Scott Galloway

The U.K., 2.8.

Japan, 1.4.

And China, kind of our economic rival, their inflation...

1.2%.

And the problem is, is that most people don't understand the power of compounding.

So they hear 4.2 and they think, oh, that's nothing.

My mortgage is 6%.

My auto loan's 8%.

My interest rate on my credit card is 15%.

So just to do some math, if inflation were to stay like this and you had a baby,

When that kid was ready to go to college, and that may sound like a long way away, but trust me, it goes faster than you think.

You know, see above, they're indifferent when you fly all the fucking way home and miss the next game.

But anyway, all of a sudden, the tuition, if inflation were to just keep compounding the way it is now, and you had a baby, when that kid goes to, say,

USC with a tuition of $68,000.

That means tuition is going to be $136,000 if we in academia don't continue to raise tuition faster than inflation, which we've done for the last 40 years.

People have a tough time imagining anything in 18 years.

So let's just go out.

Your kid starts at USC as a freshman.

If inflation were to continue going at 4.4%, that means a new car, which usually costs $49,000, by the time they graduate from college, it would be $60,000.

People don't realize that this number may sound innocent.