GALLOWAY FOUNDER OF L2 AND TRANSFERS OF LYU’S STERN SCHOOL
OF BUSINESS.
OF BUSINESS. WHEN IT COMES TO ECONOMIC
RELIEF, THE GOVERNMENT HAS SAID
LOOK AT THIS LIKE A NATURAL
DISASTER.
DISASTER. WE’RE TRYING TO PUT THE ENTIRE
ECONOMY ON HOLD AND GET EVERYONE
TO THE OTHER SIDE.
CRITICS SAY THAT’S NOT AT ALL
WHAT’S HAPPENING.
WHAT’S HAPPENING. HOW DO YOU SEE IT?
>> WELL, STEPHANIE, I THINK LIKE
A LOT OF PARENTS, I’M SPENDING A
LOT OF TIME WATCHING MOVIES AND
DOING SOMETHING WONDERFUL.
WE’RE WATCHING MOVIES WITH MY
SONS THAT I WATCHED WHEN I WAS
THEIR AGE.
THEIR AGE. AND THERE’S A WONDERFUL BOOK
TURNED INTO A MOVIE CALLED "THE
LITTLE PRINCE."
LITTLE PRINCE." ONE OF THE GREAT LINES IS, WHAT
IS ESSENTIAL IS INVISIBLE TO THE
EYE.
EYE. AND I WORRY THAT WHILE WE CALL
THESE WORKERS ESSENTIALS, THE
ONES MAINTAINING OUR FOOD
SUPPLY, IN ADDITION TO PEOPLE
SAVING LIVES, THOSE WORKERS WHO
ARE SUSTAINING LIFE, DELIVERING
OUR FOOD, ENSURING WE GET OUR
GROCERIES, ARE THEY REALLY, YOU
KNOW, ARE THEY, IN FACT,
INVISIBLE TO THE EYE?
WE USE THE TERM ESSENTIAL, BUT
IF YOU LOOK AT THEIR LIFE, IF
YOU LOOK AT THEIR SECURITY IF
YOU LOOK AT THEIR HEALTH CARE,
THEIR BIGIT INDIGNITY OUTSIDE OF
CRISIS THAT CREATES SOME
SCRUTINY ON THEIR ACTUAL
COMPENSATION, ARE WE ACTUALLY
TREATING THEM AS ESSENTIAL OR
ARE THEY, IN FACT, INVISIBLE TO
THE EYE?
THE EYE? I’D ARGUE IT’S THE LATTER,
STEPHANIE.
STEPHANIE. >> WELL, THEN LET’S WALK THROUGH
THIS.
THIS. TAKE AMAZON.
TAKE AMAZON. TAKE WALMART.
TAKE WALMART. LAST YEAR IT WAS BERNIE SANDERS
WHO WENT TO THE WALMART ANNUAL
MEETING ARGUING THAT SOMEONE
FROM THE LABOR FORCE SHOULD HAVE
A SEAT ON THE BOARD.
HE DIDN’T GET LAUGHED OUT OF THE
BUILDING BUT CERTAINLY DIDN’T
GET ANY TRACTION.
AND NOW HERE WE ARE.
THOSE ARE TWO OF THE ONLY
COMPANIES OUT THERE WHOSE STOCK
IS UP THIS YEAR.
AND TO PEOPLE WHO DON’T BENEFIT
ARE THOSE PEOPLE IN THE STORES
STOCKING THE SHELVES.
>> SO, LOOK, IN AN ECONOMY, YOU
MAKE A CONSCIOUS DECISION AROUND
THREE PARTIES AND HOW MUCH OF
THE FRUIT THEY DIVIDE.
THERE’S SHAREHOLDERS.
THERE’S SHAREHOLDERS. THERE’S WORKERS, RIGHT, AND THEN
THERE ARE CONSUMERS.
AND IN AMERICA WE’VE DECIDED THE
CONSUMER IS KING.
WE GET REGULATION OUT OF THE WAY
AND AMAZON GIVES US INCREDIBLE
DEALS WITHIN 48 HOURS DELIVERED
FOR FREE.
FOR FREE. WE’VE DECIDED THE SHAREHOLDER
CLASS IS IMPORTANT AND DISTANT
THIRD IS WORKERS.
GDP HAS GROWN 80%.
WAGES ACROSS THE LOWER 50% WHICH
MAKE UP THE MAJORITY OF
QUOTE/UNQUOTE ESSENTIAL WORKERS.
IT MAY NOT HAVE KEPT PACE WITH
GDP.
