Stop the rate of Technology Progress and if you just ask about what technology does its close to remove labor right thats why we use it no company ever goes and builds technology it increases technology so that their costs go out or their market share in a cigar they use it to reduce labor and they use it to buy the fund and whats happening is is you have the Work Technology moving at an exponential pace driving rate driving prices down and governments all around the world are caught in an inflationary trap that they created of themselves out of Monetary Policy fighting against force and i would ask a simple question. Isnt it good when the value of your money goes up and prices go down like for you personally and so so if we could see that could be a good thing and that means we could work less time in the abundance from technology would be broadly distributed instead of being concentrated like it is today i caught something that much i want to focus on this big ben read your book and ive talked to a couple times and you emphasize that the transition to a deflationary economy i think thats key because we had to flesh or economy back in the 1800s or so under a cult standard which was a very productive era and it worked wonderfully to kape kind of a check and balance on world trade but then there was a transition to see a money system or an inflationary system that was a bandaid and kept adding more bandaids onto an underlying structural problem and that was budget deficits and political. Problems and all these were papered over with more money and now were going back to hard money to try to get out of the problems of the paper money so its a transition that that tells us its like the old joke you know if you fall off a cliff and the 1st 1000 feet are no problem its the last foot that kills it right so its that transition to coming out of this inflationary prices is that my question my question is do we absolutely have to come out of this paper money inflationary period why cant it just go on forever its not going to go on forever no matter what and and and look people in any country say ok we can do this in our country if you if you follow this extensively so so if you but if you start with the emmy empty crowd or the debt doesnt matter crowd it doesnt matter until it does one giant saying that mass is serious tumour a reserve currency goes on forever right. And you could just keep printing and people keep trusting your currency and and i love to use this thought experiment for that reserve currency and this thought experiment isnt that far from a thought experiment it might be real what if a country lets say china created a currency and decided to keep on printing forever and use that currency and it didnt change in value and they used it to buy the worked about everything all the assets and then they decided ok we have the assets no lets default on our currency. Would we trust that currency as they were doing and and so you can see through that thought experiment that if you just keep on printing money people lose faith in your currency and nobodys going to choose and so you dont have a reserve currency anymore so theres a whole bunch of people that like i think are brainwashed in this debt doesnt matter that this can go on forever and and its going to happen gradually im not saying that the u. S. Currency is going to fail tomorrow but it is going to gradually gradually gradually we are already past the point arrest it is going to if there is nothing that can stop this rather than we are going to have to flashing for sure because structurally technology requires. The path to get to deflation could end up through hyperinflation 1st im currency d. Fault debt default it could have been a whole bunch of different ways but we are going to have deflation in the end of course its the reserve currency of the us dollar that cannot print and just buy up all the assets which theyve been sent assets and goods and services by the way for just printing out free money but i it did remind me when you were saying that of switzerland which over the past 3 or 4 years has just been printing swiss francs and buying up apple and other corporations so some on the edge can get away with this but what about its so you believe that technology is constantly inventing and were getting to the point where robots ai Virtual Reality all this stuff will displace a lot of workers but how does the money get distributed by how does the Wealth Creation of those robots will those robots decide to keep it for themselves and sell their goods and services to other robots like how do people who used to be workers how do they. Get some of this wealth thats the point they cant in an inflationary environment its in part its impossible and so whats happening is if the concentration of wealth because because youre fighting a Natural Force capitalism cant work right so that so effectively the government is the market today free market free free market principles dont work anymore the government is it becomes the entire market whether its u. B. I. All of these things to try to get people to pay more is more drain more government in both and business which means you stop letting things fail and there is no pricing mechanism and couples thats whats happening today thats actually why and its so hard to comprehend because deflation is a weve never seen that in our lifetimes weve never seen where what if next year everything around you got cheap. What if you purchase a new suit it all it does is increases the value of your savings and decreases the value of your assets right at the end so as jobs came out of the market the the people wouldnt fall so far actually a follow on on what were talking about right now when government just printing right now why do you think the top 5 companies the Technology Companies are setting historic us why because money is racing to Technology Companies and Companies Need to kick the only way they compete is to remove labor faster so