Pivot - 2021: Pivot's Year In Review
Episode Date: December 28, 2021Kara and Scott look back at the biggest news of 2021. From the Capitol insurrection to the Facebook Files, 2021 was chock full of wild events, big personalities, and strange happenings. Join us as we ...unpack one of the longest years, ever. Learn more about your ad choices. Visit podcastchoices.com/adchoices
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Hi, everyone. This is Pivot from New York Magazine and the Vox Media Podcast Network.
I'm Cara Swisher.
And I'm Scott Galloway.
Today's a special day, Scott. We take a look at all the chaos and insanity of 2021.
And there was a lot. From billionaires in space to hell on earth, we're looking back at one of the wildest years in recent memory. And at the end, we'll pick the biggest pivot from the last
12 months. This is 2021, the year in review. This year's first news event may also have been
its biggest. It was its biggest, the insurrection of January 6th. Treason! Treason! Treason! Treason!
In the aftermath of the attack on the Capitol,
a lot of Americans were angry.
Scott was among them.
The physician for Congress,
they have a physician, I guess, sent out a memo, an email saying
that there's a chance,
you should all get tested,
because there's a chance
when you are all huddling on top of each other,
hiding and barricading yourself,
that you might have contracted COVID because certain members of Congress refused to wear masks.
I know, in the room.
They were being begged to by other people.
People huddling are elected officials.
And when you think about it, these people, they aren't elected officials.
They're America.
They call the U.S. House of Representatives for a reason.
Yeah.
elected official they're america they call the use of u.s house of representatives for a reason yeah yeah we as a nation had to huddle on top of each other and barricade our doors with furniture
because yeah because of these these village idiots that showed up yeah and not just village
idiots we're going to talk about that more but by the way the people it doesn't get enough attention
i'm going with the people who the representatives who refuse to wear masks they can go fuck
themselves in this crisis situation, this is
they've moved to ridiculous. Can you believe that?
They're an embarrassment to the United States government.
Can you believe that? Not just an embarrassment. They should be
voted out. They will be, I don't know if they'll
be voted out of office, but let me just say,
fuck them. After the insurrection,
Facebook and Twitter clamped down on QAnon
content and accounts, but one platform
stood firm, Parler.
Cara interviewed then-CEO John
Mates for the New York Times. He denied any responsibility soon after Google and Apple
pulled the app from their stores and Amazon stopped hosting Parler. Let's be clear. Jack
Dorsey did not kick Trump off the platform. Mark Zuckerberg did not shut his account down.
Stacey Abrams did. Yeah. All of a sudden, these people have woken up. And okay, I want to be clear.
Let's give credit where credit is due.
Jack Dorsey decided to stop hate, polarization, and insurrections 1,449 days into a 1,460-day tenure.
Way to go.
Way to go, Jack.
And just to personally just—
Yeah, it was a little late.
Yeah.
We were talking about this this morning.
That was a little late.
Yeah.
We were talking about this this morning.
If I come home after being on vacation for two weeks and I see my son vacuuming the living room, your first inclination should be, oh, that's great.
He cares about the house and wants to be a good guy.
No, he's not.
No, he's not.
He's thrown a rave and has been selling meth and molly for the last two weeks out of the house and is trying to cover his tracks.
Yeah. And that's what these guys are doing. there's a lot of tweets about that yeah flushing drugs
around the toilet when a hundred when a new this is lorraine brocco trying to like cover up the
evidence they deserve absolutely no credit so okay first off first off stacy abrams kicked
trump off these platforms and not only that amazon by- By winning in Georgia, meaning the Democrats have control-
Sit back. You're going to love this because it's about you. Amazon, Jeff Bezos didn't kick Parler
off AWS. Kara Swisher did. Because that interview with him that you did pointed out this guy
is the newest addition to the menace economy. And people have realized that, wait, Japan and Europe,
they decided that Nazis are a bad thing,
and they can lead us down, and hate speech can lead us down a bad road. So they don't have the
same First Amendment, quote-unquote, protections that we so dearly hold and have been totally
perverted, which make absolutely no sense. And guess what? They still have a pretty free,
open, progressive society where people get most of their viewpoints across,
and everyone realizes that is just total bullshit.
As we discussed free speech and social media,
my son, Louis, brought up an important point,
which is only more relevant today
now that Trump's launching his own social network.
He's probably going to go over there to other sites.
Should there be a fully free speech platform?
I mean, doesn't 8chan exist?
Yeah.
4chan?
Yeah.
I think that there already are places for that.
So I think, yes, I think people have the right to say what they want,
but I don't think they have the right to be free of the consequences of what they say.
There's always, you know, if you threaten someone, there should be consequences.
If you speak ill of someone, you may have to speak to that person or something.
But I think Trump is, there's always going to be a slot on Fox News for Donald Trump.
So I think he'll find places to go, whether it's Fox, OAN, Breitbart, other platforms
who will hear what he has to say, regardless of, you know, if he's banned from Twitter.
But I think being on mainstream platforms and holding a mainstream, you know, standing on a box in the public square and, you know, like a respected box, you know.
Right.
It gives him an elevated voice that I think he no longer deserves.
In the time since the insurrection, Trump has been removed from all social media platforms.
Prosecutors have charged more than 650 people.
By the way, remember that Jamirakoy guy? Ends up he lived with his mother. Good news, he's moving out into a fucking cell,
you piece of shit. And at least 105 people have pleaded guilty. A House committee continues to
investigate as well. Also, Trump has announced that he will launch his own social network,
Truth Social. I'm calling it the Big Short.
social. I'm calling it the big short.
Facebook is no more. Well, kind of. Facebook rebranded to meta earlier this year as it hoped to escape its toxic reputation that's plagued it since well before 2021. But this
year saw challenges unlike anything Facebook has ever faced. Facebook's first fumble of 2021 came
immediately after the insurrection when Sheryl Sandberg claimed that the Stop the Steal event
was planned on other platforms.
The claim was quickly shot down.
Many people think she was inaccurate.
Scott, care to rant?
Go for it.
Well, yeah.
I want to yell.
I need you to yell at the person.
Yeah, I'm not going to yell.
