PRESIDENT OF NORTH CENTRAL COLLEGE AND NOW -- FROM AN EARLY AGE HE KNEW HE WANTED TO GET TO THE TOP. HE ALSO LIKED TO GET THINGS MOVING. WHETHER HIS GRANDFATHER PLAT ON THREE WHEELS OR FOUR. THIS INTEREST STAYED WITH ED ALL HIS LIFE AT HIS BELOVED FARM OR WITH HIS GRANDCHILDREN. ED'S BROTHER DAVID WAS BORN IN 1926. THROUGH THE ILLINOIS WINTERS AND SHORT PANTS THEY SHARED A STRONG BOND. DAVE FOLLOWED HIS BROTHER'S FOOTSTEPS TO NORTHWESTERN COLLEGE TO MEDICAL SCHOOL AND ON TO A BRILLIANT CAREER. THE RALL MEN WORKED TOGETHER AND PLAYED TOGETHER. ED MET THE LOVE OF HIS LIFE EARLY. HERE HE IS AT ED'S FOURTH BIRTHDAY. CAROLINE AND ED WERE MARRIED IN 1944. THEIR FATHERS EDWARD PROFESSOR DOCUMENT AND RECALL WERE COLLEAGUES AT NORTH CENTRAL COLLEGE AN CLOSE FRIENDS. FEW PEOPLE REALIZE THAT CAROLINE WHO HAD A DEGREE IN SCIENCE AND WORKED IN THE LAB AT MAYO CLINIC WAS ED'S UNACKNOWLEDGED SCIENTIFIC EDITOR. THIS IS THE ONLY PHOTO TAKEN OF ED DANCING. TO A YEAR LONG SABBATICAL IN PARIS. CAROLINE WAS BY HIS SIDE WHEN HE RECEIVED AN HONORARY DEGREE FROM THEIR ALMA MATER NORTH CENTRAL COLLEGE. ED LOST HIS BELOVED CAROLINE IN 1976. ED WAS A SPORTSMAN FROM EARLY AGE. HIS LOVE OF HORSES CONTINUED THROUGH THE YEARS AND HE PASSED IT ON TO HIS GRANDDAUGHTERS. HE ALSO EXCELLED -- HE ENJOYED SKIING. HERE AT GARMISH, GERMANY, IN 1947, CAROLINE A COLLEGE TENNIS CHAMPION DID HER BEST TO TEACH HIM THE GAME. ED WAS NEVER AT A LOSS FOR AN OUTLET FOR HIS ENERGY. HERE HE'S SKIPPING ROCKS. THE RECALLS OFTEN SKATED ON A CANAL. HERE IS ED AT 70 SKATING ON HIS DAUGHTER'S FARM POND WITH HIS GRANDCHILDREN. ED HAD AN ARTISTIC SIDE. AS A YOUNGSTER HE WAS INTRIGUED BY PHOTOGRAPHY. HE FILMED HIS TRAVELS TO RUSSIA AND TO THE MARSHALL ISLANDS IN THE LATE 1950s. ED INHERITED HIS MOTHER'S GIFT OF MUSIC AND PLAYED PIANO FROM AN EARLY AGE. CLASSIC MUSIC WAS HIS FORTE. SHARED BY WIFE CAROLINE AND PASSED ON TO THEIR DAUGHTER. AND GRANDDAUGHTERS. SAILING WAS ANOTHER OF ED'S PASSIONS. WHILE IN NEW YORK HE EVEN BOUGHT A SMALL SAILBOAT. LATER HE SAILEDDED WITH CHRIS AN ON THISSON UP AND DOWND THE EAST COAST AS WELL AS FINLAND. IN HIS LAST YEARS HE SAILED IN THE CARIBBEAN WITH POST-DOCS DOING GENETIC RESEARCH ON JELLY FISH. IF A SAIL SAILBOAT WASN'T AVAILABLE HE COULD STILL BE FOUND ON THE WATER. IN 1947 ED JOINED THE ARMY. AFTER A RIGOROUS BOOT CAMP HE WAS STATIONED IN GERMANY. LATER CAROLINE JOINED HIM AND THEY TRAVELED THROUGHOUT EUROPE. BACK IN THE U.S. HE FINISHED HIS Ph.D. AT THE MAYO CLINIC AND THEN WENT TO THE BIG APPLE TO WORK AT SLOAN-KETTERING. HE ENJOYED LAB WORK FOR MANY YEARS. BUT EVEN MORE SO NOW. IN 1950 ED AND CAROLINE HAD A DAUGHTER