Episode #481: Private Equity in Accounting — Michael Breit, CEO, EisnerAmper

Join Ed and Ron for our interview with EisnerAmper’s Chairman and CEO, Michael Breit, for a discussion of private equity in accounting, including how EisnerAmper’s changed its governance structure. We'll also discuss the advantages and disadvantages of these alternative structures, and how private equity will impact the future of firms.

About Michael Breit

Michael Breit is Chairman and CEO of EisnerAmper LLP (attest firm), and a Partner at Eisner Advisory Group LLC. With more than 35 years of public accounting experience he has held leadership positions throughout his career at EisnerAmper, including Vice Chair –Strategic Relationships, Regional Managing Partner, Partner-in-Charge of the New York office, and Audit and Assurance leader. Prior to joining EisnerAmper, Michael was a Partner at a Big 4 accounting firm. Michael has extensive Securities and Exchange Commission experience and has been involved in the initial public offerings of several premier broadcasters and cable TV operators. He has participated in numerous due diligence efforts relating to the formation of programming ventures and acquisition of sports franchises. Michael has also led cable TV defalcation investigations, serving as an expert witness in several arbitration and litigation matters. In addition, he possesses significant retail experience. Over the years, Michael has led or participated in numerous leadership programs including an Executive development and leadership training program at the Harvard Business School. Michael served a two-year residency in the national office of a Big 4 accounting firm where he monitored the profession’s standards setting bodies and followed a wide range of accounting and reporting issues. Michael is a frequent guest speaker on sports and entertainment issues on national and regional radio and television programs.

Use these AI generated show notes to follow along with the audio:
(Our social media guy was on PTO — he asked us and filed the request in triplicate)

Accounting and Private Equity Conversation

The meeting involved a conversation between Ed, Michael, and Ron, focusing on private equity and accounting. Michael, who is the chairman and CEO of EisnerAmper and a partner at Eisner Advisory Group, shared his professional journey and experiences in the accounting industry. The participants also addressed technical issues such as microphone settings and adjustments to audio inputs. Towards the end, the discussion shifted to the topic of private equity and accounting.

Private Equity Investment in Accounting Firms

Ron and Michael discussed the attractiveness of accounting firms for private equity investment, with Michael highlighting the steady cash flow, low risk, and year-round revenue. They also explored Michael's firm's deal with a private equity firm, Eisner Amper, which was structured through an alternative practice structure to navigate independence concerns. Michael shared the advantages of this partnership, such as increased technology investment and access to capital and know-how. He also noted the recruitment benefits, as the deal offered a new narrative for potential hires. Looking ahead, Michael mentioned the potential for a future monetization event, but was uncertain about the specifics of the exit strategy.

Technology and Independence in Auditing

Michael, Chairman and CEO of Eisner Amper, LLP, discussed the company's plans to leverage technology for innovation, particularly in auditing. He mentioned the development of a new audit methodology called the Dynamic Audit Solution Ordaz, which incorporates AI components and aims to move away from a traditional checklist mentality. Michael also mentioned the implementation of a new ERP system, SAP, and the company's commitment to continuous auditing. He addressed concerns about maintaining independence in the auditing process, emphasizing the company's strict guidelines to ensure independence and independence in appearance. Additionally, he discussed the company's growth and the benefits it brings to their clients, such as greater resources, technology advancements, and a wider range of services.

Accounting Talent Attraction Strategies

Ed and Michael discussed the challenges faced by the accounting profession in attracting new talent. Michael suggested that adjusting the 150-hour credit rule and increasing starting salaries could help attract more students. They also discussed the potential of allowing for career changes into the accounting profession, especially for those without an accounting degree. Michael emphasized the importance of addressing concerns about compensation to retain talent. The conversation concluded with a discussion about the potential benefits of private equity involvement in the accounting sector, with Michael highlighting the importance of maintaining a strong firm culture.

Private Equity, AI, and Accounting Standards

Ron and Michael discussed the influence of private equity on accounting firms, including an increase in billing and realization rates. Michael explained that private equity raises the bar for firms to perform at their highest level and expects results, but also provides support and guidance. They also touched on the use of AI in auditing, with Michael mentioning that their CIO is leading a significant AI initiative. The topic of employee stock ownership plans (ESOPs) came up, with Michael revealing that it was not considered by Eisner but recognized as a beneficial strategy by other firms. They also discussed the state of the auditing profession, with Michael emphasizing the importance of maintaining a high standard of excellence. Lastly, Michael shared his advice for young individuals considering a career in accounting, highlighting the diverse nature of the profession and the opportunities for advancement.

Sports, Business, and Family: A Lively Discussion

The conversation primarily revolved around sports, with a particular focus on the Islanders. Ed and Michael discussed Michael's 2018 blog post about the future of sports, which included predictions about UFC's potential growth. They also shared personal anecdotes about family members involved in sports. The discussion then shifted to the business of sports, with topics such as esports, sports gambling, streaming, virtual reality, and the potential impact of the Covid-19 pandemic. They also explored the possibility of individual team subscriptions and the future of 360-degree cameras in stadiums. The conversation concluded with a light-hearted debate on the designated hitter rule in baseball.

Upcoming Show, Accounting Conferences, and Political Speculation

Ed, Ron, and Michael discussed their upcoming show and possible guests, including a suggestion to use 360-degree cameras for recording sports games for VR viewing. They also shared plans to attend accounting conferences and engaged in a wide-ranging conversation about politics and the upcoming election. They speculated about potential vice presidential candidates, expressed concerns about the extremism of the candidates emerging from the primary system, and discussed the potential of Aaron Rodgers and Rand Paul being considered for the position. The conversation concluded with concerns about RFK's views on the role of government in business.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #480: Leveraging Logic, Unleashing Magic — The Art of Subscription

In an engaging email exchange between Ron and Reilly Newman, a Brand Scientist, Reilly shares his insights and challenges while reading the book "Time's Up!" He is particularly interested in applying the subscription business model to his brand creation business but faces difficulties in transitioning from a consultancy approach to a subscription-based service. Through their conversation, they explore creative solutions and strategies, including the idea of offering a "brand transformation program" and incorporating ongoing value into subscription packages. Join Ed and Ron as they discuss these ideas and how they apply to professional firms.

Use these show notes to follow along with the audio:

Segment one

• Reilly Newman helped prompt the idea for this show with an email exchange between him and Ron. He wrote a really beautiful looking book called “Brandy”. Check it out here https://www.amazon.com/Brandy-Wisdom-Attaining-Successful-Brand/dp/B0C9S7Q7Q8 

• Reilly is a brand scientist and Ed thought this was interesting because your brand is not a static thing. It requires a constant investment which is an interesting perspective when thinking about a subscription business.

• Our Verasage colleague Tim Williams (@timwilliamsicg) often talks about the difference between magic and logic. Check this link out: https://www.ignitiongroup.com/propulsion-blog/magicians-logicians-professional-services 

• Hey. Guess what you can do at RateThisPodcast? Yep. You can rate the podcast in 15 seconds RateThisPodcast.com/TSOE

Segment two

• Let’s talk about the smile curve. It’s an important mental model that we have talked about before. Check out the image

• We discussed the smile curve WAAAAAAAAAY back on episode 18 with pricing expert Dr. Reed K. Holden https://www.thesoulofenterprise.com/18 

• “The easier it is to quantify, the less it’s worth.” —Seth Godin

• Did you know we have a Patreon channel available with bonus episodes where everything is commercial free? Yep. https://www.patreon.com/TSOE/posts 

Segment three

• What does your “A” stand for in CAS? Ed and Ron tied this back to leveraging the logic and unleashing the magic in segment three of the show today. 

• Skim, penetration and neutral pricing are an important part of the conversation today. Fortunately, we have an episode on the three — and only three — pricing strategies https://www.thesoulofenterprise.com/128 

• Important point from Ed today: Penetration pricing requires that you are careful about the design of your offering. Strip away the high value stuff so that it can be offered later.

Segment four

• Costco’s theft rate is a fraction of the industry average https://www.barrons.com/articles/costco-has-been-on-a-tear-a-low-rate-of-theft-is-one-reason-51613160503 

• Target Circle 360 is a higher tier membership that is launching in the United States on April 7th https://corporate.target.com/news-features/article/2024/03/target-circle-loyalty-program 

• Astonishingly, full-time employees at The Container Store receive close to 300 hours of paid training in their first year.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #479: Growth Grief - Guarding against the glitz and glamour of scale

Growth for growth's sake is the ideology of a cancer cell, not a sustainable business. Yet, the myth of growth and market share persists. "Grow market share! You must be scalable!" We are told over and over, and profits will follow. "Horse hockey!" as Col. Sherman T Potter would say. This week Ron and Ed will share their thoughts on why this pernicious myth does far more damage than good especially in the professional service space.

