Rick Caruso: How Broken Is Los Angeles Anyway? Fires, Riots, Protests, and Immigration | Tom Bilyeu
Watch on YouTubeVideo summary
In this episode, billionaire developer and former mayoral candidate Rick Caruso joins Tom Bilyeu to analyze the severe political, economic, and social fractures facing Los Angeles following recent riots and wildfires. Caruso argues that the city's leadership has failed due to a corrupt culture where elected officials often skirt the law rather than serving public interests, leading to critical underfunding of essential services like police and fire departments. He highlights specific instances of incompetence during the Palisades fires, noting that private firefighters were necessary because municipal water reserves ran dry despite warnings from experts. Caruso emphasizes that while he applauds peaceful protest against immigration policies, the current approach has been cruelly executed by rounding up hardworking individuals rather than targeting actual criminals or gangs, a distinction he believes is vital for maintaining community safety and economic stability. The conversation delves into the concept of culture change as the primary solution to these systemic failures, drawing parallels between Caruso's turnaround at USC during a sexual misconduct crisis and his efforts with LAPD under Bill Bratton. He asserts that leadership drives culture rapidly when leaders bring people along through clear vision rather than relying on slow-moving public sentiment or ideology. A significant portion of the discussion focuses on immigration reform; Caruso advocates for a bipartisan pathway to citizenship for hardworking undocumented residents who have contributed economically, while simultaneously calling for strict enforcement against criminal elements and cartels. He criticizes the current administration's handling of these issues as politically motivated rather than pragmatic, arguing that the economy desperately needs reliable workers to rebuild areas devastated by fire. Caruso also addresses the paralysis within city governance under Mayor Karen Bass, detailing his strategic decision not to support a recall effort due to its high financial cost and timing risks just before the primary election. He explains how Steadfast LA is attempting to bypass bureaucratic red tape by implementing AI-driven solutions for plan checks and undergrounding power lines in fire-prone areas like Altadena and Malibu, often having to push these initiatives "in spite of" elected officials who lack competence or political will. The dialogue touches on the broader economic drivers causing California's decline, specifically high costs of living, over-regulation that pushes industries out of state, and a government mindset focused on redistribution rather than entrepreneurship. Caruso stresses that true leadership requires making tough decisions without fear of re-election consequences to ensure safety, lower taxes, and business growth for families across the region. Ultimately, the episode concludes with a call to action for voters to prioritize competence over ideology and for leaders to embrace an entrepreneurial mindset focused on outcomes rather than political theater. Caruso warns that defending incompetence or allowing government agencies to run out of basic resources like water is unacceptable, urging a shift toward accountability where bad actors are removed while good people are integrated into the economy. He expresses hope that continued exposure through media platforms and direct action by organizations like Steadfast LA will eventually wake up the public and elected officials alike, fostering an environment where safety returns to Los Angeles without sacrificing compassion or economic vitality.
Read the full video transcript
What happens when your city burns and
the people in charge pour gasoline
instead of water? America is in danger
of unraveling politically, economically,
and socially. This is literally one of
the most volatile moments in modern
history. Riots in our biggest cities, a
trade war with our biggest partner, and
a government seized by division. The
extremes are pulling harder than ever
and real leadership feels non-existent.
But disruption always creates
opportunity, and today I'm joined by a
man who ran to fix the second largest
city in America and got a front row seat
to how broken the system really is.
Billionaire developer and former mayoral
candidate Rick Caruso joins me today to
break down what he saw during the LA
riots, why political leadership is
failing, and what it will actually take
to rebuild trust, safety, and the
American dream. If you're tired of empty
outrage and want an actual clear path
forward, this is the episode for you.
I feel like right now we are in one of
the most precarious moments in modern
history, for sure, with the political
divisiveness that we have. LA is
certainly going through a microcosm of
what we're experiencing on the national
level. Yeah. What would you have done if
you'd been in charge during the recent
LA riots? I think you've got to have
a culture change in the city of Los
Angeles. So,
you know, go back before the riots. You
you have a culture in this city of a lot
of elected officials going to jail.
Um a lot of elected officials skirting
the law, quite frankly.
Mhm. I think the the culture in the city
uh is corrupt to some extent. It's
certainly not a culture that demands
excellence, that demands everybody
sitting up a little bit taller,
and serving the best interests of the
public over yourself.
And then part of that culture is that we
don't tolerate breaking the law in the
city of Los Angeles, right? We support
LAPD to be good stewards of the law
and not only to respond to a criminal
act, but more importantly, a good police
force is designed to help prevent
criminal activity. You don't just want
to respond to it after the fact.
But what have we done in this city?
We've defunded the police, we've
defunded the fire department. You look
at the current budget,
we're a billion dollars
in a deficit. We have declining revenues
and there's more cuts to LAPD. We will
have
probably the lowest
police force of any major city per
capita by a factor of two.
Not just by a couple, by a factor of
two.
So then you get to the riots.
Well, look back what happened to COVID.
COVID
was a time that you couldn't even call
it a riot, even though they were
destroying property, including mine. You
had to call it a protest,
Uh-huh. right? So at least we've gotten
to the point you can call it a riot now.
But it was a riot back then, but what
did we do back in COVID? We allowed them
to do it.
There were stand down orders. Don't
incite them, don't get involved.
And at the Grove, they came through, if
you remember, and started breaking
windows
And watch it burn, the little police
station inside the Grove that they lit
on fire, yeah.
