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- [00:00]
Just Food for Dogs Advertiser
This is an iHeart podcast guaranteed human
- [00:05]
America 250 Announcer
this July 4th, come celebrate at America's Block Party hosted by America 250. America's Block Party is a can't miss 4th of July concert happening at the Los Angeles Memorial Coliseum. Experience music, performances from major artists, patriotic tributes and the kickoff to giving 4th, helping to make July 4th the largest day of giving in American history. It's more than just fireworks. Learn more about this landmark celebration at america250.org,
- [00:35]
Karen Kilgariff
hi, it's Karen and Georgia from My Favorite Murder.
- [00:37]
Georgia Hardstark
We cruised around LA in the Hyundai Ionic 5 and dove into the fascinating life of actress and inventor Hedy Lamarr.
- [00:43]
Karen Kilgariff
Want the full story? Take a listen.
- [00:45]
My Favorite Murder Narrator
She starts dating Howard Hughes and in fact she helps him design a faster plane. So she finds the fastest bird and the fastest fish and sketches out a drawing of what the two would look like as a plane. And that becomes the plane that we know today. And he calls her a genius.
- [01:02]
Georgia Hardstark
Check out our new episode spotlighting groundbreaking innovators like Hedy and Lamarr and Billie Jean King.
- [01:07]
Karen Kilgariff
Presented by the Hyundai Ioniq 5.
- [01:09]
Just Food for Dogs Advertiser
Goodbye. Think about it. When it comes to your own food, you can walk into a restaurant, see what's being made, and know exactly what you're getting. But with dog food, most brands keep that completely hidden. Just Food for Dogs does the opposite. They've built their entire brand around open kitchens. You can actually walk in and watch them prepare your dog's meals with real human grade ingredients like chicken, beef, carrots and peas cooked right there in front of you. No mystery, no behind the scenes, you're not allowed to see. That kind of transparency is rare in the pet food world, and it's a big reason they've become the number one vet recommended fresh dog food, earning trust from pet parents who want to feel confident in what they're feeding. When a brand is willing to show you exactly how your dog's food is made, it says a lot about the care, quality and standards behind every meal they produce. Nothing to hide, everything to love. Go to justfoodfordogs.com and get 50% off your first order.
- [02:11]
Jacob Goldstein
This is Jacob Goldstein from what's yous Problem? Business Software is expensive, and when you buy software from lots of different companies, it's not only expensive, it gets confusing. Slow to use, hard to integrate. Odoo solves that because all Odoo software is connected on a single affordable platform. Save money without missing out on the features you need. Odoo has no hidden costs and no limit on features or data. Odoo has over 60 apps available for any needs your business might have, all at no additional charge. Everything from websites to sales to inventory to accounting, all linked and talking to each other. Check out odoo@odoo.com that's O D O
- [02:53]
CarMax Announcer
O.com do you want to find a stress free way to buy your next car? Start at CarMax and shop your way. If you want to browse with confidence, get pre qualified online with no impact on your credit score and shop cars within your budget. From luxury cars to family rides, CarMax has options for almost every every price range including more than 25,000 cars priced under $25,000. So hey, want to get started? Just head to CarMax.com for details and get pre qualified today. Want to drive CarMax?
- [03:30]
Jack Armstrong
Broadcasting live from the Abraham Lincoln Radio studio at the George Washington Broadcast Center, Jack Armstrong and Joe Getty.
- [03:38]
Stephen Cates
Armstrong and Getty.
- [03:40]
Joe Getty
And now here's Armstrong and get it. Hard to believe that little company that started in a warehouse in El Segundo is now is now is not going public for the with the largest IPO
- [04:11]
Jack Armstrong
that ever that was not his best work. Elon Musk talking about his IPO, which debuted on Friday and surged past $2 trillion on its debut and people who got in and got out at the right time made some Money is up 19% from the IPO price later in the day. But you know, these things make such a splash when they happen in the news. These big IPOs SpaceX did anthropic's going to if ever happens chat GPT will be a big one, open AI and
- [04:45]
Joe Getty
whether or not we should get involved
- [04:46]
Jack Armstrong
in them is always a question to me.
- [04:48]
Joe Getty
Yeah, I think a lot of folks have only a vague idea of what happened and what it all means. So to answer some of those questions we turn to Stephen Cates, a finance expert with Bankrate.com Stephen, welcome. How are you?
- [05:01]
Stephen Cates
I'm doing good. Thanks for having me.
- [05:03]
Jack Armstrong
That is the question, isn't it? What happened and what does it mean? Tell us.
- [05:08]
Stephen Cates
Well, what happened was SpaceX went public. The IPO price was $135. So that's the price that anybody who applied to try to get access to those IPO shares, that's the price that they got. They would all be, you know, in the money here. It's currently trading for about $175. So we're roughly about 30% higher than that IPO price. So that's a good thing for anybody who did get that for anybody who didn't but wants to get in or is thinking about it. You know, that's a different calculus because now you're buying again, 30% higher than that IPO price, and you have to determine, do you think it's going higher over what timeline and how much do you expect to. To actually profit?
- [05:55]
Jack Armstrong
So can anybody invest now? You can jump in now if you want.
- [05:58]
Stephen Cates
Anybody can invest. You can go out there, you can buy as many shares as you can find out on the open market.
- [06:04]
Jack Armstrong
So I was looking at a chart on Friday because there was so much talk about this on Friday, and it looks like it's pretty all over the place on these really big IPOs, when they debut, whether a week later, they're up or down or flat, right?
- [06:17]
Stephen Cates
Yeah. I mean, there's a lot of volatility with IPOs, again, because these companies coming from private market, there's a lot less transparency, a lot less reporting on that. So, you know, people can get into a flurry of activity, you know, wanting to get involved and then some sell.
