I Know the Secret of How to Cripple Trump | The Daily Beast Podcast
If you want to protest, more power to you. If you want to, you know, register people to vote. I salute you. But the easiest way to maybe save some money and have a really big impact. and send a message to the markets to Trump, is to resist and unsubscribe. This is a coin operated president. And these individuals have decided. that their one and only job is shareholder value. There's a ton of pressure. Nobody wants to go first, but there needs to be. collective action from ten, 50, 100 of the fortune 500 to say. this is just gone too far.
Welcome to the Daily Beast podcast. Thank you. Daugherty, an executive editor of The Daily Beast. I'm filling in for Joanna Coles, and I am delighted to be here, especially because we have an amazing guest, Scott Galloway. He is, of course, host of The Prophecy podcast. He's host, co-host of pivot. He is an expert in business. I know he is moving in a very big way to directly take on Donald Trump. He has come up with a call to resist and unsubscribe,
and we are going to talk about what he says are the ways. we can all make Trump give up his worst policies. It is so simple. You were surprised nobody thought of it first. It is already spreading shockwaves among the powerful. And Professor Galloway is also going to tell us. the secrets of what all those emotional support CEOs. who are constantly hanging around Trump are really texting him in private. So let's get right into it.
Welcome. Professor Scott Galloway. You are. asking people to resist and unsubscribe. And I just want to take the opportunity to. just give us a very basic explanation, because there are so many questions. that this raises. But what is resist and unsubscribe? Well, thanks for having me here. And first and foremost, if I could give my sons anything, it would be a Scottish accent. That is very.
I'm happy to pass it on and is it Glaswegian rice? Here's some glasses. Yes, I am Glaswegian. I'm very proud of that. I'm sitting live and direct in Manhattan. and, I am very proud of my home city, so thank you. I appreciate that resistance. Essentially, I got very frustrated about Ice activity. in Minneapolis and wanted to do more than just. share my outrage with a ring light and on a podcast. So I think I've zeroed in on what is the soft tissue of the Trump administration. And that is the only time the Trump administration walks back.
his actions is when the markets fall. The S&P hit the bond market. That's when he walked back his plan to annex Greenland. When he walked back some of the tariffs, the soft tissue, the market. Right now we're gonna have the biggest impact is in big tech. that represent ten companies represent 40% of the S&P. And they're highly sensitive to subscription growth or lack thereof. So I've built a site resist and unsubscribe. And essentially I have what's called ground zero, which are the ten big tech. companies and links to where it's easy to unsubscribe, and then the blast zone.
And that is companies directly enabling, ISIS activities where it's AT&T or Hilton or the likes. And the basic notion is the following. If you unsubscribe from ChatGPT, that's $240. It's trading at 40 times revenues. That's a $10,000 here to their market cap. And these companies are highly sensitive to growth rates. and projected growth rates. So if you want to protest more power to you. If you want to, you know, register people to vote, I salute you. But the easiest way to maybe save some money.
and have a really big impact and send a message to the markets, to Trump. and to other citizens that they can have an impact is to resist and unsubscribe. And we started with 6000 uniques a day. We're up to 60 or 80,000. And according to AI, we're going to catalyze somewhere between. 150 and 200,000 unsubs across Big Tech. I just want to ask where to you, you know, on day 12, I believe, of this, where what was the what was the moment that it came to you? Because I know you were in Davos.
Almost a month ago, and that was a big event for Trump. He went there claiming he was going to annex Greenland and he chickened out. Was that one of the things that got you thinking about about how to do this? Now, I can tell you the exact moment, I'm. usually able to disassociate myself from what's going on in politics. And there was one moment I've. I don't know how you felt about this view, but I've increasingly found. my blood pressure and anxiety going up, especially over the course of the last.
few months, especially around ice and the moment where I thought, I need to do more than just articulate my outrage on my podcast. was when Secretary Nome, after Alex Prouty, was murdered, described him as a as a domestic terrorist. and said that he was brandishing a weapon with intent to massacre federal agents. I thought that was the equivalent of showing up and urinating on the grave. of a recently buried man who was a nurse for veterans.
