Why Young People Are Worse Off Than Their Parents — and What To Do About It | Scott Galloway | TED

Challenges Facing Young People Today

• Scott Galloway, a professor at NYU and a successful entrepreneur, presents a Ted Talk about the challenges facing young people today.
• He argues that young people are worse off than their parents, with lower purchasing power and less opportunity for prosperity.

The Breakdown of the Social Contract

• Galloway highlights the breakdown of the social contract, where younger generations are no longer doing as well as their parents did at the same age.
• He attributes this to factors like stagnant minimum wage, skyrocketing housing costs, and a lack of value placed on young people's labor.

The Growing Anger and Resentment Among Young People

• Galloway emphasizes the growing anger and resentment among young people, leading to social unrest and movements.
• The speaker argues that young people are worse off than their parents due to various factors, including rising rates of obesity, drug overdose deaths, and deaths of despair.

The Transfer of Wealth

• The cost of housing has significantly increased, with the average home price rising from $290,000 to $420,000. This increase is partly attributed to the weaponization of government by incumbents and asset owners, who make it difficult for new entrants to acquire assets, thereby increasing their own net worth.
• This transfer of wealth has resulted in a significant shift in household income, with people over 70 controlling 19% of household income, while those under 40 control only 12%.
• The author argues that there is a purposeful transfer of wealth from younger generations to older generations, citing Social Security as an example.
• He criticizes the system, stating that Social Security is not a social program but a transfer of wealth from young to old, and that 80% of people have no reason to take it.
• The author concludes that the transfer of wealth has been purposeful, with corporations and the ultra-wealthy accumulating more wealth while the average person struggles to acquire assets and achieve financial stability.

The Cost of Higher Education

• The cost of higher education has also risen dramatically, making it less accessible for many. This is due to the "luxury" embraced by higher education institutions, which prioritize increasing compensation and reducing accountability.
• The author argues that higher education institutions, like Harvard, have become "hedge funds offering classes" by artificially constraining supply to create scarcity and raise tuition faster than inflation.

Solutions to the Challenges

• The author proposes a solution where the government provides funding to public institutions to reduce tuition, expand enrollment, and increase vocational certifications and non-traditional degrees.
• The author emphasizes that the purpose of higher education is to provide opportunities for the "unremarkable" to become "remarkable," not to create a superclass of billionaires.
• The speaker highlights the decline in young people's desire to have children, with only 27% of those aged 30-34 having at least one child, compared to two-thirds in previous generations.
• The speaker emphasizes that the United States has the resources to address these issues, but lacks the political will to implement necessary changes.
• He proposes several solutions, including increasing the minimum wage, reforming the tax structure, reforming Social Security, eliminating the capital gains tax deduction, and breaking up tech monopolies.
• He also advocates for universal pre-K, reinstating the expanded child tax credit, term limits for elected officials, income-based affirmative action, and investing in mental health services and community programs.
• The speaker concludes by asking the audience if they truly love their children, implying that addressing these issues is essential for their well-being and prosperity.

The Government's Role

• He criticizes the government's response to the COVID-19 pandemic, arguing that it exacerbated the wealth transfer by bailing out older generations while letting the markets crash, which benefited older investors.
• He argues that the government's actions have robbed younger generations of opportunities for disruption and wealth creation.
• Galloway argues that the current generation of young people is worse off than their parents due to a lack of forward-leaning investment by the government.
• He cites the quote by U Michael KN, "Hard times create strong men, strong men create good times, good times create weak men, weak men create hard times," to illustrate the argument that prosperity can lead to a lack of long-term thinking.
• Galloway points out that the US government, through its investments, has been a key driver of innovation and wealth creation in the past, but this is no longer the case.
• He criticizes the current political climate, where both Republicans and Democrats prioritize short-term gains through reckless spending, leading to a situation where young people are burdened with debt while the wealthy benefit.

Social Media and Its Impact

• He expresses concern about the negative impact of social media on young people, citing rising rates of self-harm, depression, and declining sexual activity.
• Galloway recognizes the potential benefits of social media for marginalized groups, particularly LGBTQ+ youth, but expresses concern about the negative impact of online bullying and the increased risk of self-harm among teenagers.
• Galloway supports the Jed Foundation's efforts to address the epidemic of self-harm among teenagers and believes that further research is needed to determine the overall impact of social media on young people.
• Scott Galloway argues that while social media can have negative impacts on young people, especially those under 16, the benefits outweigh the drawbacks. He suggests that we should invest in after-school programs and "third places" to provide alternative activities for young people.
• Galloway believes that social media, particularly TikTok, is harmful to young people and should be banned or divested. He argues that TikTok is a propaganda tool that promotes negativity towards America.

The Financialization of Everything

• Galloway suggests that the financialization of everything has led to a focus on personal gain rather than collective good, and the lack of external threats has diminished the sense of patriotism and selflessness that motivated past generations.
• Galloway addresses the question of whether the recent rise in stock prices, particularly for companies like Nvidia, contradicts his earlier argument about opportunities to buy undervalued stocks. He explains that the current economic system favors capitalism on the way up and socialism on the way down, leading to cronyism.
• Galloway criticizes the practice of corporations using free cash flow for dividends, stock buybacks, and executive compensation, only to seek government bailouts during economic downturns. He believes this is a form of cronyism.
• The speaker argues that the current economic system is artificially inflating markets by using the credit of young people, which is a transfer of wealth from the young to the old.
• He believes that the markets need natural cycles of disruption and that the current approach of bailing out markets with government intervention is unsustainable.
• He suggests that those who have benefited from government stimulus should pay it back to ensure fairness.

