In short
The “crisis of adulthood” behind falling birth rates, worsening young-adult mental health, weaker relationship formation, and how remote work and digital media reshape work, dating, and politics.
Guest
John Burn-Murdoch is a columnist and chief data reporter for the Financial Times, known for data-driven reporting and chart-based storytelling.
Key claims
- Falling birth rates reflect fewer young adults forming happy, stable couples—not just whether governments offer incentives.
- Economic and social frictions (housing insecurity, unstable relationships, fewer unstructured social opportunities) block coupling and parenthood.
- English-speaking countries show sharper young-adult well-being declines, linked to housing insecurity and social-media-driven expectation gaps.
- “Financial nihilism” explains some Gen Z/crypto risk-taking: when homeownership prospects look impossible, people rationally shift toward high-risk bets.
- Remote work (pre-ChatGPT) reduced junior hiring and increased digital-only work, which may overlap with AI automation.
- AI chatbots may polarize less than social media and often nudge toward moderate, mainstream answers.
Notable examples
housing price increases as “birth control”; reduced pubs/nightlife after COVID; dating apps and rejection; gambling ads; gender ideology gaps amplified by different TikTok “internet worlds.”
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOThe Crisis of Declining Birth Rates
1:00 to 1:38
Discussing the decline in birth rates and its societal implications.
“so why make it harder with a dozen different apps that don't talk to each other?”
The Crisis of Declining Birth Rates
5:08 to 7:19
Discussing the decline in birth rates and its societal implications.
“Your work at the Financial Times covers a lot of the same terrain we do on this show.”
Social and Economic Factors Affecting Relationships
7:19 to 11:00
Exploring the impact of economic factors on relationships and parenting.
“This is kind of the boring way an economy collapses.”
The Role of Remote Work and Alcohol in Social Connections
11:00 to 14:00
Investigating how remote work and drinking culture affect relationship formation.
“The far right fomented, in my opinion, a myth that the data doesn't support that this rests at the feet of women who opt for their career at the expense of family and end up childless and unhappy.”
The Crisis of Housing for Young Adults
14:00 to 15:35
Explore how housing insecurity is affecting the well-being of young people.
“And I think you're absolutely right that for various reasons, that unstructured hanging out among young people is happening a lot less than it was a decade or two ago.”
Expectations vs. Reality for the Younger Generation
15:35 to 17:48
Discuss the impact of social media on young people's self-esteem and mental health.
“There's a lot of data showing that people today, young people today on a lot of dimensions, have as much or maybe even more on some levels than young people 30, 40 years ago.”
Potential Solutions for Young Adult Challenges
17:48 to 21:50
Investigate various approaches to improve the lives of young adults, including national service.
“Yeah, I think, again, that's exactly right.”
The Importance of Face-to-Face Interactions
21:50 to 22:33
Emphasize the value of interpersonal activities in fostering a sense of purpose.
“So parenting gives people an incredible sense of meaning.”
The Importance of Face-to-Face Interactions
22:34 to 23:29
Emphasize the value of interpersonal activities in fostering a sense of purpose.
“Let's face it, none of us bounce back like we used to, especially after a great night out.”
The Importance of Face-to-Face Interactions
23:53 to 24:15
Emphasize the value of interpersonal activities in fostering a sense of purpose.
Show all 24 chapters
The Importance of Face-to-Face Interactions
25:01 to 25:57
Emphasize the value of interpersonal activities in fostering a sense of purpose.
“Support for the show comes from LinkedIn ads.”
The Importance of Face-to-Face Interactions
26:00 to 26:12
Emphasize the value of interpersonal activities in fostering a sense of purpose.
Financial Nihilism Among Young Adults
26:12 to 28:00
Examine how financial nihilism shapes the behavior and mindset of young adults today.
“rational response to being locked out of housing, a phenomenon called financial nihilism.”
The Economic Reality for Young Generations
28:00 to 29:22
Explore how economic conditions affect young people's spending habits and outlook on home ownership.
“because I don't have one of these big long-term looming costs like a house or a family.”
The Rise of Gambling Culture
29:22 to 31:22
Discuss the pervasive gambling culture and its negative effects on youth.
“You guys just keep using my credit card to prop up your assets artificially.”
The Gender Divide in Political Ideology
31:22 to 36:19
Examine the widening ideological gap between young men and women and its roots in social media.
“So there have been a bunch of studies in the U.S.”
Impact of AI on Work and Employment
41:28 to 42:07
Analyze the narrative around AI and its effects on job markets, especially remote work.
“this is a job for Indeed Sponsored Jobs.”
AI Job Loss Narratives and Remote Work
42:07 to 43:34
Explores the misattributed narratives linking AI to job losses and the impact of remote work on hiring.
“In your work, you suggest that the AI job loss narrative may have been misattributed.”
Assessing AI Productivity and Its Challenges
43:34 to 46:28
Discusses the complexities of measuring productivity changes due to AI in various professions.
“There's really solid evidence that hybrid working has been pretty good for everyone involved, for the bosses, for the juniors, for everyone.”
AI's Role in Media Polarization
46:28 to 49:57
Examines how AI chatbots influence political discourse and potentially moderate extreme views.
“and we will have much better answers even in a couple of years than we do today.”
Youth Well-Being and Societal Trends
49:57 to 52:20
Investigates the current state of youth well-being and the potential for positive change amidst challenges.
“Your charts have almost become as recognizable as your byline.”
Addressing the UK's Economic Challenges
52:20 to 55:58
Analyzes the structural issues affecting the UK economy and potential reforms for improvement.
“I honestly think we're probably past the bottom.”
