Part Of The Problem – "The Unbelievable Minnesota Fraud"

Host: Dave Smith
Co-host: Robbie "the Fire" Bernstein
Date: December 30, 2025

Episode Overview

In this episode, Dave Smith and Robbie Bernstein dive into a viral expose of an alleged massive daycare-related government fraud in Minnesota, primarily uncovered by an independent YouTuber, Nick Shirley. They discuss the systemic issues of government-funded social programs, the ineptitude of media and law enforcement in exposing fraud, and the broader implications for immigration, public trust, and the relationship between new and legacy media.

Key Discussion Points and Insights

1. Introduction to the Minnesota Daycare Fraud (02:11–06:12)

• Dave provides a rundown of the emerging fraud scandal in Minnesota, observed and documented by Nick Shirley.
  • Shirley, described as a "guerrilla journalist," amassed 115 million views with a video exposing seemingly bogus daycares that received hundreds of thousands to millions in government grants—without actually serving children.
  • The scheme was tied to policies promoted by Tim Walls (Minnesota Governor, then VP candidate alongside Kamala Harris), who previously championed government daycare funding.

Quote – Dave Smith [03:57]:

"He’s not only exposing what is apparently a huge government fraud, but also just implicitly is like a huge indictment of the corporate media in general, law enforcement, both federally and at the state level and locally."

2. Details and Oddities in the Scheme (06:12–07:12)

• Many daycares had opaque windows, unclear operations, nonexistent children, and in one notorious example, were named with a misspelled "Learning" (e.g., "Leaning" or "Leering" Center).
• Even closed facilities kept receiving taxpayer funds.

Quote – Dave Smith [06:17]:

"The idea that you could put leaning or leering... that already is pretty damning."

3. Failures of Journalism & Systemic Outrage (07:12–09:27)

• Robbie recounts his prior experience exposing media fabrication, highlighting mainstream media's unwillingness to pursue basic journalism—even when the evidence is public and obvious.
  • The discussion pivots to how new media (YouTubers/citizen journalists) are providing accountability that "60 Minutes," Fox News, or local media refuse to.
• Both co-hosts stress the dangerous "bubble" of fake or neglected stories in major outlets.

Quote – Robbie Bernstein [08:04]:

"There’s kind of two takeaways here. One is just how much of a bubble of fake information we’re living under because the media just doesn’t cover some topics and over treats others. And also just like the fact that we live in a world without real journalism."

4. Government Incentives and Systemic Fraud (12:57–14:20)

• The hosts examine the "socialist pitch"—using other people's money for noble-sounding social services—and argue government is inherently ineffective at oversight.
• Points made about other failed social spending, like California's homelessness crisis.

Quote – Robbie Bernstein [12:57]:

"As long as you allow us to distribute the money, we're going to make sure that important services are taken care of for you. And how good are they at actually making sure that these services are done?"

5. The Market vs. Government – Why Bureaucracy Breeds Corruption (14:20–19:20)

• Dave gives a libertarian economics primer, referencing Adam Smith’s "invisible hand" and voluntary exchanges as foundational to why markets succeed and public sectors fail.
• In government, service recipients can't refuse to pay (taxes are compulsory), so fraud persists without corrective feedback.

Quote – Dave Smith [16:44]:

"It’s not that like, oh, there happen to be these areas of waste, fraud and abuse. The whole thing is fraudulent by its very nature."

6. Political Context: Waltz's Childcare Pitch (19:20–21:13/32:40–35:05)

• Clips and commentary on Tim Waltz boasting about Minnesota’s daycare/social service innovations—and the utter lack of execution or oversight.
• They play news segments praising the expansion of grant-funded slots for childcare, mocking how these PR stunts were staged around the only legit facility the staff could find.

Quote – Dave Smith [20:03]:

"The point is, you’re giving us this fake pitch of that you’re the nice guy and that you’re gonna provide social services, but you’re actually too inept to do so."

7. Wider Socio-Economic and Cultural Implications (21:13–27:16)

• Dave critiques the cultural norm of subsidized daycare, arguing it incentivizes less parental involvement and more government dependency.
• He connects government and monetary policy (inflation, the end of single-earner households) to escalating social program demand.

