Dec. 8, 2025 - The Ben Shapiro Show
57:53
Participants
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| Speaker | Time | Text |
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| A lot of the economic numbers look really good. | ||
| So, why do many Americans feel so bad about the economy? | ||
| Plus, another terrible crime story out of Charlotte, North Carolina, and the Somali-American fraud scandal continues to percolate. | ||
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| Well, folks, it feels as though there is a gigantic disconnect between how the stock market is actually doing, how the economy is actually doing, and people's feelings about the economy. | ||
| If you look at the statistics right now, the overall inflation rate in the United States is around 3%. | ||
| That's 50% higher than the Fed's target rate, but it is, in fact, a sort of moderate inflation rate for American history. | ||
| It's higher than it has been for the course of the last couple of decades when we had unusually low inflation rates, but it is not 8%, 10%. | ||
| If you look at the overall unemployment rate in the United States, it is currently 4.4%. | ||
| That is a historically low rate. | ||
| If you look at the average across the last 50 years of American history, what you see is that the average unemployment rate in the United States is closer to 6%. | ||
| And of course, if you looked this morning at the opening of the Dow Jones Industrial Average, the Dow Jones opened nearly 48,000, which of course is historically high, very high. | ||
| And in fact, the Dow Jones is up year on year about 8%. | ||
| Okay, so these are big booming numbers. | ||
| These are good numbers for the economy just overall. | ||
| And there's reason to believe that the stock market is actually going to increase from here, even if people like me say that there is a bubble and that that bubble will inevitably burst. | ||
| Because whenever you have a major new technology like say AI, there's an enormous amount of spending that goes into that new tech, big build out, more investment, many companies. | ||
| And then the expectations are not met by reality. | ||
| There's a bit of a bust, but the best companies survive and end up transforming the economy. | ||
| That's the story with the automobile industry. | ||
| That's the story with the internet. | ||
| It's the story, I think, also with AI. | ||
| Even with that said, we may be in for a ride before that bubble bursts at all. | ||
| As the Wall Street Journal points out, there are many factors that are currently leading to wild bull market optimism on Wall Street. | ||
| According to the Wall Street Journal, there are five factors that suggest that investors are feeling pretty good about the stock market. | ||
| One, stock valuations could be worse. | ||
| Stocks currently look very expensive, like price to earnings ratios, which is what I talk about. | ||
| The price to earnings ratios right now are totally out of whack for companies like, for example, Tesla. | ||
| Tesla's earnings on an annualized basis represent a tiny fraction of its actual stock valuation. | ||
| But the stock valuation of Tesla is not based on how many cars it's selling. | ||
| It's based on its AI play. | ||
| It's based on a robotics play. | ||
| It's based on a wide variety of experimental plays people figure are going to pay off in the long run. | ||
| And so looking at their car sales is not a good proxy, says Tesla, for what the company is actually worth. | ||
| Many Wall Street analysts think that the best way to value stocks is to compare their earnings yield, that's the earnings to price ratio expressed as a percentage with yields on ultra-safe government bonds. | ||
| One popular version of that metric, known as the excess CAPE yield, uses SP 500 companies' average earnings from the past 10 years and adjusts both those earnings and the 10-year treasury yield for inflation. | ||
| As of November, it stood at 1.7%. | ||
| That is low by historical standards, suggesting the high prices of stock have shrunk the reward for owning them over bonds, but it's not unprecedented. | ||
| It's actually up from 1.2% in January. | ||
| Economic growth is also supporting earnings. | ||
| Because while there is concern right now about job growth and while there is concern about layoffs at some major retail companies, the reality is that many people believe that job growth has slowed largely because of the sharply reduced illegal immigration happening in the United States. | ||
| And holiday spending has been pretty strong. | ||
| Weekly unemployment claims have remained pretty low as well. | ||
| Now, again, we're still missing some statistics from the Bureau of Labor statistics, but it shows that things remain relatively robust. | ||
| It is not, by the way, just about the big tech stocks. | ||
| Now, I have said before that the vast majority of gains accreting on Wall Street are happening at the top end of the market. | ||
| And statistically, that's true. | ||
| But that doesn't mean everybody else is doing poorly. | ||
| The Russell 2000 index of smaller company stocks reached a record high last week. | ||
| The S ⁇ P 500 Equal Weight Index, which gives the same influence to each company regardless of size, is also near a record, providing a hope that the tech-censored sell-off would not be disastrous, that even if the MAG 7 take a hit, that the rest of the stock market won't collapse. | ||
| Inflation expectations are also anchored, meaning that nobody believes that the inflation rate is going to go down to zero at any point. | ||
| But the Fed is looking at cutting interest rates anyway, and prospects for longer run economic growth have actually improved. | ||
| Negative yields on tenured TIPS showed investors expect rates to stay at rock bottom levels for the foreseeable future. | ||
| Yields have stabilized at pre-crisis levels. | ||
| So says Thanos Bardas, senior portfolio manager, co-head of investment grade at Newberg or Berman, for a lot of investors, you have higher confidence to invest in general, whether it's equities or fixed income when real yields are positive. | ||
| It looks like the economy is operating at potential or above potential. | ||
| So in other words, things look like they should be pretty good. | ||
| And it does look as though there is now a solid move in the Calci markets. | ||
| They're one of our sponsors. | ||
| There's a move in the prediction markets, not just in favor of a federal decision to cut rates by 25 basis points come December, but a massive move. | ||
| If you recall, in November, for a little while, it looked as though the markets had moved in favor of the Federal Reserve maintaining its rates, that it would not, in fact, cut those interest rates, that there were worries about inflation, there were worries about affordability. | ||
| And so the kind of going logic was that the Federal Reserve would keep rates steady. | ||
| Well, for some reason, since then, there's been a gigantic spike in investment in that prediction market in favor of the cut. | ||
| So either somebody's trading on inside information, which wouldn't be totally crazy, or it is quite possible that the Federal Reserve is looking at the kind of slowing employment numbers and the relatively mediocre inflation rate and saying that they are more worried about an unemployment increase than they are about an inflation increase. | ||
| All of which means that if there's more money injected into the economy, the stock market is likely to continue going up and the unemployment rate is likely to stabilize. | ||