Yeah. Can see it now.
my proudest moments was one of my senior
executives climbing up and grabbing the
American flag on the coban and saving
it. It was to me it was just so
beautifully symbolic so that it didn't
burn.
And what was happening then, and I
called Garcetti at the time as mayor,
and I just said, "What are you doing?
Why are you allowing this to happen? You
need to put a police line out. You know,
you need to guide them in another
direction."
Why don't they?
Like do they have a reason? I think
they're better or not.
I think the reason is, Tom, is quite
frankly, they're weak.
I think they feel that there's
um some kind of protocol into not
aggravating them.
Um when I was the police commissioner
you used to literally have to pull a
permit in order to
walk the streets, protest, whatever you
want to call it, right? There was
there was a set of laws and protocols
that were required.
We need to go back to being a lawful
city.
And that's the culture. So, what would I
have done in the riots? In the very
beginning
you don't tolerate property being
destroyed.
Our mayor spent 2 days allowing it to
happen.
And I don't know if you're right. Now we
have a $20 million bill
because of damage to LAPD of all the
damn things.
They raided LAPD headquarters. I didn't
hear about that. Oh, and they stood
down.
So
I think what we have to do in our city,
in any city, is you got to say
we want people to respect the law.
Um we're going to hold people that break
the law accountable.
We're going to police communities in the
best of ways, certainly never take
advantage of communities.
And make sure our police are absolutely
well trained.
But go back to things that Bill Bratton
and I
brought in years ago.
Senior lead officers, a cop walking a
beat knowing business people, knowing
neighborhoods understanding the mood.
That's all the prevention side of it,
right?
Um and we got crime down to levels not
seen since 1950. Hm.
And in a very respectful way. And this
was post Rodney King. Yeah, no, I was
here for it.
Yeah, scary.
I remember, well, take I wasn't here for
Rodney King, but I was here for the time
where you guys were rebuilding right
after. Okay. Um you've talked about
culture, you've talked about mood. Those
feel like the right places to start. Um
if So, you laid out what's broken about
the culture, but talk to me about the
mood. What is the mood right now? How
much of what we saw during the riots was
uh paid agitators and how much is on the
ground people are fed up with something.
Yeah.
Well, people being fed up with something
and wanting to take to the streets in a
peaceful way, I completely applaud.
Do you feel that mood? Like where where
are we? Is it
I love all these policies let's go
harder blue, let's be more hands-off or
is it
no, we need law and order like
I honestly don't have a great read on
You talking about the mood of the
elected officials in charge of the mood
of Let's
get to the people on the street I I
don't I don't like and I've been very
open about this and public about it. I
don't like saying
people that are here although illegally
that have worked hard and are good and
haven't broken the law being scooped up,
separated from their families and
shipped off. I don't like that.
We have enough people in this country,
in this region that have broken the law,
that are illegal.
Let's go after them
and let's find a pathway for good
hardworking people to become a citizen,
to earn that right to be here.
I feel very strongly about that. So I
Give specifics on that. Like what's the
line in the sand? 5 years, 10 years, 9
days?
Let's let's sit down in a bipartisan
way. This is a really great bipartisan
thing to do.
Because
Tom, one is a matter of fairness. The
second is a matter of sheer reality that
our economy needs hardworking people.
Now more than ever by the way.
When you talk about rebuilding Altadena,
rebuilding the Palisades, rebuilding
Malibu, you need workers.
And a lot of these workers also, and I
don't know the number
worked in Malibu, worked in Palisades,
maybe worked and lived in Altadena.
They lost everything.
They lost their jobs or maybe they lost
their home.
And now we got people running around
picking them up. I I just don't like
that.
And so, let's say if somebody's worked
here for 5 years
and goes to school, learns the history
of the country, you know, qualifies to
be a citizen, whatever that may be,
doesn't have a criminal record.
My God, let that man or woman continue
to contribute to our economy. Let's get
the bad people out. For sure, get the
bad people out.
We have gangs running around the city
that are really, really bad people.
Let's go around them up,
you know, for sure, that are selling
drugs on the streets,
that are create uh committing violent
crimes. Let's go do that.
But, um so I understand that people want
to take the streets
that are angry about that.
I also understand, quite frankly,
that the way it was done
was done, I think,
in a very cruel way. It didn't have
up, you mean?
Yeah, it didn't have to be
the running in and the
it it just has such a hardness to it.
Do you think it's a shock and awe thing,
or is this like where they're actually
trying to make a statement, or is this
just Trump's personality and he doesn't
think about it? I think it's I think
it's Trump's personality. I don't know
the man,
but I think there's a lot of different
ways that you can accomplish things in
life.
I know when we were fighting crime at
LAPD with Bill,
um listen, you have to make some tough
decisions, and you got some bad people
out there, and you better be really
prepared to deal with the bad people.
This isn't what they were doing. They
weren't going rounding up bad people.
They were rounding up people that were
working at a car wash. A guy that was
selling fruit at the corner. I mean,
you don't need to bring in the military
officers to do that, right? With all the
gear and everything.
But, that's just my take on it. So, I
think there's a lot of ways we can
accomplish things. So, I understand
where were were on the street, and they
were upset.
But I also have zero tolerance for any
kind of violence on the street. And zero
tolerance
for destroying any property. We have to
have
really bright lines
in the city in order to protect our
communities, protect our businesses,
protect our families. I don't think it's
that complicated, by the way.
Do you tin foil hat up at all? Like, do
you think that there were like paid
agitators? Like, since COVID
there was. Yeah, okay.
there was.
