- Sup ya beautiful bastards.
Welcome back to the Wednesday Philip de Franco Show.
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But let's just jump into it.
First up today in the world of social media
and entertainment and easily one of the most requested
stories on our text line.
Let's talk about this Frenemies fallout.
So if you're not familiar,
Frenemies is one of the most popular podcasts
out there right now.
It's hosted by Ethan Klein and Trisha Paytas.
Over the past 24 to 48 hours
it's been this very public and uncomfortable and messy...
I mean, it's hard to call it anything other than a breakup.
Well, there's a lot of stuff happening
and there's also a number of journalists with this beat
kind of chiming in and it appears that they're gonna be
a number of articles coming out in the coming days.
We're gonna try and boil it down
to the highlights of what's really happening here.
So where we'll start is that Trisha Paytas announced
early yesterday that they are leaving
the Frenemies podcast with Ethan Klein, which is produced
by H3 Production.
With Trisha making this announcement after receiving
criticism from paying members who received early access
to Tuesday's Frenemies episode, which is now public.
In that episode Trisha and Ethan get into an argument
when Trisha appears unenthusiastic
about a new advice segment that was added to the show.
We see Ethan make a comment about Trisha
not contributing anything to the podcast,
saying that Trisha just shows up to film.
And that appears to set off this public back and forth
about creative differences.
At one point, Trisha also seems frustrated
about not having enough input on things.
- I never pick the costumes, I never do the vlogs.
I give so many ideas.
I say, dancing for the vlog.
I give all these ideas and you don't, it's just for you.
- What's wrong with advice?
- I don't think it's a good segment.
- Trisha then brings up if they get no say on new hires,
even though Ethan uses money earned from podcast highlights
and 5% of the podcast revenue to pay the crew.
There we see Ethan say that he doesn't need to ask Trisha
about people that he hires for his company.
- These are employees of our production company.
- So why are you taking highlights and 5% of Frenemies?
You told me that it was to pay them.
That they could be working- - It's for production costs.
- Okay, but you told me at the beginning
- It's for production costs.
It's literally about we are producing the show,
and I'm taking a cut.
I feel like that's beyond reasonable.
- And when I say that it's uncomfortable,
I mean like the crew is there as this is happening.
Here we also see Ethan say that he gives Trisha
a very good deal by giving them 50% of everything else
considering that his company does all the backend work.
Trisha, at that time appears to feel differently
arguing that they should have specific Frenemies employees.
All they get into this really raw and uncomfortable moment.
- I don't wanna have, get in an argument over...
- I really need to leave.
- Okay, all right, we're done.
Thank you guys. - Thank you.
- With Trisha deciding not to continue and walking off.
As we see all of that in the Frenemies podcast.
But then as far as Tricia's video,
there we see Trisha mentioned that the crew was frustrated
and did not want to film with Trisha the following day.
Well, it appeared to many that money
was one of the big issues,
Trisha trying to clarify here saying
that one of the biggest issues was control.
Saying they were frustrated over the show
not being a true 50/50 partnership.
- I do feel like I contributed half to Frenemies,
building the H3 channel.
I would have loved to have Frenemies
on my channel, and like build up my channel.
I could have produced, I could have built sets
like I'm capable of this stuff.
- Trisha also adding that they don't dislike
the crew and understands that they do put in a lot of work.
And in the lengthy comment below we see Trisha add,
I'm leaving to ease the tension everywhere.
I don't wanna be the toxicity in their machine.
Then as far as Ethan, we saw him responding Tuesday
on Twitter saying things like
Happy National Best Friends Day.
Not sure what to do with 4,000 frenemies hoodies.
I'm honestly gutted over this whole thing,
Trisha's video this morning was a total surprise to me.
I don't really know what more I can say or do,
I'm very sorry to all the fans of frenemies.
I did everything I humanly could to save it.
But then we saw things escalate from there.
We saw Trisha posting another video,
and then Trisha and Ethan going back and forth on Twitter.
With Tricia even posting text conversations that they had.
One of those tweets, also appeared to get the attention
of at least one journalist, Kat Tenbarge
of Insider.
This is because in the text messages, it appears
that Trisha called Ethan Jewy regarding a money split.
Which is also an aspect of their podcasts
that they touch on and talk about though.