As Ms. Sandberg claims that, you know, pats herself on the back saying that because of her transparency,
it wasn't her platform.
No sooner does she say that than they are taking ads for military vests
and basically combat wear right above content around the insurrection.
So what you're missing, planning to head back?
Are you part of the mob?
Well, buy this military
vest i mean that's that is for me that sort of typified more than that there was lots of proof
that they organized on facebook too of course there is but the thing i'm uncomfortable with
and there's a lot to unpack here is that when we have insurrection when we have a a potential coup
the way we meet out justice in our society now is that Kayak and Caviar
cancel as a count. That's how we beg our innovators. We beg our overlords. That's
the position we're in. And in April, a massive trove of Facebook user data landed on the dark web.
That same month, a new iPhone feature lets users opt out of tracking by Facebook and other apps.
We're going to talk about this in a minute, but Facebook is at an all-time high, right?
The stock's at an all-time high.
So it doesn't really matter what Tim Cook does or thinks about them because nobody seems to care.
Until the government gets involved, even though they're going to do this, I think it's ATT, something transparency thing.
Nothing's going to happen to him.
And so Cook is just going to push ahead with this thing where you get to click that you're being tracked essentially or not.
And I don't know how much it's going to affect Facebook.
And he said he's not thinking about them at all.
He thinks it's a flimsy argument to argue that it's anything but privacy matter.
You know, that it's, he doesn't understand why there's so much pushback
from them and others.
So, you know, I think they're just,
and he also said they're not competitors.
He doesn't consider them competitors.
They are sort of,
like what I said on CNBC this morning,
weird roommates that don't like each other.
They have to sort of coexist
because, you know,
Facebook's one of the most popular apps on the iPhone.
And at the same time,
and so is Instagram and all the others.
And then at the same time, they need Apple to be popular, right?
So it's a weird, bad relationship between them.
But they're moving forward on this effort to make people say they want to be tracked, essentially opt into it.
So let me just press pause there. Sure.
My sense is that he's in a room saying, we're going to put that motherfucker out of business.
I don't know about that.
And that that's what they're doing. And that to de-cookie or whatever it is such that
Facebook cannot track people across multiple platforms is basically saying, okay, we're going
to go in and we're going to take
out your liver. And you can function as a human for a little while without a liver, but effectively,
I mean, they've gone in. If they accomplish this, they take the most valuable consumer base in the
world, which is iOS users, and they make them dramatically less valuable to Facebook.
Yes, they do.
In July, as coronavirus numbers surged, Facebook was once again accused of spreading
misinformation, but this time by the president of the United States. Facebook and President Biden
are facing off over vaccine misinformation this past Friday. Biden was asked about the role of
social media in influencing vaccinations, and his response was unusually strong. They're killing people. I mean, it really felt, look,
the only pandemic we have is among the unvaccinated.
And they're killing people.
Facebook fired back on Saturday in a blog post
saying the Biden administration was, quote,
"'Finger-pointing'," and that Facebook was not the reason
Biden's goal of 70% vaccination was missed.
On Monday, Biden reversed course
and said Facebook isn't killing people,
though the president walked back to his most aggressive comment. He reiterated that he hopes
Facebook does something about the misinformation. It was kind of fascinating. He did push it too
far. It was interesting. Let me just start. I interviewed Ron Klain, who started to raise this
idea a couple of weeks ago on a podcast I did with him and saying Facebook's always the person
the company mentioned when people talk about misinformation when they're doing their polling. Then Jennifer Psaki said
something, and then the Surgeon General did. And then for some reason, Biden went out there and
was doing the come on man thing. Like, come on, man, they're killing people. And so it may have
been a little much. I wrote a column saying it was probably a little much. But nonetheless,
what do you think? Look, I've said this nine times, so I'll say it a 10th
time, and I've been wrong every time. I think this is Facebook jumping the shark. Facebook
basically said, first off, they found this VP of integrity. They strapped a bomb. He's been there
a long time. They strapped a bomb to his chest and said, hey, you're a hero. Go out there and
say that the Biden administration, this is what they said about the Biden administration,
that they were trying to find scapegoats because of their failed vaccine strategy. That is basically, that is telling the president of the United States
and the U.S. government that on the most important issue they have and will face,
they are failing six months into their presidency. I don't think they ever said
anything that aggressive about Trump. I don't think they've accused President Xi of finding scapegoats.
So the calculated decision here was they strapped a bomb to this kid's chest or put him in a kamikaze plane and said, go out there and clap back really hard at the administration.
And for the life of me, Kara, I can't figure out how this was anything but a ridiculously stupid fucking move on the part of Facebook. Biden eventually walked back those
comments. In August, Facebook released a report showing its most viewed content. Instead of
misinformation, much of it was innocuous. But according to Casey Newton, things weren't quite
what they seemed. Yeah, I mean, look, I don't want to dunk too hard. I appreciate when Facebook
makes data available, but this is not the data that anyone was looking for.
Thank you, sir. Can I have some more? But go ahead.
Yeah. Well, it's like what we want to know is what stories are popular on Facebook right now. You can
measure popularity in a bunch of different ways. They bought a tool called CrowdTangle
that lets you see the posts that are getting the most engagement, but they hate it because they say
that the posts that are getting the most engagement, but they hate it because they say that the posts that are getting the most engagement are not the most popular and
that what you really want to know is, well, what posts were viewed the most?
And so that was the point of yesterday's report.
But whereas CrowdTangle is a real-time tool, this is going to be a once every four months
report.
How much can we really learn by knowing that the most shared domain on Facebook over the
past four months was YouTube.com? They're not telling us individual YouTube videos. It's just sharing most shared domain on Facebook over the past four months was youtube.com.
They're not telling us individual YouTube videos. It's just sharing YouTube is popular on Facebook,
which any of us could have guessed, right? You look at some of the other most popular links,
they're basically spam, like people who are sharing popular memes and then attaching a URL to,
in one case, a speaker's bureau of former Green Bay Packers players. This is not helping me understand what is on Facebook.
Well, I think it's done very clearly to show,
look, we're not that, we're just silly.
We're just cat videos.
It's sort of the cat video move, essentially.
Yeah, and I mean, this sort of goes hand in hand
with the other big tech company move,
which is to only talk in terms of percentages, right?
