Welcome to the Minus One podcast, hosted by Adia Agarwal, partner at South Park Commons, joined by fellow partner John. The podcast explores pivotal moments in interesting people's lives where they faced the crucial question: "What's next?" - focusing on that decision point before launching at zero.

Today's guest is Kevin McCarthy, former Speaker of the US House of Representatives. McCarthy previously served as a Republican Congressman representing California's 20th District in the Central Valley near Bakersfield, House GOP Majority Leader under Speakers Boehner and Ryan, and House GOP Minority Leader under Speaker Pelosi before becoming Speaker of the House in 2023.

"Welcome to the minus one podcast where we ask the most interesting people in the world for times in their life where they had to answer a question we all eventually struggle with: what's next?"

Timestamp: [0:00-1:07]

The hosts dive right into the "minus one" concept - that critical moment where you figure out what's next, sometimes by choice and sometimes not. They note that McCarthy's departure from the Speakership in October 2023 was particularly relevant, as it marked the first time in U.S. history that a Speaker was ousted during a legislative session.

McCarthy directly attributes his removal to one specific congressman, Matt Gates, whom he claims had "an Ethics problem" involving a 17-year-old. McCarthy states that Gates attempted to leverage him to stop an ethics investigation, which McCarthy refused to do, resulting in his removal as Speaker. He notes that Democrats joined the effort, but suggests they did so for political reasons.

"There's one guy in the house, guy named Matt Gates, that has an Ethics problem because he slept with a 17-year-old... he tried to leverage me to stop the ethics investigation. I wouldn't do it, so I'm no longer speaker."

McCarthy reflects that this wasn't his first leadership challenge, recalling when he could have become Speaker after Boehner but "stumbled in an interview with Hannity." He observes that there's turmoil in both parties, with each major party containing "three or four parties within."

Despite these setbacks, McCarthy emphasizes his resilience, referencing Angela Duckworth's book "Grit" on perseverance. He highlights that he had to go "15 rounds" just to get elected Speaker initially - something not seen since the Civil War. He stands by his decision to vote to keep the government open and pay troops, saying he "wouldn't do anything different."

Timestamp: [1:07-3:47]

After being ousted as Speaker, McCarthy didn't make an immediate decision to leave Congress, instead staying for another four months while considering what would be best for the party, his district, and himself personally.

McCarthy explains that he didn't want to impede the new Speaker Mike Johnson's leadership. He noticed that when he spoke in conference meetings, "the whole conference would shift and go to what I wanted to do," which risked undermining Johnson's authority - similar to a former CEO still influencing company direction after a leadership change.

Personal factors weighed heavily in his decision. McCarthy, then 58, reflected on his father's death at the same age, considering "how many years do I have in life." This mortality awareness prompted him to reconsider his priorities and future.

"My father died at 58 so I thought how many years do I have in life... maybe I should depart."

Timing also played a crucial role in his departure. By leaving in January, he allowed someone else to fill his seat earlier due to California's primary schedule, giving his successor "a leg up." McCarthy reasoned that if he wanted to stay in politics, it wouldn't be in Congress but possibly in a future administration.

He also considered that his absence would allow the Republican conference to heal without him "being in the middle fixing them." McCarthy noted that his mother ended up dying in March 2023, making it "a great time to be away" as he had begun taking her on trips with him.

Timestamp: [3:47-7:30]

When discussing his future plans, McCarthy first references his background before entering Congress. He describes himself as "an entrepreneur in a small scale" with a BA in marketing and an MBA, suggesting a potential return to business.

McCarthy expresses that he's still weighing his options between returning to business, which he "always dreamt" of doing after politics, and continuing some form of public service, possibly in a future administration. He maintains that he still feels "responsibility to serve your government" even outside elected office.

The former Speaker then shifts to discussing his continuing interest in international affairs and security challenges. He shares his belief that "the world is in 1938" - drawing a historical parallel to the period before World War II. He references an article by Graham Allison and Henry Kissinger that notes it's been 79 years since a great war and since nuclear weapons were used, while highlighting current geopolitical tensions.

"I firmly believe there are macro problems and micro problems in America. The macro to me have always been our debt, the challenge of China... our education system, and none of those things could be solved on its own."

