The Philip DeFranco Show - PDS 6.1 "DAMAGE CONTROL FOR A BUNCH OF CRACKHEADS" The Grace Van Dien FaZe Scandal Explained & Today's News
Episode Date: June 1, 2023Start your free trial today: http://www.Squarespace.com/Phil & enter offer code “Phil” to get 10% off your first purchase! Click the Link to Grab Your Exclusive “Are You Taking Care of Yoursel...f” Gear Before It’s Gone! https://BeautifulBastard.comCatch Up on my last PDS: https://youtu.be/8Y-tvOwl2yg Check Out Zaid’s Latest Freestyle the News: https://youtu.be/tHKVl_oNR7w – 00:00 - FaZe Clan Supports Grace Van Dien Amid Nasty FaZe Rain Feud 06:24 - Socialite Jasmine Hartin Spared Jail After Belize Police Chief Death 07:38 - Amazon Agrees to Pay Over $30 Million for Alexa and Ring Privacy Violations 09:51 - Sponsored by Squarespace 10:41 - Florida Homeowner Insurance Skyrockets Ahead of Hurricane Season 13:42 - NATO Ready to Send More Troops to Kosovo After Unrest 15:34 - Debt Limit Bill Passes the House – ✩ TODAY’S STORIES ✩ FaZe Clan Supports Grace Van Dien Amid FaZe Rain Feud: https://www.dexerto.com/entertainment/grace-van-diens-faze-clan-controversy-explained-timeline-of-events-2163189/ Socialite Jasmine Hartin Spared Jail After Belize Police Chief Death: https://twitter.com/BBCWorld/status/1664308586795749376 Amazon Agrees to Pay Over $30 Million for Alexa and Ring Privacy Violations: https://roguerocket.com/2023/06/01/amazon-ftc-settlement-privacy-violations/ Florida Homeowner Insurance Skyrockets Ahead of Hurricane Season: https://www.clickorlando.com/news/florida/2023/06/01/insurance-concerns-spike-as-hurricane-season-looms-in-florida/ NATO Ready to Send More Troops to Kosovo After Unrest: https://www.reuters.com/world/europe/nato-soldiers-guard-kosovo-serb-town-following-clashes-2023-05-30/ Debt Limit Bill Passes the House: https://roguerocket.com/2023/06/01/debt-limit-what-you-need-to-know/ —————————— Produced by: Cory Ray Edited by: James Girardier, Julie Goldberg, Maxx Enright, Christian Meeks Art Department: William Crespo Writing/Research: Philip DeFranco, Brian Espinoza, Lili Stenn, Maddie Crichton, Star Pralle, Chris Tolve ———————————— #DeFranco #FaZe #Asmongold ———————————— Learn more about your ad choices. Visit megaphone.fm/adchoices
Transcript
Discussion (0)
Sup you beautiful bastards! Welcome back to the Philip DeFranco Show, your daily dive in the news.
We got a lot to talk about today, so buckle up, hit that like button, and let's just jump into it.
Starting with, in online drama news, we had a lot of requests to cover this Grace Van Dien,
FaZe Reign situation. But this is also a massive business story because at the core of this story,
you're dealing with an organization called FaZe. Right at that time, it was considered one of the
biggest esports entertainment organizations out there, even making history by going public on
the stock market.
And over the course of its existence, it went from, you know, a few gamers trickshotting, bullshitting around on the Internet to a massive multimillion dollar organization involving some of the biggest names out there.
And along the way, new people came in, new leadership came in.
There's also, of course, been no shortage of controversies along the way.
Some of the most recent stuff we talked about involved the crypto NFT world.
There have also been public general success struggles, like while the catchphrase for the organization has been
phase up, their stock price didn't get the memo, but at one point being worth $20 a share to now
just over 50 cents a pop. But for what we're talking about today, it involves more recently
early members of this group speaking out against the current leadership. And all the chaos and
frustrations we've seen in this situation has now kind of come to a head with this Grace situation.
Right, Grace, you might recognize from a variety of film and TV roles,
including Chrissy from Stranger Things,
with Grace recently joining FaZe Clan and saying that she and the organization,
quote,
will be working together to create lasting change for female gamers in the industry,
and adding that she's excited to take on an important role and bring women to the forefront.
