WEBVTT 1 00:00:00.080 --> 00:00:04.799 Kamala Harris is finally giving some actual policy proposals, and 2 00:00:04.839 --> 00:00:09.599 they're not very good, and she's reiterating a bunch of 3 00:00:10.240 --> 00:00:13.679 sort of these Democrat talking points that I always find 4 00:00:13.720 --> 00:00:16.719 so silly when it comes to this is just the 5 00:00:16.719 --> 00:00:21.280 whole Biden approach to inflation. So we've had the Kamala 6 00:00:21.280 --> 00:00:27.640 Harris honeymoon. It seems to be receding. The polling seems 7 00:00:27.719 --> 00:00:32.799 to be stabilizing again into what I think everyone expected. 8 00:00:32.840 --> 00:00:38.520 This is a very close, very tight race. Poles have 9 00:00:38.960 --> 00:00:43.640 sort of corrected themselves. And while poles had been showing 10 00:00:43.719 --> 00:00:46.359 Harris leading in all these swing states and Harris leading 11 00:00:46.439 --> 00:00:49.000 nationally by maybe two or three points, now things are 12 00:00:49.000 --> 00:00:52.039 sort of correcting and it's nationally looking more like a 13 00:00:52.079 --> 00:00:56.280 dead heat. And if it's a genuine dead heat, just 14 00:00:56.359 --> 00:00:59.600 because of the sort of inefficient spread of the Democrat 15 00:00:59.679 --> 00:01:04.400 elect across the states, it's a if it winds up being, 16 00:01:04.439 --> 00:01:07.200 you know, forty eight percent to forty eight percent, Donald 17 00:01:07.200 --> 00:01:11.719 Trump usually winds up winning in that case, just because basically, 18 00:01:11.760 --> 00:01:14.959 Donald Trump Democrats have such a large share of the 19 00:01:15.040 --> 00:01:22.159 vote in large in California basically that that skews the 20 00:01:22.200 --> 00:01:25.040 percentages such that Trump is more likely to win the 21 00:01:25.040 --> 00:01:29.159 electoral College in the event of a tied race from 22 00:01:29.200 --> 00:01:31.560 a popular vote perspective. So anyway, it looks like things 23 00:01:31.560 --> 00:01:36.400 are sort of stabilizing for Trump, and Democrats have had 24 00:01:36.400 --> 00:01:38.599 some bad press, a lot of bad press about Tim Walls, 25 00:01:39.439 --> 00:01:43.319 and Harris is finally having to actually give some policy proposals. 26 00:01:44.760 --> 00:01:48.000 But here's her problem is that she can't really escape 27 00:01:48.040 --> 00:01:51.439 the fact that she is the current sitting vice president. 28 00:01:53.799 --> 00:01:55.840 And you know when she says stuff like we're going 29 00:01:55.920 --> 00:02:00.200 to tackle inflation on day one, well it's day He's 30 00:02:00.200 --> 00:02:02.159 been the vice president for three and a half years. 31 00:02:02.519 --> 00:02:06.599 It is she could introduce these things tomorrow. What's to 32 00:02:06.640 --> 00:02:09.560 stop her. She could have introduced these things two weeks ago. 33 00:02:10.199 --> 00:02:12.719 She has to sort of engage with the fact that 34 00:02:12.800 --> 00:02:15.400 she is, in fact the current vice president. They're trying 35 00:02:15.439 --> 00:02:18.919 to sort of recreate this notion that she isn't the 36 00:02:18.919 --> 00:02:24.120 incumbent who should be responsible for the economic malaise in 37 00:02:24.120 --> 00:02:32.000 which the country finds itself. Now, one of the first 38 00:02:32.039 --> 00:02:42.000 things she is doing is going after high prices of groceries, 39 00:02:43.319 --> 00:02:46.599 and she is reiterating the same thing that Joe Biden 40 00:02:46.680 --> 00:02:48.680 has reiterated over the course of the last three and 41 00:02:48.680 --> 00:02:53.159 a half years, when gas prices shot up, Biden tried 42 00:02:53.199 --> 00:02:55.319 to claim, and he got a bunch of state attorneys 43 00:02:55.319 --> 00:02:59.680 general to acclaim, Oh, this is this is the fault 44 00:02:59.719 --> 00:03:04.159 of evil gas companies just gouging us at the pump. 45 00:03:05.439 --> 00:03:09.199 That's what's responsible. It's these companies that own gas stations 46 00:03:09.199 --> 00:03:11.479 that are gouging you at the pump. That's why our 47 00:03:11.719 --> 00:03:15.639 price of gas is going up without sort of acknowledging. Well, no, 48 00:03:17.599 --> 00:03:20.120 there are genuine economic factors that are leading to the 49 00:03:20.120 --> 00:03:25.800 cost of oil skyrocketing. Okay, it's not like, you know, 50 00:03:26.520 --> 00:03:28.759 California liberals do this all the time, where they're like, oh, 51 00:03:28.840 --> 00:03:31.879 these oil companies are gouging us, wires are or why 52 00:03:31.960 --> 00:03:35.280 is our gas price so much more expensive here in California. 