story and he's looking at it as similar to what happens in alaska so alaska has not through any great entrepreneur or innovation but just through sheer luck they have a lot of oil that oil creates a lot of income that then gets shared among the population so he's looking at his universal basic income idea as this is that the u.s. is hugely endowed with not only agricultural goods but a lot of silicon valley. exist purely through the goodwill of darpa and the defense department and 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 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 sherrod 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 can 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 the 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 cars. and cars would pay

extra and that extra would trickle down to people who didn't drive any cars right so you end up with the 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 extractions 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 year this is the model of the economy photosynthesis is a brilliant economic model that's ingenious that is the plan starts essential e 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 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 that free money 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 post i don't have to pick up the costs. the silicon valley folks of san francisco don't have to pay the cost of the homeless people death of gating 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 of that ecology that economy is busted 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 in fact there is so so so much money in the hands of the top one percent get 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 anymore 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 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 various accounts various and businesses 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 super human creature based on their networks you don't become a parallel dimension. dwelling intergalactic robots humanoid cyborg that you're graduating in two years 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 sort 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 so on until volcano. his wealth are well rounded on with that wealth as redistributed now that'll make billionaires think twice about

aggregating billions of dollars like maybe five billion dollars i might lose our windy. 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 big aggregated without any risk and then you become you know your you become you develop the 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 you're getting it for maybe four or five percent on your mortgage right let's be clear everyone loves free for money and they're willing to go money at assets because they all do it as part of a cult of money and they all benefit by asset 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 sort of them away you don't see me now. gold the way the way i thought every young lad i ran out money all the time because it's worthless paper you never see me throw gold coin of gold ounce i've got my gold medal into a volcano because it's real money right so if you have and this is since one thousand seventy one these are not a period of when no country has any any real money it's all for 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 say 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 in 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 because he succumbed ultimately to magical thinking we're in the situation that we are now not max and i am i sitting here in malibu ready for the fires to now not us anyway that's going to this portion of the the report we're taking a break when i come back much more stay right there. breaks it. catch their breath for a single purpose in the face of a superman. you already see. and they save lives.

so it's seemed wrong all right old roles just don't hold. any old belief yet to shape out disdained it comes to education and in gains from it equals betrayal. when so many find themselves worlds apart when she's to look for common ground. welcome back to the kaiser report i'm max keyser time now to turn to leave fox beauregard a gig economy superstar lee walk and thank you that's a cool name fox beauregard sounds like 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. and 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 at this juncture from my experience with the 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 a j. 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 products come together for a few months then they disappear and out to the broader economy if you have a skill set and here are 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 the 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 collar and the white collar and we're seeing extreme trends 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. has not confirmed 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. that we're definitely part of the economy that we grew for that 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 to 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 honestly once 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've 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 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 it's. acknowledge it jonathan is that there's a societal break there's a what's what are you 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 quote subject matter experts i mean you're seeing a wave of entrepreneurs that are emerging and they're 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 knology one and then i also just think it's a personality of a generation there are personality traits that you see morning ells are criticized for being you know complacent and not doing their job but really i think they're just 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 their service but they kind of to modify 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 of 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 do you 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 and 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 a 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 values and. 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 and 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 movement 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. i just think there's a new fluidity i think that this is that ghana 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 as 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 for ever 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 system or for just. don't work so hard but still work and make a difference make money but like don't like. i don't think they want to hoard the way the boomers did so i just want to you know chill out. early beauregard thanks for being on cause report thank you and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i just i got our guests leave phlox beauregard to get caught to me superstar if you want to catch us on twitter it's kaiser report until next time.

i don't know if there was a crack seems to do crack when i was a little kid my dad he was like. us to be so you know i got like what i needed when i was a baby boy i had a bad childhood. there's always been single mothers in african-american communities ever since slavery. i think it's more of a issue these teenagers having kids in you can expect a fourteen or fifteen year old first daughter now ordered for and there be a father and he's a check out. we actually lost our place in october my car you know breaking down and i was unable to get to work on time so they let me go in with my paycheck that i bring home i have nearly enough to pay my car insurance. gas in my car.

they're bred for a single purpose. of a superman. to start training very young. eight months of intensive school. and very save lives. young elephants have come to us off the. best basically brutal budging incidents because sadly the baby elephants often do see their mothers be killed but also be caught up unfortunately. i do believe the elephant smile i see it's a nice little ones they hope they should express some changes. in. the.

i do think the numbers mean something they've mastered us as over one trillion dollars in debt more than ten white collar crime families each day. eighty five percent of global wealth he longs to be old the rich eight point six percent world market rose thirty percent somewhat four hundred to five hundred three first second first second and fifth when he rose to twenty thousand dollars. china's building two point one billion dollars a i industrial park but don't let the numbers over the world. the only number you need to remember is one one business show you know for the mists one and only boom but. after the previous stage of my career was over everyone wondered what i was going to do next the multiple different clubs in one hand it is logical to sit in the

home fields where everything is familiar on the other i wanted a new challenge and the fresh perspective i'm used to suppressing my salt or not if you think. i'm going to talk about football nazi or else you can think i was going to go. by the way ways of the slide here. begs it heads for yet another cliffhanger more delays with the new case prime minister saying that she'll seek a further extension to the withdrawal period offering to sit down with the leader of the opposition. to try and break the deadlock and. the spying struggles with an

unprecedented number of illegal immigrants arriving by sea of people smuggling reveals in a rare interview just how lucrative the business of human trafficking it's. over plus one you can have two thousand two thousand french people four thousand. the totality fifty plus one will have to cut fifty person to fifty seven everybody on financing terrorism.