McCarthy identifies what he sees as America's major "macro problems": national debt, the challenge posed by China, and the education system. He notes his past efforts to address these issues, including creating the Select Committee on China, and suggests he wants to continue working in these policy areas.

Timestamp: [7:30-9:56]

Books:

• Grit by Angela Duckworth - McCarthy mentions this book about perseverance as something he loves and relates to his own resilience in politics
• Destined for War by Graham Allison - Referenced when discussing international relations and the potential for conflict with China

People:

• Matt Gates - Congressman McCarthy identifies as responsible for his removal as Speaker
• John Boehner - Former Speaker under whom McCarthy served as Majority Leader
• Paul Ryan - Former Speaker under whom McCarthy served as Majority Leader
• Nancy Pelosi - Former Speaker under whom McCarthy served as Minority Leader
• Mike Johnson - McCarthy's successor as Speaker of the House
• Sean Hannity - Fox News host with whom McCarthy had a problematic interview that derailed his first chance at becoming Speaker
• Graham Allison - Academic whose work on US-China relations McCarthy references
• Henry Kissinger - Former Secretary of State whose article with Graham Allison McCarthy mentions

Concepts:

• Motion to Vacate - The procedural mechanism used to remove McCarthy as Speaker
• Select Committee on China - Committee McCarthy created to address challenges posed by China

Timestamp: [0:00-9:56]

• McCarthy was ousted as Speaker after refusing to stop an ethics investigation into Rep. Matt Gates, marking the first time in U.S. history a Speaker was removed during a legislative session
• Modern political parties are fractured, with McCarthy noting "we don't just have two parties anymore we have like three or four parties within each party"
• Personal timing played a key role in McCarthy's decision to leave Congress - at 58, the same age his father died, he reconsidered his priorities and legacy
• Leadership transitions require space - McCarthy recognized his continuing influence could undermine the new Speaker, comparing it to a former CEO still running the company
• McCarthy views America's "macro problems" as the national debt, the challenge of China, and the education system - issues he believes cannot be solved in isolation
• McCarthy draws historical parallels between current geopolitical tensions and pre-World War II conditions, describing today's world as being "in 1938"
• Even after leaving elected office, McCarthy feels a responsibility to continue public service, potentially in a future administration
• McCarthy's business background (BA in marketing, MBA) remains important to his identity, potentially influencing his future career choices

Timestamp: [0:00-9:56]

McCarthy expresses his desire to continue working on issues he cares about, particularly emerging technologies and their global implications. He identifies artificial intelligence and quantum computing as critical areas, suggesting that whichever country "captures" these technologies will gain significant advantages.

He offers a comparative analysis of how different regions approach technological development: China will work hard on AI but never allow it to be too private or public due to government control concerns, while Europe tends toward overregulation.

"I believe whichever country... captures AI or Quantum has an advantage."

McCarthy emphasizes that he doesn't need to be elected or in administration to continue working on these issues. He believes he can leverage the connections and influence he's built throughout his career to "harness the power of what I've done by bringing people together and continue to move forward."

Beyond technology policy, McCarthy expresses his belief in capitalism as "a great form to spur economics not just for a few people to get wealthy but entire society." He also mentions his passion for inspiring college students and encouraging greater civic engagement across the political spectrum.

Despite being a Republican from a Democratic family, McCarthy stresses the importance of political participation regardless of party affiliation: "You could be in any party but I think people should engage in the political system. It's healthier when they do."

Timestamp: [10:02-11:58]

The hosts draw a comparison between Silicon Valley's celebration of failure as a "badge of honor" and the more public nature of political defeats. They ask McCarthy what entrepreneurs can learn from political failures that Silicon Valley might not fully appreciate.

McCarthy responds with a powerful mindset shift: "The first thing you have to learn is you never fail." He reframes the concept entirely, saying he's "either won or learned" but never lost. For McCarthy, political losses simply mean "the clock ran out," comparing it to sports where you might lose one weekend but still make it to the Super Bowl.

"I never lost a race. I've either won or I learned. The idea that you lost - all it means is the clock ran out."

McCarthy discusses creating the "Young Guns" program after Republicans lost the majority in 2006, when he entered Congress in "the smallest Republican class since 1913." He would recruit candidates who had previously lost races, challenging their perspective by telling them "the clock ran out" rather than accepting defeat.

