The Philip DeFranco Show - PDS 11.4 Apple's $2.5 Billion BOMBSHELL, Shane Dawson Shopify Catastrophe Is A Win, & More

Episode Date: November 4, 2019

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Sup, you beautiful bastards. Hope you've had a fantastic Monday. Welcome back to the Philip DeFranco Show. Buckle up, hit that like button, and let's just jump into it. And the first thing we're gonna talk about today is this news about Apple and California. This morning, Apple announced that they are pledging

$2.5 billion to combat the growing housing crisis in California. And reportedly, that money will break down like this. One billion for an affordable housing investment fund, which will reportedly be the first of its kind in California and allow the state to open lines of credit for new housing for very low to moderate income residents. Then another billion will go to a first time home buyer

mortgage assistance fund, which will reportedly help with down payment assistance and provide more opportunities to buy for people like service personnel, school employees and veterans. Apple will also reportedly use $300 million in land that it owns in San Jose available for affordable housing. And the rest of the money will go to a Bay Area housing fund and means to support vulnerable populations. As of right now,

the company anticipates that it'll take two years for this plan to be utilized. Also of note, though, is Apple is not the first major tech company to contribute to this ongoing issue. In October, we saw Facebook commit $1 billion to address the housing crisis in California. Earlier this year, Google also pledged a billion dollars to build homes in the Bay Area. And in fact, even over in Seattle, which is experiencing a similar crisis, also pledged a billion dollars to build homes in the Bay Area. And in fact, even over in Seattle, which is experiencing a similar crisis, Microsoft pledged $500 million for affordable housing. Right, and so it seems that you have these tech companies

lending a helping hand, they're providing aid in a crisis. And also, it is important to point out that many also say it was started in the first place by them. Right, so for those that don't know, housing in California has actually become increasingly difficult due to both cost and demand. According to the National Low Income Housing Coalition,

California has the second highest housing wage in the country, meaning that it requires someone to earn $34.69 an hour to afford a two bedroom rental home. Right, and so it points out that if someone were working the state's minimum wage, which is $12 an hour, they would need to work 116 hours a week to afford that two bedroom rental home. And on the demand side of this issue,

homes are also now being added at the rate of the state's growing population. And for specifics here, according to the McKinsey Global Institute's 2016 report on California's housing gap, since 2005, California has added 308 units for every 1,000 new inhabitants. And to help put that number in perspective, New York has produced far more than that,

adding 549 units per 1,000 in that same timeframe, which inches towards twice as many as California. And in fact, Apple also addressed some of these issues in their press release, noting that in the Bay Area, in general, home ownership is at a seven year low, and pointing out that just between April and June of this year, 30,000 people moved out of San Francisco with their statement pointing towards residents

being priced out as a potential cause. Apple CEO Tim Cook also speaking on this issue saying, "'Before the world knew the name Silicon Valley "'and long before we carried technology in our pockets, "'Apple called this region home, "'and we feel a profound civic responsibility "'to ensure it remains a vibrant place "'where people can live, have a family,

"'and contribute to the community. "'Affordable housing means stability and dignity, "'opportunity and pride. "'When these things fall out of reach for too many, "'we know the course we are on is unsustainable "'and Apple is committed to being part of the solution.'" Now with these tech companies throwing billions of dollars at this issue, with the emotion attached

to Tim Cook's words here, you might be wondering, well, why do people blame these companies? And well, the gist of it is you have these big tech companies that are largely based in the Bay Area and neighboring parts of California. So you have their employees moving into or already living in those areas. And what we end up kind of seeing happening,

I think it was really well summarized in a 2018 report, where you have Karen Chappell, a professor at the University of California, Berkeley, researching governance, planning and development of US cities. And she said, we have high-tech jobs which generate a lot of service jobs. Hair cutting salons, nail salons, and masseuses, yoga studios, and dog care.

High-end jobs and low-end jobs are created at the same time, but you have a housing market that is really only producing for folks at the high end of the scale. There is a mismatch. Right, and it's not this kind of out of nowhere 2019 mismatch, we've seen reports in the past about how emergency workers and teachers, right, they can't afford to live in the areas that they serve.

Right, and reports about how super commutes for areas like this are becoming far more common. A super commute, if you're unaware, is like it taking 90 or more minutes to get to work. Right, and so essentially that can be boiled down to as wealthy tech workers come in, lower income residents are often left in a bad spot, often being priced out.

