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Massive jobs revision, Kamala wealth tax, polls vs prediction markets, end of race-based admissions

(0:00) Bestie intros! (1:59) Labor department revises down nonfarm payrolls by 818K (15:02) MIT publishes data from first incoming class post race-based admissions ban (36:16) Decision 2024: State of the race, Polls vs prediction markets (52:33) Tale of two tickets: Private sector vs. Public sector (1:05:19) Kamala Harris supports Biden's tax plans, including a 25% wealth tax on those with more than $100M in assets Follow the besties: https://twitter.com/chamath https://twitter.com/Jason https://twitter.com/DavidSacks https://twitter.com/friedberg Follow on X: https://twitter.com/theallinpod Follow on Instagram: https://www.instagram.com/theallinpod Follow on TikTok: https://www.tiktok.com/@theallinpod Follow on LinkedIn: https://www.linkedin.com/company/allinpod 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/2024/08/21/nonfarm-payroll-growth-revised-down-by-818000-labor-department-says.html https://x.com/RealEJAntoni/status/1826290040374243821 https://x.com/DavidSacks/status/1664788807059660800 https://www.statista.com/statistics/269959/employment-in-the-united-states https://fred.stlouisfed.org/series/FEDFUNDS https://polymarket.com/event/fed-interest-rates-september-2024?tid=1724345228774 https://x.com/chamath/status/1826360792351957141 https://www.nytimes.com/2018/06/15/us/harvard-asian-enrollment-applicants.html https://www.natesilver.net/p/nate-silver-2024-president-election-polls-model https://x.com/Polymarket/status/1826469365069271419 https://blockworks.co/news/polymarket-july-all-time-high-trading-volumes https://www.semafor.com/article/08/19/2024/harris-camp-signals-it-backs-biden-bid-to-raise-taxes-on-wealthy-corporations https://www.wsj.com/livecoverage/dnc-election-2024-harris-walz/card/harris-backs-tax-increases-proposed-by-biden-pkuLeYl6f1kXrhN4kWgQ https://www.crfb.org/blogs/kamala-harris-agenda-lower-costs-american-families https://home.treasury.gov/system/files/131/General-Explanations-FY2024.pdf #allin #tech #news

Jason CalacanishostDavid FriedberghostChamath Palihapitiyahost
Aug 22, 20241h 31mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Jobs Mirage, Merit Admissions, and Kamala’s Controversial Wealth Tax Plan

  1. The episode dissects a massive downward revision in U.S. job numbers, arguing it reveals serious flaws in government economic data and strengthens the case for imminent Fed rate cuts. The besties then debate the post–affirmative action admissions landscape using new MIT data, pushing for color‑blind meritocracy, socioeconomic considerations, and de-emphasizing Ivy League credentialism in hiring.
  2. They dive into Election 2024, comparing polls versus prediction markets, and frame the race as a clash between a public‑sector–only Democratic ticket and a private‑sector‑savvy Republican ticket. The conversation culminates in a detailed critique of Biden–Harris tax proposals—especially a 25% unrealized gains “wealth tax”—warning it would be practically unworkable, economically damaging, and likely to accelerate capital and talent flight.
  3. Across topics, the through‑line is distrust of brittle institutions (BLS data, admissions offices, polling, and federal budgeting) and an argument that incentives, free markets, and genuine merit—not engineered outcomes—are what ultimately drive prosperity.

IDEAS WORTH REMEMBERING

5 ideas

Massive jobs revision exposes fragility of official economic data

The BLS revised nonfarm payrolls down by 818,000 jobs for the year ending March 2024, and total downward restatements over ~12–14 months may exceed 1.2 million jobs. The besties argue this pattern of one‑direction (always downward) revisions undermines trust in headline reports and means market participants have been trading billions on data that later prove inaccurate. They call for modernized, possibly crowdsourced or payroll‑system–based measurement to make U.S. labor stats as real‑time and reliable as financial markets require.

Weakening labor picture likely forces the Fed toward rate cuts

With unemployment drifting above the Fed’s 4% target and inflation near a “2‑handle,” Friedberg cites market-implied odds of 75–100 bps of cuts by year‑end. Chamath suggests the jobs revision materially increases the justification for a 50 bps cut in September. Sacks warns the economy is already being “narrowly kept out of recession” by ~US$2T annual deficits, arguing this is an unsustainable way to maintain a soft landing.

Post–affirmative action, elite schools should focus on mission, not demographics

MIT’s first race‑blind class shows Asian‑American enrollment increasing from 41% to 47%, with declines in Black and Latino shares, igniting debate about fairness. Chamath argues admissions should target students obsessed with MIT’s core disciplines (physics, engineering, hard sciences) rather than applicants seeking a credential. Sacks and Friedberg endorse a color‑blind meritocracy that may still weigh socioeconomic hardship, while warning that past quota‑like engineering hurt talented Asian students and that race is a poor proxy for disadvantage.

Stop overvaluing Ivy credentials; hire for performance and practical experience

The panel criticizes “top school” fetishization, contending many public tech schools (e.g., Virginia Tech, NC State, Waterloo, Drexel, Iowa State) produce hungrier, less ideological, more technically strong graduates. They champion co‑op and apprenticeship models that integrate real work with study, and cite GitHub, real project portfolios, and performance in the job as better signals than brand‑name diplomas. In their own companies and funds, they deliberately recruit from non‑elite schools and train talent internally.

Prediction markets and polls are probabilistic tools, not crystal balls

Friedberg emphasizes that both polls and betting markets give probability distributions that are constantly updated as events and information change—they’re not binary guarantees. Nate Silver’s models weight pollsters by historical accuracy and run thousands of simulations; prediction markets reflect bettors with skin in the game but can be thin and manipulable in low‑liquidity races like VP picks. Sacks uses markets more to track sentiment shifts (e.g., Polymarket swinging back to Trump even during the DNC) than to treat them as deterministic forecasts.

WORDS WORTH SAVING

5 quotes

If the revisions were completely neutral and arbitrary, you’d expect it to be like a coin flip… but they’ve all been down.

David Sacks

It’s insane that the largest and most sophisticated economy in the world is this unpredictable… The problem is we have bad data.

Chamath Palihapitiya

Gender, race, all that other stuff shouldn’t matter… The people that go [to MIT] should actually want to be there for that reason.

Chamath Palihapitiya

The betting markets are some combination of entertainment and gambling. I would not look to these sites as useful directional indicators.

Chamath Palihapitiya

This tax is directed at centimillionaires and billionaires to basically take 25% of what they have… It’s going to put so much cold water on the entrepreneurial market.

David Sacks

Labor Department’s 818,000-job downward revision and reliability of economic dataFederal Reserve rate cuts, inflation trajectory, and macroeconomic softnessEnd of race-based admissions, MIT’s post‑affirmative action class data, and meritocracyCredentialism vs. real skills: co-op models, non-elite schools, and hiring practicesElection 2024: polls vs prediction markets, convention ‘vibes,’ and VP picksPublic‑sector vs private‑sector experience on the Harris–Walz vs Trump–Vance ticketsBiden–Harris tax agenda: unrealized gains wealth tax, corporate tax hikes, and wealth flight

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