He parallels this mindset to business, noting "you learn more from your struggles than you ever do from something being easy." McCarthy pushes back against those who define him by being the first speaker removed from office, countering with his accomplishments: winning the House majority when Republicans lost the presidency, Senate, governorships, and electing "the most women, the most minorities we've had."

McCarthy concludes that politics is similar to professional sports - both take place on a public stage with everyone watching and a visible "scoreboard." His message is clear: if you're afraid of risk or quit after one setback, you're not suited for either field.

Timestamp: [11:58-14:55]

The hosts raise a crucial question about institutional change: how can Congress improve when politicians are constrained by voters, primaries, general elections, and increasingly balkanized media ecosystems? They ask McCarthy what changes he would make to address how these constraints produce outcomes that voters say they don't want.

McCarthy's first recommendation is personal: eliminate the ability for a single person to call a motion to vacate - the very mechanism that led to his own removal as Speaker. This reflects his belief that "structure dictates behavior" - people either adapt to the system or leave it.

"Structure dictates behavior. You either adapt to the structure or you leave."

McCarthy then identifies a critical limitation in how Congress evaluates legislation: the 10-year budget window. He argues this short-term focus prevents solving major issues like national debt. Quoting Einstein, he notes, "There's only one miracle in this world - the time value of money, the compound of interest," pointing out that the same principle applies to debt.

He explains that some program changes might look problematic in the first decade but become sustainable over longer periods. McCarthy advocates for examining legislation through "50-year windows" rather than the current 10-year scoring system to better address long-term fiscal sustainability.

When pressed about whether political constraints would allow such reforms, especially regarding programs like Social Security, McCarthy contrasts today's environment with the Reagan-O'Neill era. He observes that social media has changed political incentives, with no editorial filters and rewards going to those who "vote no and yell" or "fight your leadership" to gain attention and fundraising advantages.

Timestamp: [14:55-18:19]

McCarthy emphasizes that major challenges like the national debt are "American problems" requiring both parties to work together. However, he acknowledges that outside influences and political pressures often derail bipartisan efforts once bills enter committee.

To illustrate how structural reforms can overcome these challenges, McCarthy points to the Base Realignment and Closure (BRAC) process as a successful model. After the Soviet Union collapsed in 1989-1990, America needed to restructure its military installations, but individual representatives would resist closing bases in their districts despite the national interest.

"How do you go to an elected official and say 'you know what, it's probably not best if we keep that base in your District' for overall America? Well, no one's going to make that vote because they're going to get in trouble."

The BRAC solution created a commission with appointees from all parties and the president. This commission established clear criteria for base closures, requiring more than a simple majority to approve recommendations. Crucially, when the commission reached a conclusion, it received a guaranteed floor vote with no amendments allowed.

"How do we create a structure of a very difficult issue to try to take the politics out of it?"

McCarthy notes that this structural approach produces bipartisan results "nine times out of ten" by removing the individual political consequences representatives face when making difficult but necessary decisions. The BRAC model demonstrates how procedural innovations can help overcome entrenched political incentives that typically prevent addressing complex national challenges.

Timestamp: [18:19-19:57]

Organizations & Programs:

• Young Guns - Republican recruitment program McCarthy created after 2006 to build the party's bench
• BRAC (Base Realignment and Closure) - Commission created to evaluate and close military bases after the Cold War in a politically feasible way

People:

• Ronald Reagan - Former President mentioned in context of Social Security reform
• Tip O'Neill - Former Democratic Speaker who worked with Reagan on Social Security reform
• Albert Einstein - Quoted regarding compound interest as "the only miracle in this world"

Historical Events:

• Soviet Union collapse (1989) - Referenced as creating the need for military restructuring
• Tiananmen Square (1989) - Mentioned alongside Soviet collapse as a pivotal event

Concepts:

• Motion to Vacate - The procedural mechanism McCarthy would eliminate that led to his removal
• 10-year budget window - Current congressional scoring mechanism McCarthy criticizes as too short-term
• Compound interest/compound debt - Principle McCarthy believes should guide longer-term policy thinking
• Structure dictates behavior - McCarthy's philosophy on institutional design

