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From YouTube: Summit Webinar | U.S. Economic Outlook
Description
The U.S. economy has been relatively strong the last few years, but will it last? Hear a national economist discuss the strengths and weaknesses of the current U.S. economy, where the economy is headed, and what it could mean for state finances.
A
Our
speaker
today
is
dr.
Christopher
Thornburg
Christopher
Thornburg,
founded
Beacon
Economics
in
2006.
Under
his
leadership,
the
firm
has
become
one
of
the
most
respected
research
organizations
in
California
serving
public
and
private
sector
clients
across
the
United
States
in
2015.
Dr.
Thornburg
also
became
director
of
the
UC
Riverside
School
of
Business
Center
for
economic
forecasting
and
development,
and
an
adjunct
professor
at
the
school,
an
expert
in
economic
and
revenue,
forecasting,
regional
economics,
economic
policy
and
labor
in
real
estate
markets.
Dr.
Thornburg
is
consulted
for
private
industry,
cities,
counties
and
public
agencies.
Dr.
B
Very
nice
to
be
here,
I
have
number
talks
for
and
CSL
before,
although
this
is
my
first
time
speaking
at
one
of
the
big
events
given
that
you
are
about
six
miles
due
east
of
my
office
here
in
Los
Angeles,
so
I
should
say
now.
I
welcome
my
session,
but
welcome
to
my
city,
hopefully
enjoy
your
time
here
and,
of
course
about
here
to
talk
too
much
about
Los,
Angeles,
specifically
I'm,
here
to
talk
a
little
bit
about
the
national
economy.
What's
going
on
out
there.
B
Surely
this
is,
to
say
the
least,
an
interesting
time
that
we
live
in.
Did
you
think
about
that
comment?
When
I
said
they
were
interesting
to
me?
You
know
over
the
past
decade
now
from
the
beginning
of
the
Great,
Recession
and
I,
actually
sort
of
maybe
from
my
name
for
myself
prior
to
the
Great
Recession,
because
I
was
one
of
the
few
economists
here
in
the
West
Coast
who
are
actually
saying
that
things
are
bad
and
we
were
going
to
be
tipping
into
a
major
downturn.
That's
what
taught
for
brief
time.
B
Because
you
know
the
contrast
between
now
and
then
I
think
is
very
acute
because
then
we
wait
despite
the
fact
that
we've
scratched
away
the
statistics,
you
saw
all
sorts
of
huge
problems
happening
underneath
today.
To
be
honest
with
you,
I'll
give
the
upfront
honest,
assumes
the
exact
opposite.
We
live
in
a
time
of
political
hysteria
when
this
Graduate
the
surface
turns
out
the
economy
is
about
as
good
as
you
could
possibly
hope
for
in
as
much
as
that
contrast
means
something
that
1012
years
ago,
the
problem
lies
today.
B
B
B
The
answer
is:
this:
expansion
is
so
long.
It's
pretty
clear,
we're
going
to
have
a
recession
any
minute.
Now
you
can
predict
the
recession
by
simply
counting
the
number
of
months
in
the
current
expansion.
No
it's
more
complicated
than
that.
Now
it
is
the
next
recession
going
to
occur
general
next
recession.
Well,
this
just
lay
about
a
few
days.
B
B
B
Recession,
this
expansion
would
actually
there's
no
reason,
and
so
this
one
you
can't
predict
so
that's
still
pretty
good
news
now.
Is
that
mean
it's
all
great
news
and
the
answer's?
No,
there
are
some
breaks.
There
are
some
imbalances,
starting
to
form
in
our
economy
things
you
need
to
pay
attention
to
what
are
the
shortages
all
having
a
big
impact
on
our
economy
right
now
and
that's
funny,
because
we
continue
to
be
stuck
in
this
2010
rhetoric.
It's
all
about
jobs,
jobs,
jobs.
No,
it's
not.
B
In
fact,
there
are
we're
wondering
workers
and
that's
every
year
impact
on
our
economy,
the
county
board
growth.