Debating the Impact of SpaceX and Wealth Inequality
56:01 to 59:02
Explore the complex views on SpaceX's influence on wealth and innovation.
“So I think permitting and centralization are probably the biggest two I would point to.”
Debating the Impact of SpaceX and Wealth Inequality
59:36 to 1:00:29
Explore the complex views on SpaceX's influence on wealth and innovation.
“It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks.”
Transcript
Automatic transcript. May contain errors.0:00Scott Galloway:Support for the show comes from Section. The recent joint ventures from OpenAI and Anthropic point to the same thing. Enterprises are not going to get value from AI by just rolling out licenses. If you're deploying AI and you want real ROI, you need to invest in changing how people work. If you want to do this fast with a team who actually knows what they're doing, you should talk to our company, Section. This is actually a paid ad, but it's a little bit weird. Full disclosure, I'm an investor in Section as I feel that the part of AI that is most underinvested is what I call the adoption layer.
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2:24Scott Galloway:Episode 402. 402 is the year at Code Covering Eastern Nebraska. In 2002, the euro was officially introduced as cash. If I had a euro for every woman that finds me really unattractive, eventually, women would find me attractive. Pretty sure that's a hate crime. Go, go, go!
2:54Scott Galloway:Welcome to the 402nd episode of the Prop G pod. Team Tartan is coming to town. That's right. We're up against Morocco. We are top of the table in our flight, in our match group for a brief time. Scotland has been in the World Cup 12 times and has never made it past the group stage. Only team to have never done so. It's the first time we've been there since 1998. Is that right? 1998. So I'm super excited. it. As you can see, I don't know if you can see, I don't even know if this is televised. I'm wearing, I'm wearing the official kit. You know, wee lass. I can't wait. I bought jerseys for my boys.
3:30Scott Galloway:They refuse to wear them. So I'm going to wear three of them. That'll show them. I'm super excited. I'm going to go to a pub tomorrow night. Anyways, back to me, back to me. If, of course, they get knocked out, I'll then be rooting for Team England. And then if both of those teams get knocked out, I'll digress to rooting for Team USA. Despite being American, I'm kind of sick of America winning everything. But anyways, so excited about the World Cup. This is McTominay. McTominay, if you don't know who that is, you're going to know who it is by the end of the World Cup. I am just so excited about this.
4:07Scott Galloway:I think the World Cup is doing what the UN was supposed to do. And that is, I don't know, bring us closer together and stop wars. We should just have the World Cup like every—we should have it every year. Why not? Just have it every year. Okay, enough of that. What's happening? In today's episode, we speak with John Byrne Murdoch, a columnist and the chief data reporter for the Financial Times. We discuss why fewer people are having children, how remote work is changing the social fabric, and whether the cost of modern life is making relationships harder to build. And when it's his first time on the pod, I like to think we discover people that other people haven't heard of.
4:41Scott Galloway:And that's not to say that John doesn't do great work and doesn't have his own following. But I love finding kind of these wonky, insightful people that maybe a decent percentage of our listenership hasn't heard from. And this guy's one of them. I'm going to bring him back a bunch. I think it's fantastic. Enjoy our conversation with John Byrne Murdoch.
5:08Scott Galloway:All right, let's bust right into it. Your work at the Financial Times covers a lot of the same terrain we do on this show. Today, we're going to start with a topic we touch on a lot, but never go as deep as we'd like. And that's the decline, almost the absolute, I don't know, collapse in birth rates. What does that mean for how we think about solutions? I think this is such an interesting line to draw out here and focus on because it really changes the conversation quite significantly. for me when we talk about falling birth rates we are really talking about increasing singledom and just a decrease in the number of young adults who are in happy stable relationships period that for me makes this a much broader societal question it's no longer about um are do happy stable couples feel that they are in a place where they can have kids it's about do various do young men and women feel like they're in a place where they can couple up I think it moves the question, moves the conversation, at least in part, away from a focus on the policy levers that governments are used to pushing and pulling and towards this broader conversation that shows up in all sorts of different data sets.
6:25and young adults struggling in this transition from adolescence to adulthood, and particularly struggling when it comes to feeling they're in a position to settle down with someone and everything that comes with that.
6:39Scott Galloway:I love this topic. So first off, this really is a quote unquote big deal. And that is across almost every Western economy, birth rates are plummeting. And why should we care? The population explosion that everyone was worried about in the 70s, that bomb is detonated, but it's imploded, not exploded. And if we keep increasing the ratio of old, unproductive, expensive people to young, productive people, we're going to see the majority of our tax revenues go to fairly unproductive investment. And that is taking care of an aging, sick population that keeps voting itself more money. So this really is a crisis.
7:19Scott Galloway:This is kind of the boring way an economy collapses. What I got wrong, John, was I thought this was simply a matter of economics, that if you put more money in young people's pockets, they'll have more kids. And they have found that economic incentives in Japan and South Korea and northern European nations actually haven't had the desired effect. And I like what you're saying about the bottom line is at a very basic level, people have kids when they have sex. And when they don't have sex, they don't have kids. and we're in, as Deborah so said, we risk sextinction. And that is young people aren't connecting literally, metaphorically and literally.
7:58Scott Galloway:And I think there's so many things going on here. I think the anti-alcohol movement is bad for birth rates. A lot of kids are born accidentally and then you find out, okay, let's have the thing. And then housing prices, it ends up that housing prices are a form of birth control, that every 10 % increase in housing prices, There's a 1 % decline in birth rates because housing or buying a house is sort of a, my ex and I bought a house. And then we started thinking, okay, do we paint the second bedroom blue or pink? And let's pull a goalie, right? It's a path towards having kids. The other thing is, and I want to get your response to this, is that I wonder if the solve is to make having kids more aspirational, making it more, I don't know what the term is, prestigious, cooler, for lack of a better term.