But upon joining the group,
she quickly found herself in the middle of this massive feud with FaZe Reign,
who for his part essentially has been waging war with FaZe Clan,
doing things like leaking what appear to be many of the org's financials.
Some of the specific Grace drama starting
when Rain leaked the news that she'd be joining the group
and claiming that she was only signed because, quote,
"'She was on one episode of Stranger Things.'"
With Grace early on firing back,
I'm sorry, sir, were you in the meeting with us?
Were you there?
No, I've never met you.
So get wrecked.
To everyone saying that. With Rain responding to to this hurling insults at her again using her stranger things role against her and adding not only have
You not hit a trick shot, but you don't even know what the that is when you were still playing with Barbies
I made my first million out of this industry and on top of it
You're excruciatingly mid who I would never let touch me on my drunkest night with a number of people responding to that saying the comments went
Too far that that was sexist that he's just attacking a woman for being successful.
With Grace herself also responding,
saying she doesn't know what a trick shot is, but.
But I know you, Rain,
as the person who almost overdosed on a livestream.
And I know that you're better now.
And I'm really proud of you for that.
I am, but don't come after me
for not knowing what a trick shot is, man.
Right, and those remarks really started to divide people.
For some thing, she went way too low
by bringing up the overdose,
though others defended the remarks,
saying she was pushed, so she pushed back.
Arguing Faye's reign literally sexualized her
for no fucking reason,
saying he would never let her fuck him
just because she was joining Faye's.
She literally has complete free range, I don't care.
And if you wanted to go low with misogyny, then she can respectfully do the same.
With people in the industry like Asmongold adding, I believe in self-defense. I'll take the high road,
I'll stay on the high road, it's no problem. But if you take the low road, I'll meet you there.
And there was some more sparring, there was more back and forth, I'm trying to condense this for
you. But it all led to the two of them sitting down to talk it out in an encounter that just
did not go well. With Rain uploading the video and then including his own commentary about their conversation.
And it started with them just kind of going in circles with Grace claiming Rain's actions intentionally or unintentionally encouraged his fans to attack her online, resulting in her receiving death threats.
Rain denying that his remarks were specifically at fault for that.
You also see them almost like bond for a moment, where they share experiences about addiction.
And then hashing out some of the comments that they had hurled at one another while explaining their perspectives.
But by the end, it kind of just falls apart.
I want to stop sexism in the gaming industry.
Okay, but I mean, if you feel what I said
was necessarily sexist, I don't.
I do.
You wouldn't have said it if I was a guy.
That's crazy.
With Rain arguing that he apologized,
he knows he went too far, what else does she want?
And then saying,
You want to super victimize yourself for that?
Okay, then I guess I'm hurt.
How dare you?
How dare you bring up the worst time of my I guess I'm hurt. How dare you? How dare you bring up the worst time of my life?
I'm hurt.
How dare you?
It's like, what are we talking about?
I'm hurt.
I almost died.
See, I could play that game all day.
I'm an actor too,.
that game.
I don't give a.
And it's like, how could you let other people
hurt your feelings?
Do you not believe in yourself?
Are you not a confident woman?
You should be.
This is also where you can see it really just take a turn for grace. If my a husband, I mean, you don't know. So then how is people hurt your feelings? Do you not believe in yourself? Are you not a confident woman? You should be. This is also where you can see it really
just take a turn for grace.
It's my problem.
I mean, you don't know me.
So then how is this hurting your feelings?
If I called you mid, you should be like,
him.
Who cares what I say?
And if you bring up my drug past,
are you getting emotional?
Yeah.
Well, I'm just speaking the truth.
I don't want you to get emotional.
I don't like you.
I think you're a terrible person.
Really?
Yeah.
Oh, she's pulling the acting out now.
Because I said that I could- Pulling the acting out now? Now am I a terrible person for Really? Yeah. Oh, she's pulling the acting s*** out now. Because I said that I could-
Pulling the acting s*** out now.
How am I a terrible person for what?
Pulling the acting s*** out now.
How am I a terrible person?
Explain.
I don't owe you an explanation, actually.
And I owe you an explanation.
So then she gets up to walk out the door,
but before she leaves, she says,
Tell Vera that I'm not doing this video,
and if they release anything, that I'm leaving, please.
And so now, she no longer has FaZe in her Twitter bio.
People have also had drastically different reactions
to their meetup.
Some in Rain's quarters,
others saying that Rain demonstrated sexism 101
by blaming her for getting emotional.
We also saw FaZe Clan releasing a statement backing her up,
saying FaZe is no stranger to contrasting viewpoints
and passionate opinions on the future of the brand.
Recruitment has always drawn that out,
but make no mistake,
the mistreatment of our newest member is in no way okay. Grace joined in hopes to bring her voice to FaZe, and we stand
by her. And there you saw some who are originals from the organization like FaZe. Banks not happy
about the org releasing that statement. So I'm also seeing this as FaZe abandoning one of its
OG creators for one they just signed. But at the same time, you have people saying this whole
ordeal just reminded them of how sexist the space can be, and they feel bad for Grace getting caught
in the middle of it all. Dasmengold again slamming Faye, saying they hired Grace to clean up their mistakes.
They hired her and gave her a bunch of f***ing money to act like a broom
to clean up all these crackheads and their f***ups.
The Faye's clan has had f***ups for 10 years,
and they hire her to play damage control for a bunch of f***ing crackheads.
And that's a fact.
Crying about how, oh, it hurt my feelings.
Oh, it almost took it away from me.
It almost took my son away from me.
B***h, you almost took your mom's son away from yourself.
You want to talk about being logical?
Who put the pill in your f***ing mouth?
What a f***ing pussy.
I'll tell you one thing.
I don't know if Fayee rain would be able to last
five minutes in a modern warfare 2 lobby after this others in grace corner saying it sucks because
it looks like rain's actually getting what he wants he may have pushed grace out he made the
whole situation just too toxic to be bearable that's why with this whole just nasty chaotic
mess i want to pass the question off to you in general whether you're inside or outside especially
if you're in the online gaming online entertainment space what's your take on this and then when you see the headline socialites spared jail after killing police chief you're inside or outside, especially if you're in the online gaming, online entertainment space, what's your take on this? And then when you see the headline,
socialites spared jail after killing police chief,
you're like, wow, money lets you get away with everything.
But in this specific situation,
there might've been other factors of clout.
Because in Belize, Jasmine Harton shot police chief,
Henry Jemmett back in 2021.
They're ultimately pleading guilty to manslaughter
back in April and being slapped with a $37,000 fine
and 300 hours of community service.
So people going, why the hell was this sentence so lenient? Because the first thing is someone pled guilty to manslaughter,
and the maximum sentence for negligent manslaughter is five years. And that's actually in line with
U.S. federal law, which is a sentence of one to six years for a similar offense. But also,
circumstances around this incident played a major role. Because reportedly, Harton and Jemmett were
actually friends. They were partying together on the night of his death. And according to Harton's
defense, they went out onto the pier and Jemmett handed his pistol to Harton to put it aside, with him eventually asking for it back, at which point
Harton claims that in her drunken state, she fumbled with it, it set off, and shot the officer
in the head, with police finding her covered in blood, completely distraught, and Jemmett's body
being found in the water. And at least the official claim is that with that, prosecutors and
investigators largely believed her story, which I gotta say, very trustful police force. I mean,
if I'm Harton in that situation and that's what actually went down, I don't think anyone's believing my story.
People would be like, yeah, cool story, Phil, go to jail forever.
Yeah, I guess with whatever happened, there's possibly two stories here.
One, when you're rich, there's a different set of rules.
Or two, guns and liquor, not a great mixture.
And then, Amazon didn't just violate your privacy, but specifically your children's privacy as well.
And they just got slapped with more than $30 million in fines for it. With the FTC and Justice Department accusing
Amazon of retaining children's geolocation data, as well as the recordings of their conversations
with Alexa. And that's in addition to being charged with deceiving their customers after
ignoring requests from parents to delete their children's recordings and other data, despite
repeated assurances that parents can delete that data at any time. Now, Amazon says, hey, we just
held onto this data to train the Alexa algorithms to better understand children. But their reasoning
there doesn't make it any less illegal.