| In just a second, we'll get to why people seem disturbed by the economy, even though the numbers are pretty good. | ||
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| So why do people feel so terrible about the economy? | ||
| Right? | ||
| That's the big question. | ||
| And the answer, of course, is that what you are getting right now is an embedded feeling about inflation from before. | ||
| People had an outsized expectation of what could be done when Trump entered office. | ||
| Obviously, wages would have to increase an awful lot in order to make up for the inflation we have seen since 2020. | ||
| We've seen this massive, massive inflation in costs since 2020. | ||
| And that's because the government just helicoptered money around, which created gigantic inflation, less in terms of wages than in terms of costs, particularly in places like housing, which has a lot of obstacles to building new housing. | ||
| Scott Besson, the Treasury Secretary, he says that the economy is continuing to outperform expectations. | ||
| He's correct about this. | ||
| Mr. Secretary, a lot of people are out there holiday shopping. | ||
| Here is how the president described back in April what to expect from this season. | ||
|
unidentified
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Maybe the children will have $2 instead of $30, you know? | |
| And maybe the $2 will cost a couple of bucks more than they would normally. | ||
| Was the president's prediction then correct? | ||
| Margaret, it's actually been a very strong holiday season. | ||
| And we've seen across all the income cohorts thus far. | ||
| And so there's nothing to say that they're $2 instead of $30. | ||
| The president was wrong to predict lower numbers of purchases and higher prices. | ||
| The economy has been better than we thought. | ||
| We've had the 4% GDP growth in a couple of quarters. | ||
| We're going to finish the year despite the summer shutdown with 3% real GDP growth. | ||
| And Scott Bessant went on to say that one of the reasons we're seeing affordability problems is because of scarcity and overregulation due to Democratic policy, largely in blue cities, which is true. | ||
| Democrats created scarcity, whether it was in energy or over-regulation, that we are now seeing this affordability problem. | ||
| And I think next year we're going to move on to prosperity. | ||
| You do think there is an affordability problem? | ||
| Sorry? | ||
| You do believe that? | ||
| Oh, I think the Biden administration created a terrorist. | ||
| No, but now we're nearly 12 months in. | ||
| You said the president would own the economy at this point. | ||
| I said that the Biden administration created the worst inflation in 50 years and maybe for working Americans, the worst inflation of all time. | ||
| And we have pulled that number down. | ||
|
unidentified
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Okay. | |
| And he is right about all that. | ||
| Again, the thing that Americans expected is not a thing that could be delivered. | ||
| What the Trump administration has largely done is stabilize prices, at least compared to wages. | ||
| What they have not done is radically reduced prices because, in order, again, to radically reduce prices in any field, you need either a gigantic increase in supply or a radical reduction in demand. | ||
| And when it comes to things like housing, even a radical increase in supply is going to take some time. | ||
| And you're not going to get a reduction in demand for any of this stuff unless you actually see an economic recession, which is the opposite of what the Trump administration would like to see. | ||
| There's a reason why Jamie Dimon is pointing out that the consumer is basically fine, but inflation is not going down, which seems to be correct. | ||
| JPMorgan Chase CEO Jamie Dimon said on Sunday, in the short run, it looks like the American consumer is doing fine, is chugging along. | ||
| Companies are making profits. | ||
| Stock markets are high. | ||
| That could easily continue. | ||
| There are little small negatives. | ||
| Jobs are weakening, but just a little bit. | ||
| Inflation is there and maybe not going down. | ||
| Now, one thing that Diamond said that's really interesting is he's looking at AI and a lot of the concern right now, particularly among younger Americans, that AI is going to take their jobs. | ||
| And what he says is jobs have gotten a little weaker, wages have gotten a little weaker. | ||
| And when you talk to businesses, they're going to be a little bit more cautious hiring. | ||
| That's not because of AI. | ||
| That's just because they want to do more with less. | ||
| I don't think AI is going to dramatically reduce jobs, unbelievably, next year. | ||
| Now, next year, of course, is not the entire concern. | ||
| There could be long-term job loss from AI in particular industries. | ||
| But there is, in fact, a gigantic disconnect between how people are feeling about the economy, particularly young people, and what the economy is actually doing right now. | ||
| And so we have to try and understand why that's happening. | ||
| According to a brand new poll from Harvard Kennedy School Institute of Politics, more than 40% of 18 to 29-year-olds surveyed last month said they are struggling or just getting by. | ||
| One quarter believe they'll be worse off financially than their parents. | ||
| Now, again, to be fair, a lot of people struggle when they're 18 to 29 years old. | ||
| Now, I was a Harvard law school graduate, and I remember essentially living paycheck to paycheck with my wife for at least several years early on in our marriage. | ||
| I remember there was a point where we were thinking of taking out a second credit card in order to pay off the first credit card. | ||
| We were, I think, down to $2,000 in our savings at one point. | ||
| So it's kind of normal to struggle when you're 24, 25, 26 years old. | ||
| The question is: the directionality. | ||
| Do you feel like you're going to get out of it? | ||
| Well, it's not just that young people feel like they are struggling. | ||
| They are concerned about what comes next. | ||
| So there's widespread concern over inflation. | ||
| That includes 37% of all Americans, of all young Americans, believe that inflation is their top issue. | ||
| That includes 36% of Democrats, 48% of Republicans, and 34% of Independents. | ||
| Other concerns include healthcare, housing, jobs, taxes, and wages. | ||
| What's fascinating is that, again, when people feel unsettled, it is not as though they come down squarely in one ideological camp. | ||
| They actually start just losing faith in pretty much all ideological labels. | ||
| One of the most interesting results from this Harvard-Harris poll was a question about support for ideological categories in economics. | ||
| And what the poll showed is that in 2018, 43% of young people said that they supported capitalism. | ||
| That went up to 45% in 2020. | ||
| And today it is 39%. | ||
| So it's down fairly significantly. | ||
| Democratic socialism, however, is down dramatically. | ||
| So these sort of Bernie Sanders wild redistributionism schemes, 39% said they supported that in 2018, 40% in 2020, only 29% today. | ||
| So capitalism, according to this Harvard Kennedy School Institute of Politics poll, according to that poll, young people still favor capitalism over democratic socialism by 10 percentage points. | ||
| As for socialism proper, like the nationalization of resources, only 21 percent of young people say they support that ideological category, which again is really, really interesting. | ||