PRISCILLA. PRISCILLA OR PIA SHE WAS CALLINGED WAS OFTEN AT HIS SIDE AND THIS WAS TRUE FOR MANY YEARS. IN 1953, ED AND CAROLINE HAD A SON EDWARD CHRISTIAN CALLED BUSTY. HERE IS ED WITH HIS FAMILYS(S IN 1963. IN 1979 ED WELCOMED HIS FIRST GRANDCHILD, CAROLINE ELIZABETH. ANOTHER GRANDCHILD AMANDA WAS BORN IN 1980. NO LONGER ED NOW BEING SERVED TO PAPA. POP POP SHARED HIS LOVE OF THE FARM WITH CAROLINE AND AMANDA. A THIRD GRANDDAUGHTER JOANNE WAS BORN IN 1993. ED WATCHED HIS GRANDCHILDREN GROW, HERE THE PROUD GRANDFATHER IS SHOWING OFF AMANDA'S PRIZE-WINNING SCIENCE FAIR PROJECT. ED TRAVELED TO MOUNT HOLIOK TO SEE CAROLYN GRADUATE IN 2001. IN 2003 HE PROUDLY WATCHED AS AMANDA GRADUATED FROM UNBC WITH PIE BETA KAPPA ON -- PHI BETA KAPPA HONORS. ED'S SIGN ACTIVE IG CREDENTIALS ARE WELL KNOWN. HIS RESEARCH IN ENDOCRINOLOGY WAS GROUNDS-BREAKING. IN 1955 HE LEFT NEW YORK FOR NIH. HE WORKED LONG HOURS IN THE LAB AND THAT LOVE OF BASIC SCIENCE NEVER LEFT HIM. HE FOSTERED THE WORK OF MANY WHO LATER EARNED GREAT HONORS EVEN AFTER RETIRING HE CONTINUED TO WORK WITH POST DOCS AND HIS INTEREST TURNED TO GENETICS AND GENETIC SEQUENCING. HIS FORMER POST-DOCS FROM THE REPUBLIC VISITED HIM TWO MONTHS BEFORE HE DIED WANTING HIS FEEDBACK AND EDITORIAL SKILLS BEFORE PUBLISHING THEIR LATEST PAPER. ED STILL REVELED IN GOOD SCIENTIFIC DISCUSSIONS WITH COLLEAGUES. ED'S PURSUITS TOOK HIM TO THE THE MARSHALL ISLANDS IN 1957 AND '59 TO RESEARCH EFFECTS OF RADIATION. HE RETURNED FOUR TIMES IN THE 1970s HE ALSO WAS PART OF THE FIRST SCIENTIFIC EXCHANGE WITH THE SOVIET UNION. ED MADE LIFE LONG FRIENDS WITH HIS SCIENTIFIC COLLEAGUES ALL OVER THE WORLD. ONE OF HIS MOST ENDURING RELATIONSHIPS WAS WITH JACK ROBIN WHICH IS BEGAN IN NEW YORK 1949. OTHERS WERE (INDISCERNIBLE) FROM ENGLAND, HENRY METSGER, PHIL GORDON, MARIO ANDRIOLI AND MANY, MANY MORE. EVEN AS HIS HEALTH FAILED HE DID NOT WANT TO MISS THE ANNUAL FAES CHRISTMAS PARTY EVEN THOUGH HE PASSED AWAY TWO MONTHS LATER. DR. JEW JEAN BRODY HIS OLD FRIEND OF 60 PLUS FRIENDS DESCRIBED ED RALL AS INDOCUMENTABLE. HE COULD BE FIERCE AND FRIGHTENING BUT THERE WAS ANOTHER SIDE TO ED RALL. HE COULD BE A WILD MAN. ALWAYS READY FOR A CHALLENGE, SOMETHING NEW OR DIFFERENT. NEVER AFRAID TO BE SILLY, BUT WHEN HE WAS MELLOW HE WAS VERY, VERY MELLOW. ED RALL LOVED THE ARTS. THE SCIENCE, AND KNOWLEDGE IN GENERAL. HE LIVEDDED HIS LIFE TO THE FULLEST UNTIL THE END. FACING EVERY CHALLENGE WITH COURAGE AND GRACE. ED RALL DIED FEBRUARY 28th, 2008 WITH HIS FAMILY BY HIS SIDE. >> GOOD AFTERNOON, EVERYONE. I'M FRANCIS COLLINS, DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH AND IT'S A PARTICULAR PLEASURE