Timestamp: [10:02-19:57]

• McCarthy views emerging technologies like AI and quantum computing as crucial to national competitiveness, with differing approaches between China (government-controlled) and Europe (overregulated)
• McCarthy reframes political failure with a powerful mindset shift: "I never lost a race. I've either won or I learned" - viewing setbacks as merely the clock running out
• The "Young Guns" program McCarthy created demonstrates how recruiting candidates who previously lost races and changing their mindset about failure helped Republicans eventually regain the House majority
• McCarthy believes political leadership and entrepreneurship require similar resilience: "If you're afraid of risk, don't enter the field"
• Modern politics rewards conflict and opposition more than cooperation - McCarthy notes people "raise more money because if they vote no and yell" or "fight your leadership"
• McCarthy identifies the 10-year budget window as a structural barrier to solving long-term problems like national debt, advocating for 50-year scoring windows
• Social media has fundamentally changed political dynamics by removing editorial filters and creating new incentive structures that reward confrontation
• The BRAC (Base Realignment and Closure) commission provides a model for addressing politically difficult issues by creating structures that protect individual members from direct political consequences
• McCarthy believes major national challenges like debt require bipartisan solutions but acknowledges that outside influences and political pressures typically derail such efforts
• "Structure dictates behavior" - McCarthy's philosophy that institutional design shapes political outcomes more than individual intentions

Timestamp: [10:02-19:57]

McCarthy expresses concern about the rise of populism in both Republican and Democratic politics. He defines populism not as a principled approach but as "appeasing" and "making somebody happy" based on immediate feelings rather than long-term consequences.

"Populism - what's the principle behind populism? Well, there's really not one. It's appeasing, it's making somebody happy, it's what I feel right."

He presents a fundamental tension in representative democracy: should elected officials simply follow public opinion at all times, or should they exercise leadership even when it might be unpopular? McCarthy argues for the latter, suggesting that policymakers should "be the leader and explain it to them" rather than simply following polls.

McCarthy advocates for leaders who "look 50 years out" instead of making shortsighted decisions aimed at winning the next election. He uses the example of student loan forgiveness to illustrate his point: "I'm going to forgive all your loans that you said you'd pay back. Does that make you feel good? Could I get your vote today? But what does it do for tomorrow?"

He concludes with a stark warning about the current political climate, expressing that he's "fearful [populism] could create a real problem for America" if left unchecked. For McCarthy, the rise of populism represents a troubling shift away from principled, long-term policymaking toward immediate gratification politics.

Timestamp: [20:04-21:03]

When discussing leadership, McCarthy presents a choice he faced in his own career: "I could have stayed in Congress for 30 years, voted against everything, never rose up in leadership" versus taking risks to become Speaker. He draws a parallel to entrepreneurs who "put the whole business on the line and either hit it or they don't," noting that without taking risks, neither politicians nor business leaders achieve their potential.

McCarthy emphasizes the importance of respecting differing viewpoints in a healthy democracy, arguing that Americans need to learn not to "demonize them because they [think] differently." He acknowledges that people's perspectives are shaped by their backgrounds and experiences, making debate essential rather than dismissal.

"What we need to start teaching Americans, and not just in Congress, [is] that you respect the other person's opinion. You don't demonize them because they [think] differently."

He identifies a troubling pattern in contemporary American politics: people shifting their opinions based not on the content of ideas but on who presents them. McCarthy notes that the same policy proposal will be rejected by Democrats if attributed to Trump, or by Republicans if attributed to Biden, regardless of its actual merits.

"I think as a society we've got a problem that we need to deal with ourselves, and don't think that Congress is going to solve it for us."

McCarthy concludes that this tribal approach to politics reflects a deeper societal problem that won't be fixed through legislation alone. His observation suggests that the polarization in Congress mirrors a broader cultural challenge that requires citizens themselves to reconsider how they evaluate ideas beyond partisan affiliations.

Timestamp: [21:03-22:48]

The hosts connect McCarthy's experience to South Park Commons' mission of giving people space to navigate periods of uncertainty after major career transitions. They ask about his first week after leaving Congress and how he handled the emotional and psychological adjustment after having such a structured life.