Without
recent
market
volatility
rise
in
long-term
life,
we
have
an
aggressive
fermentation
they're.
Pushing
of
those
claps
in
the
yield
curve
course
left.
Sharp
growth
and
government
deficits
only
occur
in
the
course
in
this
year
and
next
year,
largely
because
of
the
result
in
fiscal
stimulus
and
then
last
but
not
least,
is
global
trade
and
security
Royse,
particularly
as
of
course
ago,
we
go
through
these
really
sort
of
trade
negotiations.
B
Infrastructure,
why
is
wealth
inequality,
healthcare,
cost
inflation,
pension
entitlement
reform,
all
things
that
are
critical
for
our
nation
to
get
in
front
of
now,
and
we're
not
is
not
in
any
conversation
about
these
things
and
for
me
this
is
very
worrisome
because
need
to
focus
on
that.
The
true
challenges
are,
but
we're
not
repairing
attention
to
the
wrong
things.
So
here
are
the
numbers
coming
from
us.
Just
talk
about
GDP
four
point:
one
percent
growth
in
the
second
quarter-
good
memory-
there's
no
doubt
about
it.
Was
it
a
spectacular
member.
B
B
B
Economy
down
to
the
big
collapse
in
oil
prices,
big
sort
of
exploration,
with
a
big
bond
that
we're
seeing
right
now
is
also
on
the
basis
of
commodities
and
that
money
over
the
course
of
last
year,
13
percent
in
terms
of
his
output,
that
was
the
majority
of
the
big
surge,
their
utilities
up
about
5%
manufacturing
only
about
2
percent,
so
manufacturing
moving
again,
but
still
not
that
much
if
you're
willing
to
grow
it
more.
This
is
largely
a
mining
phenomenon.
That's
going
on
out
there
right!
Now,
let's
try
the
mining!
B
B
B
And
as
a
result
of
that,
on
that
this
is
good,
it's
natural
gas
that's
been
creating
that
problem,
not
a
fuel
regulations,
rules
and
that
again
is
net
a
positive
for
the
economy,
so
cheap
energy
intimately
good
for
the
environment.
We
should
be
happy
about
this
and
it's
a
matter
of
continue
to
ride
this
as
we
go
forward.
B
I
wouldn't
expect
them
$70
a
Bell
being
in
place
for
a
long
time.
Almost
assuredly,
this
mark
is
gonna,
get
flooded
with
new
supply
and
then
back
down
again,
which
of
course
brings
in
a
side
of
the
equation,
because
you
know
the
u.s.
is
actually
becoming
far
more
energy
efficient
over
time
because
of
more
fuel-efficient
cars
because
of
changes
in
building
technology
because
of
investments
of
various
sorts
of
energy
efficiency,
standards
and
homes
are
actually
interview.
B
Consumption,
relative
economic
output
for
that
petroleum
and
electricity
continues
to
fall,
fall
fall
and
one
of
the
interesting
outcomes
of
this.
Of
course,
this
is
again
something
that
all
cities
and
states
that
should
be
paying
attention
to
is
right.
Now,
capacity
utilization,
yes,
utility
industry
is
the
lowest
it's
ever
been.
There
are
massive
stranded
asset
problems
in
the
utility
industry,
and
these
are
going
to
be
readily
apparent
over
the
next
five
six
years,
particularly
as
more
and
more
solar
comes
online,
which
again
is
eating
because.
B
B
It
has
the
issue
it
has
started
riding
you
can
see
the
trade
balance
the
left
hand
side
here,
how
it's
been
drifting
down
down
down,
not
cause
back
in
2006
they're,
pretty
close
to
it.
The
number
three
questions
is
why,
with
the
wrong
answer
on
this,
is
that
trade
deficits
are
created
by
foreign
trade
barriers.
In
fact,
most
folks,
we've
noticed
note.
The
trade
barriers
in
general
tend
to
reduce
the
amount
of
trade.