Who and why?
was.
There's they get
People
get joy. These are odd, weird people.
They get joy out of rioting and
destroying somebody else's property. I
mean, you just
you look at some of the film that was
coming out of LA and running into the
Nike store or the Adidas store or LAPD.
I mean,
who are these people? How do you get off
on that?
But I would say though that's pretty
different than if somebody behind the
scenes is paying people
Well, that's even sicker. You're right.
Do you think that's happening?
I believe so.
I do believe so.
of what the agenda would be? Like, is it
just tear the system down or
You've got organizations in this city
that have a violent bent to them, and
they coexist and they're in our streets.
Are we talking cartels? What what do we
You're talking more political
organizations that just want to create
anarchy. That that want to
uh completely mess with the system.
And and terrorize people. Absolutely.
Not to put you on the spot, but are
there names? Like, what kind of
organizations? Are there specific
organizations or you can just sort of
feel them at the edges? There's
something picking at
specific organizations, but I don't want
to name names.
But um
LAPD knows who they are. Most people who
are involved know who they are.
There was a number of those
organizations that really tried to make
my life miserable during the campaign.
Um Because you're a
one order focused kind of person or
something else?
Because, uh, yeah, that and probably an
easy target. I don't fit their mold. You
know, these are people also that go to
the real extreme.
They want no cops.
They want the prisons opened up.
You know,
uh, there's some people out there that
really do believe in things that would
be terrible for the city. Mhm. And we
saw it play out, if you remember.
We saw it play out in city council
chambers.
When that whole tape was released, if
you remember that.
With Gil Cedillo and and everybody.
And the tape came out and there was
groups of people that kept
uh, interfering and interrupting with
council meetings.
And it got it got pretty heated. It got
some punches thrown. There was organized
groups of people that were doing that on
a daily basis.
And here's the thing that should have
happened. This goes back to culture.
Shut the chamber doors and don't let
them in. Mhm.
They don't have a right to be there.
No.
They don't. But
we need to we need to change, to your
point,
like when you have wins, you need to
change that
trajectory. And you actually don't have
to change it very much.
Because just like in sailing, distance
will make a lot of changes for you.
Yeah, but the distance is measured in
time. Yeah.
So, uh, man, you're way more comfortable
with that than I am. So, I have the good
or bad fortune. I moved here in '94. So,
this is right as Yeah, you guys were
starting to get it all together and I
watched Hollywood go from If you went to
Hollywood and Vine, you were there to
pick up a prostitute. I mean, it was
crazy in broad daylight. I was like, as
a kid from Tacoma, I was like, what is
happening? And then I watched it get
turned around and like really become
this beautiful, incredible place. And
I've watched it decline again.
Yeah. And so, culture has consequences,
but culture also moves so slowly.
It's all leadership, Tom. It is all
leadership, and you can move culture
very quickly, and I've done it a number
of times.
With the right people with you
doing it. We moved LAPD
really very quickly.
Mhm. Um you know, when I became chair
of, you know, University of Southern
California, which I didn't I wasn't
seeking that job.
It was a crisis at USC. It was probably
was this?
Um this was probably 5, 6 years ago now.
Okay. That's where I went. Okay.
So, this is the Dr. Tindall crisis.
You know, thousands of students female
students were taken advantage of.
Woah. The cover-up
Oh, yeah. I mean, it was terrible. I was
on the board.
Um
cover-up on it. It was a management
implosion.
They came to me and said, "Would you be
the chair and lead us out of this?"
And actually, as a side note, my
daughter was just starting school that
year.
And I said, "I I'm going to go home and
talk to my daughter because I don't
think
anybody wants to have their dad as the
chair of the university they're going at
in the middle of a crisis." But God
bless my daughter, she said, "Pop, let's
do it, and we'll be on campus together."
You know, and it was great.
But that was a massive culture change.
I had to remove the president of the
university. I wouldn't let him come back
on the campus. Woah.
I had to change the governance of the
board. I had to size down the board.
Um change the rules of engagement and
what got approved by us. The whole
structure.
I would say it took about a year.
A lot of infighting
uh to get it done.
But we came through it um brilliantly
thanks to a lot of really talented
people working alongside of me. So,
basically, you're saying um culture is
downstream of your leadership. Change
your leadership, you can have a
different culture and have it very
rapidly. You just got to make sure
you're bringing everybody with you.
What does that mean?
That means, you know, sort of the cheesy
line that I always use that if you're a
leader and nobody's following you,
you're just somebody going for a walk.
It means that good leaders know that
you're walking with people, you're
explaining to them where you're going,
why you're going to go there,
how important they're going to be a part
of this culture change, what the rewards
are going to be, the payoff is going to
be, meaning we're going to change
people's lives. We're going to
keep them safer. We're going to reopen
these parks and kids are going to have a
better quality of life. Whatever that
goal is,
good leaders always know to bring people
with you.
And and inspire them and bring people
around you, frankly, that are smarter
and as passionate, if not more
passionate, than you.
And draft off of them.
I teach entrepreneurship and one of the
things that I try to get people to
understand is, listen, you'll look at a
Steve Jobs, you'll look at an Elon Musk
and there'll be plenty of people that
will criticize them because they didn't
actually do the coding or Elon isn't
actually the one building the rocket
engine. And it's like, but hold on, the
hardest thing to do as an entrepreneur
is get the right team, point them in a
direction and get them all moving at
pace. And so, this is exactly what these
guys that we look at and revere based on
their accomplishments was they're able
to attract and orient talent. Um what is
it that allows you to do that?
