A $213K Dream Now Costs $5 Million — Own Equity Instead
A home that cost $213,000 in 1988 costs $5 million today — and Jerremy argues the math doesn't work anymore. Jerremy Alexander Newsome and Dave Conley make the case that at a 6% loan rate, a house has to triple in value over 30 years before any real appreciation shows up. The new American dream, Jerremy says, is owning equity — not a mortgage. They walk through renting as emotionally unstable but financially flexible, and argue longer rental contracts could solve the security problem, especially for families. Congress leaders who haven't checked a gas price in decades get implicated too. The episode ends with a UBI preview and an open invitation for guests and political disagreement.
Timestamps:
Transcript
Jerremy's been building to this all series...
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:the contract is broken.
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:The American dream cost $213,000
in:
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:that's the PROBLEM.
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:He's got a replacement: the old dream
was a house with your name on it.
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:The replacement might not
have an address at all.
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:Jerremy: I would love for government
agencies to do more help, but.
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:And I want them to, and I
actually believe that they should.
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:And I believe that they should be
held accountable, and I believe they
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:should actually create something
remarkable and powerful for us
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:as individuals and as citizens.
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:And ultimately for me, I think the new
American dream is instead of owning
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:a house, would be owning equity.
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:Because it equity's a
more interesting word.
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:It's a more powerful word.
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:It's a more true word.
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:'cause when you buy a house, you're buying
a house that you can gain equity, right?
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:You can gain ownership value
and profitability in something.
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:That was what was sold to people.
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:But they haven't really ever
looked at the math to understand
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:that they don't go ahead.
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:Dave: Yeah let me ask you about that I
I I think you mentioned that your your
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:your your lovely wife VEA I she has a
certainly a need to to to nest and has
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:a has a has a safety has a grounding
around the ownership of of the home So
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:is there and I don't think she's alone
Like there's a there's a bit of a I
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:I feel it I I rent right And it's the
first time I've I've rented you know in
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:in my life you know in my adult life you
know like there's a certain impermanence
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:there's a certain non-investment in
the community is When you say owning
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:equity what does what does that mean
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:Jerremy: Well, the word, I mean for
me initially can be owning stocks.
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:Dave: Yeah yeah Yeah
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:Jerremy: I think, I think said,
Hey, I'd rather have a thousand
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:shares of the s and p 500.
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:Dave: Mm-hmm
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:Jerremy: Than than a house.
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:Make that your goal.
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:Dave: Yeah
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:Jerremy: You will, you will have
more profitability when you're 60
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:Dave: Hmm
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:Jerremy: you own a home.
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:because when people say, oh, I wanna
own a home, I'm gonna purchase a
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:home, you're not purchasing anything.
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:You don't own anything.
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:You're paying debt.
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:paying the bank an interest loan that is.
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:Almost unprecedented.
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:Unprecedented is not the right word.
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:It it, it is so egregiously high
that if you sit down and do the math,
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:the house has to more than double.
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:Essentially, the house has to triple in
value in 30 years at a six per, like for
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:the boomers, it's got a triple in value.
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:They did it.
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:They, they figured it out.
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:It's got a triple in value,
for you to have after you've
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:paid the house off any actual.
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:Appreciation on your money.
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:That's, that's a wild statistic.
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:The thing has to triple in value.
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:Dave: Yeah That's crazy
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:Jerremy: Yeah.
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:so owning equity, like if we, if we
start renting longer and we make our.
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:Money begin to buy something
that appreciates in value.
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:So if you rent a house, but then you
go and buy an investment house, or you
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:invest into a fund, or you invest into a
business startup, or you start purchasing,
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:AI agents, or you're investing into
yourself, or some, the, the mindset shift
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:is gonna go from the real big shift.
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:The American dream that's gonna
change is instead of owning.
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:Tangible physical things that
we believe are assets you
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:begin to invest into ethereal.
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:Non-tangible things that increase in
value, that actually give you more money.