McCarthy begins by acknowledging that "everybody's wired differently" and shares a key lesson from his political career: "When you're elected, you're always going to go through the barrel." He advises that anyone who "just wants to be liked" shouldn't run for office, comparing politics to sports where you literally get to know, down to the exact number on Election Day, how many people like and dislike you.

"If you just want to be liked, don't run for office."

McCarthy reveals a personal practice: whenever a politician from either party gets in trouble, he wants to be their first phone call - not to discuss what went wrong, but simply to assure them "things will be okay." He references Tom Hanks, who once said he wished someone had told him when he was struggling that "this too shall pass," but equally important, that the same applies during good times.

"I remember watching this one thing Tom Hanks said... he wished someone had told him when he was down and out, failing, 'This too shall pass.' He goes, 'I learned that, but I wish somebody told me that when I thought everything was going right - this too shall pass.'"

Despite the dramatic circumstances of his departure, McCarthy describes himself as "always the optimist" and wasn't sad the week he left office. He explains that he never thought "Congress defines my life," drawing parallels to entrepreneurs who move between different businesses. McCarthy adds that the more difficult emotional challenge was actually during his 15-round speaker election battle, which was uniquely stressful because "no one's done that in modern history with TV watching" and without an existing speaker, there were "no rules" and he had "no power."

Timestamp: [22:48-26:29]

The hosts compare the public scrutiny of Congress to a business scenario where "all your board meetings are televised and all your employees are chiming in about your performance," acknowledging how challenging that environment must be. McCarthy agrees with this assessment, emphasizing the need to "take the personal feelings out of it."

McCarthy reflects on the difficulty of developing emotional detachment, noting it's "better advice to give than to receive." He shares that he had to go through "the barrel" multiple times before reaching a point where outside criticism no longer affected him personally.

"I had to go through the barrel a couple times until I'm literally [at the point where] I don't care what you say about me. I know who I am. Your comments don't matter."

McCarthy offers a historical perspective on political careers, reminding listeners that "the victor writes the history." He uses Winston Churchill as an example of a leader who faced multiple rejections and removals from office, even after his leadership during World War II, yet is now remembered primarily for his successes rather than his setbacks.

The hosts note that Churchill had an advantage in shaping his legacy since he "literally was writing history a lot of the time," acknowledging how control of narrative can influence how political figures are remembered.

This segment reveals McCarthy's philosophical approach to handling the inevitable criticism and rejection in politics - developing a thick skin, maintaining self-knowledge, and recognizing that historical judgments often favor those who ultimately succeed regardless of interim struggles.

Timestamp: [26:29-27:39]

Returning to the "minus one" concept, the hosts ask McCarthy for advice he would give to Congress members who will lose their elections and need to navigate their next chapter over the following 12-24 months.

McCarthy begins by noting that he's witnessed candidates who didn't win elections yet became "much more successful in the private sector than the person who won." He challenges the assumption that electoral victory identifies the most capable individuals, explaining that the skills developed during campaigns have valuable applications beyond politics.

"Just because you didn't get elected to an elected position doesn't mean you can't be part of helping the country. And if you go away and stay away, that's a bad example."

His primary advice is that losing candidates should remain engaged in public service rather than withdrawing completely. McCarthy shares his recruitment philosophy, revealing that he never directly asks someone to run without first understanding their motivation: "Why do you want to run?"

McCarthy references Simon Sinek's concept from "Start With Why," explaining that "people don't buy what you do, they buy why you do it." He recommends Sinek's TED Talk that illustrates this principle through Martin Luther King Jr., the Wright brothers, and Apple.

"Simon Sinek has a good book... 'Start With Why.' People don't buy what you do, they buy why you do it."

He observes that candidates who appear excellent on paper sometimes "fizzle out" because they lack "fire in the belly," while unexpected successes come from candidates who are "genuine" and have clear purpose. McCarthy attributes electoral success less to resume qualifications and more to authentic connection with voters through a compelling personal "why" - a lesson equally applicable to politicians rebuilding after defeat and entrepreneurs launching new ventures.