It is still a major, major violation of the Federal Children's Online Privacy Protection Act, or COPPA.
With the director of the FTC's Bureau of Consumer Protection saying,
Amazon's history of misleading parents, keeping children's recordings indefinitely, and flouting parents' deletion requests violated COPPA and sacrificed privacy for profits.
COPPA does not allow companies to keep children's data forever for any reason and certainly not to train their algorithm. So Amazon just agreed to a proposed settlement,
including a $25 million civil penalty. But notably, it also doesn't just stop with a fine.
Amazon is also being required to delete the data in question and never use voice information,
whether it be from a child or adult, to create or improve a product. However, some key things.
This is still just a proposal. We have to wait and see if this gets approved by a federal court.
As we often see with the haves, unlike the have-nots, despite agreeing to the settlement, Amazon denies violating COPPA
and saying that they just design Amazon kids for parents to have full control and to comply with
the law. But also, here's the fun thing with Amazon, they never do anything halfway, even with
privacy violations. Because at the same time this is happening, the FTC has also brought another
complaint, and that one against Amazon's Ring, accusing them of violating their customers'
privacy by allowing countless employees and hundreds of contractors access to the videos from Ring cameras, leading to situations
we haven't even talked about, like one in 2017 when a Ring employee watched thousands of videos
belonging to dozens of female customers, including from cameras in their bedrooms and bathrooms.
And the FTC saying that Ring didn't have basic security protections for years, allowing hackers
to just take control of their customers' accounts, cameras, and videos. In fact, reportedly 55,000
U.S. Ring customers faced attacks from hackers.
And in some cases,
hackers could even use Ring's two-way functions
to harass, insult, and threaten people, including children.
And so obviously we're gonna have to wait
to see how this plays out for Amazon.
But with all this,
it really highlights just something we've continued to see.
Technology advances so incredibly fast
that the safety precautions that should be instilled in it,
as well as the ability to successfully regulate it,
those trail behind.
So yeah, just be careful with,
at the very least, the listening and video devices that you have around your home. Or I guess just make peace
with the fact that what you think is private is probably not private. And then for any of you
focused on getting your business off the ground, creating a place to share your homemade goods,
or even a personal blog, I got a great solution for you. And it's thanks to our fantastic partner
and sponsor of today's show, Squarespace. I've been partnering with Squarespace for years now.
And of course, I always say it, it's so easy.
There's nothing to ever install, patch, or upgrade.
And creating a beautiful website
with Squarespace's fluid engine is so easy.
Just drag things where you like, no code necessary.
And if you need a starting point,
Squarespace has a bunch of great professional templates.
And with an online shop from Squarespace,
you can sell virtually anything,
physical, digital, or service products.
You can even sell custom merch easily,
and Squarespace handles the production and shipping. Plus, with Squarespace, you get access to all their marketing tools and analytics and their award-winning customer care team Thank you. to get 10% off your first purchase. And then, today marks the start of hurricane season, and with climate change making natural disasters
more frequent, many are questioning
whether the insurance market's actually prepared.
We've seen property insurance rates
ticking up across the country,
for example, right here in California.
State Farm, the largest property insurance company
in the U.S., just pulled out of the market,
which is also the largest in the U.S.
And this is mainly because wildfires
have made the state just too damn expensive to cover,
though the housing crisis and inflation are also to blame.
But nowhere has been hit by this problem
harder than Florida, where State Farm announced that it
would stop offering property insurance to residents way back in 2009, which was then
followed by other major insurers. And that because of record losses to Hurricane Katrina and other
disasters in 2004 and 2005. And so ever since then, Florida's markets have been dominated by
smaller regional and local providers who aren't playing with nearly as much capital as the big
boys. And even they are sinking under the cost, with six of them forced to liquidate just last
year, followed by another one earlier this year.
And now, more than half of insurers
are on the state insurance regulators' watch list
due to their financial health.
So to cope with the crisis,
they've raised premiums through the fucking roof.
With Florida homeowners now paying private insurers
about $6,000 per year,
which is nearly four times the national average.