Where it's like, you know, Facebook and YouTube love to do this.
Well, only 3% of views, you know, were of fascism.
And you're like, okay, 3% of views is, you know,
tens of millions of clicks. So again, you know, glad to see a little bit more data,
but we need to keep pushing for the data that would actually be useful.
We later learned that Facebook shelved an earlier version of that report because it
showed vaccine misinformation was popular on the network.
And if all of that wasn't bad enough, it is bad enough. In October, Facebook became the subject of the year's biggest tech story. What do you know? Again, the Facebook
files. In a slew of damning stories, the Wall Street Journal reported on Facebook's lax rules
for celebrities, its permissive behavior towards drug cartels, its push to get children onto the
platform, and more, including teen depression and generally just not giving a good goddamn about
anything regarding our commonwealth.
But I digress.
But one story resonated above all.
Facebook's own data reflected that Instagram was harming teen girls.
But they have found internal Facebook research that showed that 32% of teen girls said that they felt bad about their bodies.
Instagram made them feel worse.
Facebook knows this.
Mark Zuckerberg reportedly learned about it in 2020,
although we've been talking about it for a long time.
Adam Masseri, the head of Instagram,
issued a statement saying,
the story focuses on a limited set of findings
and casts them in a negative light.
That's right, Adam.
It does, because it's negative.
The comments from him are just appalling,
as far as I'm concerned.
He made several.
Well, he's taking a page out of Sheryl Sandberg.
I'm proud of the progress. He tried to do this gymnastic move. It took us too
long to understand this. Scott, I'm going to let you rant here. Please go. Well, as society,
Peter Drucker said that an economy exists to create a middle class, and that's the balance
of an economy economically. But from an anthropological or from a spiritual or from a
but from anthropological or from a spiritual or from a instinctual standpoint,
the most rewarding things in our lives
are our ability to provide a safe
and loving environment for our children.
And when that does not happen,
when one in eight UK girls
who are contemplating suicide highlight Instagram
as the primary reason they have started contemplating suicide highlight Instagram as the primary reason they have started contemplating
suicide? Facebook hasn't failed. We have all failed. I mean, this is, what could be more
serious than an uptick in teen depression, self-harm, and suicide that can be reverse
engineered to a corporation,
and we haven't done anything about it, that we've let this happen.
I mean, we haven't stopped Facebook, is what you're saying.
We haven't moved in. I think at some point, you got to start holding ourselves responsible,
and our elected leaders responsible.
But let's focus on Facebook for a minute. They knew this research. Look, this is research that's
been out, and a lot of people are suggesting that everybody knows it.
But here they are just doubling down on it.
They're supposed to put Instagram for kids out.
They aren't acknowledging what the problem is.
Can you believe that?
Yes.
Yes, I can.
You've got to admire their gumption.
I can.
They write everything down because they're proud of it.
And 44 states have asked them not to.
And that's where we are.
States ask Facebook not to do something.
Right, right.
So this obviously could apply to other people, not just teen girls, but teen girls are very vulnerable.
Instagram already does warn users who view tags like anorexia and directs them to seek help.
But I think one of the things you've talked about a lot is envy and depression are just built into this.
It's not fixable.
It's not the way it is.
I asked my kids about this last night, actually, and they're like, I see people on there and it makes me feel bad about myself.
Like, you know what I mean? Like, they're pretty confident as people, but it's-
A third of girls under the age of 22 and 40% of the users are under the age of 22
cite that it makes them feel worse about their bodies.
Yeah. Yes. That's what one of my kids was saying that.
Mm-hmm.
I just find it so, I agree with you that Mark Zuckerberg is ultimately responsible, but they have deployed Sheryl Sandberg around this notion around saying she has incredible gravitas and a lot of it is deserved around being presented and built by 900 people in their communications department as a real champion for women.
And then she talks about personal loss.
And the comment I thought that ran through my mind was, and I like the stuff she said
about her kids and dealing with grief, is they need a safe space to grieve.
And I thought, where is our children's safe space from her and Mark Zuckerberg?
The documents behind the journal's story soon made their way to other publishers,
thanks to whistleblower Frances Haugen. Further reporting showed Facebook struggling to moderate
content overseas, employee dissent, and greater failures around January 6th.
As the bad press mounted, Facebook pulled a Hail Mary. They rebranded to,
what a coincidence, Meta.
We're not going to play a clip from that episode because it's a cosmetic change.
Giving it any more attention is exactly what they'd like. The issues remain unresolved, and we're still going to call it Facebook from time
to time. Ha, that'll show them. That'll show them. 2021 was a big year for billionaires. We'll talk
about Elon Musk later, but in some ways, this was the year of Jeff Bezos. In February, he announced
that he was stepping down as Amazon's CEO. Scott and I considered his legacy.
So before we even get to that, though, I do think it warrants a moment of recognition that Jeff Bezos, his career, look, no one man in history has taken a company from zero to 1.7
trillion. No one person has established a recurring revenue
relationship with 82% of households.
No one person has had a company hire
a half a million people in one year.
No one person has revolutionized e-commerce,
revolutionized cloud, revolutionized voice.
This is, as he stands here today,
and there is a dignity and discipline to leaving
the stage while people are clapping, he goes out or leaves the CEO role as the bluest, you know,
the bluest flame thinker in the history of business. And also, I have been very critical.
I don't think they can acquit themselves well, gamifying the Commonwealth, some of the things
you just read about. But the reality is,
you know, I've owned stock in Amazon since 2007. They're the largest recruiter of young men and
women out of my class. It's given them an enormous, wonderful start to building economic security.
You know, you just got to recognize what he has done. It is just staggering what he has
accomplished now. Now, the most exciting thing, the most exciting thing,
and there's an analogy here or a metaphor,
a correlation, whatever it is, a reference to Bill Gates.
Bill Gates, when he retired, was not that well liked.
People saw him as someone who really threw around
his elbows in business.
Up until the point he retired,
he was not very philanthropic.
The last 25 years for Jeff Bezos have been meaningful
for our society, but the next 25 years could be profound. And because we're brilliant,
we predicted Jeff Bezos in space months before he ever announced he would go.