| In other words, they don't know where to turn. | ||
| The one thing that it seems like they want is quote unquote strong leadership. | ||
| When people don't know where to turn and they want strong leadership, that is not necessarily a wonderful thing. | ||
| Now, as far as right track, wrong track, when you look at this youth poll, what it shows is that a huge number of people believe that the nation is headed into the wrong track. | ||
| 4% of Democrats, of course, say the nation is headed in the right track. | ||
| They're very upset with President Trump. | ||
| 33% of Republicans say that the nation is headed on the right track, 27% wrong track, 39% unsure. | ||
| So those aren't similar numbers even among Republicans. | ||
| More than half of Hispanic and black respondents report financial hardship compared with 39% of white peers. | ||
| Financial insecurity is sharply higher among non-degree holders, 53%, than among college students, 28%, and graduates, 32%. | ||
| And again, economic pressure is the defining force in young people's lives. | ||
| There's nothing atypical about that. | ||
| That, of course, is true. | ||
| And so that requires us to ask if, in fact, young people do have it historically bad. | ||
| Now, by some measures, they do in terms of the percentage of income they're spending on housing. | ||
| That is way higher than it was, say, 40 years ago for their parents in 1980. | ||
| 1980 percentage of income spent on housing was lower than it is today. | ||
| And we can get into that in a moment. | ||
| But to pretend that unemployment rates are just gigantic among young people, particularly college graduates, would be to ignore the actual statistics. | ||
| The unemployment rate for new law school graduates, for example, like the more educated you are, the better chance that you're about to get a pretty good paying job. | ||
| That seems to be the pattern that has resulted in some pretty terrible college policy in which we seem to believe that if we artificially inflate the number of people who go to college, then we will also artificially inflate their career prospects, which, of course, is really, really silly. | ||
| It turns out that when you look at the bell curve of earnings, that bell curve remains, even if you take the entire bell curve and shift it up by two years in terms of years of education obtained. | ||
| By the statistics, the unemployment rate for new law graduates is somewhere between 4.5% and 5%. | ||
| For overall engineering graduates, that'd be like electrical, petroleum, mechanical, the overall employment rate is 0.9 to 2.3%, which is really, really low. | ||
| It's basically a 0% unemployment rate. | ||
| So those would be a lot of the jobs that are currently being ignored in favor of liberal arts majors, which again is one of the reasons why the government should not subsidize majors that are unlikely to earn out. | ||
| Computer science and computer engineering, that may be one area where AI is cutting in because AI is designed by engineers to replace engineers in many ways. | ||
| For medicine, there's 100% employment rate. | ||
| So there are certainly areas of the American economy where you can get a job. | ||
| Again, the unemployment rate today remains steady at 4.4%, and there's still well over 7 million unfilled jobs in the United States. | ||
| So one thing that is worth noting about the way that people perceive the lifestyle in America is largely location dependent. | ||
| You know, this is something that I've pointed out before, and I've gotten a lot of flack for it. | ||
| But living in Austin, Texas is not the same thing as living in New York. | ||
| That is just really true. | ||
| It is basically true. | ||
| And if you're looking, for example, at the price of housing and the elevated price of housing, it's very difficult to average the elevated price of housing between areas of the country that are more suburban or rural and big cities. | ||
| Big cities universally have gone way up because more Americans have moved to those cities and fewer Americans are moving away when the opportunity does not present itself. | ||
| This is why a few weeks ago, people seemed to get very uptight when I said, listen, there are things we can do in places like New York City to lower housing prices, create more affordability. | ||
| Those things are not rent freezes. | ||
| That is subsidizing building of new housing, getting rid of overregulation, making it much easier to cut through all the red tape. | ||
| All of that can be done. | ||
| But New York City is never going to be as affordable as Des Moines, Iowa. | ||
| It's just not going to happen. | ||
| New York is a restricted area in terms of the amount of land available. | ||
| It is much more expensive to build there. | ||
| There are many more people there. | ||
| And so, just again, supply and demand suggest that when demand is really, really, really sky high, like it is in big cities like LA, Chicago, New York, that the housing price is going to be higher than it is where demand is not nearly as high. | ||
| And none of this is a moral judgment. | ||
| It is just a fact. | ||
| And so, the point I made is: if you're a young person, if you're 20 years old, 21 years old, and you're struggling to afford a place in New York City and you can find a comparable job in Minnesota, you might want to think about moving because just for your own betterment of life, it might be worthwhile to consider not being in New York. | ||
| And this notion that you are owed the same level of affordability in New York as you are in Des Moines, Iowa or Minnesota or something, that's silly. | ||
| That is not how reality works. | ||
| I also wish for a pony that craps gold, but that's not actually how reality New York will never be as affordable as St. Petersburg, Florida. | ||
| It's just not going to happen. | ||
| And pretending that it is, well, I mean, that's a bad way to do life. | ||
| That doesn't mean we can't make political changes or that we shouldn't. | ||
| Of course, we should. | ||
| But one of the reasons that you're seeing unaffordability, particularly in major urban areas, is because of high demand and low supply. | ||
| Well, the high demand is part of that equation. | ||
| And it is true that the myth that young people have been sold that they never need to move at any point, especially when they are young, before they have kids, when they are first getting out in the world, that's had a real impact in terms of public policy and in terms of pricing. | ||
| And all these factors have to be taken into account when we determine why things are unaffordable. | ||
| Because the question is why things are unaffordable, not whether it is moral for things to be unaffordable or not unaffordable. | ||
| Okay, why are things unaffordable? | ||
| Well, one reason is because, according to our sponsors at Comet, a project of perplexity, I asked: are 21-year-olds moving less today in the United States than they did in 1980? | ||
| And is that creating upward pressure on housing prices and downward pressure on wages in major cities? | ||
| And the answer is: yes, residential mobility among young adults has fallen substantially since 1980. | ||
| And this reduced movement is one factor among several that can raise housing costs in thriving cities that its effect on wages is more complex and not uniformly downward. | ||
| Data from the current population survey and related research shows a broad long-run decline in U.S. residential mobility since the 1980s. | ||