B
They
don't
have
a
lot
of
influence
if
you
will
on
the
actual
balance
of
trade
and
that
because
the
thing
that
drives
the
balance
of
trade
has
the
automotive
durable
conditions
in
the
United
States,
rather
linen
extra
additions
to
the
trade
deficit
is
as
the
difference
between
what
we,
as
a
nation,
consume
relative
to
what
we
as
a
nation
produce
when
we
are
consuming
more
than
we're,
producing
that
additional
consumption
has
to
come
from
somewhere.
That
comes
from
the
rest
of
the
world
in
the
form
of
a
trade
deficit.
B
B
Now
the
big
question
there
is:
what
causes
the
gap
between
consumption
and
production,
what
it
all
has
to
do
with
savings
rates
relative
do
you
must,
but
the
argument
is,
if
you
don't
save
enough
to
meet
your
investment
needs,
your
ball
and
money
again
from
the
rest
of
the
world,
which
is
the
opposite
of
trade
deficit,
occur
because
its
current
deficit,
it's
a
capital
called
surplus
because
money's
coming
into
the
United
States
goodbye
up
their
assets.
So
the
real
issue
is,
we
think
about
this
trade
deficit
that
began
in
earnest
back
in
the
early
90s.
B
The
only
upside
take
a
look
at
these
two
big
graphs.
One
is
meant
national
savings
and
the
other
one
is
net
exports
and
taking
account
these
two
lines
have
both
been
falling
continuously
for
the
last
30
to
40
years.
When
you
ask
why
are
we
wanting
a
trade
deficit
is
because
we,
as
a
nation,
don't
save
enough
and
that's
true
at
the
household
level,
because
households,
so
these
rates
are
actually
two
years
at
only
six
and
a
half
percent
and
of
course,
government
savings
rates
are
also
very
well.
B
We
know
the
federal
minimum
state
government's
continued
to
borrow
on
an
annual
basis.
They
lack
of
savings
is
what's
causing
us
to
have
to
borrow
from
the
rest
of
the
world
to
have
to
run
this
particular
trade
deficit.
Now,
that's
important
because,
of
course,
we
start
hearing
about
conversations
about
trade
policy
and
those
trade
policies
are
wrapped
around
the
idea
that
the
trade
deficit
is
bad
for
the
United
States
and
is
being
created
by
foreign
trade
barriers,
unfair
trade
practices
in
the
idea
here
and
most
economists
don't
agree
with
that
particular
rule.
B
B
Consumption
in
the
United
States
will
supply
about
for
manufacturers,
so
roads
in
the
history
of
the
United
States
has
more
than
less
than
two-thirds
of
consumption
in
the
United
States
that
actually
met
by
US
producers.
So
the
steel
industry
is
actually
out
there.
I
know,
of
course,
last
couple
years
is
dealing
you
she's
actually
been
quantified
market
share.
The
most
recent
data
back
in
2016
suggest
that
about
70%
of
all
steel
consumed.
B
B
The
entire
steel
industry
I'm
sorry,
the
entire
base
motors
industry
in
the
United
States,
the
entire
thing,
lock,
stock
and
barrel
hires
less
than
100,000
people
per
year.
Right
now
to
put
that
in
context,
we're
gonna
convict.
If
you
ban
imports
of
Steel
just
burned
it
out
right,
you
might
create
3,000
to
4,000
new
jobs
in
the
US
on
an
average
month
as
a
nation
as
a
nation.
B
B
B
Foreign
country,
you
don't
go
to
commodity
because
we
put
a
tariff
on
a
commodity.
What
ends
up
happening
is
that
seem
to
get
passed
on
to
the
supply
chain
ending
up
as
higher
prices
for
consumers
know.
Maybe
the
numbers
we're
talking
about
that
pretty
small.
You
know
the
few
cents
per
can
or
forty
fifty
dollars
per
car
they're,
not
that
big.
That's
to
paying
that
price.
On
the
other
side
of
the
equation.
