No Mercy / No Malice: After The Fires

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0:01:08 – I’m Scott Galloway, and this is No Mercy, No Malice.
0:01:12 The LA wildfires appear to be subsiding.
0:01:15 What lessons will we take from this crisis?
0:01:18 After the fire, as read by George Hahn.
0:01:29 – My hometown of Los Angeles is experiencing wildfires
0:01:31 that have torched a surface area
0:01:34 greater than Boston or San Francisco.
0:01:37 Students at UCLA, my alma mater,
0:01:40 were warned to prepare for an evacuation order
0:01:43 that thankfully didn’t come.
0:01:44 Friends lost homes,
0:01:47 others don’t know if their houses are still standing,
0:01:48 or they’re contemplating moving back
0:01:50 to what feels like a blast zone.
0:01:56 At least 12,000 structures have been destroyed.
0:01:58 The death toll stands at 25,
0:02:00 given the scale of the disaster
0:02:02 that is remarkably low in a testament
0:02:05 to the good work of frontline responders
0:02:06 and the broader community.
0:02:09 The LA fires will likely go down
0:02:14 as the costliest natural disaster in U.S. history.
0:02:18 The question now, what happens after the fire?
0:02:22 The first rule of fires is simple.
0:02:25 Everyone works together to put out the fire,
0:02:27 as fire is apolitical, unemotional,
0:02:30 and does not discriminate.
0:02:33 But just as electric cars go from zero to 60,
0:02:36 faster than cars with combustion engines,
0:02:40 digitized information accelerates from zero to blame
0:02:42 much faster than analog media.
0:02:46 Immediately the left claimed it was climate change
0:02:48 and blamed Republicans.
0:02:50 Maybe, or perhaps you’re tempting fate
0:02:53 when you build hundreds of thousands of tinder boxes
0:02:56 in a desert where high and low pressure systems collide
0:02:59 to create tidal waves of hot air,
0:03:01 i.e. the Santa Ana winds.
0:03:05 First lady-elect Elon Musk blamed DEI.
0:03:08 The shit-poster-in-chief, Donald Trump,
0:03:10 blamed California Governor Gavin Newsom
0:03:15 for failing to sign the Water Restoration Declaration,
0:03:19 providing much-needed water to emergency services.
0:03:24 The problem, A, that declaration does not exist.
0:03:28 In local news, the billionaire real estate developer
0:03:32 who lost in LA’s most recent mayoral election
0:03:35 blamed the city for fire hydrant failures
0:03:37 in Pacific Palisades.
0:03:40 The system was pushed beyond its limits,
0:03:42 as water demand was four times normal demand
0:03:45 for 15 plus hours.
0:03:48 Note, the people screaming the loudest
0:03:50 about wasteful government spending
0:03:53 are always the first to demand government help in a crisis.
0:03:58 LAFD Chief Kristen Crowley took time out
0:04:01 from fighting the fires to blame Mayor Karen Bass
0:04:06 for cutting $17.6 million from the department’s budget.
0:04:10 The department’s $895 million budget
0:04:14 actually increased by $58 million
0:04:17 as a result of the latest union contract.
0:04:19 To get that higher pay to firefighters,
0:04:23 the department reduced spending on equipment and training.
0:04:27 The mayor’s response added to the drama,
0:04:30 fueling rumors that the chief had been fired.
0:04:34 Right-wing podcasters blame Fire Chief Crowley’s gayness,
0:04:36 saying she was a DEI hire.
0:04:40 Note, she has outstanding qualifications.
0:04:43 We’ve become stupid,
0:04:45 hurting others while hurting ourselves
0:04:50 with algorithms and politics that reward divisive rhetoric.
0:04:52 Both sides engage in this,
0:04:54 but the right is louder and bolder,
0:04:57 i.e. more full of shit than the left.
0:04:59 It’s far more likely that climate change
0:05:03 played a role in the fires than China, Ukraine, or DEI.
0:05:08 Contrary to viral claims on social media,
0:05:11 the Hollywood sign didn’t burn down.
0:05:14 One clue that the AI-generated images were fake,
0:05:17 an extra letter making it hollywooded.
0:05:21 Adjudicated liar Alex Jones falsely claimed
0:05:24 that firefighters were battling the blazes
0:05:27 using ladies handbags as buckets
0:05:31 because officials had donated their equipment to Ukraine.
0:05:36 His post on Twitter, X, has 29 million views.
0:05:39 As an LAFD public information officer
0:05:42 told the Wall Street Journal, quote,
0:05:44 “It takes people and time to track down
0:05:47 “or debunk social media rumors.
0:05:50 “It takes us away from doing more important things,” unquote.
0:05:54 By coincidence, the fires began the same day.
0:05:59 Mark Zuckerberg, the Immortan Joe of the Information Wasteland,
0:06:02 announced that Metta would end fact-checking
0:06:05 and replace the program with community notes.
0:06:08 Zuckerberg cited free speech.