| In the 1980s, about 20% of Americans moved every year. | ||
| By 2018, 2019, only about 10% did, with especially steep drops among young adults and in short-distance moves. | ||
| So, what is the effect on housing prices? | ||
| Lower mobility can reduce the flow of people from high-cost, opportunity-rich metros to cheaper areas, keeping demand high in superstar cities, while supply is constrained by zoning and other limits, which tends to push up prices and rents. | ||
| One of the things that happens in overcrowded cities is NIMBYism. | ||
| People don't want a gigantic apartment building going up right next door to them in major cities sometimes. | ||
| They don't want a gigantic block that is filled with cheaper housing going up right next to where they live, may lower their real estate values. | ||
| And so, they vote to stop all of that. | ||
| And these are political reality. | ||
| Now, you can try to ban those sorts of regulations and stop those sorts of regulations, and that would be good. | ||
| But is that going to solve the problem? | ||
| Obviously, it's not, which is why you've seen mass population movement from North to South. | ||
| It's why you've seen in migration to popular regions like the Sunbelt, according to Comet. | ||
| Now, again, standard economic theory predicts that more workers moving into a city should put downward pressure on wages there unless local productivity or demand rises enough to offset the larger labor supply. | ||
| So, this is the other problem: if you have a lot of people who are in a city and you have more people moving to that city, that is creating more demand for housing and it is going to mean less available supply of jobs, right? | ||
| Because you have more people who are seeking the same job. | ||
| That creates competition for the jobs, which means that the wages tend to be lower. | ||
| So, this would explain some of the affordability dislocation. | ||
| And in fact, when you ask Comet, what percentage of the American population lived in major metros in 1980 compared to today, in 1980, roughly three quarters of Americans lived in major metros. | ||
| Today, it is closer to mid-80%. | ||
| According to the Census Bureau, about 76% of the U.S. population lived in metro areas in 1980, which meant that a quarter of Americans did not. | ||
| Okay, so that meant less upward pressure in these major cities. | ||
| As of 2024, non-metropolitan counties held 14% of the U.S. population, implying that 86% live in metro areas under current federal definitions. | ||
| So more and more people have been moving to these cities and fewer and fewer people are leaving. | ||
| So again, none of this is inexplicable. | ||
| It does mean that how do you solve some of this stuff? | ||
| Well, number one would be you need to get rid of subsidies that lie to people because subsidies that pretend that affordability can be achieved simply through signing people checks. | ||
| When government checks go into an area, affordability is usually not the result. | ||
| Inflation is usually the result in cost. | ||
| That is true in education. | ||
| It is true as housing. | ||
| It is true in healthcare. | ||
| It is true everywhere. | ||
| And so government solutions are not going to be the ones that actually fix this. | ||
| The best the government can do is get out of the way and let the markets fix it themselves. | ||
| Alrighty, coming up, what exactly can President Trump do to fix the perception that the economy is on the ropes? | ||
| We'll get to that in a moment. | ||
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| So what exactly can President Trump do? | ||
| The Trump team is trying to get him to focus in on affordability concerns. | ||
| According to the Wall Street Journal, just before President Trump left the White House for Thanksgiving, top aides met with him in his private dining room to discuss inflation and the economy in hopes he would calibrate his message on affordability. | ||
| In another meeting last month, this time in the Oval Office, AIDS presented Trump with surveys from one of the president's own pollsters detailing voters' concerns about cost of living. | ||
| His team has begun showing him social media posts that illustrate how Americans view the economy. | ||
| Top aides have taken turns talking to their boss about his economic messaging and the need to emphasize what voters are feeling. | ||
| Almost every senior White House official is involved in this effort. | ||
| So far, Trump has largely avoided any I feel your pain messaging telling AIDS the economy is strong. | ||
| I mean, again, this is one area where I have serious empathy for the presidents of the United States. | ||
| As a facts, not feelings guy, I get the aversion to saying, yes, all your concerns are totally justified. | ||
| And I understand why people feel things are unaffordable. | ||
| Also, there are decisions that people can make in some circumstances in order to make things less unaffordable. | ||
| And when Trump looks at the broad-scale federal economy, he's thinking to himself, what are the things I'm supposed to do that I am not currently doing? | ||
| He has dismissed Washington's focus on affordability as a trap set by Democrats, intent on papering over the administration's economic achievements. | ||
| In many private conversations, Trump has argued former President Biden was responsible for inflation, not him. | ||
| And again, I have nothing but sympathy for the president on this. | ||
| He is right about this. | ||
| He's right about this. | ||
| So how do you solve all that? | ||
| Well, one thing could be to present a plan. | ||
| Okay, so what exactly should that plan be? | ||
| Well, part of that plan should be making clear to the American people where the jobs are, where the opportunity is. | ||
| So if you're going to talk about subsidizing people to do things, perhaps the administration should consider the possibility of helping to subsidize people moving from more expensive areas to less expensive areas where the jobs are, or continuing to facilitate through federal regulation tax breaks for moving from a high-tax area to a low-tax area, or from a more unaffordable place to a less unaffordable place, to a more affordable place. | ||
| Those might be some things that we could think about doing. | ||
| However, the easiest political path is always to find an enemy and then club him with a bat. | ||
| And the president seems to have settled on the idea that there is food price fixing, and that's why all of this is happening. | ||
| Now, this is, again, just a variation on a theme that Joe Biden tried. | ||
| Joe Biden tried this. | ||
| He tried to say that prices were really high because of evil corporate greed and collusion. | ||
| And it wasn't true. | ||
| This notion that what is happening at the grocery store level is anti-competitive behavior in the food supply chain. | ||
| There may be particular areas in the food supply chain where that is true. | ||
| With that said, is going after those companies going to somehow lower the food prices? | ||
| It'll be interesting to see. | ||
| I mean, one way you can lower the food prices, presumably, is to get rid of some of the tariffs on some of the food prices. | ||
| We've already done that on things like coffee and bananas. | ||
| But again, the disconnect between the statistics on the economy and how people feel about the economy, a large part of that is attributable to not only media coverage, which of course is very anti-Trump, but also it is attributable to the fact that there is an economic hangover from the Biden administration that is very real. | ||