8:54Scott Galloway:But I'm curious what you think a solve might be here, because it doesn't appear to be just money. Any thoughts? Yeah, I mean, one thing on the money side is that there is some evidence that if the financial bonuses, financial incentives are strong enough, that they do move the needle a little bit. But generally, we're still talking about what they do is they slow the decline in birth rates rather than actually causing the number to go up. so they they may be helping but they're being drowned out by these broader social and cultural shifts um but i do i do agree with you i think we're talking here about various different barriers and frictions to that that come between someone and the point where they are sufficiently secure stable relaxed enough to have kids housing as you say is one of those but screens social media negative stereotypes about the opposite sex all of these things are quite plausibly another layer that is um stopping people from connecting on your point about um making kids more high status as it were to use to use that framing i definitely think that could help but again i think that kind of assumes that the place we're at is there's loads of happy couples sitting around with no kids and to be clear there are some but by and large what we're talking about here is just a few people coupling up in the first instance, or when they are coupling up, they're in these unstable, insecure relationships.
10:20Like in many countries now, a couple that moves in together is more likely to break up than to have a kid. And that's never been true until now. So I still think what we almost want to do is make having a girlfriend or boyfriend high status. And you know, that sounds ridiculous to say, but on various social media platforms now, Now, there is this idea, certainly for girls and young women at least, that having a boyfriend is kind of lame. And to be clear, you know, there may even be a certain validity to that if you look at it in certain ways. But I do think it's about, you're right to say, it's about these big sweeping narratives as well as the sort of material frictions here.
11:00Scott Galloway:And there's a myth here, right? The far right fomented, in my opinion, a myth that the data doesn't support that this rests at the feet of women who opt for their career at the expense of family and end up childless and unhappy. And the reality is, is that the wealthier the household, the more likely they are to have kids. Yeah, from country to country to country, it's the same thing. So higher income and more well-educated people, men and women, are the ones who are far more likely to end up in those stable relationships, stable housing, having kids. Almost all of the action here in terms of fewer couples and fewer kids is happening among the poorest and least well-educated.
11:38Scott Galloway:And also, and I'm a bit of a hammer that sees nails everywhere, I think a lot of it is we aren't producing enough economically and emotionally viable men. The number one stated reason for terminating a pregnancy is that they don't have a reliable partner. This is something that has been true throughout history, but it's possibly becoming more true. if we think about this in terms of the relative sort of financial economic status of young men and women, that gap is now closer than it's ever been. And therefore, there are an increasing number of young women, especially again, in that sort of bottom half of the income distribution, who look around and say, you know, I don't see any brilliant options here in terms of someone who could provide the financial support, let alone other kinds of support, for me to make this really, really big decision that's going to have a big impact on my life.
12:28So it's important to say that there are real financial and economic drivers here. It's just that I think the digital environment often influences how those are perceived.
12:37Scott Galloway:And John, too, sort of less conventional thesis, but I want you to respond to them. I think that possibly remote work and the anti-alcohol movement have resulted in lower birth rates. One in three relationships begin at work and no HR Our manager wants to admit that. But 99 % of those relationships are consensual. I've been to 12 weddings of people that met at my company, and I had no idea they were sleeping together. But it was a wonderful thing. It was a mitzvah. They met at work, they fell in love, and they got married. And I've gotten some pushback on this, and I understand why. But I wonder if 40 % of the pubs and nightclubs closing in the UK since COVID is a form of birth control.
13:17Yeah, again, it comes down to opportunities. for people to get to know each other. And especially those situations where you get to know each other, you maybe find a potential partner accidentally, right? And that applies to people who get to know each other at work. It applies to people who get to know each other after having a drink in a way that maybe they wouldn't have done if they hadn't. And, you know, to be clear, and I suspect you feel the same here, we're not advocating heavy alcohol use. There's obviously a lot of the reduction in alcohol consumption among young people has been positive.
13:47But I absolutely agree with you that creating these kind of unstructured, accidental environments where you meet someone you might never otherwise have met, you get to know them, that's the start of all this. A happy, stable relationship and kids are downstream of a lot of sort of unstructured hanging out. And I think you're absolutely right that for various reasons, that unstructured hanging out among young people is happening a lot less than it was a decade or two ago.
14:14Scott Galloway:I love this topic. So let's move on. Young people, nihilism, economic opportunity. Your Your article makes the point that mental health deterioration among young adults is primarily, maybe exclusively, an English-speaking world phenomenon. Continental Europe doesn't show the same pattern. What's unique about the English sphere, so to speak, John? I mean, this one is, there will be so many answers to this, and it's very much a question I'm still asking. But one of the answers that I think is almost certainly part of what's going on comes down to housing. in every country talks about the housing crisis, right?
14:46Like rents have been rising, house prices rising all over the place. But the impact that's had on young people's housing security does seem to be significantly larger in the English speaking world. So London, New York, San Francisco, but also Dublin, Sydney, parts of Canada, the share of young people, let's say people in their late 20s, early 30s, who own their home has collapsed. The share of people in that age group who live with their parents has risen significantly. And while housing affordability has also got worse in, let's say, across much of Europe, the impact it has had on that transition into secure, stable, long-term housing to that point where you feel like, I've got a stable base now, that impact seems to have been much deeper in the English-speaking world.
15:35And I think that is so destabilizing. And there is decent evidence here that at least a portion of the decline in well-being that we see in the English-speaking world can be explained by that increased insecurity due to people not being able to leave the parental home or not move into their own home.