When
the
Europeans
start
talking
about
tariffs,
they
went
after
name
brands.
They
went
after
Levi's,
no
one
after
I
lead
a
VAT.
B
Since
why
well
name
brands?
Does
it
there's
no
supply
chain?
That's
going
stretchy
good
simmer!
So
harley-davidson
has
a
choice.
You
need
to
cut
your
price
in
order
to
stay
competitive
in
the
European
market
and
then
best
news
profits.
Here's
a
bunch
of
market
share
and
news
profits,
so,
in
other
words,
slapping
a
tariff
on
a
direct
consumer
product
is
a
much
smarter
move
from
a
punitive
standpoint
and
that's
where
they
went,
which
of
course,
is
why
I
think?
B
Now,
when
it
comes
to
China,
yeah
I
had
a
lot
more
sympathy
for
what
the
administration
is
doing.
It's
about
time.
Somebody
stood
up
to
the
Chinese,
they
don't
play
in
the
global
trade
sandbox.
They
steal
intellectual
property
rights
they
but
give
very
unfair
access
to
American
businesses
trying
to
invest
in
their
country
or
sell
in
their
country.
They
exert
all
sorts
of
punitive
efforts
on
those
particular
companies.
Your
joke
goes
there's
two
kinds
of
companies
in
China.
B
There
are
two
kinds
of
foreign
companies
operating
in
China
where
those
that
lose
money-
and
there
are
those
that
have
make
money,
invest
having
it
taken
away
by
the
Chinese
government.
That's
the
owner,
you
gotta
companies
operating
in
China,
and
so
yes,
standing
up
saying
enough
is
enough.
You
have
to
start
playing
through
our
completely
applaud
this.
As
long
as
we
called
really
concrete,
sustainable
goals.
Here
are
things
you
need
to
do
in
order
to
have
this
off.
Some
of
these
go.
B
B
B
economy
goes
to
China
on
an
annual
basis
in
the
form
of
goods
I'm,
giving
him
four
percent
of
stock
produced
in
China
comes
the
United
States
on
an
annual
basis
percent
the
supply
chain
effects
to
China
are
much
larger
than
the
supply
to
an
effect
because
of
the
quality
and
composition
of
those
goes
over
to
China
on
a
regular
basis.
All
of
garbage
you
recycle
products
is
that
don't
have
supply
chain
effects
per
se,
except
for
if
they
stop
buying
and
it
starts
piling
up
in
our
ports.
B
In
contrast,
when
you
think
there
are
any
of
the
goods
that
come
over
here
from
China,
that
are
something
that
goes
down
the
line,
many
different
ways,
many
different
parts
of
the
Chinese
economy
wanna,
have
this
fight.
Now
mister
shaving,
that's
really
looking
for
a
way
out
where
they
can
maintain
face
and
I.
Think
that's
going
to
be
the
robbing
this
entire
negotiation.
Some
guard,
ignoring
it
I,
hope
it
works
out
and
as
long
as
the
state
is
restricted
to
China,
it's
not
going
to
be
that
big
of
a
deal
for
the
US
economy.
B
We
can
muscle
care.
This
may
be
that's
ugly.
If
it
does
global,
there's
only
bay
starts
watching
tariffs.
That
is
where
the
problem,
but
it's
just
China,
will
be
okay,
we'll
get
through
this
all
right.
How
do
consumers?
How
are
they
doing?
The
answer
is
pretty
hard
spending
communities
away
a
little
less
than
3%
of
your
terms
on
a
year
on
your
basis,
side
numbers
here
also
also
been
staying,
nice
and
steady
running
about
17
million
and
it's
easily
just
an
annualized.
Those
way
up
and
down
not
to
be
surprised.
B
On
us,
the
second
quarter
came
out
with
a
big
number
of
releases
most
which
will
fail
in
hiring
minor
except
the
one
huge
change
which
was
a
change
in
the
inning
personal
income.
They
actually
upped
their
estimates
of
personal
income
growth,
particularly
for
sole
proprietorships,
fairly
small
companies.