Timestamp: [27:39-30:00]

Books & Media:

• "Start With Why" by Simon Sinek - Book McCarthy recommends about the importance of purpose over process
• Simon Sinek's TED Talk - 20-minute talk McCarthy references that discusses Martin Luther King Jr., the Wright brothers, and Apple's success through their "why"

People:

• Tom Hanks - Actor McCarthy quotes regarding the importance of remembering that both good and bad times are temporary
• Winston Churchill - British Prime Minister referenced as someone who faced multiple political rejections before becoming historically celebrated
• President el-Sisi - Egyptian leader McCarthy met who mentioned watching all 15 rounds of his speaker election battle
• Martin Luther King Jr. - Referenced in Sinek's TED Talk as someone who led through a powerful "why"
• The Wright Brothers - Referenced in Sinek's TED Talk as innovators driven by purpose

Places:

• Israel - Country McCarthy visited after becoming Speaker to speak at the 75th Anniversary of the Knesset
• Jordan - Country McCarthy visited during his international tour as Speaker
• Egypt - Country McCarthy visited where he met with President el-Sisi
• Italy - Country McCarthy visited during his international tour as Speaker

Concepts:

• "This too shall pass" - Philosophical concept McCarthy references about the temporary nature of both struggles and successes
• "The victor writes the history" - Historical perspective McCarthy shares about how careers are ultimately judged
• "Fire in the belly" - Term McCarthy uses to describe the essential internal motivation necessary for political success

Timestamp: [20:04-30:00]

• McCarthy identifies populism as a growing force in both parties that focuses on immediate gratification rather than principled long-term governance
• True leadership requires looking "50 years out" rather than making decisions solely to win the next election
• McCarthy believes American politics is harmed by tribal rejection of ideas based on which party or figure proposes them rather than their merit
• Political resilience requires developing the ability to separate personal identity from public criticism: "I know who I am. Your comments don't matter"
• McCarthy frames political setbacks as temporary, referencing Tom Hanks' insight that "this too shall pass" applies to both struggles and successes
• McCarthy views his Congressional career as just one chapter rather than his defining identity: "I never thought Congress defines my life"
• The skills developed during political campaigns have valuable applications in the private sector, with losing candidates often becoming "much more successful" than winners
• McCarthy's recruitment philosophy emphasizes purpose over qualifications, asking "why do you want to run?" before considering credentials
• McCarthy believes maintaining civic engagement after electoral defeat is crucial: "Just because you didn't get elected doesn't mean you can't be part of helping the country"
• Authentic connection with voters through genuine purpose ("why") matters more than resume qualifications in political success

Timestamp: [20:04-30:00]

McCarthy continues his discussion of authenticity in politics, using Bernie Sanders as an example of someone whose consistency earns respect even from political opponents.

"Bernie Sanders... he's a true socialist, I mean he's registered as socialist. The thing that people respect about him is you know his why - he doesn't deviate to be elected or different. This is what he truly believes. I respect that."

McCarthy contrasts Sanders with politicians who "flip all the time," emphasizing that principles provide a stronger foundation than opportunism. The host connects this to South Park Commons' mission of helping people "recalibrate" their purpose during career transitions, suggesting the organization helps people rediscover their "why" when it gets lost in the "fog of war."

McCarthy builds on this by challenging the assumption that electoral defeat means the end of one's ability to effect change. He points to Martin Luther King Jr. as someone who "was never elected to anything but he had unbelievable ability and changed America" because "he knew his why."

"Martin Luther King was never elected to anything but he had unbelievable ability and changed America. You know, he knew his why."

This leads to a crucial insight about career transitions: sometimes people clearly know their purpose but are pursuing it through the wrong avenue. McCarthy advises that "before you do anything in life, knowing your why or where you want to go is a much better place" than simply focusing on a particular career path. He suggests that finding the right vehicle for your purpose might require recognizing when "this may not be the best place to achieve that."

Timestamp: [30:04-31:59]

When asked what he would do if he had to completely abandon politics and pursue something entirely different, McCarthy doesn't hesitate: "I'd start an AI company." This surprising answer reveals McCarthy's forward-thinking perspective on technology and its potential impact.

"I think doing something in AI... there are certain things that transform - the Industrial Revolution, internet. When internet came about, the world didn't know what it was."

McCarthy draws a historical parallel between artificial intelligence and previous technological revolutions like the industrial revolution and the internet. He notes that during the internet's early development, "the wealth of America was people who created things" while "government didn't figure out" how to respond until much later, when companies like Microsoft took off and regulations followed.

