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All-In PodcastAll-In Podcast

E58: November's CPI, preparing for a downturn, macro outlook, Better.com's botched layoffs & more

0:00 Bestie Intro: Chamath's happy hour and sweater feud 7:11 Breaking down the new 6.8% CPI number, reflecting on old inflation takes, jobs report, understanding why CPI is misleading 23:05 How growth stocks got overblown, current valuation outlook, government as capital allocators 40:12 Deficit trouble: will another president ever try and balance the budget? Areas of positivity in the economy 50:29 Better.com's botched layoffs, impact of overcapitalization, macro outlook for founders 1:11:16 Lessons from the Jussie Smollett saga Follow the besties: https://twitter.com/chamath https://linktr.ee/calacanis https://twitter.com/DavidSacks https://twitter.com/friedberg Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg Intro Video Credit: https://twitter.com/TheZachEffect Referenced in the show: https://www.cnbc.com/2021/12/10/consumer-price-index-november-2021.html https://www.bls.gov/opub/ted/2021/consumer-prices-increase-6-2-percent-for-the-year-ended-october-2021.htm https://www.marketwatch.com/story/what-powell-must-do-next-after-admitting-that-he-was-wrong-about-transitory-inflation-11638460995 https://www.cnn.com/2021/01/27/economy/inflation-federal-reserve-janet-yellen/index.html https://www.nytimes.com/2021/03/22/opinion/us-inflation-stimulus.html https://www.nytimes.com/2021/03/10/business/economy/inflation-markets-federal-reserve.html https://www.axios.com/inflation-consumers-survey-1932e8d0-b01b-4c39-8fb4-4fdb9a96958d.html http://cdn.cnn.com/cnn/2021/images/12/10/cbo.report.on.build.back.better.pdf https://www.politico.com/newsletters/playbook-pm/2021/11/10/does-the-wh-owe-larry-summers-an-apology-495052 https://www.cnbc.com/2021/12/03/jobs-report-november-2021.html https://twitter.com/BillAckman/status/1469438745791410183 https://www.cnbc.com/2021/06/10/stanley-druckenmiller-fed-lulling-investors-into-false-sense-of-security.html https://www.businessinsider.com/congress-progressives-back-bill-4-day-workweek-remote-work-2021-12 https://youtu.be/-_wvTa8aiu8 https://www.thebalance.com/deficit-by-president-what-budget-deficits-hide-3306151 https://twitter.com/Jason/status/1469370800771715073 https://www.forbes.com/sites/davidjeans/2020/11/20/mortgages-fraud-claims-and-dumb-dolphins-a-tangled-past-haunts-bettercom-ceo-vishal-garg/ https://youtu.be/pXLx5OY21Bk https://youtu.be/wZXoErL2124 #allin #tech #news

Chamath PalihapitiyahostJason CalacanishostDavid FriedberghostVishal GargguestVictim in news clipguestUnidentified brief voiceguest
Dec 10, 20211h 21mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

All-In Besties Debate Inflation, Government Spending, Market Froth, Layoffs, Chaos

  1. The hosts dive into surging U.S. inflation, criticizing the Fed and Biden administration for misreading it as “transitory” and continuing massive stimulus in a now-overheated economy.
  2. They unpack structural labor shifts—the “Great Resignation,” under-immigration, boomer retirements, rising wages, and the rise of solo entrepreneurship and the creator economy—alongside asset bubbles in tech, crypto, and housing.
  3. The conversation turns to capital allocation, arguing private innovators like Elon Musk deploy capital far better than government, and warning founders about over-raising and over-growing in a changing macro environment.
  4. They close by dissecting Better.com’s viral Zoom layoffs as a symptom of SoftBank-style hyper-growth incentives, and the Jussie Smollett case as an example of media rush-to-judgment versus a court system that, in their view, often still gets it right.

IDEAS WORTH REMEMBERING

5 ideas

Inflation is higher and more persistent than official CPI suggests.

They argue the CPI understates reality—especially housing via owners’ equivalent rent—and note that single-family rental data imply true inflation could be near or above 10%, not 6.8%.

Current fiscal policy is misaligned with an already-stimulated economy.

With trillions already spent on COVID relief and infrastructure, they see Build Back Better as an unnecessary, gimmick-laden bill that will quietly become permanent, worsen deficits, and force harsher Fed tightening.

Founders must rethink growth plans in light of tightening liquidity.

As the Fed signals faster tapering and rate hikes, public growth stocks and crypto have corrected 30–40%; they advise startups to secure extra runway now, assume lower future valuations, and distinguish value from valuation.

The labor market is undergoing a structural reset, not just a “worker shortage.”

Under-immigration, boomer wealth and early retirements, debt-laden degree holders, and better alternatives (Amazon warehouses, creator economy, new LLCs) mean low-wage, low-quality jobs must radically raise pay or automate.

Government is a poor capital allocator compared to top entrepreneurs.

Quoting Elon, they argue leaders like Musk reinvest capital into high-impact innovation (EVs, rockets), while governments, as ever-growing organisms, face weak incentives and political distortions that produce waste.

WORDS WORTH SAVING

5 quotes

It does not make sense to take the job of capital allocation away from people who have demonstrated great skill in capital allocation and give it to an entity that has demonstrated very poor skill, which is the government.

Elon Musk (quoted by the hosts)

You cannot get confused that value and valuation are not the same thing.

Chamath Palihapitiya

The amazing thing right now is every investor I know is having the same conversation: what are interest rates gonna do, how much liquidity will that suck out of the system, and how much of the boom was just unnatural liquidity?

David Sacks

The incentive for the big investor is quite different than it is for you. They don't care if you die as long as one out of ten goes 100x.

David Friedberg

Moderate is as moderate does. He has not governed like a moderate.

David Sacks on President Biden

November CPI print, true inflation vs. “transitory” narrative, and flawed CPI methodologyMassive fiscal stimulus (COVID relief, infrastructure, Build Back Better) and federal debt/deficit concernsLabor market dynamics: Great Resignation, wage inflation, under-immigration, boomers retiring, and new company formationAsset bubbles and correction in growth stocks, SaaS, crypto, and housing amid changing Fed policyGovernment vs. private-sector capital allocation (Elon Musk, Bitcoin, and the “Horn of Plenty” analogy)SoftBank-style hyper-growth incentives, Better.com Zoom layoffs, and founder/VC incentive misalignmentMedia behavior, justice system outcomes, and public reaction in the Jussie Smollett and high-profile court cases

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