B
Problems
might
consider
Sadie's
the
nicest
that
he's
still
running
about
7%
better
for
consumers,
decent
numbers.
Here
you
know,
households
about
is
about
as
funny
actually
stable
as
they'd
been
in
a
bill
a
long
time
here.
The
debt
to
income
ratios
this
morning
about
90
percent
right
now,
nice
and
stable
know
about
115
percent
back
in
2007
before
the
big
collapse,
and
the
quality
of
this
credit
is
pretty
good
as
well
you're
denying
inside
this
is
transition
to
30-day
way.
This
is
near
delinquency,
so,
in
other
words,
he's
telling
you
not
about
former
problems.
B
This
one
supplier
van
is
probably
the
best
indication
of
coming
problems
in
the
real
estate
market.
If
you
look
back
up
to
say
too
late
late
2005,
he
would
need
to
see
the
huge
surge
in
my
supply
homes,
loads
of
first
indication
that
all
Hall
is
about
to
break
loose
in
the
USA.
So
Michael
is
hearing
the
reasons
why
in
2006,
I
was
so
carpet
in
my
predictions
today,.
B
More
time
with
the
14%
mortgage
rate
come
on
lates
in
fact,
look
at
the
buying
ratio,
which
is
a
cost,
a
pretty
20%
down
first
year,
mortgage
and
taxes,
it's
still
actually
relatively
good
rates
are
so
low.
Today,
the
Divine
ratio
is
still
good,
there's
nothing
wrong
with
our
housing
markets.
None
of
these
numbers
kill
me
whatsoever.
B
B
B
B
Great
you're
not
seeing
huge
amount
of
job
growth,
but
where
are
you
see
one
point
it
isn't
necessarily
because
of
the
lack
of
jobs
in
the
new
survey.
It's
called
that
web
jolt.
It's
been
off
about
20
years
now,
the
Bureau
of
Labor
Statistics.
Does
it's
an
estimate
of
the
number
of
job
openings
in
the
US
economy.
B
B
It's
not
good
because
of
problems
in
your
survey.
It's
not
good
because
it's
not
inflation
adjusted
it's
not
good,
because
it
doesn't
account
for
the
fact
that
I
play
boomers
retiring
and
last
you
have
to
take
in
cadiz
things
in
your
car.
The
amount
of
Fed
has
has
a
thing
called
the
wage
tracker
where
they
clean
up
these
problems
and
they
look
at
numbers
which
is
hearing
you
both.
B
B
B
Is
because
of
which
people
in
corporations
are
schooled
in
their
class
and
the
answer
to
this
quality?
This
debate
is
very
simple.
The
data
is
wrong
because
we're
going
to
look
at
your
underlying
source
of
data,
this
data
comes
from
your
adjusted
gross
income
numbers
on
your
IRS
Form.
They,
let
me
be
clear,
accounting.
Your
adjusted
gross
income
is
in
no
way
shape
or
form
your
income.
There
are
massive
amounts
of
income
on
there
from
public
health
care
to
private
health
care
to
here
sorts
of
other
government
benefits
to
pension
benefits.
B
B
This
worries
me
right
now
for
2016,
the
top
1%
pay
30%
of
all
American
wealth
back
in
1989
was
30%,
and
this
probably
doesn't
even
tell
a
truth,
because
who
knows
how
much
the
service
was
packed
off?
If
you
didn't
top
1%,
it's
even
more
stilted,
so
you
have
more
more
broadly
to
feel
to
your
people
and
everybody
retires.
This
is
not
healthy
for
a
functioning
democracy.
So
start
talkin.
Money
can
start
talking
about
wealth.
That's
where
the
problems
exist.
What
we're
talking
about
overall
to
come
to
jobs?