Use these show notes to follow along with the audio:

Growth vs. Scalability: A Debate

Ron and Ed discussed the value of growth and scalability in businesses. They challenged the conventional wisdom that bigger is always better, citing examples of successful companies that chose to stay small. They pointed out that market share does not necessarily lead to profitability, and that growth can be a strategy, not a goal. The discussion was based on their disagreement with the widely held belief that businesses should always aim for growth and scalability.

Small Business Growth Strategy

Ron and Ed discussed the growth strategy of a firm, O'Byrne and Kennedy, and how they successfully reduced their customer base to focus on advisory services. They emphasized the importance of profitability over volume and shared experiences of companies that failed due to unprofitable growth, such as Starbucks. The conversation also highlighted the advantages of staying small, including the ability to pivot, build profit, and avoid bureaucracy. They encouraged listeners to question the growth mindset and consider the benefits of staying small.

Balancing Growth and Personal Life: A Conversation

Ron and Ed discussed the importance of balancing personal life with business growth. They highlighted the potential of "Mompreneurs" and the success of a company that increased prices without losing customers, resulting in a 9x increase in company valuation. Both agreed on prioritizing value over growth for sustainable business practices. They also discussed the success of Dr. Paul Thomas, suggesting that scalability was due to strategic addition of more doctors. However, they also emphasized the potential problems of company growth, including increased complexity and strain on relationships. They ended the conversation discussing the potential issues of over-investing in a company and the potential benefits of constraints driving innovation.

Embracing Constraints for Growth

Ron and Ed discussed a book titled "A Beautiful Constraint," recommended by a guest on their show. They talked about the concept of embracing constraints as opportunities for growth and improvement, using examples from a podcast they listened to and a book they considered. They also mentioned a third party who picked up their show on LinkedIn and a podcast about customer tax.

Small Company Advantages in Tech Era

Ron and Ed discussed the advantages of being in a small company in today's world. Ron emphasized that the benefits of being in a small company are far greater now due to advancements in technology and changes in government regulations. They also highlighted the potential of crowdfunding to generate significant funds. Ed pointed out that technology has made accounting more efficient and accessible for small companies. They both agreed that being a one-person outfit doesn't mean having to be alone and that many small business owners work with a portfolio of people and organizations. They concluded by expressing their opposition to occupational licensing and regulation.

Small Business Advantages and Customer Satisfaction

Ed clarified the author of a previously mentioned book, "Unreasonable Hospitality," and discussed its content. He and Ron had a conversation about the advantages of smaller businesses in customer retention and acquisition, criticizing larger businesses for neglecting retention. They also touched on the importance of measuring customer satisfaction, employee satisfaction, and cash flow. The conversation explored the concept of market share, the lifespan of businesses, and the balance between personal passion and economic viability. The segment concluded with a focus on strategy and not feeling pressure to rapidly scale a business.

Value Creation vs Market Share: Focus on Future Potential

Ed and Ron discussed the importance of value creation over market share for business success. They emphasized the need for businesses to focus on the future potential and innovation rather than just static market share. The conversation also touched on the potential loss of human interaction in technology-dependent businesses and the importance of face-to-face interactions. Towards the end, they discussed the concept of a long-lasting company as exemplified by many Japanese businesses. They also emphasized the importance of pursuing one's passions in business. Furthermore, they announced the upcoming guests for their show, including discussions on private equity in accounting and subscription-based legal services.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #478: The Future of ERP Systems — Second interview with Aaron Harris

What does the future hold for accounting/ERP systems? There is no one better on the planet to answer this question than Aaron Harris, Sage's Global CTO. Aaron is responsible for Sage’s technology strategy and software architecture. He has more than 20 years of high-tech engineering experience in business applications and software development strategies. Previously a founding leader of Sage Intacct, acquired by Sage in 2017, Aaron led the company’s product vision and technology direction, establishing Sage Intacct as the innovation leader in cloud financial management solutions.

Use these show notes to follow along with the audio:

Segment one

• Aaron Harris was primarily responsible for coding Intacct which we know today as Sage Intacct. I’m sure there are more than a few fans out there in the TSOE world.

• Generative AI has Aaron’s attention today. For example, month end close means submitting timesheets and approving expense reports. Nobody likes it. Making it easier to interact with software will come from Gen AI.

• “Large language models have the capability to not just perform a task but to understand a complex set of instructions. And, they know how to write code.” —Aaron Harris

• In Aaron’s view “getting rid of the close” in accounting requires software to automate tasks and means we need to give ownership of the orchestration to the AI where there is a strong relation between the AI and people. 

• “It doesn’t matter what you automate, a human is always accountable.” —Aaron Harris

• “The death of the monolith” is something Aaron referenced today. It’s a complex topic but easiest to think about in the shift away from a single point of interaction and towards more and more APIs.

 Segment two

• As an early advocate of SaaS, Aaron thinks it will take some time for business models to evolve. This is in contrast to the 37Signals editorial Ron and Ed talked about in prior weeks.  

• A summary from Aaron: The value our customers derive from business applications in the future is from the value of automation and not from the ability for a customer, for example, to process an invoice. 

• "The best way to predict the future is to invent it." —Alan Kay

• AI is going to bring the learning cost to zero and make software more accessible for everyone. “Everybody is more productive when they are given access to Gen AI.” —Aaron Harris

• “AI is going to get adopted very rapidly because developers see the opportunity to work in completely different ways that are almost magical.” —Aaron Harris

Segment three

• “Teens in AI” is a group that Aaron is VERY passionate about. They bring machine learning experts and data scientists into communities and hold hackathons with teenagers, especially girls. Check them out here https://www.teensinai.com/ 

• “A lot of the work that goes into building solutions based on large language models is balancing all of the data and building mechanisms to detect and root out bias.” —Aaron Harris

• The excitement was so spectacular around AI that the takeup is not quite as fast as one might think. Aaron talked about this concept with Ed during segment three of the show today.

• One of the “bets” that Aaron has been making with people: Within 6 months, we will start to see AI agents using our (Sage) products.

Segment four

• What about quantum computing? Does Aaron Harris think it is right around the corner or will be 30 years away…forever? He genuinely doesn’t know but is excited about recent progress in the field.

• One of the pillars of the Alan Turing institute is “AI for good” which is why Aaron and the team at Sage are having conversations with them about working together https://www.turing.ac.uk/

• Atlanta is the heart and soul of Sage in North America which is why Sage has partnered with Morehouse college. More here: https://www.sage.com/en-us/news/press-releases/2023/04/global-software-firm-sage-and-morehouse-college-partner-to-expand/ 

• The death of the monolith is one of Aaron’s long term predictions. He also thinks we will have our own AI assistants that have access to our financials, travel services, and other important date. 

• A big THANK YOU to Aaron Harris, the Sage Global CTO, for joining us today to share some of his views on technology and even make some predictions about the future. Learn more about Sage here: https://www.sage.com/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #477: The Time Tax — The Crime of Stealing Customers' Time

Inspired by an article by former TSOE guest B. Joseph Pine II, and James H. Gilmore, Ed and Ron explored how businesses--including professional firms--can stop wasting the customer's time. Strategies for helping customers save time, and invest it well were explored.

Unlike our show notes editor, artificial intelligence doesn’t file for PTO. With that, here are some links referenced in the show and the AI generated notes:

Show links

• Competing for Customer Time

• Gen AI Could Force Lawyers, Clients to Talk Differently About The Billable Hour

AI notes

Professional Services and Time Tax Discussion

Ed and Ron had a wide-ranging discussion about various topics, from their allergies to a radio show they were preparing to host. They also discussed a colleague, Greg, who was planning a camping trip. The discussion touched upon an article about hourly billing, which Ed agreed to review. The concept of "time tax" was introduced, which refers to wasting customers' time. Ed and Ron discussed the idea in the context of professional services and linked it to the work of Joe Pine and James Gilmore, authors of "The Experience Economy". They concluded that professional firms can provide serial transformations, adjusting their services based on the customer's needs. The importance of not wasting customers' time in business operations was also highlighted, with examples from UPS and Amazon. There was some confusion towards the end regarding a planned break, which was clarified during the meeting.

Time Spent With Clients: Pricing and Experience

Ed and Ron engaged in a wide-ranging conversation about charging for time spent with clients. They explored alternative pricing options, such as contractor, consultant, and coach. The discussion also touched on the importance of providing a memorable experience, with Ron emphasizing that experiences offer time well spent and can lead to increased customer value and spending. They contrasted Uber and Airbnb, noting that while Uber saves time, it doesn't necessarily provide time well spent. They also discussed the role of customer service and hospitality in various sectors. Towards the end, they emphasized the importance of time management in business operations and the concept of time well invested. It goes beyond simply spending time with customers but involves enriching their lives and helping them achieve their aspirations.

Pricing, Value, and Technology Discussion

Ron and Ed discussed Joe Pine's upcoming book and his previous appearance on their show. They also talked about a LinkedIn post about Ron's book and an article about the potential impact of General AI on legal pricing. The conversation then shifted to the challenges associated with evaluating the value of tasks in their firm and the need to shift the focus to the customer's perception of value. They discussed the pricing model of their company's services and the role of technology in this process. Ron suggested that the issue lies not with the pricing model but with the business model, particularly the billable hour. They also discussed Apple's new product, the Vision Pro, and its pricing strategy.