TO WELCOME YOU TO THIS VERY SIGNIFICANT ANNUAL EVENT. THE J. EDWARD RALL CULTURAL LECTURE, PARTICULARLY LIKE TO EXTEND MY RECOGNITION AND WELCOME TO MEMBERS OF THE RALL FAMILY, AND FRIENDS OF THE FAMILY WHO HAVE COME THIS YEAR TO TAKE PART IN THIS EVENT AND VERY MUCH WANT TO APPRECIATE THE HARD WORK DONE BY PIA WHO PUT TOGETHER THE WONDERFUL PICTURES AND NARRATIVE THAT YOU HEARD DESCRIBING THE REMARKABLE LIFE OF THE PERSON FOR WHOM THIS LECTURE IS NAMED. VERY MUCH A RENAISSANCE MAN, AND THEREFORE AN APPROPRIATE PERSON FOR US TO HAVE NAMED THIS LECTURE THAT AIMS TO GO A BIT BEYOND WHAT OFTEN HAPPENS IN THIS ROOM WHEN INDIVIDUALS COME HERE TO TALK ABOUT NITTY GRITTY OF ALL SORTS OF SCIENTIFIC DEVELOPMENTS. SO ONCE A YEAR AT THIS LECTURE WE INSTEAD EXPAND OUR MINDS AND OUR HORIZONS TO LOOK AT AREAS THAT ARE RELEVANT CERTAINLY TO OUR OWN LIVES, WHETHER POETRY, MUSIC, OR HUMANITIES OR JOURNALISM. WE ARE FORTUNATE BY THIS MECHANISM TO BE ABLE TO BRING TO THIS PODIUM QUITE A REMARKABLE LINEUP OF EXCEPTIONAL INDIVIDUALS WHO CONTRIBUTED MUCH TO OUR SOCIETY. TODAY IS PART OF THAT TRADITION AND A VERY SIGNIFICANT WAY. MICHAEL GOTTESMAN TELLS ME THAT HE'S BEEN TRYING TO GET THOMAS FRIEDMAN TO COME TO THIS LECTURE FOR MANY YEARS AND APPARENTLY THIS YEAR WE DID SOMETHING RIGHT BECAUSEq&H WE HAVE SUCCEEDED. AND THIS REMARKABLE OPPORTUNITY TO HEAR FROM SOMEONE WHO HAS HAD SUCH A STRONG INFLUENCE ON MANY OF US THROUGH HIS WRITINGS. TOM FRIEDMAN RECEIVED HIS UNDERGRADUATE DEGREE AT BRANDYCE AND TO,FORD AS A MARSHALL SCHOLAR. HE WAS ELECTRIFIED BY JOURNALISM BY HIS 10TH GRADE TEACHERS LIKE MANY OF US GOT ELECTRIFIED BY 10TH GRADE TEACHERS AND ONE THING TO REFLECT UPON IS IF WE HAVE ENOUGH OF THOSE TODAY. HE'S BEEN AT THE NEW YORK TIMES MORE THAN 30 YEARS AS A BEIRUT EURO CHIEF, JER RESALEM BUREAU CHIEF, CHIEF DIPLOMATIC CORRESPONDENT, JEEF WHITE HOUSE COURSE RESPONSE DENT AND SINCE 1995 AND FORUM AFFAIRS COLUMNIST THAT MANY LOOK FORWARD TO READING HIS REGULAR COLUMNS IN THE TIMES. HE HAS RECEIVED A PULITZER PRIZE NOT ONCE, TWICE BUT THREE TIMES. IN 1983 FOR INTERNATIONAL REPORTING FROM LEBANON, 1988 FROM INTERNATIONAL REPORTING FROM ISRAEL AND IN 2001 FOR DISTINGUISHED COMMENTARY PARTICULARLY FOCUSED ON THE IMPACT OF THE TERRORIST THREAT. HE'S RECEIVED A NUMBER OF OTHER AWARDS, I WON'T GO THROUGH EXCEPT TO PERHAPS MENTION THE NATIONAL PRESS CLUB LIFETIME ACHIEVEMENT AWARD IN 2009. MANY OF US HAVE BEEN FORTUNATE TO READ ONE OR MORE OF THE BOOKS HE HAS WRITTEN, SIX OF THEM BEST-SELLING BOOKS FROM BEIRUT TO JERUSALEM, THE LEXIS AND THE OLIVE TREE, HOT, FLAT AN CROWDED. THE WORLD IS FLAT. AND THE BOOK WHICH TODAY TITLE