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<v Speaker 1>You're listening to KFI AM six forty on demand.

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<v Speaker 2>I Am six forty the talkback question today. If you're

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<v Speaker 2>on the iHeart video app, just hit the microphone icon

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<v Speaker 2>that allows you to leave us a message later on

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<v Speaker 2>the show here at the six o'clock hour. There's been

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<v Speaker 2>a shift worldwide. There's a global shift in the views

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<v Speaker 2>on spankings, but in the United States the majority of

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<v Speaker 2>adults still support spanking. So the question is, were you

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<v Speaker 2>spanked as a kid, and then do you did you

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<v Speaker 2>spank your kids or do you spank your kids. I'm

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<v Speaker 2>just curious about what you have to say, and a

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<v Speaker 2>few of you had thoughts.

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<v Speaker 3>Oh boy, oh boy, the threat of getting spanking spanked

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<v Speaker 3>was always there. Yeah, and the way till your father

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<v Speaker 3>gets home was the worst of the worst. But my

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<v Speaker 3>mom did spank me every once in a while. I

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<v Speaker 3>always had it coming, and even as a little kid,

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<v Speaker 3>I felt so bad because my mother would just be

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<v Speaker 3>crying if I don't know why you did this to me.

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<v Speaker 4>Ami feels so horrible.

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<v Speaker 3>Oh man, it didn't even I didn't think about the

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<v Speaker 3>spanking part of it because she felt so bad.

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<v Speaker 4>Yeah, mine did the same thing.

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<v Speaker 5>My mom crying while she's spanking you.

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<v Speaker 4>Yeah.

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<v Speaker 2>I actually respect his mom for that. I do because

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<v Speaker 2>I think far too many people start spanking because they've

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<v Speaker 2>they don't know what else to do, and they just go,

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<v Speaker 2>I gotta get control, so they just start spanking, right,

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<v Speaker 2>And it sounds like his mother was thoughtful about it,

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<v Speaker 2>and I'm sure it's she was probably spanked as a child.

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<v Speaker 2>You know, we learned from our parents. Doctor Wendy will

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<v Speaker 2>tell you about that later on in her show. But

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<v Speaker 2>I think his mother was probably like, I don't want

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<v Speaker 2>to have to spank you. But this is what I

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<v Speaker 2>know is discipline goes so well.

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<v Speaker 5>I get that I am Dutch in Indonesian and for

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<v Speaker 5>all of the Dutch and Dutch indos in southern California,

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<v Speaker 5>I had the wooden spoon. It wasn't a hand, yeah,

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<v Speaker 5>you know, it wasn't a sandal. It was the wooden spoon.

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<v Speaker 2>Let's I want to get into your Dutch Indonesian thing

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<v Speaker 2>in a little bit, Andrew, because I feel like you

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<v Speaker 2>probably were some sort of descendant of an explorer. But

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<v Speaker 2>aside from that, I had the same thing, except my

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<v Speaker 2>mother started breaking the spoons off on my keyster.

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<v Speaker 4>Oh wow, hit.

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<v Speaker 2>Yeah, she broke too many spoons. And so then my

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<v Speaker 2>folks were having some remodeling done and she had the

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<v Speaker 2>carpenter cut her out a paddle that fit her hand,

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<v Speaker 2>and she kept that on top of the refrigerator.

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<v Speaker 4>She didn't do the whole drill the holes through it.

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<v Speaker 5>Wait wait a second, hold on, Yeah, your mom had

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<v Speaker 5>a custom paddle made.

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<v Speaker 2>Yes, wow, yeah, and that was she named it. That

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<v Speaker 2>was Peter paddle. And you're not making this up. I'm

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<v Speaker 2>not making this up. No, your mom leveled up. Wow,

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<v Speaker 2>yeah she did. But she also, like this guy's mom,

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<v Speaker 2>she says that she could never hit us more than

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<v Speaker 2>three times because she felt so horrible about it. So

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<v Speaker 2>I think my mom was in the same boat where

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<v Speaker 2>it was. She kind of felt like, I have to

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<v Speaker 2>do this because this is this is the means of

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<v Speaker 2>getting the behavior out of you that I that I desire.

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<v Speaker 5>And so did you ever have the ghost stand in

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<v Speaker 5>the corner or sit at the table like or write

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<v Speaker 5>sentences out?

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<v Speaker 4>None of that.

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<v Speaker 2>I did that in school, But you know, I do remember.

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<v Speaker 2>I don't think she even remembers this. There was one

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<v Speaker 2>time that I was I must have been I don't know,

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<v Speaker 2>five years old or something. And I remember that she

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<v Speaker 2>told me I had to sit in the chair for

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<v Speaker 2>fifteen minutes, and I remember that being the worst fifteen minutes.

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<v Speaker 2>And it was a comfy chair. It wasn't like I

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<v Speaker 2>was sitting in a hard wooden kitchen chair. But just

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<v Speaker 2>the fact that I couldn't move, I couldn't I wasn't

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<v Speaker 2>allowed to speak, and I couldn't move for fifteen minutes,

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<v Speaker 2>that was worse than any spanking. Looking back on it now,

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<v Speaker 2>I mean, I'm sure I would have chosen the chair

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<v Speaker 2>nine times out of ten, or probably ten times out

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<v Speaker 2>of ten back then because the fear of the spanking.

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<v Speaker 4>But honestly, that was worse sitting in the chair.

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<v Speaker 5>When I was growing up, I got spank my my mother,

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<v Speaker 5>my father, and both of my grandmothers.

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<v Speaker 6>In fact, one time my grandmother broke the yard stick.

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<v Speaker 4>Oake me yard stick, amateur. Some kids need it, some

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<v Speaker 4>kids don't. I was definitely a kid that needs a spanking.