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:Dave: Hmm
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:Jerremy: And that can be
mindset, that can be coaching,
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:that can be interpersonal work.
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:That's my biggest return by far, is like
spending money on my brain, spending money
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:on my mind, spending money on my health.
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:Those are, in a way, intangible.
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:You can't, like a house, I, I, I have
a couple houses and I can touch them.
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:It's like, okay, I can touch this house.
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:That's cool.
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:This is a physical asset.
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:That's what my brain says.
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:This is a tangible piece of value,
but, but I know the math behind
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:that, and it's, it's just really not,
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:Dave: So who are you renting from in
this And what about the the you know
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:like I I need to have that stability
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:Jerremy: which is incredibly,
incredibly important.
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:Man.
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:I mean, the stability for my wife and I,
I think for other women is if you know.
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:you're going to be renting there
for a longer period of time, fine.
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:Who are you renting from?
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:Probably a boomer.
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:So you're just gonna keep paying them.
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:But, but really that's
not always the case.
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:I mean, there's tons of people that.
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:Individuals, individual people,
individual, you, you, you know,
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:families that owned that house
that have moved out of it.
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:I would definitely rather pay them than
some type of huge fund or something.
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:and I do believe ultimately that we do
it, as we see it and as we notice it,
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:the, the change in the shift of like.
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:We can rent for a period of time.
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:But to make your woman feel
safer, that contract can just
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:be a longer rent contract.
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:Dave: Yeah
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:Jerremy: she would've necessarily
cared if we kind of kept staying
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:in for three or four more years,
as long as she knew that upfront.
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:Dave: Yeah.
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:Yeah,
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:Jerremy: If she knew for sure,
Hey, we're gonna be here for
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:three years and we're gonna rent.
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:But renting homes, to me feels.
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:Very free and very flexible and very
exciting and non per and non-permanent.
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:And for ladies, it's
just a timeline thing.
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:As long as they know how long they're
gonna be there, they don't stress out.
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:But they, I do believe the vast, vast
majority of women in this country do want
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:to have a family and they want to put down
roots somewhere, and they want to have a.
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:in a repeatable way for the children and
for the babies to grow up in a safe place.
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:think that's just like an internal
motherhood, feminine energy,
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:that it's never gonna go away.
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:It's never gonna change, nor should it.
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:And I think that's perfectly okay to
go, Hey ladies, we understand that.
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:And as long as you can kind of understand
the, the, the timeline of all that,
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:I think everything is perfectly fine.
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:Dave: Yeah Yeah and also depending on
time of life right You know if you're
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:if if kids are out and you're you're
a bit older it might be like Hey you
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:know chase the sun or it may be like
I I this is my community and I want to
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:be here and I want to have an ownership
in in this community It might be that
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:too So like it's we're we're not saying
what what the prescription is for the
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:individual what the solution is right
This is this is solving America's problems
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:It's that When you what I'm hearing Is
when you when you plow all of when you
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:plow so much money and so much equity
into a physical object like a house you
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:may feel better but it is clipping your
wings on the other side And if you want
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:to maintain that freedom there are other
ways of growing your wealth growing your
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:freedom for growing the possibilities
than owning a house So thinking
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:different way Yeah
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:Jerremy: Yep.
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:Precisely thinking about it in a
different way, creating new beliefs, new
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:paradigms, new potentially new ideas,
new futures where it's not the exact
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:same thing that you got, that you bought
that was sold to you 25 years ago.
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:I think that, I think that
whole process is shifting Dr.
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:Dramatically.
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:Dave: Hmm Hmm
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:Jerremy: that's where I landed.
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:Man.
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:It's changing.
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:Big shift.
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:It's a whole different dream.
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:It's a whole different dis disagreement.
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:And the current president that we have
in place is fully bought in as a boomer.
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:to that, to the, to that dream of, yeah.
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:This is a, it's a real estate world.
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:It's an ownership world.