GDP. THE TOP 0.1% HAVE INCREASED
THEIR PAY 400% TO 500%.
IN GERMANY IT’S MANDATED AT
LEAST 40% OF THE BOARD HAS TON
CONSIST OF WORKERS.
SO EFFECTIVELY WORKERS HAVE
ALMOST NO SAY AT THE TABLE, AND
AS A RESULT, THEY HAVE -- THEIR
COMPENSATION JUST DOESN’T
REFLECT THE TERM ESSENTIAL.
ALSO I’D ARGUE, WE’RE GOING TO
FACE SOME UGLY TRUTHS HERE.
EVERY NIGHT AT 7:00 WE’RE
LEANING OUTSIDE OUR BALCONIES
AND APPLAUDING AND HONORING OUR
HEALTH CARE WORKERS, AND WE
SHOULD BECAUSE THEY’RE SAVING
LIVES.
LIVES. BUT WE DON’T GO OUTSIDE OUR
WINDOWS AND HONOR THE PEOPLE
WORKING IN GROCERY STORES OR THE
TRANSIT WORKERS, 41 OF WHOM HAVE
DIED IN NEW YORK STATE, MAKING
SURE WE HAVE BASIC
INFRASTRUCTURE.
INFRASTRUCTURE. AND I WONDER IF IT’S THIS
CONTINUED WAR ON THE POOR WHERE
BECAUSE HEALTH CARE WORKERS ARE
EDUCATED, WE WANT OUR KIDS TO
BECOME HEALTH CARE WORKERS, WE
THINK OF THEM IN A DIFFERENT
LIGHT AS THOSE WHO HAVEN’T HAD
AS MUCH OPPORTUNITY AS US,
HAVEN’T BEEN AS BLESSED BUT ARE
JUST AS IMPORTANT.
SHOW ME SOMEONE AT HOME WHO IS
BASKING IN PURELL.
I’LL SHOW YOU SOMEONE WHO ISN’T
ESSENTIAL.
ESSENTIAL. SHOW ME SOMEONE ESSENTIAL
OUTSIDE OF HEALTH CARE AND I’LL
SHOW YOU SOMEONE WHO HAS NO
DIGNITY IN WORK, NO HEALTH CARE
PROTECTION AND IS FORCED TO GO
WORK AND PUT THEMSELVES IN THE
WAY OF DANGER BECAUSE, QUITE
FRANKLY, THEY HAVEN’T MADE ANY
MONEY THE LAST 40 YEARS.
>> OKAY.
>> OKAY. WELL, SCOTT, GO HIGHER UP THE
ECONOMIC FOOD CHAIN AND YOU
ACTUALLY HAVE HEALTH CARE
WORKERS WHO ARE GETTING HOURS
OR -- EXCUSE ME, GETTING THEIR
PAY CUT WHO ARE WORKING IN
HOSPITAL SYSTEMS OWNED BY
PRIVATE EQUITY GIANTS LIKE KKR.
YOU’VE GOT HEALTH CARE
PROFESSIONALS WHO ARE SUFFERING.
YET THOSE PRIVATE EQUITY GIANTS
WHO ARE SUPPOSED TO BE IN A
POSITION WHERE THEY TAKE ALL
SORTS OF RISK AND WHEN YOU TAKE
BIG RISK YOU CAN GET LOTS OF UP
SIDE BUT YOU RISK FACING GREAT
DOWN SIDE.
DOWN SIDE. AND RIGHT NOW, THE GOVERNMENT IS
STEPPING IN AND CURBING THAT
DOWNSIDE.
DOWNSIDE. WE’RE HAVING CAPITALISM ON THE
WAY UP.
WAY UP. AND SELF-IMPOSED SOCIALISM ON
THE WAY DOWN.
>> YOU’RE ABSOLUTELY RIGHT,
STEPHANIE.
STEPHANIE. THE HUNGER GAMES ON THE WAY UP
AND ON THE WAY DOWN A LOT OF
CALL SIGNS BY CEOs THAT WE’RE IN
THIS WORLD AND A HALLMARK
CHANNEL-LIKE SOCIALISM.
CHANNEL-LIKE SOCIALISM. WE NEED TO DECIDE IF WE’RE
KAPTSIST MEANING IF YOU TAKE
INCREDIBLE RISK THERE’S
INCREDIBLE UP SIDE BUT IF YOU
CAN USE 96% TO BUY BACK STOCK,
THEREBY INFLATING YOUR
COMPENSATION AND THE
COMPENSATION OF THE CEO AND THE
DIRECTORS AND NO CASH WHEN A
CRISIS HITS, SHOULD YOU BE, IN
FACT, BE ALLOWED TO FAIL?
