Trump Accounts, the Collapse of Local News, and Conversations with Your Parents

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2:47or post your question on the Scott Galloway subreddit, and we just might feature it in our next episode. Plus, you can now call or text us a question at 201-472-3656. That's 201-472-3656. Let's bust right into it. Our first question comes from Reddit user thegchockice. Hey, Scott, you're a big proponent of the Trump accounts idea, minus the name, even as a replacement to Social Security. This seems to be a deeply flawed idea to me, as essentially you are taking money mostly from the working class via taxes and putting it into the stock market, which is overwhelmingly 93%, owned by the top 10 % of wealthiest Americans.

3:25I don't see how this doesn't simply wind up as another scheme to enrich the top 10%. Interested to hear your defense. Okay, so let's just look at some data here. Trump accounts give every child born between 2025 and 2028 a$1 ,000 government deposit with families able to contribute up to$5 ,000 a year invested in stock index funds. So what's the math problem with Trump accounts? $1 ,000 at 8 % annual return with zero additional contributions is$4 ,000 at age 18. That's less than a year of community college tuition. The millionaire kid projections require maxing out at$5 ,000 a year for 18 years.

3:58That's$90 ,000 in contributions from families who statistically, you know, many of them can't afford it. A wealthy family can build$150 ,000 nest egg by the time their child is 30. A low-income child ends up with around$2 ,500. Who's paying for this? The$1 ,000 in seed money is indeed taxpayer money. But the total pilot cost is estimated to be around$15 billion by 2034, which really is almost a rounding error in the budget. The bigger subsidy is the tax deferral on gains, which, similar to a 401k or 529 account, is worth more than, you know, is worth more than higher tax bracket because it's growing tax deferred.

4:33Scott Galloway:So, again, more, to your point, benefits flow upward. In December 2025, Michael and Susan Dell announced that they would be donating$6.25 billion to the program. I think Ray Dalio did something similar. Okay, so you're saying that if there's an additional surge of purchases in the stock market, that that'll take the stock market up and the primary beneficiaries of the top 10 % who own 90 % of stocks. Okay, no doubt about it. But if you were to, say, give people money to buy housing, then housing stock would increase in value. And it's mostly rich people that own homes. So, yeah, you're right. But I do think there is value to letting, trying to get everyone to participate in the demographics and productivity that typically take over the medium and long term, the markets up and to the right.

5:16Scott Galloway:And I think we need more people invested in the success of our economy, especially some of these high flyers. So I like the idea. I would have gone much bigger and been more paternal. What do I mean by that? If you give every kid$7 ,000, which would cost, every kid born$7 ,000, which would cost, say, $100 billion. I thought it was$40 billion, but I guess doing their math, it'd be close to$100 billion by the time. And then I wouldn't let them touch it until they were 65, and they'd have a million bucks when they retire. And then in 30 years, I would announce we're doing away with Social Security, and the budget deficit's going to go way down, and interest rates would start to come down, and the cost of servicing our debt would more than pay for this.

5:55Scott Galloway:In other words, the thing that's going to gut this economy is the fact that we're now spending 40 % of our federal budget on programs for seniors, you know, Medicare and Social Security and all these. Basically, old people vote and the dean of democracy is working too well, and we keep transferring money from young people who are more productive to old people who are less productive. So how do we do away with the transfer and the cost of transferring money from an anxious, obese, and depressed generation to the wealthiest generation in the history of the planet, and that is baby boomers? And I think savings accounts,$7 ,000 every baby born, can't touch it until you're 65, low-cost index funds.

6:36Scott Galloway:And then, again, you might be able to do away with what is the second largest line item in the federal budget, and then Social Security. So I like this idea. I would supersize it. I don't think it's about 18. I think it's about until they're 65. This does feel a little scammy or Trumpy. You know, it's while I'm president, calling it Trump bombs. Jesus Christ, really. But I do like the idea, what is it called? The super returns fund in Australia. They do something similar. But I like the idea of giving every household participation in the equity markets, which in America have been, you know, probably the most powerful economic force in the West.

7:16and the fact that few households own stocks,

7:19Scott Galloway:the majority own debt. I like the idea of making every kid a participant in the markets. I would just go bigger and force them to hold onto it longer and then use it as a, basically a social construct for long-term planning. We don't think long-term. And I like the idea of saying, you know, time goes fast. And in 10 or 20 years, you'll be able to say, well, actually in 30 or 40 years, we're going to do a way of social security because these kids have this upcoming generation has got enough retirement to help. I like that idea. I think that's giving everyone a chance to participate in the upside of the markets.