I do imagine that there's gonna be
articles coming out somewhat soon.
But I mean, there's a lot in there.
And so, what I'll touch on here is
that we then saw Ethan saying that he was very upset
that the crew members
were now getting hate from Trisha's fans.
Adding that they don't deserve it
because they work their asses off.
Also saying that he reached out to Trisha
because he was unhappy with how they handled the situation.
But Trisha arguing that Ethan's actually just trying to hide
behind his arguments about the crew members
when that has nothing to do with Trisha's main issue.
That said, the two appear to have now deleted most
of their tweets saying they shouldn't have
aired all of this out on Twitter.
Trisha this morning, has now uploaded
a video called I'm sorry.
And much like children in an unstable home,
a lot of the audience is kind of just going,
okay, well, what's happening now.
You normalize the case, right?
You think this is a regular thing.
I mean, but also this isn't even the first time
that Trisha has said that they were going to leave the show.
Though, I mean, you look at how uncomfortable that video is,
I don't think either of them are that good of actors.
This feels genuine.
But as far as the relationship can be fixed and mended,
we'll have to wait and see,
or it's the end of one of the bigger podcasts
on the internet now.
And it's an unfortunate reality that it is very hard to work
with people that you're supposed to be friends with
or I mean, family with.
Which is why I choose to hate everybody.
Not really, but it is, it is hard to work
with people that you care about.
Yeah, with all this, a question that I'll pose
because I do know there's a decent chunk
of crossover between my show and theirs.
What are your thoughts on everything that's transpired
over the past 24 to 48 hours?
And also what do you think will happen?
Then in business news,
we actually had David Dobrik in the news.
Though it's odd, 'cause he's in the news
'cause he's not in the news.
I'll explain.
Remember the social media app that he launched Dispo.
A lot of members of the vlog squad were part owners.
Well, now we're seeing headlines confirming
that it closed a Series A funding round
with high profile investors.
So it does appear that David Dobrik stepping down
from the company's board back in March,
saying that he's leaving in an effort to not distract
from the company's growth that was effective.
Because you know,
those scandals did put people in an uncomfortable position.
I mean, major investors in his app, like Spark Capital,
they cut all ties with it.
But at the same time he had others like 776
distancing themselves from David specifically,
but continuing to back Dispo.
You know, when you look at Dispo's statement
about the funding it even feels
like they're trying to put this chapter behind them.
Or that statement, titled Dispo 2.0.
You also have Dispo social media posting out things
like the co-founder of 776 tweeting,
"Your true company culture reveals itself
when things aren't going according to plan."
Showcasing what appears to be a much
more diverse cast of characters behind the scenes
than I think a lot of people would associate with Dispo.
With many associating the app with David Dobrik
and the vlog squad.
And yeah, it's gonna be very interesting
to see what happens with Dispo
because they're still the money from venture capitalists,
as well as people like Kevin Durant, Cara Delevingne,
and Sophia Vergara.
But also at the same time, cause I've seen the
the Dobrik lists stuff in the headlines,
he still will benefit from this.
I'm not saying that's inherently a good or a bad thing,
but he's just not on the board.
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And then let's talk about jobs in par,
because according to data release yesterday
from the labor department, at the end of April
there were 9.3 million open job listings across the country.
And that number is absolutely jaw-dropping,
not only for the fact that it is a new high
on records dating back to 2000.
But also because it nearly matches the 9.8 million
unemployed Americans who are searching for jobs
at the same time.
Like we've been talking about on the show recently,
mass vaccinations and the kick starting of the economy
has led to a massive labor crunch.
And this is due to a variety of reasons.
You have one camp arguing that people are avoiding work
so they can continue to draw of that
early enhanced unemployment benefits,
which can actually be higher than the money
that they would make if they were working.
And in fact, there are Republican governors
in 25 States, which account for 40% of the US workforce,
have now made plans to end those federal benefits.
With the first round of States being Alaska, Iowa,
Mississippi and Missouri,
set to cut off access this Saturday.
But at the same time, you have this other camp arguing
that people are worried about things like
a lack of childcare, ongoing COVID-19 risks
especially if they or a family member or immunocompromised.
Also arguing that many simply wanna return
to their career field with a job
that doesn't underpay their experience level.
Which could also explain why,
along with those 9.3 million openings,
we saw a record high
for the rate at which workers were quitting their jobs.