53 00:03:35.680 --> 00:03:40.319 It's like, well, this is not a mystery. California imposes 54 00:03:40.439 --> 00:03:44.319 tons of specific state taxes on gasoline. California has all 55 00:03:44.400 --> 00:03:50.800 kinds of mandates for the specific California mix of gasoline 56 00:03:51.159 --> 00:03:53.560 that we have to get at our pumps to comply 57 00:03:53.639 --> 00:03:58.479 with California state emissions regulations, which are a different mix 58 00:03:58.560 --> 00:04:01.360 than what you're pumping into your car in Texas or Oklahoma. 59 00:04:01.439 --> 00:04:06.120 Or Nevada or something. So that requires gas companies to 60 00:04:06.159 --> 00:04:13.599 set up separate refinery set ups a separate refinery system 61 00:04:13.879 --> 00:04:17.879 just for California. So that adds on lots of additional cost. 62 00:04:18.040 --> 00:04:20.120 Like California having the most expensive gas in the nation 63 00:04:20.399 --> 00:04:22.759 is not a kuinkie dink. It's the result of a 64 00:04:22.800 --> 00:04:27.000 bunch of very conscious, deliberate policy choices California has made 65 00:04:27.040 --> 00:04:32.000 over the course of decades. It's not like gas companies 66 00:04:32.319 --> 00:04:37.800 are only evil price gouging monsters in California, but not 67 00:04:37.959 --> 00:04:39.879 in Nevada, where all of a sudden you cross the 68 00:04:39.879 --> 00:04:43.399 border and magically the gas is eighty cents a gallon 69 00:04:43.480 --> 00:04:46.480 cheaper whatever. It is a dollar a gallon cheaper. No, 70 00:04:47.279 --> 00:04:49.800 it's a dollar a gallon, eighty cents a gallon whatever, 71 00:04:49.959 --> 00:04:55.519 more expensive here for reasons, for very distinct, concrete reasons. 72 00:05:01.000 --> 00:05:03.519 So what Kamala Harris is trying to say is, ah, 73 00:05:03.560 --> 00:05:07.800 the reason, oh, inflation is so bad because because these 74 00:05:07.879 --> 00:05:14.560 evil supermarket chains are price gouging you. That's what's happening. 75 00:05:18.199 --> 00:05:29.399 Evil supermarket chains are price gouging. Now, that is ridiculous. 76 00:05:33.160 --> 00:05:39.160 Supermarkets are not price gouging us. Okay, supermarkets in America 77 00:05:40.560 --> 00:05:52.759 operate on an extremely narrow profit margin. Supermarkets operate on 78 00:05:52.800 --> 00:05:59.240 a profit margin industry wide of about one point six percent. 79 00:05:59.720 --> 00:06:06.000 That's a really narrow profit margin. Right, So when a 80 00:06:06.199 --> 00:06:13.639 supermarket chain is increasing its prices on food, that's not 81 00:06:13.959 --> 00:06:19.240 price gouging. Okay, Look, if supermarket chains had a you know, 82 00:06:20.639 --> 00:06:26.000 five or a ten percent profit margin, okay, maybe we 83 00:06:26.040 --> 00:06:28.160 can talk. Maybe we can talk about whether or not 84 00:06:28.199 --> 00:06:31.439 they're price caudging it or if certain rest supermarket chains 85 00:06:32.839 --> 00:06:38.279 we're doing So that's fine. But Harris is trying to 86 00:06:38.319 --> 00:06:41.720 promote this idea, and she's promoting it along with the 87 00:06:41.759 --> 00:06:45.879 idea of price controls. Price controls for food, so putting 88 00:06:46.040 --> 00:06:55.399 artificial caps on food costs in ways that putting artificial 89 00:06:55.399 --> 00:06:57.519 caps on the costs of different kinds of food, so 90 00:06:57.560 --> 00:07:01.959 that the cost of food cannot fluctuate freely in response 91 00:07:02.040 --> 00:07:08.199 to market trends, that grocery stores supermarkets cannot price food 92 00:07:08.519 --> 00:07:11.759 at a way that is reflective of the market. That 93 00:07:11.839 --> 00:07:14.439 basically the government will come in and impose a top 94 00:07:14.519 --> 00:07:18.160 limit on how much you can charge for certain kinds 95 00:07:18.199 --> 00:07:26.920 of items. Now, I am not never have been a 96 00:07:27.000 --> 00:07:33.879 total laissez fair economic thinker. I don't know that the 97 00:07:33.879 --> 00:07:38.000 invisible hand of the market always results in the best outcome. 