I just had at some point, depravity has to, need some resistance. That was a moment where I said, okay, I need to do something. Quote unquote, from me and Dan Harris, who talks about has this great, book inside of 110% happier. He says action absorbs anxiety. And I thought, I just want to do something. And so I came up with this idea. I think I've discovered, if you will, the soft tissue. of the markets that he appears to respond to.
And I thought this an interesting idea. I have a footprint, I have some reach, some awareness. And I thought, I want to put it to use more than just selling more ZipRecruiter. or, you know, athletic greens. And so, launched it 11 days ago. And every day we get more and more, more and more site traffic, more and more media covering it. So, so far it's going pretty well. So just practically, how difficult is it to unsubscribe? Because we all we are all signed up to so many things.
and we all know that they're kind of complicated. But how how easy or difficult. is it to take Amazon which is the top of your ground zero list? Well, it's situational and I'm a fairly economically. secure person who, you know, living in London. Quite frankly, I don't think it's fair of me. to tell people not to buy groceries or not to show up to work. I'm trying to lead by example, and I'm I try to be transparent. I still have an iPhone. I'm not giving it up, but I unsubscribed from Apple TV plus and I don't miss it.
I unsubscribe from, Apple Music and I don't miss it. My family. We've gone from six streaming media platforms to one, and if I gone to zero, I would have been I would have been smothered in my sleep. by my boys. But it wasn't that hard to go from 6 to 1. And you're going to find Ice. Unsubscribe from Amazon Prime. Some people depend on Amazon Prime for a lot of things, but what you might also find, as I did, is that I was also a member of Amazon. One, their health care service, which I was paying $199 for for the last six years, that are on years.
When I unsubscribed from AT&T and I switched to Nobo mobile, you know what I found? I had four AT&T contracts, one for my phone and three, two for. two for iPads, which are in a landfill somewhere four years ago. and one for a BlackBerry I haven't used since 2014. I had spent over the last 14 years, probably 4 or $5000 on AT&T contracts, and they're very good at renewing and charging you. And if you're like me and your your bills are pretty complicated,
you don't realize how much money you're spending on this. I, I, canceled my Uber, account, and I found out I was taking 350 Ubers a year. and this is a story of privilege because I have money. But I was spending somewhere between 30 and $35,000 a year on Uber. Because what big tech does is they consolidate the market. and then they start raising prices faster than inflation. The price of an Uber lux is basically doubled in the last 5 or 6 years. So for some people, I'm not going to judge.
I'm not saying everyone. should move to a cabin in the woods and not turn on their lights. Is is situational. It's up to you. The decisions you make are yours. What I'm saying is this is a fairly frictionless way to send a real message. And you're gonna find if you go to resist and unsub.com. and you click on these links that you are spending money. in a lot of places, you didn't realize where you can save some money. Now, is it breaking through? Because I know that you have had people talking to you from the world of tech.
who who have begun to be aware of this? What are you hearing? I've heard from approximately 20% of the CEOs of these companies, and to be blunt, they're always incredibly charming. I know a lot of them, Scott, really respect what you're doing. I'm not happy with what's going on. We have a fiduciary obligation to our shareholders. It's difficult for any one person. I go first, I get it. I had a conversation with Jeffrey Sonnenfeld. from Yale who convenes our CEOs, and I think there needs to be.
I'm empathetic to the fact that it's hard for any one person to go first. But my message back to them is, what's the point of having all this money at all? These guys are in their 50s and 60s. They're billionaires. What's the point of having all this money? You're gonna be dead soon. You want to be seen as someone who said something, or someone who got your share price up. So two, you could be worth 3 billion instead of 2.8. So I'm not sympathetic to it, but they're all exceptionally charming, exceptionally nice. Where I've seen real pickup is in traditional media in the last. five days, I think I've been on every major cable news network,
and I think I'm going to go on Fox this weekend. And what's interesting, if you look at the history. all of a sudden I've become sort of a minor student of protests. The most recent was the camel protest. Camel, Disney and unsubsidized Disney Plus were actually plummeting. when they backed down and put camel back on the the air, but media coverage had increased. It's actually the shame of media and the impact it has on the internal culture, and the fear of more economic impact that stops or results in,
action. So I've been doing a lot of social, no paid, absolutely no paid to drive traffic. But I've been going on traditional media and I've been using AI like crazy. I'm a very analytics driven person. I look at the site visits times, the conversion rate times, the number of platforms people are on average unsubscribing from. And I do pretty type predictions. And we've gone from a prediction of 30,000 subscribers in February to now.