Now that said, the tech companies aren't the only ones here trying to help the issue. Early in October, California Governor Gavin Newsom signed legislation that will cap annual rent hikes throughout the state, meaning the most renters can see no more than a 5% increase plus inflation over the next decade, though it's argued that the state still has a long way to go

because as housing becomes expensive and difficult to find, it leads to no shortage of other issues, with one primary one being homelessness. With San Jose alone, for example, saying their homeless population has increased 40% in just two years. But ultimately, that's where we are with the situation right now,

and I wanna pass the question off to you on this. Obviously with this one, there are a few key points. One, what do you think about these massive tech companies getting involved, throwing billions of dollars at this issue? Also, what are your thoughts on the government capping how much rent can be raised? Are you happy you think that the government

is protecting people here? Are you angry because you see the government messing with the free market? Also, if you have a problem with the government here, are you more on board with a private solution from these tech companies? Any and all thoughts you have on this one, I would love to see.

Then in online entertainment slash business news, we should definitely talk about the chaos and success of the Shane Dawson, Jeffree Star launch. Of course, as we briefly touched on previous shows, this was a highly anticipated moment. You had arguably two of the largest creators on a platform putting out a massive makeup collaboration with a promotion like we've really never seen before,

a six part up to this point docu-series. A docu-series where each episode got tens of millions of views, fans were getting emotionally attached to the process docuseries. A docuseries where each episode got tens of millions of views, fans were getting emotionally attached to the process and the product. And even Jeffree Star, who, you know, obviously he does benefit from the situation, said this release was gonna be a size that he had really never touched on before.

And so when Friday rolled around, the big question was how fast will this sell out? And the answer to that was not immediately, but not because of lack of interest, but rather because there was too much. Fans completely overwhelmed the website before the company behind it, Shopify, could even finish listing each item for sale.

And so that's why minutes after the scheduled launch time, we saw Jeffery tweeting that the site had crashed, adding that Shane is in a ball crying on the floor. You saw screenshot after screenshot from fans showing the site being broken. Right, and the issues persisted for hours with many users complaining that the site was crashing. There were error messages, missing confirmation emails, and other issues. At the same being broken, right? And the issues persisted for hours with many users complaining that the site was crashing. There were error messages, missing confirmation emails,

and other issues. At the same time though, you also have people choosing to purchase the palette at their local Morphe stores, but they still had to wait in huge lines to get their hand on any products. But ultimately online, things started working. The conspiracy palette completely sold out middle of the day with the rest of the line

selling out shortly after. And although we don't know the exact figures just yet, you have people saying, you know, this launch probably broke a record. Also, according to Jeffree Star, the statistics will be released in the coming days. And so while there was a massive bump in the road with, you know, the site crashing and not working,

it also appears to be just kind of a massive win. One, because things ended up selling out anyway. And if the documentary series is to be believed, Shane Dawson just made some fuck you money, right? Estimates in the series just around the palette, I mean, they were already talking about eight figures and everything being broken, Shane Dawson's reaction, apparently that's going to be in episode seven, so it's content. Yeah, it just appears like a massive win in general, although you did have some people complaining, right? Specifically around the docuseries in the

lead-up to this launch, it has now accrued over 110 million views. You had some people complaining that they felt click-baited, and this seemingly stemming from the trailer for this series. In the trailer, it appears that Dawson includes footage of him reacting to Tati's initial video and James' subscriber loss from that massive controversy. So in this series that seems to have moved in chronological order, you don't really see a dive into that.

And so you had some accusing him of click baiting people into watching this docu-series. Although some have also suggested that Dawson excluded the drama out of respect for those involved, especially since both Tati Westbrook and James Charles recently released products last month. I see people saying that maybe he thought it was too harmful to bring all that back up or that it might seem petty

or targeted considering the time of his release. Some also saying that maybe Shane Dawson decided to pivot mid series, with people specifically pointing to a poll that Shane Dawson posted earlier in this series, asking viewers what they wanted to see more of. Right, more behind the scenes of business or the drama. And this poll seemingly coming after the tease

that we saw in the first episode. So, you know, you should be James Charles, Jaclyn Hill, whoever's free. Yeah, that's what we like then. Yes. Today. And as far as my full opinion on this, one, I will say I'm gonna hold it

until I see the end of this series. But also two, based off of murmurings I've heard in the community of other things that were shot, I think either one, there was a creative pivot after the first episode was released, or two, there still might be an inclusion near the end of other things that were shot. I think either one, there was a creative pivot after the first episode was released, or two, there still might be an inclusion near the end of this series. So I guess regarding that point, we'll have to wait and see,