Shift to Outcomes and AI Pricing Strategies

Ron and Ed discussed the shift from a fee-for-service mentality to a focus on outcomes and professionalism. They highlighted an upcoming talk by Aaron Harris, Global CTO of Sage, on AI and pricing strategies. The conversation also touched on the concept of paid interaction, suggesting that audiences might pay for experiences rather than just time. 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #476: The Conservative Futurist — Interview with Jim Pethokoukis

America was once the world’s dream factory. We turned imagination into reality, from curing polio to landing on the Moon to creating the internet. But as we moved into the late 20th century, we grew cautious, even cynical, about what the future held and our ability to shape it. Too many of us saw only the threats from rapid change. What caused this to happen? More importantly, what can we do to change it? Ron and Ed are thrilled have someone who has squarely addressed these questions. Jim Pethokoukis is the author of The Conservative Futurist: How to Create the Sci-Fi World We Were Promised. Jim is a senior fellow and the DeWitt Wallace Chair at the American Enterprise Institute (AEI), where he analyzes US economic policy, writes and edits the AEIdeas blog, and hosts AEI’s Political Economy podcast. He is also a contributor to CNBC and writes the Faster, Please! newsletter on Substack.

About Jim Pethokoukis

James Pethokoukis is a senior fellow and the DeWitt Wallace Chair at the American Enterprise Institute (AEI), where he analyzes US economic policy, writes and edits the AEIdeas blog, and hosts AEI’s Political Economy podcast. He is also a contributor to CNBC and writes the Faster, Please! newsletter on Substack. Before joining AEI, Mr. Pethokoukis was the Washington columnist for Reuters’s Breakingviews, the opinion and commentary wing of Thomson Reuters. Earlier, he was the business editor and economics columnist for US News & World Report. Mr. Pethokoukis is the author of The Conservative Futurist: How to Create the Sci-Fi World We Were Promised (Center Street, 2023). He has also written for many publications, including the Atlantic, Commentary, Financial Times, Investor’s Business Daily, National Review, New York Post, the New York Times, USA Today, and the Week. His numerous broadcast appearances include CNBC, CNN, Fox Business Network, Fox News Channel, MSNBC, and PBS. A graduate of Northwestern University and the Medill School of Journalism, Mr. Pethokoukis is a 2002 “Jeopardy!” champion.

Use these show notes to follow along with the audio:

Segment one

• Jim endeared himself to Ron and Ed immediately by guessing the correct origin of President Reagan’s quote at the beginning of the show. File “Moscow University” away for the next TSOE trivia night.

• Upwing vs downwing economies: Everything these days is left vs right. While useful, they are not the most important way to look at the world. Instead upwing vs downwing is the best way. In effect, do you think we can do better?

• 1955 - 1973 was broadly the post war decades that were very upwing economies. There was a lot of confidence in technology and its ability to create a better world.

• So why does Jim define 1973 as the end of the upwing economy? It featured a marked slowdown in productivity growth due to a number of factors: an oil shock, the stock market fell, and a nasty recession. 

• With respect to the crowding out of talent: The share of spending done on government research vs business used to be 2/3 government. It has flipped around now and it’s important to remember that, broadly, they are doing different things.

Segment two

• Is innovation overall slowing down? That which is lightly or zero-regulated has been moving very fast. It’s gotten hard in spaces like high speed rail, a reactor, a highway, new housing, and so on. 

• From Jim during segment two of the show today: When you look at what people expected the economy to do in 60s and 90s, “If they were to see the economy today, they would ask what happened?”

• This should motivate you to CREATE. From Jim today, “If we do not have the ability to imagine a better future, why take a risk? Why even try?”

• Bad ideas equal bad policies which equals slow growth. Jim wants to BREAK this cycle and talks about it in his book, The Conservative Futurist https://www.amazon.com/Conservative-Futurist-Create-Sci-Fi-Promised/dp/1546005544 

Segment three

• “Beware the Precautionay Principle” (episode 284) was a show Ron and Ed did right before the pandemic. Jim introduced Ron/Ed to the Proactionary Principle. In effect, taking no risk is the biggest risk of all https://en.wikipedia.org/wiki/Proactionary_principle 

• “At worst, AI is a technology only as good as computer+internet. But it could be something more! It will make us wildly more productive in all aspects of our life. If that’s the case, we are talking about the ability to accelerate scientific research across the board.” —Jim

• “People are focusing on the most mundane potential applications of this technology (AI). You have literally Superman, a super research assistant, who can run through every possible combination in every field of every human endeavor.” —Jim

• On AI and it’s ability to get better, Jim says, “AI is the worst today it’s ever going to be.”

Segment four

• On the open economy issues (trade and immigration): “I don’t see how we compete globally against our geopolitical rivals without liberal democracies, trading with each other in as open a way as possible.” —Jim

• Jim has such a wildly positive outlook on our future and it is refreshing! “I really don’t think we are facing a future of mass technological unemployment.” More here https://www.amazon.com/Conservative-Futurist-Create-Sci-Fi-Promised/dp/1546005544 

• A big THANK YOU to Jim Pethokoukis for joining us today. Please, please, PLEASE read his positive outlook on our future in his book, The Conservative Futurist https://www.amazon.com/Conservative-Futurist-Create-Sci-Fi-Promised/dp/1546005544 

• Jim proposes The Genesis Clock. A clock that measures progress towards a new dawn of prosperity. More here https://www.aei.org/articles/forget-the-doomsday-clock-we-need-a-genesis-clock/ 

• A big THANK YOU to Jim Pethokoukis for joining us today! Please, please, PLEASE read his positive outlook on our future in his book, The Conservative Futurist https://amzn.to/3OC5WhT

Bonus note

• Future Shock Documentary (1972) - https://www.youtube.com/watch?v=fkUwXenBokU 

Buy on Amazon

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #475: Punditry Punt

Unfortunately, our Guest fell ill, and could not join us, but don't worry pros play hurt, so Ron and Ed have called an audible, and will be punting to opine on some stuff in the stacks.

Use these show notes to follow along with the audio:

Segment one

• We start today with “Something happened to business software.” — the opening line from Jason Fried of 37Signals as he introduces a new product pricing model, ONCE. https://once.com/  

• Here are pricing details on the first product under the ONCE model from 37Signals. It’s Campfire (their group chat offering) https://once.com/campfire 

• From the ONCE offering Jason Fried says, “The post–SaaS era is just around the corner.” Well, “I doubt it Jason” was Ron’s response. 

Segment two

• In segment two today, Ed started us off with an article titled “Nuclear power generation to reach record high next year, IEA forecasts” https://archive.ph/8aiCt 

• “New-wave reactor technology could kick-start a nuclear renaissance — and the US is banking on it” https://www.cnn.com/2024/02/01/climate/nuclear-small-modular-reactors-us-russia-china-climate-solution-intl/index.html 

• Next-wave nuclear technology is often referred to as small modular reactors - SMRs https://www.iaea.org/newscenter/news/what-are-small-modular-reactors-smrs 

• Mark Stiving writes about a “Brilliant Price Move by Amazon Prime” in one of his recent posts. Check it out here https://impactpricing.com/blog/brilliant-price-move-by-amazon-prime/ 

Segment three

• From The Economist, “Tim cook, boss of Apple, is having a rough start to 2024.” More here https://www.economist.com/business/2024/01/24/what-could-bring-apple-down 

• Regarding the Apple Vision Pro from The Economist article, “Netflix, Spotify and YouTube have announced that they will not make their popular streaming apps work on the headset.” Wait and see seems to be their thought

• Jason Snell of Six Colors produces amazing financial charts on Apple at the end of every quarter which just happened to be this past week. More here: https://sixcolors.com/post/2024/02/apple-reports-nearly-120b-quarter-full-charts/ 

• If you are going to watch a video about the Apple Vision Pro then Marques Brownlee is THE most popular YouTuber when it comes to tech reviews https://www.youtube.com/watch?v=dtp6b76pMak 

Segment four

• We started the last segment today with a BBC article titled, “Elon Musk says Neuralink implanted wireless brain chip” https://www.bbc.com/news/technology-68137046

• Former IRS Contractor Sentenced for Disclosing Tax Return Information to News Organizations https://www.justice.gov/opa/pr/former-irs-contractor-sentenced-disclosing-tax-return-information-news-organizations 

• The so-called 'jock tax' means that the NBA Finals—and other sporting events—are connected to taxes in a big way https://www.kiplinger.com/taxes/what-is-the-jock-tax 

• “Baseball Star Shohei Ohtani's New Contract Is a Massive Tax Avoidance Scheme. Nice!” https://reason.com/2023/12/15/baseball-star-shohei-ohtanis-new-contract-is-a-massive-tax-avoidance-scheme-nice/

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #474: The Jones Act - Interview with Colin Grabow

On this episode Ron and Ed welcomed Colin Grabow of the CATO Institute's Herbert A. Stiefel Center for Trade Policy Studies to talk about the Jones Act (aka Merchant Marine Act of 1920) which regulates maritime commerce in U.S. waters and between U.S. ports, oh, and, makes stuff more expensive for all of us while benefitting a select few. You will learn the main reason why food and other sundry items are more expensive in Hawaii and Puerto Rico; why the Northeast US imports natural gas from Russia instead of getting it from the US; and many more insanities.