What's really fascinating is the two richest people in the world, in this world, in history
of the world, want to get off the planet. They Consider it important that we get off the planet in some fashion.
And both are worried about these existential crises.
I don't think they're going.
I don't think that's it.
I think they want to be explorers.
No, I think Elon, that's how he's going to go.
We'll never see him again.
I think he's going to get on.
I don't know about Bezos, but I think Elon's getting to Mars.
How's that for a prediction?
We almost got it.
Four months later, Jeff Bezos announced that he would fly to space via Blue Origin, his rocket company.
Could you be a stowaway?
Bill Gates, we can bid on it.
That would be so good for this podcast.
For $2.8 million, we should do a GoFundMe, and I get to sit next to Bezos going into space.
Oh, my God.
Can we please?
Yeah.
All right.
That would be pretty good, right?
Let's do it.
Really?
Because if you going into space with Bezos, the two bald guys taking off.
Thank you, boss. I'm taking off, two cute balls.
I'm scared.
I am so scared.
If I got on that seat next to him.
I could do it.
I could raise the money.
I could do it.
I would just, you know what I would do?
I would just inappropriately flirt with him.
Like grab his hand, grab his hand a lot and just stare at him and wink.
Come on, that'd be good.
And then in July, Bezos actually flew.
be good. And then in July, Bezos actually flew. I want to thank every Amazon employee and every Amazon customer because you guys paid for all this. So Sunday morning or broadcast morning
television shows spent more time covering the Blue Origins, Bezos, Dickens Space Line.
Well, it's irresistible for TV.
Well, hold on.
It looks like a penis.
But in one day, in one day, they spent more time, more hours covering the Bezos launch
than they did covering climate change in all of 2020.
I know.
I know.
And at some point, the editors or whoever it is at these stations has to go, okay,
are we a big part of the problem?
And when they send all these reporters and journalists down there to act breathless, I mean, think about this launch.
And by the way, I was on MSNBC yesterday, and I felt intimidated not to be that cynical.
And I just couldn't help it.
They went 100 kilometers for the car in the line.
Say what you said, because I thought it was quite interesting.
Okay.
Say what you said, because I thought it was quite interesting.
Okay.
It would have been cheaper if Jeff Bezos had crashed his Canary Yellow T-Top Corvette into a hair plugs clinic.
What is the achievement here?
They went up 60 miles and floated back down.
Fifty years ago, we sent three brave people into orbit.
We sent them 400 times as far.
No, I'm sorry, 4,000 times as far. We sent them a quarter of a million miles, had them land on basically a big asteroid rotating at tens of thousands of
miles an hour. We weren't even sure what was going to happen when we landed on the goddamn thing.
Yeah. And this was in an era-
Which is the anniversary, but go ahead.
This was in an era when the majority of homes in the United States didn't have air conditioning.
A third of homes in certain regions didn't have indoor plumbing.
And then we brought these men back safely to Earth,
and now we're pretending this is some sort of achievement?
Other notable space tourists this year, Richard Branson and William Shatner.
Blue Origin has since announced plans for a space station.
We'll see how that goes.
Speaking of sending things into space, in January, traders on Robinhood sent shares of GameStop and
AMC Soaring. In the Reddit forum WallStreetBets, users framed the run-ups as revenge for the 2008
financial crisis. Yeah, right. Kara and I didn't think that framing fit.
Someone will be left holding this bag. And in a lot of ways it's the companies because
right now game stop everyone's like now they can buy things i'm like no one's taking their stock
no one's taking their stock not one person will be taking their stock or they could get bought
and i'm like no one will be buying they can't no they can't they're they have frozen this company
in in a way that is that it has nothing to do with the company people are treating it like
cryptocurrency right now it's right exactly and so that's what I'm like, there's people working for this company, including AMC Theaters.
AMC Theaters has got to revive as a business, not as a speculative game for people, whoever they are, whether they're hedge fund people hidden as these people or these people, which I think they're very dedicated.
But it gets to that idea of democratization of stock market.
And I think, you know, we have had issues with Robin Hood and how they do that.
But this idea of like, we're not stupid.
It's so interesting when you hear, and I'm not comparing with the capital people, but a lot of people who are disgruntled and went to Trump is, no one's hearing us.
We will be heard.
And it has the same sort of tone of we're tired of Wall Street screwing us.
And I think this is part of what happened when the banks didn't get, nobody went to jail in the banking crisis.
Nobody went to jail in the mortgage crisis.
They're 100% right that this is a silly game.
And they're showing, to me, what they're showing is what a silly frigging game this is.
As prices spiked, Robinhood restricted the trading of GameStop
and other meme stocks,
leading to a fierce backlash from its users.
Their anger reverberated from Reddit
all the way to Congress.
So there's a lot to unpack.
And let me be clear,
I think Robinhood is a menace
that treats their consumers as the product
and ultimately, I think, leads to dark places.
I've made that clear.
Dark places.
But AOC and Senator Warren in this instance and the class actions who filed against Robinhood really missed the mark.
Okay, tell me about it.
And that is, well, okay, so Robinhood is guilty of not envisioning a scenario where 50% of their account holders
would own one stock that ran to volatility of
50% up or 50% down. Because the people who clear your trades and the people who provide
financing for your margin are constantly looking at the likelihood that the market could have some
sort of wild ride one day. And then the money that people borrowed on margin, the stock crashed more. Say you buy $100 worth of GameStop stock and someone finances $100 in margin.
So you buy $200 worth and it crashes more than 50% in a given day.
What they say is, okay, if GameStop is only 1% of the stock that a brokerage is doing, then we're not that worried.
But when all of a sudden half your account holders own GameStop stock, the clearance guys and the people financing your margin just basically call you and say, you can no longer
trade in this stock. So the notion that Citadel conspired with Robinhood to support another
hedge fund just isn't true. This has happened before. They got caught in a capital squeeze.
The more interesting thing here is who's bailing them out. And their existing investors, including Andreessen Horowitz, Sequoia,
I think NEA, have all come in not for $1.5 billion.
I heard about this piece of paper circulating Thursday night
where they're raising another $3.5 billion.
And it feeds to this bigger narrative around who is making money here.