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<v Speaker 2>Sounds like they just lined up like the scene from

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<v Speaker 2>Airplane to spank that one. Mom, Dad, grandma, grandma, everybody

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<v Speaker 2>bring their own. It's it be my own stick, all right.

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<v Speaker 7>And then finally, yeah, Chris, you got me thinking about this.

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<v Speaker 7>Uh Menindez brothers with this whole spanking or no spanking situation. Now,

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<v Speaker 7>I'm wondering did they get spanked too much or not enough?

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<v Speaker 7>What caused them to be these killer freaks?

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<v Speaker 4>I don't know. Can you give me some input on that?

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<v Speaker 2>Yeah, I mean according to them, it's the sexual abuse

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<v Speaker 2>is what did it, which is I think worse than spanking.

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<v Speaker 2>But yeah, that's what That's why there may be a

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<v Speaker 2>re sentencing hearing. I don't know, but that's what they say.

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<v Speaker 2>I'm not going to weigh in as to whether or

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<v Speaker 2>not it's true. I don't have any idea. I wasn't there.

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<v Speaker 2>Speaking of spankings, there's a Wisconsin judge who's definitely getting

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<v Speaker 2>a slamp on the wrist. I don't know that she's

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<v Speaker 2>going to get a spanking for it. Because this Wisconsin

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<v Speaker 2>judge was protecting an undocumented immigrant and the undocumented immigrant

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<v Speaker 2>was in her courtroom when Ice showed up, and she

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<v Speaker 2>helped usher the undocumented immigrant out of the back door.

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<v Speaker 4>I'm not so sure.

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<v Speaker 2>Because you've probably seen the protests around this, I'm not

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<v Speaker 2>so sure this is the hill people want to die of.

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<v Speaker 8>According to a federal criminal complaint. Judge Dugan is charged

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<v Speaker 8>with two counts of obstruction, including concealing a man illegally

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<v Speaker 8>to prevent his arrest. The thirteen page complaint alleges Dugan

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<v Speaker 8>helped Eduardo Flores Ruiz, an undocumented immigrant, avoid arrest by

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<v Speaker 8>ICE agents at the court building on April eighteen.

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<v Speaker 4>Uh huh.

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<v Speaker 8>Flores Ruiz was before for Judge Dugan for a criminal

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<v Speaker 8>court appearance after he was accused of domestic battery following

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<v Speaker 8>an alleged fight with a roommate. The Department of Homeland

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<v Speaker 8>Security says Flores Ruiz entered the US illegally twice, and

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<v Speaker 8>agents were outside Judge Dugan's courtroom waiting to arrest him

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<v Speaker 8>on an administrative warrant. Witnesses told federal investigators that when

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<v Speaker 8>Dugan learned ICE agents were outside her court she became

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<v Speaker 8>visibly angry, calling the situation absurd. The complaint says Judge

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<v Speaker 8>Dugan then told the arrest team to go to the

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<v Speaker 8>Chief Judge's office to speak with them about the permissibility

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<v Speaker 8>of making the arrest inside the courthouse. According to the complaint,

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<v Speaker 8>Dugan then allegedly escorted Flores Ruiz out of her courtroom

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<v Speaker 8>through a jury door to a non public area.

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<v Speaker 4>Oh she pulled a look over there trick.

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<v Speaker 5>Yeah, but these are courthouses. There's got to be security

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<v Speaker 5>footage of something.

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<v Speaker 4>I'm sure.

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<v Speaker 2>But even if there's even if there's footage, she still

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<v Speaker 2>was just trying to delay the actual the practical action

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<v Speaker 2>of old deal.

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<v Speaker 4>Well alleged. I mean, like you said, it's probably footage.

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<v Speaker 8>An attorney representing the judge issuing a statement saying, in part,

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<v Speaker 8>Hannessy Dugan has committed herself to the rule of law

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<v Speaker 8>and the principles of due process for her entire career

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<v Speaker 8>as a lawyer and a judge. Judge Dugan will defend

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<v Speaker 8>herself vigorously and looks forward to being exonerated.

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<v Speaker 4>All right, I'm sure she will.

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<v Speaker 2>However, we've heard a bunch of stories about people being

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<v Speaker 2>picked up who don't have any criminal history, about family

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<v Speaker 2>members being deported, about people who have asylum that are

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<v Speaker 2>being deported.

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<v Speaker 4>We've got two people anyway that have been ordered brought back.

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<v Speaker 2>Which of course the administration so far as is planting

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<v Speaker 2>those orders.

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<v Speaker 4>But I don't know that this is the guy.

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<v Speaker 2>I mean, the guy's been deported twice and he's in

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<v Speaker 2>court for beating the hell out of his roommate. I mean,

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<v Speaker 2>when we talk about immigration and fixing the system and

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<v Speaker 2>we say let's deport the bad guys and keep the

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<v Speaker 2>good guys.

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<v Speaker 4>Pretty sure somebody has been deported twice.

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<v Speaker 2>And then is in court for beating the hell out

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<v Speaker 2>of their roommate is one of those that you go

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<v Speaker 2>probably not one of the best and the brightest.

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<v Speaker 1>I just don't know that that.

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<v Speaker 4>I mean, I understand the rule of law.

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<v Speaker 2>I understand the practical the the practical the ideological argument,

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<v Speaker 2>the theoretical argument, the philosophical argument, all of that. I

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<v Speaker 2>get it. I get it, But I don't know that

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<v Speaker 2>this is the one that's gonna that's gonna focus people.

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<v Speaker 2>I just don't think this is gonna focus people very well. Meanwhile,

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<v Speaker 2>I feel kind of guilty because a number of people

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<v Speaker 2>got arrested, and I think it might have been my fault.

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<v Speaker 4>I'll tell you why that is. Next.

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<v Speaker 2>Chris Merril caf I AM six forty. We're live everywhere

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<v Speaker 2>on the iHeart Radio app.

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<v Speaker 1>You're listening to KFI AM six forty on demand.

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<v Speaker 2>Chris Merril CAFI AM six forty more stimulating talk on

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<v Speaker 2>demand anytime in the iHeart Radio app, you'll find this

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<v Speaker 2>show under the featured Segments podcast I appreciate The producer

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<v Speaker 2>Kaila keeps telling me to remind people of that. Thank

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<v Speaker 2>you kill You're very nice. Coming up here in the

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<v Speaker 2>six o'clock hour, there's a story about how views on

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<v Speaker 2>spanking have shifted globally, but in the United States, the

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<v Speaker 2>majority of people still support being able to wallop your

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<v Speaker 2>kid if you think they need it. So were you

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<v Speaker 2>spanked as a kid and did you or do you

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<v Speaker 2>spank yours? Now that's our talkback question. If you're on

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<v Speaker 2>the kfi ise iHeartRadio app the KFI page on there,

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<v Speaker 2>you'll see the talkback button. Just click on That allows

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<v Speaker 2>you to record a message and if it's worth a crap,

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<v Speaker 2>we might play it on the air.

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<v Speaker 4>It's not, well, that's why you didn't hear yourself.

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<v Speaker 9>Hey guys, jen X here checking in. Yeah, when I

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<v Speaker 9>was younger, my mom would get this wooden spoon out

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<v Speaker 9>and she would spank me with it, and I deserved it,

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<v Speaker 9>and I'll never forget she busted that spoon in half

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<v Speaker 9>one time and I just couldn't stop laughing. I thought

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<v Speaker 9>it was the funniest thing. And then like a week later,

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<v Speaker 9>she had like this, like a set of of twelve.

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<v Speaker 2>All my outstanding really the wooden spoon. Yeah, but they

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<v Speaker 2>never they never broke one on your highnie though.

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<v Speaker 4>Huh No.

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<v Speaker 5>But my mom decided to carry the tradition on to

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<v Speaker 5>my younger brothers, okay, a ten year difference, and one

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<v Speaker 5>of them did break the wooden spoon. Huh and same reaction.

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<v Speaker 5>He laughed so hard.

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<v Speaker 2>Oh man, that's when your mom went out and got

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<v Speaker 2>one of those nice stainless steel sets.

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<v Speaker 4>No. No, the worst.

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<v Speaker 2>Part about the wooden spoon breaking is that mom was

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<v Speaker 2>mad at me after that until she got another wooden spoon,

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<v Speaker 2>not because she didn't get to fulfill the rest of

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<v Speaker 2>the punishment, but because then she didn't have the wooden

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<v Speaker 2>spoon to cook with, so that she had to use

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<v Speaker 2>like a different like, you know, the slotted spoon or

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<v Speaker 2>something she didn't want, So it was kind of a

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<v Speaker 2>double whammy.

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<v Speaker 4>It was not her, Chris, Yeah, my mother withheld the fiber,

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<v Speaker 4>withheld the fiber. Do you know what that means? No, Kayla,

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<v Speaker 4>do you know what that means? Is that is that all?

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<v Speaker 4>He said? No idea, Chris, Yeah, my mother withheld the fiber.

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<v Speaker 4>Does that mean that his mother made him constipated? That's

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<v Speaker 4>what I would That's what I would think to the.

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<v Speaker 5>Bathroom, I get it right, because fiber makes you, makes

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<v Speaker 5>you go a lot. So maybe he was staying so

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<v Speaker 5>hard that the fiber was like did not work.

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<v Speaker 4>No, No, that that seems pretty made up. Andrew, I

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<v Speaker 4>don't know if that makes sense.

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<v Speaker 5>I'm trying to reach I'm trying to decipher what he's

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<v Speaker 5>trying to say.

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<v Speaker 2>Love when I love when good comedy you have to

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<v Speaker 2>kind of connect a two C and you have to

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<v Speaker 2>sort of fill in the blank.

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<v Speaker 4>But I'm not finding the blank in that one. Yeah, sorry,

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<v Speaker 4>my bad man. His mom didn't starve him. I think

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<v Speaker 4>that that's that's the most important thing.

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<v Speaker 7>Yeah, okay, Yeah, Chris epilogue, the spanking no spanking thing

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<v Speaker 7>and Menendez and the sexual whole scene and ah god,

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<v Speaker 7>the whole thing is just so disgusting. But I just

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<v Speaker 7>want you to think about this particular perspective. Maybe spanking,

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<v Speaker 7>what's part of this sexual abuse.

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<v Speaker 4>Or whatever their claiming.

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<v Speaker 7>I mean, you know, in today's world, it's things possible.

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<v Speaker 2>Well it was the eighties world and it was still

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<v Speaker 2>anything was possible.

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<v Speaker 4>So I don't know, I don't know. I feel kind

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<v Speaker 4>of bad.

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<v Speaker 2>Did you guys happen to see the story about the

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<v Speaker 2>day laborers that got picked up? And I feel like

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<v Speaker 2>this was a suggestion I made a couple of months ago.

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<v Speaker 2>I said, if you just want to go and find

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<v Speaker 2>people to deport, just cruise through the home depot parking

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<v Speaker 2>lot and.

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<v Speaker 10>Lo and behold, several cars abandoned at this home depot

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<v Speaker 10>parking lot in Pomona after a group of day workers

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<v Speaker 10>were rounded up and taken into custady Tuesday. Fabian Paco

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<v Speaker 10>was also a day worker.

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<v Speaker 11>He says he.

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<v Speaker 10>Knows some of the people, but doesn't know where they

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<v Speaker 10>are now.

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<v Speaker 4>Yeah, they're being the same.

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<v Speaker 2>I feel kind of bad because I thought, I mean,

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<v Speaker 2>if you just want to have some easy wins, you

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<v Speaker 2>want to start patting your numbers a little bit, just

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<v Speaker 2>zip on through the home depot parking lot.

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<v Speaker 4>And sure enough they did. So, Uh, that's my bad. Yeah,

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<v Speaker 4>you gotta stop giving advice on this show, man.

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<v Speaker 2>I know it, I know it. My bad, My bad,

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<v Speaker 2>Sorry about that. I feel feel kind of horrible about that.

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<v Speaker 2>All right, we'll do the tariff tango here in just

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<v Speaker 2>a few moments. And we'll find out if you have

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<v Speaker 2>a small business, just how badly or how well might

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<v Speaker 2>you be affected.

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<v Speaker 4>That is next.

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<v Speaker 2>Chris merril can't f I AM six forty. We're live

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<v Speaker 2>everywhere on the iHeart Radio app.

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<v Speaker 1>You're listening to KFI AM six forty on demand.

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<v Speaker 2>AM six forty more stimulating talk on demand anytime in

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<v Speaker 2>the iHeart Radio App.

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<v Speaker 4>I'm Chris merrill U.

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<v Speaker 2>If you have been to any of the tourist destinations

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<v Speaker 2>of late, you may have noticed traffic is a little better.

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<v Speaker 11>Overseas visitors to the US, excluding Canada and Mexico, we're

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<v Speaker 11>down twelve percent this March compared to March of twenty

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<v Speaker 11>twenty four. One country in particular is causing concern for

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<v Speaker 11>California tourism. Any countries you're not seeing as much of

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<v Speaker 11>that you used to see.

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<v Speaker 4>A lot of yeh, Canadians not seeing a lot of Canadians.

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<v Speaker 4>And when they do come down here, they got friction,

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<v Speaker 4>you know, they got a little bit conflicts. Canadians with friction.

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<v Speaker 1>Whoo.

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<v Speaker 4>Sometimes they don't even say thank you more than once

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<v Speaker 4>or twice.

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<v Speaker 11>Visits from Canadians were down twelve percent in February from

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<v Speaker 11>twenty twenty four. According to Visit California, vendors we talked

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<v Speaker 11>to are hoping for an improvement, but not necessarily expecting one.

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<v Speaker 11>According Latin Karment Diggers and NBC four Naws.

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<v Speaker 4>So Canadians are mad.

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<v Speaker 2>Not only are they upset about the whole fifty first

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<v Speaker 2>state thing, but they're all so a little miffed about

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<v Speaker 2>the tariffs. Remember those tariffs that went into effect early

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<v Speaker 2>on with Canada, Mexico and China. Those those are still

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<v Speaker 2>in effect, and in fact, so are the other initial tariffs.

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<v Speaker 2>It's the the reciprocal to recip tariffs. I know, it

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<v Speaker 2>feels like exceptional all of a sudden. Joining us right

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<v Speaker 2>now is Ben Johnston. He is the COO of Capitis,

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<v Speaker 2>which is a small business lender in marketplace.

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<v Speaker 4>Ben, pleasure to have you here.

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<v Speaker 2>I think there still is some confusion about the tariffs

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<v Speaker 2>because there still are.

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<v Speaker 4>We do have tariffs on globally.

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<v Speaker 2>What are you advising to small businesses right now? This

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<v Speaker 2>has got to be This has got to be a

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<v Speaker 2>I don't know, confusing time.

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<v Speaker 6>It's a confusing time and it's an expensive time because

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<v Speaker 6>for a lot of small businesses, tariffs are driving up

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<v Speaker 6>the cost of goods across all of the products that

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<v Speaker 6>they're buying and selling. So this means higher cost to

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<v Speaker 6>purchase equipment used in production, upgrade facilities, purchase inventory. Since

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<v Speaker 6>a lot of small businesses I've used end up financing

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<v Speaker 6>these expenses up front, that means higher financing costs for

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<v Speaker 6>them across the board as well. So we're seeing wholesalers

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<v Speaker 6>and retailers really impacted by this. Manufacturers, construct contractors who

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<v Speaker 6>are importing wood and cement, armers who have to import

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<v Speaker 6>fertilizer and machinery, Restaurants who need to import fruits and vegetables, seafood, wine,

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<v Speaker 6>all the stuff that you know makes going out so exciting.

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<v Speaker 6>And then they're dealing many businesses they're dealing with counter

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<v Speaker 6>tariffs as well. So small businesses that export goods overseas

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<v Speaker 6>are dealing with China's counter tariffs that they've put in.

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<v Speaker 6>They've imposed retaliatory tariffs of one hundred and twenty five

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<v Speaker 6>percent on most US items. They've suspended imports on certain

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<v Speaker 6>agricultural products, and they've imposed export controls on rare interals

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<v Speaker 6>which our companies are using. So you know, we're seeing

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<v Speaker 6>a lot of impact on small business across the board,

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<v Speaker 6>and you know, there are some things that small businesses

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<v Speaker 6>can do to try to lessen this impact, although you know,

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<v Speaker 6>I really don't think there's a silver bullet out there

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<v Speaker 6>for small businesses. One we like to tell our small

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<v Speaker 6>businesses if you can look for domestic substitutes. Now. Admittedly,

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<v Speaker 6>this is pretty hard given how integrated most global supply

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<v Speaker 6>chains are today, and most manufacturers can't easily find a

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<v Speaker 6>substitute being manufactured in the US, and even if they can,

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<v Speaker 6>well everyone's looking for that right now, so you can

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<v Speaker 6>expect the cost of those US manufactured goods to be

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<v Speaker 6>going up as well. Another thing we're telling people is

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<v Speaker 6>to seek suppliers from lower tariff countries if at all possible. Obviously,

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<v Speaker 6>China at one hundred and forty five percent tariffs, that's

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<v Speaker 6>a that's a huge number. Mexico and Canada are somewhat

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<v Speaker 6>more reasonable for most products that are around twenty five percent,

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<v Speaker 6>and then the rest of the global economy is resting

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<v Speaker 6>around ten percent right now. So there are some opportunities

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<v Speaker 6>for supply chain arbitrage out there, but it's really tough

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<v Speaker 6>to make some of those those changes, especially when you're

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<v Speaker 6>not sure how long those tariffs are going to be

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<v Speaker 6>in place, and if these are in fact final tariffs.

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<v Speaker 2>Ben Johnsin is a hang on, Ben, let me just

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<v Speaker 2>bring everybody up to speed here. If they're just joining us.

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<v Speaker 2>Ben Johnson is the chief operating officer as a capitist,

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<v Speaker 2>and they're a small business lender in a marketplace.

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<v Speaker 4>Can they play?

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<v Speaker 2>Can people play the game and import from not China

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<v Speaker 2>by making the you know, the Chinese goods that they

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<v Speaker 2>need and then having them shipped, say to Singapore first

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<v Speaker 2>and then come to the United States.

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<v Speaker 6>Well, technically that could be possible, but there has to

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<v Speaker 6>be some material work done in Singapore in your example,

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<v Speaker 6>before it can be legally renamed, retagged, and brought into

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<v Speaker 6>the United States. So it's you know, I think people

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<v Speaker 6>are trying to play that game, and I definitely think

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<v Speaker 6>people are trying to cheat the system by relabeling things

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<v Speaker 6>and shipping them to different parts of the world. But

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<v Speaker 6>if you want to do it legally, that is a

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<v Speaker 6>much more challenging option.

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<v Speaker 2>Ben, you talked about some of the small businesses that

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<v Speaker 2>are delaying excuse me that you know they're upgrades the

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<v Speaker 2>materials that they need in order to upgrade their facilities,

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<v Speaker 2>whether it's a planned whether it's a restaurant, whatever that

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<v Speaker 2>might be.

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<v Speaker 4>Those costs are going up.

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<v Speaker 2>Are their businesses you're that you're seeing are slowing expansion

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<v Speaker 2>as a result of the the I mean there's an

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<v Speaker 2>increased cost now, but also all that uncertainty.

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<v Speaker 4>That's the word.

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<v Speaker 2>I mean, that's going to be the word of twenty

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<v Speaker 2>twenty times, uncertainty, right, I mean, are they delayed?

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<v Speaker 4>Are they delaying that?

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<v Speaker 6>It's certainly the word of the hour. I think responsible

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<v Speaker 6>businesses are pausing a lot of their growth plans for

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<v Speaker 6>the moment and trying to understand what the tariffs are

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<v Speaker 6>going to be and mean for them long term. They're

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<v Speaker 6>exploring their supply chains and trying to figure out where

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<v Speaker 6>to position their supply chains for the future. But right now,

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<v Speaker 6>given so much uncertainty around tariffs and interest rates and

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<v Speaker 6>the state of the global economy, I think a lot

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<v Speaker 6>of people are putting expansion plans on pause, and they're

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<v Speaker 6>just trying to retrench and make sure that their core

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<v Speaker 6>goods that they're selling are profitable and that they can

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<v Speaker 6>maintain their bottom line as they are today.

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<v Speaker 2>Is there anybody, and maybe this is harder for small businesses.

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<v Speaker 2>Is there anybody that's eating some of the cost on

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<v Speaker 2>the tariffs? I've heard about early on that you may

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<v Speaker 2>have some companies that say, well, we'll absorb this to

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<v Speaker 2>start with, but we can't do that forever. Are you

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<v Speaker 2>seeing that that? Is that something that can even be

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<v Speaker 2>done on a small business scale.

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<v Speaker 6>I think it all depends on the magnitude of the

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<v Speaker 6>tariff that's being handled by the small business. I think

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<v Speaker 6>if the tariff is a ten percent tariff, they can

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<v Speaker 6>probably eat a portion of that. Really depending on the

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<v Speaker 6>business's margins. Some businesses a very wide margins, other businesses

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<v Speaker 6>of very small margins. I do think that businesses are

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<v Speaker 6>trying to tighten their belts as tightly as they can

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<v Speaker 6>to limit what they pass on to their customers. But

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<v Speaker 6>for someone who's importing from China and has just been

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<v Speaker 6>hit by one hundred and forty five percent tariff, you know,

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<v Speaker 6>I don't know about business that imports from China that

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<v Speaker 6>could withstand that type of tariff and not need to

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<v Speaker 6>pass it on to their customer base. I just don't

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<v Speaker 6>think that's realistic.

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<v Speaker 2>Ben Johnston is the chief operating officer of Capitists, or

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<v Speaker 2>a small business lender in a marketplace. Ben, sit tight here.

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<v Speaker 2>I got to check on traffic and we'll get a

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<v Speaker 2>news update here in just a moment. But I gotta

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<v Speaker 2>wonder if if anybody's doing okay right now? In fact,

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<v Speaker 2>are we actually seeing a tariff bump for some people?

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<v Speaker 2>And you heard Ben say some places are tightening the belt.

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<v Speaker 2>What does that look like and what does that mean

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<v Speaker 2>to your future with your company? That is next Chris

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<v Speaker 2>merrilf I AM six forty. We live everywhere on the

427
00:22:23.279 --> 00:22:24.079
<v Speaker 2>iHeart Radio app.

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00:22:24.200 --> 00:22:28.559
<v Speaker 1>You're listening to KFI AM six forty on demand Chris.