And rates are projected to jump 40% by the end of this year,
according to an industry group.
And that doesn't even include insurance for flood damage,
which is provided by the National Flood Insurance Program, a federal agency.
And as far as which driving the crisis,
some people, of course, blame catastrophic events like Hurricane Ian,
that being the most expensive storm to ever hit,
the state causing $60 billion in insured losses,
roughly half the total insurance losses from floods and hurricanes worldwide for 2022.
And disasters like that are only getting worse as the climate warms.
But you also have the insurance industry blaming a legal system
that it says promoted excessive litigation and fraudulent claims,
pointing out the premium shot up even as no hurricanes made landfall from 2019 through 2021,
and that in addition to them saying inflation drove up the cost to repair or rebuild homes,
both from increased labor costs as well as higher prices for materials.
And when it comes to the response from Governor Ron DeSantis,
he is sided with the industry's perspective,
with them signing a bill that sought to prevent excessive litigation
by stripping policyholders of the ability to recover legal fees when suing insurance
companies, as well as creating a $2 billion reinsurance fund that private insurers can draw
from to cover their risk, which is also why critics accuse him of being in the pocket of
the insurance industry, which has donated nearly $10 million to him, a PAC that supports him and
the state's Republican Party over the past few years. But also notably, despite his reforms,
the market has continued to implode, with residents either eating to huge costs, leaving the state altogether,
or just raw-dogging it without any coverage at the risk of getting financially fucked by a surprise disaster.
And for those who keep their insurance, many are turning to the state-run Citizens Property Insurance Corp.,
an insurer of last resort for those who can't find coverage in the private market.
But there, even its price far exceeds the national average,
sitting at about $3,700 statewide and reaching $6,000 or $7,000 in certain counties.
And Citizens is also asking for a 14% rate increase to take effect later this year, which will be considered by Florida's
insurance regulators next week. Though a key thing, even that's optimistic. Because if another
major hurricane hits Florida, it could completely wipe out Citizens' reserves and force it to impose
emergency assessments on customers both in and out of the private market, which could mean an
additional 45% for current Citizens policyholders, according to an industry group. And now, more than
ever, an event like that would devastate florida's insurance markets its enrollment in
citizens is up nearly 50 percent from this time last year reaching the point where it now has 1.3
million policies about 16 percent of the market and it's growing at a rate of about 3 000 per
month yeah that's the news on this topic and or the uh the answer to the question you may have
asked while you're buying a home in florida what's the worst that could happen and then europe seems
to be a bit of a powder keg right now. Beyond just the war in Ukraine
and tensions with Russia being on the rise, Serbians seem to be finding themselves in all
kinds of controversy. Starting off with ethnic Serbs in Bosnia, there, many and majority Serbian
areas have threatened to break away, leading to the real possibility that violence will break out.
And the U.S. doesn't want that, but it made it clear that it supports Bosnia if it does,
and as a way to show support for loosome bombers over the Bosnian capital of Sarajevo this week.
The American ambassador saying the flights were to show
a rock-solid commitment to the sovereignty and territorial integrity.
But in addition to that, there's also trouble brewing between Serbia and Kosovo.
The most recent drama coming from elections in northern Kosovo,
which is mostly filled with ethnic Serbs,
but saw ethnic Albanians winning nearly everything.
And one of the key things there is that the local Serbs boycotted the election,
meaning that the Albanian candidates largely won by default
with just about 3% of the vote.
And all this leading to major protests and violence as Serbs tried to stop the Albanian mayors from taking up their posts, and now it's an international crisis.
Serbia's getting involved because the situation deals with ethnic Serbs and because they don't recognize Kosovo's independence.
It's president calling for the mayor's removal, although Kosovo isn't exactly willing to do that.