[Snarky Editor’s Note] Some day, this episode will be obsolete because Congress will take action and repeal the Jones Act. You can check if Congress has taken action by visiting HasCongressRepealedTheJonesAct.com

Use these show notes to follow along with the audio:

Segment one

• What is the Jones Act? Term used to refer to section 27 of the Merchant Marine Act of 1920. It has four major components and you can read them here: https://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920 

• Here is a slightly older podcast from Cato that Colin did that discusses the case against the Jones Act: https://www.cato.org/multimedia/cato-daily-podcast/case-against-jones-act 

• One of the more outrageous examples of the Jones Act: two hundred and fifty kegs of nails were loaded onto a foreign ship in New York that went to Belgium, and then the nails were placed on another foreign ship and taken to Los Angeles

• Another outrageous example of the Jones Act: a 200-foot long railway in Canada that ships Alaskan seafood to the East Coast. More here: https://www.cato.org/blog/east-coast-seafood-supply-chain-faces-uncertainty-amidst-heavy-fines-alleged-jones-act 

• The Jones Act causes a LACK of oil and petroleum shipping from the Gulf Coast to the East Coast. Instead, most is imported to the East Coast. Why? Details at this link: https://www.cato.org/blog/new-study-estimates-jones-act-costs-east-coast-energy-consumers 

• The Jones Act ENCOURAGES Puerto Rico’s use of Russian energy. This is well documented by Colin and his colleague, Alfredo Carrillo Obregon. More here: https://www.cato.org/blog/jones-acts-role-encouraging-puerto-ricos-use-russian-energy 

Segment two

• “It was like watching Physicists debate flat earthers.” —Ron Baker when talking about Colin’s recent appearance on Maritime TV in which he debated supporters of the Jones Act. https://www.cato.org/multimedia/media-highlights-tv/colin-grabow-discusses-jones-act-maritime-tv 

• Colin revealed today that there are easily 10-12 lobbyist groups whose top (or top 3) priority is maintaining the Jones Act. That is the start of the answer to, “Why has the Jones Act not been repealed or significantly changed?”

• “In 1984 Alaskans overwhelmingly passed a ballot measure mandating the state’s governor attempt to persuade Congress to repeal the Jones Act” — yet, all 3 Congressional reps support it today https://www.cato.org/commentary/alaska-lawmakers-must-get-serious-about-jones-act-repeal 

• If you look into the statistics and pull back the emotion, “We are a manufacturing superpower. I don’t know any other way to say it.” —Colin Grabow; More here: https://www.cato.org/publications/reality-american-deindustrialization 

Segment three

• “I’m gonna go to China, and I’m gonna get these jobs from China and bring ‘em back to America. For what, so iPhones can be $9,000? Leave that job in China where it belongs … I wanna wear Nikes, I don’t wanna make those things. Stop trying to give us Chinese jobs.” —Dave Chappelle

• Here’s probably the MOST absurd outcome due to the Jones Act: Cattle fly first class to Hawaii. Folks, I couldn’t make that up if I tried and Colin wrote a piece on it: https://www.cato.org/blog/jones-act-fleet-high-costs-limited-capabilities 

• The Jones Act was waived for 10 days after Hurricane Maria hit Puerto Rico. That’s the most positive development we can provide in an attempt to #EndTheJonesAct https://www.nytimes.com/2017/09/28/us/jones-act-waived.html 

• So if the Jones Act is so ridiculous then why is it not being challenged? “Concentrated benefits and diffused costs.” —Colin Grabow

Segment four

• “The premium placed by policymakers on manufacturing employment is misplaced. Unlike most of the post–World War II era, jobs in this sector now provide lower compensation than similar roles elsewhere in the economy […]” https://www.cato.org/publications/reality-american-deindustrialization 

• On episode #187, Ron and Ed interview Donald Boudreaux and asked him if we should we do away from trade statistics? “Absolutely”, was Don’s answer https://www.thesoulofenterprise.com/187 

• Here is a seminal piece from Coin Grabow called “The Jones Act: A Burden America Can No Longer Bear” https://www.cato.org/publications/policy-analysis/jones-act-burden-america-can-no-longer-bear 

• A big THANK YOU to Colin Grabow for joining us today. Here is a link to his work at Cato including how the Jones Act undermines National Security https://www.cato.org/people/colin-grabow 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #473: I Have a Right! Do you?

What does it mean to say "I have a right" to something? In this thought-provoking episode, Ron and Ed delve into the distinct realms of negative and positive rights, exploring how they shape our understanding of individual liberties and societal obligations. Join us as we unravel the philosophical, practical, and even business implications of these two concepts, challenging preconceptions and fostering a deeper appreciation for the complexities of rights discourse.

Use these show notes to follow along with the audio:

Segment one

• Trevor Burrus @TCBurrus wrote an article for FEE called, “Is Health Care a Human Right?” which is the starting point for our conversation today. https://fee.org/articles/is-health-care-a-human-right/ 

• “Someone on a desert island can claim the right to life but the tiger doesn’t have to listen.” —Ed Kless

• Ron is reminded of Peter Block’s work — Confronting Our Freedom https://www.amazon.com/Confronting-Our-Freedom-Accountability-Belonging/dp/139415609X 

• Negative rights vs positive rights: Negative rights include inaction on the part of someone else. Positive rights require an action (ie. duty) on the part of someone else

• “The nature of the corollary duty is what distinguishes positive rights from negative ones.” —Trevor Burrus from this article https://fee.org/articles/is-health-care-a-human-right/ 

• 1/4 All from Trevor’s article, there are 4 qualities that make negative rights and positive rights categorically different: 1) “Negative Rights are Absolute; Positive Rights Are Not” https://fee.org/articles/is-health-care-a-human-right/ 

• 2/4 “Negative Rights are Scalable; Positive Rights Are Not” https://fee.org/articles/is-health-care-a-human-right/ 

• 3/4 “Negative Rights Can Easily Exist Together; Positive Rights Cannot” https://fee.org/articles/is-health-care-a-human-right/ 

• 4/4 “Negative Duties are Universally Shared; Positive Duties are Not” https://fee.org/articles/is-health-care-a-human-right/ 

Segment two

• An example of positive rights from Trevor’s article: “In 2009, under Massachusetts’s ‘universal’ health care system, 31,000 legal immigrants had their state-subsidized health insurance scaled back in order to counter budget shortfalls.” https://fee.org/articles/is-health-care-a-human-right/ 

• What does compossibility mean? Don’t worry, I had to look that one up too. Compossibility is a philosophical concept that refers to the ability or possibility of coexisting.

• At some point you will find yourself on the other side of government policy. This is one of Ed’s arguments against Executive Orders.

• Ron mentioned Ayn Rand’s book, Capitalism, The Unknown Ideal. Here is a link: https://aynrand.org/novels/capitalism-the-unknown-ideal/ 

Segment three

• Positive rights do exist in the mind of the Libertarian but only after you have a contract. Once you have a contract then there are positive rights that can be expected.

• Here’s a fun thought experiment around rights: Does an accountant have a right to not perform his/her duties for a business or person that they think might be a cheat?

• The Second Bill of Rights or Bill of Economic Rights was proposed by United States President Franklin D. Roosevelt during his State of the Union Address on Tuesday, January 11, 1944 https://en.wikipedia.org/wiki/Second_Bill_of_Rights 

• The second bill of rights included topics such as an Adequate income for food, shelter, and recreation, Farmers' rights to a fair income, Freedom from unfair competition and monopolies, Decent housing, and Adequate medical care

Segment four

• “Liberty is the absence of coercion and freedom is a choice.” —Peter Block

• The right to a trial by jury in the Constitution is a positive right. There are a few, but not many, other positive rights in the Constitution. Most are negative rights.

• This is a heavy show so we are going to wrap it up on a light note with a discussion on this article. “Why the Ethics of ‘Would You Kill Baby Hitler?’ Are More Important Than You Probably Think” https://fee.org/articles/why-the-ethics-of-would-you-kill-baby-hitler-are-more-important-than-you-probably-think/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #472: Best Books of 2023

In the second of our annual beginning of the year episodes, Ron and Ed recap their best books of 2023. Many listeners consider this the "most expensive" episode of the year as their anti-libraries tend to grow while listening. All books discussed are listed below in the show notes.

Use these show notes to follow along with the audio:

Segment one

• Before we get started on books, here’s a quote from Charlie Munger: “In my whole life, I have known no wise people (over a broad subject matter area) who didn't read all the time — none, zero.”