98 00:07:38.560 --> 00:07:44.680 I'm not you know, I don't believe that is true. 99 00:07:45.079 --> 00:07:50.399 I think that some government regulation of the economy is okay. 100 00:07:50.800 --> 00:07:54.800 Everyone kind of thinks that. Okay. If you think things 101 00:07:54.920 --> 00:07:58.319 like monopolies are things that should be broken up, you know, 102 00:07:58.519 --> 00:08:01.279 then you don't believe in a purely invisible hand of 103 00:08:01.319 --> 00:08:05.800 the market controlling everything. And we've very widely accepted a left, 104 00:08:05.879 --> 00:08:08.600 right and center in America that things like monopolies and 105 00:08:08.639 --> 00:08:15.399 anti competitive activity are things that should be resistant. But 106 00:08:15.519 --> 00:08:18.560 price controls are such a terrible idea. Okay, again, you've 107 00:08:18.560 --> 00:08:21.759 got supermarkets are operating on a one point six percent 108 00:08:21.839 --> 00:08:27.000 profit margin. Let's take any individual item, all right, Let's 109 00:08:27.000 --> 00:08:31.160 take mayonnaise. All right. We'll just use mayonnaise as an example. 110 00:08:33.200 --> 00:08:40.960 Let's say mayonnaise costs. The cost to the supermarket to 111 00:08:41.039 --> 00:08:45.080 buy the mayonnaise from the suppliers from the mayonnaise company 112 00:08:45.720 --> 00:08:50.039 is two dollars a jar, and they want to sell 113 00:08:50.080 --> 00:08:56.759 it for two dollars and twenty cents. If the government 114 00:08:56.879 --> 00:09:02.799 tells the supermarket chain, you can only sell your mayonnaise 115 00:09:04.080 --> 00:09:06.399 at two dollars a jar, there's two dollars a jar 116 00:09:07.240 --> 00:09:14.759 price control limit on mayonnaise. Well, the supermarket will then 117 00:09:14.919 --> 00:09:17.480 look at the mayonnaise say well, we have to spend 118 00:09:17.519 --> 00:09:20.600 two dollars just to get the mayonnaise. If we are 119 00:09:20.720 --> 00:09:25.399 then selling the mayonnaise for two dollars, we're making zero money. 120 00:09:25.399 --> 00:09:27.919 In fact, we're probably losing money. We're losing money once 121 00:09:27.960 --> 00:09:32.360 you account for the cost of overhead employees, air conditioning, 122 00:09:32.440 --> 00:09:37.879 et cetera. So we will lose money on every jar 123 00:09:37.919 --> 00:09:42.120 of mayonnaise we sell. What is the supermarket gonna do. 124 00:09:43.120 --> 00:09:47.879 They're gonna just stop selling mayonnaise, right, I mean, that's 125 00:09:47.919 --> 00:09:54.799 obviously what's gonna happen. So when you impose a price control, 126 00:09:55.799 --> 00:10:00.600 what tends to happen is not that the company just 127 00:10:00.639 --> 00:10:02.039 sort of statically says. 128 00:10:01.879 --> 00:10:04.759 Oh, well, okay, I guess that's the price control I 129 00:10:04.840 --> 00:10:07.759 will impose. I will sell the thing at that price 130 00:10:07.840 --> 00:10:10.279 and continue to have the same supply of this product 131 00:10:10.879 --> 00:10:15.200 available to consumers, even though every single jar of mayonnaise 132 00:10:15.240 --> 00:10:16.559 they buy, I'm losing money. 133 00:10:16.759 --> 00:10:20.159 No, supermarkets don't do that. They can't do that. If 134 00:10:20.200 --> 00:10:23.039 they keep doing that with product after product after product, 135 00:10:23.240 --> 00:10:25.720 their profit margin will go from one point six percent, 136 00:10:25.720 --> 00:10:29.200 which it is right now, to something like negative one 137 00:10:29.200 --> 00:10:33.919 point six percent. They will start losing money. They will 138 00:10:33.919 --> 00:10:36.720 start losing money and then eventually have to do things 139 00:10:36.840 --> 00:10:50.039 like cut costs, fire employees, shut down grocery stores. Can't 140 00:10:50.080 --> 00:10:53.960 they just fire their big wig executives. Okay, yeah, I 141 00:10:53.960 --> 00:10:57.720 guess they could do that too, But it's just not 142 00:10:57.840 --> 00:11:03.240 a sustainable It's inherently not a sustainable thing to just 143 00:11:03.360 --> 00:11:06.279 mandate an artificial some kind of artificial price control that 144 00:11:06.360 --> 00:11:09.960 is not reflective of the economic reality of the product 145 00:11:09.960 --> 00:11:13.840 that you're wanting people to sell. We want grocery stores 146 00:11:13.960 --> 00:11:21.679 to sell bread, meat, poultry, dairy. Okay, this is not 147 00:11:22.639 --> 00:11:27.320 you know, we're not talking here about you know, birthday 148 00:11:27.360 --> 00:11:33.000 cakes or floral arrangements. We're talking about food. We're talking 149 00:11:33.039 --> 00:11:37.720 about a basic staple, basic necessary products that people have 150 00:11:37.759 --> 00:11:41.120 to get. Okay, the cost of all of those things 151 00:11:42.080 --> 00:11:48.519 is going up. Bread, even just bread, like loads of 152 00:11:48.600 --> 00:11:53.320 sandwich bread. My wife and I have noticed how crazily 153 00:11:53.360 --> 00:12:00.960 more expensive bread is, bread, milk, eggs, meat, The cost 154 00:12:01.039 --> 00:12:04.600 of meat nowadays, even just to get like ground beef, 155 00:12:04.960 --> 00:12:09.080 it's absurdly expensive, absurdly more expensive than it was three 156 00:12:09.159 --> 00:12:20.840 years ago to an extent that it's unavoidable. But some 157 00:12:21.000 --> 00:12:24.600 kind of price control is not going to be the answer. 