429
00:22:28.319 --> 00:22:31.839
<v Speaker 2>Merrill six forty more stimulating talk on demand anytime in

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00:22:31.880 --> 00:22:36.480
<v Speaker 2>the iHeartRadio app, and our show featured under the featured

431
00:22:36.519 --> 00:22:41.119
<v Speaker 2>segments section of the podcast pages or whatever it is

432
00:22:41.160 --> 00:22:45.240
<v Speaker 2>at KFI AM six forty dot com. The tariff tango

433
00:22:45.279 --> 00:22:47.960
<v Speaker 2>continues on. Some people are trying to figure out their

434
00:22:47.960 --> 00:22:49.960
<v Speaker 2>way around it, and they're getting suckered.

435
00:22:50.160 --> 00:22:55.400
<v Speaker 12>Chinese merchants claiming to either manufacture actual designer goods or

436
00:22:55.559 --> 00:22:57.759
<v Speaker 12>to repro to make things that are out of the

437
00:22:57.799 --> 00:23:00.799
<v Speaker 12>same factories of those are now green, taking to TikTok

438
00:23:00.839 --> 00:23:03.279
<v Speaker 12>and saying we've got the stuff you want and you

439
00:23:03.319 --> 00:23:06.160
<v Speaker 12>can avoid tariffs by coming straight to us, and we'll

440
00:23:06.200 --> 00:23:09.559
<v Speaker 12>send it straight to you. A very appealing offer. There's

441
00:23:09.640 --> 00:23:13.119
<v Speaker 12>several problems here. First of all, there's a lot of

442
00:23:13.160 --> 00:23:15.200
<v Speaker 12>scams going on here. I mean, these are people who

443
00:23:15.240 --> 00:23:17.759
<v Speaker 12>you don't know, merchants you've never dealt with directly, who

444
00:23:17.759 --> 00:23:20.759
<v Speaker 12>are asking you to send them money. That's always a

445
00:23:20.799 --> 00:23:24.240
<v Speaker 12>red flag, and that alone should end this conversation.

446
00:23:24.400 --> 00:23:27.000
<v Speaker 4>But yep, that alone should end the conversation.

447
00:23:27.079 --> 00:23:28.599
<v Speaker 2>People are still doing it is we all want to

448
00:23:28.599 --> 00:23:30.720
<v Speaker 2>save a few dollars, and this feels like an opportunity

449
00:23:30.720 --> 00:23:35.279
<v Speaker 2>for scammers. Ben Johnston is the COO of Capitis, which

450
00:23:35.319 --> 00:23:39.279
<v Speaker 2>is a small business lender in a marketplace, and Ben, well,

451
00:23:39.519 --> 00:23:41.200
<v Speaker 2>we do have scammers that are out there. One of

452
00:23:41.240 --> 00:23:43.839
<v Speaker 2>the things that I'm seeing are actually American companies that

453
00:23:43.880 --> 00:23:46.240
<v Speaker 2>are trying to capitalize on this, not the least of

454
00:23:46.240 --> 00:23:50.119
<v Speaker 2>which are the auto manufacturers. Ford comes out and says,

455
00:23:50.160 --> 00:23:53.240
<v Speaker 2>we do more in the United States than anybody else.

456
00:23:54.319 --> 00:23:57.599
<v Speaker 2>And then they say, and we're offering employee pricing. I

457
00:23:57.720 --> 00:23:59.799
<v Speaker 2>just saw an ad for I think it was Jeep

458
00:24:00.039 --> 00:24:02.680
<v Speaker 2>that said they're offering something like seven grand off or

459
00:24:02.720 --> 00:24:04.079
<v Speaker 2>employee pricing or something.

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00:24:04.000 --> 00:24:06.000
<v Speaker 4>Of that nature are these car companies.

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00:24:06.039 --> 00:24:08.119
<v Speaker 2>I mean, they make it sound like they're not hurting

462
00:24:08.119 --> 00:24:10.519
<v Speaker 2>at all, but we thought that they were. We thought

463
00:24:10.519 --> 00:24:12.599
<v Speaker 2>the car companies were going to get hurt as much

464
00:24:12.680 --> 00:24:14.079
<v Speaker 2>or more than most anywhere else.

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00:24:16.160 --> 00:24:19.160
<v Speaker 6>Well, I think they'll be hurt if some of the

466
00:24:20.400 --> 00:24:26.279
<v Speaker 6>threatened tariffs between Canada, Mexico and the United States are

467
00:24:26.359 --> 00:24:30.759
<v Speaker 6>truly implemented. For the automakers, I think the automakers recently

468
00:24:30.799 --> 00:24:33.960
<v Speaker 6>got a reprieve from some of those announced tariffs, least

469
00:24:33.960 --> 00:24:38.160
<v Speaker 6>for a period of time. And while tariffs therefore have

470
00:24:38.240 --> 00:24:40.359
<v Speaker 6>gone up on the rest of the world by ten

471
00:24:40.440 --> 00:24:44.720
<v Speaker 6>percent and that would limit imports from Japan or from Europe,

472
00:24:45.440 --> 00:24:48.160
<v Speaker 6>that certainly is going to help out the Big three

473
00:24:48.160 --> 00:24:51.680
<v Speaker 6>in the United States. But you know, it's a matter

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00:24:51.759 --> 00:24:55.119
<v Speaker 6>of what will happen next in terms of how tariffs

475
00:24:55.160 --> 00:24:56.720
<v Speaker 6>impact the automakers.

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<v Speaker 2>Here, I see that a couple of companies from China,

477
00:25:02.200 --> 00:25:05.839
<v Speaker 2>Shean and Timu, are both staying their prices are going

478
00:25:05.920 --> 00:25:09.400
<v Speaker 2>up because of the tariffs. That, however, I would say,

479
00:25:09.480 --> 00:25:12.680
<v Speaker 2>is an argument for the administration that well, their prices

480
00:25:12.720 --> 00:25:14.839
<v Speaker 2>are going up, which means that that's going to be

481
00:25:15.279 --> 00:25:18.400
<v Speaker 2>good for American companies, right. I mean, could you make

482
00:25:18.440 --> 00:25:20.519
<v Speaker 2>the argument that some of these American companies that were

483
00:25:20.519 --> 00:25:25.079
<v Speaker 2>being undercut by the cheap manufacturers overseas now have a

484
00:25:25.079 --> 00:25:26.119
<v Speaker 2>more level playing field.