The Need for Reform

• Galloway argues that Social Security needs to be reformed to be more equitable for younger generations. He suggests means testing and raising the age of eligibility to reflect longer lifespans. He points out that the current system disproportionately benefits older, wealthier individuals, with a cap on Social Security contributions for those earning over $160,000.
• Galloway criticizes the current allocation of government spending, with 40% going to senior programs, which he believes crowds out investments in education and technology. He argues that the increasing cost of healthcare for the elderly is unsustainable and will hinder economic growth.
• He advocates for a federally mandated minimum wage of $25 per hour, arguing that it would stimulate the economy by increasing spending among low- and middle-income earners. He acknowledges that this would negatively impact some businesses but believes the benefits outweigh the costs.
• Galloway proposes that minimum wage should be linked to the rate of capital appreciation to address the growing inequality.
• Galloway acknowledges the challenges of reforming Social Security but believes that a middle ground can be found to ensure its sustainability and fairness for future generations.

The Obesity Epidemic

• Galloway addresses criticism regarding his comments on diabetes, acknowledging that it is a complex issue with genetic and environmental factors. He reiterates his belief that increasing the financial resources of lower-income individuals would allow them to make healthier food choices.
• Scott Galloway argues that the rise of obesity is directly correlated with the success of companies like McDonald's, PepsiCo, and Coca-Cola. He criticizes these companies for profiting from obesity and promoting unhealthy lifestyles.
• He believes that the "diabetes industrial complex" benefits from keeping people obese, as it leads to increased demand for medical treatments like hip replacements and kidney dialysis.
• Galloway advocates for the wider use of GLP-1 drugs, which he considers a game-changer in weight management, and believes they should be made more accessible to low-income communities.
• He criticizes the current trend of celebrating obesity as a form of personal liberation, arguing that it is a serious health issue that needs to be addressed.
• Galloway acknowledges the importance of respectful dialogue about sensitive topics like obesity and mental health, but emphasizes the need to confront difficult truths and avoid ignoring scientific evidence.

The Importance of Political Action

• The speaker encourages young people to get involved in political action, support candidates who address the deficit and the "war on young people," and participate in local initiatives that benefit young people.
• He emphasizes the importance of creating opportunities for young people to connect and combat loneliness.
• He calls for a leader who will prioritize the needs of young people, even if it means alienating older generations, unions, and wealthy individuals.
• He believes that young people are ready for a leader who will address the deficit and make tough decisions, even if it means raising taxes or cutting government spending.
• He refutes the notion that young people are primarily concerned with issues like the Middle East, arguing that the deficit is a top concern for them.
• He criticizes the media's portrayal of young people as overly politically active, stating that the majority are focused on their studies and personal lives.

The Plight of Young Men

• Scott Galloway argues that we need a pragmatic approach to address issues like tax policy, the deficit, teen depression, and obesity. He believes that we need to make sacrifices similar to those made by previous generations.
• He emphasizes the dire situation facing young men, who are four times more likely to commit suicide, three times more likely to be addicted, and 12 times more likely to be incarcerated compared to other groups.
• Galloway highlights the significant progress made by women globally, with more women pursuing higher education and holding political positions. However, he points out that young men in the US are facing a decline in their socioeconomic status, with more single women owning homes and out-earning single men.
• He criticizes the lack of empathy and support for young men, arguing that we need to change the narrative and recognize that empathy is not a zero-sum game.
• Galloway expresses concern about the declining rates of marriage and childbearing, attributing it to the shrinking pool of men available for relationships. He emphasizes the importance of a vibrant middle class with successful and emotionally stable men for the nation's well-being.
• He calls for a more honest conversation about gender differences and the challenges facing young men, arguing that we need to move beyond political correctness and address the real issues.
• Galloway concludes by stating that the well-being of young people, especially young men, is crucial for the future of the nation and its economy. He believes that addressing these issues requires a collective effort and a willingness to have open and honest conversations.

The Impact of Galloway's Ted Talk

• Chris Anderson, the host of the TED Talk, praises Scott Galloway's unique and powerful rhetoric, noting that it's unlike any other he's encountered.
• Anderson highlights the careful choice of words and the consequential flow of Galloway's speech, which he believes taps into a different part of the audience's brains.
• Anderson acknowledges that not everyone will agree with every point Galloway makes, but he emphasizes the importance of the topic and the impact of Galloway's message.
• Galloway expresses gratitude for Anderson's kind words and credits his newfound visibility to TED.
• Galloway suggests that listeners engage with his work through his podcasts, "Pivot" and "Prof G," his newsletter "No Mercy No Malice," and his book "The Algebra of Happiness."
• Scott Galloway received overwhelmingly positive feedback on his TED talk, with many people reaching out to him with support and offers of help.
• He did receive some pushback, particularly regarding his comments on Social Security and his criticisms of older generations.
• Galloway acknowledges that he may be wrong about some of his points but emphasizes that his goal is to spark conversation and find solutions.
• He believes that the TED platform fosters a more civil and respectful dialogue compared to other platforms like Twitter.
• Galloway sees a growing movement to expand access to higher education, particularly at elite colleges, and to invest more in vocational programs.
• He believes that the statistics highlighting the disparity between staff and faculty at institutions like MIT have spurred action from universities like ASU and Purdue.
• He also mentions that there is discussion in Congress about potential changes to the tax system, including eliminating capital gains tax or implementing a single income tax.