15:55Scott Galloway:There's a lot of data showing that people today, young people today on a lot of dimensions, have as much or maybe even more on some levels than young people 30, 40 years ago. And they're not doing as bad as people like me would claim. But the problem is, or the issue is, happiness isn't a function of what you have. It's a function of the delta in between what you have and your expectations. And my sense is the expectations are created by 210 notifications a day telling you if you don't have a boyfriend with ripped ads and haven't made$3 million on the SpaceX IPO or selling and trading ETH, that you have failed.
16:37And so the expectations, when you see what feels like everyone around you partying in
16:42Scott Galloway:Saint-Tropez or flying on a Gulfstream, which is all bullshit, right? I must maintain anyone who takes pictures of a private jet does not own a private jet. The feeling that you're failing is just everywhere. And then social media itself raises the temperature and people are constantly arguing and constantly it feels like it's literally an esteem-destroying machine. And also, I just don't think we can underestimate the damage that these online platforms have done to the mental health of young people as these platforms have an economic incentive to separate them from their relationships and their offline relationships and convince them they can have a reasonable facsimile of life online, which creates isolation, especially among young men, and a lack of reward, a lack of friendship, mentorship, romantic relationships, and they wake up at 30 kind of in their basement, obese, anxious, and depressed.
17:37Scott Galloway:It just senses, it feels like there's so many things setting them up for a lack of self-esteem, a lack of purpose, and unreasonable expectations. Any follow-on comments before we talk about potential solutions? Yeah, I think, again, that's exactly right. It's this interplay between the material world and the digital world again, right? So by many estimates, the labor market right now for young people is particularly tough. You've got hundreds of applications per job. So you're getting more rejection in the workplace. You're also getting more rejection from dating apps. So there are real negatives here, the housing situation we talked about.
18:15But then as you say, that's all refracted through this lens that is constantly both showing you the most successful, or to your point, artificially, artificial sense of what the most, your most successful peers are doing. And it's also highlighting bad things in the world, bad things that maybe affect your mental health. So that's exactly right. And it does make the solutions a bit trickier because there are so many facets to this, but I'm sure we'll come on to that shortly. Yeah.
18:42Scott Galloway:I want to talk potentially about some solutions. Some of the research I've seen, it says that Singapore and Israel actually have fairly low levels of young adult depression. and that a big component of that is national service. That at a young age, giving kids a sense of purpose and identity and not immediately having their identity being a source of like feeling persecuted or victimized or giving them a reason to not like other people. I'm a Democrat. That's my identity. And anyone who disagrees with me politically is not only saying my arguments are wrong, they're saying I am wrong as a person.
19:17Scott Galloway:And it creates a, I remember when, I don't know about you, But when I was dating, I couldn't tell you what the politics were of that person. We just didn't care. And now everybody just identifies as a special interest group, which unfortunately often involves believing they either have been victimized or other groups are not as worthy as theirs. And national service gives these young people a sense of unity, a sense of purpose, gets them out of the house, outdoors, working with other people, feeling a sense of purpose. finding friends, mentors, mates, you know, getting good at something, you know, being in service, if you will.
19:56So I like the idea of national service.
19:59Scott Galloway:I really like the idea of making sure kids that we ban social media from people under the age of 16. I do think some of it's economic. I think you got to give kids, young people, a path to housing per your comments. I like some nontraditional solutions. A tax credit for any institution that has dancing. I read this really interesting thing that kids don't dance anymore. Dancing is a key component of mating. It happens with all mammals. There's like a ritual period. And no one dances anymore because they're worried about being on camera and they're not drinking. there's just a series of solutions or fixes, whether it's subsidized housing for younger people, national service, encouraging establishments that have dancing and maybe drinking to get them out of the house, limiting the amount of screen time they have for people as their brain is getting wired through puberty.
20:54Scott Galloway:But like all of these big, big issues, there's no silver bullet. It's a variety of things that need to kind of attack the larger corpus, if you will. Any thoughts, John? Yeah, I mean, it struck me as you're saying that the common thread that runs through all of those is activities involving other people face to face. Like national service is obviously an example of that. Dancing is another. And it feels like we're having this conversation. We're getting as far along as talking about things like national service, which a decade or two, as you say, for people to the left of center like ourselves, would have seemed strange, but interpersonal reaction has declined so much that we're not having to have that conversation.
21:34You also reminded me of an analysis I did a couple of years back where I found that the activities that young people are spending significantly less time on today than in the past are A, all the ones that involved other people and B, all the ones that they considered the most meaningful. So parenting gives people an incredible sense of meaning. I've got an almost two-year-old at home at the moment, and that tells you what to wake up and do every day. It tells you who you are today. It tells you who you're going to be next year or in 20 years. And I do worry that there's this negative feedback loop here where we give people more reasons to feel insecure about themselves.
22:13They therefore don't feel secure enough to have a relationship, have kids, and that is depriving them of where a lot of that meaning and security would come from.
22:24Scott Galloway:We'll be right back after a quick break.
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23:12Scott Galloway:I speak about alcohol a lot. I enjoy alcohol. As I get older, I'm trying to moderate it. So let's be honest, my liver can't process it the way it used to when I was a younger man. But when I do go out and know I'm going to be drinking, I start the night with Z-Biotics. And I was doing this before they were an advertiser on the podcast. Go to zbiotics.com slash Galloway to learn more and get 15 % off your first order when you use Galloway at checkout. Z-Biotics is backed with a 100 % money-back guarantee. So if you're unsatisfied for any reason, they'll refund your money. No questions asked. Remember to head to zbiotics.com slash Galloway and use the code Galloway at checkout for 15 % off.