Well, I think part of it is DNA. You
know, it's how you're wired.
I always use Walt Disney as a great
example. I'm a big fan of Walt Disney.
And I
tell people Walt Disney as a profession,
he was a cartoonist.
And he was a really good cartoonist. But
if he would have just remained a
cartoonist, none of us would have ever
known who Walt Disney is.
And then he started the Walt Disney
Company, and he became a businessman.
And the combination of the cartoonist
and the businessman, he made some
interesting films, but again, nobody
would have ever remembered him really,
or certainly wouldn't be as relevant
today as
as he was many years ago.
But what he really was was this
visionary
that had the ability to see around a
corner.
And
to take his talents and marry it with
his vision, and then get people excited
about it.
And that's a really unique thing to do,
right?
And and bring,
you know, constantly absorbing talent to
take you to the next level.
Nobody can do it alone. I would imagine
that Elon has some of the most brilliant
people in the world around him that he's
inspiring every day. But all Elon has to
do
is be the visionary that sees around the
corner and realizes, I've got to
populate this idea with really talented,
passionate people.
Steve Jobs, I always think about. I met
him
when we were doing one of the first
Apple stores at The Grove.
He built and took down his space three
times. Woah.
Wasn't happy with it. And I finally said
to him, "Steve, we got to get open. You
know, I can't have you keep tearing
down."
But he was such a perfectionist. He had
his vision so tight. It was wild, right?
But when you think about Steve Jobs,
one of the most brilliant guys ever,
he never really invented anything new.
He reinvented something
and made it to the point that you
couldn't live without it.
I mean, it was just genius, right? We
had
cell phones,
but it didn't compare to the iPhone.
And so, we had cars, but it doesn't
compare to a Tesla. We have rocket
ships, but it doesn't compare to SpaceX.
Yeah. So, I don't know. I just I I
really admire people that
have these exceptional
brilliance, but really tied to vision,
and then the courage to just completely
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And now, back to the show. I fully
understand that it's one thing to want
to get things done, and it's a
completely other thing to actually get
them done. Right. And I find that
politicians tend to fall into the camp
of I'm trying to get elected. I'm not
necessarily
optimized as a an actor in the world to
get things done. I'm optimized to get
elected. Right.
I think that's very true. It's usually
the top priority. I really enjoyed
serving the public cuz I, as you know, I
served under three mayors in this city.
And I really saw different leadership
styles.
Um I served under Tom Bradley, Dick
Riordan, and Jim Hahn.
All very tough assignments, which I
enjoy.
And I was very convinced when I ran a
couple of years ago that the problems
could be solved.
And that I, along with the team of
people I would pull together, we could
solve them. And I still believe that
way.
Because it's based on and this is where
I think things start to fall apart. It's
based on, frankly, a track record and a
history of getting things done.
And having tough assignments and you
learn from each time that you do it,
right? So,
I was grateful that I had an opportunity
to bring that to the table to help the
city out.
When you take a look at our current
mayor and the mayor before that, by the
way,
um there was no history of
accomplishment, of getting things done.
They were legislative accomplishments,
maybe at best, and not really great
ones, by the way.
But there was no history of running an
organization
and making tough decisions and
understanding management and
understanding
staffing and governance and all the
things a CEO has to deal with, right?
Setting the course, as you're talking
about.
And then making sure you're bringing
people along with you.
Um and so it was predictable that she
was going to fail because
there's a lack of competence, but more
importantly or equally important,
there's a lack of experience that would
give you any indication that she could
have pulled off managing a very, very
complex organization like the city of
Los Angeles. Companies are good at that.
They're good at finding those leaders
are often times a leader just creates
the company.
Yeah.
But when you have to deal with
politicians, um I, to put my jaded hat
on for a second, I worry that the
reality is politics is downstream of
culture and that what you're describing
will work inside of a company, but the
odds of you being able to do it at the
political level when people have to get
reelected, um right now, there's just so
much political division Mhm. and
I I'm not sure how we get the voting
public on board with voting for
competence. Do you have a take like how
do we get the public to make that their
criteria?
Thomas, it's a great question. I
I'm hopeful
that
the fire woke people up
to the point that they said, "You know
what? Ideology is now not the most
important priority."
Um the most important priority is
competence.
Because we just saw what happens when
you have lack of competence. You have
700,000 acres burn
and hundreds of thousands of people
being impacted
um because they didn't do their job or
couldn't do their job, quite frankly.
So, I I hope there's a wake-up call to
that.
Um
and I think if we can get somebody in
the office in a office, whether it's me
or somebody else,
and quite frankly, I'd love to have the
opportunity to do it,
they can prove that you can be
compassionate and passionate,
you can create safety nets for people
cuz you care about the quality of life,
but you can also change the direction of
a city
in a way that
people feel proud to live here,
safe to live here, excited to build a
business here, excited to raise a family
here,
uh wanting to be here, not moving away,
wanting to come here. Let's get back to
the state and the city should be leading
the nation.
We shouldn't be like tucking our head in
our hands because we're sort of
embarrassed of the last thing that we
just did. Literally, that's how I feel
now. Right. I keep asking myself why I
have not left.