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:It's a, invest into that long-term
asset without worrying about the
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:consequences of interest rates And.
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:I mean, he, he is the problem
that you're diagnosing dude.
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:Like he is the antithesis of that, where
it's, he's not thinking differently.
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:It's the same thing that's always been.
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:It's the beat up.
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:You're the person that you don't like
with a bigger club than you, and make
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:fun of everyone and put everyone down.
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:Just make as much money as humanly
possible and keep making as much
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:money as humanly possible and
keep working as long as possible.
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:I mean, he's the oldest president
that's been sitting in office now,
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:Dave: Yeah no more
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:Jerremy: so
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:Dave: you are if you
forget it No more No more
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:Jerremy: I
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:Dave: I'm I'm done You know like
go you know go spend time with
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:your great-grandchildren enough
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:of this.
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:Jerremy: yeah, totally.
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:You should.
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:Dave: Well
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:look what the reality we don't know And
what I I I wanna make a lot more people
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:know about is that it means that the the
particularly the Senate and the Congress
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:like they've set that up as an old age
home Like they have doc they have they
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:have so many doctors they have complete
medical that's right there You can get
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:your hair cut you can get your shop Being
done You have all the staff you get you
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:know carted off from here to there There's
there's there's a there's tunnels between
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:the buildings and you know they get on
golf carts and they go between these It's
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:like this is an old age home and they
just happen to be the ones that are are
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:pulling the levers And the reality of that
is that they leave the governing to their
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:staff who are younger people and we they
have zero accountability You don't think
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:that these old people have any idea what
the real things are It's like ask them how
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:much like a Like a ask them ask them the
question about how much a a gallon of milk
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:costs and like they wouldn't have any idea
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:Jerremy: Yes, correct.
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:No clue.
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:Most of 'em don't.
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:that was a popular, a
very popular Ellen show.
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:she brought in, bill Gates.
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:It was like just asking
him the price of things.
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:It's like one of her most viral
videos ever was just her asking like,
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:how she put out a loaf of bread.
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:It's like, how much does this cost?
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:Dave: I had no idea Yeah
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:Jerremy: No, he had no clue.
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:Dave: and it's and that's really just the
detachment right You know like they they
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:are not feeling it because they're both
ex they're all extremely wealthy Right
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:And so if that the the price of gas is it
went up a dollar in Indiana yesterday a
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:dollar On average you know for something
to go up a dollar on average Can you
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:imagine So they're they're getting $6
a gallon in places in Chicago like this
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:Is that that we don't have a tax Holli
Gavin Newsom not G God Sorry my my crazy
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:one DeSantis Called a special session of
the Florida State Legislature in order
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:to do gerrymandering Come on They didn't
do a tax holiday They they're not even
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:discussing it They could knock 30 30 20
20 off the cost of gas if they just said
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:Hey we're not gonna collect taxes for the
next year on on gasoline They did none
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:of that They decided to disenfranchise
voters instead I'm like oh my God I
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:wanna burn Tallahassee to the ground
again I'm not saying that but I want to
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:Jerremy: Yeah, don't do that.
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:Dave: do that I'm not saying do that I'm
not calling for any VI violence police
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:officers and and NSA and FBI I'm not
calling for that And the frustration
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:is real because the real thing is we
have the price of gas going through the
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:roof and it is totally because boomers
decide to destroy another country You
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:know that is why it is self-inflicted
and the boomers that are here are saying
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:eh whatever I don't pay for gas anyways
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:Jerremy: Yeah, agreed.
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:Agreed.
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:They're like,
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:Dave: my God that's crazy
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:Jerremy: I do.
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:Well, I do.
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:'cause they're like, they're,
they're driving Teslas and they're,
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:they're driving, most of 'em,
all of 'em are driving Teslas.
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:And then they have their, their
expenses covered by the passive
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:income from the houses they own.
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:They're renting out to other people.