And it's such a concern that NATO, which already had 4,000 troops in Kosovo, sent an additional 700 in reinforcements and said it's ready to send more. And even though
the U.S. has been a longtime supporter of Kosovo's independence, it still criticized the country's
decision to install the mayors in the majority Serb regions. This whole situation even spilling
into the sports world this week after tennis star Novak Djokovic went to a camera after his first
match at the French Open and wrote, Kosovo is the heart of Serbia. Stop the violence. And while
obviously calling for violence to stop is hardly a hot take, the first part ruffled some feathers. Because even though Kosovo
is now independent and has always been on the periphery of Serbia throughout history, it's
played a major role in shaping Serbian identity and religion. His comments even leading to France's
sport minister saying that his actions were not appropriate and shouldn't happen again. And with
this, some have even drawn comparisons to a situation between Ukrainian player Marta Kostchuk,
who refused to shake the hand of her Belarusian opponent. Though the French sports minister has said
that those two situations are not on the same level
and is fine with the pro-Ukrainian messages.
But for now, we're gonna have to wait
to see how things play out.
And of course, I'd love to know everyone's thoughts
in general, but especially if this story
in some way impacts your friends or family.
And then I have the sexy, sexy job today
of trying to break down the chaotic mess
that is the debt ceiling package
that actually passed the house yesterday.
Right at the very top level of this debt ceiling package
that just got passed in the house, the deal suspends the $31.4 trillion
borrowing limit until January of 2025 in exchange for some spending cuts and caps. And according to
the Congressional Budget Officer, CBO, the bill will cut federal spending by $1.5 trillion over
the next 10 years. We talked about some of the details of the package on Monday, but I wanted
to dive a little bit deeper and specifically look at the provisions that are going to affect
Americans the most. First off, one of the most talked about parts of the bill is the measure
that would end the multi-year freeze on student loan repayments and require borrowers to resume
payments again in September. That move will have an absolutely huge impact. 45 million Americans
have student loans, which together total $1.6 trillion, making this the single biggest kind
of consumer debt Americans owe after mortgages. Right, and requiring people who haven't had to
to repay their loans at a time when the economy is struggling and inflation continues to soar.
That's going to affect a lot of people.
In fact, according to the chief economist for the consulting firm RSMUS, households can see a $40 billion reduction in disposable income as a direct result of this policy.
Though notably here, this deal doesn't scrap Biden's sweeping student loan forgiveness as Republicans were posed in an earlier draft.
Though that is still playing out before the Supreme Court.
Also, another part of the package that's likely going to hurt millions of Americans already struggling with high prices are the proposed cuts to food stamps, also called
SNAP. Specifically, the bill would expand the work requirements for SNAP eligibility. Under the
current eligibility rules, adults 49 and under are required to either work or participate in a
training program for a minimum of 80 hours a month, with there being exceptions for people who are
pregnant, live with children, or have certain disabilities. But this deal would raise the age
of people who have to meet those requirements to 54, which according to the Center on Budget and
Policy Priorities,
could risk hundreds of thousands of Americans losing their essential food assistance,
with a top food aid expert explaining that many older adults work part-time or seasonal jobs
and thus may not reach the 80-hour-a-month requirement.
But also a very notable thing here,
despite the fact that the cuts to food stamps were one of the biggest Republican sticking points
and one they have widely touted,
the debt deal also includes some pretty major expansions to SNAP eligibility,
because in addition to expanding work requirements, it also creates new exceptions for those
requirements, with those now being extended to veterans, homeless Americans, and people 18 to 24
who were previously in foster care. And in fact, top officials have said that this is actually the
first ever time that people experiencing homelessness will not have to meet work
requirements to qualify for SNAP, which is why the CBO estimates that the number of SNAP recipients
could actually grow by 78,000 on average and increase spending by $2.1 billion.
Also in a similar vein, another big part of this deal are changes to the Temporary Assistance for Needy Families, or TANF,
with that being a program that provides temporary cash for families in need.
It would overhaul a work requirement framework for the state programs that would effectively require states to expand work requirements.
And while the actual effect there would vary state by state, the CBO estimated that the move in total would slightly reduce the amount of money the federal government gives to states for the program. Also beyond all that, another provision of the bill
that's gotten a lot of attention and a lot of backlash would fast track the building of a natural
gas pipeline in West Virginia. Specifically, we're talking about the completion of the 303 mile
mountain valley pipeline, which would cut through federal forests and hundreds of waterways and
wetlands, something that's been stalled by numerous court fights and environmental regulations. With
the construction having gone millions of dollars over budget and violated many clean water laws,
with one environmental group even calculating that it's made more than 500
violations in two states. But the debt deal is going to speed up the process for getting permits
for the project, essentially making it impossible for environmental groups to bring legal challenges
for government approvals. And it shifts jurisdiction from regional courts that have continuously ruled
against MVP. And as far as why this is being included in the debt deal, it is not a shocker.