Yeah. Uh
And why? Just The real answer is my wife
has friends here. Yeah. Like if it
weren't for that on left to my own
devices, man, like when I look at the
size of the problem, it's so daunting
because there's a really famous Thomas
Sowell quote, and I believe that this
sums up where we are in California for
sure, and there's so much of this across
the country
uh that this is a paraphrase, but it's
very, very close. The last 30 years are
marked by exchanging what works for what
sounds good. Mhm. And I think that Mhm.
people they're voting for policies that
sound good, but I'm like, look at what's
happening. It isn't working. Right. So,
why do we keep voting for the same
thing?
And
Right. uh it's just like the the odds of
that changing strike me as so low. And
in fact, I'm I'm going to ask you a very
pointed question.
hopeful. I I know
Maybe I'm You have heard the phrase many
times.
yeah. Hope is not a strategy, and it's
like, I want a strategy.
Yeah. So, uh you waved people off the
Karen Bass recall. Yeah. Why? At the
like peak anger Yep.
Um why is because
it would have been a terrible strain on
the city.
It would have cost the city $30 million
that we don't have.
And more importantly
the recall vote would have been only
months before the June primary. Mhm.
People are going to get a chance
to fire her
or rehire her Yeah. in June.
And so to have a special recall vote
let's say April, May
March
and then you go into a primary, it was
so tight, it's not going to accomplish
anything.
And the other thing quite frankly is
very difficult to get 800,000
signatures. That's what you need for a
recall.
And you need somebody to fund it.
And I think the funding on that was
estimated to be about $10 million.
Yo. So, who's going to do it?
And then if it didn't get the
signatures,
then you're handing her a victory. Mhm.
And then she gets to say, "See, people
don't want me recalled.
They couldn't even get enough people to
sign
a petition." Yeah, fair. And then you
have her walking into the primary as a
victor. I just it wasn't thought through
and I was talking to the people that
were pushing the recall and I get the
visceral reaction and the need to do
that.
And had there been 3 years left on her
term or 2 years left on her term,
that's what you want to do, go do it.
But it was actually, in my opinion,
going to have the opposite effect. Mhm.
And I know people were very upset with
me, but
I I firmly believe it was the right
thing to do for the city. Miraculously,
your properties survived the fire. Walk
me through
how you ended up with the plans from how
you built the buildings to all the
things you did to make sure your
property stood through it. Sure. Well,
we we learned when we built um the hotel
that I have, the resort up in Montecito
in Santa Barbara.
So, we were building the hotel, the
resort was about 6 months ahead of
um
starting construction on the Palisades,
but there was the Thomas fire.
And we were just
structurally in wood was going up.
And as that Thomas fire was raging up in
Santa Barbara, I called the head of our
security who does special operations for
us,
and I said, "Banyon, you got to come up
with a plan to save the property because
the fire department, rightfully so, was
going to be protecting homes up before
commercial spaces."
And so, he's the one that developed the
plan that brought in private
firefighters, water tanks,
trucks, and the retardant.
So, we learned a lot from that. When we
were designing
Palisades, we knew we were designing in
a area with high fire risk. I mean,
the amount of fires that happened around
Malibu and that whole area over the last
50 years, right? It's not rocket
science.
And so, we designed the Palisades with
no combustible materials.
We designed the Palisades with no open
vents, so that embers couldn't get to
the inside of a building cuz most of the
homes that burnt
in the Palisades and Altadena burnt from
inside in inside out.
experts that tell you that kind of stuff
like that? When I heard that one, I was
like, "What What?"
Yeah. No, we hire experts, you know. How
do you design something to give you the
highest likelihood of it not burning
down? So,
you know, things that like buildings
that look like wood shingle buildings
were actually concrete that were poured
to look like wood. And
so, one is it was built right, and the
second is when these warnings were
coming out,
you got a warning, right? Yeah. I think
the only person in LA that didn't get a
warning was Mayor Bass. As these
warnings were coming out,
2 days before,
um Banyan
takes the manual off the shelf and goes
into the plan if there's a major fire.
And 2 days before we had the private
firefighters there, the water trucks
there, and the retardant there.
And um we were ready. And listen, I've
said this a million times. It's so true.
What is predictable is preventable.
And we
we wanted to be prepared, and we were.
And not only did we save
all of our structures, we saved all of
our neighbors and everything across the
street.
And we were loaning equipment to the
fire department. I mean,
the way this city has been managed is
insane that they were so underfunded
and that you can run out of water.
So, that night, cuz we had to evacuate
also, so my wife and I and our four
kids, we all evacuated. We live in
Brentwood. We left, too. My daughter
lost her house. My son lost his house.
But, the night we got the call on
January 7th of my daughter losing her
house
from Bannon, who was embedded in the
command post,
I couldn't believe the words.
He said, "Rick, your daughter's house is
burning because the fire department ran
out of water. They're standing there
with their hoses and they're dry."
I said, "Bannon, it's an impossibility.
This is the second largest city in the
nation. I ran LADWP. It doesn't run out
of water."
But, what did we find out?
They had an empty reservoir.
Months and months before this. Still
makes me mad.
What even should make you madder, the
head of DWP's never been fired.
Never been held accountable.
It's crazy. Crazy. The fire department
was never pre-deployed. They could have
put out I will debate with anybody that
that fire should could have never
happened. Mhm.
They usually pre-deploy. If they had
pre-deployed, they would have put out
that spot fire
and it wouldn't have happened.
What did you think when people were um
like voters, average people in the
public were saying,
"No, it makes sense that this was
uh empty and I totally understand. Like,
who could have predicted?" Like, the
number of people I saw defending
incompetence was That's the part that
that when I look at that, I'm just like,
I don't I don't know what to do. Like,
if people are going to defend it rather
than say this is not the outcome we
wanted, therefore we should have done
something differently.