| And now Trump's been the president for a year. | ||
| So you own whatever is happening now, even though it was really embedded from a year ago. | ||
| And also the fact that a huge percentage of people are now living in major metro areas. | ||
| And those areas are, in fact, more unaffordable than other outlying and surrounding areas. | ||
| And people are moving less because they've been told over and over and over again that it should be somehow affordable and, in fact, thriving to live in New York City when you are 21. | ||
| And you see, people are 21 comparing themselves to people who are 50. | ||
| Why don't I live the life that my father, my grandfather lived? | ||
| Well, you are living a better life than your father or grandfather did at the same age. | ||
| But you're not living a better life than your grandfather does now because your grandfather is 70 and he's been in the workforce for the last half century. | ||
| Well, one thing that the Trump administration is doing with regard to the economy, aside from talking about the stock market success and the unemployment rate, one thing that they are doing is redirecting away from that and toward the crime issue. | ||
| So another horrific crime happened in Charlotte, North Carolina. | ||
| Yesterday, there's a very fraught Senate race for Republicans that is happening in the next election cycle. | ||
| That is an open seat because Tom tell us the Republican senator is stepping down and Michael Watley is running against Roy Cooper in that seat. | ||
| That is going to be an extraordinarily expensive race. | ||
| If Republicans lose the North Carolina Senate seat, that takes them down to 52. | ||
| It's also a decent bellwether for what happens in 2028 because if Republicans are losing North Carolina across the board, that's a real problem for whomever is the nominee in 2028. | ||
| And so Charlotte, North Carolina is sort of epicenter of purple politics right now. | ||
| According to the Daily Wire, a twice-deported illegal immigrant with a rap sheet allegedly brutally stabbed a man on a Charlotte, North Carolina train. | ||
| Honduran illegal immigrant Oscar Gerardo Salazarno Garcia is accused of stabbing a man with a large fixed-blade knife on the light rail on Friday, leaving him in critical condition. | ||
| He was first deported from the United States March 9th, 2018, before he crossed the border illegally again, and then was removed again in 2021, according to the Department of Homeland Security. | ||
| He then sneaked back in undetected for a third time on an unknown date. | ||
| He was previously arrested for aggravated battery with a deadly weapon, destroying evidence, resisting arrest, using a false ID. | ||
| He also has convictions for robbery and illegal reentry. | ||
| Homeland Security Secretary Christy Noam called it a heinous attack, saying her agency has taken action to ensure he faces justice. | ||
| Noam said that ICE lodged an arrest detainer to ensure that this particular stabber is not released back into North Carolina neighborhoods. | ||
| But she said, we cannot guarantee the country will honor the detainer since they have a history of not cooperating with ICE. | ||
| Both President Trump and the Transportation Secretary Sean Duffy commented on the incident. | ||
| President Trump put out on Truth Social a statement, another stabbing by an illegal migrant in Charlotte, North Carolina. | ||
| What's going on in Charlotte? | ||
| Democrats are destroying it like everything else, piece by piece. | ||
| Meanwhile, over in Los Angeles, we were told, you remember, that ICE raids in MacArthur Park were terrible. | ||
| We should not have any immigration authorities over in MacArthur Park, which is not one of the nicer areas of Los Angeles, MacArthur Park. | ||
| Well, it has become a drug-ridden, terrible place to be, MacArthur Park. | ||
| Not a shock. | ||
| Here, here is some of the video from the New York Post. | ||
| So you can see, I mean, these are people just shooting up in the open air. | ||
| It's horrifying. | ||
| This kind of stuff is just horrifying. | ||
| People sitting on the seat in rows. | ||
| An occasional arrest. | ||
| Leaving the ground littered with used needles, people who may be sleeping or dead, just on the sidewalks. | ||
| So that way, we have the bodily. | ||
| Remember, the federal government was ripped up and down under President Trump for the great crime of sending federal agents into MacArthur Park, which we were told is a place kids play. | ||
| I used to live in L.A. You generally don't send your kids unaccompanied to MacArthur Park. | ||
| That is not a real thing. | ||
| According to the New York Post, MacArthur Park has erupted into LA's Fentanyl Ground Zero, a collapse and chaos-soaked war zone where overdoses hit by the hour. | ||
| People die daily. | ||
| Crime crews corner the market. | ||
| And what used to be a neighborhood park now teeters on the brink of total collapse. | ||
| The park, the largest green space in the district, now hosts an unknown number of unhoused people. | ||
| That's homeless, though on most days, it's fair to estimate the population in the hundreds. | ||
| MacArthur's unofficial residents are made comfortable by groups handing out food and even free crack pipes as part of safe smoking kits. | ||
| So there's no such thing as safely smoking crack, but the idea is you won't get AIDS. | ||
| With tens of millions of dollars coming from the city to support the park's inhabitants. | ||
| Along a narrow street, residents called Fentanyl Alley. | ||
| Dead rats lie underfoot. | ||
| People are passed out in the open. | ||
| Fentanyl-fueled and dangerous. | ||
| A notorious stretch locals say is among the park's most perilous. | ||
| Again, it is turned into a complete disaster area under the auspices of a Democratic administration in Los Angeles. | ||
| And yes, under Governor Gavin Newsom. | ||
| Meanwhile, over in New York, Zorhan Mamdani says that he is going to end homeless camp sweeps, which, of course, is going to make the city significantly more unlivable. | ||
| According to Michael Goodwin, writing for the New York Post, the new mayor inadvertently revealed he has learned nothing about homelessness when he announced on Thursday his administration will not dismantle the fetid camps springing up around the city. | ||
| The reason he claimed is that Mayor Adams' policy of removing the camps lacks compassion and has not led to the people involved being placed into permanent housing with appropriate social services. | ||
| Mamdani said, if you're not connecting homeless New Yorkers to the housing they so desperately need, you cannot deem anything you're doing to be a success. | ||
| And then he said, whether it's supportive housing, whether it's rental housing, whatever kind of housing it is, because what we've seen is the treatment of homelessness as if it is a natural part of living in the city, when in fact it's more often a reflection of a political choice being made. | ||
| Well, it is a reflection of a political choice being made, a choice to let people sleep out in the open, do drugs in the open, and live in their own filth. | ||
| I mean, I used to live in L.A., I watched the homeless problem take over the entire city. | ||
| Apparently, Zorhan Mamdani wants to do that in New York as well. | ||
| These local governance issues are going to be a major issue come 2026 and 2028. | ||
| Meanwhile, controversy continues over the immigration situation with regard to Somali Americans in Minnesota. | ||