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26:11Scott Galloway:So you frame the Gen Z crypto risk-taking behavior not as irresponsibility, but as a rational response to being locked out of housing, a phenomenon called financial nihilism. The evidence suggests that reduced work effort, increased leisure spending, and investment in risky assets are all disproportionately common among young adults with little realistic prospect of buying a home. Walk us through that. Yeah, so this was a really interesting study initially where I saw this identified. And the term financial nihilism as well, I should credit to Dimitri Kofinas, who originally coined that a couple of years back.
26:47But the data here is super interesting. So if you look at detailed consumer spending data, which splits people by age, housing tenure, relationship status, all of that kind of stuff, what we see is that a lot of these sort of negative stereotypes of millennials and Gen Z about wasting money on crypto, on conspicuous consumption, on takeout, like expensive takeout every day, that kind of thing. That is happening much more among people who we can see have no realistic prospects of buying a house. For those who are on the brink of affording a house or they've managed to buy a house, they're doing that much less.
27:26So we've created this situation where people really can rationally look at their finances and the housing situation around them, and maybe the fact that they don't have a partner either, they're not worried about supporting a household with kids' mouths to feed, and they think, why don't I just roll the dice here, throw some money at it? And it is simultaneously, there's two things there, right? One is that they're saying, well, my only chance of succeeding in an economy that feels as stacked against me as it is, is to take high risk bets. And simultaneously, they're thinking there's no point in me being sensible with my finances, because I don't have one of these big long-term looming costs like a house or a family.
28:06So there's decent evidence that a lot of these stereotypes of waste and gambling really are downstream of that same mechanism.
28:15Scott Galloway:Yeah, I thought that maybe, I mean, I was at a music festival and I saw so many young people in the VIP section where the tickets were 2 ,500 bucks. And I asked someone, I said, you know how can you afford to be here and they said well we're not saving for a house you know it's they've given up like when i was that age the first thing i did out of graduate school is i started packing all my money away for for a house that was the next thing and they've just given up on that so they go to coachella and also i wonder if when when i came of into my prime income earning years it was the great financial recession and we let asset prices fall.
28:58Scott Galloway:We didn't bail out. We bailed out the banks, but we didn't bail out the economy. And so I got to buy Apple, Amazon, and Netflix at$8,$10, and$12 a share respectively. Now when asset prices fall, we decide we're going to bail out the incumbents, which is robbing opportunity from young people who want an opportunity for disruption to buy assets on the cheap as they're starting to make money. And so they feel as if, well, the game is rigged. You guys just keep using my credit card to prop up your assets artificially. that you already own. So I'm going to invent my own asset class. Do you think there's any truth to that, John?
29:32Yeah, that certainly rings true to me. And in the UK at the moment, we have this particularly unpleasant twist where millennials, people in their 30s today had an incredibly tough time trying to buy a house. Because again, they landed into that economy with high house prices. But then when they did manage to get on the housing ladder by like an apartment that was modestly priced, that class of housing is now lost value. So I think there are so many ways in which that generation has suffered from almost both sides of the same mechanisms. Like we made it hard for them to get on the housing ladder.
30:09Now that they're on the ladder, they're at risk of falling into negative equity. Yeah, I absolutely think that period around the 2010s, so many things changed so many things happened which absolutely meaningfully meant that the the deck has been stacked against people of that generation it's really striking the other thing i'd love to give
30:29Scott Galloway:a review on i was watching japan versus the netherlands last night in the world cup and other than the fact that the japanese team and fans stick around to clean the stadium which i think is the greatest brand building activity in the history of sport it just makes you think I really like Japan. But putting that aside, I could not get over, it felt like every ad, so maybe it was 50%, was an ad for gambling. I just, I thought, oh my God, it's everywhere. It's literally everywhere. Thoughts on gambling and what it's done or is doing to our youth? Am I panicking about this or is it the threat that I think it is?
31:21No, I mean, the data on this seems pretty solid, right? So there have been a bunch of studies in the U.S. showing that when different states legalized online gambling or online sports betting, it led to really significant negative impacts in terms of people, very low incomes, spending money either every penny they had or even more on these platforms. in the UK there's increasingly been regulation of what gambling adverts can be shown during our domestic soccer leagues so there's definitely a live discussion here but yeah I mean this is something that destroys lies left right and centre and what we've seen in the US since 2018-19 we're now seeing in large parts of the developing world so there are now African countries where gambling revenues are a significant proportion of GDP So, yeah, I absolutely think this has been a real scourge of many, many societies.
32:16And as you say, the fact that so much of just consuming sport as a young person now is just you're constantly being baited into this stuff. I think it's hugely problematic.
32:25Scott Galloway:Let's talk a little bit about the gender divide. You document a 30-point ideological gap between young men and women in both the U.S. and Germany, opening in just six years. Historically, generations move together politically because they share formative experiences. But that movement or congruence seems to have been broken. What do you think broke it? This is another one where I just think it's very difficult to explain this without social media having some role. So both in terms of the timings, we see this whether we're looking at the U.S., Germany, South Korea, the U.K. It happens pretty much everywhere starting in the 2010s.
33:05that is to say young women ending up significantly further to the left and right on average compared to young men and for me the easiest way to explain this is that to an increasing extent young men and young women exist in different parts of the internet different online worlds there's been really interesting analysis done to prove this out so when you look at what videos are shown to young men and women on TikTok in the US, for example, you do get these quite distinct clusters. There are certain clips that will be seen almost entirely by young women and certain clips seen almost entirely by young men.
33:43And among those clips, you often see either political content, and that doesn't need to be explicitly capital P political, but the kind of content that nudges you in a certain direction. You also occasionally get negative stereotypes about the other sex. So I think we're moving towards this place where people's political ideology, as has always been the case, is shaped in part by the information they consume. You have a large number of young men and women consuming very different types of information, different types of content. And that inevitably, I think, leads to what we see.