B
B
B
Constant
forward
now
again,
let's
start
with
a
conversation
about
immigration,
I'm
happy
to
have
a
debate
about
securing
the
border,
who
comes
whether
it's
scale
family-based
I'm
happy
to
have
those
debates
as
long
as
it
when
you
reach
their
conclusion
at
which
we're
going
to
change
our
people
immigrated
to
this
nation
and
make
the
number
larger
and
my
fundamental
problem
again
with
this
administration-
is
not
left
versus
right.
Democrat
versus
Republican
I.
All
right.
B
B
B
Just
lay
the
folks,
you
understand
how
this
works
and
in
a
democracy
they
are
constantly
special
groups,
interest
forces
pushing
for
specific
religions.
We
want
a
special
tax
break
here.
We
want
a
special
tax
loophole.
I
want
a
special
exemption
here.
This
is
what
they
do.
Sometimes
they'll
have
their
reasons
for
more
often
they're,
not
they're,
not
they
don't,
and
when
the
results
of
this
is
overtime
because
of
the
forces
easily
political
interest,
the
tax
system
can
become
very.
B
B
B
B
B
That's
taking
money
out
of
one
pocket
and
putting
in
another.
It's
not
real
that
not
that
right
now
is
about
70%
at
the
end
of
these
10
years,
we'll
be
90%.
So
what
the
funded
liabilities
are
irrelevant
and
the
increase
in
funding
liabilities,
but
at
10
years
to
12
years
mr.
percentage,
when
of
course
Medicare
spending
is
going
to
you
raise
that's
when
we
start
getting
in
the
crazy
situation.
Remember
it's
not
the
funded
liabilities.
You
need
to
scale
up
its
the
unfunded
liabilities
and
that's
all
we're
talking.
B
B
B
B
B
B
B
B
Inclined
to
pay
attention
to
this
video,
which
is
to
say
when
one
rates
are
actually
lower
than
shorter
rates,
that's
actually
the
best
indicator
of
an
oncoming
recession.
The
last
nine
recessions
were
all
preceded
by
the
inverted
yield
curve
and
seeing
that,
in
the
interview
that
you
could
get
in
closer
and
closer
to
zero
from
economists
perspective,
a
room,
that's.
B
B
B
B
Operational,
but
the
impact
of
the
Phillips
curve
is
critically
dependent
on
the
underlying
amano
inflation
system.
Right
now
we
did
the
last
15
20
years
or
so
you
can
see
the
relationship
between
inflation
unemployment,
but
it's
really
small
and
you
see
an
almost
five
and
a
half
percentage
point
drop
in
unemployment
and
inflation
is
gone
up,
a
half
a
percent,
almost
nothing.
So
the
idea
that
the
labor
market
is
going
to
create
a
station
it
could
does
it
make
any
sense
now
what
determines
underlying
inflation?
The
answer
is
money
supply.
B
B
The
stock
market
sells
off
the
middle
of
a
downturn
because
guess
what
corporations
are
getting
ported
over
down
to
it?
There
isn't
money
because
the
economy's
weak,
the
downturn
can
start
with
the
stock
market.
The
downturn
started
something
else
unless,
as
far
as
meaning
the
economy
go
back
to
2008,
the
recession
started
in
q1.
B
The
stock
market
didn't
have
his
first
major
show
up
until
August
I
was
halfway
in
the
Lehman,
went
bankrupt
stock
magazine
for
more
concerned
with
the
stock
market
than
they
did
with
us
in
the
economy
and
in
case
he
worried
about
the
stock
market.
Why
are
you
doing
this
v
just
proposed
a
plan
to
make
life
easier
by
reducing
we
make
the
rules.
First,
listen
between
you
and
me.
The
last
two
recessions
started
in
south
Manhattan.
B
B
B
So
you
do
see
some
these
coastal
areas
kind
of
going
a
little
faster.
The
Southwest,
the
southeast
being
better
other
course
is
doing
a
bit.
So
again
goes
back
to
this
idea
and
look
at
the
differential
growth
rates
across
States.
Is
it
because
some
states
are
being
hurt
worse
by
say,
trade
deals
or
in
other
states?
Is
there
some
differential?