AND WHAT PRIVATE EQUITY AND CEOs
ARE TRYING TO CONVINCE US OF
RIGHT
RIGHT RIGHT NOW.
RIGHT NOW. WHEN YOUR COMPANY DECLARES
CHAPTER 11, A LOT OF TIMES THERE
ISN’T JOB LOSS.
JUST A WIPE OUT OF EQUITY.
SO ALL OF A SUDDEN, WE’RE IN
THIS TOGETHER.
THIS TOGETHER. WE NEED TO DECIDE IF WE’RE
CAPITALIST, MEANING EQUITY GETS
WIPED OUT ON THE WAY DOWN, OR IF
WE’RE SOCIALIST.
WE’RE SOCIALIST. BUT IF WE’RE GOING TO BE SOCIAL
IFRKTS
IFRKTS IST, AND A LOT OF PEOPLE SAY
THAT’S A BETTER ALTERNATIVE.
5 OF THE 7 HAPPIEST NATIONS HAVE
SOCIALISM.
SOCIALISM. YOU WANT YOUR UNIVERSAL PRE-K
AND UNIVERSAL HEALTH BUT LET’S
NOT HAVE CAPITALISM ON THE WAY
UP AND THEN WHEN WE HIT A CRISIS
WE HAVE THE WORST TYPE OF
SOCIALISM, WE HAVE CRONYISM.
AND THAT’S THE PEOPLE WITH THE
MOST REPRESENTATION OF
WASHINGTON, MOST ECONOMIC POWER,
DECIDE ALL OF A SUDDEN THAT
WE’RE IN THIS TOGETHER.
AND AS SOON AS THE MARKETS START
GOING BACK UP THEN EVERYBODY
TALKS ABOUT CAPITALISM AND
INDIVIDUALISM.
INDIVIDUALISM. >> THEN QUICKLY BEFORE WE GO,
WHY IS THE GOVERNMENT LISTENING
TO THEM?
TO THEM? WE ARE SEEING CEOs OF GIG
ECONOMY COMPANIES URGING THE
GOVERNMENT TO PROVIDE THOSE UBER
AND LYFT DRIVERS HEALTH CARE AND
GOVERNMENT SUPPORT.
GOVERNMENT SUPPORT. YET THOSE COMPANIES NEVER PAID
INTO THE SYSTEM AND MADE ANY OF
THOSE PEOPLE EMPLOYEES SO THEY
NEVER PAID A PAYROLL TAX.
HOW COULD THEY ASK THIS OF THE
GOVERNMENT?
GOVERNMENT? >> THAT’S THE CORRECT QUESTION.
AMAZON HAS OVER 100 FULL-TIME
LOBBYISTS IN D.C.
NOT LOBBYING FOR HIGHER MINIMUM
WAGE BUT LOBBYING FROM ABSENCE
IN REGULATION.
IN REGULATION. LET’S TALK ABOUT THE COMPANIES
WITH THE MOST ESSENTIAL WORKERS
WHO PAY THEM ANYWHERE BETWEEN
$12 AND $15 AN HOUR.
IT’S AMAZON AND WALMART.
AND IT’S NO BUSINESS, STEPHANIE,
THAT, TODAY, TODAY THOSE STOCKS
HIT AN ALL-TIME HIGH.
YOU ARE OBVIOUSLY REFERRING TO
UBER.
UBER. UBER IS WORTH MORE THAN THE
ENTIRE U.S. AUTO INDUSTRY.
THEY PAY PEOPLE AN AVERAGE OF
$27 AN HOUR.
GUARANTEE THEIR HEALTH CARE
BENEFITS, THEY ARE STILL MAKING
MONEY.
MONEY. UBER RIGHT NOW HAS PEOPLE
PUTTING THEMSELVES IN HARM’S WAY
TO GET CLOCKED OUT WHEN THEY
DON’T MAKE MONEY.
A QUARTER AND THIRD OF THEM MAKE
BELOW MINIMUM WAGE BUT THOSE ARE
THE NEW INNOVATORS.
DO WE WANT A RIDE-HAILING
ECONOMY WHERE PEOPLE ARE
VULNERABLE, OR DO WE WANT AN OLD
ECONOMY LIKE GESTALT SAY THERE’S
IN WORK AND SHAREHOLDERS AREN’T
GOING TO REAP AS MUCH OF THE
POD.
POD. BUT PEOPLE WHO HAVE MADE THIS