7:56Scott Galloway:So what are some of the structural problems with the currently envisioned Trump accounts? Only 28 % of households earning under$50 ,000 on any stock at all. You can already open a 529. I put$5 ,000 in a 529 when my oldest was born. Now, since then, I've made a lot of money, and so I didn't feel the need to keep contributing. But that fund, I just looked at it because my son's going to college in the fall. It's worth$85 ,000 now. Now, granted, the last 17 years have been an unprecedented bull market. But still, I think it was 10? 10 to 85 is pretty staggering, right? So according to the Tax Foundation, the tax benefits are actually less generous than existing 529s and Roth IRAs.

8:42So I would look at those. Even the Tax Foundation, which supports the concept, says Trump accounts do not offer much of additional incentive to save. A prior U.S. pilot called SEED in Oklahoma gave families$1 ,000 plus matching incentives, but only 62 % of eligible families opened accounts. Actually, I would argue two-thirds of the lot. And the most disadvantaged were less likely to opt in. When families were auto-enrolled, there was near universal participation. Trump accounts are opt-in. So again, I just like the idea. You're born. Congratulations. Here's your Social Security number. here's your birth certificate and here's an account number where you can track your seven, eight,$10 ,000 and you don't have access to it until you're 65.

9:21That's what I would do. I think that, I think participation in the markets, compounding the most powerful force in the universe and a long-term fix and solution that addresses the structural issue around old people boating themselves more money and stopping this transfer of wealth.

9:37Scott Galloway:I think it makes sense. So I I like this. I would supersize it and I would use it as a means of long-term planning to replace the entitlements that are bankrupting our country. Thanks for the question. Question number two is from Sector Z on Reddit. Hey, Scott, I've averaged 30 extra days work per year and overtime for four years. With that, I'm not even clearing 60 ,000 per year in a very high cost of living area. Bottom line, I'm exhausted and burned out. To put it into a question, where do you see journalists such as myself slotting into society as the collapse of local news continues. Is this an upscale situation and don't look back or should I take my skills someplace else?

10:13Scott Galloway:Thanks. Okay. So roughly, I assume it sounds like you're a local journalist, roughly 130 local news organizations closed in 2024. And this year it'll be 136 or it was 136 last year, more than two per week. And bottom line is local newspapers, if that's who work are going away. More than 2 ,500 have closed since 2005 and over half of U.S. counties lack a local news source. But we've lost about a quarter of a million jobs at newspapers. In 39 states, there are fewer than 1 ,000 journalists remaining. So look, I think these skills are highly transferable, whether it's writing customer service manuals or comms departments or putting out press releases or trying to create a sub stack.

11:02Scott Galloway:if you are really good at a certain niche and charge people a nominal fee. I think that the skills for journalism, investigative reporting, corroborating evidence, writing well, I think those skills are highly transferable to different jobs. The thing you didn't mention is where you live. Is there a lifestyle arbitrage? And that is$60 ,000 a year doesn't work in Boston, but it might work in El Paso. And is your job portable? and do you have, anyone who has geographic flexibility, and a lot of people don't, should really think hard about a geographic arbitrage. And that is, San Francisco and New York are worth it if you have the money.

11:44Scott Galloway:And that is, it's like saying, yeah, Ferrari is worth it, but only if you have the money. And so I heard from a couple that they're retired, they make about$140 ,000 a year in retirement income, and the mom still works as a nurse part-time. they live in San Jose and they were complaining about the cost of living. I'm like, move to Costa Rica. You don't, you have grandkids, but you can see them. And there's just no reason for you to be in San Jose. You're not working any longer and it's super expensive there. So one, a geographic arbitrage. Two, find there is, there are a lot of positions that need really good riders.

12:24We're always looking for good riders at Prop G. I find that that skill has not been disrupted by AI. And I would just, what I would say is think about your core skill around communications and the written word and what other professions might you be able to do remotely, make some good money or decent money, and then a geographic arbitrage. But keep in mind, while journalism might be dying, storytelling and also emerging journalistic

12:54Scott Galloway:outlets, whether it's Semaphore or Axios or Daily Beast or, I mean, there's a ton of these things, right? Individuals doing their own sub stacks. You know, there's different ways to kind of skin a cat here. And I do think those skills are pretty transferable. So in some, I would create a kitchen cabinet of people, describe your skills, say what other types of jobs could or ways to make money could I apply the skills I've developed as a journalist and to think about a geographic arbitrage because I was just in Chicago Chicago is expensive but I described as the old navy of cities and then it's 80 percent of New York 50 percent of the price and the audience booed and I said look it's a pretty powerful value proposition you can have a good life here so anyway I'm being redundant here but I think your skills are more transferable than you think.

13:40And I just think you should think about moving to a lower cost area. Appreciate the question. We'll be right back after a quick break.