So who is going to make tens of billions of dollars here?
We all think, oh, they stuck it to the man
because this hedge fund lost $3 billion.
The people who are going to make
tens of billions of dollars
are the people, quite frankly,
the investors in Reddit.
I'm sorry, the investors in Robinhood.
Robinhood signed up a million new accounts on Thursday.
They did, more than that, yeah.
All of this craziness that, oh, they did something wrong.
No, they do something wrong every day,
but them having their clearance
and their margin financiers pull stocks down
for not letting them trade in certain stocks,
that was poor scenario planning,
but I would argue they really didn't do anything wrong.
Who else is making money here?
Who else is making money?
Okay, What about the
Winklevoss twins, billionaires from Harvard who say, let's go into silver. All right, that's your
movement. The wealthiest man in the world, Elon Musk, and a guy who made all his money at Facebook.
Those are our William Wallaces around this movement. In September, court documents reflected
that Citadel executives
had been in touch with Robinhood management as the trade restrictions went into place.
Traders claimed that this proved a conspiracy between the two firms.
Both Robinhood and Citadel deny any wrongdoing, but the stock is off 80%
since its 52-week high, mostly because they're mendacious fucks.
All right, meme stock traders weren't the only people trying to overturn the finance apple cart in 2021.
Cryptocurrency had a rip-roaring year buoyed by the rise of NFTs and U.S. inflation.
Bitcoin hit a new high shortly after New Year's.
A month later, Tesla announced it would accept payment in Bitcoin and revealed it had $1.5 billion worth on the books.
But in May, Tesla did an about-face and said that it would no longer accept Bitcoin. Elon Musk cited its environmental cost.
So let's acknowledge there are environmental issues and there's a really interesting discussion,
a worthwhile discussion around the electricity consumption of mining for crypto.
But they didn't seem to want to have that conversation in February. These issues were
present in February when they purchased one and a5 billion and then put in his profile the term Bitcoin.
And then before the earnings, when they were going to miss earnings, decided to sell some of those gains that he had catalyzed by being a big promoter of Bitcoin, beat his earnings.
beat his earnings. And now all of a sudden, after selling and showing $100 million plus profit,
he's decided that he's uncomfortable with the environmental impact of Bitcoin. And what you have here, I think this is a big deal because this is an individual who 18 months ago put out a tweet
that said, I have funding secured to take the company private at $420 a share and the stock shot up. It ended up there was no truth to that.
That is probably the most textbook case
of market manipulation I've ever seen.
And the SEC decided it's important
that we have innovators.
He's creating a lot of value.
He's doing important work.
Let's slap him on the wrist with a $10 million fine
and hope that it doesn't happen again.
Well, guess what?
He is now saying to the moon with Dogecoin
and then on SNL saying it's a hustle
and it loses a third of its value.
And then saying, putting Bitcoin in his profile
and Bitcoin shoots up and then saying, I'm uncomfortable.
And then putting out thoughtful statements
after he sells it, saying,
I'm worried about the environment.
You are now talking about thousands
if not hundreds of thousands of people
who are losing sleep at night,
wondering what the fuck is this guy
going to tweet in the morning?
Yeah, the thing is, this is interesting.
Dieter Bohn from Verge said,
are crypto markets too prone
to massive multi, multi-billion dollar swings in value
based on seemingly tiny pressures?
Or is Elon Musk too influential on those markets?
Yes.
I think that's right.
Another one, someone wrote, good morning to everyone except Elon Musk, influential on those markets? Yes. I think that's right. Another one, someone wrote,
good morning to everyone except Elon Musk,
which I thought was funny.
But there's all kinds of reaction.
It's another person's Elon Musk comment about Bitcoin.
It's like saying a Tesla uses way too much energy
rather than just ride a donkey instead.
People are losing their beloved minds,
but they hung on his every word on the way up.
You know what I mean? Which is,
I think, sort of like, two bad boys.
You know, you were thrilled when you were like going, go Elon, and then he
does this. You shouldn't rely on him, and it shouldn't
have this much thing, because
it begins to look like sort of this pump
and dump thing, which I think is what you're essentially saying.
In September, a
remarkable first for Bitcoin in Latin
America, the government of
El Salvador purchased 400 Bitcoin one day after it became official currency in the nation. That's
nearly $21 million at the time of purchase. So the president's all into the Bitcoin. What's going on?
He wants to be the Bitcoin country. So is everyone moving to El Salvador?
I think it's actually really big for Bitcoin. And there were a lot of stories about it's kind of the hiccups and the rollout,
but I would argue there was less hiccups and the rollout
than the rollout of Obamacare or Windows 8,
I think a Bloomberg article pointed out.
But the remittance,
it could reduce substantially commissions around remittance.
The GDP of Italy is transferred from in between the Americas,
from workers back to residents back into countries such as El Salvador, which is the poorest country in Central America.
And it's great for Bitcoin.
It's an interesting gambit for them.
Yeah, it is really interesting.
But people like Bitcoin for different reasons.
Investors like it for the volatility.
Some people like it for the technology.
And then that's why people are worried.
They're worried about the instability of it. But ATMs that convert to Bitcoin, Starbucks and McDonald's taking it,
it crashed on Tuesday. But I actually would argue it's probably a buying opportunity. I think it's
fantastic for Bitcoin to have a sovereign nation saying this is our new default currency. Who the
big loser is existentially through all of this is that if the USD gets replaced as the default currency,
we're going to lose one of the most powerful armies we've, you know, in the world. And that's
our ability to track foreign influence. That's a long time away, correct? I mean,
although the Bitcoin people say no, it's a long time. Right now, the US dollar is the currency
of the world. It's a nation adopting it as a legal currency. I think it's a big deal.
And in October, another first, a Bitcoin futures ETF launched after years of failed attempts.
At the time of recording, Bitcoin has more than doubled in price since January 1st.
In 2022, anything could happen.
Well, that's a bold statement.
Anything could happen.
Let's go on a quick break.
When we come back, we'll look at Elon Musk's year and pick the biggest pivot of 2021.
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We're back with our year in review.
2021 began with a muted hope
for the end of the coronavirus pandemic.
