all the investment in silicon valley and new ideas he says this idea is new to many americans but it is actually as old as the country itself thomas paine was for universal basic income at the founder of the country he called it the citizens dividend and martin luther king was also for in the one nine hundred sixty s. milton friedman is usually associated with the right way and one thousand economists signed a study saying this would be great for our society and one state has had a dividend for thirty seven years where everyone in the state of alaska gets between one and two thousand dollars no questions asked he's likening his plan to what alaska has right and i've looked at and. stuff and he's absolutely right and you could call this the shared cantillon effect you could look at it as being a mountain session of all the economic extra analyses that get lost in the economy you could look at it in a number of different ways the fact is that the united states generates many chileans of dollars worth of g.d.p.

and does credibly inefficient way that leaves out all the people that are responsible in part to create that g.d.p. and harken back to a couple of decades ago and we were covering this ten years ago carbon credits on an individual basis where people who are driving high gas guzzling cars would pay extra and that extra would trickle down to people who didn't drive any cars right so you end up with a fulcrum you end up with a balance in the economy the point of equal equilibrium in the economy and that's something that economists talk about all the time is this point of equilibrium between supply and demand between. kind of all the incentives that are based in the economy that point of equilibrium needs to be readjusted so that the flow of capital for example as i've. had many times social security accounts should have a mandatory one percent of all stock bond for extra exact. she go into social

security so that every individual will say when they become a team they've got fifty six thousand dollars in there that they can go spend on college if they want to that's a that is a that is an extra analogy of this economy that's being recycled repurposed regenerated into an ecosystem an economy that is like more mimics that of nature it's all feeding nature and that's what the enlightenment is all about that's what i'm smith is all about that's what the invisible hand is all about we live in a very odd economy where do they can tell in effect. ninety percent of the gains are grabbed by one percent of the population you don't see that nature the only way you see that mater is in the cancer model and we don't want to cancer models economy we want what's behind us here. what's behind this or this is the model of the economy photosynthesis is a brilliant economic model that's ingenious that is the plan starts a centrally are turned into oxygen that we breathe where we're breathing plants

starts again that's an ingenious photosynthetic reality that we live in in the economy that we need to mimic in our overall economy and of course you know the united states most of the citizens certainly maybe a few people on wall street do benefit from this you know we have been uniquely endowed with what the founding fathers created with a constitution and a rule of law that has withstood a lot of challenges over the past few hundred years so what i'm saying is that europe asia latin america a lot of places benefit from our basically even listing on the new york stock exchange from our capital markets from our flow of capital so i mean to get a stream from that just from being part of this economy everybody should get that and you know of course one of our greatest wealth the guy himself like personally he might have had some issues but henry ford you know his idea really brought in the american century of the american worker when the wealth in can gab

declined when middle class a merge was not only through the you know the industrial process of assembly line of putting together cars but he recognized that he actually had to pay his workers more money so that they could so he could sell them more cars so that was his incentive but right now because we are in an almost purely financial eyes economy in the u.s. there's no incentive to it's like a limited pie right the free money you get from the fed why share it with anybody unless because they're not going to be able to buy. anything from you from your credit derivatives posted on have to pick up the costs the silicon valley folks in san francisco there have to pay the cost of the homeless people death according on the stream why is that because the extra nowadays of their model are not picked up by the company creating those externalities they rely on the government then prints money and then degrades the value purchasing power of the currency of the u.s. dollar so that's that a college of that economy is bust in conclusion what this guy says is i'm a c.e.o.

and a business person and i'll tell you putting money into people's hands is good for business it's good for the economy it is good for markets this is not socialism this is capitalism where income doesn't start at zero if you think about where americans are going to spend this money they're going to spend it at their local businesses their main street economy and this is a great way to help supercharge those businesses for the next number of years in fact i don't have the headline here but goldman sachs this past week mentioned that america right now has an unusually high savings rate and they said why it is it's that most americans don't have any money at all but in fact they are so so so much money in the hands of the top one percent that they can't even possibly spend it they already have more houses and they some of them even forget they have these houses i think john mccain was one of these people he forgot how many houses he had like they have too many things that they don't even know they can't spend any more money and what the fed keeps on doing the fact that we only have monetary policy we don't have industrial we don't have you know fiscal policy we don't have any of these other policies that will help the ordinary bottom ninety nine maybe even

ninety nine point nine percent those are the people that would spend money because there's an absence of savings there's an absence of money so if you give it to them they're going to spend it where is the rich as they're pointing as goldman sachs pointed out the rich already they have too much savings and they're there they're not able to invest it right there are spending like twenty million millionaires in europe and in the united states once you get past five ten fifteen million and that worth it most people have no idea what they're worth you just you know you just the accounts very sick out. very business as you have no idea because it doesn't matter because you know we live in a can only eat some have a house and we're human beings and you know you don't you don't evolve into some superhuman creature based on their networks you don't become a parallel dimension dwelling intergalactic robots humanoid cyborg that you're graduating into the same certain high school dork you were thirty years ago and it doesn't make any difference so why why is the economy tilted like this ninety

degree angle and you're trying to play billiards or pool for everybody that doesn't work it's completely bogus here's another headline from actually another guy from san francisco who spends half his time there the other half and why say he has quite a nice life and that is charles smith politics has failed now central banks are failing he has been going through a whole series of writings where he believes speaking of the founding fathers that we're on a precipice of a similar set of revolutionary times and that even if you look at any of the literature from like seven eight nine years before the revolution there was no indication of a revolution about to happen and that even like ben franklin one of our one of our greatest founding fathers one of the greatest thinkers he was a total loyalist he was for the monarchy and then he became one of the most radical revolutionaries so charles smith believes we're on that sort of time and he compares today to that and what the failures were then and the number one is that

here's a clue politics has failed when the political process can no longer fix what's broken politics has failed when entire classes of citizenry no longer feel represented politics has failed when the system delivers a steadily declining standard of living to the bottom eighty percent of households politics has failed so that's clue number one that we're on the brink of prove evolution every times well you know i've often advocated for what i call the reverse lottery so every year one of the two thousand five hundred billionaires randomly selected and thrown into a volcano. his wealth or her well earned it all with that wealth as redistributed now that will make of billionaires think twice about aggregating billions of dollars of five billion dollars i might lose our when the reverse lottery this year and want to take that chance you have to the chance the risks have to be constant you know once you have a sort of my money the risk of making money goes down. because you can hedge

everything across the board and that's wrong so your wealth is being aggregated without any risk and then you become you know your you become you develop a god complex i know in the recent times one thousand richest people in the u.k. list their wealth as one hundred percent in the past ten years and that's purely purely because of the money printing so those are asset rich people and the assets are what gets pumped up when the central bank is pumping and that's clue number two for charles to smith having failed the political machinery passed the baton to the central bank which attempted to fix what's broken by creating money out of thin air free money and low cost credit has always been viewed as the go to fix for whatever is broken because it's well free to the issuing central state and politically popular because everybody loves free money free bread and free circuses even like those who ultimately be harmed that they're happy if wal-mart comes in and puts out all the other businesses in the area because my income has gone down and now i

could buy my toothpaste for half the price at wal-mart but here he's saying like. it's driving up asset prices but is driving up asset prices way higher and faster for the top and your asset price might go up but not as fast as the top those who are getting that free money are genuinely zero percent money you're getting it for maybe four or five percent on your mortgage right let's be clear everyone loves free money and they're willing to erode. money assets because they all do it as part of a cult of money and they all benefit by as a price appreciation if it were real money like gold people would have gold ounces in their hands and they're not they're less willing to sorrow them away you don't see me rowing gold away the way i thought every young lad i ran out money all the time because this worthless paper you never see me throw gold coin

a gold ounce i've got my goal into a volcano because it's real money right so if you had and this is since one thousand seventy one he's had a period of when no country has any any real money it's all money and that's got the widest income disparity ever in the history of the world and that's why you have the liaison occupy wall street but i want to stay in thirty seconds here clue number three is america's monetary substitute for political process has failed i love that sentence america's monetary substitute for political process and failed so it is interesting that we've abdicated so much political responsibility member in two thousand and eight when we elected barack obama and he promised to do all these things he was going to rescue the economy and was hope and change but what did he do he abdicated responsibility to the fed and to larry summers crew and robert rubin screw really and these guys these unelected guys with their magical money printing machines all rescue everything and because he succumbed ultimately

to magical thinking we're in the situation that we are now not max and i and i sitting here in malibu ready for the fires to know not us anyway that's going to fix this portion of the cars the report we're taking a break we'll come back much more stay right there. after the previous digit my career was over. everyone wondered what i was going to do next the pope the ball different clubs on one hand it is logical to signal from fields where everything is familiar on the other i wanted a new challenge and the fresh perspective i'm used to surprising. or not if you think. i'm going to talk about football not be or else you can think i was going to do.

by the way ways of the flying here. one else chose seemed wrong when old rules just don't call. me old yet to shape out just they become agitated and engage with equals betrayal. when so many find themselves worlds apart we choose to look for common ground. i know there was a crack seems to do crack when i was a little kid my dad he was like a bust at the so you know i got like what i needed when i was a baby but i had a bad childhood. there's always been single mothers and african american community

service and slavery. i think it's more of a chinese teenagers having kids in you can expect a fourteen or fifteen year old first daughter now order for him if you're far there and he's a chav. we actually lost our place and. my car and breaking down and i was unable to get to work on time sunday let me go in with my paycheck that i bring home i have barely enough to pay my car insurance. the gas in my car. you know world of big part of the lot and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door. and shouting past

each other it's time for critical thinking it's time to fight for the middle for the truth the time is now we're watching closely watching the hawks. welcome back to the kaiser report i'm max keyser time now to turn to leave fox beauregard a gig economy superstar lee walk on thank you that's a cool name fox beauregard sounds a good kind of a superstar you were born to be a good economy superstar all right now we're an amazing property you are the owner of this amazing property and it's available for rent on a few sites including air b.n. b. where you are a super host so what does that mean to be a super host so there's

a couple things one is and you have to be able to take instant bookings and the second is you have to have shown that you don't cancel on gas and that you're consistently giving them a five star opportunity so this is the daily life of a super host and tell us more about how do you able to work to keep the status what would you have to what would it what would happen if you lost that have to do i mean there's a significant amount of income that we get by having the opportunity to host these gas so that would be the first thing and second i think you at this juncture from my experience with air b.n. b. in particular they have amazing people that common you want to work with them it's a pleasure to share your home right so for those who don't know what behind us here this is malibu basically we see the malibu pier so the topic really of this discussion has to do a lot to the gig economy and how this is really becoming a factor in the u.s. economy many economists and opinion makers warn that this gig economy offers only

precarious employment. law within this new economy matrix. so how would you respond to that the sharing economy it's one of the best ways for new revenue streams to come in i mean this made it possible for us to keep the house that we might have otherwise had to sell so i mean i think it's an enormous opportunity for lots of people. right so here we are near malibu and of course that's adjacent to los angeles and the hollywood industry and of course the hollywood industry is you know the original gate economy you know you've got a great. talents and all above the line below the line projects come together for a few months then they disappear and it's worked for generations here in los angeles it seems like that model is being kind of rolled out to the broader economy if you have a skill set and here highly skilled you just kind of roll with it and as projects come you attach yourself to projects this does do away with the notion of job

security as a lot of people brought up with that idea but this is you have to be agile right and what does this say sued the overall economy is it possible for that trend to be rolled out across the economy in general because we have one political candidate in the u.s. andrew yang. who is kind of coming up with this idea that this type of of economy can be rolled out nationally what do you think of this i completely think it's an option we're obviously seeing a whole new set of jobs that are emerging new collar jobs are very different you know the blue collar new color in the white collar and we're seeing extreme trends of opportunities where maybe you're not going into a four year career for your college and you can take a new career path so folks are doing college they get a lot of debt and that's a huge obstacle to gaining some traction in the economy here this is all very fast

moving now it's this i.p.o. the initial public offering is coming and there's been some unconfirmed reports that air b.n. b. may offer equity to super hosts air b.n. b. is not to confirm this believe that is also trying to talk about this in terms of sharing equity with their drivers so this would be allowing the economy folks to. participate in equity in an i.p.o. what are your thoughts there i think it's strategically really smart you want to incentivize employees we're not technically employees but we're definitely part of the economy that we grew for them i mean they are. was the valuation just at thirty four billion right something you know our revenue contributes to that they want to keep us happy as well so i think that's a really strategic smart thing to do right and so this just speaks to a transformation in the economy and decide that again returning to and through yang's policy it's an idea that i've talked about

a lot about on this show for years that when you look at things like social security for example why isn't there a component that is feeding into that were the american public gets a slice of wall street every deal that's cut on wall street there should be a percentage that goes into social security every stock every bond every four x. exchange there should be you know everyone should be participating in this economy one way or another not just the wall street not just the financier's and so why not why not have an economy that allows for participation on that front what would be the obstacle to that is there any reason why that couldn't happen old thinking is the obstacle i mean i think that you seeing new thinking through the different generations are coming through and once once uninfluenced the boomers make way for the millennium i think you're going to see more and more of these kind of opportunities for the social sharing ok so now you brought up an interesting idea there so the millennial zz this is not going to be the biggest

demographic group ever going to eclipse the boomers and we've got some interesting political action there you got to see on the east coast and she seems to be talking kind of old school lefty socialist platform seemingly you've got andrew young who's now talking about this gig economy and spreading the wealth. on the on the equity side of things. what's going on i mean what do you think what brought this seismic change about was a technology is that there's a societal break there's a what's what do you how what's your take on the globe on the u.s. economy i think technology plays a huge role i think that access to your little micro computer in your hand giving anyone any age the opportunity become couldn't quite subject matter experts i mean you're seeing a wave of entrepreneurs that are emerging in there younger and younger there are i think breaking patterns of what we used to see like conventional work patterns have