| All of this, of course, is tied into Joe Biden's radical open borders policy. | ||
| And that is tied into stories like the story that we just saw in Charlotte, where people are repeatedly crossing the border over and over and then committing crimes. | ||
| According to the New York Times, in the weeks after Joe Biden was elected president, advisors delivered a warning his approach to immigration could prove disastrous. | ||
| By the way, I do find it hilarious that these stories are now being reported in December 2025. | ||
| So if this was happening four years ago, four and a half years ago, shouldn't we have been told that the immigration problem was an actual problem four and a half years ago by places like the New York Times at a higher pitch than they were doing at the very least? | ||
| Biden has pledged to treat unauthorized immigrants more humanely than Trump, but Biden was now president-elect. | ||
| His positions threatened to drastically increase border crossings. | ||
| Experts advising his transition team warned in a Zoom briefing in the final weeks of 2020, according to people with direct knowledge of that briefing. | ||
| That jump, they said, could provoke a political crisis. | ||
| Chaos was the word the advisors had used in a memo during the campaign. | ||
| They offered a range of options to avert that crisis by better deterring migrants. | ||
| Biden seemed to grasp the risk, but he and his top aides failed to act on those recommendations. | ||
| A New York Times examination of Biden's record found that he and his closest advisors repeatedly rebuffed recommendations that could have addressed the border crisis faster and eased what became a potent issue for Trump as he saw its return to the White House and justify the aggressive tactics roiling American cities today. | ||
| Former Biden administration officials told the Times that Biden and his close circle of confidence, including Ron Clain, Mike Donnellin, Jennifer O'Malley-Dillon, and Anita Dunn, made two crucial errors. | ||
| First, they underestimated the scale of migration that was coming. | ||
| Second, they failed to appreciate the political reaction to that migration, believing that stronger enforcement would alienate Latino and progressive voters, and that a border surge would not be an important issue to most voters. | ||
| And of course, that turned out not to be true at all at all. | ||
| Well, the consequences of open borders policy have been disastrous, obviously. | ||
| And the most obvious iteration of a gigantic open borders policy is not merely the number of illegal immigrants in the country, generally speaking. | ||
| It is enclaves of immigrants who also came here legally through the expansion of the definition of asylum and refuge to include hundreds of thousands of Somali immigrants living in the United States. | ||
| This has broken out into the open, obviously, in the aftermath of this $1 billion welfare fraud that encompassed a wide variety of members of the Somali community in Minnesota. | ||
| The media have chosen to take one angle. | ||
| Their angle is that it's racist to notice this. | ||
| It's terrible to notice this. | ||
| So, for example, here was CNN's Dana Bash going after the president's immigration watchdog, Tom Homan, on Somali Americans. | ||
|
unidentified
|
Are ICE agents stopping people because they look, quote-unquote, Somali? | |
| No, they're not. | ||
| You know, the law requires agents are trained in Fourth Amendment training every six months. | ||
| Board of Patrols trained Fourth Amendment training. | ||
| They stop. | ||
| You can detain and question people for a short period of time based on a reasonable suspicion. | ||
|
unidentified
|
And what is that suspicion? | |
| Is it based on how they look? | ||
| No, their appearance alone can't raise reasonable suspicion. | ||
| It's articulable facts, a lot of different facts taken into consideration. | ||
| And the Supreme Court just backed the Trump administration up on this. | ||
| I know a lot of the media said, oh, the Supreme Court just justified racial profiling. | ||
| That's not what the Supreme Court said. | ||
| Supreme Court said they agree with the way these operations are being conducted because the standard of reasonable suspicion is being used by both ICE and the Board of Patrol in the interior operations. | ||
| Again, the basic idea here is going to be, apparently, that it is very bad for Homeland Security to try and track down illegal Somali immigrants because it must be race-based, as opposed to the fact that there are, in fact, illegal Somali immigrants living in Minnesota. | ||
| I mean, this is a point that Homan is making to Dana Bash. | ||
| He says, listen, there is a large illegal Somali community in Minnesota. | ||
| There's an illegal alien community, a large illegal alien community there. | ||
| Look, if you're a U.S. citizen, you know, you have nothing to fear. | ||
| We're looking for criminal aliens. | ||
| And also, if you're a resident alien, you have a felony conviction by statute, you could be set up for deportation. | ||
| So we're looking for public safety threats, national security threats, and illegal aliens. | ||
| Nothing's changed, Dana, from day one. | ||
| Okay, so, I mean, he is right about that. | ||
| Meanwhile, the administration is saying, listen, Minnesota, if you don't fix your Medicare fraud problem, you're going to lose your Medicaid funding. | ||
| Why should the American taxpayer have to subsidize your state fraud? | ||
|
unidentified
|
Either fix this in 60 days or start looking under your couch for spare change because we are done putting the bill for your incompetence. | |
| This administration will never stop fighting to protect the vulnerable Americans who rely on these programs and the taxpayers who fund them. | ||
| We're going to crush waste, fraud, and abuse. | ||
| And that is Dr. Mehmet Oz, who, of course, is presiding over CMS, which is the service that has to determine whether, in fact, waste, fraud, and abuse are happening inside Medicaid. | ||
| And again, apparently, the left-wing response to this is not to call out the fraud or to fight the fraud. | ||
| It's to call anybody who notices it racist. | ||
| So here, for example, is a host on MS Now asking Keith Ellison if they'll arrest ICE agents. | ||
| Should the police officers be, I guess, arresting ICE who they feel are doing it using excessive force? | ||
|
unidentified
|
Look, the police chief, Brian O'Hara, great man, by the way, is well able to speak for himself. | |
| But I think what he's hoping is to prevent. | ||
| This is why he's making the comment now so that it doesn't ever come to that. | ||
| So that one, ICE agents will observe the requirements of the law and that officer and that they will know that we're not going to stand by and let them break the law. | ||
| Okay, it's unbelievable. | ||
| You got Keith Ellison, that's the state attorney general in Minnesota, claiming that ICE is going to be held accountable to the law while he presided over a state that allowed $1 billion in welfare fraud from a Somali community allied with, wait for it, Keith Ellison, Ilhan Omar, whose district this took place in. | ||
| She, of course, is very upset with the presidents of the United States for noticing. | ||
| So she went after Stephen Miller, who is the immigration advisor, the top immigration advisor for President Trump, calling Stephen Miller, who happens to be Jewish, a Nazi. | ||
| When I think about Stephen Miller and his white supremacist rhetoric, it reminds me, yes, it reminds me of the way the Nazis described Jewish people in Germany. | ||