We're predicting somewhere between 150 and 200,000 unsubs. So traditional media. and new media such as this show have played a really important role. And it's cumulative. It's starting to gain, traction. And other people are, are are using their platforms to encourage people to resist and unsubscribe. And the thing I'm trying to convince you of is. maybe you would just want to unsubscribe from one of your ride hailing programs. Maybe you want to unsubscribe from 20 things. That's your business.
It's your life, but it's something you can do. with other people and it's fairly frictionless. I would argue it's fairly easy. You were. you were talking about the social. It's like the social pressure or inside a company. That brought back Jimmy Kimmel, for example. What do you want to see? I'm just going to use Amazon again. What do you want to see Amazon do differently? What I would like to see are just being realistic. The objective is to send a signal to consumers that the most radical act.
of activism in a capitalist society is not participation. The greatest political or government action, probably in recent history was in Q1 of 2020, when the government immediately put trillions of dollars of stimulus. into the economy, passed new guidelines, new laws almost overnight. And I don't think it was because 10,000 or 20,000 people had died. in the previous month from Covid. It's because GDP had crashed 32%. So I think if you can just take GDP down 1 or 2 points,
or if Sam Altman or Andy Jassy or Tim Cook says. there's unsubscribe, thing. is getting a little bit uncomfortable for us and our shareholders, I think they're going to. find their backbone and maybe not show up for as many Melania premieres, or decide that maybe we shouldn't be supportive of this as we have been, or maybe we're going to be a little bit more courageous with our views. Whether we're going to say out loud what they've been texting privately to people. like me about their views on this, but I don't. I think the weight on their better angels showing up is just, fool's errand.
I think you have to hit them where they where they feel it. And that's in terms of shareholder value and, a decline in subscriber growth. So what do I want from them? I want them to show some fidelity to the American values that made them. so wealthy and build such great companies, and to speak up and say. that demonizing immigrants, sending them to black sites, that. their equivalent of concentration camps, which is the definition of a concentration. camp as a camp outside of the domestic territory.
where you're not subject to the same legal protection, a mass secret police loyal to one person, not to an institution, that this is just not going to be good for the economy, not good for my company, and not good for America. That's what I want. I want them to. I want them to say out loud what they text me in private. When you talk to them. What? Why have they become this sort of emotional support CEO group? I mean, Trump goes everywhere. and takes with him people like Tim Cook very prominently.
Sometimes, sometimes Jamie Dimon is there, sometimes he's not. But why? Why do they all flock to Trump? What is what is it that's in their minds. that makes them think that it's a good idea? Because they went around Biden like that. They went visibly around Obama like that. What's Trump got for them? And it's simple. It's one word. It's money. Come to the Melania premiere and there's a chance when I. if I increase the tariffs on China, I'll do a carve out for Apple.
Oh. You need your Nvidia, your Nvidia, and you want to sell chips into China. Well, maybe I'll let you if you let me prostitute you around and treat you like, in emotional support, giving me credibility. And if you give 2 or $3 million to, my new West Wing renovation or East wing renovation, maybe I'll approve. I'll put pressure on the FTC to approve the acquisition by you versus. someone else. This is a coin operated president, and these individuals.
have decided that their one and only job is shareholder value. And I, I empathize with that. I get it, there's a ton of pressure. Nobody wants to go first, but there needs to be collective action. from ten, 50, 100 of the fortune 500 to say this is just gone too far. So but what is it about? It's about one thing. It's about shareholder value. Full stop. I think if I don't think I yeah, I like to think of myself as. someone who understands the market's math. I don't think there's any way these companies can live up is the AI.
Companies can live up to their obligations around the infrastructure investments. they have projected, or that they'll need around inference and data centers. So what are they going to do? They're going to have the president most likely back some sort of. I won't call. it a bailout, but some sort of investment that, backs debt. to build these data centers or these massive, CapEx investments. And I think that's why they all fly to Washington, put on a suit. and sit around a table and say shit like, thanks to your leadership.