in an in a crazy in a crazy way. Central banks are trapped in the same thing they created and by and by printing more Everybody Knows that thats why the s. And p. Is so far theyre racing into the only thing thats a fair store value it might be overvalued right now but in a relative story going thats why the stock prices of the Technology Companies are raising ever higher because they take labor away faster right i think we can tease out a couple of points here so your point about why wouldnt it be nice to have things cost less next year you know whats all whats bad about deflation so you know the the kind of the counterargument to this is that the reason we have inflation sensibly is due to the credit cycle and that the ability to borrow money is important to get entrepreneurial projects off the ground for companies to expand for cap ex and so to have the ability and deflation of course that imply that youve got credit contraction so therefore credit becomes harder to come by and you dont have that expansion that associated with a credit cycle and so you would have you know less money in your pocket type theres another associate large cycles in play here but to tease this out a little bit more when you apply what youre saying to the currency itself it starts to make more sense because youre saying that what if the currency were deflationary lets say pickling for example or gold is moderately inflationary its not inflation around the same then you can still have your credit expansion but based on an underlying story value right so its comes down jeff to actually putting these arguments to money itself right 100 percent 100 percent there is no reason you couldnt predict in a deflationary environment theres no risk its just saving become more valuable and. If im going to take if im going to take my savings and loan those savings to somebody else im going to want to return on my money and im going to need to understand the lifetime value of that return on my on my money so that money is getting more and more valuable and so i need to have a good return on that so on on that money its just but the problem is what youre what youre saying is in an inflationary world where weve always lived the transition is proved because if you allow the placement to happen. The dept goes up say gets more expensive exponentially more expensive and so governments are trying to sell it and they they created the mess as inflation is a central banking phenomenon that created the mess Technology Sector technology has moved it used to be demographics china china doing manufacturing that was all. The place in or in place and technology has moved to the number one wave bigger and thats the most its the biggest impact of displacement coming forward and were still looking backwards at. And central bankers like how many people are talking about this how big big an impact this is theyre still talking about their historical models and what can happen it doesnt it actually all of this doesnt matter its going to happen anyways because technology is a bigger force in our life in fact every single thing that youre using my im using this to meeting this Everything Else were celebrating to play ssion in everything we use from your phone to to google searches to Everything Else so its just its going to be impossible to start a riot he well the book is the price of tomorrow jeff booth is the author robin to take a break and when we come back pick it up where exactly is this robot rebellion going stay right there. In the. As the u. S. Economy was booming growing numbers of people were made homeless. You can work 40 hours in a week and still not have enough to get housing everybody believes america still has the lead up to the reality of those who were not financially quality and the lack of Affordable Housing for a living minimum wage gave many people new choice though theres been a problem with the city knows turn to richard and told me stay away oh miss colton the food if there is no answer because yes that requires resources the most vulnerable are abandoned on the streets to become the invisible cops. So what weve got to do is identify the threats that we have its crazy confrontation let it be an arms race is on off and spearing Dramatic Development only mostly im going to resist i dont see how that strategy will be successful very critical time time to sit down and talk. Illustrations but its put to rest and not just get up but just tell the speech that im. Eat eat eat food for sure how much more im going to pitch a slow ball on. The. Hospital visit. Did. You push the monsignor tom hartman or some. Welcome back to the kaiser report Summer Solutions on max casual stays there but were talking with jeff who thinks the author of the price of tomorrow why deflation is the key to an abundant future sounds good well get to that in a minute but i kind of want to pick up on were been talking about just you know the Industrial Revolution and even the 1st part of the information revolution capitalism d kind of has 2 main koester imports now the labor and material but were in the 2nd half of the information revolution now the Network Information revolution and the cost of material is going down to 0 and thats when you see what youre talking about here deflation is that the basic components of the information economy whether its band with Processing Power or digital storage the costs are all going down to 0 so that puts everything upside down and flips it on its head and then you have this idea what happens to labor then how do you compensate labor if youre mitt basic materials free electrons or free and so then it becomes a tech not for see you have people that can manipulate those free electrons and extract wealth from the masses as we say in the Big Tech Companies google Apple Microsoft facebook they get the users to build their platforms for them and they can scale just add another server and now theyre you know 100 worth a trillion 1. 