158 00:12:24.679 --> 00:12:27.480 Some kind of price control you're going to force eventually. 159 00:12:27.519 --> 00:12:32.200 What price controls do? Government imposed price controls that aren't 160 00:12:32.240 --> 00:12:37.600 reflective of where the market is. Usually these market realities 161 00:12:37.639 --> 00:12:42.440 are reflective of something real. If you accept this fiction 162 00:12:43.039 --> 00:12:48.399 that Harris is perpetrating or perpetuating rather that people are 163 00:12:48.440 --> 00:12:51.360 spending more at the grocery stores because evil Costco and 164 00:12:51.399 --> 00:12:55.600 Evil Walmart and evil Save Martin, Evil Vaughans and evil 165 00:12:55.960 --> 00:12:59.240 you know, Kroger, whatever, that they're all price gouging you. 166 00:13:02.399 --> 00:13:06.879 If you accept that fiction, then sure price controls make sense. 167 00:13:07.120 --> 00:13:10.639 But if you live in reality and see that their 168 00:13:10.639 --> 00:13:13.480 profit margins are very narrow and the reason they're increasing 169 00:13:13.480 --> 00:13:18.840 their price has to do with factors outside of their control. Inflation, 170 00:13:22.440 --> 00:13:25.919 too much money in the economy, the purchasing power of 171 00:13:25.960 --> 00:13:33.840 your money is devalued. And I guess the Harris team 172 00:13:34.200 --> 00:13:37.240 is just trying to continue on with this idea. Oh, 173 00:13:37.279 --> 00:13:40.919 we've stopped it. We've stopped aggressive inflation. Inflation's only going 174 00:13:40.960 --> 00:13:44.159 up by two percent each year. Okay, it went up 175 00:13:44.240 --> 00:13:47.399 though way more than that. A couple of years ago, 176 00:13:47.440 --> 00:13:50.600 and we're still suffering the ill effects of it. It's 177 00:13:50.639 --> 00:13:53.679 like saying I've got my weight under control, because you know, 178 00:13:53.799 --> 00:13:58.559 in two thousand, I gained two pounds. In twenty twenty one, 179 00:13:58.840 --> 00:14:01.440 though I gained a pounds, and in twenty twenty two 180 00:14:01.480 --> 00:14:04.960 I gained another eight pounds. But twenty twenty three I 181 00:14:05.039 --> 00:14:06.960 only gained two pounds, and twenty twenty four I only 182 00:14:07.000 --> 00:14:10.320 gained two pounds. Yeah, I'm still way too fat. Okay, 183 00:14:10.360 --> 00:14:12.639 I'm still put on what is that fifteen to sixteen 184 00:14:12.679 --> 00:14:15.600 pounds over the last four years. I'm not as healthy 185 00:14:15.639 --> 00:14:19.960 as I was. I'm still fat. We're not reversing inflation. 186 00:14:20.039 --> 00:14:24.120 We're not making those prices go down. It's gonna take 187 00:14:24.159 --> 00:14:32.960 a long time to smooth this out, but government enforced 188 00:14:33.000 --> 00:14:40.200 price controls are not gonna be the answer here. When 189 00:14:40.240 --> 00:14:42.519 we return, we'll talk about a couple of other insane 190 00:14:42.559 --> 00:14:47.440 economic ideas from the Harris Camp subsidizing home purchasing and 191 00:14:47.480 --> 00:14:52.120 subsidizing demand rather than supply. That is next on the 192 00:14:52.200 --> 00:14:57.399 John Girardi Show. One of the things that's real characteristic 193 00:14:57.559 --> 00:15:01.399 of the Democrat's economic policy, and we see it reflected 194 00:15:01.519 --> 00:15:06.120 in a recent proposal by Kamala Harris. She's talking about 195 00:15:06.559 --> 00:15:14.120 giving new home buyers twenty five thousand dollars for the 196 00:15:14.120 --> 00:15:16.399 purchase of a new home, and this seems to be 197 00:15:16.399 --> 00:15:20.679 directly in response to critiques from JD. Vance, who, by 198 00:15:20.679 --> 00:15:23.799 the way, has been absolutely killing it. And I've been 199 00:15:23.960 --> 00:15:29.919 really enjoying his performance, as you know, the vice presidential 200 00:15:29.960 --> 00:15:32.679 candidate over the last several weeks. He's been incredibly active, 201 00:15:33.360 --> 00:15:37.919 incredibly aggressive. He's been the best surrogate Trump has had 202 00:15:39.080 --> 00:15:41.120 over the last few weeks or so. After a little 203 00:15:41.120 --> 00:15:43.200 bit of a rough start when he was introduced, I 204 00:15:43.200 --> 00:15:45.279 think he's actually shown himself to be a real asset 205 00:15:45.320 --> 00:15:53.679 to President Trump. Vance has been continually critiquing how difficult 206 00:15:53.840 --> 00:15:59.600 it is to purchase a home for young first time 207 00:15:59.639 --> 00:16:04.360 home buyers and making the argument that the Biden Harris 208 00:16:04.360 --> 00:16:10.759 policies have made it harder, that inflation has made it harder. 