| And, you know, as we know, there have been many immigrants who've tried to come to the United States, who've turned back, you know, one of them being Jewish immigrants. | ||
| Listening to this woman gallivant around talking about the plight of Jewish immigrants to the United States during the Holocaust as a supporter in rhetoric of Hamas, Hezbollah, and every other terrorist group attempting to exterminate Jews all over the world. | ||
| It's a little rich. | ||
| Is this going to be a winning play for Democrats? | ||
| I think not. | ||
| There's a reason why the administration is focused in on crime and illegal immigration. | ||
| Those are winning issues for them. | ||
| And they have to wait for the American people, presumably, to get used to the new level of inflation that is just a part of our lives now. | ||
| Meanwhile, the president is apparently unhappy with Christy Noam. | ||
| According to the bulwark, two unnamed former DHS officials who served under both Biden and Trump say that Trump is indeed considering moving on from Christy Noam potentially really soon. | ||
| A third ex-DHS official who served under both described the situation as fluid. | ||
| Now, of course, this could be nonsense. | ||
| You have unnamed officials who served under both Biden and Trump, meaning they're not Trump loyalists. | ||
| So they could be attempting to undermine Trump by attacking Christy Noam. | ||
| Apparently, Trump personally likes Noam, but a lot of White House officials are frustrated with her leadership, specifically her employment of chief advisor Corey Lewandowski, who, according to sort of most reports, is allegedly her boyfriend. | ||
| A big-name Republican could theoretically replace her. | ||
| I think it is unlikely that Christy Noam goes, but it doesn't mean that it's totally impossible. | ||
| The other official who supposedly was on the hot seat, but who actually is not, is the Secretary of War, Pete Hegseth. | ||
| So Hegseth over the weekend did an interview in which he talked about the fact that the Washington Post had promoted a false story, which is that he literally argued in favor of a double-tap strike on people who are just floating around in the water. | ||
| That report was basically debunked by the New York Times. | ||
| Here was Secretary of War Pete Hegseth at the Reagan National Defense Forum. | ||
|
unidentified
|
Did you at any time say that everybody on board should be killed? | |
| Does anybody hear from the Washington Post? | ||
| I don't know where you get your sources, but they suck. | ||
| Of course not. | ||
| Anybody that's been in the situation room or they've been in the war room there, Secretary's office, know you don't walk in and say, kill them. | ||
| It's just patently ridiculous. | ||
| It's meant to create a cartoon of me and the decisions that we make and how we make them. | ||
| Just ridiculous. | ||
| So, again, he is openly denying that report. | ||
| He said, we're tracking narco-terrorists and killing them. | ||
| The thing that I think most Americans who follow the news very closely need to understand about how all Americans follow the news is that people get a gestalt sense of the news. | ||
| What that means is that they have sort of an overall picture of the things that are happening without following the details. | ||
| So, well, everybody who is nitty-gritty involved in the grime and details of politics is very focused in on who said what and when and when was the order given. | ||
| Most Americans are going to take away Pete Hegseth wants to kill narco-terrorists trying to ship fentanyl and cocaine into America, and people opposing him don't want him to do that. | ||
| I mean, that's a win for Hegseth. | ||
| Just is on a PR level. | ||
| The days in which these narco-terrorists, designated terror organizations, operate freely in our hemisphere are over. | ||
| These narco-terrorists are the al-Qaeda of our hemisphere, and we are hunting them with the same sophistication and precision that we hunted Al-Qaeda. | ||
| We are tracking them. | ||
| We are killing them. | ||
| And we will keep killing them so long as they are poisoning our people with narcotics so lethal that they're tantamount to chemical weapons. | ||
| So, again, it's going to be very tough for Democrats to argue against this, but Trump and his entire administration have the magical gift of being able to get Democrats to defend literally anything up to and including narco-trafficking. | ||
| Adam Schiff, who you'll recall from his ridiculous Russia gate nonsense for years on end, he says that the strikes on these boats are unconstitutional and morally repugnant. | ||
| I would actually say that they're trying to ship drugs into the United States would be more morally repugnant if we're going to try to put a marker on it, but okay. | ||
|
unidentified
|
Based on what you know, do you believe these boat strikes are legal? | |
| No, I don't. | ||
| They're unlawful, they're unconstitutional, and killing two people who are shipwrecked at sea is also morally repugnant. | ||
| I agree with Tom. | ||
| We should do everything lawfully that we can to stop the scourge of drugs coming into this country, but this is not at all lawful or constitutional. | ||
| And frankly, if the Pentagon and our defense secretary are so proud of what they're doing, let the American people see that video. | ||
| Well, again, you want to do this? | ||
| You want to play this game? | ||
| All right. | ||
| Tom Cotton, the senator from Arkansas, he properly says, listen, if there's a boat loaded with drugs to kill Americans, it's a valid target and we should blow it out of the water. | ||
| Any boat loaded with drugs that is crewed by associates and members of foreign terrorist organizations that are trying to kill American kids, I think is a valid target. | ||
| I'm not just comfortable with it. | ||
| I want to continue it. | ||
| Okay. | ||
| So again, that is on the good side of the Trump administration PR ledger. | ||
| On the bad side, the Trump administration's use of the pardon power has been exorbitant. | ||
| The Trump administration, of course, has now pardoned an ex-Honduran president who was charged with major narco-trafficking. | ||
| And this, again, is going to be an awkward situation for Republicans trying to defend. | ||
| Here is George Stephanopoulos over the weekend grilling Senator Eric Schmidt of Missouri on Trump's drug pardon. | ||
| And there's not a great answer for this, unfortunately. | ||
| What do you mean you're not familiar with the facts and circumstances of the pardon? | ||
| It's been well reported all across the country. | ||
| He's the former president of Honduras. | ||
| He was convicted of conspiring to bring in 400 tons of cocaine into the United States, also guns and other materials. | ||
| It's been front page news across the country. | ||
| Aren't you curious about that? | ||
| Well, I'm curious about your pushback on that particular point. | ||
| With your previous guest, you had zero pushback because he's giving the Democrat talking points like you spew every single week, which is probably why your ratings are so bad. | ||
| But to make the point, what I'm saying is that you're trying to divert here the attention from what the American people actually support. | ||
| So again, it's going to be hard for Republicans to defend that. | ||
| I mean, if the best that we can do is just slapping George Stephanopoulos, I mean, it's fine, but I'm not sure that it's going to do the work. | ||