completely evolved we used to you know cotai going to an office now people are working out of their homes and virtually so i i think technology one and then i also just think it's a personality of a generation there are personality traits that you see who else are criticized for being you know complacent and not doing their job but really i think they're just more relaxed and they're a little bit more chill with it something is a merger you know there is this phrase if you aren't paying for the app then you are the product if you're not paying for the product you are the product that's in the case of facebook and we now know that they are don't charge for their service but they kind of commodify their users in a big way and sell that data and that but on the flip side these entrepreneurs and these millenniums understand that when you have access to a billion potential customers over the internet and the technology follows the a some pot a curve where the storage in the band with and and all the hardware price keeps

going to zero when you've got access to all these different things is there going to be some kind of flipping if you will where there's just a shift in consciousness and i know this is kind of a long one in question but i remember back in the sixty's when people were dropping acid there was a change in consciousness toward a different mindset it seems like this technology and. run the cusp of a similar change in mindset what are your thoughts on that we clearly understand the value of our own brand these you know the superstars that emerge from you tube and becoming you tube superstars they clearly understand so what you're saying is we are productize and i think they've got it like i've got three kids they know what the value of their like is are or if they subscribe to something they understand that that sharing of their information has value to somebody else it's an issue generation gap because you know this recent scandal involving college admissions. the children of the parents who were engaged in

a fraud or quite upset because their brand has been poisoned by their parents it's a different generation gap it used to be quite different in the sixty's you know forty years ago but can you just talk about that for a second to me that is the most archaic thinking that you could buy your way into something and that's such if horrible horrible thing that they did to those to that to their kids the lack of trust in everything else but i think it exposes you know the weakest side of humanity right to be able to try to pay someone in and not you know go just. you know they have value these children who didn't get into college but they're now left with the message that they probably don't have as much value as they thought. it is this is the atmosphere egalitarian and by this i mean you know the internationally back in the ninety's and early two thousand it was ninety percent white i mean began and now the demographics are changing but do you see is there greater opportunity for everyone across the board and you know i would i

would say to me just as a quick side note it seems especially on you tube you have this is where the movements for. gender identity and trans identity i mean because folks raible to develop huge followings on you tube and they get exposure in ways that have a short in a different mindset to get your thoughts on the. i just think there's a new fluidity i think that this is again a signature of their generation their exploration of who they are as people how they how they want everyone to differentiate everyone wants to be part of a generation that made a difference right so i think that's part of their signature what's going to make this generation happy in other words you know getting a lot of likes and getting a lot of thumbs up is nice and well to us nice it seems like every generation finds a moment when they are questioning you know what in fact that will make them happy in life what when the millennial is ten years from now what will be that moment

that they come to and say you know this was worth it or not worth it what will validate this experience for them how will we know how will they know that they've taken the path towards self actualization wasn't that a question that we all ask ourselves forever but i mean i think if you look at the me too movement you look at all of the things that have happened right now that's getting rid of the old systems the old patterns and i think that the millennial is in the gens behind them are looking more for just. don't work so hard but still work and make a difference make money but like i don't like their i don't think they want to hoard the way the boomers did so i just want to you know chill out. farrah early beauregard thanks for being on class report thank you and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i just i got gassed leave phlox beauregard get caught i'm

a superstar if you want to catch us on twitter it's kaiser report until next on. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race in. spearing dramatic development only personally i'm going to resist i don't see how that strategy will be successful very. time to sit down and talk. i do think the numbers mean something they matter to us with over one trillion dollars in debt more than ten white collar crime happens to. be five percent of

global wealth he longs to be rich eight point six percent world market thirty percent some with one hundred to five hundred three per second per second and when he rose to twenty thousand dollars. china's building two point one billion dollars a mark but don't let the numbers over. the only number you need to remember one one business you know bored to miss one and only whom. i may do good is an outstanding person because he took on the most powerful agency in this county arguably to stay if you look at it from the analogy. marc was the day that when he was five. going to has been the most contentious critics say

he is the first time i noticed something wasn't in fleece work pretty much when i first started the corruption in palm beach county is not something that you can smell or things like that it's. a wing it wasn't what i wanted to do. in this county. then some states have had collectively do good with this website began featuring comments about goals as family the show it's like they're going to squash you like a book and you know we should stop and then you should say and i'm left with stuff i believe what i'm doing now so it's ok you know if you're if you're a living f.b.i. raided p.b.s. and a critic in this house. i snuck out of the united states. into russia political sign. men they know is bad wolf.

financing terror hungry says it's a senior islamic state commander posing as a refugee had been issued with a prepaid debit card an e.u. scheme to help newcomers the. newspaper exposé alleges british special forces are fighting alongside child soldiers in yemen and the saudi incursion has cast a shadow over one of the arms sales to riyadh. and with a deadline for leaving the e.u. just ten days away at the british parliament rejects all table dolphins' to resolve the brics the deadlock making the prospect of crashing out without a deal more likely prime minister's deal that is called refuses

to compromise.