209 00:16:10.759 --> 00:16:14.600 Increasing home prices have been driven by lots of economic 210 00:16:14.799 --> 00:16:19.240 decisions made by the Biden Harris team. Now, I would 211 00:16:19.440 --> 00:16:23.519 probably say he is likely painting a slightly overly simplistic 212 00:16:23.559 --> 00:16:25.000 picture of this. I think there have been a lot 213 00:16:25.000 --> 00:16:27.159 of economic forces over the last thirty years that have 214 00:16:27.240 --> 00:16:32.080 conspired to make new home purchasing for millennials and Gen 215 00:16:32.200 --> 00:16:38.679 Z incredibly difficult, if not outright impossible, certainly much more 216 00:16:38.679 --> 00:16:41.759 difficult than it was for Baby Boomers when they were 217 00:16:41.759 --> 00:16:45.759 purchasing their homes. But as far as even as far 218 00:16:45.799 --> 00:16:50.279 as not even talking about inflation adjusted dollars, well, yes, 219 00:16:50.360 --> 00:16:54.480 actually talking about inflation adjusted dollars. The cost of a 220 00:16:54.519 --> 00:16:58.440 new home for Baby boomers purchasing homes in the seventies 221 00:16:59.720 --> 00:17:04.960 was much cheaper in real dollars of inflation adjusted dollars 222 00:17:05.680 --> 00:17:12.519 than it is for young people today. So Harris is 223 00:17:12.559 --> 00:17:15.680 feeling the need to respond to this critique from Vance, 224 00:17:15.720 --> 00:17:22.839 and she does this classic liberal reaction, which is, well, 225 00:17:22.880 --> 00:17:25.359 we can't. We're not gonna fix anything that's wrong on 226 00:17:25.440 --> 00:17:32.200 the supply side. We're just gonna subsidize demand. Subsidizing demand 227 00:17:33.400 --> 00:17:41.039 the ultimate liberal answer to everything. We're not going to 228 00:17:42.799 --> 00:17:46.200 make the cost of goods go down. We're gonna give 229 00:17:46.240 --> 00:17:51.519 you extra money, you know, like like the cod during COVID. No. No, 230 00:17:51.599 --> 00:17:54.599 we're not gonna let you actually work. We're just gonna 231 00:17:54.599 --> 00:17:58.920 give you all one thousand dollars. You know, We're not 232 00:17:59.000 --> 00:18:04.759 gonna help you actually earn more. No, we're just gonna 233 00:18:04.759 --> 00:18:08.920 give you a handout. We're not gonna fix the problem 234 00:18:08.960 --> 00:18:12.279 on the supply side. We're not gonna do stuff to 235 00:18:12.440 --> 00:18:16.240 make the real dollar value cost of home of homes 236 00:18:16.720 --> 00:18:20.359 go down, make it easier somehow to purchase homes by 237 00:18:20.640 --> 00:18:26.960 whether it's helping you have more earning power or having 238 00:18:27.039 --> 00:18:29.559 the actual costs of homes go down. No, no, no, 239 00:18:29.559 --> 00:18:32.319 no no. We're gonna subsidize the demand instead. We're not 240 00:18:32.319 --> 00:18:35.240 going to fix the supply. We're not gonna build more homes. 241 00:18:37.599 --> 00:18:39.400 We're not going to fix the supply side of it. 242 00:18:39.440 --> 00:18:43.200 We're going to subsidize the demand. We'll give you a 243 00:18:43.279 --> 00:18:48.079 handout to pay for demand. And that's the Democrat recipe 244 00:18:48.240 --> 00:18:51.319 for all kinds of things. In California, we have all 245 00:18:51.359 --> 00:18:58.279 these homeless people. We cannot build housing for them. It's 246 00:18:58.440 --> 00:19:01.240 way too expensive because California makes too expensive. Okay, do 247 00:19:01.319 --> 00:19:04.359 we amend our laws to make that less expensive. Nope, 248 00:19:05.240 --> 00:19:07.079 we just subsidize the demand. We'll just give you a 249 00:19:07.079 --> 00:19:10.440 bunch of government handouts for building quote certified California low 250 00:19:10.440 --> 00:19:13.599 income housing. You know, like we're we're trying to build 251 00:19:13.640 --> 00:19:17.640 that here in Fresno. We've got some big project that's 252 00:19:17.680 --> 00:19:21.960 going up near