Instead of a raucous New Year's parties,
many Americans rang in the year with small gatherings where they wondered how soon they could get a COVID vaccine.
That turned out to be a while. The initial vaccine rollout was plagued with problems.
Scott and I wondered how to fix it in January. I have been trying to get my mom a vaccine there.
Your system is so screwed in Florida. Now she's going to have to fly to New York where she is on a list that is much more organized.
The DC list is really organized.
I feel like I can reach them.
I can look at all the information.
Florida, it took me like hours.
They had shitty websites, shitty information.
Awful.
Yeah.
Was on the phone with them.
Let me just say, Governor DeSantis,
you suck in terms of-
Well, here's where we are
and it speaks to a larger problem.
I don't care if you don't have enough of them. Your systems suck. Even if you're telling me no,
you're not explaining how I can get on a list.
But this is part of a 40-year screed started by Reagan where government is incompetent,
so let's defund them, which leads to a self-fulfilling prophecy about ineffective
government. And this whole notion that we're going to decentralize everything and leave it up to the hospitals
is nothing but similar to Facebook abdicating responsibility. And Governor DeSantis is,
you know, this big, we're going to let the hospitals figure out the vaccination websites.
You know what? We need scale. We need the federal government. The federal government is really good
at some things. They are really good at defending our borders.
They are really good in ensuring that you can't segregate schools.
The federal government is outstanding at a lot of things.
And guess what?
It needs to be federalized.
This needs to be federalized.
By June, there were signs that the vaccines were working.
COVID rates around the country plunged.
But as vaccine availability grew, so too did vaccine hesitancy.
Case numbers rose steeply through July, and patients for anti-vaxxers wore thin.
It just struck me that I think all of the nation is dealing with the pain and unnecessary sacrifice
being levied on this nation because people have conflated an absence of oppression being an absence of responsibility. And in the 60s, we asked young men to go to Southeast Asia
and fight a war to protect against this theory called the domino theory of communism. And a lot
of them rightfully said, I don't want to go. And we either force them to flee to Canada or we put
them in jail. If you live in San Francisco or New York and you work your ass off and your partner
works their ass off and
you make really good money, the government shows up and takes more than half of it in the form of
taxes. And if you say, no, I want to opt out of this responsibility, we fine you. And if you still
opt out, we put your ass in jail. And the notion that we are asking people if and when they go into
public places, if they go to the movies, if they go to schools, if they get on a plane, if they work for the government,
I mean, for fuck's sake, Cara,
have you heard that 40% of hospital employees
are not vaccinated?
40% of hospital employees are not vaccinated.
The nation has had enough.
It is time for our leaders.
And I do think-
That's astonishing.
That's astonishing, I think, don't you?
Like 40% of people.
I was, I swallowed my tongue.
I'm like, you're dealing with sick people and you're not vaccinated?
Even among those who embrace the vaccine, there were concerns about one possible side effect.
Will I have to go back to the office?
I discussed that with guest host Casey Newton.
Do you think one of the things that's interesting is these workplaces, people go back, everyone's been moved back.
I know Vox has been moved back to October or something like that,
unspecified, actually.
But many of the tech workplaces have been moved back.
What do you make of what's happened?
They were bringing people back, and I think wanting to bring people back.
Yeah, I mean, it has been an absolute seesaw.
I think employees are really frustrated, and so are the employers.
I think the employers
are desperate to bring everyone back or at least make it available to the people who want it.
But now the Delta variant is on the rise, and nobody feels like they can safely do it. I saw
a great tweet from a Facebook product manager today who said that they need to analyze the
effects of the fact that for the past year and a half, everyone's work life has had to be things that they're comfortable with their families overhearing, because it's all been on
Zoom. But like, think about that. That is so strange. It's true. It's absolutely true. So one
of the things that's interesting is that tech companies have sort of leaned into no workplace
kind of attitudes, especially Facebook, right? And others. What impact do you think that's going to
have? And how do companies like that have benefited from this, like Zoom, and then there's lots of virtual meeting companies
like Hopin and all those, there's a whole gang of them that have been funded. What happens to that?
What happens to that idea of what a workplace is for at least tech companies or social media
companies? I think it's hard to say from the middle of it. I mean, if you want to look at,
are these companies suffering
and are they falling apart?
Like, no, their profits are all up.
They're continuing to grow.
I don't think we've seen a credible story
about a big or even a medium-sized tech company
that has really, really struggled with the move,
which isn't to say that it hasn't been super hard.
It's just been that they've mostly been able to muddle through. I mean, I think the lasting
lesson is that tech workers and people who have options for where they can work want more
flexibility than they've been given. And this does kind of feel like a one-way door where after
they've been told, you don't have to come in two days a week. They're never going to go in two days
a week ever again. Over the months that followed, more businesses and local governments added or
extended their vaccine mandates. And in October, the Biden administration rolled out a pair of
mandates that it said would cover 100 million Americans. Those are set to take effect in January
2022. One man's name was on everyone's lips this year. From tweets and Teslas to feuds and fuselages,
it felt like there wasn't a week in 2021
that didn't involve Elon Musk or his companies.
His new streak started in January
when he became the world's richest man.
Elon Musk is now the richest man in the world.
That call continues to suck.
He surpassed Jeff Bezos last week
with a whopping $190 billion.
When are we going to see the world's
first? If he becomes the world's first trillionaire, I don't know what you should do,
Scott Galloway, something, something. Yeah, I don't know. Return my Tesla.
In the spring, SpaceX won a NASA contract and almost instantly got into a legal argument with
Jeff Bezos' Blue Origin. Musk also got in a Twitter spat with Senator Bernie Sanders.
Bezos' Blue Origin, Musk also got in a Twitter spat with Senator Bernie Sanders.
It wouldn't be his last.
In one corner, Bernie Sanders used Elon Musk's outsized wealth, along with Jeff Bezos and others, to highlight wealth inequality in the U.S., which is pretty easy to do for Senator
Sanders.
On the other hand, Elon Musk said he's using his fortune for good, that he's going to
bring it to move us to other planets.
That's what he's spending his money on, honestly.
And the bros went,
nice job, Elon.
First he's going to invest in edibles.
Yeah.
Anyways, I'm sorry.
Go ahead, Kara.
