The Prof G Pod with Scott Galloway - Office Hours: Virtual Real Estate, Tech Regulations, Fatherhood, and Prioritizing Your Life

Episode Date: January 10, 2022

Scott answers a question about platforms like Decentraland and Sandbox, where users can buy and sell virtual land as NFTs. He then shares his thoughts on how to address the negative externalities of scaling industries, offers advice on how to balance work and relationships, and reflects on his dos and don'ts of parenthood.  Music: https://www.davidcuttermusic.com / @dcuttermusic Learn more about your ad choices. Visit podcastchoices.com/adchoices

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cards, savings accounts, mortgage rates, and more. NerdWallet, finance smarter. NerdWallet Compare Incorporated. NMLS 1617539. Welcome to the Prop G Pod's Office Hours. This is the part of the show where we answer your questions about business, big tech, entrepreneurship, and whatever else is on your mind. If you'd like to submit a question, please email a voice recording by visiting officehours.propgmedia.com. Again, that's officehours.propgmedia.com. First question, and let me remind you, I have not seen these questions. I have not heard them. I have no idea what this individual is about to ask. Question number one. Hi, Scott.

Sam here from Jackson Hole, Wyoming. I'm a realtor, and I'm interested to hear your thoughts on virtual real estate. First, virtual real estate on platforms like Decentraland and The Sandbox, but also what you think of its augmented reality applications. Will this impact real estate and property rights

as we know it, or is this another speculative fad? Thanks for all you do. My friends and I love the dog. Okay. Decentraland and Sandbox, if I understand them correctly, allow users to buy and sell virtual land in their game worlds as NFTs. Users can also charge others for access to their land. For example, users can rent out space on their properties

to brands that want to advertise or host events. There's a finite number of land parcels on both platforms. And back in November, Republic Realm, a firm that develops real estate in the metaverse, paid about $4 million for land in the sandbox. This was the largest transaction to date, according to the Wall Street Journal. The firm said it also plans to partner with Atari to develop some of the land.

So you might think this makes no sense, but I find NFTs are going to be probably more interesting and enduring than the majority of crypto coins. I think basically a Bitcoin, Ethereum, and then everything else is just going to ride a kind of mercurial ride based on one guy's tweets and then go away once he stopped tweeting about them. I think NFTs are actually more enduring because scarcity is a means of signaling your value as a mate. The reason we buy Ferraris and McLarens, I was just in London and the McLarens are everywhere, which is just, okay, it's ridiculous to have a, whatever it is, a three or $400,000 supercar that can go 180 miles an hour in a city where you just don't get above 20 miles an hour. But what you're trying to say is there's very few of these. And because there's so few and there's such examples of artisanship, that they cost a lot of money.

Which means that I have a lot of money, which means I have skills, which means I have an appreciation for the finer things in life, which means you should want to have sex with me because your kids are less likely to die or get eaten by a competitor in that ecosystem if you mate with somebody who can afford a McLaren. And it's sort of what art is. Art is, I have a lot of friends who've done really well in the alternative investment space. And the first thing they do, which is, in my opinion, a radically douchey move, is they decide they're really into art once they get really rich. And a lot of it's signaling, it's also in an incredible asset class,

but the key is scarcity. So there's one Mona Lisa, but what artists in the ecosystem decided was, I know, let's create scarcity on a different kind of volume. And that is we'll do 300 limited edition prints and we'll break the cast or the die, whatever they call it, after doing just 300. And the artist will sign all 300, 33 of 300, 34 of 300. And we won't get as much as the original, but 300 times 40% of the

original is a lot more. And this is, I don't see how this is any different. If you can maintain that scarcity credibility and say, we only have is any different. If you can maintain that scarcity credibility and say we only have X number of lots and you can maintain traffic and start selling advertising. And this is, in my opinion, this is as ridiculous or as not ridiculous as any cryptocurrency.