And, they basically see, this guy is very intelligent, is out. He connects the dots. He says, kiss my ass publicly, hundreds of billions of dollars in it for you and your shareholders. You don't kiss my ass publicly. I'm going to come for you. This is the definition of an autocracy, cronyism, or even, let me use a word. the right hates more than any of those things. It's total socialism. What on earth is the president doing meeting with Ted Sarandos in the Ellison's. talking about the acquisition of of Time Warner?
That has nothing to do with the president. It should be who has the biggest check and then who survives regulatory review. around concentration of power or a serious national security review. So we have all of a sudden decided that the president can get in. the way, can be a social, you know, practice socialism, cronyism. But they are responding to these incentives. They are saying, let's wait this guy out, let's kiss his ass. Let's give $1 million, the East Wing, let's go to the premiere. and let's stay out of his crosshairs.
and make sure the good times keep going for us and our shareholders. I'd say it is pretty straightforward. Can I just. I'm just going to go through the list and just give me some give us some idea. So Amazon we know you know what your views on that are. Metta. What do you think Metta can do to change Trump. Well Matt is not I mean you're talking about it. You're talking about a CEO here who's comfortable ignoring data. showing that teenage girls are more likely to engage.
in self-harm because of his content. So, it's not what they can do. It's what we can do. And that is, we can communicate to these companies. that if they don't push back on this type of, slow burn into fascism, we're not going to use their platforms. We're not going to subscribe to their services, we're not going to advertise. That is a little bit harder because it's advertising driven, and it's such a robust business. that I don't think anyone advertiser has more than 1%. And people, including myself, I've been understandably criticized.
I've gotten over, I think, 20 million. likes and way more views on that on social media. And my primary means of communicating has been Instagram. When people say, well, that's hypocritical. Yeah, I've met on the list, I'm like, well, I don't like coal fired plants, but I turn on my lights in Florida. The bottom line is. meta has a monopoly on communication right now, so I would love an alternative. I would love a DOJ or an FTC that actually did their damn job. and broke up these companies such that we have more alternatives.
and they couldn't charge the rents they charge, including forcing me, who can't stand these people to use their platforms. So meta is a tough one because they have such monopoly. power over the distribution, of, of information right now. You know, I like to think there are other can use signal instead of WhatsApp. There are some substitutes. But I want to be clear, these companies, generally speaking, have monopoly power. And it's not easy. It's not easy to unsubscribe, from some of them.
Others it's easier. There's a lot of options, you know, can you use Lyft instead of Uber? Yeah. Can you go to Noble Mobile or Verizon or whoever it is instead of AT&T? Absolutely. Can you unsubscribe from Amazon Prime for a month? Maybe you don't need Amazon Prime Video. Yeah. You're going to find you might find also you might have multiple accounts. Do you can you use the free version? I think that's very relatable to everybody isn't it. The you suddenly find, as you said, you're paying. for all the things you didn't know about, as I found when I walked in this morning,
I'm saving $170 a month on things I don't even use. One of the things that when you imagine when you go on Fox, or as you put it yourself and use a food fight with somebody. from the right, the charge of hypocrisy that you've used. I to come to these, you know, to help analyze this, that, that you're using, Instagram to spread the word about it. is not something that you're obviously not really concerned. about being accused of hypocrisy here, but maybe does that take the child, take the sting out of it?
Yeah, I'm trying to lead by example. I'll give you an example. I own Apple shares. I've owned them since 2009. I have decided I'm going to sell my Apple shares. It's going. And it hurts because I think it's a great company, so I don't want to I don't want to claim to have moral clarity around all of this, but unless you want to move to a cabin and have Am radio, you're going to have to, you know, you're going to you. And I'm not I'm not going to lecture people. I'm not going to tell them.
I would never tell people to stop buying groceries. What I would say is the following is that Kroger trades at 0.3 times revenues. So if you wanted to have a $10,000 impact on Kroger stock, hoping. that the Kroger CEO would reach out to the president or that the markets would. indicate something, you would have to stop or buy $30,000 less in groceries. You'd have to get five American households to not buy groceries for a year. If you unsubscribe from the paid version of ChatGPT, which is $240 a year, and the company was raising money.
at 40 times revenues, that is a $10,000 hit. So what I'm trying to do is raise awareness. that the free version of ChatGPT is pretty damn good. I use it now because I canceled the paid version. and you are having the same economic impact and sending the same signal. Then if you convince five American families to not buy groceries for a year. But I'm not going to tell people. what to subscribe, unsubscribe, how long to what I'm saying. This is what I am doing, and I think we have a weapon that's been hiding in plain sight.