As well as a record low for layoffs in April.
In fact, out of the 4 million workers who quit their jobs
in April most were in the retail sector.
And according to data from Indeed at the end of May,
job openings in food actually ended
up soaring past pre-pandemic levels by 25%.
But, it's also not just retail.
Airports and airlines are also struggling
to keep up with a huge spike in travel,
because of that the TSA in recent weeks was promised
$500 monthly bonuses to screening officers
at short-staffed airports, turned part-time positions
into full-time positions, and even increased overtime
to the point that it requires officers
to work on their days off.
And even with that, the TSA is also now reportedly
asking office workers to volunteer to assist
with airport checkpoints for up to 45 days.
Delta and American Airlines have also asked some
of their salaried employees to volunteer
at airports amid the travel shorted.
Though, I will say the problem with airlines
goes even deeper.
Well, this may be touches on why people
are leaving other sectors, especially with retail
or anything interacting with the public.
A lot of it can be boiled down to
with a lot of people are shitty.
But I mean, when it comes to air travel,
it's at a different level right now.
Where the Federal Aviation Administration, or the FAA,
usually receives 100 to 154 more reports
of bad passenger behavior every year.
But this year, and we're not even officially
past the halfway point, there have been 2,500 reports.
We have some being attacked by passengers,
being bullied by government officials.
For example, Alaska Airlines actually had to ban
State Senator Lora Reinbold,
who did not only refused to comply
with the federally mandated mass policy repeatedly,
but called the staff uptight, called them mass bullies
just for doing their job.
And the airline has actually had to ban
over 500 people this year.
In fact, the harassment and the attacks have gotten so bad
that airlines are trying to think
of any way to calm things down.
One of the ways they're considering is an alcohol ban.
With American, United Airlines and Southwest
actually already having extended their
quarantine alcohol suspension.
With some here pointing to a study that found a 35% increase
in altercations on flights in 2017.
And of those altercations 27% involved alcohol consumption
or some sort of intoxication.
Yeah, I think that's why a lot of this story,
whether it be specifically airlines or just unemployment
and job openings in general,
I think people just wanna to be treated like people.
Undeserving of harassment and or deserving of being
properly compensated a living wage.
Then, before we're get to our final story
let's try and cram some more news in here.
We've got a situation currently, where millions
of doses of Johnson & Johnson single jab COVID-19 vaccine
are set to expire this month.
Many States struggling to distribute,
or relocate their supplies.
And you have situations like earlier this week,
Ohio Governor Mike DeWine saying that his state alone
has 200,000 J&J vaccines set to expire on June 23rd.
But, it's also not completely unexpected.
While 64% of US adults have had at least one shot
in their arm, J&J suffers from low public opinion.
Par, because it does have a lower efficacy rate compared
to Moderna and Pfizer.
As well, as you know there was that temporary pause
because there was concerns about potential blood clots.
Then, and some people call me a pessimist,
I think I'm a realist news,
Biden has ended infrastructure talks with Republicans.
I personally don't think it's a big surprise,
but I do wanna note that it's been reported
that there are three main possible pathways from here.
One, a bipartisan deal is not completely off the table
because amid the ongoing negotiations a bipartisan group
of central senators have been quietly working
on an alternative plan in case the talks collapse.
While that's not guaranteed, it does appear
that that's maybe Biden's first choice.
With him yesterday calling three members
of that group to cheer them on.
But if that doesn't work Biden has option two,
trying to forge ahead to pass a deal without any
Republican support in the Senate through
budget reconciliation.
Like the same procedure that he used
to get the stimulus bill through.
At the very least that appears
that Biden is considering this,
because in addition to speaking
with the moderates last night, he also talked
to Senate majority leader Chuck Schumer
about drafting a new budget outline that Democrats
could use for the reconciliation process.
But also, that's not guaranteed to work
especially given that some more moderate senators
like Joe Manchin, voice their opposition
to passing bills without bipartisan support.
And then finally here you have Chuck Schumer
saying that there is a third possible pathway.
Saying that it may well be part of the bill
that will pass will be bipartisan,
and part of it will be through reconciliation.
But we're not going to sacrifice the bigness
and boldness in this bill.
And another news,
this morning President Biden revoked the executive orders
imposed by Trump that sought to ban TikTok and WeChat.