0:06:13 His decision was about bending the knee and shareholder value.
0:06:15 Zuck also made a stupid comment
0:06:19 about companies needing more masculine energy.
0:06:22 He believes masculinity is increasing your personal wealth
0:06:25 by sacrificing the safety of the most vulnerable.
0:06:30 No, masculinity is about protecting the vulnerable.
0:06:33 See aerial firefighters demonstrating expertise
0:06:37 at enormous personal risk to save lives and protect homes.
0:06:41 Twice, LA County officials mistakenly sent
0:06:44 evacuation alerts to 10 million people.
0:06:48 Those were potentially dangerous errors.
0:06:51 Old school local broadcasters corrected these mistakes
0:06:55 in real time, heading off a catastrophic panic.
0:06:59 Meanwhile, WatchDuty, a non-profit app
0:07:02 that tracks emergencies and sends real-time alerts,
0:07:06 has had two million downloads since the fires began.
0:07:09 It’s currently available in 22 states,
0:07:12 operating with a team of 200 volunteers
0:07:15 and 15 full-time employees.
0:07:19 Unfortunately, local news is in short supply across the US.
0:07:23 Over the past decade, there have been $23 billion worth
0:07:26 of broadcast TV ownership deals,
0:07:27 further concentrating an industry
0:07:32 in which the three largest owners already control 40%
0:07:35 of all local news stations and are present
0:07:38 in over 80% of media markets.
0:07:43 Zooming out to include print, radio, and digital,
0:07:45 more than half the counties in the US
0:07:49 have little or no access to local news.
0:07:54 Most of these news deserts are located in high-poverty areas
0:07:57 and serve historically marginalized communities.
0:08:01 People say digital media gives everyone a voice.
0:08:04 Maybe, but digital media has definitely
0:08:06 drowned out actual journalists.
0:08:11 The question isn’t whether to rebuild, but where.
0:08:16 Pacific Palisades is a wonderful place to live,
0:08:20 but those amazing views of beautiful topography
0:08:23 of foothills, mountains, canyons, and ridgelines
0:08:26 are located in fire zones.
0:08:30 Early estimates put the total cost of the wildfires
0:08:35 at $250 to $275 billion.
0:08:37 The property insurance bill is expected
0:08:39 to easily top $20 billion.
0:08:44 California’s insurance market was already in crisis
0:08:46 as leading insurers had done the math
0:08:47 and decided to leave the state
0:08:51 or not renew policies in fire prone areas.
0:08:54 California’s state-backed FAIR plan
0:08:58 is the insurer of last resort in these areas.
0:09:02 State-wide, the number of FAIR plan policies in 2024
0:09:05 increased 40% from 2023
0:09:10 and 85% in Pacific Palisades.
0:09:13 Continuing to underwrite wood-built craftsmen homes
0:09:17 in Altadena, median home value $1.3 million,
0:09:21 and mansions along the Pacific Coast Highway
0:09:24 is a wealth transfer from California’s taxpayers
0:09:26 to some of its wealthiest people.
0:09:30 This isn’t unique to California.
0:09:32 10 states across the political spectrum,
0:09:35 including Florida and Texas,
0:09:38 sued a federal flood insurance program
0:09:39 after it adjusted premiums
0:09:42 to better reflect climate realities.
0:09:44 As one meme put it,
0:09:46 you may not believe in climate change,
0:09:48 but your insurance company does.
0:09:55 Governor Newsom has proposed a $2.5 billion Marshall plan
0:09:58 to kickstart rebuilding.
0:10:01 That emotionally feels right.
0:10:03 However, I’d argue it is, yet again,
0:10:07 a transfer of wealth from the middle class to the rich
0:10:09 under the auspices of a tragedy.
0:10:13 COVID caused the greatest intergenerational theft
0:10:15 this century, flushing the markets
0:10:19 with $7 trillion in stimulus,
0:10:21 85% of which wasn’t needed,
0:10:24 but sent asset prices soaring.
0:10:27 This was great for the incumbents,
0:10:29 home and equity owners,
0:10:31 and awful for entrance,
0:10:34 the young who will have to pay for our largesse
0:10:37 via deficits.
0:10:39 The median value of a home in the Palisades
0:10:42 is $3.3 million,
0:10:45 or eight times the national median.
0:10:48 I’m not arguing against disaster relief,
0:10:52 but against the continued gestalt in our society
0:10:55 where we always find a narrative and empathy
0:10:56 to bail out the rich
0:10:58 while throwing some loaves of bread
0:11:00 and a circus at the poor.
0:11:02 I live on the water in Florida,
0:11:07 where insurance rates have skyrocketed as they should.
0:11:10 Homes vulnerable to the floods and wildfires
0:11:14 caused by climate change tend to be in beautiful areas,
0:11:17 on the water or in hilly dry climates.
0:11:21 I don’t believe anybody has a birthright to live there,
0:11:23 and the risks or costs of doing so
0:11:25 shouldn’t be transferred to people
0:11:27 who can’t live on the beach.