B
Why
are
some
states
doing
better
than
others
and
for
the
most
part,
is
it's
not
so
much
that
some
states,
which
is
better
than
others
in
fact,
is
not
red
in
the
red
states
versus
blue
states
is
not
Costa
versus
England?
It
actually
has
a
lot
to
do
just
where
people
are
moving.
What's
interesting
is
on
left
hand
side.
This
is
unemployment
rates
and
the
latest
change
in
total
per
11
points
for
the
nine
they
all
said.
B
Employments
we're
seeing
right
now
is
in
West,
North,
Central
and
New
England
and
yet
West
are
central
in
the
mid
and
a
Malayan
are
two
of
the
three
slowest
growing
parts
of
the
economy
for
jobs
perspective.
So
two
of
the
places
with
and
also
employment
rate,
and
also
had
some
of
the
least
amount
of
job
growth.
It's
it's
not
as
simple
as.
B
An
employer
rates
of
job
changes
across
the
50
states
there's
no
relationship
between
the
unemployment
rate
and
job
growth.
There
are
some
states
that
have
high
unemployment,
low
job
growth.
There
are
some
states
that
are
higher
job
growth
and
high
unemployment.
There's
no
real
relationship
here,
which
driving
this,
of
course
is
net
migration.
One
of
the
things
about
the
US
economy,
getting
back
on
the
even
keel,
Stan.
B
B
The
population
expanded
by
1%
people
moving
here
the
last
six
years.
Almost
none
there's
not
an
opportunity.
Unemployment.
The
state
of
California,
has
never
been
lower
than
it
is
right.
Now,
unemployment
in
Los,
Angeles
County,
where
you
all
right
now
has
never
been
lower
than
it
is
right
now.
All
time,
of
course,
is
we
decide
to
make
it
completely
impossible.
B
B
260,000
new
units
per
year
right
now
we're
building
a
hundred
and
twenty
thousand.
We
don't
build
anywhere
close
to
enough
housing
and
as
a
result
of
that,
prices,
keep
going
up
and
up
and
up
and
people
keep
not
knowing
Olivia
and
the
house
is
a
do.
Commute
for
sale
go
for
astronomically
high
prices,
not
because
it's
a
baby
in
California,
because
prices
are
so
high
relative.
The
people
who
live
the
incomes
of
people
live
in
that
community,
to
which
I
point
out.
That
is
a
completely
irrelevant
statistic.
B
Not
to
live
in
that
community
and
their
to
do
those
folks,
these
prices
are
perfectly
reasonable,
I
know
because
they're
buying
in
let
these
crazy
high
prices.
Now
it's
interesting
about
this
is
in
California
we're
talking
about
where
the
cost
of
Hawkings,
maybe
going
back
to
a
rent
control,
we're
talking
about
an
Alsatian
for
the
house
and
mandates.
All
such
a
subsidies
for
lowering
conformers
what's
interesting
is
a
long-lived.
Of
course.
B
B
B
B
B
And
the
problem
we
have
is
asking
the
wrong
questions.
You
have
to
start
asking
the
right
questions,
because
only
then
will
you
come
up
with
the
solutions
and
we're
not
doing
that.
We're
asking
the
wrong
questions
and
a
lot
of
policy
is
moving
in
the
wrong
direction.
So
my
ask
of
you
before
you
wrap
this
up
is
avoid
the
weapons
of
mass
distraction.
A
B
So
so
the
question
is
sure
other
states
we
did
that
one
go
at
the
high
end.
Let's
say
to
you
from
before:
I
asked
Virginia.
Okay,
the
answer
is:
that's
okay
and
I'll.
Tell
you
why
teaching
is
the
term
in
economics.
We
call
filtering
and
the
idea
of
filtering
is
very
simple.
Given
the
cost
of
construction
to
build
at
the
high
end,
but
I've
given
at
the
high
end
you
create,
they
can
seize
at
the
lower
end
and
those
vacancies
tend
to
be
filled
up
by
lower
income.