Uh I don't know what to do.
Yeah, listen, I think that what I saw,
you know, there was also a bunch of
people online that were
criticizing me for saving the village.
Right? That's nuts. It's nuts. Of
course, it's nuts. But, that
conversation started to change over
time.
And then people realizing, you know
what? Thank God he did.
Cuz now there's
a place that's going to be the center of
town that can help that town get reborn.
Mhm. And it did show everybody you
actually can protect these structures
if you do your job right. Fire
department,
you know, the city, everybody just
failed miserably.
So you start Steadfast LA with the idea
of
uh I assume combating what you knew was
going to be a lot of red tape and
everything grinding to a halt.
Right. Uh how's it going?
It's going actually pretty well. I saw
an op-ed that you wrote recently that uh
would lead one to believe that you might
be encountering some
said pretty well. Well, listen, we're
encountering, you know, pushback and
we're encountering
uh incompetence and we're encountering,
for the most part, inability to make a
decision, which is just crazy.
But we're also making progress.
And, you know, we we have our deal with
Summa Homes. We're going to be bringing
in these small homes for people who are
very low income to get them back on
their property and get them back in the
community. We're excited about that. We
developed, along with Amazon and
Alquistar,
the plan check process through AI that
allows somebody's home
to be plan checked in a matter of hours
versus months.
Woah.
Awesome. So, you know, Steadfast What
Steadfast is is a nonprofit that I'm
funding. We got a full-time staff.
Its goal is to bring people back to
their home in a community as safely and
quickly as possible. Altadena,
Palisades, and Malibu.
And I asked a team of people, best in
the brightest in the industries,
the Parsons folks in terms of
engineering, Ezra folks in terms of
information technology,
um architects, lawyers. We got about a
dozen people
take a problem, unbundle it, fix it,
hand it off to the government agency.
The problems are too big for
the government alone to fix them, even
if you had a competent government, which
we don't. Hey. So, what we're doing is
we're handing them the solutions. How do
you underground the power lines? Don't
tell me it can't be done, cuz it can be
done.
We gave them a plan and they adopted it.
That's a really big deal to get these
power lines underground in Altadena and
Palisades and Malibu.
So, we're making a lot of progress.
There's a lot of progress we need to do
more of.
You know, we announced rebuilding the
park up in the Palisades, had a meeting
this morning about that. We've got some
great ideas in Altadena to help revive
their downtown and support the merchants
there to get them back on their feet,
which we need to do, get people working
again and being able to be prosperous
again.
So, I'm spending probably 90% of my time
on steadfast matters. Wow.
I'm assuming you wrote the article to
get attention for all of the sort of
lunacy of the problems that you're
running into, but so you just talked
about the AI that will do plan checks,
which is incredible and exactly the kind
of thing that I'd want to see AI used
for.
Yeah. However, they haven't implemented
it.
No. So, and your op-ed says, "I don't
even know when they're going to
implement this." So, this is the kind of
stuff that um honestly I've thought to
myself like 10 times since we've been
talking uh
would he ever start his own podcast? I'd
like to believe that if people hear over
and over and over the things that could
be happening followed by the things that
are the roadblocks this and this is
something Elon Musk is really good at
because he owns one of the largest media
distribution platforms on planet Earth.
But like when they forced him to kidnap
a seal, put headphones on it to see how
it would react to the sound of rockets,
just like suddenly people like, "Wait a
second, what is happening?" So, there's
a I think a huge benefit to people
becoming aware in a real-time basis,
like real-time, the unrelenting nature
of like, we are trying to do this. This
is a roadblock we're running into. Now,
we've tried to do this. Roadblock we're
running into. Hey, here's a counter. We
called Karen Bass and said this, and
this is how many days that she has not
called us back.
I really feel like, to your point, that
this, if you're going to get people to
finally wake up, because already we're
far in, and it's only like four or five
months since the fires, but we're
already far enough that people don't
have that visceral anger anymore, I
don't think. And
I think that getting them to vote in
their best interest for somebody that
can actually get this stuff done, they
they just have to see day after day
after day, like,
here's what we're trying to do. You
would agree this is in your best
interest. Here's the response, like, and
then here's the solution. You've said,
don't bring me a problem unless you have
the solution. Right.
I don't know. How's it sound? You going
to start a podcast? I don't know if I'm
I would be a good
Who do I pitch this to? We've got people
here.
Maybe I'll just be on yours more often
if I could. Listen, I I agree with that.
Um
and what we've done,
quite frankly, and maybe I'm sure we
could do a better job, I could do a
better job at it,
is I've told the team we will walk with
the elected official,
around the elected official, or through
the elected official. Oh, now you're
just flirting. Like, yes, please.
But I will tell you that
everything we've been able to accomplish
has been accomplished in spite of the
elected official. Mhm. We have had to
literally go around them,
and sometimes get ahead of them, so they
had to adopt it.
Uh Karen Bass was
very, very resistant on the AI.
We built it,
raised $2 million around it, so there
was no cost to the city, and handed it
off.
And if she doesn't implement it quickly,
I will be vocal about it. I'm trying to
give her a chance to do the right thing.
The park,
she was very resistant to it until the
very literally until the press
conference.
And now she's come around to be
supportive of it. Okay, great. I'll take
that. I don't care who gets the win. We
just want the wins.
And so,
I'm focused on it. I don't want to be
completely argumentative every day with
everybody. Because it's not your
personality, or you think it's not
effective? Because I think it's not the
right time yet.
