US Risk-Taking Culture Fuels Innovation -- At Societal Cost

Key Quotes

"I didn't get my shit together until I was 25 and I had a health scare in my family basically my mom got sick and it was very motivating for me and what do you know science says that the prefrontal cortex the gas on or the ceo of the brain for a man doesn't catch up to a woman's until the age of 25."

Scott Galloway explains that significant personal development and maturity, particularly for men, often occurs around age 25. He links this to the scientific understanding of brain development, specifically the prefrontal cortex, which is responsible for executive functions. Galloway suggests that external motivators, like a family health scare, can accelerate this process.

"What did help me was guardrails and I'll talk about three guardrails one I had things that forced me to get out of the house so in college I could have easily just smoked pot and listened to rem and lloyd cole and the commotions and the english beat which are awesome which are awesome and stayed in my fraternity room or just occasionally gone on campus but I joined crew and having to get up at 4 45 in the morning and having to push myself that hard and having the guardrails of a varsity sport was really helpful for me."

Galloway highlights the importance of "guardrails" in fostering discipline and motivation for young people. He uses his experience joining a college crew team as an example, where the strict schedule and physical demands of a varsity sport provided structure. This structure, he argues, prevented him from succumbing to distractions and encouraged personal growth.

"The US massively outperforms Canada in scale Canada needs about 55 more investment to produce a single big startup success and over the last decade US venture capital exits totaled 2.6 trillion compared to just 56 billion so about 40 or 50 times the outcomes of startups in the US and the US produced more than 4,000 exits over 10 million Canada had fewer than 200."

Scott Galloway presents data comparing the startup ecosystems of the US and Canada. He points out the significant disparity in venture capital investment and the number of successful startup exits, indicating the US has a much larger and more productive environment for new businesses. Galloway suggests this difference is tied to the US's greater willingness to take risks and its larger pool of available capital.

"America's a terrible place to be stupid the safety net here is basically a cement ground with spikes on it but your upside is kind of unlimited there's some other things to play I think I mean this is a multi dimensional issue so think about who came to the US they were people trying to escape religious persecution and they kept heading west and you know might have to eat their niece or nephew along the way and they got bogged down in the rockies and then what do you know the most innovative companies and the biggest exits in history are all on the west coast and so we have just a risk taking dna where people start crazy shit that sometimes ends up being crazy genius."

Galloway characterizes the American economic system as one with a harsh safety net but unlimited upside potential. He attributes this to a historical "risk-taking DNA" of immigrants who sought opportunity and were willing to endure significant hardship. Galloway believes this inherent drive for extreme success fuels innovation and leads to groundbreaking companies.

"The whole point of a members club is that you want to get into clubs that you shouldn't get into and that everyone there is more interesting richer or hotter than you um that's the whole point of a members club even so the money is real the private club market hit about 32 billion in 2024 and is on track to reach 59 billion in 2033 roughly 7 annual growth outpacing most of the hospitality industry."

Scott Galloway discusses the appeal and economic significance of private members' clubs. He explains that their core value proposition is exclusivity, offering a curated environment where members encounter individuals perceived as more successful or desirable. Galloway notes the substantial and growing market size of these clubs, indicating a strong demand for such exclusive social spaces.

"I do worry there aren't enough if I were going to start a I've been approached about starting members clubs I'm not interested in starting a members club I would consider starting a bar that was relatively inexpensive where people could just go and have a good time and have good music and it was reasonably priced because I think we need more third places for people."

Galloway expresses concern about the increasing exclusivity of social spaces, specifically private clubs. He believes there is a societal need for more accessible "third places"--locations outside of home and work where people can gather. Galloway suggests that inexpensive, well-curated bars or other public venues could fulfill this need, providing community without the barriers of membership fees or social stratification.