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:Dave: Yeah
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:Jerremy: So, yeah, I agree that they
don't, they're, I agree with they,
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:they're not worrying about the gas.
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:Maybe that's what I should say.
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:The boomer boomers aren't
worrying about gas prices.
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:I should probably say that.
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:Yeah.
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:and, and I, and I like your take, man.
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:I like the controversial take of
like, hey, this is the, the generation
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:that's causing the problems.
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:'cause they have the power, they
have the aids, they have the wisdom,
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:they have the insight, they have
the money, have the time earth,
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:they have the time on the planet.
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:they are the biggest
consumers of resources.
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:They're the biggest consumers.
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:And,
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:Dave: than any generation
in the history of humanity
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:Jerremy: And nothing's been fixed.
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:Dave: No the worst I mean it's like ah
Oh grandchildren Oh great-grandchildren
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:I want you paying for my crap with
a God $41 trillion of debt right
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:now Oh that'll never have to Oh that
will That's on you Great-grandchild
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:Jerremy: Yeah.
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:We'll, we'll just keep
kicking the can down the road.
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:Don't worry about it.
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:It's gonna be fine.
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:Dave: It's like they I believe in their
hearts boomers truly hate humanity
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:that's that's the only conclusion I've
come to is that boomers hate human
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:Jerremy: Well with that, on
that note, what should By what?
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:Yeah, so UBI is next.
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:Is everyone ready for that?
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:You believe is?
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:Dave: I I started listening yesterday
to some of it it's it's interesting
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:I don't I'm I'm I'm not sure how I
feel about it I've been asking around
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:it's like what do you think of UBI
And and everybody does seem to have an
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:opinion so I'm I'm excited about that
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:Jerremy: Yeah, it's gonna be good.
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:I'm excited about it.
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:Super pumped.
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:and gentlemen, listeners, and again, thank
you for coming in by the droves to support
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:this podcast and to keep showing up and
to keep giving us ideas and thoughts.
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:Dave: Record
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:Jerremy: excited.
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:Yeah.
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:Record month.
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:Dave: month This is our
our biggest listeners More
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:have listened to us this month than
any other one so thank you Everything's
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:trending in the right direction
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:Jerremy: Yeah, so thank you so much.
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:We're gonna
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:Dave: I.
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:Jerremy: doing this.
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:We're gonna keep just chatting with you.
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:if you're interested in being
a guest on the podcast, we.
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:Would love to have you.
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:We want to hear your opinion on things.
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:And yes, it is political.
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:It is okay have a political discussion.
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:That's what the whole podcast is
for, is you come up with solutions by
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:saying, Hey, I'm not afraid to disagree.
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:I'm not afraid to say that you're wrong.
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:I'm not afraid to say a very
controversial opinion or a take.
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:And then let's just digest it and have
conversations around it, because if you
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:want more of something, you need to speak.
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:More about that thing, that's
what we are gonna continue to do.
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:That's what we've been doing.
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:We are, extremely happy
to keep pouring into you.
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:If you enjoy these podcasts, if you
like them, if you like what we're
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:doing, if you have enjoyed not only
the conversations and the debates
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:and the back and forth, but also.
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:The financial information, the constant
and frequent, interaction with markets
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:and the discussions, over there with
the blended quasar markets as well,
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:and the solutions that not only have
our guests provided, our listeners,
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:but also both to myself and Dave,
they have given us real tangible.
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:Solutions on a silver platter that we
can begin using instantly and immediately
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:in our own communities and our own areas
to really grow and to thrive and to
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:develop and to create something amazing.
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:So if you like those solutions, if you
like that instant feedback that you're
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:getting in a real time from the problems
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:We're here for you.
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:We're gonna continue to be here for you.
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:Universal basic income is next.
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:I hope we get Andrew Yang on the show.
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:A few other people that
are big proponents of it.
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:Dave and I are gonna be studying
a bunch this weekend on it.
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:And until those episodes
drop, we will see you later.