I'm I
I want to get some successes,
and I frankly want to see elected
officials feel that success, and
hopefully they want to build off of it,
rather than be paralyzed by the scope of
the problem. And that's what we have
now. We have paralysis on
decision-making because we've got
leaders, including the mayor, that have
never had to make a big decision.
So, she doesn't know how to do it. She
doesn't know how to rely She doesn't
know how to hire the right people or
rely on the right people to help make a
decision, and she's not wired to take
risk.
When you've been in Congress for 10
years,
and the only bill that you've passed
is to name rename a library,
that tells you everything you need to
know.
So,
hopefully, now that she's seen that
there can be more movement, we'll get
more movement. But, I do worry about
it's frankly not her priority.
And I do worry about that. And it needs
to be a priority.
But, she's got
a whole bunch of problems going on
because
the way that they've managed the city,
it's all coming back to haunt them. They
got major budget problems they don't
know how to solve.
They've got the problem in the streets
in downtown. They did a terrible job
managing.
And she's got to go rebuild the city,
frankly. It's 300,000 acres.
She's not qualified to do that.
But she still hasn't hired the {quote}
{unquote} czar.
Right? Mhm. So,
it's just paralysis. And at at some
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impact. And now, let's get back to the
show. What about safety? For LA to be
the place like and this used to be the
place as a guy running a podcast. The
first of all, I came here for Hollywood
and Hollywood is now evaporated.
Yeah. Uh then I became a podcaster 10
years ago. This used to be the place. I
could guarantee people were going to
come through LA. Uh now that's Austin.
Uh so it's another thing that's going
away. And when you talk to the people
that leave, it's taxes and safety. I
mean, that's just like the thing.
Uh this again is feels cultural to me.
This feels like people that like they
want to be compassionate or something.
Uh there's I think a bill put forward
that says if somebody breaks into your
house, you're supposed to flee. I don't
know if it's passed or not, but that
that is absurd. If you break into my
house, I'm shooting you in the face. You
were going to be graveyard dead. Like
that
or like what's the alternative? Like
that's so insane. I cannot even be a
part of that. Uh you were a big part of
the uh movement. You talked about this
earlier where you replaced the police
chief commissioner. Police chief. And
then started turning that around. How do
we make LA safe again?
You make it a priority, which it's not a
priority now. You make it a priority,
it's got to start with the budget and
you got to hire more officers.
And you got to fill up the academy.
And so right now, like I said earlier,
we are going to have about
I think 2.5
officers per capita and we've got
that's two times less than the next
city. So, Washington, New York, I think
even San Francisco
has double the amount of officers. We
are at an all-time low.
I mean, when I was the police
commissioner and Bratton was the chief,
I think we had over 9,000 officers.
We're probably now at 7,000 officers. We
literally cannot
um
protect the streets. What about
prosecutions, though? Are people even if
we pick them up, if they just get
re-released, the bail issues that we
have, like how far does the reform go?
So, that's a That's a good example. So,
we changed leadership.
We got rid of the district attorney.
We brought in a great district attorney.
Who's the DA now?
Nate Nate Nathan Hochman.
He's He's doing a great job. He's
holding people accountable.
Um
and and we're seeing some real change.
Now, here Here's the issue with that.
In order to make a city safer, you have
to have a very close partnership between
a police force and the district
attorney. They go hand in hand.
LA County has 88 I don't want to get too
far in the weeds, but LA County has 88
cities, one of which is LA City.
If LA City, if the leadership, if Karen
Bass is not
of the same
culture,
policies
as the district attorney's office, it
doesn't work as well as it should.
You go to other cities like Beverly
Hills
that is being very tight on crime right
now, Culver City, Glendale, the cities
around us that are doing very well, by
the way.
Um
we've got to make sure that the policies
that are in LA that LAPD has to live
with are always very respectful of human
rights,
but hold people accountable and punish
people
if they if they commit a crime. Mhm.
Plain and simple.
But Nathan has done a great job as a
district attorney. So, there is a big
change. We changed the bail law that
overwhelmingly got approved in the state
in spite of Gavin Newsom coming out
against it. So, that's good. So, change
can happen, Tom.
It's got to give you a little bit of
hope.
Fingers crossed. Yeah, no, that's
fantastic. One thing though that
concerns me, and I know you're a
Democrat, but do you at all worry that
the current Democratic Party functions
like a cartel where no matter what,
their guy is going to be out front and
in charge?
Yeah, listen, I think the Democratic
Party right now is dysfunctional.
And it's got to get cleaned up. I mean,
one of the things that excites me is
that I can be helpful on giving it a
purpose, giving it a mission, having
some real priorities that line up with
what people want. Um it's not functional
at all, and I don't even know who the
leader of the party is. I don't think
anybody does.
Right? And so,
it are they a closed loop? Do they not
want ins outsiders inside the tent?
Yeah, right? We got to bust that up and
change that. And encourage young, smart
people to think out of the box to run
for office. How do you think California
became a one-party state?
I don't know, that's a good question.
I'm not a I'm not a good enough history
major to
I don't know, but California runs,
you know, sort of middle of the road in
a in a in a big way. More moderate.
You've got you've got your Republican
base, you've got your far left base,
but the majority are in the middle.
Majority are moderate Democrats and
independents.
And if they mobilize and get out and
vote, if they have a candidate that they
can mobilize around
that inspires them, um you could change
the direction of the state, for sure.