Blackstone and Shaw for a big low 253 00:19:22.000 --> 00:19:24.680 income housing unit. Each one of the units is going 254 00:19:24.759 --> 00:19:28.759 to cost four hundred and twenty five thousand dollars per 255 00:19:28.880 --> 00:19:33.079 unit to build. That's not low income housing. That's that's 256 00:19:33.160 --> 00:19:39.400 like my house costs. That probably costs around there. We 257 00:19:39.480 --> 00:19:41.960 bought it for less than that, but the probably that's 258 00:19:42.000 --> 00:19:45.240 what my house costs, you know, a nice decently sized 259 00:19:45.240 --> 00:19:50.640 house in Clovis. You know, we've heard stories about, like 260 00:19:50.680 --> 00:19:53.960 I think Riverside was building a low income housing unit 261 00:19:54.319 --> 00:19:59.519 cost them a million dollars per unit. And the only 262 00:19:59.559 --> 00:20:02.119 reason to developers can build stuff like that is because 263 00:20:02.119 --> 00:20:05.559 California is given them a subsidized, you know, taxpayer subsidized 264 00:20:05.559 --> 00:20:09.160 handout to build it. So we're not going to fix 265 00:20:09.440 --> 00:20:12.559 the supply side of it. We're just going to subsidize 266 00:20:12.559 --> 00:20:15.680 the demand. So Harris is saying, Okay, oh, we got 267 00:20:15.680 --> 00:20:17.720 a program for first time home buyer. We've got a 268 00:20:17.759 --> 00:20:20.240 program for home buyers. We'll give everyone twenty five grand, 269 00:20:21.039 --> 00:20:30.680 twenty five grand to buy their home. Without thinking through 270 00:20:31.559 --> 00:20:34.880 the idea, a twenty five thousand dollars subsidy for first 271 00:20:34.880 --> 00:20:42.680 time home buyers without thinking through, Hey, don't you think 272 00:20:42.720 --> 00:20:46.920 that maybe if you're giving a home buyer twenty five 273 00:20:47.000 --> 00:20:50.160 thousand dollars for a purchase of a home, that that's 274 00:20:50.200 --> 00:20:54.119 just going to lead to home sellers just pricing these 275 00:20:54.160 --> 00:20:57.359 homes more and more expensive, maybe about twenty five thousand 276 00:20:57.400 --> 00:21:01.240 dollars more expensive. If the seller no ohs that the 277 00:21:01.279 --> 00:21:05.440 buyer has twenty five thousand in effectively free money coming 278 00:21:05.480 --> 00:21:09.279 to him or her, why wouldn't they just jack up 279 00:21:09.319 --> 00:21:12.880 the price by that much. This is what colleges and 280 00:21:12.960 --> 00:21:16.119 universities have done for years. Again, another classic example of 281 00:21:16.160 --> 00:21:21.680 Democrats subsidizing the demand rather than fixing the supply. Here's 282 00:21:21.759 --> 00:21:26.000 colleges and universities with high tuition costs. The democrats solution is, well, 283 00:21:26.039 --> 00:21:28.799 we'll just give free money. We'll just give out more 284 00:21:28.799 --> 00:21:31.599 and more and more funny money student loans to more 285 00:21:31.640 --> 00:21:35.559 and more students, and we'll just continue to make it available. 286 00:21:35.599 --> 00:21:37.319 And then the colleges and universities look at the federal 287 00:21:37.359 --> 00:21:40.039 government doing this and said, okay, well will they give 288 00:21:40.160 --> 00:21:44.000 out if we set our tuition at fifty thousand dollars 289 00:21:44.000 --> 00:21:46.680 a year? Will the federal government give them loans enough 290 00:21:46.720 --> 00:21:49.440 to cover that cost? Yes, we will if we set 291 00:21:49.440 --> 00:21:51.680 our tuition cost at sixty thousand dollars a year, Will 292 00:21:51.720 --> 00:21:56.680 the federal government, you know, will the federal government fund 293 00:21:57.960 --> 00:22:01.519 student loans to account for a sixty thousand dollars per 294 00:22:01.559 --> 00:22:04.039 year tuition. Of course we will. Seventy thousand, of course 295 00:22:04.079 --> 00:22:06.640 we will. Eighty thousand, of course we will. That's why 296 00:22:07.680 --> 00:22:10.440 college tuition has gone up so much, because the federal 297 00:22:10.480 --> 00:22:14.279 government is feeding the demand, subsidizing the demand, not doing 298 00:22:14.319 --> 00:22:19.720 anything to address the supply side, not doing anything to 299 00:22:21.119 --> 00:22:27.039 have colleges and universities charge less for tuition, not addressing 300 00:22:27.079 --> 00:22:38.519 that problem. So it's a classic example. Harris is just 301 00:22:38.599 --> 00:22:45.920 doing example after example after example of either artificially setting 302 00:22:45.960 --> 