- [06:36]
Jack Armstrong
And I had fomo. I had serious fomo. FOMO is what I had.
- [06:43]
Stephen Cates
A lot of people get that. I think the important thing that people need to understand is that for, especially for large IPOs, and Space X is one of the largest there has ever been, and the valuation is extremely high relative to some of the fundamental values like revenue and most large IPOs. You could take your Facebooks, Alibaba's, Snap, Coinbase, Robinhood, you name it. There's typically a 50% drawdown in the first 12 months for some of these large IPOs. So that's real. That is the median and average drawdown takes a trough, you know, within the first 12 months. So that's a reality. If you're thinking about wanting to buy this, you need to recognize that you either want to have a long holding period or you may want to wait
- [07:34]
Joe Getty
for the right price because you're betting against history.
- [07:37]
Jack Armstrong
Joe's got a real question. I got a dumb guy question. Is this the sort. Are these big IPOs like this? The sort of stuff that us dumb guys get into and like real investors, smart investors, stay away from or not?
- [07:51]
Stephen Cates
I would not.
- [07:52]
Jack Armstrong
Seems like dumb guy bait. Seems like the sort of thing you lure me in on.
- [07:57]
Stephen Cates
Well, I wouldn't say. I'm not going to say that anybody's worried into these things. I think that the excitement, you know, is contagious. People like to be involved in these things, and it's fun to be involved in these things. Nothing wrong with that. I think It's a position sizing question. If you try to put 50% of your net worth into an IPO, well then you're truly gambling because you don't really know what's going on with that company. You simply, as a average investor, have no access to information on what's really going on in that company. You're taking the word of the company at face value and you can't always do that. Now, if you drop in a couple percentage points of your portfolio into this or any other ipo, go for it. That's your prerogative. That's not an unsafe position size. But you should never put money into something like this that you can't afford to lose.
- [08:48]
Joe Getty
So, Stephen, this would probably require thousands of words to answer completely, but I've been reading a lot about how space is truly Captain Kirk, the next frontier. Vast and also vast. Undeniably. Yeah. For manufacturing and technology and all sorts of amazing stuff having, you know, let's agree on that. To what extent is the skyrocketing price and the skyrocketing evaluation of SpaceX unmoored to mathematics? Is it just excitement? It's a big name. How do you read all of that?
- [09:26]
Stephen Cates
There's a lot of excitement. Now, I'm not an engineer, I'm not an aerospace engineer. I'm not any kind of an engineer. So the capability for a company like Space X or any other to do the kind of things that they've talked about having, you know, space data centers, doing microchip manufacturing in space, doing, you know, a trip to Mars, is that something that can be done in five years or 50 years? I have no idea, but nobody else does either. And you know, to compare sort of how dislocated the valuation is, I'll put it this way. SpaceX is valued like Amazon, but earns revenue like Macy's.
- [10:10]
Joe Getty
Wow.
- [10:11]
Jack Armstrong
Let's bottom line it. How much did you put in
- [10:15]
Stephen Cates
zero?
- [10:16]
Michael (Producer or Crew Member)
Okay.
- [10:16]
Jack Armstrong
The fact that you put in zero means something because you.
- [10:20]
Stephen Cates
So I will tell you that anybody who's going to be owning an index fund over the next year, Nasdaq, you know, specifically, very soon will include some SpaceX shares, the S&P 500. It's going to be about 12 months from now, but it will likely get included. But the rules, you know, for those things are going to allow SpaceX into the indexes earlier than in past IPOs.
- [10:46]
Jack Armstrong
So you, you enjoyed just pointing out, you know, like how in so. So unknown. I mean, space is vast, but there's just so much. What are they going to be doing when all that sort of stuff. That's like a car company compared to these AI companies though, isn't it? I mean like a solid. We make bricks compared to these AI because who has any idea what these AI companies are going to be worth or making or doing? And they're their IPOs be really nuts, aren't they?
- [11:16]
Stephen Cates
Well, it's similar. I mean Space X, their financials are far more transparent than anthropic or open air. We know more about Space X and, and the businesses that, that are involved in that. You know, their X, formerly Twitter, you know, that was very clear what the financials looked like at one point for that the, you know, xi, there's more known about that. You know, even, even the, you know, the segment of Starlink, there's a lot known about those things. And coming into this IPO people could parse those numbers more easily. With OpenAI and Anthropic. It's very opaque. We don't really know much about these. We know that they're growing fast. We know that they are deeply, deeply unprofitable. But a lot of the revenue numbers and the performance is muddy. It's annualized run rate numbers where they're saying that, you know, we're doing 20 or $30 billion in annualized run rate, which means that, you know, on a high growth rate that's accelerating, which is great, but it means that it kind of is fuzzy numbers because what they actually earned over the last 12 months is going to be significantly lower than these run rate numbers. If you, if you, what is run rate? Annualized run rate, meaning that, you know, if you took a single month and you multiply it by 12, you're saying that what we earned, let's say in December, if we multiply that by 12, look at, that was a 12 month representation. That's what we might earn over the next 12 months. And so you can, you can make things look really nice that way. You know, if you, if I annualized my Christmas stockings on an annualized run rate basis based on what I got in December, Well, I'm getting 12 stockings per year, but I don't. So, you know, OpenAI or Anthropic earned $1 billion in December, they could say we have an annualized run rate of $12 billion per year. Even if they earned maybe $2 billion in the past year because they grew it significantly in December, which is great growth rate that's high, is amazing, but it doesn't tell you what they actually earned over the past 12 months. It just tells you what they could earn based on a single data point.
- [13:38]
Joe Getty
Final question for Stephen Kates of Bankrate.com Stephen, are you using AI agents, say in your work these days?