34:17Scott Galloway:It feels as if the genders have done a great job convincing themselves it's the other gender's fault. And there's a lot of misogyny online, really ugly misogyny. That's the bad news. The good news is that I think a lot of people correctly call it out and say, you know, I think of this UFC fight where that fucking idiot gets up there and says the first lady is a man and social media just weighs in and bats him correctly down. What I also see is a decent amount of misandry. And that is, if you look at, I would argue that the majority of podcasts where there's two female co-hosts, there's this underlying theme that men are irredeemable or incompetent, and that maybe they, the women, are cursed biologically to be attracted to them.
35:10Scott Galloway:But be clear, it's a curse needing men. And the difference is it doesn't get called out. Now, if you talk about just how depraved and predatory men are, and I've seen this trend on TikTok where women are coaching other women not to go on dates because it's just too dangerous. So the idea that men are these young men are these violent people looking to kill the women they go on dates with, the data just doesn't support that. You have to choose your words so carefully because if you in any way say these fears are exaggerated, you yourself, the mob comes for you. You're protecting these men or what have you.
36:02Scott Galloway:But I want to ask you to validate it or nullify that thesis. But any thoughts on this notion that what isn't helping the connection is misogyny and misandry? But I would argue in most cases, the misogyny is more readily identified than the misandry. Yeah, I think that's clearly true. And you see this around the conversation around the gender divide in general, which is that in most countries, what we've seen actually is young men have not become any more conservative over the last couple of decades. What's changed is young women have moved very, very significantly to the left. And yet the conversation about the gender divide, typically there's a premise that what's happened is young men moving to the right.
36:45That they become Neanderthals. Exactly, exactly. And again, the thing I find striking in the context of our discussion about birth rates and relationships is that the data show that men, well, fathers, are doing a larger share of domestic work and childcare than ever before. Now again, we're not at 50 % yet, and that may never happen, But the average man is actually, by any measure we have, a better partner or potential partner than we've ever seen in the data. But as you say, there are still genuine extreme cases which social media amplifies, which means that there is always evidence that someone can point to legitimately as an example of men being terrible.
37:31So I completely share your frustration that both with the narratives overall and the fact that it's so tricky to talk about this in a way that doesn't lead one to get attacked for suggesting that there is sort of exaggeration going on.
37:48Scott Galloway:Unfortunately, some of the most famous and wealthiest men in the world have not been exactly brand ambassadors for men as a whole. But I do think young men get painted with a really ugly brush. And it's sort of in vogue or fair game to portray men as just awful. And whereas when you do that, and there's a lot of that online, it gets called out. In terms of this gender divide, and by the way, I just think I always like to take one big insight away. It's really what you just said. I felt it, but I didn't know it the way you articulated it. And that is men haven't moved to the right. Women have moved more progressive.
38:33Scott Galloway:And that is there's still there's the majority of young men still believe in bodily autonomy. They believe in women's rights. Women have moved much more progressive, which is neither. And you can't fault them for it. people have their own agency and get to decide. But the movement and the divide has been a function of women going further left, not men going further right. Do you see any differences in this delta between the UK and the US? I think it looks relatively similar. So some of this is a function of political systems and which sort of parties are available for people to support on the left and right.
39:08So in the UK, we now have this fragmented system where you see women more likely to vote for the sort of radically progressive Green Party and young men more likely to vote for the radical right reform party. But we do, by and large, see a pretty similar pattern on both sides of the Atlantic. And that, for me, suggests that this is a broader sort of shift that's happening. I'd also emphasize that the sort of English-speaking world has its own corner of social media in a way that was much less true before we had social media. So 15 years ago, young men and women in the US would have been consuming very different media to young men and women in the UK.
39:48Today, there's a huge amount of overlap. We saw that with how the Black Lives Matter movement rapidly spread from the US to the UK, Ireland, Australia, New Zealand, Canada, and less so to other countries. But yeah, I think we absolutely see it in some of the other shifts we're talking about here. Something sort of takes hold in the US or maybe the UK and goes across the ocean. And we suddenly see similar patterns working their way through very different groups of people in different places.
40:21Scott Galloway:We'll be right back.
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41:59Scott Galloway:All eight episodes now streaming only on Disney+.
42:06Scott Galloway:We're back with more from John Byrne Murdoch. I want to talk about AI and work. In your work, you suggest that the AI job loss narrative may have been misattributed. The junior hiring pullback started when remote work took off in 2020, well before ChatGPT. In Gen Z, counterintuitively, are the generation most opposed to fully remote work. What is the right policy implication? More in-person mandates or something else? This one, again, I think is super interesting and relatively poorly understood. So a huge amount of time and effort has been put into looking at whether AI is impacting the labor market situation for young people.
42:48But much less work has been devoted to this massive shift over the last six years in terms of the rise of remote work. when you think about it that it transforms the relationship between worker and employer it transforms the hiring process it transforms how the nature of day-to-day work itself and very little analysis and study has been done on this and now we're starting to see a couple studies done and they do seem to suggest that it is more likely that remote working especially fully remote jobs have been a big part of the decline in hiring the disproportionate decline in hiring of young people.
43:27Now, again, the fairly consistent conclusion here is not that that means everyone should go back to doing five days a week. There's really solid evidence that hybrid working has been pretty good for everyone involved, for the bosses, for the juniors, for everyone. But the less time people are spending in the office, the more that work becomes this digital task or set of digital tasks, which, you know, if they can be done by someone hundreds of miles away, then maybe they could be done by agentic AI. So you get this overlap between moving someone far away, moving away from face to face to interacting through a screen.