So, with this replacing the policy with a new order
requiring a security review of the apps and others owned
by foreign companies.
And saying, following that review the commerce department
should take action as appropriate.
So these apps and companies
are not completely out of the woods yet,
but we are gonna have to wait to see what happens with them.
And then let's talk about billionaires.
They're just like us, except not in any way.
No, but the reason we're talking about this
is that yesterday morning ProPublica revealed
that it obtained years worth of private IRS tax information
from a number of the country's top 25 wealthiest people.
And this included Jeff Bezos, Elon Musk, Warren Buffet,
Mike Bloomberg, and more.
You know, here's the thing.
It was kind of a bombshell, but also not.
It's not exactly a secret that the systems are in place
to keep the ultra wealthy ultra wealthy.
That billionaires find legal tax loopholes.
But at the same time, it was very interesting
because ProPublica did go on to detail just
how little they paid in federal income taxes.
For example, between 2014 and 2018
Elon Musk's total taxes paid amounted to only 3.27%
of his personal wealth.
With him even paying nothing in federal income taxes
in 2018, even though his wealth grew by nearly $14 billion
during that same time period.
In 2007 and 2011, Bezos paid nothing.
Neither has Bloomberg in recent years.
With ProPublica saying that when you take everything
in this report together it demolishes this myth
that everyone pays their fair share,
and that the richest Americans pay the most.
Your average American household, which earns around $70,000
in wages a year, pays 14% in federal taxes.
You understand that, and then you look at 2018
where the top 25 in America were worth $1.1 trillion.
And so with that, you would take the wages of 14.3 million
ordinary Americans to equal that same amount.
To there you have ProPublica noting that the top 25 only
paid a total of $1.9 billion in federal taxes that year,
while the ordinary workers made $143 billion.
But also with this report and the debate on the topic,
we have seen some pushback.
People noting that most billionaires wealth comes
from assets like stock and property.
There not liquid, the gains are also not taxed
until they're sold.
But there I would say if you actually go through
the ProPublica report they provide a very
interesting argument and kind of showcase
of what billionaires often do.
Explaining if you own a company and take a huge salary
you'll pay 37% and income tax on the bulk of it.
Sells stock and you'll pay 20% in capital gains,
and lose some control over your company.
But take out a loan and these days you'll pay
a single digit interest rate and no tax.
And since loans must be paid back,
the IRS doesn't consider them income.
From there ProPublica gets even further into debate,
also noting that the ultra wealthy loans do not appear
in the tax records that they obtained,
so they are generally not disclosed to the IRS.
But the kind of main picture is a thing that's understood,
the ultra wealthy have a different set of rules.
But actually the main reason that we're talking
about this today is that is not where the story ends, right?
It wasn't just the ProPublica released this article,
now, you know.
It's because, one,
you got Bloomberg spokesperson saying,
"The release of a private citizen's tax returns
should raise real privacy concerns regardless
of political affiliation or use on tax policy.
We intend to use all legal means at our disposal
to determine which individual or government entity
leaked these and ensure that they are held responsible."
Regarding privacy violations, ProPublica has said
that it believes quote "the public interest
in knowing this information at this pivotal moment
outweighs that legitimate concern."
Alongside that, a number of progressive lawmakers
have now used the report to further their calls
for a wealth tax, including senators Elizabeth Warren
and Bernie Sanders.
But, at the same time, we're also now seeing
the Biden administration announcing
that it is investigating the leak.
With white house press secretary, Jen Saki saying,
"Any unauthorized disclosure of confidential
government information by a person of access is illegal
and we take this very seriously."
And so with that, the administration
has now referred the matter to a slew of agencies,
including the IRS, the Treasury, the FBI,
and federal prosecutors in DC.
With in fact, the IRS commissioner
adding that potential criminal prosecutions could follow.
And ultimately with this story or honestly,
anything else that stood out to you today,
I'd love to know your thoughts in those comments down below.
Because one, this is all supposed to be a conversation.
And two, this is the end of today's show.
So as always, thank you for being a part of the family.
Subscribe and like, and all the good stuff.
If you missed any of my shows this week
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or tap links down below to catch up.
But with that said, of course as always,
my name's Philip DeFranco.
You've just been filled in.
I love yo faces and I'll see you tomorrow.