The project has been championed by West Virginia's Democratic Senator Joe Manchin, a man who, it's likely just a total coincidence, rakes in three times more
money from pipeline companies than any other member of Congress. And Manchin's vote believed
to be essential to pass this deal in the Senate. And Biden promising that he would expedite the
pipeline in exchange for his vote on the sweeping climate spending bill last year that Manchin had
single-handedly held up. That's also not the only provision in the legislation that has angered
environmentalists. It'll also streamline environmental permitting for huge energy projects, including ones on fossil fuels. And all this,
in addition to a number of other big measures in this package, including many that we hit on
Monday, where things like cutting $20 billion in IRS funding, clawing back around $27 billion
in COVID relief funds, mandating that significant expenditures be offset with pay-as-you-go spending
reductions, as well as capping non-defense discretionary spending, which is a broad
category that includes funding for education, national parks, and scientific research. Also, in addition to that, there's been a lot of focus on
what's not in this deal, where the deal doesn't touch military spending or entitlements that
Republicans had floated cutting, like Social Security and Medicare. And that's massively
significant because those areas make up the country's largest expenses by far, totaling
nearly 80% of last year's budget alone and costing $4.9 trillion. Additionally, much of Biden's
domestic agenda was largely spared from the sweeping cuts and caps Republicans initially wanted. So as a result, with all of this together,
you have many experts noting that this debt deal ultimately is not expected to actually bring down
the U.S. deficit. With analysts at Deutsche Bank estimating the reduction in the annual deficit
will only be a few tenths of a percentage point. So that's largely the substance of the bill. But
I also want to touch on the political aspect of it. Because in addition to this having massive
implications for the actual future of America, this was also very meaningful for Kevin McCarthy.
This deal was easily the biggest test of his career as Speaker.
While he did ultimately achieve his goal of passing a bill that cuts spending
and proves that he can pass bipartisan legislation,
it did come at a cost and seriously upset a number of his members.
But the final version of this debt bill was way whittled down
from the first one the House Republicans passed as their starting point for negotiations.
The only reason he was able to ultimately pass this was he had significant help from Democrats.
I mean, the entire deal nearly fell apart before it even got to the House floor
because far-right members of McCarthy's own party moved to block the measure from consideration,
that forcing Democrats to swoop in and save his ass.
And then, once the bill was finally put to a vote,
it was passed with more support from Democrats than Republicans,
with Democrats voting 165 in favor, 46 against,
and 149 Republicans backing the measure with 71 opposing it.
Which I will say, that is still a solid 2-to-1 ratio of Republican support for McCarthy. But as we mentioned yesterday, numerous members of the far
right wing of his party have threatened to oust him as Speaker over the debt deal. And 71 Republicans
voting against you is not a non-important number. But as of recording this, no official moves have
been made, and McCarthy, for his part, has said he isn't worried. With him touting the bill's
passage as a big victory last night. Though there, it's not a done deal, but it pretty much almost
is. It has to make its way through the Senate, which has a very narrow split, but both Democratic and Republican leadership have pushed for their members to fast-track the
bill, with the goal being to get it to Biden's desk by Monday at the latest, which is the deadline to
suspend the debt ceiling. And while there, there are a couple of senators on both sides that are
threatening to slow the bill down with amendments. Unless something drastically dumber than, I don't
know, stuff in recent memory happens, it's probably going to get through even with some slowdowns,
because any changes at this point would force the bill to go back to the house
and there's just not enough time.
But like all things, it's not done until it's actually done.
And so we'll have to wait to see.
And even then, we'll find ourselves back here sooner than later
because that's just the way things are.
And that is where today's show ends.
If you're looking for more news, I got you covered here or links in the description.
But as always, my name's Philip DeFranco.
You've just been filled in.
I love your faces and I'll see you next time.
Which will be Sunday.
I'll see you back here Sunday.