44:05That happens at the same time as AI comes up. And suddenly it becomes almost second nature to think, well, you know, do we really need that many people who are just going to be pinging me documents over Slack? So I think there's certainly something there. But the way to solve this is probably to go back to more firms where you have three or four days in the office rather than saying five, which is where you then go over the peak and start getting into other problems.
44:34Scott Galloway:The productivity research or AI productivity research is especially noisy right now. You have wildly conflicting headlines, studies with different methodologies, people with enormous financial incentives. How do you as a data-driven storyteller cut through that? Like, how do you discern signal from noise? I mean, it's tricky. It's about trying to find the best data with the highest sort of signal-to-noise ratio for every time we ask this question. So a few months ago, the best data we had was the amount of activity that software engineers were performing, those using agentic AI versus those that weren't.
45:14And that gave us a sense that, well, this does seem to be boosting productivity. People are shipping more code. But a few months later, we're now able to look at that full pipeline, as it were, from lines of code written, pieces of software released, to how much those new pieces of AI-assisted software are actually getting used. And it turns out that when you follow that pipeline to its end, where you really are capturing value, there's been very little uplift at all so it's it's constantly challenging and i see this in my own work as well like i'm a fairly heavy user of the agentic ii tools and i definitely feel more productive i'm between me and and claude or codex we're producing loads of stuff but at the end of the week i look back and i think well i still did two articles um and there are so many jobs i think where that is true, where activity, sort of low-level activity does not always translate or frequently doesn't translate into high value that your, in my case, readers or in someone else's case, customers, clients will consume.
46:19So yeah, I think the question of how much real additional value is being generated by AI is going to continue to be this quite elusive beast. and we will have much better answers even in a couple of years than we do today.
46:34Scott Galloway:Something that's super interesting and your research has highlighted is that while social media creates polarization, AI chatbots actually create deep polarization, moderation, and that every major model nudges users towards more moderate, expert-aligned views, even accounting for sycophancy. Can you say more about this? Yeah, so I find this stuff, I think this is a really important question to ask is any new media form comes in and spreads across society. So certain types of media tend to bring people towards the middle. And this has been true across histories. Other ones sort of elevate fringe voices.
47:17So if you think about things like books or newspapers back when the printing press first came around, you were essentially because of the capital costs of starting up a newspaper publication or a book publisher you are by default favoring like establishment mainstream voices and that's not to make a value judgment about whether that's good or bad but that's part of the impact that that had similarly when television first came out you had a small number of channels again because of the costs involved and because of regulation so they tended to elevate mainstream voices at least at first. What we then had with social media is something that is fundamentally polarizing.
47:56It breaks through that establishment layer because anyone, anywhere can post to social media. It therefore elevates those fringe views. It amplifies negativity far more so than many other media forms did in the past. AI is this really interesting case where we seem to be going back to a moderating, establishment-favoring media, where this seems to be happening for a few different reasons. So one is that the information that these models are trained on, a huge amount of that has come from mainstream trusted sources. Additionally, you have the fact that the business model for AI tools is quite different to social media.
48:38So social media, like most of the digital media innovations of the last 15 years ended up being predominantly ad-funded. So it was all about attention. It was all about eyeballs. And therefore, you're incentivized to say sensationalist things, shocking things. AI, the winning business model seems to be making it very useful for people in the business world. That means the inner workings of this technology reward being correct. There's not much point having an AI tool which tells you what you want to hear if that's going to mean it tells you the wrong thing. You put the wrong thing in your report.
49:15You give your investors the wrong information. So all of these subtleties about how the technology differs mean that when you ask or when you talk to these AI tools and different models about issues of politics and ideology, and I don't necessarily mean explicitly asking them these questions, but as these issues come up from time to time in different conversations, they tend to give you fairly mainstream, straight down the middle, moderate answers. And therefore, to the extent that these conversations do end up shaping how people think about the world, they will hopefully, and the evidence suggests, they will bring people back away from those fringe extreme views and towards a more factual view of the world.
49:57Your charts have almost become as recognizable as
50:01Scott Galloway:your byline. People share them without the article. The key to success is great storytelling, or I would argue that's a core confidence. And you seem to tell great stories through your charts. What's your selection process for which chart you're going to sort of lead with? Honestly, I'm always trying to think why would this be interesting to someone and how many people would find this interesting. So I will, as I'm doing my analysis, I'll be generating like, I don't know, 20 charts per piece of work that I'm working on just as I go through that process. And then with each of those charts, I'm thinking, well, is this interesting?
50:36is this only interesting to me or could this be interesting to more people? Is this telling people something they already know or telling them something new? And if it is telling someone something they already knew, that's not necessarily a bad thing if it's really crystallizing this vague idea they had. But yeah, all sorts of trade-offs and decisions around that, but fundamentally based on this idea of thinking, how can I make this speak to as many people as possible?
51:03Scott Galloway:You've been covering these generational trends for years. and the through line, quite frankly, feels pretty bleak. And I would argue, and I won't say this about you, I'll say it about me, the temptation to catastrophize and be bleak is really seductive for quote-unquote thought leaders or academics because quite frankly, it just makes for a more interesting talk. Sort of, if you were just to have fidelity to history, our talks would be, you know what? Today, everything just got a wee bit better. And that's just not that interesting. It's much more interesting to talk about, and I'm not suggesting these issues aren't real, but I find myself, one, I'm naturally a depressed and angry person, so it's easy for me to catastrophize, but there's economic incentive in it.