- [13:46]
Stephen Cates
I haven't used agents, but I do use, I do use the LMS to do different analysis and you know, sometimes even just bounce arguments off to try to make sure that, you know, those things are solid. But a lot of what I do is not looking at, you know, publicly available data as much as as it is analyzing things as they come out. So I can't really get an agent to do any better than I can to go read the CPI report. I'm looking at it as it comes out. The agent can't really do it any faster.
- [14:21]
Joe Getty
So you're suggesting a strong don't buy when Anthropic has their ipo. I get it. Thank you. Saw through your code. Got it. Wink, nod. Stephen Cates of Bankrate.com Stephen, good to talk to you. Thank you.
- [14:33]
Stephen Cates
My pleasure.
- [14:35]
Jack Armstrong
So what I liked about that is that dealed with, dealed with, dealt with the FOMO that I think a lot of people have. He didn't invest a single dollar. These things get so much attention leading up to their announcement and then the day of and everything like that, apparently Feel free is like you're just being like a grown up, you know, medium risk investor. Feel free to just ignore it. Sounds like to me. What do you think?
- [15:08]
Joe Getty
Right. Yeah, especially because, and I was gonna, I want to confirm this because I'm absolutely not an expert. I'm just a guy who's curious about it. How IPOs work sometimes is they're not immediately to the public. The underwriters in the company agree on the final offer price for the shares and allocate them to select investors. And the next morning the stock begins trading on the New York Stock Exchange or the NASDAQ or whatever. And at that point, everyday retail investors can buy and sell the stock on the open market. But there's a layer before we even get a shot at it of the well connected. Right. I'd like to be in that layer, please.
- [15:52]
Jack Armstrong
But as I was looking at the charts on Friday, I forget who had that. The Wall Street Journal, I guess, showing that it's just as likely to stay flat or go down as go up. So I mean, there's, there's no rhyme or reason really to the. The last half dozen biggest IPOs that have ever been seen because we keep setting records. Yeah. Okay. Well, I'm, I'm happy to hear that.
- [16:16]
Jacob Goldstein
That.
- [16:17]
Jack Armstrong
And if, if you're listening and you didn't get involved either, you're not an idiot. You didn't, you didn't miss your great opportunity or whatever, right?
- [16:25]
Joe Getty
No, no. It's all about the long term anyway. Unless you're a really, really good day trader. And we're not.
- [16:31]
Jack Armstrong
But we should deal with this concept that Elon Musk becoming a trillionaire somehow screwed the rest of us. That's nuts.
- [16:41]
Joe Getty
Idiotic. Terrible. Terrible. And if you think that's true, stay tuned. We're going to straighten you out before you make a bigger fool of yourself.
- [16:49]
Jack Armstrong
Okay, that's next. Armstrong and Getty. Armstrong and Getty here. For hims, there are all kinds of great weight loss approaches that fit into your world.
- [17:03]
Michael (Producer or Crew Member)
Out there.
- [17:03]
Jack Armstrong
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- [17:07]
Joe Getty
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- [17:22]
Jack Armstrong
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Joe Getty
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- [17:54]
Jack Armstrong
including important safety information, WeGovy clinical study
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Joe Getty
information and restrictions, visit HIMSS.com this July
- [18:02]
America 250 Announcer
4th, come celebrate at America's Block Party hosted by America 250. America's Block Party is a can't miss 4th of July concert happening at the Los Angeles Memorial Coliseum. Experience music, performances from major artists, patriotic tributes and the kickoff to giving Forth, helping to make July 4th the largest day of giving in American history. It's more than just fireworks. Learn more about this landmark celebration@america250.org
- [18:31]
Karen Kilgariff
hi, it's Karen in Georgia from My Favorite Murder.
- [18:33]
Georgia Hardstark
We cruised around LA in the Hyundai Ioniq 5 and dove into the fascinating life of actress and inventor Hedy Lamarr.
- [18:39]
Karen Kilgariff
Want the full story? Take a listen.
- [18:41]
My Favorite Murder Narrator
She starts dating Howard Hughes and in fact, she helps him design a faster plane so she finds the fastest bird and the fastest Fish and sketches out a drawing of what the two would look like as a plane. And that becomes the plane that we know today. And he calls her a genius.
- [18:58]
Georgia Hardstark
Check out our new episode spotlighting groundbreaking innovators like Hedy and Lamarr and Billie Jean King.
- [19:03]
Karen Kilgariff
Presented by the Hyundai Ioniq 5.
- [19:05]
Just Food for Dogs Advertiser
Goodbye. Think about it. When it comes to your own food, you can walk into a restaurant, see what's being made and know exactly what you're getting. But with dog food, most brands keep that completely hidden. Just Food for Dogs does the opposite. They've built their entire brand around open kitchens. You can actually walk in and watch them prepare your dog's meals with real human grade ingredients like chicken, beef, carrots and peas cooked right there in front of you. No mystery, no behind the scenes, you're not allowed to see. That kind of transparency is rare in the pet food world. And it's a big reason they've become the number one vet recommended fresh dog food, earning trust from pet parents who want to feel confident in what they're feeding. When a brand is willing to show you exactly how your dog's food is made, it says a lot about the care, quality and standards behind every meal they produce. Nothing to hide, everything to love. Go to justfoodfordogs.com and get 50% off your first order.
- [20:07]
Bombas Advertiser
Thank you for calling the Bombas comfort line. Bombas make socks, slippers, tees and underwear made with the highest quality materials. Press 1 for comfort, 2 for style, 3 for donation. You chose style. Bombas is styles for whatever you enjoy. You can run in Bombas, lounge in Bombas, dress them up, dress them down, but always give back in Bombas because with every item purchased, another is donated. Bombas Comfort worth calling for. Go to bombas.com audio and use code audio for 20% off your first purchase. That's B O-M-B-A-.com and use code audio.