• Ed’s number 5 book is Social Justice Fallacies by Thomas Sowell - https://amzn.to/48wZDnN - From the book, “Stupid people can cause problems but it requires a genius to cause a catastrophe.” 

• Ron’s number 5 book is While Time Remains: A North Korean Defector's Search for Freedom in America https://amzn.to/48ybL7W 

• From Ron’s number 5 book, “There is a reason why the great books of Western civilization are all banned in dictatorships.”

Segment two

• Ed’s number 4 book is Goldratt’s Rules of Flow by Efrat Goldratt—Ashlag -  https://amzn.to/3TTDrzJ. “This book is going to have a long term impact on my thinking.” —Ed Kless

• Ron’s number 4 book is Capitalist Punishment: How Wall Street Is Using Your Money to Create a Country You Didn't Vote For by Vivek Ramaswamy https://amzn.to/3O2rQut 

• Ed’s number 3 book is Redaction by Titus Katharine and Reginald Dwayne Betts - https://amzn.to/3vrvxDm. It’s an art/poetry book and Reginald Betts has appeared several times on EconTalk

• Ron’s number 3 book is The Creative Act: A Way of Being by Rick Rubin https://amzn.to/3vA5VV7. Rick Rubin is a music producer (editor’s note: …and the reason the Beastie Boys exist)

Segment three

• Ed’s number 2 book AND Ron’s number 1 book is 2. Life After Capitalism by George Gilder: The Meaning of Wealth, the Future of the Economy, and the Time Theory of Money - https://amzn.to/48wwxVp 

• Speaking of Rick Rubin, check out this interview with Tyler Cowen https://conversationswithtyler.com/episodes/rick-rubin/ 

• We had George Gilder on the show specifically to talk about Life After Capitalism (show 442). Check it out at this link https://www.thesoulofenterprise.com/442 

• Honorable mention: Simple Complexity by William Donaldson https://www.amazon.com/Simple_Complexity-Management-Guide-Systems-Thinking/dp/1683500741 (a guest on show number 457 https://www.thesoulofenterprise.com/457)

Segment four

• Honorable book mention: Saving Grace by David D. Alfery MD https://www.amazon.com/Saving-Grace-Patients-Doctors-Balance/dp/1666737941 (show number 426 as a guest https://www.thesoulofenterprise.com/426)

• Honorable book mention: Tornado of Life by Jay Baruch https://www.amazon.com/Tornado-Life-Doctors-Constraints-Creativity/dp/0262046970 (show number 424 as a guest https://www.thesoulofenterprise.com/424) 

• Honorable book mention: Muppets in Moscow by Natasha Lance Rogoff https://www.amazon.com/Muppets-Moscow-Unexpected-Making-Sesame/dp/1538161281 (show number 428 as a guest https://www.thesoulofenterprise.com/428) 

• Honorable book mention: The Little Prince by Antoine de Saint-Exupéry https://en.wikipedia.org/wiki/The_Little_Prince 

• And FINALLY, Ed’s number 1 book is Confronting Our Freedom by Peter Block - https://amzn.to/3TWHtXU “Anxiety is the price you pay for freedom. This is not a great value proposition.” —Peter Block

• When Peter Block was a guest on the show he said, “The nice thing is that you are at risk no matter what you do. The wish for safety is an illusion and so why not choose an illusion that better suits you.” https://www.thesoulofenterprise.com/445 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #471: 2023 — The Year in Review

During this annual favorite Ron and Ed look back on the good, the bad, and the ugly of 2023 including their favorite episodes, news events, pop-culture, business trends, and in memorium.

Use these show notes to follow along with the audio:

Segment one

• As we look back on 2023, we recognize James Johnston, the great British Historian. We lost him on January 12th at the age of 94. https://en.wikipedia.org/wiki/James_Howard-Johnston 

• We also lost Gina Lollobrigida on January 12th, an Italian actress, artist, and politician. She made Marilyn Monroe look like Shirley Temple. https://en.wikipedia.org/wiki/Gina_Lollobrigida 

• Who made Ed’s list of notable losses in 2023? David Crosby - from Crosby, Stills, Nash, and Young - some amazing harmony! Also Cindy Williams from Laverne and Shirley. And Burt Bacharach. 

• And let’s not forget Tony Bennett. Some of his great work was towards the end of his career on a series of albums called Duets. Ed loves the one with Lady Gaga. https://en.wikipedia.org/wiki/Cheek_to_Cheek_(album) 

• We also lost Robert Lucas who famously compared the US economy to an amusement park. Here’s a free article from FT that goes into the details: https://www.ft.com/content/b52a4aac-2e1f-46ce-a8ea-0441e1cfb9a5 

Segment two

• Also in 2023, we lost James Buckley - older brother to William. He was a distinguished US senator, Federal Judge, and Cabinet Member. He is 1 of only 45 people to serve in all 3 branches of the US government. 

• Joe the Plumber passed away in 2023. He famously challenged President Obama on taxes on 2008. https://www.theguardian.com/us-news/2023/aug/28/joe-plumber-dead-obama-campaign 

• We also lost Elinor Otto (October 28, 1919 – November 12, 2023), an American factory worker who was an original "Rosie the Riveter". She built airplanes for over a half-century, and spent many years working for Boeing

• We also lost Shane McGowan in 2023 - lead singer of The Pogues. Here are a few of their greatest songs https://www.youtube.com/watch?v=j9jbdgZidu8 

• Others mentioned on the show today that we lost in 2023: Matthew Perry, Juanita Castro, Rosalynn Carter, Charlie Munger, and running back Jim Brown

Segment three

• According to Chartable, our top shows of 2023 are 5) episode 446 4) episode 442 3) episode 445 2) episode 448 1) episode 444. Just visit TheSoulOfEnterprise.com slash episode number to visit any episode directly.

• According to our website stats, our top shows are 2023 are: 5) episode 459 4) episode 434 3) episode 435 2) episode 450 1) episode 452. Just visit TheSoulOfEnterprise.com slash episode number to visit any episode directly.

• Ron loves the Tony Gill episode, ESPECIALLY the poem at the end of the episode. Folks, you’ve got to hear this. https://www.thesoulofenterprise.com/417 

• Ron was really touched by the interview with Dr. David Alfrey. Here is the direct link: https://www.thesoulofenterprise.com/426 

• The Essentials of Strategy was a phenomenal episode. Ron mentioned this as one of his favorites in 2023: https://www.thesoulofenterprise.com/427 

• According to YouTube, our most popular episodes of all time are interviews. They are 5) Matthew Stewart 4) Thomas Sowell 3) Tyler Cowen 2) Donald Hoffman 1) Rory Sutherland https://www.youtube.com/@askTSOE 

Segment four

• And the winner is….BOTH the Oxford word of the year and American slang word of the year is….. RIZZ (don’t ask me. Go ask a teenager)

• How about another 2023 American slang word: Stan… “I guess you can say I’m a Stan. I stan Taylor Swift (sustained fan or longtime fan)”

• Cap is another 2023 American slang word. “You had dinner with Beyonce??? That’s cap.” (Lie or deceive)

• Another slang word for 2023: Rotting… “Stay in bed. Play on social media. You are rotting for the day.” 

• Ed has some 2024 predications to close out the show: Biden will not be the Democratic nominee. AI will continue to be incredibly hyped…and useful. Bitcoin will pass 100k

• Ron has a few 2024 predictions as well: Jimmy Lai faces a perilous future and China might make a move on Taiwan

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode Reprise: Encore Interview with Tony Gill

Waaay back in Episode 22, Ron and Ed detailed the ideas behind Joel Waldfogel's book, Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays. Waldfogel makes the case that the deadweight loss to the economy from gift giving, in 2007, totaled $12 billion, out of approximately $66.5 Billion spent (about 12%) and that we should all give cash rather than presents. In this episode, we will speak with Professor Tony Gill about his ideas around Rethinking Scroogencomics and some of his other writings.

About Tony Gill

Anthony Gill (Ph.D. UCLA 1994) is professor of political science at the University of Washington and an adjunct professor of sociology at the UW. He is also a Distinguished Senior Fellow at Baylor University’s Institute for Studies of Religion, a research affiliate at the Mises Institute (Auburn, AL), a frequent mentor at the Institute for Humane Studies, and is currently nominated for membership in the Mont Pelerin Society. He specializes in the political economy of religion, religious liberty, and is currently dabbling in the economics of culture. He is author of two books — Rendering unto Caesar: The Catholic Church and the State in Latin America and The Political Origins of Religious Liberty — and a bunch of articles and stuff in places like the American Journal of Political Science, Comparative Political Studies, Rationality & Society, and Public Choice.

Normally, you would see info here about joining us live. This is a pre-recorded episode while Ron and Ed enjoy a well deserved break.

As always, please check our website for upcoming and previous show notes and recordings, use Twitter to find the show at @AskTSOE or find us on Facebook.

The Soul of Enterprise show hosts, Ron Baker and Ed Kless, are on X (the artist formerly known as Twitter) at @ronaldbaker and @edkless, respectively (and obviously).