but really the main thing to me regarding this series, the power of online personality is proving once again that it is king and queen. Something that I think people kind of understood, right? They look to the Kylie Jenners of the world, but you know, a lot of that online success comes from mainstream success. But here, regardless of your opinion of Shane Dawson

and or Jeffree Star, you have two organic online creative creators just destroying sales. Yeah, around this story, especially if you were invested, you watched all the series, part of the series, I'd love to know your thoughts on the launch and everything else. And then finally, let's talk about this huge news

coming out of India, specifically around the capital, New Delhi. Over the last few days, New Delhi and surrounding areas have experienced what some have described as record levels of toxic smog. And this poisonous smog, which the Delhi chief minister described as unbearable pollution, has taken over this city of more than 20 million people.

And as of right now, it is not entirely clear how high the pollution levels are, and that's because the reported levels were off the charts literally. With some reporting that most areas in the city showed an air quality index of 999 because the meters can't actually record above that. But even if the number wasn't capped at 999 and likely above that, even if it was just 999, that number is still three times higher than the hazardous level on the global air quality index. With others reporting that the levels of dangerous particles were more than 20

times higher than the World Health Organization's recommended safe daily maximum, which is the equivalent of smoking more than two packs of cigarettes a day. So with this situation, the Indian government responded on Friday by declaring a public health emergency, shutting down all primary schools and halting construction projects for several days. The government has also said that they would distribute masks to 5 million children in the city. Also, people have been encouraged to stay inside as much as possible. This is we're seeing continued reports of people with respiratory problems, headaches, and burning eyes.

And it's also not just health problems. On Sunday, we saw flights being delayed and diverted due to the fact that pilots couldn't see through the smog. Smog that has also reportedly caused traffic and car accidents because of the limited view, which on the note of cars, today officials in New Delhi started restricting the use of private vehicles to try to help lift the pollution.

And under those restrictions, people can use their cars on alternating days. Cars with odd number license plates can drive on odd dates, and cars with even numbered plates can drive on even numbered dates. And anyone found violating the restrictions will face a fine, although, according to reports, anyone can drive on Sunday.

And also, the seven million motorbikes and scooters there are exempt from the restrictions, as are those taking public transportation and cars carrying only women. Now, while the dangerous smog in New Delhi is very, very bad, it's also important to note that this is not something new. In fact, this kind of air pollution is something

that has been happening in New Delhi every year around this time. And it's said to be caused by a combination of a few things that all come together in especially bad timing. One of the main things that cause pollution is crop fires. Every winter, farmers in the surrounding areas of New Delhi and Northern India burn old crops

to make room to grow new ones. The smoke and the fumes from that process then drift to the suburbs and the city where they mix with construction dust and car emissions. And then, to make room to grow new ones. The smoke and the fumes from that process then drift to the suburbs in the city where they mix with construction dust and car emissions. And then to make matters even worse, that already toxic combination mixes with smoke from fireworks displays during the Hindu holiday Diwali, which also happens at this time of the year.

But all that said, because much of the pollution does come from the crop burning, many have criticized the vehicle alternation restrictions, arguing that it ultimately will not do that much. Also with this, leaders in New Delhi, which in the past has been labeled the most polluted city in the world, have said that any efforts that they have made to clear up the pollution have been undone by farmers burning crops in nearby states. They have largely blamed the farmers, but others have noted that New Delhi frequently does not meet air quality guidelines

even when it's not crop burning and fireworks season. Right, also arguing that the capital does have a major issue with traffic pollution. According to scientists at India's state-run monitor, so far, crop burning in nearby states only contributes to just over 40% of Delhi's pollution. And so it seems like it's not just the farmers and that the politicians, at least to a certain degree, are trying to scapegoat them. And while the pollution crisis in Delhi right now is extreme, it's also part of a much bigger problem

for India as a whole. Right, in May of 2018, a study by the World Health Organization found that out of the top 10 most polluted cities in the world, nine of them were in India. And so as a result, many have been calling on the government to take more accountability and actually do something, arguing that the short-term Band-Aid solutions

aren't going to change anything. And that's why on Saturday we saw people in New Delhi protesting the lack of government action outside of Prime Minister Modi's residence. And in fact, just today, India Supreme Court actually criticized the national and state governments for not doing anything to curb the pollution, saying in a report, this can't go on.

People aren't safe even inside their houses and rooms. Ultimately, that is where we are with this story right now. It's gonna be very interesting and important to see what happens next. It's just an insane thing to see. And that's where I'm going to end today's show. And hey, after you maybe leave that comment, if you liked today's video, let us know.

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