Can Capitalism Solve Climate Change? Plus, The Right Way to Diversify

**SPEAKER_1** (0:01)
This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome, that's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required compatibility and availability varies 18 plus.

**SPEAKER_2** (0:27)
The FIFA World Cup is here and you can now feel the thrill of the pitch in FIFA World Cup Launch Edition on Netflix. A fast and fluid football game where your phone is the controller and the TV is the stadium. Play for your country in 16 different stadiums with up to four friends, all included in your membership. Scroll to the games tab on your TV and play FIFA World Cup Launch Edition now only on Netflix.

**SPEAKER_3** (0:55)
New summer arrivals are at Nordstrom Rack Stores now.
Get ready to save big with up to 60% off brands like Rag & Bone, Levi's, Adidas and Free People. Join the Nordy Club to unlock exclusive discounts, shop new arrivals first and more. Plus, buy online and pick up at your favorite rack store for free. Great brands, great prices. That's why you rack.

**Scott Galloway** (1:25)
Welcome to Office Hours at Prop G. This is the part of the show where we answer your questions about business, big tech, entrepreneurship, and whatever else is on your mind. If you'd like to submit a question for next time, you can send a voice recording to officehoursatpropgmedia.com. Again, that's officehoursatpropgmedia.com, or post your question on the Scott Galloway subreddit, and we just might feature it in our next episode. Let's bust into it.
Question 1 Our first question comes from Reddit, SaucyMan11, who says, Scott, I believe you once said that the world's first trillionaire would be an entrepreneur private sector company that helps the government address climate change. In fact, the world's first trillionaire is a walking, talking government subsidy who plans to make our species multi-planetary. It makes me wonder if capitalism and climate responsibility can truly coexist. What's your current prediction or feeling around climate mitigation, technology and importantly, capitalism's relationship to it at all?
It's an interesting question. So first off, with respect to the world's first trillionaire, I don't think he's going to be a trillionaire very long because I think that he's an amazing engineer and his greatest engineering feat was not landing a rock and on scissors, but working with Goldman, JP Morgan, and AI to engineer an IPO that exploded this thing beyond all reasonable or sustainable valuation. I don't care if he's a meme stock or the cult of Elon, that thing is not going to survive at a 100 times revenue or that valuation isn't going to survive. Now, and also part of the shtick was something related to sustainability and that is data centers in space, which I think every piece of analysis I look at, and every time I see the size of a data center and I remember the cost per kilogram to launch equipment and material into space, I think that is nothing more than the robovin or robots times a thousand, or we're going to have a million autonomous taxis within 12 months said Elon Musk, I think in 2016 or 2017 I think it's an absolute fever dream meant to see above, get the stock to 100 times valuation. Now, in terms of capitalism, climate change, I would argue in a weird way, the war in Iran is actually going to result in a more sustainable future with respect to climate change. Why?
I think nations all over the world have fired up their windmills and their solar panels, and the economics are taking over here. In any given moment during the summer, during the day, 60 percent of Texas' electricity is coming from wind power. That's right. Now, Texas isn't exactly Berkeley or sandaled Brooklynites looking to save the whales. It's because the economics of renewables are overtaking the economics or becoming more attractive than the economics of fossil fuels. And not only is there economic upside or incentives to invest in renewables, there is now a renewed sense of security needs that fall on renewables. And that is China, China wasn't really ever put in a corner by the blockage of the Strait of Hormuz because they have made such massive investments in renewables. And also stockpiled fossil fuels. But effectively as the largest producer of solar panels and windmills and batteries, they weren't panicked. And I think every nation in the world after seeing what happens when a nation, a rogue nation inspired by a war from the guy we used to trust, Uncle Sam, creates new urgency to figure out diversification away from fossil fuels. Just as the UAE is building a pipeline that bypasses the Strait of Hormuz, everyone or every nation in the world is thinking about how they bypass the Strait of Hormuz with their own native renewable technology. I think you're about to see a firing up again or renewed focus on renewables, which I think is ultimately good for climate change and sustainability. And it's being inspired by what is effectively Iran putting its boot on the carotid artery of 20% of the global flow of oil. People have decided, nations have decided, they don't want to be subject to the risk of the tumult in the Middle East, much less a sclerotic administration in the United States. So I think we're about to see an absolute tailwind or an afterburner around the investments required to create greater renewable technologies.