B
B
Before
1970
in
Houston
and
the
house
in
1970,
10%
of
people
living
in
that
housing
are
making
70
thousand
or
more
year,
so
90%
of
that
were
so
that
lower-income
households,
San
Francisco
60%
of
people
living
in
housing
good
before
1970
earning
seventy
five
thousand
dollars
more
per
year
ago.
Those
who
appreciate
is
when
you
tap
high-end
construction.
You
actually
limit
housing
for
low-income
families,
because
you
push
middle-income
families
in
their
housing
stock.
So
building
at
the
top
end
is
fine
for
these
kind
of
economies
online
living.
B
We
should
recognize
for
the
most
part.
If
you
open
the
spigot
up
and
let
the
market
supply
we
will
handle
most
of
it
and
then
the
actual
kind
of
subsidies
in
support
you
have
to
do.
We
roll
through
limited,
relatively
subset
in
California,
we
shut
everything
down,
we're
the
situation,
no
matter
how
much
money
we
throw
at
it.
We
can
never
have
enough
for
miles
in
the
state
because
we're
not
anything
get
built.
C
There's
a
lot
of
discussion
about
the
recent
tax
reductions
for
the
higher-end
people,
tax
reductions,
yeah,
there's
discussion
about
a
lot
of
that
money's
being
utilized
to
reinvest
not
reinvested
and
company
but
by
the
bathroom
stocks.
Long
term
is
that
is
that
all
those
wild
discussions?
That
of
us
we're
all
concerned.
B
There's
two
things
you
have
to
talk
about
right:
yeah,
one
is
the
distribution
of
income
and
wealth,
and
the
other
is
called
investment
in
general.
The
thing
about
investment
in
general
is
our
investment
markets
have
not
been
in
any
way
shape
or
form
constrained,
whether
it's
because
of
form
retained
earnings
that
haven't
come
back
because
of
tax
law
or
because
of
taxes
on
high-income
folks.
The
idea
of
the
u.s.
hasn't
been
investing
enough
because
of
these
issues
is
silly.
We
invest
lots,
there's
huge
amounts
of
money
floating
on
the
market.
B
B
B
There's
gotta
be
some
sort
of
system
to
kind
of
it's
just
healthy
for
the
long
run
health
of
the
economy
as
simple
as
that,
and
you
know
it's
a
political
economy,
not
a
left
versus
right
kind
of
phenomenon.
This
just
goes
back
to
the
idea
that
in
here
only
no
more
wealth
control
that
feeling
for
people
is
very
disturbing.
Every
economy
in
history
has
seen
that.
B
B
D
D
But
I
want
to
touch
upon
one
of
your
files
on
myth-busting
I
want
a
busting
it.
Okay,
and
you
mentioned
you
mentioned
the
production
of
oil
in
the
stage
which
is
fabulous,
and
you
also
mentioned
it's
not
as
bad
as
Tara
pounds.
In
Canada.
We
have
no
Tara
pounds
in
Canada
the
oil
sands.
If
you
want
look
at
Tara
sense,
LaBrie,
Tirpitz,
Olay,
those
are
consonants
okay
times
a
cold
rivet
nut
oil
sands,
the
kernel
oil
fields
in
Southern
California,
which
is
a
20
square
mile,
moon
scape
of
Jax.
D
B
A
B
B
Yeah,
well,
that's
one
quarter:
growth
is
slow
down
just
a
little
bit
it
pops
back
up.
It's
just
absent
rows,
those
short-term
numbers,
sometimes
in
because
they're,
not
the
best
numbers
in
the
world,
so
they
kind
of
flop
around
just
a
little
bit,
but
some
of
that
clearly
is
being
driven
by
a
slowdown
in.
If
you
will
some
of
the
population
growth
we've
seen,
I
have
a
debt
too
deeply
into
it.
The
kind
of
year-on-year
basis
California
still
run
a
pretty
good
basis
year
the
year
it's
still
doing
a
pretty
good
basis,
yeah.