Wealth Transfer from Young to Old

• Scott Galloway, a professor at NYU, is speaking about the transfer of wealth from the young to the old.

• For the first time in US history, a 30-year-old is not doing as well as their parents were at 30, breaking the social contract.

• People over 55 feel good about America, but less than one in five people under 34 feel good about America, creating an incendiary situation.

• Minimum wage has been kept low, and if it had kept pace with productivity, it would be around $23 an hour.

• The median home price has skyrocketed relative to median household income, making it difficult for young people to buy homes.

• The average mortgage payment has increased from $1,100 to $2,300 due to rising interest rates and home prices.

• The cost of building a home is high due to permits, which are controlled by incumbent property owners who want to limit new entrants and maintain their own net worth.

• There has been an enormous transfer of wealth from the young to the old, with people over 70 controlling 19% of household income and those under 40 controlling only 12%.

• Higher education has become inaccessible and expensive, with universities prioritizing luxury and reducing accountability.

• Harvard University has increased its endowment and enrollment, but has not expanded its freshman class, making it more of a hedge fund than an educational institution.

• Scott Galloway proposes that the government should give $1 billion to the 500 greatest public institutions in exchange for reducing tuition by 2% a year, expanding enrollments by 6% a year, and increasing vocational certifications and non-traditional degrees.

• Corporate profits have increased, but wages have barely kept pace, and the transfer of wealth from labor to capital has been significant.

• The top 1% of people don't need higher education, but the bottom 90% do, and it's the job of higher education to give them a chance to be remarkable.

• The transfer of wealth from young to old is purposeful and not accidental, and it's not just a US problem.

• Senior poverty has decreased, but child poverty remains high, and the focus should be on helping children rather than just seniors.

• The Social Security system is bankrupting the nation and is a transfer of wealth from young to old, with 80% of people not needing it.

• The current system is ageist, and old people vote, which is why the system is rigged in their favor.

• The speaker, Scott Galloway, is ageist and believes that biology is also ageist.• The economy was pumped during the Covid-19 pandemic, leading to an unprecedented transfer of wealth, benefiting individuals like the speaker who saw their stock values explode.

• The prosperity of the wealthy comes at the cost of future generations who will have to deal with an unprecedented level of debt.

• The 2008 bailout of banks did not benefit the economy, allowing the speaker to buy stocks at low prices, which have since increased in value.

• Disruption and innovation are hindered when small businesses and entrepreneurs are not given opportunities, and instead, established businesses are bailed out.

• The rise of social media has led to increased self-harm rates, depression, and anxiety among young people, particularly girls.

• The speaker blames Mark Zuckerberg and social media for contributing to the decline in mental health among young people.

• The graphs presented show alarming trends, including increased gun deaths, obesity, overdose deaths, and deaths of despair.

• Young people are less likely to have children, with only 27% of people aged 30-34 choosing to have at least one child.

• The speaker advocates for increased spending on childcare, housing, and education, as well as progressive taxation and a negative income tax.

• The IRS needs to be refunded, and Social Security should be reformed to prioritize those who need it most.

• The capital gains tax deduction should be eliminated, and identity verification should be implemented on social media.

• The speaker suggests breaking up Big Tech, age-gating social media, and implementing universal pre-K and income-based affirmative action.

• Mental health support, national service, and vocational programs should be increased, and phones should be banned in schools.

• The speaker concludes by asking if society truly loves its children, implying that the current system is failing to prioritize their well-being and prosperity.