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17:17Welcome back. Question number three is from Standing Jim. Hi, Scott. I love the podcast and appreciate your wisdom. I have a sabbatical from work this summer, and we'll be spending one week of it on a trip to Scotland with my dad. I'm one of three sons and it's rare for us to get solo time together these days. I'm hoping to have some deep conversations with my dad. It's realistically one of the last times my dad and I will have this much time together by ourselves without my mom, wife and other family members. Do you have any advice on topics, advice I should make sure to touch on? My wife and I will be starting to try and have a child soon so potentially becoming a parent soon is top of mind.

17:50It's funny, I did the same thing with my dad. I took him when he was, It was when my sister was pregnant. So it was about 17 years. We went about 17 years ago to Scotland, I guess when he was about 78, thinking that was kind of the last time he was gonna be able to travel, take a moment to see his family where he was born. Look, I would say, I think what you're doing is great. But questions to ask or conversations to have, I think that what I found is that, I think it's really interesting as you get older, you realize, you know, you come to this horrific realization that your parents are not perfect people.

18:27Scott Galloway:You know, I would ask, because my dad aged, I would ask a lot about, my dad had been married and divorced four times. I would say, you know, I ask pretty pointed questions like, you know, why did you leave mom? Or what went wrong? Like four wives? Like, come on, boss. Like what went wrong? Like what's wrong with you? What was wrong with them? What happened? You know, what was your childhood like? His sister had told me that he was abused by his father. He never brought it up. And I brought it up. I said, you know, Amprentis said that you were physically abused by your father. And, you know, was that true?

19:01And, you know, why did you

19:03Scott Galloway:leave Scotland at 19? What was that like? And I just asked a lot about him. Very candid. I wasn't aggressive. But, you know, when did you, my dad basically left and I saw him two or three times a year. And I'll ask him, I'm like, do you think that was the right decision? Do you regret that? What, you know, what are your thoughts now? And what, you know, when were you happiest? My father was never that into me or my sister. He just doesn't, I don't know. There's something broken there with my father. He never really attached to people. But just asking him about growing up in Scotland, what his life was like, when was he happiest, when was he saddest.

19:43Scott Galloway:You know, looking back, is there advice he would have given to his 25-year-old self? like what to do more of, what to do less of. And I just asked him to tell stories about his youth and being a young man. You know, I found out that he came home and his first wife had tried to kill herself and had a note around her neck and just all this shit that helped kind of explain him more to me. He was in the Royal Navy at the age of 18 and he had his first two months of wages stolen from on the ship and started sending money home. And then when he got home and was hoping to have saved enough money to come to America, I found out his mom had spent all his money on whiskey and cigarettes, which kind of, quite frankly, explained why he was so devastatingly cheap.

20:26It was like traumatizing how he would. I remember when I went on vacation with my dad once on some gold circle ITT, you know, and my dad was a salesman trip. And he didn't talk to me for two days and I couldn't figure out why he wasn't speaking to me. And I asked his third wife, Linda, why is dad not talking to me? He's like, well, we went to Baskin-Robbins and you ordered a shake, which was$2.50. You didn't ask him. And I was the kind of person my dad was. He was just so scarred from money. But hearing those stories helped me understand him a little bit better. So I would just sit down and ask a bunch of questions and, you know, kind of see where it goes and ask for advice.

21:01You know, my guess is your relationship's a bit better. I'm about to have a kid. What were you thinking when you had a kid? What advice do you have for me? What did you get right? What did you get wrong? But I think those conversations are pretty organic. And Scotland is a great backdrop. I rented a car and we went through the trostics and stayed at different inns every night. But again, this stuff will happen naturally. It's just a function of time and being outdoors. What a wonderful gift for your father and for you. And the only thing I would add, take a ton of pictures.

21:27Scott Galloway:It's a pain, especially men don't like to pull out a camera. Take a ton of pictures. Every day, take a lot of pictures with your dad and their surroundings. Because it seems like the time between when my dad was 78 and healthy and astute and 95 and in hospice went really, really fast. So really enjoy the moment. It's great you're doing this. And again, just leave nothing unsaid. Try and be generous and emotive around the good things you remember about your dad. Thank him. I don't regret it. I did say those things to my dad. Not as much to my mom. Anyway, it's a different relationship. But I'm so fucking wordy this morning.

22:11Scott Galloway:where's my Adderall where's my Adderall anyways have a great time with your dad that's all for this episode if you'd like to submit a question please email a voice recording to officehours at prof2media.com again that's officehours at prof2media.com or if you prefer to ask on reddit just post your question on the Scott Galloway subreddit and we just might feature it in an upcoming episode this episode was produced by Jennifer Sanchez and Laura Janair Kami Rika is our social producer. Brad Williams is our editor. And Drew Burrows is our technical director. Thank you for listening to the PropG pod from PropG Media.