00:22:50.359 price controls on the supply in ways that aren't addressing 303 00:22:50.400 --> 00:22:55.640 the actual economic reality, or just subsidizing the demand. It's 304 00:22:55.720 --> 00:23:01.400 completely inept economically, and I think it's just pandering. When 305 00:23:01.440 --> 00:23:04.480 we return more on the different factors that are making 306 00:23:04.720 --> 00:23:08.799 housing costs go up and why a twenty five thousand 307 00:23:08.759 --> 00:23:10.559 dollars handout is not going to fix that next on 308 00:23:10.640 --> 00:23:14.559 the John Girardi Show. So there are a lot of 309 00:23:15.000 --> 00:23:19.119 reasons why housing costs have gone up. Kamala Harris is 310 00:23:19.720 --> 00:23:22.640 trying to respond to jd Vance's critiques of this by 311 00:23:22.720 --> 00:23:25.880 talking about, well, here's a twenty five thousand dollars handout 312 00:23:25.960 --> 00:23:28.640 to new home buyers without thinking through, hey, don't you 313 00:23:28.640 --> 00:23:32.279 think home sellers are just going to price things about 314 00:23:32.279 --> 00:23:38.359 twenty five thousand dollars more expensive? Now? I saw kind 315 00:23:38.359 --> 00:23:41.400 of an interesting post by this author, Anthony Eaeselin, whom 316 00:23:41.480 --> 00:23:46.079 I like to read quite a bit, and he has 317 00:23:46.119 --> 00:23:51.880 an interesting little post about why are housing prices more? 318 00:23:52.079 --> 00:23:53.559 And he gives a lot of different reasons, and I 319 00:23:53.559 --> 00:23:56.160 thought a lot of them were interesting, and it's tough 320 00:23:56.200 --> 00:23:59.680 for us to think about. And I think the problem 321 00:23:59.759 --> 00:24:03.480 is so much of our public policy is so hyper 322 00:24:03.480 --> 00:24:08.240 focused on just a few different factors and sees only 323 00:24:08.319 --> 00:24:11.039 a few different solutions. Okay, well, we can't address you know, 324 00:24:11.160 --> 00:24:13.920 various kinds of environmental law policy in California because that's 325 00:24:13.960 --> 00:24:15.799 kind of a sacred cow that we don't want to touch. 326 00:24:16.359 --> 00:24:18.920 So you know, if we do, then the Sierra Club 327 00:24:18.960 --> 00:24:20.839 will get mad, and big Democrat donors who fund the 328 00:24:20.880 --> 00:24:23.519 Zerra Club will get mad. So so we won't address that. 329 00:24:23.559 --> 00:24:26.960 So we'll just do something that we'll just feed the demand. Okay, well, 330 00:24:27.119 --> 00:24:30.559 we'll just give more you know subsidies for first time 331 00:24:30.559 --> 00:24:35.799 home buyers without realizing giving more subsidies to first time 332 00:24:35.839 --> 00:24:39.440 home buyers is just feeding the beast. That's just going 333 00:24:39.480 --> 00:24:42.319 to prompt people to price it up more and more 334 00:24:42.359 --> 00:24:44.160 and more because they know that they've got this supply 335 00:24:44.200 --> 00:24:49.119 of ready money. Now, here's a lot of the different 336 00:24:49.119 --> 00:24:54.799 factors for why people want bigger houses, why housing is 337 00:24:54.839 --> 00:25:01.759 so expensive. So the first is shifting trends in American 338 00:25:02.960 --> 00:25:07.680 social life. There's been a shift over the last thirty 339 00:25:07.759 --> 00:25:11.319 years of people wanting bigger, wanting houses that are bigger 340 00:25:11.880 --> 00:25:17.359 per person, okay, wanting a bedroom for every kid, wanting 341 00:25:17.440 --> 00:25:25.559 lots of bathrooms. Household sizes, though, are smaller, so you 342 00:25:25.680 --> 00:25:32.960 have more buyers for roughly the same population. Maybe forty 343 00:25:33.039 --> 00:25:38.160 years ago you had bigger family sizes, the population didn't 344 00:25:38.200 --> 00:25:43.680 grow that much, but the number of buyers grew tremendously, 345 00:25:44.079 --> 00:25:48.119 So the number of households increased, but the total population 346 00:25:48.240 --> 00:25:53.640 didn't increase that much. The number of buyers just increased 347 00:25:54.039 --> 00:25:57.920 disproportionately to the population as a whole. So you have 348 00:25:58.200 --> 00:26:04.000 more buyers for roughly the same amount of people, so 349 00:26:04.039 --> 00:26:06.319 you need more houses. So that's putting a strain on 350 00:26:06.359 --> 00:26:11.319 the need for more houses, more demand cost goes up. 351 00:26:13.680 --> 00:26:16.359 Related to that, you have more single people. You have 352 00:26:16.480 --> 00:26:21.640 a lot more unmarried adults today. Later