The key difference with AI, according to McCarthy, is timing: "The world's different. Still going to come from Silicon Valley... but government knows now how AI can change your life." He sees this awareness as creating both opportunities and risks for AI development.

Drawing on his unique background, McCarthy believes his experience positions him well for this field: "If we don't get that right, if we become Europe and overregulate it, we'll miss out on it." He articulates a balanced approach to AI governance, warning against both excessive regulation that stifles innovation and captured regulation where existing companies use government to prevent competition.

"How do you protect society without stopping the growth, while at the same time be able to grow, but also maybe you need to adapt different legislation along the way?"

McCarthy concludes that his ability to navigate these complex political and business considerations gives him a competitive advantage: "If I look at a skill set I have, that's probably a skill set not a lot of people have right now." This reveals McCarthy's understanding that his political expertise could translate effectively to technology entrepreneurship, particularly in an emerging field where policy and innovation are deeply intertwined.

Timestamp: [31:59-33:46]

The hosts bring the conversation to a close by thanking McCarthy for sharing his journey and reflecting on the key insights from their discussion. They specifically highlight McCarthy's reframing of political defeat: "You never actually lose a race, you just kind of live on to fight another day and you learn from it."

"I think it's inspiring to kind of really hear your frame of like you never actually lose a race, you just kind of live on to fight another day and you learn from it."

The hosts note that these principles of resilience and continuous learning align with the approach they've tried to foster at South Park Commons and in Silicon Valley more broadly. This connection between political and entrepreneurial mindsets reinforces a key theme of the conversation - that similar psychological skills and perspectives underpin success across different domains.

The hosts express excitement about McCarthy's future endeavors, suggesting they believe his continued service will benefit the country. McCarthy responds with simple gratitude for the conversation.

This conclusion reinforces the podcast's core "minus one" concept - that setbacks and transitions, when approached with the right mindset, often lead to new opportunities and growth. McCarthy's journey from being ousted as Speaker to contemplating new ventures in business, policy, or perhaps even AI entrepreneurship exemplifies how career pivots can open unexpected doors when viewed through a lens of learning rather than failure.

Timestamp: [33:46-34:27]

People:

• Bernie Sanders - Senator McCarthy mentions as an example of someone with consistent principles who "doesn't deviate to be elected"
• Martin Luther King Jr. - Cited by McCarthy as someone who created tremendous change without being elected to office

Companies/Organizations:

• Microsoft - Referenced when discussing how government regulation followed tech innovation during the internet era
• South Park Commons - The organization hosting the podcast that helps people navigate career transitions

Historical Events:

• Industrial Revolution - Mentioned as a transformative period comparable to the internet revolution and AI development
• Internet Revolution - Discussed as a technological transformation that government initially didn't understand or regulate

Concepts:

• "Know your why" - Central theme McCarthy references throughout the segment about understanding one's deeper purpose
• Silicon Valley - Referenced as the continuing center of technological innovation, particularly for AI

Timestamp: [30:04-34:27]

• McCarthy respects consistent principles even in political opponents, citing Bernie Sanders as someone who doesn't "deviate to be elected" even though McCarthy disagrees with his socialist views
• Electoral defeat doesn't mean the end of one's ability to create change - McCarthy points to Martin Luther King Jr. who "was never elected to anything" but transformed America
• Sometimes people clearly know their purpose but are pursuing it through the wrong avenue or career path
• McCarthy would start an AI company if he completely left politics, revealing his interest in emerging technologies
• McCarthy sees parallels between AI and previous technological revolutions like the industrial revolution and internet, but notes a key difference: "government knows now how AI can change your life"
• McCarthy believes his unique background gives him valuable perspective on balancing innovation and regulation: "How do you protect society without stopping the growth?"
• The hosts connect McCarthy's resilience framework ("you never actually lose a race") to entrepreneurial mindsets in Silicon Valley
• McCarthy's journey exemplifies the podcast's "minus one" concept - that setbacks can lead to new opportunities when viewed as learning experiences
• Authentic leadership requires consistency between one's actions and stated principles
• Successful navigation of career transitions depends on maintaining clarity about your purpose even as your path changes

Timestamp: [30:04-34:27]