This is what the president listens to, and we can have more of an impact. than we think. And it needs to be sustained. It needs to be over probably longer than a month. The the protest everyone points to in history as a Montgomery bus strike. And there was a very cinematic moment where a woman refused to give up her seat. Huge leadership, very important. But actually what moved the needle was Doctor Kane. organized carpools for a year, and ultimately. the municipal bus service in Montgomery was losing 2 to $3 million a year.
And then they said, okay, enough. We're no longer going to have segregated seating on our busses. So this is this isn't going to happen overnight. But I know for a fact that most of these CEOs are cognizant of this movement. Then it's beginning to register and some of their subscription analytics. And then more people are joining in. And this becomes another point of light, including protests. including, good media coverage by people such as yourself. That all adds up to one thing backbone and pushback.
That's two things. So I don't am I perfect on this? I'm not giving up my iPhone. Let me be clear I didn't want to sell my Apple stock, but I am. I'm still subscribing to one of the streaming media platforms. because I have a family, but I'm going to take a lot. I'm going to speak loudly with my spend here. You acknowledge this yourself is you're incredible. economic resources compared to other people. But one of the things that strikes me, that strikes me about this is that.
these are relatively small amounts of money, and I do not think people would begin to appreciate. quite how valuable an individual customer is to these big tech companies. One of the. one of the things, it seems that big tech we all think of as ultra powerful, it's been really good, projecting itself as ultra powerful. Do you think this is a kind of moment for it that people begin to realize. they've got a lot more power than they realized?
What you want is you want your X-Wing fighter or whatever. it's called that Luke Skywalker is and is to find the vulnerability. in the Death Star, that that the shaft, that where if a photon, the photon torpedo, hits a perfectly, it blows up the whole Death Star, that that shaft or exhaust shaft, if you will, is subscriptions to Big Tech. And as Microsoft missed its cloud growth by one percentage point. and it lost 10% of its value, and then other companies.
trading down in sympathy, the Nasdaq 100 was down 1.5%. Everybody notices that. So if you wanted to if you wanted to have that one kill shot, it's taking the subscriptions to Amazon. Prime or ChatGPT or Anthropic. It's taking them down. Just a little bit. Because right now, ChatGPT, OpenAI is raising money at $850 billion. And you can bet at that kind of valuation, the investors are pouring over. their subscription growth.
And if their subscription growth one month this month goes decreases from 8% month. on month to 7% month on month, the investors the CEO, I'll notice that. So this is the string you can pull on. that unwinds a pyramid, if you will. What I'm trying to figure out, or what I think I've come up with, is what is the maximum impact relative to the disruption in your life. One of the other things is kind of like. this is an analogy to shareholder activism here as well, isn't there?
You bite you by selling Apple yourself. A lot of people follow you for I'm not going to say specific advice, but for a sense of how to do better financially, that's obviously not going to go down well with Apple. It's it's not something that should people begin, begin to think about their stock holdings. And therefore, one case. I don't I don't want to recommend that. I think everyone has an obligation.
to develop and maintain economic security for them in their families. And from a shareholder standpoint, these companies are just juggernauts. What I'm trying to do is lead by example. And quite frankly, if. I can take an economic here. So I'm not recommending that people sell their stock. I just don't. I don't want to take that kind of I think it's. I don't want to take risks with other people's well-being. I, I'm comfortable saying to them, you probably have too many big tech. subscriptions that you can do without, but I don't want to tell people.
to not going to work or not to buy groceries or to, sell their stocks. I just think that's easy for me to say. So, but I am trying to lead by example. So I've owned Apple since 2009. I'm selling all of my Apple stock. And I'm even Goldman Sachs is my money manager. I'm going to transfer my assets to either Royal Bank of Canada or a regional bank. And by the way, I love David Solomon and I know him. Goldman sent an amazing job for me.