What do you think of this?
I think it's ridiculous.
Bernie Sanders is making a very good point.
And he is like,
no, my money will be used for good.
He's like, what is he, Andrew Carnegie?
And he's giving everybody a library.
I don't know.
Okay.
I mean, okay, he's right.
Capitalism is just not about having someone worth $170 billion and paying a lowest tax rate.
Somehow in between tweets, Musk found time to host Saturday Night Live.
In May, his appearance was expected to get a bump in Dogecoin, one of his favorite cryptocurrencies.
That didn't go quite as expected.
And the internet watched as Elon Musk's host get SNL.
And his beloved cryptocurrency Dogecoin took a tumble.
Among the moments on the show, Elon called the cryptocurrency a hustle.
My question is, what is Dogecoin?
I'm glad you asked.
It's a good question.
Well, it's the future of currency.
It's an unstoppable financial vehicle that's going to take over the world.
I get that, but what is it, man?
I keep telling you, it's a cryptocurrency you can trade for conventional money.
Oh, so it's a hustle.
Yeah, it's a hustle.
I didn't just say that, man.
That's Senth is steadily climbing stock tumbling,
crashing by 30%, although the crypto token
is still up more than 10,000% in price this year.
Almost immediately after Elon Musk made his first appearance,
Robinhood was forced to pause all crypto trading order updates.
As a reminder, Robinhood had to make a similar pause
back during the GameStop frenzy.
But then the next morning, Elon tweeted that his space exploration company,
SpaceX, which has contracts with NASA,
is still launching a satellite called DogeOne
on a mission paid for with Dogecoin.
By the way, this month, the House passed a bill, which is backed by crypto lobbyists,
to create a working group to regulate digital assets, which they should be doing.
I don't really care who backs it.
So what do you think, Scott?
He was somewhat funny, correct?
You were expecting disaster, as we can go to our tape.
No, I wasn't expecting a disaster.
Look, I think it's a huge win for him.
Yeah, talk about why you think this's a huge win for him. Yeah.
Talk about why you think this, because you were critical of this appearance.
You were.
Look, if you had Annie Leibovitz photograph your daughter's bat mitzvah, little Rachel is going to look gorgeous.
It's going to be great for the family.
And Annie Leibovitz's reputation goes down. So in this instance, Rachel is Elon Musk.
Elon might not have been laughing in June.
That month, the SEC announced that two of his older tweets had violated a 2018 settlement.
So after a year of lawsuits and rockets in the SEC, I sat down with Elon at Code in the fall.
Here's what he had to say about Blue Origin's challenge to his NASA contract.
I think he should put more of his energy into getting to orbit than lawsuits.
You cannot sue your way to the moon.
Okay.
You know how good your lawyers are.
Yeah.
Elon didn't slow down after that.
In the last quarter of the year, he sowed confusion
over an alleged deal between Tesla and Hertz, asked his Twitter followers to vote on his selling
Tesla shares, tweeted outrageous things at U.S. senators, including Bernie Sanders again,
and he called Scott a numbskull. That's not true. He called me an insufferable numbskull.
Let's drill down on that last part. And it's his stock. He's entitled to sell it.
Okay.
But instead of taking responsibility for saying, I want to diversify, I need to pay some taxes.
And he has said this, the stock is fully valued.
Yeah, he said he's going to pay taxes.
He says, Twitter, you tell me what to do.
Yeah, I know.
Over the weekend, he put out a Twitter poll asking me, you should sell 10% of his Tesla stock.
weekend, he put out a Twitter poll asking me he should sell 10% of his Tesla stock.
Scott, you tweeted, he's using the Twitter results as a cloud cover to monetize Tesla prices that he knows aren't sustainable without outright telling the market he's lost faith
in its valuation, although he has said that somewhat.
He has said it.
And then he has said, then he did you.
This has happened before.
I've seen it happen before, many times.
So Lara pointed out, and let's just call out the elephant in the room, the sexual tension between the two of us is palpable.
It's palpable.
And I got to be honest, last night I did have a sex dream about Elon.
I was running my hands through his chest hair.
We were in a hermetically sealed container 30 feet below the Martian surface, recognizing that we were about to die a horrific
death, either from asteroids or increased radiation or gravitational pull that was
melting our bones and neurons. But you know what? We had each other, Cara.
And to cap it all off, in December, Time magazine named Elon its person of the year.
It's a safe bet that in 2022, Elon will continue to be one of the most influential men in the world unless he leaves for Mars.
We didn't mention Elon moving to Texas because that happened before this year, but the Lone Star State had its own share of news in 2021.
First, in February, the state was hit by a deep freeze.
As its power grid failed, millions of Texans fought the bitter cold with blankets and fires.
And someone said, they said, they said, the problem is if Ted Cruz went to Cancun in the middle of a Texas weather crisis, energy crisis and weather crisis, it's only the second worst thing he's done this year.
Which is, of course, backing the insurrection, which was a nice move. They're refusing to certify the vote.
Does he not want to get elected again?
Beto O'Rourke is busy, like, calling seniors and bringing seniors warm soup.
Like, that's what he's been doing the whole time.
And Jose Andres is making food for everybody.
Like, do they want to turn Texas blue?
Is that what their goal is here?
What is the deal?
And Abbott, like, blaming wind energy?
Like, he's frigging Donald Trump. What is going on? And Abbott, like, blaming wind energy? Like, he's friggin' Donald
Trump? What is going on? Continuing on a theme of systemic failures, Texas Governor Greg Abbott
positioned himself as one of the country's greatest combatants against pandemic measures.
In May, he issued an executive order banning government mask mandates. By August, he'd lost.
In October, he pulled the same move again, this time banning vaccine mandates via executive order.
Big business was quick to fire back.
Southwest and American Airlines said this week that they'll comply with the federal government's vaccine mandate for large companies.
This puts them in conflict with the Texas governor who tried to ban vaccine mandates via executive order.
Both airlines have said federal law supersedes state law, and they are correct.
So there'll be lots of lawsuits all over the place. But I love, I think they're right.
These are forward-facing companies with customers.
And that's how they have to think about the public health.
Greg Abbott is going to lose this one, correct?