01 half trillion dollars and so thats a structurally its a structural problem that nobody saw coming what youre saying in your book is d. People dont understand this aspect to it because they are thinking backwards theyre thinking about the duster revolution even the information revolution and now but they just dont understand it so and obviously policy makers dont understand it politicians dont understand it. Is it if its going to be as its going to envelop the economy and were going to look back and to say well we just enact fast enough we never we dont we dont get it i mean i dont see how anyones going to really be able to act in it and be a proactive jap i think are just going to be swept away by this one thing its why i wrote the book because nobodys saying it coming they couldnt put 2. 00 and 2. 00 together and in the same exact qualities that theres hearings today about the monopolies. And and and in the hearings in the policymakers have no idea that theyve created the monopolies faster. By by printing money theyre concentrating wealth faster instead of the well if you had a functioning capitalists system without my good with hard money what would happen is as things priced to 0 great entrepreneurs would come in and keep on working right to try to find where theres a marginal return and prices would keep falling and that would mean that the abundance from technology would be broadly shared our time is the most valuable thing that in our lives and what weve done to buy advice by. Staying on the system is weve taken a giant parts of the property lation that are working countless hours to keep up with count it with a surprising place and that is this created by central bank bangs and robbed them of their time so theyre spending 4080 hours a week working on a mostly 0 to try to save enough money to buy a house well there are all the real wages are going down in value and houses are running away and price so that they can retire for the last 10 years of their life in relative safety. Thats why theyre working so hard. And and and and if you just inverted it and allowed Natural Forces to happen our time would be more valuable because the bride he would it would necessitate a broad sharing of the technological technological abundance just society thats exactly what would happen but its really hard to see max its really hard to see stacy because it challenges all of our preconceived ots it challenges everything because weve never seen it before lets return to the workers because we have a situation unique at the moment and modern history as well which is a pandemic and the vast majority of the population is at home and theyre actually making more money now 75 percent of workers in america than they did before the pandemic when they actually had to go out and toil in labor so now theyre at home theyre earning more maybe they dont want to return to work because why would you want to sit in traffic jams and go to a horrible Office Building on in some suburb when you could say home make more money hang out with your family is this like the beginning of what is called universal basic income u. B. I. That says this saves on the far end of Socialism Communism in the in the e. B. I. Is a function and nobody is looking at the u. B. I. And how do you pay for u. B. S. Its magical money oval print more money so the loops back to it loops back to the same problem right the the and the yes people will want to act people will people will demand it because why those people have all the wealth in the way they are and theyre going to demand their politicians to say pay me at home but again it comes back down to. Its not reasonable theres no way to create without destroying your currency there is no way to actually pay for that without it so all of these solutions that people are talking about are more access point more bandaids on a systematic structural change has to take place and and if they can kids and so were really trying to stop is a revolution right but theyre making the revolution more more likely making war revolution more likely with every step along the way lets look at this in terms of solutions right so when youre describing a situation where the cost materials the guns theyre out and the value added is being created by people are people on social media who are working for free rights of labors free to giving free hours and then that because the technology is free to build out the social media platforms they get a free ride thats why youve got multi 100 billionaires and an emerging peasant class thats why you get this incredible gap opening up in society because of this odd as you point out the book is kind of like a unforseen crack in in reality almost that suddenly the cost of doing business goes to 0 right that would never be considered then we never had negative Interest Rates right this is all everything is brand new they never had a negative oil price its all happening strangely ok so being entrepreneurs like we are theres gotta be a way to. Get in there and figure out how to rectify this theres got to be a solution so heres my solution heres my proposal is that for the Big Tech Companies one area thats possibly we could rebalance the solve thing is in the area of intellectual property copyrights and patents over the past 50 years hollywood has its lobby for perpetual copyright used to be limited to 17 years and now its basically lifetime plus 70 years or perpetual copyright they the free stuff in the Public Domain all intellectual property comes from the Public Domain it has a monopoly value temporaries supposed be temporary and then is supposed to return to the Public Domain but with the current copyright laws in place now that material stays behind a corporate firewall now would it be possible to rebalance this economy by making these corporations actually pay for an optional property rollback ip laws back to 17 years and then it all goes back to the Public Domain thats my proposal ive been saying this for years Lawrence LessigStanford