As a matter of fact, it feels more tangible to me because you can start signaling if you buy a house in a metaverse that costs a decent amount of money and in it, as you drive, other people in the metaverse go buy that house and they see that you have a Ferrari in the driveway, then that signals their power online. of finite real estate and investment opportunities and stores of value in interoperable virtual worlds is absolutely going to be something that is enduring. The power of it is, I think, is as a store of value, similar to gold. And the reason why gold became such a store of value was it was somewhat limited. There was some scarcity credibility. You couldn't just invent hundreds of pounds of gold overnight. You had to go mine for it.

I remember going to Knott's Berry Farm with my mom when I was a kid, and we'd pay $11 to take a pan and go get a few flakes of gold in something resembling a river. That was my great adventure into the outdoors with my single mother at the age of nine at Knott's Berry Farm. Not as good as Busch Gardens, where I could go and my dad would get totally fucked up as I went down there one ride and dad took seven tours of the brewery because they gave free beer out.

Good times. Good times. Hold me. Hold me. Anyway, back to scarcity credibility. If they can pull this off, if they can create traffic, if they can maintain and create scarcity credibility, that once these lots are gone, that's it. I think there's something here. I think most of these, if you were going to invest in the space, I would invest across several asset

classes on several metaverses because I think most of them will go away, but I think the winners will probably make up for your losers. Think of it as like a VC portfolio where you want to have at least a half a dozen or a dozen bets. You want to have a half a dozen or a dozen chips on different numbers. Sam from Jackson Hole, Wyoming. By the way, someone sent me a brochure on a community, no joke, in Jackson Hole that's in this beautiful box canyon that is custom built for people who own jets. There's a lot of people trying to avoid taxes. Wyoming doesn't have a state sales tax. And so they have built a community where instead of a garage, you have a hangar.

Well, that's the world we live in. I'd like to spend more time in Wyoming. I have been to Jackson Hole. Let's get back to me. Let's get back to me. I went skiing in Jackson Hole. Very difficult mountain. Very difficult mountain. Also very cold. And given that I am a total wimp and not a very good skier, not for me. But I can see why people love it there. Sam, you may see me in Jackson Hole, but I won't be skiing. Thanks for the question. Next question. Hi, Prof G. This is Sam from New York. And I've got a question for you about last mile delivery. In your newsletter, you briefly touched on what I think is the most important ethical consideration in the development of sapiens had access to much more time. And yet his argument goes that it led to worse lives long-term for sapiens, worse diet, worse health, lower happiness, and ultimately the earth at large. As a new father, I tend to agree with you that I will take any extra minute I can if it means an opportunity to spend time with my son. But do you believe

that there could be negative effects of this innovation in last mile? What is the ethical responsibility of companies in the last mile space, whether for groceries, books, movies, or health, to consider the larger psychological and anthropological changes that come from this innovation? And if you do think there are negative externalities at play here, is there ever any hope for us to prioritize humanity and Mother Earth over shareholder value? Thanks, as always, for everything you do. So Sam from New York, let me start off by saying that you are exactly the kind of man that should be having children. You're thoughtful, you're thinking long-term, and thinking about

these things in the context of being a good father and a good citizen. Yeah, these things that save time, it's like most industries. They're usually pesticides are good, fossil fuels are good, and then they scale and they create externalities. And then it's up to us to rein in those externalities. Now, something you said, I think is, I don't want to use the term dangerous, but can lead to bad places is the cold comfort or the delusion that companies and capitalists, their better angels are going to show up and they're going to think about how their growth and their scale might be damaging the world and be more responsible. There are some people like that. The majority of business people, including yours truly and almost everyone I've ever met, will find reasons and excuses why their scale is not damaging the earth because when it's

raining money, it blurs your vision. And then once you're out of the company and you've cashed out of your options and your stock, then all of a sudden you find God and start focusing on climate change and minimum wage. But until then, whatever gets you the Benjamins. And that is sort of the model that works best. And I hate to say that. Now, who is supposed to be thinking about the long-term damage and the externalities? We are as a collective, and we're supposed to elect talented people who think long-term and implement policies and regulations and laws that prevent a tragedy of the commons. But what I find is dangerous is that lately everyone seems to be

shaming companies thinking that if we shame them, then Mark Zuckerberg is all of a sudden going to become a better citizen. And it's just, don't hold your breath, folks. I do think this notion of scaling anything, whether it's pharmaceuticals, pesticides, a profit motive, if you don't maintain or calibrate or measure those externalities and then weigh in with thoughtful regulation. Anything, anything eventually creates externalities, and it's our job to vote in thoughtful people who think long-term and resource them so they can go in and break up Facebook, regulate the App Store, and stick a bunch of tech executives in jail. Sam from New York, Sammy from NYC. We have one quick break before our final two questions. Stay with us.