I'm disappointed that more financial leaders like David. and Jamie Diamond, who I think our leaders have not spoken out more forcefully, doesn't mean I won't go back to Goldman at some point. Doesn't mean I'm not in good relations with them. It doesn't mean they're not fantastic firms. No, I think they're all of that. But I want to send a signal with my. my pocketbook that what's going on here is wrong. And that corporate leaders, many of whom every morning. wake up and look in the mirror and say, hello, Mr.
President, a lot of these people see themselves as future political leaders. The leadership is doing, you know, doing the right thing when it's really hard. And I don't think enough CEOs are doing doing the hard thing right now. Other are there any are there any specifically that you want to. to get get to you were obviously you just mentioned David Solomon. You mentioned Jamie Dimon who who has got the ability to move Trump, do you think or is it it takes all of them.
I think it's the markets. And I do think he listens. I think he takes Jamie Dimon and Jensen Hwang's call right away. I think if, if. if the AI platforms and Apple. and Jamie Dimon within the week of each other called and said, these actions by Ice are beginning to hit. our company, we're beginning to notice it. I think he I think he takes that call and he hears that, because 70%,
77% of the earnings growth has come from these companies. And the markets were up 17%. Basically, on the back of the massive investment in the markets. Reaction to the acceleration of these companies. If the markets go down, the president is going to have way less. cloud cover to do the kind of things he's done. Unfortunately, in America, I think the S&P and the Nasdaq. are some of the most damaging metrics ever invented. because as long as the Nasdaq and SBA go up, unfortunately America thinks that. everything's all right, that the president must be doing a good job. And actually,
if you look at. we've underperformed relative to other markets, especially when you take in the decline in the dollar. But yeah, I think he takes those calls. I think he turns off. and on the protests in Minneapolis, which isn't to say they're not powerful. I think he ignores podcasters and what they say on MBS now or even on Fox. I don't think he cares what the courts think. He certainly doesn't care what Congress thinks. They become the Duma. He doesn't even care what Republicans think he does care with the market. And these tech leaders think just to go more broadly on the market and so on.
Amazingly, he came to it. He came into office claiming he was going to be the crypto president. And crypto broadly has been a disaster for some people. I don't know, I didn't buy any Melania coins. Perhaps, perhaps wisely. But, this seems to be something. of the touch of disaster about it to the crypto industry. And yet, are they going to trump policing anything? Well, he's a crypto president and he was.
he was a genius in the sense that he flew right into the man sphere. The Democratic Party basically said billionaires are evil, white people are racist, and young men are violent. And all three of those groups said, fine, we're out. Fine, dude, you want to demonize us? Fine. We're out. And you saw a decline in all those parties in terms of their contribution. and their votes for blue. Trump's. genius was he flew right into the man's sphere. Rocket crypto Joe Rogan.
podcast, World Wrestling Federation. He just said, I'm going full testosterone. And one of those things we said to the crypto community, I'm all behind you. I'm going to get rid of the the part of the SEC investigating fraud. I'm going to pardon the guy who was convicted of fraud. and is in prison right now, a banana, a Binance. And while I'm at it, the Friday before my inauguration and the cover of dark, I'm going to create my own shit coin and pocket.
I think it's $1.4 billion to date, because people will be distracted. of the inauguration and Democrats were corrupt with small caps. You know, Nancy Pelosi, who's I think leaving Congress where $350. million, she's outperformed Warren Buffett in the Nasdaq. He's like, well, that's small ball. We're going to be corrupt. Let's be corrupt for billions, not for millions. So the the level of, you know, the crypto has been the ultimate vessel for his corruption.
And also tactically, it was super smart to go after something. that just reeked of testosterone and be very supportive of it. And the Biden administration was seen as not only non supportive. but somewhat indecisive around it. I think a lot of people in the crypto community correctly said, log. will play by whatever rulebook you give us, but we need a rulebook. We need to understand what's going on. So part of his campaign genius was flying into crypto, and what he found was an empty vessel that he could kind of pull off.