Episode #470: Holiday Hodgepodge

For their last show of 2023, Ron and Ed cleaned out their stacks of (business and economic related) stuff. It was a fast-paced conversation that makes it hard to listen on double speed!

Use these show notes to follow along with the audio:

Segment one

• We didn’t mean to start off on a bummer but it is worth noting that Gadi Haggai is believed to have passed as an Israeli American hostage being held by Hamas https://www.cbsnews.com/news/israel-hamas-gaza-hostage-dead-gadi-haggai 

• “One in five young Americans thinks the Holocaust is a myth” https://www.economist.com/united-states/2023/12/07/one-in-five-young-americans-thinks-the-holocaust-is-a-myth 

• Ed mentioned that one of the things he likes about X/Twitter is the community notes feature. This allows others to publicly comment and rate the veracity of claims. More here: https://help.twitter.com/en/using-x/community-notes 

• From Jim Geraghty in the National Review: It appears a significant portion of the college students chanting, “From the river to the sea, Palestine will be free,” have no idea which river and which sea they're chanting about. https://www.nationalreview.com/the-morning-jolt/the-antisemites-are-out-and-the-masks-are-off/#:~:text=It%20appears%20a%20significant%20portion,sea%20they're%20chanting%20about  

• The effective AirBnB ban in Manhattan had the exact intended effect…benefitting the hotel industry https://www.travelandleisure.com/airbnb-nyc-brian-chesky-8346923 

Segment two

• “Judge Orders Giuliani to Pay $148 Million Damage Award Immediately” https://www.nytimes.com/2023/12/20/us/politics/judge-giuliani-pay-damages.html 

• “Jimmy Lai’s show trial is how liberty dies” https://www.dallasnews.com/opinion/editorials/2023/12/21/jimmy-lais-show-trial-is-how-freedom-dies/ 

• Here is the Michael Munger podcast episode that addresses Huawei during a conversation with John Nelson https://podcasts.apple.com/us/podcast/the-5g-revolution-huawei-controversy-and-global/id1687215430?i=1000639070906 @mungowitz

• “The Answer to China’s Totalitarianism Is Trusted Tech” https://nationalinterest.org/feature/answer-china%E2%80%99s-totalitarianism-trusted-tech-200598 

• Wage gaps are shrinking and The Economist has a great article about this: “A new age of the worker will overturn conventional thinking” https://www.economist.com/leaders/2023/11/30/a-new-age-of-the-worker-will-overturn-conventional-thinking 

Segment three

• Costco membership fees and operating profits were approximately the same 10 years ago. Now their operating profit is twice the size of their membership fee. https://www.fool.com/the-ascent/personal-finance/articles/you-wont-believe-how-much-money-costco-just-made-on-membership-fees/ 

• From the Economist: “Homeland Economics” is a protectionist, high-subsidy, intervention-heavy ideology administered by an ambitious state https://www.economist.com/leaders/2023/10/05/are-free-markets-history 

• The COP28 climate change conference just ended in Dubai and Ron is really impressed with what 128 countries committed to for their carbon reduction efforts. Ha! I’m completely kidding. Ron’s comments today in segment three of the show are worth listening to for their…..LOGIC. 

• What used to be done via brain surgery can now be done with a helmet, as an OUTPATIENT. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4265964/ 

• Sleep is a bit of an evolutionary mystery and now we have chin strap penguins that sleep thousands of times a day for only seconds at a time. https://www.economist.com/science-and-technology/2023/11/30/why-chinstrap-penguins-sleep-thousands-of-times-a-day 

Segment four

• Quietly passed in 2021, the NY state legislature passed a bill and now “automated work speed zone monitoring” is being rolled out. Speed cameras. https://wpdh.com/automated-speeding-tickets-begin-for-i-84-and-i-87-in-new-york/ 

• From Gale Pooley: “Knowledge is what transforms atoms into resources. While the number of atoms on our planet may be finite, undiscovered knowledge is infinite. This is why resources can be infinite.” @gpooley

• “Supervisors vote against reactivating historic Nevada County gold mine” https://www.cbsnews.com/sacramento/news/historic-nevada-county-gold-mine-return-controversy-over-vested-rights/ 

• We are re-running our interview with Tony Gill next week and will be live again on Friday, January 5th. https://www.thesoulofenterprise.com/417 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #469: The Art of Humor in Business — Interview with Greg Kyte

This is Greg's fifth appearance with Ron and Ed. Some of them incognito. (We'll let you try to figure which is which.) The topics are not scripted, but we assure you jocularity will ensue.

Use these show notes to follow along with the audio:

Segment one

• Once a year, we host Greg Kyte on the show. In his words, Greg is the annual subscription guest of The Soul of Enterprise. If you don’t know him, you might recognize his voice from our commercials.

• Two years ago, Greg started “Oh My Fraud” - a podcast with Caleb Newquist. Never heard of it? Not likely but just in case here is the link https://ohmyfraud.com/  

• What has Greg learned from doing the podcast “Oh My Fraud”? He could become a fantastic embezzler of funds if only he didn’t have a conscious!

• The biggest overarching theme Greg sees from preparing for the “Oh My Fraud” podcast is a lack of internal controls that customers have

Segment two

• Oh….great term that I’ve never heard called the Fraud Triangle. Greg dropped the term today to refer to the things you need for fraud to flourish: opportunity, pressure, and rationalization

• What’s the one thing that drives most fraud to be uncovered? The person committing the fraud gets JUUUUUUUUUST a touch too greedy and then gets busted.

• The retail industry, for example, does calculations on how much money should be spent on deterring shoplifting. The answer might surprise you because they are not looking to control 100% of the shoplifting incidents.

• According to the ACFE Occupational Fraud 2022: A Report to the Nations, organizations lose approximately five percent of revenue to fraud each year with the average loss per case totaling more than $1.78 million https://www.acfeinsights.com/acfe-insights/tag/report+to+the+nations 

Segment three

• Greg and Caleb did episode 30 of Oh My Fraud about Fat Leonard. A man who basically bribed the entire 7th fleet of the United States Navy. Link is here: https://ohmyfraud.com/episodes/e30 

• Episode 32 of the “Oh My Fraud” podcast blew Ron Baker’s mind. It’s called “the Lawyer who sues the big 4 for missing fraud and wins” https://ohmyfraud.com/episodes/steven-thomas-the-lawyer-who-sues-the-big-4-for-missing-fraud-and-wins 

• “Santa uses the subscription model” —Greg Kyte

• “You can’t go to the market with a common offering because you will command a common price.” —Ron Baker

Segment four

• Is it possible to create a concierge comedy service? A subscription service for a comedy club? If you own a comedy club, you could have an annual pass to the club. Greg knows of ZERO comedy clubs actually doing this. 

• “If comedy clubs banded together and subscribed to a pool of comedians they could draw on, that would be interesting.” —Ron Baker

• A big THANK YOU to Greg Kyte for joining us today. Folks, you have to check out his podcast with Caleb Newquist, Oh My Fraud, at this link https://ohmyfraud.com/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #468: Centers of Progress — Interview with Chelsea Follett

This week Ron and Ed welcomed Chelsea Follett to talk about her book, Centers of Progress: 40 Cities That Changed the World. From the book: "Where does progress happen? The story of civilization is the story of the city. It is cities that have created and defined the modern world by acting as the sites of pivotal advances in culture, politics, science, technology, and more. There is no question that certain places, at certain times in history, have contributed disproportionately toward making the world a better place. This book tells the story of 40 of those places." In Centers of Progress: 40 Cities That Changed the World, Chelsea Follett examines a diverse group of cities, ranging from ancient Athens to Song-era Hangzhou.

Use these show notes to follow along with the audio:

Segment one:

• Chelsea spends a lot of time thinking about human progress (get it?) and the conditions that drive it. This inspired her to write a book called “Centers of Progress: 40 Cities That Changed the World”. More info here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652 

• Chelsea started writing this book during the pandemic and this (the pandemic) caused people to question cities and their role in the future. It was HARD the trim the list down to 40 cities for her book. 

• Most of the cities in Chelsea’s book were selected by reverse engineering things like a stable food supply and sanitation (for example). The origin points became some of the cities featured in her book.

• Urban centers are where we have seen new innovations and world changing innovations. Chelsea’s book - “Centers of Progress: 40 Cities That Changed the World” - goes through the examples

Segment two:

• Relative peace, freedom, and multitudes of people are some of the key attributes associated with the Centers of Progress identified in Chelsea’s book. More info here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652  

• Sure, sure…human accomplishment can happen during times of war and instability. Chelsea’s book looks at the conditions that foster creativity and progress to help cultivate innovation. Peace and stability.