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<v Speaker 6>Absolutely, I mean, I think this could be a if

486
00:25:30.599 --> 00:25:33.640
<v Speaker 6>there are if there are manufacturers in the United States

487
00:25:33.640 --> 00:25:38.599
<v Speaker 6>who are directly competing against manufacturers in China, that could

488
00:25:38.599 --> 00:25:43.839
<v Speaker 6>be a boon for any US manufacturer who is manufacturing

489
00:25:43.880 --> 00:25:47.079
<v Speaker 6>for a domestic audience. Okay, The problem is a lot

490
00:25:47.119 --> 00:25:51.960
<v Speaker 6>of US manufacturers actually import their raw materials and their

491
00:25:52.000 --> 00:25:56.960
<v Speaker 6>component parts that they then assemble and put the finishing

492
00:25:57.000 --> 00:26:00.839
<v Speaker 6>touches on in the United States before selling. And if

493
00:26:01.079 --> 00:26:04.960
<v Speaker 6>their raw materials are going up dramatically, you know, that's

494
00:26:05.079 --> 00:26:09.519
<v Speaker 6>almost having the same impact on them as being a

495
00:26:09.559 --> 00:26:12.680
<v Speaker 6>wholesaleer bringing that those goods into the US.

496
00:26:13.079 --> 00:26:15.839
<v Speaker 2>What does it look like, Ben, you mentioned that some

497
00:26:15.880 --> 00:26:18.720
<v Speaker 2>places are tightening the belt right now. They're being cautious

498
00:26:18.759 --> 00:26:22.519
<v Speaker 2>because of the uncertainty that we have in the environment

499
00:26:22.559 --> 00:26:24.319
<v Speaker 2>right now. So what does that look like tightening the belt?

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00:26:24.319 --> 00:26:27.240
<v Speaker 2>Does that mean layoffs? Does that mean? I mean we

501
00:26:27.680 --> 00:26:31.559
<v Speaker 2>talked about delaying some upgrades or expansion might be delayed

502
00:26:31.559 --> 00:26:33.519
<v Speaker 2>for a while, But I mean, were we talking about

503
00:26:33.519 --> 00:26:35.400
<v Speaker 2>the potential for jobs being at risk here.

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00:26:37.279 --> 00:26:39.720
<v Speaker 6>I certainly think jobs are at risk in the long

505
00:26:39.839 --> 00:26:44.759
<v Speaker 6>run if we stay on the current path. One thing

506
00:26:44.799 --> 00:26:48.000
<v Speaker 6>I would say is that we haven't seen a real

507
00:26:48.119 --> 00:26:51.359
<v Speaker 6>pullback in the economic numbers as of yet.

508
00:26:51.799 --> 00:26:52.000
<v Speaker 4>Now.

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00:26:52.039 --> 00:26:55.839
<v Speaker 6>Most of these tariffs have only been in for less

510
00:26:55.880 --> 00:26:58.720
<v Speaker 6>than a month right now, and so I think there's

511
00:26:58.759 --> 00:27:02.319
<v Speaker 6>a wait and see going on to see how the

512
00:27:02.359 --> 00:27:07.160
<v Speaker 6>tariffs are truly impacting the bottom line and how consumer

513
00:27:07.240 --> 00:27:12.039
<v Speaker 6>spending reacts to all of this. At the moment, you know,

514
00:27:12.079 --> 00:27:15.640
<v Speaker 6>we haven't seen CPI numbers spike yet, but I think

515
00:27:15.680 --> 00:27:18.759
<v Speaker 6>we're all waiting to see what the April numbers look

516
00:27:18.920 --> 00:27:21.960
<v Speaker 6>like when they're published in early May, to see if

517
00:27:21.960 --> 00:27:26.400
<v Speaker 6>we start to see some spike in the overall cost

518
00:27:26.440 --> 00:27:29.799
<v Speaker 6>of goods and a pullback from the American consumer. If

519
00:27:29.799 --> 00:27:34.480
<v Speaker 6>we see those things, I definitely expect businesses to start

520
00:27:34.559 --> 00:27:39.519
<v Speaker 6>belt tightening. Maybe that doesn't mean layoffs immediately, but if

521
00:27:39.960 --> 00:27:45.759
<v Speaker 6>a contraction continues to progress throughout the year, for sure

522
00:27:45.799 --> 00:27:47.200
<v Speaker 6>we're going to start seeing layoffs.

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00:27:47.400 --> 00:27:49.920
<v Speaker 2>Ben Johnson is the chief operating officer at Capitist of

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00:27:49.960 --> 00:27:51.599
<v Speaker 2>small business lender in a marketplace.

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00:27:51.839 --> 00:27:53.119
<v Speaker 4>What does this do for somebody like you?

526
00:27:53.240 --> 00:27:57.960
<v Speaker 2>I mean your whole You lend money to small businesses

527
00:27:58.000 --> 00:28:00.519
<v Speaker 2>in one to expand this is going to be tricky

528
00:28:00.519 --> 00:28:01.400
<v Speaker 2>for you to navigate.

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00:28:02.680 --> 00:28:07.240
<v Speaker 6>It is tricky for us. Fortunately, we have a stable

530
00:28:07.319 --> 00:28:11.680
<v Speaker 6>and strong group of small businesses who have been through

531
00:28:11.720 --> 00:28:16.039
<v Speaker 6>cycles in the past and are doing the prudent thing

532
00:28:17.240 --> 00:28:20.880
<v Speaker 6>and doing the math that we're talking about doing right now,

533
00:28:21.359 --> 00:28:24.680
<v Speaker 6>and we want to be there to support them now.