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The Capital Ideas Podcast now features a series hosted by Capital Group CEO, Mike Gitlin. Through the words and experiences of investment professionals, you'll discover what differentiates their investment approach, what learnings have shifted their career trajectories, and how do they find their next great idea? Invest 30 minutes in an episode today. Subscribe wherever you get your podcasts. Published by Capital Client Group, Inc. Welcome back. Question number three. Hey, Scott.

This is Jack from Atlanta. I first wanted to thank you for serving as a role model for myself and I'm sure for many of the other listeners. Your stories of your commitment and humility with your mother in her last days of life have inspired me to make sure that those closest to me, including my parents, my sister, and my girlfriend of seven years, know just how important they are to me and how much I love and care for them. So thank you for everything you do. Anyways, on to my question. You talk all the time about how important hard work is for young professionals early in their career in order to get ahead in the long term. My question to you is, how should young professionals prioritize their time

outside of work in terms of being physically fit, deepening their relationships with their family and friends, or serving their community? How can we go about prioritizing everything? Thanks. Jack, thanks for the question and the kind words. So yeah, it's everybody wants it now, right? Your family wants it now, your work wants it, it's everybody wants it now, right? Your family

wants it now, your work wants it now, the gym wants it now, and it's very easy to put off. The one thing that is kind of the marginal activity that's always kind of gets put off is working out. I find unless I work out in the morning, it doesn't happen because there's always a better reason or a better use of the hours the day goes on. And let me be clear, everybody knows somebody who is physically fit, great at what they do, has a great relationship with their family, a hot boyfriend or girlfriend,

great friendships, donates time at the ASPCA, and has a food blog. Assume you are not that person. You are correct to think about prioritization. I think in your young years, you want to maintain relationships, invest in them, be smart about investing, quick text messages, call the mom, how are you,

checking in. But I think you want to prioritize, first and foremost, your professional trajectory. And I think that economic success and viability is very important as a mate, especially for men. And I realize how sexist that sounds. And I think women should be economically independent. I think that it's super important. And I'm not suggesting that women don't have the same obligations or needs for economic security. But three quarters of women cite economic viability as the key criteria for a mate and a man, and it's less than a quarter for women. And I think a good place to start as a young man is to assume that you're going to take economic responsibility for your family. And there's just no getting there without working your ass off.

I don't know anyone other than people who've inherited wealth who got economically successful or secure without spending a good 10 or 20 years of working. I think being physically fit is something that if you're efficient and disciplined, you can do in 15 to 30 minutes a day with the apps. I like to row. I can get a pretty, pretty intense workout on a rowing machine in 12 to 16 minutes. Try and row 2,000 meters in, shit, what do I try and do it in? In like, you know, nine minutes, probably means 12 minutes and I'm just bragging. But there are ways to get a pretty good burn pretty efficiently in terms of physical fitness. And in terms of relationships, as a young man, I would be smart about it. Put yourself in a position of meeting people professionally and personally and finding a mate. Push yourself out there, even when you don't feel

like going to the softball league or a dinner with new friends or out with friends. Push yourself to do that because you sound like a young man, you're out of stage where you want to, the most important decision you'll make and the best thing that can happen to you is meeting a wonderful partner, specifically the person you're going to have kids with or just spend your life with. It just, if you find the right person, everything burns a little bit brighter. If you find the wrong person or you're alone, I'm not saying you can't be happy alone. I'm not saying you need to get married to be happy. But most people cite their relationship with their mate

as kind of being their ballast in their life. And I think the key to that ballast, or one of the keys, is being economically viable. But in a capitalist society, America becomes more like itself every day. And this is what people don't tell you on the Hallmark Channel, and that is America is a loving, wonderful place

for people who have money. And it is a rapacious, unfair place for people who don't have money. So boss, the world is not yours for the taking, it's yours for the trying. Professionally, try really, really hard. Thanks for the question. Question number four.