- [20:38]
Stephen Cates
Those who have been blessed the most,
- [20:39]
Joe Getty
who have disproportionately extracted by whatever skill
- [20:44]
Stephen Cates
more and more from the national wealth, they're gonna have to share more of that.
- [20:48]
Jack Armstrong
That is the four term governor of California. Two terms when he was the youngest governor ever, ever of California. Then two terms when he was the oldest governor of California who believes there's a set amount of wealth out there and rich people have disproportionately extracted from it.
- [21:10]
Joe Getty
That is not only as wrong as wrong can be, it is a poisonous, diseased understanding of economics misunderstanding.
- [21:18]
Jack Armstrong
Now, whether or not Jerry Brown actually believed that or was just pandering to people I don't know. I also don't know this, for instance, I mean, as watching this stuff unfold online and including around one tweet that I put out there and people a lot of you getting in arguments on our Twitter feed, which I appreciate you smart people who stood up for the free market and common sense. I really appreciate that. But here's an example. And I don't know this woman, but she has several hundred thousand followers and is involved in some organization. She tweeted out. The idea that Elon Musk worked harder than every other person alive who has ever lived is very stupid and immature. In a fairy tale. Wake up. He's robbing us.
- [21:59]
Joe Getty
Wow. Speaking of stupid and immature. Yeah. Nobody said he worked harder. He works very hard. But no, he created more value. You see, that's the way it works.
- [22:10]
Jack Armstrong
And so the common refrain from a lot of people was about the. They lump different things together that are completely different things. Tax breaks, like around, you know, electric cars that Democrats pushed. Right. You know, that helped his car company, along with government contracts that the government signed with SpaceX, among other competitive bidding.
- [22:39]
Joe Getty
Exactly. Yeah.
- [22:40]
Jack Armstrong
And the government decided to do it because SpaceX could do it cheaper than NASA was doing. You were going to pay more for it if NASA did for it. Did it anyway. Just all of these things being lumped together is we gave this money, we taxpayers gave this trillion dollars to Elon, which is just not right.
- [22:59]
Joe Getty
Yeah, yeah. And just her whole premise is. Is wrong. The wealthy don't hoard their money and they don't spend all of it. They couldn't more than he could ever spend a lifetime. Yes, that's correct. So real wealth accumulation comes from productive investment. You deploy capital into businesses and technologies, ventures of whatever sort you think are going to generate returns because they create value for others. If they don't give more value than they cost as perceived by the buyers, they fail. And that money just goes to the people who are working in the business or whatever. But it's mutually beneficial. You build companies that employ people, lower cost, spur innovation, expand opportunities and pull people out of poverty. You feed, clothe, educate and medicate entire families for generations. When you build a successful business, the idea that at some point you should stop creating value and building businesses that do all those things because I'm super jealous of how much money you have on paper. You're an idiot. You're an envy ridden. I'm sorry. Idiot. Strong. You're a fool. You don't know enough to have an intelligent opinion.
- [24:10]
Jack Armstrong
You're letting envy run your brain. Yes, and that's not good. I want to talk a little more about this after the commercials because I think it's very important. I'm worried about a revolution over over this sort of thinking. It's crazy. Armstrong and getty
- [24:29]
America 250 Announcer
this July 4th, come celebrate at America's Block Party hosted by America 250. America's Block Party is a can't miss 4th of July concert happening at the Los Angeles Memorial Coliseum. Experience music performances from major artists, patriotic tributes and the kickoff to Giving Forth, helping to make July 4th the largest day of giving in American history. It's more than just fireworks. Learn more about this landmark celebration@america250.org
- [24:59]
Karen Kilgariff
hi, it's Karen and Georgia from My Favorite Murder.
- [25:01]
Georgia Hardstark
We cruised around LA in the Hyundai Ioniq 5 and dove into the fascinating life of actress and inventor Hedy Lamarr.
- [25:07]
Karen Kilgariff
Want the full story? Take a listen.
- [25:09]
My Favorite Murder Narrator
She starts dating Howard Hughes and in fact, she helps him design a faster plane. So she finds the fastest bird and the fastest fish and sketches out a drawing of what the two would look like as a plane. And that becomes the plane that we know today. And he calls her a genius.
- [25:26]
Georgia Hardstark
Check out our new episode spotlighting groundbreaking innovators like Hedy Lamarr and Billie Jean King.
- [25:31]
Karen Kilgariff
Presented by the Hyundai Ioniq 5.
- [25:33]
Just Food for Dogs Advertiser
Goodbye. Most dog food brands don't really want you seeing how their food is made. Just food for dogs is the opposite. They actually invite you in. You can walk into any of their kitchens and see real human grade ingredients like chicken, beef, carrots and peas being prepared right in front of you. It's real food made in real kitchens. Nothing is hidden behind labels and that kind of transparency says a lot. Nothing to hide, everything to love. Go to justfoodfordogs.com and get 50% off your first order.
- [26:05]
CJ Toledano
This week on Point Game with me, CJ Toledano and Isiah Thomas. It gives us his reaction to what Jalen Brunson is doing in these NBA Finals. Take a listen. He doesn't get too high or too
- [26:15]
Stephen Cates
low whether he's having a good shooting night or not. You know, you can't leave any bullets left.
- [26:20]
CJ Toledano
You can't.
- [26:21]
Stephen Cates
You, you got to empty the clip and he's doing that and I think his teammates follow him when he's the aggressor.
- [26:28]
CJ Toledano
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- [27:38]
Jacob Goldstein
from what's yous Problem? When you buy business software from lots of vendors, the costs add up and it gets complicated and confusing. Odoo solves this. It's a single company that sells a suite of enterprise apps that handles everything from accounting to inventory to sales. Odoo is all connected on a single platform in a simple and affordable way. You can save money without missing out on the features you need. Check out odoo@o d o o dot com. That's o d o o dot com.