• “Conditions for progress can unravel so quickly. One of the most recent examples is Hong Kong.” —Chelsea Follett

• Many people assume the humanities are the result of leisure time, entrepreneurs, inventions. Writing evolved gradually due to…accountants and their need to document finances. Apt for our audience :)  

Segment three:

• “Economic development […] then funds all of the other forms of progress. Scientific advancements, inventions, great artworks.” —Chelsea Follett

• So much of the great music that we are familiar with TO THIS DAY all occurred in Venice. That’s where artists were well paid so it was lucrative for them. More on great cities here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652

• How did Thomas Edison influence Hollywood? At the time he was a very litigious man so the only way creative freedom in film could happen would be to go all the way to the West Coast…where Hollywood was created.

Segment four:

• Why is Wellington, New Zealand in Chelsea’s book about 40 cities that changed the world? They represent significant moral progress in the area of suffrage throughout the city’s history.

• China was superior in many aspects during the 12th century through the 16th century. Conditions for prosperity are fragile and not being at the front of the Industrial Revolution for China is a great example.

• San Francisco is a “city of extremes” and is featured in Chelsea’s book, “Centers of Progress: 40 Cities That Changed the World”. More info here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652  

• A big THANK YOU to Chelsea Follett for joining us today to talk about her book, “Centers of Progress: 40 Cities That Changed the World”. More info here: https://www.amazon.com/Centers-Progress-Cities-Changed-World/dp/1952223652 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #467: Subscription Economy Update — 2023 Edition

We can't believe it has been since February of 2022 that we have done a subscription-economy update. (Check it out at http://thesoulofenterprise.com/378.) We are glad to be sneaking this one in just under the wire for 2023. Ron and Ed share their latest thinking on the progress (or regression) of subscription pricing both in the professions and in the broader market including both business and consumer. As usual they come "loaded for bear." It will be a challenge to listen to this one at double speed.

Use these show notes to follow along with the audio:

Segment one:

• Other subscription updates that were full shows include show 378 in February of 2022. Show audio and notes here: https://www.thesoulofenterprise.com/378 

• For one and done services, it’s really hard to turn into a subscription. What about a real estate agent, for example? We don’t have an answer yet but maybe some businesses do not fit the subscription model.

• Divorce attorneys and funeral parlors. Those are two great examples Ron and Ed give that are……ahem…..challeging from a subscription perspective.

• Ed and Ron had a fun time with this article today with a hat tip to Hector Garcia. Let’s just say there are some holes in the article :) https://www.axios.com/2023/11/24/membership-subscription-economy-business-model 

Segment two:

• From Andrew on LinkedIn (via Ron): He runs a sonic branding agency (the sounds we associate with brands) with weekly and bi-annual orders with budges in hundreds to the tens of thousands. How can this be a subscription?

• Related to Andrew’s question, Tim Williams has a great quote here because this is more about positioning than it is pricing: “Be something to someone.”

• Here’s a great definition of strategy from Playing to Win by AG Laffley and Roger Martin: “Strategy is an integrative set of choices that positions you on a playing field of your choice so that you can flourish.”

• “Diversification is what you do when you don’t know what to do. “ —Tim Williams

Segment three:

• The subscription release of the year for 2023: CNN blocks all programming of CNN so that you don’t see it again for $15 per month https://babylonbee.com/news/cnn-introduces-premium-subscription-service-that-blocks-all-cnn-programming-from-view 

• Gaming subscriptions are an enormous market now. Total gaming subscription revenue is currently estimated at $16 billion with game subscription revenues to rise to $22 billion a year by 2027 https://www.xfire.com/game-subscription-revenues-to-rise-to-22-billion-a-year-by-2027 

• People Are Sick and Tired of All Their Subscriptions: https://www.wsj.com/articles/people-are-sick-and-tired-of-all-their-subscriptions-cbee7e03 

• “Subscription moves things from CapEX to OpEX. It makes things more predictable and usually saves cash flow.” —Ron Baker

Segment four:

• Great news from Ron! You are invited to attend the Successful Bookkeeping virtual summit where Ron will be speaking on the subscription business model. Register here: https://www.thesuccessfulbookkeeper.com/virtual-summit-2023 

• Wait….what??? Did Ron just say you don’t need 3 pricing options anymore? You’ll need to listen to segment 4 of the show today to listen to him tease out this idea.

• From Ed today: Why has this option not appeared since the advent of cloud accounting? “You can use our system as long as you allow us to use your data to train our systems.”

• Why do people gravitate to flat pricing? Three reasons: 1) We overestimate our usage. 2) The feeling of being nickeled and dimed. 3) The insurance effect.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode Reprise — Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays

[Editor’s Note: Some things are just too good not to share again. While our most ardent listeners are familiar with Episode #22, Scroogenomics, many may not be familiar with this specific show. This Friday is Black Friday in the United States which means it’s time - once again - to talk about why you shouldn’t buy presents. Bah, humbug!!!]

On Black Friday, and right before Cyber Monday—the biggest shopping days of the year—Ed and Ron thought it would be fun to discuss the interesting, funny, and thought-provoking book by Joel Waldfogel: Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays.

The author makes the case that the deadweight loss to the economy from gift giving, in 2007, totaled $12 billion, out of approximately $66.5 Billion spent (about 12%). Citizens Against Government Waste would classify Christmas as a wasteful government program.

Gift giving severs link between buying decision and item’s value to its user—the transaction actually destroys value. To add insult to injury, we are obliged to pretend to be grateful!

His complaint is not the level of spending or the consumption, but the waste.

We discussed the four ways you can spend money in the economy:

Former Congressman Dick Armey pointed out how difficult spending is in Category II (Gift), let alone Category IV (Government):

Every year, I worry and fret select the right birthday gift for my wife, Susan. Every year, try as I might, I manage to choose the wrong thing. If I can’t figure the needs and desires of the one person who is closest to me in the world and who I deeply love and care for, how can we expect the government to do a better job?

Three groups spend other people’s money: children, thieves, politicians. All three need parental supervision.

Hierarchy of value of gift giving

• Aunts & uncles & grandparents = 75%

• Parents = 97%

• Friends =91%

• Siblings =99%

• Significant others = 102%

Further, we spend approximately 2.8 billion hours shopping in December. To put that number in context, the old USSR—before it imploded—spent 35 billion hours annually standing in line for everyday products and services.

Infographic from Deloitte’s 2018 annual holiday survey

Economist Ian Ayres said this about Waldfogel’s book:

Joel Waldfogel is one of the smartest and funniest economists on the planet. I think of him every time I start to unwrap a present. Buy Scroogenomics for your friends and family. It makes the perfect Christmas gift.

Episode #466: Interview with Steve Goreham — The Green Breakdown

Ron and Ed were delighted to welcome Steve Goreham to The Soul of Enterprise. He is the author of four books on climatism and green energy, and we discussed his most recent book: Green Breakdown: The Coming Renewable Energy Failure, published this year. We dove into the physics and engineering issues involved in the transition to renewable energy, and why it won’t be as easy as a lot people claim. This was an enlightening and informative discussion.

Use these show notes to follow along with the audio:

Segment one:

• Steve has an engineering background which likely helps with how he methodically approaches his new book, Green Breakdown https://www.amazon.com/Green-Breakdown-Coming-Renewable-Failure-ebook/dp/B0CB93BG7Y 

• Ed referenced this today because Steve alludes to it in his book. Did you know about the great horse manure crisis of 1894? More here: https://en.wikipedia.org/wiki/Great_horse_manure_crisis_of_1894 

• “The wealthy nations of the world are in the midst of an energy transition and trying to force NET ZERO by 2050.” [..] “This is beyond a reach out effort. It’s more like a wish and a prayer.” —Steve Goreham

• Today I learned, the states that have the lowest electricity rates have made significant investments in hydroelectric power.

Segment two:

• Wind, solar, and the energy mountain is a great slide provided by Steve for the show today

• “We have the wealthy nations of the world trying to force the undeveloped nations not to use coal, oil, and gas.” —Steve Goreham

• On carbon capture and storage (CCS): “I attribute [CCS] to unicorn arranging. It’s a completely useless exercise.” —Steve Goreham

• Steve touched on the idea that $5 trillion dollars has been spend on renewable energy from 2004-2021. Here is a slide with key dates.

Sement three:

• Should you ditch your gas stove, oven, water heater, or fireplace? “The recent articles around these topics weren’t written by medical professionals. They were written by climate folks.” —Steve Goreham

• Steve asks audiences this question when speaking: “What fuel source is most responsible for improving air quality across the world? Natural gas and propane.” Here is a quick source https://www.eia.gov/energyexplained/natural-gas/natural-gas-and-the-environment.php

• “We’ve really cleaned up our air in the United States. If you look at EPA data, all of our major air pollutants are down about 80%.” —Steve Goreham

• “Nuclear is very non-polluting from an air quality point of view. Many environmental groups for years and years opposed nuclear power. They’re stepping back from that now a little bit.” —Steve Goreham

Segment four:

• From Steve: Electric vehicles are penetrating world markets. Last year about 14% of new light vehicles sold in the world were electric. But dealer inventories are up. EV pickup trucks are not selling well. Ford loses on every vehicle sold. 