0:11:31 Also, will we ever get serious about climate change
0:11:35 if we normalize, i.e. bail out the powerful
0:11:38 who are the agents of change in a capitalist America?
0:11:42 Los Angeles will be rebuilt,
0:11:44 as it’s wonderful and worth it,
0:11:47 regardless of who ultimately bears the cost.
0:11:51 After the 1991 Oakland fire,
0:11:53 eight out of 10 residents rebuilt.
0:11:57 After disasters, most people decide to stay.
0:11:59 The project, however,
0:12:03 will put Trump’s biggest policies under the microscope.
0:12:07 Trump has vowed to deport millions of people.
0:12:09 I’ve written that we won’t do that
0:12:13 as immigrant labor is too profitable.
0:12:17 In LA, 28% of the construction workforce
0:12:19 is undocumented.
0:12:23 Trump’s tariff plan, 60% on goods from China,
0:12:26 20% on everything else the U.S. imports,
0:12:30 is an elegant way to turn a no-brainer building boom
0:12:33 into an own goal that’ll make us nostalgic
0:12:35 for COVID supply chain disruptions
0:12:38 and post-pandemic inflation.
0:12:39 My prediction?
0:12:42 Trump will turn against his plans,
0:12:45 blame someone else for his fatuous ideas,
0:12:48 and declare victory while standing next to James Woods
0:12:50 at a groundbreaking ceremony in LA.
0:12:55 I donated to several charities
0:12:59 and GoFundMe campaigns in the aftermath of the fires.
0:13:02 To its credit, GoFundMe has raised millions
0:13:05 for people affected by the catastrophe.
0:13:07 Since its founding, the for-profit firm,
0:13:11 last valued at $600 million in 2015,
0:13:16 has processed $30 billion in crowdfunding.
0:13:19 That’s a lot of cabbage for GoFundMe.
0:13:23 I paid a 14% fee to donate.
0:13:25 An LA county supervisor complained
0:13:28 about the same 14% charge.
0:13:31 The company’s VP for communications reached out to me
0:13:34 to clarify that its standard transaction fee
0:13:37 is 2.9% plus 30 cents
0:13:40 and insisted that tipping is optional.
0:13:44 However, the tip option is the default
0:13:47 and I have about as much choice as the service charge
0:13:50 on a bill at a Miami restaurant.
0:13:52 GoFundMe needs to be more transparent
0:13:55 that tips are optional and opt in.
0:13:57 That’s how tipping works.
0:14:00 And if the organization really wants a tip, here it is.
0:14:02 Don’t treat your customers like assholes
0:14:05 and claim an opaque charge is optional.
0:14:10 Neighbors are helping neighbors.
0:14:11 Mexico didn’t send their best people,
0:14:15 they sent some of their bravest, i.e. firefighters.
0:14:19 Canada and seven western states, including Texas,
0:14:20 also send aid.
0:14:24 Across Los Angeles and beyond,
0:14:26 businesses and regular people didn’t ask
0:14:29 if help was needed, they just showed up.
0:14:31 My personal favorite, the street vendors
0:14:35 who turned the Rose Bowl and Santa Anita Park racetrack
0:14:38 into donation centers.
0:14:41 Honorable mention, the 900 plus incarcerated
0:14:44 volunteer firefighters working on the front lines
0:14:46 for $10 a day.
0:14:49 As one of them explained, for the first time in his life,
0:14:53 he has a job and the community values his contributions.
0:14:55 We should give the same opportunity
0:14:58 to every young American by investing
0:15:00 in a national service program,
0:15:02 as it would benefit every community in the country.
0:15:08 I’ve been thinking a lot about love the past decade,
0:15:10 as I’m not that good at it.
0:15:14 I’ve had few people in my life who my loved and loved me.
0:15:17 My definition of love used to be caring
0:15:21 about someone’s well-being more than my own.
0:15:22 This misses the mark, however,
0:15:25 as it would mean I only love my immediate family,
0:15:27 which I don’t think is true.
0:15:32 A better definition, love is giving witness
0:15:36 to someone’s life, to notice them
0:15:38 and their lived experience.
0:15:40 My friend, Rabbi Steve Leder,
0:15:43 said something that hit hard this week.
0:15:46 Calling people and asking if you can help,
0:15:49 what I was doing, is the wrong thing to do.
0:15:51 The right thing?
0:15:52 Just help.
0:15:55 Pick up their dogs, drop off food,
0:15:58 send a photo of the room in your house they can stay in.
0:16:00 Why are them cash?
0:16:02 Don’t ask, do.
0:16:06 Are there people in L.A. you love?
0:16:08 Then give witness to their life,
0:16:09 notice what would help.
0:16:15 Don’t ask, just give witness, notice and love them.
0:16:21 Life is so rich.
0:16:25 (gentle music)
0:16:27 (gentle music)
0:16:30 (upbeat music)
0:16:32 you