| Meanwhile, another pardon of Trump's has now gone awry, according to MediaITE in a blistering post to Truth Social early on Sunday. | ||
| The president has now bashed Representative Henry Quear of Texas for announcing his intent to run for re-election as a Democrat after receiving a pardon from the president, who's facing charges for allegedly taking over $600,000 in foreign bribes. | ||
| His wife was also charged. | ||
| So Trump wrote, Can you imagine? | ||
| The Democrats, under the crooked Joe Biden administration, who always use extreme force and jail time to destroy their political opponent, wanted to put Congressman Henry Quayar and his wife, Imelda, in prison for 15 years, which I predicted these radical left lunatics would do. | ||
| And they never stopped wanting to fulfill this evil quest. | ||
| The Dems mercilessly went after Henry with everything they had. | ||
| They were looking to destroy him, his lovely wife, his two young daughters, and anyone close to them. | ||
| When the Democrats overwhelmingly lost the 2024 presidential election and power with it, they regardless did everything they could to keep going after the Queer family. | ||
| The Dems were vicious and all because Henry strongly wanted, correctly, border security. | ||
| But Trump has now changed his tune. | ||
| Quote, only a short time after signing the pardon, Congressman Henry Queyar announced that he will be running for Congress again in the great state of Texas, a state where I received the highest number of votes ever recorded as a Democrat, continuing to work with the same radical left scum that just weeks before wanted him and his wife to spend the rest of their lives in prison and probably still do. | ||
| Such a lack of loyalty, something that Texas voters and Henry's daughters will not like. | ||
| Oh, well, next time, no more Mr. Nice Guy. | ||
| So I do not love the pardon power. | ||
| It is not my favorite part of the Constitution. | ||
| It is typically misused by members of both parties, and this one seems like a giant fail. | ||
| Okay, meanwhile, in meaningless news, the Trump administration has secured the World Cup for the United States. | ||
| And this means it was time for President Trump to receive an award from FIFA. | ||
| I mean, listen, I'm glad that the World Cup is coming to the United States, though I have no great adherence to soccer at all. | ||
| Nonetheless, the president was joined by FIFA president Gianni Infantino for the World Cup draw at the Kennedy Center. | ||
| And there, Trump was given a prize, which I have to say, this is quite an ugly trophy. | ||
| I mean, really, really an ugly trophy. | ||
| Like, I have a bizarre sort of predilection for hideous trophies and hideous statues. | ||
| My favorite is of a soccer player, Ronaldo. | ||
| It is one of my favorite things in the world: a horrible statue of Ronaldo that does not appear to be him. | ||
| It appears to be some sort of bizarro Superman version of Ronaldo. | ||
| Anyway, here was Trump receiving this award, which appears to be a set of human hands springing from the bowels of hell and holding up the globe. | ||
| It is not. | ||
| Yeah. | ||
| Anyway, here it was. | ||
|
unidentified
|
Mr. President, this is your prize. | |
| This is your peace prize. | ||
| There is also a beautiful medal for you that you can wear everywhere you want to go. | ||
| And I'm wearing it right now. | ||
| Okay. | ||
| Let me hold. | ||
| Fantastic. | ||
| Excellent. | ||
| So President Trump gets that prize. | ||
| And then he said, I think the worst thing he's ever said as president. | ||
| He said, it's time to rename American football. | ||
| No, no. | ||
| This, this right here, this is the globalist cuck agenda. | ||
| There will be no renaming of American football. | ||
| Sure, it makes no sense that football is called football since we mostly use our hands in football. | ||
| Nonetheless, this is ground that we will not seed as Americans. | ||
| Under no circumstances, we will rename the sport with the oblong object that we throw from football. | ||
| We're not doing that. | ||
| And you all over the world keep calling soccer football because it's a sport that you play with your feet. | ||
| It is literally a ball that you kick with your feet and thus is called football. | ||
| We're not bowing to you. | ||
| We won't. | ||
| Just as the metric system makes far more sense than the system of measurement we use, but we will never bow because Anglo-American power. | ||
| Here, this is just American power. | ||
| We're not doing it. | ||
| So, President Trump, I love President Trump, but I got to say, this is one of the worst things he said as president right here. | ||
| When you look at what has happened to football in the United States, it's again soccer in the United States. | ||
| We seem to never call it that because we have a little bit of a conflict with another thing that's called football. | ||
| But when you think about it, shouldn't it really be called? | ||
| I mean, this is football, there's no question about it. | ||
| We have to come up with another name for this. | ||
|
unidentified
|
Yeah. | |
| Yeah. | ||
| It really doesn't make sense when you think about it. | ||
| Don't think about it. | ||
| America first, baby. | ||
| American football is called football, even though it doesn't make any sense because we're America. | ||
| That's all. | ||
| Artie, coming up, the Supreme Court is set to rule over the firing of executive branch officials by the Trump administration. | ||
| Is it constitutional? | ||
| Is it not? | ||
| What does it mean for the future of what Trump is trying to do first? | ||
| Remember, in order to watch, you have to be a member. | ||
| If you're not a member, become a member, use code Shapiro at checkout for two months free on L annual plans. | ||
| Click that link in the description and join us. | ||
|
unidentified
|
Oh, this is an illusion. | |
| An echo of a voice that has died. | ||
| and soon that echo will cease they say that merlin is mad They say he was a king in Dovid. | ||
| The son of a princess of lost Atlantis. | ||
| They say the future and the past are known to him. | ||
| That the fire and the wind tell him their secrets. | ||
| That the magic of the hillfolk and druids come forth at his easy command. | ||
| They say he slew hundreds. | ||
| Hundreds, do you hear? | ||
| That the world burned and trembled at his wrath. | ||
| The Merlin died long before you and I were born. | ||
| Merlin Emirus has returned to the land of the living. | ||
| Vortigen is gone. | ||
| Room is gone. | ||
| The Saxon is here. | ||
| Saxon Hengist has assembled the greatest war host ever seen in the island of the mighty. | ||
| And before the summer is through, he means to take the throne. | ||
| And he will have it. | ||
| If we are too busy squabbling amongst ourselves to take up arms against him, here is your hope: a king will arise to hold all Britain in his hand. | ||
| A high king who would be the wonder of the world. | ||
| You to a future of peace. | ||
| There'll be no peace in these lands till we are all dust. | ||
| Men of the island of the mighty, you stand together. | ||
| You stand as Britons. | ||
|
unidentified
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You stand as one. | |
| Great darkness is falling upon this land. | ||
| These brothers are our only hope to stand against it. | ||
| Not our only hope. | ||
| They say Merlin slew 70 men with his own hands. | ||
| I could say he slew 500. | ||
| No man is capable of such a thing. |
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