This Businessman Thinks The Coming Economic Collapse Will Make People HAPPIER
Businessman Gary Vaynerchuk thinks we should worry about our own [expletive] before economic collapse wipes us out. He’s known for dominating new media and, before that, for making his father’s New Jersey wine business, Wine Library, a leading purveyor of wine’s on the country by hosting a YouTube show where he tasted wines alongside odd meal choices like a bowl of Fruit Loops.
“I am hoping and waiting for complete, global economic carnage so we can weed out the B and C and D players,” he says. “The truth should win. If you are a piece of [expletive], you should lose. If you’re not a good entrepreneur, you should have a job. Merit and the truth are always the truth in the macro.” He often talks about why he wants the economic meltdown to happen.
“God, do I want the world to melt, you know why? I want the world to melt because I want people to be happier. People are in fake environments. Everybody is living a fake life and keeping up with the Jones’, and when everything melts, not paying the piper in 2009 America for the economic melting, and going through seven years of a recession, and us [instead] propping it up, [expletived] our culture in a way that nobody talks about.”
He added: “I cannot wait for the economic meltdown because it is the beginning of happiness at a bigger scale.”
He sees the college debt bubble as crippling the economy, eventually. Vaynerchuk’s college, Mount Ida College, went out of business in 2018. It folded. After one hundred plus years, it simply no longer exists. This is a sign of changing economic paradigms, the entrepreneur says. He thinks the college debt will sink the U.S. economy.
While many people believe that colleges will be around forever, Vaynerchuk, who sometimes covers economic crisis on his blog, notes that in the 1950s college wasn’t a huge part of many people’s ambitions
When the economy collapses on the back of the college debt, everyone will blame “the racket of college.”
He says: “The brand will be so bad the conversation will change.”
He thinks that young people today will be the generation of parents who do not force their kids to go to college. He thinks college’s will be closing en masse by around 30 years from today.
“The top seventeen will be able to hold on a little bit longer just on brand, but the really good schools, the state schools, the upper middle, are very vulnerable.”
They simply won’t be in demand.
“No way,” he says.
They are lending money to kids in huge debt. “The banks are doing it again,” he said. “This time it’s not BS mortgages.”
There are young people with $180 debt on nine percent interest, making $47,000 per year and are buying expensive stuff or have a new apartment.
He sees today’s startup and entrepreneur culture as being significantly changed after the collapse, too. What happens when everything melts and there is no investor’s investing?
“This will all work better, because people are going to make smarter decisions, because they don’t have money to make bad decisions,” says Vaynerchuk. Money is so easy today to get, people don’t have to put in the right work, he says.
As businesses that self-funded themselves grow, they will have a distinct advantage over businesses that are overleveraged or that are dependent upon the next fundraising round. When the world melts, Vaynerchuk believes, his creative media agency, VaynerMedia, will be able to hire talent from all the other agencies for a quarter of the price they’re getting paid today, suggesting a pending collapse in wages.
As the overleveraged businesses go bankrupt, Vaynerchuk wants to buy them up. And then, when the economy turns back around twelve years later, he wants to sell those businesses and buy the Jets.h
He is “playing the reverse game,” he says. Those that think its stupid simply don’t understand everything is overvalued.
“If you want a BMW on money you don’t have, because you want to look good amongst your peer set, so they think you’ve made it, but you haven’t, you will lose.” Especially during this era where the market is really good.
“If you aren’t winning right now, you really [expletive] suck,” he said. “This is not 2001. This is not 2008.” Demand for most products decreases in an economic crisis, Vaynerchuck notes.
“You know how many less people buy water purification systems? Less people. You know how many people buy 4,000 cases of wine, like today at the Wine Library, when market collapses? Less people. You know how many people are buying homes? A lot less people.”
He says its “real life.”
He knows the good times won’t last forever. “I will not live the rest of my life in a bullish market and growth,” he says. “I can’t wait to air this content on the day the whole world melts.”
He says that is when the world will get “really weird.”
The businessman remembers the day the economy collapsed in 2008. That day he was in France buying wine. He got a call from a colleague who told them they had about $400,000 in pre-orders cancelled.
“I remember where I was,” he says. “I started buying less wine, than I did the first two days of the trip. First two days of the trip I was a big shot.” After that, he was a lot more discerning.
“Debt is awfully scary if your business doesn’t do well when the economy collapses,” he said. He says it’s been good for so long, many people need to rethink their strategy ahead of meltdown.
“Let’s actually be humble as [expletive], let’s just actually hoard cash. A million dollars in bank account today versus when the world melts, its worth like $4 million. I am sitting on cash, like I am an idiot, but I wont be at some point. It’s no different in a fifty year window. I don’t care if it takes another four years. I am building a machine that capitalizes on the other side.
Vayner believes in living extreme. “I am obsessed with extremes,” he says. “The middle is [expletived].”