51:48Scott Galloway:And that is, you just sound more interesting to talk about the problems. You've been talking about the general trend lines in, you know, mostly about youth, isolation, cognitive decline, economic dislocation, falling birth rates. Do you think it's getting worse? Or do you think that there are signs, I won't say hope because everyone will bust into their thing. Well, I'm an optimist. But do you think things really, where do you think we are in the curve of youth well-being? I honestly think we're probably past the bottom. I think that partly for the reasons we said about how AI could potentially shape the sort of social discourse and that kind of thing in a healthier way or at least a less unhealthy way than social media.
52:36I've also written about how there's early suggestive evidence that people's screen time and social media time may be falling, which I think would be very beneficial if people then start using that time to interact face-to-face. I think on housing, you know, it's always possible for things to get even worse. But I do think we're now having a conversation where there's an appreciation that this is something we really need to address and fix. and there are governments and policymakers in all sorts of different parts of the world starting to increasingly take this seriously. Yeah, I'm optimistic about that.
53:10I guess the pessimistic side that I'm competing against there is if AI does turn out to have this sustained negative impact on young people's employment, that would be a material negative shift that it would be very hard for all of these more subtle sociocultural shifts to wave away. But yeah, look, I try, I completely agree with you. The incentives here are to tell sort of surprising negative stories, but I do try to remain fully aware of that and look for the positive and more optimistic stories where they exist.
53:46Scott Galloway:I'm sure you get this question a lot, and it's one I get, and it's the following regarding the UK. What's wrong here? So many of the pillars of a stronger growth economy, great education, great culture, global influence. It's not a uniquely European thing. Sweden is growing. Productivity in the Netherlands is up. The UK is a real laggard. If you were to attempt to identify what ails the UK, what is wrong here? How do you answer that? Look, again, there's going to be so many answers to a question like this, but certainly two big ones that I would point to immediately are, one is the sort of planning and permitting system here, which really makes countries like the US, where that's also a conversation, look like rookies.
54:41You know, the restrictions on house building in the UK are extraordinary. There are huge areas of land around London, around Manchester, around Birmingham, our major cities, where you are simply not allowed to build, called the Green Belt. We apply similar restrictions or similarly severe restrictions to building infrastructure. We have some of the highest infrastructure costs in the world and the longest delays in the world affecting transport, affecting energy. That gives us some of the highest energy prices in the developed world. All of these make it harder for people, companies, you name it, to locate in the UK or in the most productive parts of the UK.
55:21The second factor, I would say, is an over-centralization of how things are done in the country. So one of the things I think the US does pretty well is state and local governments can raise their own taxes. That gives them strong incentives to build, to innovate, to try and run things better than the neighboring state. In the UK, we, by and large, don't have that. Overwhelmingly, things, even at the local level, are effectively run by the central government. that discourages one city to try to do things differently from another. Most of the tax-raising mechanisms, again, happen in a similar way.
55:56So local governments in the UK are similarly not incentivized to build housing to raise revenue in the way they are in the US. So I think permitting and centralization are probably the biggest two I would point to.
56:07Scott Galloway:I struggle with, and I want to get your thoughts on this, I struggle on whether SpaceX is a good or a bad thing. And the answer is probably yes. The wealth creation, the innovation, the economic growth, the inspiration is just inspiring. At the same time, I feel a lot of it is manufactured scarcity, the archetype of heroism resulting in what feels like could be a pretty big transfer of wealth from retail investors to an even smaller group of people, thereby increasing income inequality and an economy that seems to be more about finding a way to do ultimately a bag drop. I'm curious to just get your views on the, if you will, SpaceX and the first trillionaire, the goods, you know, the positives and the negatives of that.
57:07I will just say as a Brit here, it's interesting that at least for a large number of Americans, they are invested in the stock market. So if SpaceX is a huge success, they're going to share to that, sharing that to an extent. Whereas in the UK, that is much less true. So if Elon Musk and SpaceX make a huge amount of money, that is going to be much less shared via the stock market for people in the UK and Europe. But yeah, it's a really tricky one. The rhetorical impact of the existence of a trillionaire is obviously enormous. And I can understand why there has been such a reaction to that number and that event as crossing that line.
57:46but at the same time my general view on things like inequality and wealth is that if people do share in the proceeds I don't think it should matter that a small number of individuals hold a large amount of that wealth. Now I don't think the concentration that the amount held by that small number should keep going up but my general view is that if innovation wealth and the incentives of creating innovation wealth lead everyone to get richer, then I'm broadly agnostic about that. And I would say there's decent evidence that living standards for those in the bottom 10 % of the US have also been doing reasonably well over the relatively recent years, certainly better than the bottom 10 % of the UK.
58:34So yeah, I understand why the existence of the first trillionaire, causes so much anger and sense of injustice. But my hope would be that regulation redistribution ensures that as broad a section of society as possible can still benefit from this.
58:53Scott Galloway:John Byrne Murdoch is a columnist and the chief data reporter for the Financial Times. John, I love this conversation. Thanks for your time today. Thank you so much for having me.
59:11Scott Galloway:This episode was produced by Jennifer Sanchez and Laura Janair. Cami Reek is our social producer. Bianca Rosario Ramirez is our video editor. And Drew Burrows is our technical director. Thank you for listening to the PropG pod from PropG Media.
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From the publisher
Scott Galloway speaks with Financial Times columnist and chief data reporter John Burn-Murdoch to unpack the forces reshaping modern life. They discuss why birth rates are collapsing, why fewer young people are forming relationships, and how housing costs, social media, and remote work are changing the path to adulthood.
They also explore financial nihilism, the growing divide between young men and women, the impact of AI on work, and what it will take to rebuild connection, purpose, and opportunity for the next generation.
Follow John, @jburnmurdoch.
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