and later and 353 00:26:21.720 --> 00:26:24.480 later on in life, people are getting married later. People 354 00:26:24.519 --> 00:26:29.400 are staying single at higher percentages than they were thirty 355 00:26:29.440 --> 00:26:38.039 years ago. More single people equals more households, more separate households. Okay, 356 00:26:38.200 --> 00:26:42.160 you've got you know, two thirty year old single people 357 00:26:43.279 --> 00:26:48.400 as opposed to a married couple who are both aged thirty. Well, 358 00:26:48.680 --> 00:26:50.799 the married couple age thirty would buy one house, and 359 00:26:50.880 --> 00:26:52.920 the two single thirty year olds they're buying two houses. 360 00:26:55.880 --> 00:27:00.440 Zoning laws. Zoning laws prevent a natural and healthy variety 361 00:27:00.480 --> 00:27:04.240 of houses and businesses to occupy a neighborhood. So all 362 00:27:04.319 --> 00:27:08.279 kinds of zoning regulations within American municipalities restrict the ability 363 00:27:08.319 --> 00:27:12.880 to build multi unit dwellings over here. That's the great 364 00:27:13.559 --> 00:27:18.480 bugaboo of nimbiism, not in my backyardism. We don't want 365 00:27:18.480 --> 00:27:22.559 to have a mixture of businesses and housing. The idea 366 00:27:22.599 --> 00:27:28.480 of building it's rare to see, you know, apartment complexes 367 00:27:28.480 --> 00:27:37.000 built on top of storefronts anymore. So we have zoning 368 00:27:37.039 --> 00:27:39.880 that really restricts the kinds of building we can do. 369 00:27:39.920 --> 00:27:41.680 It's like, Nope, this is commercial over here and this 370 00:27:41.759 --> 00:27:44.799 is residential over here. No, it can't be mixed commercial residential, 371 00:27:45.880 --> 00:27:54.240 et cetera. Social dysfunction. Social dysfunction causes generally responsible people 372 00:27:54.880 --> 00:27:58.680 to flee from the generally irresponsible, which makes everything worse, 373 00:28:03.119 --> 00:28:06.680 not just different neighborhoods, but separating themselves on the basis 374 00:28:06.680 --> 00:28:09.559 of school districts, et cetera. School districts play a huge 375 00:28:09.599 --> 00:28:16.079 part in this. So the distinctly American set up for 376 00:28:16.240 --> 00:28:19.480 how our public schools work. And it's so funny to 377 00:28:19.519 --> 00:28:25.079 me how by the way, liberals who crow about the 378 00:28:25.079 --> 00:28:29.119 importance of public schools and how bad homeschooling is because 379 00:28:29.119 --> 00:28:35.400 it's abandoning this very important public, civic institution of public schools, 380 00:28:35.440 --> 00:28:38.720 and they decry sort of the elitism of sending kids 381 00:28:38.759 --> 00:28:46.839 to private schools or fail are similarly the people most 382 00:28:47.000 --> 00:28:56.759 opposed to, you know, school choice measures vouchers letting families 383 00:28:56.880 --> 00:29:01.279 choose which school district to go to, as opposed to Nope, 384 00:29:01.319 --> 00:29:04.200 you geographically live in this district, you gotta go to 385 00:29:04.279 --> 00:29:07.720 this district. Sorry, No, if sands or butts, you're locked 386 00:29:07.720 --> 00:29:12.440 into this geographic location. It's the very same liberals who 387 00:29:12.480 --> 00:29:15.559 get upset at sort of you know, the north south 388 00:29:16.200 --> 00:29:19.480 economic divide that we see in Fresno. Why do you 389 00:29:19.519 --> 00:29:22.400 think there is a north south economic divide? It's largely 390 00:29:22.440 --> 00:29:27.400 because of this set up, the lack of school choice 391 00:29:28.079 --> 00:29:32.680 in the Fresno area. The fact that California doesn't have 392 00:29:32.720 --> 00:29:35.799 school choice options, doesn't have vouchers, doesn't give parents the 393 00:29:35.799 --> 00:29:39.799 freedom to take a voucher, take their kids education money, 394 00:29:40.759 --> 00:29:43.119 and use it to go to either a private school 395 00:29:43.200 --> 00:29:45.720 or a school in Clovis Unified versus a school in 396 00:29:45.720 --> 00:29:51.720 Presne Unified. That has led to the growing divergence in 397 00:29:51.839 --> 00:29:54.359 quality between Clovis Unified and Fresney Unified. As far as 398 00:29:54.359 --> 00:30:00.160 economic outcomes, that is precisely what's fed that beast. So 399 00:30:00.319 --> 00:30:04.200 these local liberals who get so upset about, you know, 400 00:30:04.279 --> 00:30:07.599 the North south econ, you know, socioeconomic divide, what do 401 00:30:07.640 --> 00:30:10.319