The economic pessimism of the 'K-shaped economy' thesis is wrong; the real story is the 'G-shaped economy' of retiring baby boomers who hold $100 trillion in net worth, keep spending and consuming, and whose retirement is being solved by technology.

34:59going. They're going to get older and they were going to start to retiring. And I figured that that could create a a skills mismatch in the labor market. It create shortages in the labor market. And I figured, well, technology solves problems. The problem is the baby boomers, huge a huge cohort is going to retire. And what are we going to do without them? And the answer is

35:21technology comes to the rescue. We have to augment the uh skills of younger workers with technology and that's exactly what's happening. So you know people have been talking about the Kshaped economy. I I have I'm I am a little bit of a contrarian when I hear that everybody has bought into it. I said what's the matter with that thesis? And the Kshaped economy is that the rich

35:43are getting richer and the poor are getting poorer and it's not sustainable. >> The first part is true. >> The rich are getting Yeah. >> Yeah. It is. and a lot and a lot of the poor that were poor are are also doing well but or doing better. But look, I'm not saying there isn't >> is that why we have all these communists running around? >> Well, this is no bottom.

36:01>> They uh they they just want to get everything for free, right? >> Um but uh the point I want to make is I'm not denying that there are people that are struggling out there. I'm just saying that the K economy doesn't isn't an explanation. It's it's a pessimistic theory that it's not sustainable and therefore we have to get into recession. There's even a kakami notion that 5% of

36:24the population, the rich are accounting for 50 to 60% of consumption. Really? I mean, have you been to a Costco recently? Have you been to a mall? Have you been to a restaurant? Uh, the rich don't eat more than the rest of us. They don't Let me get right down to the point here. And the G-shaped economy, which stands for generational, is the baby boomers. the baby boomers and the silent

36:45generation which are actually older than the baby boomers. They're still some still kicking around. They have a hundred trillion dollars of net worth. It is the richest retiring generation ever and everybody's ignoring it. >> That's a good thing. >> It's a great thing. >> They're in comfort. They're not starving. >> Well, think about it. Interest rates go up, they love it because they own they own 60% of money market funds, so they

37:10love it. the unemployment goes up or down, they're on a they're on a cruise, right? They're on a cruise. Mortgage rates, they locked them in at 3% or they paid off their mortgage. So, what are they doing? They're helping their younger kids. The younger kids are the ones that have the affordability problem. And and I see just so much intergenerational even personally, uh I'm helping my kids out and you have to

37:33when when I graduated from when I came out of graduate school, I didn't even think about asking my parents to move in. Uh I mean you know back then things were really affordable. >> But this is the pro this is the problem. Not everyone's parents can help them. >> Not everybody can correct. So you have a lot of stuff going on in social media where a person who's 27 years old will