What is probably the greatest grift. by any elected official in history, 1.4 billion and counting. I think there's we're just watching it go up and up. And to his children as well, of course. You mentioned the mana sphere. Don Jr has inserted himself in that. Eric Trump out there making grift out of that. I just want to ask you, finally, there were some interesting jobs numbers that have come this week. And one of the things you mentioned rightly, but going into the mana sphere.
was big things, rockets, crypto. And we've discovered that. Trump basically didn't add any jobs last year. He maybe added 50,000. And the economy that he had promised doesn't seem to be roaring. At what point does Magnus fear begin to peel off? Oh, it's already happening. You're already seeing. kind of the titans of the man sphere, the Theo Vons and the Rogan's.
and the Andrew Schultz's. They're already sort of saying, well, maybe, maybe we made a mistake here. And the labor market. To be fair, the economy, I think, has been more resilient than. people expected, including myself. The American economy just is amazing. It continues to grind on some of the CapEx being financed. by the incredible run up in stocks by this company is a staggering. There's going to be $670 billion. in CapEx just from three companies, Amazon, Microsoft.
And I think it's meta. That's three times the amount of R&D in the pharmaceutical industry this year. That's that's more money spent on AI CapEx this year. than was spent on the Apollo and space station programs combined. That creates a lot of underlying economic growth. We're starting to see productivity gains, not a lot, but some productivity gains. The labor picture is a bit mixed because youth unemployment is a 10%. That's not good. It's not bad. What you have I would describe in the labor market as a no hire, no.
fire economy, where we haven't created any jobs. But what the wobbly ness in the labor. market is indicated by one metric, and that is the I forget what it's called. It's basically an index. It looks at if people are looking around for another job, and very few people are looking for another job. because they're not confident they can do better, and you've also you have seen some pretty. dramatic layoffs, whether it's 60, 16,000 people at,
at Amazon and. corporate, I think it's 20,000 ups. The kind of early adopters of AI appear. to be, reducing their reducing their labor rolls. I had David Simon on my podcast and he, I imagine he's projecting an increase. in earnings for top line revenue of 30 to 50% over the next three years. But he described their employment. profile is flat for the next three years. Now, there's some I think, overhyping of the impact.
that AI is having on employment, because it makes it your company seems sexy that you're leveraging AI. What I think happened is post Covid, people held onto their employees. and are now deciding they can do more with less. But the employment picture I would describe. is a little bit confusing right now, and a little bit tenuous. But it's not the great destruction and human capital. that I think the catastrophes were predicting. It's still early in the game, but at the same time, people aren't leaving their job because they're worried.
they're not getting calls from recruiters. What I would say is more worrisome about the economy is. we have ten companies responsible for 40% of the market cap, and if any one of those companies sneezes, the global economy is going to catch pneumonia. That is exactly the power that you've identified. In those tank, those tank companies, it's like an Achilles heel that you can. you can grab onto, with this, with the, with this, appeal to people's. individual power over them.
Professor, professor Galloway. I want to give you the chance. Just remind remind our viewers and listeners, where should they go to learn how to do this? Resist and unsub or resist and unsubscribe a bunch of links. that make it easy to unsubscribe, to share it on social. And I could just tell you, it feels good to save money, and it feels good to do something with other people. I'll just say, like, tens of thousands of people. have been tagging you and giving their own story.
And in fact, there's a there are, a you probably know better than me, but there are there. appear to be thousands of people on Reddit who are talking about how they did it. So it's it's. an incredibly powerful movement that has begun already. Professor Galloway, thank you for joining us and look forward. to getting an update on how this is going in the near future. And most importantly, go Team Scotland. Despite that terrible draw, we're in the same. We're in the same when the same flight as Brazil and Morocco.
How did that happen? I think it's just a privilege to be there. Is what you have to say or not. Class is not fun. Yeah. I might see a game then. Yeah, I'll be there. Look forward to not losing. Thank you, professor Scott Galloway. Thank you, Prof. G. Wow. That is quite a declaration of what people can do to resist Trump. It's an amazing manifesto. As I said before, it's amazing. It really is that simple. We all subscribe to so many things, and the power, apparently,
is literally sitting in our hands at our keyboards. Just as a side note, Professor Prof. She did totally nail my Glaswegian accent. We are going to be monitoring, resist and unsubscribe. There's one subscription. I would just say you do need to keep it to the Daily Beast on YouTube. and on the web, where we are across every development and the crazy news cycle. Please get in the comments, tell us what you think. Tell us whether you join the movement. Tell us whether you have joined the movement and have both unsubscribed.
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