- [28:10]
Jack Armstrong
The people at the Babylon Bee are really funny. I can go to that anytime and scroll through their latest headlines and always laugh.
- [28:17]
Joe Getty
But this 100% of the time.
- [28:18]
Jack Armstrong
This one made me laugh today. Schrodinger. Got to get the name right. Schrodinger's neighbor says thought experiment. Very interesting, but he'd really just like a straight answer on where his cat is. Okay, great. So where's my cat?
- [28:38]
Joe Getty
Yeah, have you seen the cat?
- [28:42]
Jack Armstrong
Google it. So the Washington Post actually had a piece out. This is about the whole Elon Musk becoming a trillionaire thing. That this there should have been a this should be the litmus test. And they should have had everybody go on to a government website or something and put in their vote on Friday. Elon Musk becoming a trillionaire fills you with feelings of oh, wow, cool. Wish I could do that. That's awesome. How impressive. Versus that's disgusting. I'm angry. Unfair.
- [29:21]
Joe Getty
He's done something wrong. Exactly. Yeah.
- [29:24]
Jack Armstrong
In other words, positive feelings versus negative feelings. I can't imagine how I could have any negative feelings about the fact that Elon Musk became a trillionaire through inventing all kinds of really, really cool stuff.
- [29:36]
My Favorite Murder Narrator
Yeah.
- [29:37]
Jack Armstrong
How could that possibly make me unhappy?
- [29:39]
Joe Getty
Anyway, developing them, making them available to the masses. Yeah,
- [29:45]
Jack Armstrong
that's the thing. So when Bezos was the world's richest man for a while, and people would complain about that, Tim Sandifer was always big on because he gives people stuff they want at a price they like, that's how he became the world's richest man. What's wrong with that? Similar, but different with Elon Musk. Anyway, the Washington Post put this out, which is just so incredibly misleading. It's Jeff Bezos's newspaper. He understands this. You would think he wouldn't want it, but anyway, Elon Musk companies have received at least $38 billion in U.S. government contracts, subsidies, loans and tax credits, according to a comprehensive financial investigation. They had to do an investigation. The Washington Post. I like the way they lump together all those things that are completely different. I mean, tax credits, loans, subsidies, and contract government contracts are all completely different things.
- [30:42]
Joe Getty
And all of them passed by the legislatures in question.
- [30:46]
Jack Armstrong
Right. And so many of them are things that you on the left love. But one of my litmus tests, use that. That phrase again, would be for those of you who are complaining on our Twitter feed, because I basically tweeted out, you're a moron. If you're mad about Elon becoming a trillionaire and you think it somehow takes money from you.
- [31:07]
Michael (Crew Member, Toilet Paper Segment)
Oh, yeah.
- [31:08]
Jack Armstrong
What about this much money or that much money? He got this much money. Isn't that taxpayer money? Well, yeah, you're right about that money. All government money is taxpayer money. But it's an investment. Or in the case of the Tesla's cars, this is the stuff that your crowd wanted anyway to get the electric car industry going. But on the. On the investing in various things. Do you ever. Here's my litmus test. Did you ever get upset when the government invested billions of dollars in something that amounted to crap, didn't amount to anything, didn't do anybody any good, didn't create a single job, didn't help climate change, didn't help homeless people, didn't build a bullet train, didn't whatever. Do you ever get upset about those or only when somebody ends up rich.
- [31:58]
Joe Getty
Right, right. Well, the first one doesn't. Right. The first one doesn't satisfy their envy, though. It's only the second One that really gets them feeling that envy. Because that's what this is all about.
- [32:07]
Jack Armstrong
Right? And that's what I wanted to get to that. I was trying to find it the some philosopher from way back in the day, and I'd never heard anybody put it this way before about how Marxism is. People get it wrong. They, they think it's because you want to help the downtrodden. Nope, it's because you want to tear down the successful. That's the motivation. You might, you know, intellectually claim to yourself that it's to help the downtrodden, but the real emotional motivation is that guy's got a bunch and I want to tear him down. Which is sick. I don't know how you end up that way, but that's what, that's what's bothering people. Otherwise you'd been bothered by Stacy Abrams getting $2 billion for her some other something or other project that never amounted to anything, never created a job, never did anybody any good. But you didn't. That didn't bother you, Elon, Doing something that has ended up being cheaper products for the government, us, the taxpayer, or creating hundreds of thousands of jobs and all those people pay taxes and blah blah, blah. That makes you mad because it made Elon richer. It's just an envy thing.
- [33:18]
Joe Getty
Yeah.
- [33:18]
Jack Armstrong
Clearly there's no logic behind it.
- [33:20]
Joe Getty
There are entire neighborhoods, even cities where the vast majority of people think that way. Came across this. I love this reply to somebody who calls themselves proud socialist and says, I would much rather live in a society where everyone has health care, housing and food than a society where one trillionaire now owns more wealth than half the country. And this person responded, I'd rather live in a society where everyone has access to health care, housing and food too. The real question is what system is most effective at producing those outcomes. Blaming a trillionaire for poverty misunderstands the problem. A trillionaire doesn't create government deficits, waste public funds, mismanage housing policy, inflate the currency, or burden businesses with regulations that suppress growth. Governments do. The entrepreneur builds a trillion dollar enterprises demonstrating how to think, innovate, organize, lead, execute alloc capital and create value at an extraordinary scale. In most cases, their wealth is a byproduct of creating products and services that millions or billions of people voluntarily choose to use. And furthermore, history shows that widespread prosperity was not created through wealth redistribution, never has been. Since the rise of market capitalism around 1800, global living standards have improved dramatically. And he goes through the extreme poverty falling, life expectancy doubling, literacy soared, infant Mortalities collapsed. Access to food, medicine, transportation, communication, technology have skyrocketed. The existence of a wealthy individual is not why someone else lacks opportunity. Wealth is not a fixed pie. The question is not how to divide wealth more evenly, but how to create more of it. Constantly pointing at successful people as the source of society's problems encourages a mindset of resentment rather than achievement. Bernie, A healthy response is to study what what creates value? Study what builds organizations and what solves problems and what improves lives. Envy has never built a business, created a job, cured a disease, or lifted a family out of poverty. Innovation, productivity, discipline and leadership have. That is brilliant, that is good.