534
00:28:24.880 --> 00:28:29.039
<v Speaker 6>No matter what happens. Small business owners are incredibly creative

535
00:28:29.240 --> 00:28:35.079
<v Speaker 6>and incredibly flexible, and whenever there is a challenge posed,

536
00:28:35.200 --> 00:28:37.839
<v Speaker 6>they are the first ones to find a creative solution

537
00:28:38.400 --> 00:28:43.359
<v Speaker 6>and a way to work through the issue. And it's

538
00:28:43.400 --> 00:28:45.799
<v Speaker 6>going to be our job to be there for them,

539
00:28:45.920 --> 00:28:51.200
<v Speaker 6>hopefully to help finance what may be a large repatriation

540
00:28:51.319 --> 00:28:54.000
<v Speaker 6>and manufacturing back to the United States. So in the

541
00:28:54.039 --> 00:28:59.039
<v Speaker 6>coming years, certainly that type of work is going to

542
00:28:59.079 --> 00:29:03.920
<v Speaker 6>create a need for tremendous capital and the small business community,

543
00:29:04.359 --> 00:29:06.200
<v Speaker 6>and we want to be there to support them. But

544
00:29:06.240 --> 00:29:08.440
<v Speaker 6>certainly we have to keep an eye on the numbers,

545
00:29:08.839 --> 00:29:10.359
<v Speaker 6>as does everyone else.

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00:29:10.319 --> 00:29:11.920
<v Speaker 4>Who's going to do those jobs. Are we doing all

547
00:29:12.039 --> 00:29:12.640
<v Speaker 4>robots now?

548
00:29:14.599 --> 00:29:19.599
<v Speaker 6>That is an excellent question, you know, especially given the

549
00:29:19.839 --> 00:29:26.839
<v Speaker 6>curtail and of immigration simultaneous to these tariff changes. You know,

550
00:29:27.160 --> 00:29:31.640
<v Speaker 6>it's hard to imagine bringing back millions of jobs to

551
00:29:31.720 --> 00:29:34.839
<v Speaker 6>the United States when you have an unemployment rate of

552
00:29:34.960 --> 00:29:40.319
<v Speaker 6>four percent and doing it without automation. So I think

553
00:29:40.599 --> 00:29:44.920
<v Speaker 6>automation has to be core to the success of the

554
00:29:44.960 --> 00:29:48.400
<v Speaker 6>future of the US manufacturing space. But certainly it will

555
00:29:48.400 --> 00:29:50.640
<v Speaker 6>also bring jobs back to the United States.

556
00:29:50.799 --> 00:29:51.039
<v Speaker 4>Yeah.

557
00:29:51.119 --> 00:29:53.480
<v Speaker 2>I think those all those geeks from the robotics club

558
00:29:53.519 --> 00:29:54.920
<v Speaker 2>in high school are going to have all the jobs

559
00:29:54.920 --> 00:29:56.160
<v Speaker 2>in the future. They're going to be the ones in

560
00:29:56.240 --> 00:29:58.319
<v Speaker 2>charge of making sure the manufacturing plans run.

561
00:29:59.319 --> 00:30:00.920
<v Speaker 4>That should be the that's the future, man.

562
00:30:00.920 --> 00:30:03.079
<v Speaker 6>They've been in high demand for years now, and I

563
00:30:03.119 --> 00:30:04.599
<v Speaker 6>don't see that slowing down.

564
00:30:04.720 --> 00:30:05.519
<v Speaker 4>Even higher now.

565
00:30:05.960 --> 00:30:09.960
<v Speaker 2>Ben Johnson, the chief operating officer of Capitist Ben Pleasure

566
00:30:09.960 --> 00:30:11.279
<v Speaker 2>talking with you, man. I hope, I hope you get

567
00:30:11.279 --> 00:30:12.440
<v Speaker 2>a chance to do it again. We're gonna keep you

568
00:30:12.440 --> 00:30:13.279
<v Speaker 2>in the rollodex, my man.

569
00:30:14.440 --> 00:30:15.200
<v Speaker 6>Thank you very much.

570
00:30:15.359 --> 00:30:18.200
<v Speaker 4>Real enjoyed it, yep, thank you? All right?

571
00:30:19.240 --> 00:30:25.359
<v Speaker 2>All right, geeks, hear that, Raoul, all those guys that

572
00:30:25.359 --> 00:30:27.000
<v Speaker 2>that used to stuff me in the locker, all those

573
00:30:27.039 --> 00:30:29.680
<v Speaker 2>geeks in high school that used to give me the wedgies,

574
00:30:29.720 --> 00:30:32.519
<v Speaker 2>and whatnot because I was actually below them on the

575
00:30:32.519 --> 00:30:33.039
<v Speaker 2>totem pole.

576
00:30:33.119 --> 00:30:35.400
<v Speaker 4>You know, you had, you had the jocks, the geeks,

577
00:30:35.440 --> 00:30:35.799
<v Speaker 4>and then me.

578
00:30:37.400 --> 00:30:39.519
<v Speaker 2>They're gonna be running the world, man, just like their

579
00:30:39.519 --> 00:30:40.640
<v Speaker 2>mother's always told them.

580
00:30:41.160 --> 00:30:43.240
<v Speaker 4>All right in just a moment. There's no business like

581
00:30:43.640 --> 00:30:47.599
<v Speaker 4>show business. Great heads. Kim six forty. We live everywhere

582
00:30:47.599 --> 00:30:48.359
<v Speaker 4>in the iHeartRadio

583
00:30:48.400 --> 00:30:51.480
<v Speaker 1>Ap KF, I AM sixty on demand