Do you know Schwarzenegger at all? I do.
One thing I found interesting, and I
have quoted him a gazillion times, is
that it took him a while, but he finally
realized that much of politics is Kabuki
theater
and that it's uh
What is Kabuki theater, man?
Basically, people are pretending. They
put on a face, they do uh Oh, I get
that.
a song and dance, and he was like, you
know, at the end of the day it was
There's nothing really there there.
Yeah, like he was just trying to get
things done, and people wanted to say a
lot of words, they wanted to hold a lot
of press conferences, but to your point
about decision-making,
they didn't seem to want to actually
move the ball forward. Now, in a
business, it the market is so ruthless,
it just does not care about you. And so,
you're like, well, if I'm going to make
payroll, I've got to solve this problem.
Mhm. One of the things, and I assume you
know little about my background, but one
of the things I've become obsessed with
is tracking everything back to the
economic cause. Like, what what is the
foundation of our economic system that
has led us to this? Right. Uh because I
just the thing that made me a successful
entrepreneur is tracking cause and
effect. So, it was like, I don't care
how I feel, my I have learned in life
that my feelings will lead me astray
because they're not married to the place
that I'm trying to end up. And if I can
state where I'm trying to get, then I
can just follow cause and effect to get
there. Okay. When I look at the economic
drivers that are pushing us um
where we're headed now, basically, I see
a lot of the dysfunction
really being born out of the what ends
up happening is you get a massive divide
of inequality between the haves and
have-nots Mhm. that people think is
happening at the level of politics, but
is actually happening at the level of
money. Um have you thought at all about
like the growing political divide and
how we get people back to the middle?
Mhm. I I have. One is based on a lot of
work that we've done, we think the
majority is in the middle. And so,
that's a good start.
What would people, I believe, want,
whether it's in the city or the state?
They want it to be safe.
They want the cost of living to come
down.
They want to be able to afford a home.
They want to be able to grow their
business, raise their family in safety.
They don't want to pay three times more
for gasoline than everybody else in the
country pays for.
They don't want to be over regulated,
right?
If we can do a bunch of simple things,
in my opinion,
I think you unleash the state. I mean,
the fact that we're the fourth largest
economy in the world,
given all the over regulation,
and given all the incompetency that we
have at the state level,
just shows you how powerful the economic
drivers here. But then, in spite of
that, what are we doing? We're pushing
out the entertainment industry.
You know,
it's 30% more expensive. I was talking
to a studio head the other day, Monday
night was what? 30% more expensive to
film in LA than to film in Atlanta. Why?
LA,
get off your rear end and change the
structure. The state of California,
change the structure.
New Jersey is eating our lunch.
Um Georgia is eating our lunch.
London has massive tax credits
for the entertainment industry. None of
this stuff is that complicated.
It takes backbone and will, and it takes
something else that's really important,
I think the most important. Making
decisions where you're not worried about
getting reelected.
Yeah. And I
I think that's the most empowering thing
in the world. Say, I'm going to go do
this cuz it's right.
And if you don't want me to be your
governor or your mayor anymore, great.
That's fine. You go to the ballot box
and you can fire me.
But I'm going to do what I think is
right. Yeah. Man, do I hope you get that
chance. Uh I think we somehow culturally
have to get people married and obsessed
with outcomes
uh to get them to think entrepreneurial
and say, "Oh, we want to do this thing."
And there going to be metrics along the
way. This is why I really hope as a part
of Steadfast LA uh that you do some
variant of what I was talking about,
where it's just a a if you're not going
to do a podcast a ticker tape of It's a
good point. We called, this is what
happened, this is how long we've been
waiting. Like let the rest of us then in
the media go grab that feed and start
blasting the stuff out on X and being
like this is crazy. Uh I like that.
We're going to be in June before you
know it. I think there's a national
divide you and I do not see that the
same. I don't think people are in the
middle. I think there's economic drivers
that are shoving people as far apart as
fast as humanly possible and because
body is looking at the economics of this
even to your point about we pushed the
entertainment industry out. You
Once you understand how the like how the
flow of money works, that becomes
self-evident because what ends up
happening is people can people think the
miracle is redistribution.
And instead of realizing that what
entrepreneurship is, whether you're
running a studio or doing what you do,
is you have done this incredibly
difficult thing where you've created a
system where you put inputs into it and
the thing that comes out the other end
is worth more than the inputs. That is
so hard to do and a government sees the
exact opposite. It just gets to take
tax, take tax, take tax
and somehow in California they got it in
their heads that people will pay
literally any price for the weather. And
because money's free for the government,
they just take take take take take and
don't realize, oh I'm killing the very
thing that generates my revenue. It's
insane. I know I got to get you out of
here. No, but you're very you're spot
on. So thank you for that. Thank you for
your time. I hope you do this. Where do
you want people to engage with you?
steadfastla.com
would be great and send us ideas and
information and also problems where we
can help in these communities and um
I'm really intent to make steadfast a
really powerful force in this region. I
love that. Keep going.
Keep going. It's amazing.
Thank you, Tom. Appreciate it. Thanks
for having me.
you. Can't wait.
Really appreciate it. All right,
everybody, if you haven't already, be
sure to subscribe and until next time,
my friends, be legendary. Take care.
Peace. If you like this conversation,
check out this episode to learn more.
Jeffrey Epstein's story was never about
sex. It was an illusion. Like the dress
some see as blue and others see as gold,
intelligence agencies exploit the same
trick. They shape what you notice and
distort what it means.