I mean, he's using it as a political thing.
I fucking love this.
The cruise lines.
These are not liberal.
These are not bastions of progressive oak people. The cruise lines and the airlines are saying, hey, governor, while you're over there, you know, absolutely prostrating yourself to the far right, old white evangelicals in Iowa.
A lot of stereotypes there, a lot of identity politics in that statement.
We're going to focus on what's good for the economy.
And our business, yeah.
And our businesses. And stop playing politics with our businesses.
And after a year of arguing that governments and businesses can't tell people what to do
with their bodies, Governor Abbott took his hypocrisy to new heights when he signed the
most restrictive abortion law in the nation. I was lucky to have guest host George Hahn
with me to discuss
it. The Supreme Court, as I understand it, felt that Texas's laws or whatever regarding abortion
violated a woman's constitutional right to privacy. This is about privacy. So what is it
about this new situation that is also not a violation of privacy? Is it the state saying,
well, we can't legally do it, but you citizens, we're going to empower you. Listen, do a little
dirty work for us, violate a woman's privacy for us, we'll give you 10K and we'll cover your legal
expenses. Like, am I wrong? Well, you know, I think it's just this constant chipping away of Roe versus Wade for over the years.
And it's been, for whatever you think about what they're doing, it's a rather clever way to sort of chip away and chip away and chip away Roe versus Wade without overturning it because that was not possible.
And so they make it difficult for these places to operate.
They make it difficult to get there.
They make it difficult.
They make them smaller and smaller.
And so they keep continuing to sort of chip away at the ability to do this. And now
this new law where anyone in the United States can sue these abortion providers or anyone who
helps them, you don't know who to attack. You know, you can't, like before it was between
government and these abortion clinics. Now anybody can sue them. So it creates a legal liability here that's really,
you could start to do this on a lot of things,
and from what I understand.
But it's really this way to violate, you know,
this right established under Roe versus Wade, and then not.
Like, if you're willing to do anything,
and I think a lot of people said this,
that the right has come to play,
and the left is sort of, or the liberal side is like letting this happen over and over again and doesn't have a lot of good tools to stop it. Governor Abbott will run for re-election next
year. If he defeats primary challengers, he'll likely face off against Beto O'Rourke.
A few other stories from 2021 we should mention. Netflix came under fire for
airing a Dave Chappelle special that many viewers found misogynistic and transphobic.
Netflix employees walked out in protest. The closer remains on Netflix. 2021 was a good year
for labor. 10,000 John Deere workers won better pay and conditions after going on strike. Workers
in other industries from healthcare to transit went on strike as well.
And wages for workers in industries including dining and entertainment were up as labor shortages continued.
And speaking of shortages, supply chain interruptions rattled commerce.
A chip shortage caused disruptions in auto manufacturing and consumer goods like the Nintendo Switch.
New York Governor Andrew Cuomo resigned after being accused of sexual harassment.
His brother Chris Cuomo was fired from CNN later in the year when his role in the scandal came to light.
Also, that big boat got stuck in the canal.
Remember that?
Yeah, I do.
All right, Scott, one more quick break.
We'll be back for the year's biggest pivot.
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Okay, Scott, we're back.
We asked our Twitter followers to vote for the biggest pivot of 2021.
Here's what they said.
In fourth place, Tesla drops Bitcoin.
In May, Elon Musk announced that Tesla would no longer accept Bitcoin as payment.
He cited environmental concerns. Only three months earlier, Tesla began accepting the
cryptocurrency and revealed its Bitcoin future. Any thoughts, Scott? Any final thoughts?
I don't even remember that episode. Do you remember it? And again, I don't remember what
I had for breakfast, but I don't remember that episode.
I think you insulted the whole thing and said it wasn't about environmental concerns. That's
how I feel.
There you go.
At number three, Andrew Cuomo resigns. In August, the New York governor stepped down as he was
facing an impeachment inquiry. He had become a pandemic hero among many Democrats, but it turned
out he was just a creepy groper. Yeah, I was shocked that people, I don't know if it was,
it could have been a lot of things, but people turned to us for political commentary.
And then people then turned to our Twitter and tell us to stay on our lane.
I'm so confused.
I'm so confused.
We don't.
We have all the lanes, Scott.
Just keep that in mind. There you go.
Our lane is whatever the fuck we want to talk about.
What the fuck we want.
That's right.
That's exactly right.
That's exactly right.
The second biggest pivot, Facebook changes its name to Meta.
I thought this would be number one, but it wasn't.
Yeah, me too.
Zuckerberg rolled out the name change in October, but so far it seems to be the only change at the company. So there you have it. Yeah, it's interesting. I don't call it Meta. I thought this would be number one, but it wasn't. Yeah, me too. Zuckerberg rolled out the name change in October, but so far it seems to be the only change
at the company. So there you have it. I don't call it Meta. Do you call it Meta?
What's interesting is it barely beat out the episode where Mark and Cheryl have changed
their names to Sackler. That's good. That's good.
And the biggest pivot of 2021 was, shockingly, OnlyFans banning sexually explicit content.
In August, OnlyFans confused its creators and usually would announce that it was getting out of the adult content business.
It reversed course less than a week later after getting assurances from its bankers that it can continue as is.
My OnlyFans has racked up 11 bucks, but people thought it's called the dog.
People thought it was a site on bestiality and they asked for a refund.
But I'm hopeful.
I'm hopeful, Gara.
I didn't think we'd get bestiality,
but here we are.
Okay.
All right then.
And some runner-ups.
Eleven Madison goes vegan.
Facebook scraps Instagram for kids.
And Jack Dorsey stepping down.
Well, what about the episode
where we talk about me getting a Bezos action figure
and sticking it up my ass,
where no man has gone before.
How did that do?
How did that do?
From the Vox Media Podcast Network.
Okay, Scott, that is the show.
I want to thank all of our listeners
for joining us for this crazy year.
But here's hoping for a healthy, happy, and productive 2022.
Scott, another year around the sun with you and I, and I am so thrilled to be doing it
with you.
Amen, sister.
Right back at you.
Read us out.
Today's show was produced by Lara Naiman, Evan Engel, and Taylor Griffin.
Ernie Intertott engineered this episode.
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