Hi, Prof G. My name is Ben from Oakland, California, right across the bay from your favorite city, San Francisco. My question focuses on something that you talk very honestly about, and that is fatherhood. My wife and I are expecting our first child next month. We're both very excited and slightly terrified,

and we're looking forward to our new titles of parents. My question is, if you could do it all over again, from the beginning, what would you do differently in regards to raising children and what would you double down on? Thank you for taking the question and most importantly, Go Bears. That's right. Go Bears, Oakland, California. I live in Rockridge, a wonderful place in Oakland. First off, congratulations. One thing I would not do is ever be in the delivery room again. I found it so disturbing.

They were much more worried about me. I had to sit down. I was so nauseous. I don't buy this notion that men should be in the delivery room. And I know that sounds very 60s, but whatever. Sue me. Look, a couple of things you're going to feel or things I felt. I was totally freaked out with my first kid.

I was worried I didn't have enough money. I had not been especially good at relationships. I was worried that, you know, now if I fuck up this relationship with this partner, it's going to have more impact. The whole thing kind of freaked me out. I think that was somewhat natural. I was also very excited. I did not love this thing when it came out. People talk about you're just instantly in love with it. I fell in love with my boys over time, but it just looked like a science experiment to me.

So I think, and maybe, I don't know, maybe I'm just weird or fucked up in the head, but if you feel those things, know that other people feel them as well. Fear, anxiety. I would say initially what I would do that I did do and I think was smart, I think you're there to be very supportive of your wife. I think you have responsibility for the economics of the household because I think generally speaking, women, at least early in the child's life, are more important to the kid. You're mostly useless, and we pretend that it's a ton of fun the first year. It's not. And the dad doesn't play a huge role. I think your role is to be supportive of your wife and do the night feedings.

Make sure that your wife gets some sleep. And recognize that having kids is really hard and stressful, especially initially. It sounds easy to say for me, but if you have the flexibility and the economics, I would have a second one sooner rather than later. I find having two is three or four times better than one. I think just having one creates too much pressure or tension on that one child. I was an only child. And I think that person most likely grows up a little bit more selfish.

I think the negotiation and the arguments and the tension and the joy that two kids bring to a household is really wonderful. So I'm really glad I did too. But just recognize there is an arc to happiness. And across almost every socioeconomic group and every culture and every geographic boundary, happiness looks like a smile. And that is up until this point, your life was mostly about Star Wars and football games and getting drunk with buddies. And then you get dramatically less happy because kids and your career are stressful. You realize that you're not going to be senator or have a fragrance named

after you. And generally speaking, people are the least happy from kind of the ages of 25 to 45. So if you feel stressed out and a little bit unhappy, that's okay. That's part of it. But look, it's impossible to explain until it happens, but you do fall in love with this thing. I am the only thing in my life that's more important to me than me because I'm a very selfish person are my kids. And it's also hands down the most rewarding thing. And it's also wonderful that you're having kids. I think it's great that people, having a kid is kind of the ultimate expression of optimism and a commitment to your partner because whether you like it or not, you're in each other's lives for 18 years. And there's some truth to the fact that the best

thing you can do for your kids is to be a very generous, loving person to your partner, because they'll see that and it creates a harmonious lifestyle. Ben from Oakland, congratulations to you and your partner. That's all for this episode. Again, if you'd like to submit a question, please submit a voice recording by visiting officehours.profgmedia.com. Our producers are Caroline Chagrin and Drew Burrows. Claire Miller is our assistant producer.

If you like what you heard, please follow, download, and subscribe. Thank you for listening to the Prop G Pod from the Vox Media Podcast Network. We will catch you on Thursday. 2022. the basics of artificial intelligence. We're answering all your questions. What should you use it for? What tools are right for you? And what privacy issues should you ultimately watch out for?

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