• The problem with electric vehicles is that governments are trying to force a change. Steve rattled off a list of about 10 states that have a law similar to California. 

• After electric vehicles, Steve shifted his attention to ships on our show today. And aviation. There are similar “green” regulations in both industries that he addresses in his book, Green Breakdown https://www.amazon.com/Green-Breakdown-Coming-Renewable-Failure-ebook/dp/B0CB93BG7Y 

• A big THANK YOU to Steve Goreham for joining us today. We highly recommend his newest book, Green Breakdown: The Coming Renewable Energy Failure https://www.amazon.com/Green-Breakdown-Coming-Renewable-Failure-ebook/dp/B0CB93BG7Y 

• We have GREAT NEWS! Ron will be presenting at The Successful Bookkeeper Summit on December 7th - 8th. Early bird registration is available now. https://www.thesuccessfulbookkeeper.com/virtual-summit-2023  

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Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #465: Goldratt's Rules of Flow

This week Ron and Ed explored Goldratt's Rules of Flow by Efrat Goldratt-Ashlag, daughter of Eliyahu M. Goldratt whose seminal work, The Goal has been read by millions. Interestingly enough, this topic was suggested by Ron who usually falls asleep when Ed gets rolling on project management topic, so you know this episode is one to remember.

Use these show notes to follow along with the audio:

Segment one:

• This is the quote Ron and Ed started the show with. You can probably tell they had fun with it. “The common belief is that if every machine is fully utilized the entire operation will be efficient.”

• “I have been advocating for years that people who do software implementations should sell the project plan up front as a separate engagement.” —Ed Kless

• “External customers are the ones footing the bill for everything. Not internal customers.” —Ron Baker

Segment two:

• When you think about the work you can do, remember this. The more projects in the mix, the longer the lead time, which means we need to control our width. 

• “Multitasking is not true. You don’t multitask. You deal with multiple tasks in a serial fashion. You can’t possibly do more than one thing at the same time.” —Ed Kless

• One of the rules from the Rules of Flow: “If you don’t want to get stuck, verify full kit before you get going.”

• How many of you does this resonate with? From Rules of Flow: “We attempt too many projects at the same time and we pay too little attention to each project.”

Segment three:

• “If you can increase the amount of time you are spending on a particular project, you are far better off.” —Ed Kless

• Related to the Rules of Flow and project management… “Customer: I don’t have time to test. Ed Kless: Well, do you have time to fix it when it’s not working?” 

• “You always fix a problem twice. Once for the time it happens and then by thinking about what you are going to do to stop the problem from happening in the future.” —Ed Kless

• “Managers and leaders shouldn’t be scheduling what people work on when. You should give them a due date, estimated effort, and let the individual decide when they are going to complete that task.” —Ed Kless

• Ron and Ed mentioned Parkinson’s law on the show today. More here: https://en.wikipedia.org/wiki/Parkinson%27s_law

Segment four:

• Buffer time, in project management, is the extra time added into a time estimate to keep a project on track. https://www.velaction.com/buffer-time/

• The Fever Chart explained in four minutes: https://www.marris-consulting.com/en/videos/critical-chain-project-management/the-fever-chart-explained-in-4-minutes 

• “Queuing theory was mind numbing” —Ron Baker, more information here: https://en.wikipedia.org/wiki/Queueing_theory 

• “It’s all about how you arrange the work.” —the late, great Dr. Reginald Lee

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #464: On Mark Andreessen's The Techo-Optimist Manifesto - Part 2

This week Ron and Ed continued their conversation on Mark Andreessen's The Techo-Optimist Manifesto. In addition to finishing their analysis, they talked through some responses that others have had to the document. In addition, Ron and Ed were joined in the conversation by Greg Tirico of TSOE Bonus episode fame and knower-of-many-techno-things himself.

[Editor’s note: Part 1 of Ron and Ed’s discussion is episode number 462 at this link]

This show’s guest was Greg Tirico, the dude who normally takes notes for us and sits quietly in the background of each show. Since no one was sitting in the corner taking notes, we give you the best AI can provide.

AI Generated Show Notes:

• Tech optimism and the future of enterprise.
  Ed Kless and Ron Baker discuss Marc Andreessen's techno-optimist manifesto with guest Greg Tirico, who has knowledge of technical things and has previously appeared on the show. Greg Tirico shares insights on Andreessen's ideas and participates in a bonus episode for Patreon members.

• Techno optimism and fear of failure in the accounting industry.
  Greg Tirico and Ron Baker discuss Mary Meeker's former Internet Trends report and how it's no longer being produced. Joe Woodard and Heather Satterlee host a podcast on techno optimism, including an episode on the fear of failure.

• The meaning of life and materialism in techno philosophy.
  Ron Baker questions the distinction between techno optimism as a material philosophy vs. a management philosophy. Ron Baker and Ed Kless discuss how technology opens up possibilities for human existence, with Ron acknowledging the line between materialism and spirituality.

• The future of technology and society.
  Greg Tirico and Ed Kless share their excitement about the potential of the internet and its impact on society. Ron Friedman is critical of the mass demoralization of society and the undervaluing of existential risks, sustainability, and ethics.

• Enemies, ideas, and consequences.
  Ron Baker and Ed Kless discuss the dangers of "zombie ideas" and the importance of holding experts accountable for their actions. Ron Baker and others criticize Andreessen's blanket statements on trust and safety without sufficient explanation.

• Technology, ethics, and the future.
  Ed Kless and Ron Baker discuss the precautionary principle and its connection to civilian nuclear power. Asimov's Foundation Series features miniaturized civilian nuclear power.

• Techno-optimism and its limitations.
  Greg Tirico and Ron Baker discuss Marc Andreessen's techno-optimist manifesto, focusing on the section on the enemy and the idea that bad ideas are more harmful than bad people.
  They also discuss how the population has voluntarily adopted monitoring devices like iPhones, which could be seen as a form of 1984-style thought control.

• Techno-optimism and the future of humanity.
  Ron Baker and Ed Kless discuss the importance of being optimistic about the future and fighting for a better world, citing David Deutsch's idea that we have a duty to be optimistic because the future is open and not predetermined. Alex Epstein is mentioned as someone who is talking about the importance of developing countries and reducing poverty, and Ron Baker finds his message compelling. Ron Baker and Ed Kless discuss techno optimism and the importance of builders in society, citing various influential thinkers.

• Influential authors and the challenges of creating a comprehensive list.
  Greg Tirico and Ron Baker discuss the difficulty of creating a comprehensive list of well-read individuals, as it inevitably excludes others.

• Twitter accounts and their humor.
  Based Bev Jesus is a hilarious Twitter account poking fun at cutting-edge technology, including large language models from Facebook. Ed Kless and Ron Baker discuss sponsors, ratings, and shoutouts on their podcast.

• A Wired article criticizing Marc Andreessen's techno optimist manifesto.
  Steven Levy, well-known tech author, critiques Marc Andreessen's manifesto in Wired article.
  Steven Levy, technology journalist and author, has been involved with Wired magazine since its inception and has written several books on tech companies, including Google and Facebook.
  Greg Tirico expresses disappointment with Steven Levy's attacking tone in an article about Andreessen Horowitz.

• Late stage capitalism and wealth inequality.
  Ron Baker and Ed Kless discuss the use of the term "late stage capitalism" in a recent article, with Baker finding it grating and Kless pointing out its repetition. The speakers debate the effectiveness of addressing income inequality through wealth creation, with Baker arguing that it's a separate issue and Kless suggesting that it's intertwined. Greg Tirico expresses techno-optimism, while Ed Kless and Ron Baker criticize Andreessen's essay for lacking solutions to wealth creation and distribution issues. Baker and Kless argue that Andreessen's manifesto is overly critical and cherry-picks information, while Tirico's response is more constructive and focused on providing solutions. Ron Baker and Ed Kless analyze Marc Andreessen's article, criticizing his views on healthcare and entrepreneurship. They argue that Andreessen's success may be due to jealousy and envy from those who are less wealthy and successful.

• Techno optimist manifesto with rebuttals.
  Greg Tirico and Ron Baker discuss the techno optimist manifesto with a few rebuttals from listeners. Greg Tirico highlights Marc Andreessen's effort to elevate the conversation on technology and its impact. Critics dismiss Andreessen's manifesto as a "word salad" with no substance.

• AI regulation and its potential impact.
  Ed Kless and Ron Baker discuss the potential dangers of artificial intelligence and the importance of responsible policymaking. Biden's executive order on AI is inspired by Tom Cruise's movie "Mission Impossible," with a focus on government standards and monitoring.
  Ed Kless and Ron Baker are skeptical of fears about AI, with Kless calling it "fear mongering" and Baker saying there's no evidence it contradicts human flourishing and progress.
  Greg Tirico notes the potential for AI regulation to harm the US and lead to a "slippery slope" of regulation, while Adam Firor expresses concern that the EO could lead to a backdoor regulatory regime. Optimists face backlash for their positive views, while pessimists are more likely to be recognized and rewarded.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits.