Fairness Is The Lie... Why Nature Is Unequal – And How That’s the Point

We are living through a brutal moment. The economy is broken, it's rigged, and it is rigged to the benefit of the elites at the expense of the poor and middle class. But how we solve the problem matters a lot, and to solve it well, we have to understand that poverty is the default we will return to if we get this wrong. Let me put it this way. Every thriving country and every failing country alike is built on a man-made economic system. Could be capitalism, socialism, communism, mercantilism, barter, slavery, or the kind of crazy hybrids that we have in the US and China today. Vote for the right system, you get prosperity. Vote for the wrong system, you get desperate poverty. We're going to answer the question today of why some economic systems yield wealth while others yield misery. According to esteemed political scientist R.J. Rummel, more than 260 million people were killed by their own governments due to communism and despotism. We shut the world down for COVID, and according to the World Health Organization, it only killed about 7 million people. Bad policies killed 37 times more people just in the last century. We have to get this right, but what does that look like? That's what we're going to answer today, and we're going to do it in six easy parts, and trust me, you do not want to skip part five. That's where we're going to discover exactly how good intentions are already paving the path to hell. Welcome to part one. Inequality is both the disease and the cure. In 1800, more than 80% of the entire global population lived in absolute poverty. Today, that number has plummeted to less than 10% and about 75% of the reduction in global poverty is due to China alone rejecting communism and embracing capitalism. Now, the great irony is that China's crushing poverty, mass starvation, and insufferable inequality came as a result of trying to eliminate inequality. The problem is the only thing more pervasive throughout history than poverty is inequality. Why? Because nature itself isn't fair. Animals, bugs, even plants compete and have unequal outcomes. Data from ecological studies shows that canopy trees grow tall to intercept up to 95% of the available sunlight, leaving understory plants with less than 5% for photosynthesis. Don't get me started on ant and bee colonies. They act as slave colonies to the queen. Humans have countless dimensions on which we are unequal, from our levels of intelligence and good looks to the very culture we grow up in. All of it yields disparate outcomes. Even things as seemingly inert as geography and climate play an outsized role in the success of a civilization. Take the Zaire River for instance. It carries more water than the Mississippi River, but due to its extreme drops in elevation, 1,000 ft over just 150 mi via waterfalls and violent rapids, it has left the people of its region isolated. The Mississippi, on the other hand, which drops about 4 in per mile, connects large numbers of people and helps facilitate trade, connection, and cooperation. Here's another staggering fact about inequality. Humans have twice as many female ancestors as male ancestors. Why? Because men are unequally appealing to women, so women breed with the most valuable men, even when that means sharing them with other women, and they ignore the men with less desirable traits. Unfair? Yes, but such is the way of life. Now, let's go even further. The tallest people on Earth are overwhelmingly from northern Europe. People from Okinawa, Japan are over five times more likely to live to 100 compared to the global average. West Africans dominate elite sprinting competitions globally. Not to be outdone, East Africa gives us virtually all of the world's elite long-distance runners. Nepalese Sherpas outperform all other ethnic groups in high-altitude climbing, demonstrating the unique genetic adaptations that allow their bodies to thrive in low oxygen environments. The list goes on and on. Unequal starting points will always yield unequal outcomes. Genetics, culture, soil fertility, disease burdens, waterways, climate, and exposure to trade are just a few of the ways initial conditions set people up differently. But Tom, I can hear you saying, "You yourself have said the system is rigged and that people are being preyed upon. So, why bring that up?" Because to fix the problem, we have to know what the problem is. If we're going to create a system that creates a thriving civilization, we have to understand that equal outcomes is a pathological goal. It is a problem in and of itself. It does not work because nature abhors equality. God, the universe, whatever. It doesn't want it. At least not here on Earth. So, given that over 80% of people lived in extreme poverty in 1800, the real question isn't why are some societies poor? The question is, what precise conditions allowed us to bring that number to less than 10% in just over 200 years? Welcome to part two, culture and human capital, the magic of turning stuff into wealth. In 1972, Uganda expelled roughly 50,000 ethnic Indians who, despite being less than 1% of the population, controlled over 90% of the country's businesses. Clearly not fair. But within months, Uganda's economy collapsed 50 years later, proving bad policies can hold a country down for a very long time. Uganda's per capita GDP remains at a brutally low 1,000. The US, to give you context, is more than 85 times higher. And roughly 42% of the population of Uganda lives in poverty. The same was true of Australia when the British first arrived. The Brits rolled up to find the Aboriginal people living atop iron ore deposits worth billions, but they had no idea what iron even was. Culture is how we transmit ideas across generations, but without contact to other groups, intellectual evolution can be very slow or stall out entirely. And even if you make contact, if you don't put policies in place that reinforce discipline, education, and productivity, your society is still going to spiral downward. Take Spain. By the early 1500s, Spain had acquired nearly 200 tons of American gold. It was one of history's greatest fortunes. Yet just decades later, Spain was economically destitute because they only knew how to confiscate wealth, not create it. All three of these societies learned a brutal lesson. Physical assets alone don't create wealth. You can have gold, iron ore, or even finished storefronts with supply chains, but if you don't have the know-how, you go nowhere. Prosperity requires knowledge, human ingenuity, and the right incentives. It's the ideas, skills, and culture that transform resources from a bunch of rocks into lasting economic value. To build a business is to create a system wherein the outputs of the system are more valuable than the inputs. It is astonishingly difficult and should be viewed as a miracle, but over time, high-functioning societies actually forget how hard this is. They begin to take it for granted. Thomas Sowell in his book, Wealth, Poverty, and Politics, explains that the difference between flourishing societies and stagnant ones is never just resources. It's human capital, the skills, education, innovation, and cultural values that determine prosperity or decay. Think about this. Cavemen had the same genetics we have. They had access to all the same iron, oil, uranium, all of it. But they lacked the skills needed to unlock the incredible value of those items. Prosperity emerges from knowing how to turn raw materials into value. I mean, we've turned sand into thinking machines, but you don't get there through force or confiscation. You get there by incentivizing people to innovate and pass on what they've learned. That's the real story of Uganda. When Idi Amin expelled the Indians, he framed it as liberation, and initially it was popular and empowering. But Amin misunderstood human capital and thus wealth creation, and he plunged his country into economic despair, a despair they still have not recovered from. Factories halted production, goods vanished, black markets soared, and Uganda moved rapidly backwards. The physical assets, factories, trucks, warehouses, they all were still there, but all of a sudden they were worthless. Same in Australia. When the British settlers arrived, they brought metallurgy, engineering, and industrial innovation. It was the invisible capital stored in British minds that transformed Australia into an economic powerhouse within just a few short generations. In 16th century Spain, when the gold dried up, they collapsed into stagnation and poverty, a stark contrast to Britain, the Netherlands, and Germany, who all surged ahead by investing heavily in education, science, and industry. Through special economic zones, massive social pressure to get educated, and embracing global trade, China lifted 800 million people from poverty in just four decades, becoming a global economic superpower. Human capital, not physical assets, inequality, not equal outcomes, powered this astonishing rise. Milton Friedman summed it up perfectly when he quipped, "If the government ran the Sahara desert, there'd be a shortage of sand." His point is my point, namely that prosperity comes from human creativity and incentives, not the mere presence of money or resources. Whenever you lose sight of the actual cause of wealth, you ensure a reversion to our natural state, poverty. If there's one critical lesson Thomas Sowell teaches us, it's this. Prosperity isn't about what you have, it's about what you know, what your culture values, and what you actually do. Wealth must be cultivated through education, innovation, incentives, and freedom. Countries that attempt to redistribute money and or physical assets inevitably fail. The path to prosperity requires investing relentlessly in human capital. Lasting prosperity cannot be held in your hands. It can only be cultivated in your mind. But minds, alas, are not equal. So, welcome to part three, talent tests, and the merit myth. 63% of Nigerian immigrants to America hold at least a bachelor's degree, compared to just 40% of whites in America. Additionally, American-born children of Nigerian immigrants obtain advanced college degrees at over twice the rate of native-born white Americans. Even more remarkable, Nigerian-Americans academically outperform many Asian-American subgroups, despite facing equal or greater racial prejudice and economic challenges. Clearly, culture, family priorities, and ambition predict success far more accurately than race. We see it again with Vietnamese refugees to the US. They arrived in 1980 with virtually no English, and yet today, Vietnamese-Americans graduate college significantly above the national average. Their transformation from impoverished refugees to highly educated citizens cannot be explained by genetics or discrimination alone. Family structure, cultural attitudes towards education, and relentless ambition completely reshaped an otherwise desperate trajectory. This brings us to the merit myth. What exactly is the merit myth? The merit myth is the mistaken belief that differences in outcomes, test scores, careers, wealth, must result from either innate superiority, exploitation, or deliberate discrimination. We instinctively simplify the world into winners and losers, heroes, villains, and victims. But this dangerous oversimplification ignores reality. Merit and achievement are profoundly influenced by cultural values, traditions, opportunities, both natural and man-made, and the environment a society came up in. Talent, intelligence, and even brain development don't happen automatically. They need fertile ground, stable homes, encouragement, resources, role models, and a culture that incentivizes their development. This will never be legislated from the top down. This will always arise from the bottom up. It must be a social phenomenon, not a political one, or at least not solely a political one. When policies are out of step with the culture, the policies must be imposed by force, and that's how you end up with Uganda, 1960s China, the USSR, Venezuela, or any of a host of dysfunctional societies. The remarkable success of Nigerian immigrants or Vietnamese refugees does not stem from inherent superiority, but from cultures that aggressively prioritize education, skill acquisition, discipline, and family support. Standardized tests, IQ assessments, and entrance exams reliably predict individual success even with persistent score differences among groups. These tests are not perfect, but they effectively identify who will thrive academically and professionally. Yet, many assume group differences reflect inherent capabilities rather than cultural and environmental influences, education quality, family expectations, resources, and values. Assuming disparities must indicate innate superiority or inferiority is precisely the mistake we must avoid if we're going to solve this problem. Consider New York City's elite public high schools, Stuyvesant, Bronx Science, Brooklyn Tech. Three decades ago, black and Hispanic students had significant representation. Today, black enrollment at Stuyvesant is roughly 1/10 of what it was, while Asian students dominate, comprising 60 to 70% of the student body. Did the genetics suddenly change? Of course not. Cultural values, expectations, rigorous study habits, supplementary tutoring, and disciplined prioritization of education made the difference. Merit and achievement are deeply influenced by culture, environment, and incentives. Cultural stigmatization, especially the destructive notion of {quote} acting white, actively undermines achievement. Economist Roland Fryer highlights how tragically and ironically academic excellence among some black and Hispanic youth invites ridicule and ostracism. This devastating stigma discourages intellectual curiosity and traps communities in cycles of poverty and underachievement. Contrast this with immigrant communities, Jamaican families, Eastern European Jews, East Asians, all groups that explicitly reject these stigmas. To them, rigorous education isn't optional, it's essential. It's celebrated and quite frankly demanded. And this obsession with academic excellence translates directly into upward economic mobility. Why? Because skills have utility. When you get educated in something that actually matters, you can do things in the real world that other people can't do. And when you can do something that the world cares about that others can't do, you're going to prosper. Now listen, I'm not saying there are no genetic differences between peoples, there are. What I'm saying is that focusing on that will blind you to the far more impactful reality, that poverty is not a genetic problem or even a money problem. It's an ideas problem. If you live life under a stupid set of values or erroneous beliefs, you're going to have a bad time. Assuming disparities always reflect differences in genetic talent, oppression, or exploitation blinds us to a far more complex truth. The most significant determinants of success are cultural values, educational environments, community expectations, political policies, and available opportunities. If we truly want prosperity for everyone, we must recognize that talent alone will never be enough. Opportunity, supportive cultural frameworks, and wise governmental policies determine who succeeds and who remains behind. Ignoring that fact masks root causation and drives natural inequalities from manageable levels to the truly intolerable. And once we get there, all that's left is violence. And efforts to forcibly engineer equality of outcome through quotas, like we've been dealing with for the last decade in US, rather than addressing the underlying cultural factors, will inevitably backfire. Want proof? Welcome to part four. Family structure and the welfare trap. In 1960, only about 22% of black children grew up without fathers. Just one generation later, that number soared to 67%. Not even centuries of slavery could create that crisis, but just one decade of welfare policies could. Between 1940 and 1960, black poverty had dropped dramatically. It went from approximately 87% down to just 47%. It's not a small improvement, that's massive. It was a seismic shift that happened rapidly all across America. And importantly, this transformation occurred before the Civil Rights Act, before the Voting Rights Act, and before Lyndon Johnson's welfare expansion of the mid-1960s. It wasn't government intervention that triggered this economic miracle. So, what was it that drove it? The answer lies in family structure and culture. Black communities were rapidly transforming themselves through stable, two-parent households, cohesive networks, and an ethos of self-reliance. Marriage rates were high, fathers actively participated, and communities thrived through internal strength, discipline, and investment in their children's futures. These cultural factors, not government programs, drove this unprecedented reduction in poverty. But in 1965, America launched one of its most ambitious social initiatives, the Great Society. Its aim was explicitly to eliminate poverty. On the surface, obviously, it sounds awesome. It's pure compassion for a group that had been grossly mistreated. But it's the classic case of an unjust injury that nonetheless can only be cured by the injured. No amount of external compensation can change the fact that the physical therapy can only be done by the person who needs the rehab. That's horribly unfair, but nonetheless true. So, despite the best of intentions, these policies delivered a poisoned pill to the black community by creating an incentive structure that discourages marriage, work, and family stability. Welfare programs financially penalized two-parent households. If a father lived at home or earned income, welfare support was reduced or cut off, effectively incentivizing single parenthood and undermining family stability. Within a generation, the consequences were devastating. By the 1980s, 2/3 of black children and 1/3 of white children were born to unmarried mothers. This radical shift destroyed the economic security that once provided stable marriages and working fathers, replacing it with widespread dependency and state assistance. This idea is not popular in the girl boss, I don't need no man era, but whatever is true is true. And fathers who previously provided stability now faced economic incentives to leave home. Mothers risk losing critical benefits if they married or their partners found steady work. So, instead of lifting families up out of poverty, welfare trapped them in cycles of dependency, discouraging marriage, eroding paternal responsibility, and incentivizing unemployment. 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That's why neighborhoods descended into chaos with violence so rampant that families now, in certain neighborhoods, will often place their children in bathtubs at night to shield them from stray bullets. That is wild. That's a poverty problem. That is not a race problem. The absence of fathers creates a vacuum of authority, discipline, and protection, fueling unprecedented violence, drug trafficking, sex trafficking, and community decay. The takeaway is clear. The most destructive form of inequality isn't income inequality. It's the devastating absence of stable families and committed fathers. Welfare policies, though well-intentioned, inadvertently dismantled the cultural foundations that enabled millions of Americans, black and white alike, to rise out of poverty. As I hope is rapidly becoming obvious, lasting prosperity does not grow from redistribution of wealth. It emerges from stable families, self-reliance, responsibility, engaged parents, education, and government policies that support all of the above. These invisible structures sustain not just economic success, but healthy communities, safe neighborhoods, and vibrant futures. And that is precisely what's under attack right now, which is why we've got to talk about part five, the social dangers of America's economic decline. In America, the richest nation in human history, life expectancy has declined for three straight years, driven by deaths of despair from drugs, alcohol, and suicide. Over half of young Americans today believe their lives will be worse than their parents, reversing the American dream. This pessimism isn't unfounded. It is the direct result of catastrophic economic policies, very specifically deficit spending, massive debt accumulation, reckless money printing, and artificially low interest rates. All of that has systematically eviscerated the middle class, driven inequality way past natural levels, and has begun to undermine the genuine prosperity that has defined America for 250 years. Historically, America prided itself on being the land of opportunity where hard work all but guarantees upward mobility. If you did the right things, you could count on your life being better than your parents. But not today. Today social mobility has stalled. The American dream has become increasingly mythical. Wealth inequality is at Great Depression levels, and we're once again starting to see the kind of rigid class structure that defined pre-industrial revolution England and the Gilded Age of America. Wealthy families are beginning to entrench at the top, while the poor stay trapped at the bottom. And this is a recipe for violence. Studies confirm this stagnation is real. Those born poor today are more likely than ever to remain poor, while children of wealthy families continue to accumulate advantages. The stickiness reinforces entrenched privilege and persistent poverty. If you've made it this far, you know exactly what's going on. It's not a lack of resources. In fact, America is wealthier than ever. It's the result of cultural changes brought on by decades of misguided economic policies. The point I want to make isn't that it's happening. Everyone can feel that it's happening. I want to make it clear how dangerous it is that it's happening. The middle class, historically the vital bridge from poverty to prosperity, has been systematically dismantled. Inflation and asset bubbles fueled by easy money have made education, housing, and health care unaffordable, locking millions out of opportunities their parents once had. Without a strong middle class, the path to prosperity crumbles. And this dynamic undermines America's promise that anyone can succeed with hard work. As social mobility fades, resentment grows, populism thrives, and envy drives everybody's voting decisions. And that serves to deepen the crisis. Populist politicians exploit everyone's anger, offer up villains, and promise quick solutions. Punitive taxes, debt forgiveness, expansive welfare, solutions that sound good to angry people, but just like in Uganda, collapse economies and lead to decades or even centuries of misery. Envy becomes politically useful as it drives people onto teams and makes it easier to please your base with promises of free things and punishment for the bad guys. It's not that people inherently dislike success. It's that they want it for themselves and understandably so, but they mistakenly believe that wealth is a zero-sum game. But remember from earlier, wealth isn't a game of resources, it's a game of ideas and innovation. But good luck convincing people of that when their life expectancy is shortening, they're doing worse than their parents, they can't afford a house, they have insane amounts of debt, and Jeff Bezos has a yacht to supply his other yacht while they have to buy a burrito on layaway. It's enough to make anyone mad. But this setup has played out countless times throughout history and it goes like this. Populist envy misdirects attention from inequalities' actual causes, reckless monetary policy, artificially low interest rates that encourage debt, and a hollowed-out middle class. The rich get richer and the poor get poorer mechanistically. That's what happens with stupid policy. The method of creating genuine prosperity gets forgotten and people harangue their politicians to print money and give them the proceeds, not understanding that this is like drinking seawater when you're dying of thirst. Sure, it's wet, but the salt dehydrates you and you die faster. Water, water everywhere, but not a drop to drink. That's this moment. The natural inequalities of genetics, culture, and geography get replaced by the very unnatural inequalities of debt and money printing. The Gini coefficient kicks in and the private plane pilot thinks, "I'm either going to steal this plane or crash it, but I'm not going to fly it to the private bunker in New Zealand for Peter Thiel." Now all of a sudden everyone is mad and confused. People start reasoning emotionally and the Indians get expelled, the means of production are confiscated, the guillotines come out, Napoleon makes himself emperor, and the Jews get pogrommed. And to make this even more fun, this never solves any of the underlying problems. It just makes them worse. History repeatedly shows forced redistribution backfires, deepening inequality and dysfunction. Ask your favorite AI to tell you the story of Lenin and the Kulaks. It's horrible. Millions of people starve to death. It sounds so abstract to say the bad policy has these huge impacts, but the reality is that it can and has, many many times, led to millions of people dying. The unpleasant, but all too true fact is, when inequality is pushed beyond its natural boundaries, people become punitive. And punitive economic interventions destroy the very incentives required to generate wealth. This then replaces productive investment with political favoritism, which leads to stagnation. The economy spirals downward, hurting the very communities populists claim to help. If you don't think this spiral has already begun, be sure to check out the DSA of New York's panel on the abolition of the family. You heard that right. They want to abolish the family. That, and they actually say we should seek totalitarianism. Not words like that. Those exact words. Thomas Sowell has desperately tried to warn people. You cannot forcibly engineer prosperity through confiscation and redistribution, though people are trying. Real prosperity arises organically through incentives that reward innovation and productivity. Artificially forcing equality of outcome inevitably deepens poverty and the very inequality that they're trying to alleviate. So, why pursue policies that don't help the poor? Here's the bitter pill. Because they actually just want to punish the rich. A cross-cultural study found that people will choose policies that hurt the poor before they will choose a policy that helps the rich. So, if they could help the poor, but it meant also helping the rich, they wouldn't do it. They would rather see the poor suffer as long as they can hurt the rich. History vividly demonstrates this toxic populist trait is true. Argentina, once wealthy, succumbed to populist debt redistribution and hyperinflation and as a result plunged millions into poverty for 100 years. That's not a recession. It's economic suicide. Venezuela, same thing. Populist redistribution and price controls turned oil riches into economic collapse and humanitarian disaster. Zimbabwe's populist land redistribution and money printing resulted in more of the same. Hyperinflation destroyed savings, agricultural collapse, starvation, and economic destitution. These examples and so many others show over and over that populist envy leads to forced redistribution, which breaks the self-sustaining economic engine and leads to economic collapse and greater poverty. Envy-driven policies just don't work. They may end in a more equal society, but it's equal only in shared misery, except for the elites, of course. They'll remain in their palaces. We face a clear choice. Embrace real sustainable solutions or continue down a path of seductive false promises and inevitable economic collapse. An economic collapse isn't abstract, it's protracted misery and death. Our future prosperity depends on choosing wisely. So, welcome to our final section. Where do we go from here? In the 1960s, South Korea was one of the world's poorest countries. Today, it stands as one of the richest, surpassing many European economies. South Korea's rise wasn't about redistributing wealth, social welfare, or exploitation. It was about building wealth through stable families, rigorous education, and policies that prioritize innovation and productivity. Singapore followed the same playbook and went from having a lower GDP per capita than Mexico in 1960 to being wealthier per capita than the United States today. These aren't flukes or miracles. They're societies that had the courage to face the realities of how a society crawls out of poverty. Cultural values and political policies that incentivize education, hard work, innovation. So, let's concretize these into the six drivers of prosperity into the hope that we can nudge the West back towards a positive direction. Number one, end the disincentives to family formation. If we truly want to build lasting prosperity, we must start with a family. Stable families aren't merely beneficial, they're the foundational building block of every prosperous society ever created. Yet today, government policy in America often does precisely the opposite. It punishes marriage, discourages stable relationships, and undermines the very family structures children need the most. Welfare and social assistance programs should be designed to actively reward and incentivize stable marriages. We also need practical, community-based solutions like family mentorship programs. Pairing young parents with experienced older couples from their own communities has proven remarkably effective, especially in immigrant-heavy areas. The data's clear, a stable two-parent household does more to defeat poverty than any government welfare program ever devised. A committed family environment boosts educational outcomes, fosters economic stability, and provides emotional and psychological security. Families are the ultimate economic and social cheat code, able to lift individuals out of poverty far more effectively and sustainably than any external intervention. Two, tie welfare to skill building, not stagnation. Vote for work and learn models over permanent cash assistance. Convert open-ended welfare into time-limited mobility accounts that cover child care, transportation, housing, and job training costs, but sunset automatically after 24 to 36 months. Assistance must always have an end date, creating urgency and clear goals. Incentivize positive exit behaviors, rewarding recipients for completing high school equivalency, obtaining technical certifications, or maintaining stable employment for at least 12 consecutive months. Provide clear, measurable path out of welfare. Allow recipients to tangibly own their upward mobility where rather than remaining perpetually dependent. This is going to require key areas of manufacturing to return to the US, but more on that in a second. Three, break the government school monopoly. Education is so important. Hopefully, that's become super clear through this whole thing. And if we're going to genuinely build lasting prosperity, we are going to have to make education a huge part of our foundation. As of today, however, millions of children are trapped in failing public schools simply because of the zip code that they're born into. This isn't just unfair, it is a national tragedy. By ensuring that every kid has access to a quality education, we ensure that we can surface the most talented among us. Natural inequality can work for us, but if countless brilliant minds fail to develop because of the education system, it's the same as a society being isolated by bad geography. People just don't develop. We have to break the government's monopoly on education by implementing universal school choice nationwide. Education dollars should follow the child, not the bureaucracy, and bad teachers should be easy to fire. Families should have the freedom to choose schools that actually deliver results, whether it's charter schools, educational savings accounts, school vouchers, tech boot camps, online academies, or vocational training programs, whatever. Doesn't really matter. Parents and students deserve the freedom to select the best possible education. And they are the ones that most likely know what the child would benefit from. In trying to ensure that kids with bad parents don't get left behind, we've left everyone behind, equalized at zero. By letting innovative education providers compete directly for education dollars, we can create an environment that demands excellence, innovation, and accountability. Schools that fail their students should no longer receive endless second chances. Any public school consistently failing children for over a decade must immediately be defunded. Children don't get second chances at education, and neither should failing schools. Four, deregulate so more people can enter the productive economy. AI is about to change the employment game forever. More and more people are going to be starting their own companies, and this change stands to unlock a wave of innovation, but not unless we make some changes. As of today, countless low-income Americans face enormous hurdles simply in trying to start a small business or operate a basic service. These unnecessary barriers lock out millions from meaningful economic participation, and this will be magnified a thousandfold as people are laid off from traditional jobs that are going to be replaced with AI. To genuinely build prosperity in this modern age, we must dramatically lower the cost of entry into the productive economy. It begins with aggressively rolling back restrictive occupational licensing for low-risk industries. Aspiring entrepreneurs who want to braid hair, perform handyman tasks, or even prepare small-scale food items face expensive and absurd licensing requirements. These laws are not about safety, they're about regulatory capture, and they serve only to protect established businesses from competition. We also need to rapidly expand apprenticeship programs offering a meaningful alternative to expensive, debt-heavy college degrees, and allow student debt to be discharged via bankruptcy to force discipline on both lenders and borrowers. Finally, we must streamline zoning and business incorporation regulations, particularly in low-income communities. Too often, starting even a modest business means navigating a nightmare of fees, permits, and red tape. These bureaucratic hurdles disproportionately punish aspiring entrepreneurs in poorer areas, depriving communities of local innovation, jobs, and self-sustaining economic growth. Five, end bad monetary policy. Stop borrowing from the future. We're in a psychotic economic death spiral specifically because of bad monetary policy. Debt and money printing derange everything because it allows the government to secretly tax you via inflation. That is the exact right way to think about it. I know it sounds crazy the first time you hear it, but once you understand that inflation is a tax, you'll understand why deficit spending, which is a huge driver of inflation, is so bad for the average person. If we want real prosperity, we must fundamentally change America's broken approach to monetary policy. We are piling up catastrophic levels of debt, stealing from our children's future, and making it impossible to buy a home, which is far more catastrophic than most people realize. If you don't own a lot of the stock market, you'd better own a home. The solution to fixing our monetary policy woes is very straightforward, though it's not necessarily easy. One, stop deficit spending ASAP. We have to force the government to balance the budget to within a 3% margin of collected taxes. Two, reduce the national debt. A smaller, less intrusive government that lies within its means stabilizes the economy and frees up billions of dollars that would otherwise go to paying off the interest on the debt. Three, bring high-skill blue-collar jobs back to America. By sending these kinds of jobs overseas, we robbed workers of good-paying jobs and bargaining power. We need to revitalize our key manufacturing sectors with incentives that encourage companies to create stable, good-paying jobs at home rather than outsourcing them abroad. Four, end the importation of cheap labor. We have to stop using immigration to depress local wages. When there's no promotion ladder and no bargaining power, wages stagnate. Five, let students discharge student debt in bankruptcy court. Universities and lenders alike must develop the kind of fiscal discipline that only comes with being responsible for the investments you make. If students can't discharge debt, there's zero incentive for schools to control tuition costs or for lenders to make responsible loans. It also puts students behind the eight ball before their adult lives have even begun. It is a complete and unmitigated disaster. Six, deregulate housing aggressively. By eliminating burdensome regulations, we dramatically lower the cost of housing, making home ownership attainable again for everyday Americans. Housing is the only asset that people understand intuitively. And in a high inflation economy like the one we have, if you don't own assets, you are getting destroyed. All right, the sixth thing to do to end our economic death route, encourage asset ownership, not just trading time for money at a job. If we genuinely care about lasting prosperity, we have to teach people the difference between wealth and income. And it all boils down to asset ownership. Income is important, but it doesn't compound and it will be stolen away by inflation. Unfortunately, money printing artificially inflates asset prices massively. And going back to housing, when that's out of reach, most people simply never put enough money to work in other assets like the stock market to make any meaningful difference. We have to teach people about assets and make housing more affordable. Otherwise, inflation will continue to make it impossible to get ahead and the rage will continue to escalate. All right, we are at a crossroads. The choice before us isn't just about politics or economics, it's about culture and how we design our society. We can choose envy, anger, and easy answers that feel good in the short run, but history is ruthlessly clear. Poverty is the default. Prosperity requires knowledge and wisdom. We've just walked through what works and what doesn't. We know the stakes. Let's choose innovation over stagnation, opportunity over envy, and education over hierarchy. Let's embrace that we'll never have equal outcomes, but that our current levels of inequality have become unnatural. We can absolutely make our future brighter than our past, but it's not going to happen by accident. We have to choose wisely. If you want to join me in real time as I think through problems like this, be sure to join me for my lives on YouTube Wednesday and Friday at 6:00 a.m. Pacific. And until next time, my friends, be legendary. Take care. Peace. >> If you like this conversation, check out this episode to learn more. I get hundreds, sometimes thousands, of comments on my videos, and today we're going to be going deep in the comments on the recent deep dive on taxes. Here it is, Drew. Welcome to the comment section. >> Hey, let's do