8. Satirical Banter on Somali Daycares (27:16–28:00)

• Robbie jokes about recommending Somali daycares for their "top resources" thanks to government funding, poking fun at the absurdity.

Quote – Robbie Bernstein [27:16]:

"…they try and find a local Somalian daycare because those have the best government funding."

9. Fraud Numbers and the Real Toll on Taxpayers (28:00–32:00)

• Discussion about the scale of alleged fraud, with rumors ranging from $100M uncovered to speculative figures as high as $8B.
• Dave decries the focus on tax hikes for "billionaires" when, in practice, regular people are extorted for substantial sums lost to grift.

10. Immigration, Identity, and Political Correctness (39:04–55:41)

• They cover alleged connections to murder and political intrigue, as people opposing the grift face unexplained violence.
• Dave and Robbie discuss how immigration policies taken to extremes—combined with social policing of "racism" accusations—prohibit legitimate critique of imported fraud.
• Discussion of local voting blocs, government officials’ reluctance to pursue the fraud, and the risk of fostering underground, reactionary politics due to stifled debate.

Quote – Dave Smith [43:26]:

"…it sure does seem like more of an outrage for someone who just got here from Somalia to do that."

11. Media Landscape and the New Citizen Journalism (62:08–64:19)

• Reflections on the sheer influence of new media and how one YouTuber forced politicians and the FBI to acknowledge — if still not act on — corruption.
• Mainstream legacy media's irrelevance highlighted by their refusal to cover a story that commands over 100 million views online.
• Final encouragement to support citizen activism and independent journalism.

Quote – Dave Smith [63:04]:

"This guy is getting the vice presidential candidate and the FBI director, and all these guys have to comment on a story that some guy on the Internet just made… that is so goddamn different than any media landscape environment I’ve ever seen before."

Notable Quotes & Memorable Moments (with Timestamps)

• "It’s just so blatantly obvious and just so showcases…wait, the governor was just handing out checks and no one thought to be like, hey, there’s nothing here…It’s quite a, quite a shocking thing."
  — Robbie Bernstein [08:04]

• "The whole thing is fraudulent by its very nature."
  — Dave Smith [16:44]

• "…you're giving us this fake pitch of that you're the nice guy and that you're gonna provide social services, but you're actually too inept to do so."
  — Dave Smith [20:03]

• "…if you subsidize daycare, you’re going to get more people to send their kids to daycare. And why exactly is that good? Like, why exactly do I want government raising our babies?"
  — Dave Smith [23:17]

• "At this point is like, okay, and what’s the action that we’re taking here, Cash? Because, like, so far, don’t get me wrong, I’m really, really impressed that the vice president and the FBI director tweeted about this. That’s nice. That is nice. A tweet helps. It helps a lot."
  — Dave Smith [41:00]

• "…if you’re that paralyzed by this notion of anti-racism that you can’t even like call out this, this direct thing right in front of you that’s so obviously criminal and, and, and immoral, then like, then, then you just can’t have immigration from that part of the world, man."
  — Dave Smith [48:32]

• "…support citizen activism, which is why you should go check out ‘Porching’. Episode two will be out this evening."
  — Robbie Bernstein [64:04]

Important Timestamps / Sections

• Story introduction: [02:11+]
• Policy outline and Tim Waltz campaign context: [04:45], [19:20], [32:40]
• Breakdown of the fraud’s mechanisms: [06:12–07:12], [28:00–29:28]
• Media failures: [07:12–09:27]
• Critique of government social service provision: [12:57–14:20]
• Market vs. government incentives: [14:20–19:20]
• Cross-section with immigration policy and identity: [39:04–41:00], [42:58–48:32]
• Citizen journalism & new media dominance: [62:08–64:19]

Conclusion

Dave and Robbie use the Minnesota daycare fraud exposé as a case study in government failure, mainstream media abdication, and misplaced priorities in social and immigration policy. They champion the rise of independent journalism, argue for vigilant skepticism of government-run programs, and underscore the risks of suppressing debate under the guise of anti-racism. The episode is pointed, satirical, and packed with libertarian critique of contemporary policy and journalistic integrity.