and so forth, right, mean 00:01:47.840 --> 00:01:51.837 that it's very hard to actually build new of of those three things. Um, and 00:01:51.920 --> 00:01:54.797 then the government responds to the political pressure caused by the rising 00:01:54.880 --> 00:01:58.317 prices by subsidizing demand. And of course, if you subsidize demand and a 00:01:58.400 --> 00:02:01.437 fix supply, you get skyrocketing prices, right? Right? And so every time there's 00:02:01.520 --> 00:02:04.477 a housing cris, you know, it's perpetual housing crisis in California, the answer 00:02:04.560 --> 00:02:07.517 always is subsidies for home buyers, which always has the effect of driving 00:02:07.600 --> 00:02:12.397 prices up further and making the problem worse, right? Um and so so so like that 00:02:12.480 --> 00:02:15.997 that that drives, you know, those are the microeconomics of of what's 00:02:16.080 --> 00:02:19.597 happening. Um I don't think there's easy answers on this. I but I think the 00:02:19.680 --> 00:02:22.637 acknowledgement that this is in fact what's happening. And then I think the 00:02:22.720 --> 00:02:25.837 the peop I think the people have to decide that they do not want to live 00:02:25.920 --> 00:02:30.157 this way. I I I think like or the marginal American voter needs to decide. 00:02:30.240 --> 00:02:33.117 It's just look, it's just not acceptable that if I can't spend $3 million, I 00:02:33.200 --> 00:02:35.837 can't have a house that's in a good neighborhood with a good job attached to 00:02:35.920 --> 00:02:39.117 it. And it's just not acceptable that a four-year college degree is going to 00:02:39.200 --> 00:02:42.077 cost a million dollars, which is which is what it's on its way to doing. And 00:02:42.160 --> 00:02:44.797 it's just not acceptable that like this healthcare, you know, monster is running 00:02:44.880 --> 00:02:48.557 out of control. Um, and and so, you know, it it you know, in many ways, like 00:02:48.640 --> 00:02:51.517 this is like the fundamental, you know, policy political question of our time, 00:02:51.600 --> 00:02:54.477 you know, that kind of kind of needs to be dealt with. Again, these issues 00:02:54.560 --> 00:02:57.997 become much easier to deal with in a high growth environment, right? um in in 00:02:58.080 --> 00:03:02.157 a in in an environment with very rapid technological development. Um let let me 00:03:02.240 --> 00:03:04.157 give you the good news story on on healthcare. Everybody talks about 00:03:04.240 --> 00:03:07.037 healthcare. You can't break these curves. There's one area of healthcare 00:03:07.120 --> 00:03:09.917 that is incredibly sophisticated, technologically advanced and the price 00:03:10.000 --> 00:03:13.037 curve looks like Moore's law. The price curve looks like video games. The price 00:03:13.120 --> 00:03:16.237 curve is just a straight line down and the quality of the service has gone way 00:03:16.320 --> 00:03:20.237 up and and that's Lasic eye surgery, right? And and the reason it's and the 00:03:20.320 --> 00:03:22.637 reason that's the case is because it's it's outside the system. It's a 00:03:22.720 --> 00:03:25.917 discretionary purchase paid for by the consumer. Um, you know, and the the 00:03:26.000 --> 00:03:29.437 Lasic Eye studios are in like strip malls. Um, and they've got like, you 00:03:29.520 --> 00:03:32.317 know, three people and like a super advanced, you know, incredibly advanced 00:03:32.400 --> 00:03:35.677 like laser eye machine. Um, and you go in there and you get zapped and you have 00:03:35.760 --> 00:03:39.597 perfect eyesight and it every year it gets better and cheaper. Um, and so 00:03:39.680 --> 00:03:42.637 that's like an example of what happens if you're able to touch these sectors 00:03:42.720 --> 00:03:45.597 with technology and if you're able to get them out from under all the 00:03:45.680 --> 00:03:48.877 regulatory and government overhang. And so that that potential exists I think 00:03:48.960 --> 00:03:52.237 throughout the system. But but fundamentally we have to decide we want 00:03:52.320 --> 00:03:55.197 it and and fundamentally the population of the country has to decide that it 00:03:55.280 --> 00:03:58.520 wants it.