- [35:27]
Jack Armstrong
And if you weren't listening earlier, NASA was going to do some of this stuff, taking stuff up into space that we want to do as a country that we've decided to do. Elon came along with. SpaceX is doing it for a fraction of the cost. That's why we have the government contract. So it's cheaper to have Elon do it than to have NASA do it. But Elon makes a profit and gets rich. Why does that bother you? It's less tax money to get the rocket up there and deliver that thing into space with Elon than with NASA. But would you rather pay more to NASA as long as Elon didn't get rich? I think some of you would, which is weird. It's just even.
- [36:06]
Joe Getty
It's even worse than that because there were incentives built in where if SpaceX could create the technology such that the cost would get below a certain point, they got to keep that, that the Delta, as they say. But what that did was incentivize innovation. So now we, the United States, mankind, I hope we use it mostly. But now we have access to technologies that were never dreamt of before and abilities to do things that were never dreamt of in a way that a fat socialist government program, I shouldn't even have to finish that sentence. Could never ever hope to do.
- [36:42]
Jack Armstrong
Elon's companies, Tesla Space X x, Neuralink injected $338 billion directly into the US economy via 111 billion in wages and salaries, supporting 200,000 plus employees at competitive pay, $46 billion in taxes, corporate payroll, etc. $182 billion in supplier spending. Eg Tesla alone spent heavily on US batteries, chip steel. It's one of the points you're always making is that these companies then buy stuff and blah blah blah. During his lifetime, Bernie Sanders has contributed approximately $0.00 to the national economy.
- [37:28]
Joe Getty
True.
- [37:28]
Jack Armstrong
How is that better? This is Elon, responding to Elizabeth Warren, who called him a freeloader in 2021.
- [37:35]
Joe Getty
Oh, my God.
- [37:36]
Jack Armstrong
Just unbelievable.
- [37:37]
Joe Getty
The irony is too much, Elon said.
- [37:40]
Jack Armstrong
At that point, I'm actually paying the most tax that any individual in history has ever paid this year, ever. And she doesn't pay taxes basically at all. Her salary is paid for by the taxpayer, like me. If you could. I'm the taxpayer paying her. If you could die by irony, she would be dead.
- [37:59]
Joe Getty
Yeah, yeah. We have changed as a society. The cultural norm used to be much more what we're talking about. The very successful, the moderately successful were admired. And kids were told, hey, in America, you could grow up to be whomever. Pick your favorite titan of industry or the guy who owns three McDonald's or whatever. And that was. That was to be sought after. It was admired, and now it's shame. And. But you need that. If you are in the business of the politics of envy, which is socialism, you cannot permit the flower of that admiration to grow. You've got to stamp it out. Otherwise your philosophy doesn't work.
- [38:45]
Jack Armstrong
That's a good point. That's a good point. They saw Friday as a dangerous day. That a lot of people are going to look at that and say, cool, right? No, they gotta. Gotta get on top of that right away and. And try to convince people that it somehow took money from you.
- [39:02]
Stephen Cates
Yeah.
- [39:03]
Joe Getty
And I said it earlier, envy is like a shot of fentanyl. Once it hits you, your brain is off. You're just hanging there from your waist, gurgling and drooling.
- [39:15]
Jack Armstrong
But who. Whose chances do you like better in terms of making the argument? The Takes a few minutes to explain government contracts versus subsidies versus tax breaks versus all that sort of stuff, or the he's a trillionaire and you're poor. Let's get him.
- [39:33]
Joe Getty
I refuse to answer that question on the advice of my counsel.
- [39:38]
Stephen Cates
I know.
- [39:39]
Joe Getty
That's why it's so insidious.
- [39:42]
Jack Armstrong
Slightly different topic, but Elon's involved. Some lady flipped me off with tremendous amount of anger the other day because I was in my cyber truck. She was jogging along the road and she saw me and she was just. She was screaming something. I wish I'd had the window down, red face screaming at me. And I thought of all those people that flipped me off because I'm driving a truck that Elon Musk was involved in creating. It's so nuts, I can't even hardly wrap my head around it. If they could. If they. If. If they could watch somebody hurt me, they would enjoy it. I don't know if that they would hurt me, but they'd be perfectly okay with somebody physically hurting me.
- [40:22]
Joe Getty
Yeah. Some guy, some big guy beating you down. They would cheer it on. Yeah.
- [40:26]
Bombas Advertiser
Yeah.
- [40:26]
Michael (Producer or Crew Member)
And that.
- [40:27]
Jack Armstrong
Isn't that troubling.
- [40:28]
Joe Getty
Yeah, it's sick. Yeah. They have a mental problem. These are odd times. I don't know if you've noticed.
- [40:36]
Jack Armstrong
Would say they are. We will finish strong.
- [40:40]
Joe Getty
Next Armstrong and Getty.
- [40:49]
America 250 Announcer
This July 4th, come celebrate at America's Block Party, hosted by America 250. America's Block Party is a can't miss 4th of July concert happening at the Los Angeles Memorial Coliseum. Experience music, performances from major artists, patriotic tributes and the kickoff to giving 4th, helping to make July 4th the largest day of giving in American history. It's more than just fireworks. Learn more about this landmark celebration@america250.org
- [41:18]
Karen Kilgariff
hi, it's Karen in Georgia from My Favorite Murder.
- [41:20]
Georgia Hardstark
We cruised around LA in the Hyundai Ionic 5 and dove into the fascinating life of actress and inventor Hedy Lamarr.
- [41:27]
Karen Kilgariff
Want the full story? Take a listen.
- [41:29]
My Favorite Murder Narrator
She starts dating Howard Hughes and in fact, she helps him design a faster plane. So she finds the fastest bird and the fastest fish and sketches out a drawing of what the two would look like as a plane. And that becomes the plane that we know today. And he calls her a genius.
- [41:46]
Georgia Hardstark
Check out our new episode spotlighting groundbreaking innovators like Hedy and Lamarr and Billie
- [41:50]
Karen Kilgariff
Jean King, presented by the Hyundai Ioniq 5.
- [41:53]
Just Food for Dogs Advertiser
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- [42:25]
Jacob Goldstein
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- [43:10]
Cindy Crawford
Hi, I'm Cindy Crawford and I'm the founder of Meaningful Beauty. Well, I don't know about you, but, like, I never liked being told, oh, wow, you look so good for your age. Like, why even bother saying that? Why don't you just say you look great at any age, every age. That's what Meaningful Beauty is all about. We create products that make you feel confident in your skin at the age you are now. Meaningful Beauty. Beautiful skin at every age. Learn more@meaningfulbeauty.com.
- [43:44]
Michael (Crew Member, Toilet Paper Segment)
well, I'm back at Kroger, and Bounty has made some changes. 8 equals 28. Also equals 24. You know what else equals 24?
- [43:52]
Michael (Producer or Crew Member)
24?
- [43:52]
Michael (Crew Member, Toilet Paper Segment)
6. You know what? 6 also equals 12. What equals 12? 30 equals 12. So that means 30 equals 6, which equals 8. You know what also equals 8? 4 unrelated 2 equals 6.
- [44:07]
Jack Armstrong
What the hell was that, Michael?
- [44:10]
Joe Getty
That meant nothing to anyone.
- [44:12]
Jack Armstrong
What was that?
- [44:13]
Michael (Crew Member, Toilet Paper Segment)
I didn't pull it, but I don't
- [44:15]
Jack Armstrong
know what it was exactly. Titled this.
- [44:18]
Joe Getty
Toilet Paper math. Odd Weights and Measures man. Baffled by Bounty's paper towel Math. That. That was entirely visual.
- [44:30]
Jack Armstrong
I'm thinking there was something clever there, but I.
- [44:34]
Joe Getty
There will be a meeting about this after the show. That was a dark moment in show history.
- [44:38]
Jack Armstrong
Executive producer.
- [44:39]
Joe Getty
Perhaps the darkest.
- [44:41]
Jack Armstrong
Yes, Executive producer Mike Hansen joins us.
- [44:43]
Joe Getty
Yes, I think he's here to defend himself.
- [44:45]
Jack Armstrong
Yeah, Hanson. What was that? We have to press, like, 18 buttons again.
- [44:50]
Michael (Crew Member, Toilet Paper Segment)
He's here.
- [44:50]
Joe Getty
He's here.
- [44:51]
OrderlyMeds Advertiser
Okay.
- [44:51]
Joe Getty
Yeah. Indecipherable clip that we were just subjected to.
- [44:56]
Michael (Producer or Crew Member)
It makes perfect sense. Clearly, you don't buy the paper towels or toilet paper in your family. When you look at these containers, it will say eight rolls equals 30 rolls. And every package has a different comparison. And he's pointing out that none of them make any sense whatsoever.
- [45:15]
Joe Getty
None of them visual, though.
- [45:17]
Jack Armstrong
Well, okay, you're complaining about the clip, but I'm interested in the toilet paper thing.
- [45:21]
Joe Getty
No, I want to sign blame, not solve the problem. All right, so toilet paper, paper towel, whatever. Yeah, back to the point.
- [45:30]
Jack Armstrong
So. So what are they trying to claim? That you get like, 12 rolls worth in six or. Yeah, say what you just said, but
- [45:38]
Joe Getty
with enough words that we can understand you.
- [45:45]
Jack Armstrong
I do buy the toilet paper and paper towels in my house because I'm the only adult.
- [45:48]
Michael (Producer or Crew Member)
Well, then you should know what we're talking about here, Jack. And I'm. I'm offended both by both of you and your attitudes towards this. This clip, which I admit didn't make any sense by itself. It needed an explanation.
- [45:58]
Jack Armstrong
Okay, I will pay attention to that when I get home today. I will look at that. Because I just buy the biggest thing so I know I don't have to buy it again later.
- [46:07]
Joe Getty
I'm on your team now. I want to understand. So you said the six means the same as 12.
- [46:12]
Stephen Cates
What?
- [46:12]
Jack Armstrong
What?
- [46:13]
Joe Getty
You said words. What are you talking about?
- [46:15]
Michael (Producer or Crew Member)
That's. That's the point. It doesn't make any sense. They. They sell you a gigantic, like a 30 roll container, takes up your whole cart, and then they say it's double roll so that you're getting more per roll. And they'll say a roll of this double equals 13 rolls of the regular stuff.
- [46:34]
CarMax Announcer
But then.
- [46:35]
Michael (Producer or Crew Member)
But then they take the same double roll and put it in a smaller thing and the proportions change in a way that doesn't make any sense. And you're like, well, how can I compare these two things right when you're trying to trick me with this clearly doesn't make sense. The math doesn't work here, people.
- [46:52]
Jack Armstrong
They clearly are trying to do a weird apples, oranges comparison to try to make the numbers work.
- [46:58]
Joe Getty
Yes, yes, I almost want to. Three minutes later. I understand. Yeah, go ahead, play it again.
- [47:05]
Michael (Crew Member, Toilet Paper Segment)
Well, I'm back at Kroger and Bounty has made some changes. 8 equals 28 also equals 24. You know what else equals 24? 6. You know what? 6 also equals 12. What equals 12? 30 equals 12. So that means 30 equals 6, which equals 8. You know it also equals 8. Unrelated, 2 equals 6.
- [47:27]
Jack Armstrong
I can see that.
- [47:29]
Michael (Producer or Crew Member)
Yeah.
- [47:29]
Jack Armstrong
If you had lots of packages next to each other all claiming that, that is pretty fun.
- [47:34]
Michael (Producer or Crew Member)
We should take Joe toilet paper shopping and then see if he is confounded by this.
- [47:38]
Jack Armstrong
No, no, try.
- [47:40]
Joe Getty
Don't try to sound like it's about me. That clip was nonsense.
- [47:49]
Jack Armstrong
Final thoughts with Armstrong and gy. You'll get the facts. They're sharp and steady. Tune in tomorrow. Don't you forget it for more from Armstrong and get.
- [48:07]
Joe Getty
I love that.
- [48:07]
Jack Armstrong
Here's your host for final thoughts, Joe Gidd.
- [48:11]
Joe Getty
Oh, so tuneful. Let's get a final thought from everybody on the crew to wrap things up for the day. There he is, pressing the buttons. Michelangelo, Michael, final thought, Jack. Don't miss out on SpaceX.
- [48:19]
Michael (Crew Member, Toilet Paper Segment)
Just so you know, I had a
- [48:20]
Joe Getty
choice back in the day. I had Amazon and Apple versus Sears and BlackBerry. And, well, I've been here for 26 years now. Yeah, enough said Jack. Final thought for us.
- [48:32]
Jack Armstrong
Yeah, that financial guy we had on earlier saying there were way overvalued. Yeah, that's what people told me about Tesla about 20 years ago. Graham Platner, who might end up being a US Senator, tweeted out on the weekend, Elon Musk just became the world's first trillionaire. Let's make sure he's also the last. So
- [48:53]
Joe Getty
my final thought is here's a startup that's looking to in orbit manufacturing asteroid mining, extracting lunar ice and helium 3 from the moon. Where this all leads just blows your mind. The exploitation of weightlessness and the cold of space and then oh yeah, they're advanced in space.
- [49:15]
Jack Armstrong
There are smart people that think SpaceX could be 30, 50 times its current value and not that long if it goes the direction they want to. Yikes. Armstrong and Getty wrapping up another grueling four hour workday.
- [49:29]
Joe Getty
So many people. Thanks a little time. Go to armstrongandgetty.com drop us note mailbaghetty.com if you disagree or agree with anything. Feel free, pick up some Angie Swag speaking of capitalism and hit the hot links.
- [49:42]
Jack Armstrong
We will see you tomorrow and maybe we'll have some idea what the Iran deal is. I don't know. See you then. God bless America. What's your name? Tell us your name. Armstrong and Getty. I think it takes two to tango Match made in heaven.
- [49:57]
Joe Getty
I think you're star spangled Australia.
- [49:59]
OrderlyMeds Advertiser
So good.
- [50:01]
America 250 Announcer
Repeat the line.
- [50:02]
Jack Armstrong
So good.
- [50:04]
Joe Getty
Let's go out with a bang.
- [50:05]
Jack Armstrong
Hey, shout out to Trump for having the balls to put some like this on. And lastly, Michelle Obama is a man. Am I right America? On that high note.
- [50:17]
Joe Getty
Bye bye Armstrong and getty this July
- [50:21]
America 250 Announcer
4th come celebrate at America's Block Party hosted by America 250. America's Block Party is a can't miss 4th of July concert happening at the Los Angeles Memorial Coliseum. Experience music, performances from major artists, patriotic tributes and the kickoff to giving 4th, helping to make July 4th the largest day of giving in American history. It's more than just fireworks. Learn more about this landmark celebration@america250.org
- [50:50]
Karen Kilgariff
hi, it's Karen in Georgia from My Favorite Murder.
- [50:52]
Georgia Hardstark
We cruised around LA in the Hyundai Ioniq 5 and dove into the fascinating life of actress and inventor Hedy Lamar.
- [50:58]
Karen Kilgariff
Want the full story? Take a listen.
- [51:00]
My Favorite Murder Narrator
She starts dating Howard Hughes and in fact she helps him design a faster plane. So she finds the fastest bird and the fastest fish and sketches out a drawing of what the two would look like as a plane. And that becomes the plane that we know today. And he calls her a genius.
- [51:18]
Georgia Hardstark
Check out our new episode, spotlighting groundbreaking innovators like Hedy and Lamarr and Billie Jean King.
- [51:22]
Karen Kilgariff
Presented by the Hyundai Ioniq 5.
- [51:25]
Just Food for Dogs Advertiser
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- [52:26]
Jacob Goldstein
This is Jacob Goldstein from what's yous Problem? Business software is expensive. And when you buy software from lots of different companies, it's not only expensive, it gets confusing. Slow to use, hard to integrate. Odoo solves that because all Odoo software is connected on a single, affordable platform. Save money without missing out on the features you need. Odoo has no hidden costs and no limit on features or data. Odoo has over 60 apps available for any needs your business might have, all at no additional charge. Everything from websites to sales to inventory to accounting. All linked and talking to each other. Check out Odoo at o d o o.com that's o d o o.com when
- [53:11]
OrderlyMeds Advertiser
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