SIMILAR TO HIS LECTURE, THAT USED TO BE US. HOW AMERICA FELL BLIND IN THE WORLD AND HOW WE CAN COME BACK. I HAD THE PRIVILEGE OF GETTING TO KNOW TOM IN VARIOUS SETTINGS, PARTICULARLY AT THE WORLD ECONOMIC FORUM IN DAVOS. THAT IS A SETTING WHERE THERE'S MANY SUBSTANTIAL FIGURES GATHERING AROUND THE WORLD WHO TALK ABOUT THE STATE OF AFFAIRSCH IT NEVER CEASES TO BE THE CASE WHEN TOM FRIEDMAN IS THERE LEAD PAJ IS PLACE IS PACKED OVERFLOWING BECAUSE OF THE WAY IN WHICH PEOPLE HANG UPON HIS WORDS AND ANALYSIS OF COMPLEX SITUATIONS THAT AFFECT THE WHOLE WORLD. I WAS PLEASED TO SEE IN HIS MOST RECENT COLUMN THIS PAST SATURDAY A MENTION OF NIH AND COME CAME AND SPENT SEVERAL HOURS HERE AT NIH ABOUT SIX WEEKS AGO, TRAVELED TO SEE THE CHEMICAL GENOMICS CENTER IN GAITHRSBERG AND THEN VISITED THE CLINICAL CENTER AND SAW PATIENT AND HEARD ABOUT KIDNEY CANCER FROM LINDEHAN. IN A PIECE FROM SATURDAY SETTING THE STAGE FOR WHAT HE'S GOING TO TALK ABOUT TODAY, TALKING ABOUT THE FACT WE ARE IN A DIFFICULT ECONOMIC TIME BUT WE DON'T HAVE A PLAN. MAKE HE SAYS WE CAN GROW AS A COUNTRY WITHOUT PLAN BUT WE DARE NOT CUT WITHOUT PLAN. WE CAN REALLY DO DAMAGE. I CAN LOSE WEIGHT QUICKLY IF I CUT OFF BOTH ARMS BUT IT SURELY WILL REDUCE MY JOB PROSPECTS. WHAT WE MUST PRESERVE IS THAT MAGIC COMBINATION OF CUTTING EDGE HIGHER EDUCATION, GOVERNMENT FUNDED RESEARCH, AND IMGRAIX OF HIGH IQ RISK TAKERS. ALL US IN THIS ROOM ARE VERY MUCH IN ALL THREE OF THOSE ACTIVITIES SO IN FACT WE RESONATE TOM WITH THOSE WORDS. SO IT IS A GREAT PRIVILEGE TO WELCOME TO NIH SUCH A DISTINGUISHED FIGURE, A WORLD CLASS AUTHOR AND JOURNALIST, A POWERFUL VOICE OF REASON AND REALITY IN A WORLD THAT HAS MUCH NEED OF BOTH AT THE PRESENT TIME. PLEASE JOIN ME IN WELCOMING THOMAS L. FRIEDMAN. [APPLAUSE] >> THANK YOU SO MUCH. THANK YOU. THANK YOU. AS PAUL SIMON SAID WHEN HE AND ARTHUR GARFUNKLE GAVE IN CENTRAL PARK, IT'S GREAT TO DO A NEIGHBORHOOD CONCERT BECAUSE I LIVE JUST DOWN THE STREET. SO I DON'T KNOW HOW THIS TOOK SO LONG BUT I'M REALLY GLAD TO BE HERE. I AM GOING TO SPEAK ABOUT A LITTLE FUZZY THERE, IS THAT BETTER? I AM GOING TO SPEAK ABOUT MY LATEST BOOK, "THAT USED TO BE US: HOW AMERICA LOTS ITS WAY IN THE WORLD THAT INVENT AND HOW WE CAN COME BACK" IT'S A BOOK I CO-AUTHORED FOR FIRST TIME WITH A FRIEND OF MINE AND BETHESDA NEIGHBOR FROM JOHNS HOPKINS UNIVERSITY, TEACHES INTERNATIONAL RELATIONS THERE. WHENEVER WE TELL PEEP IT WILL TITLE OF THE BOOK "THAT USED TO BE US" THEIR FIRST QUESTION IS BUT DOES IT HAVE A HAPPY ENDING? WE TELL EVERYBODY IT DOES. WE JUST DON'T KNOW WHETHER IT'S FICTION OR NON-FICTION. WE'RE STILL WAITTOGRAPHY GUR THAT OUT. YOU MAY WONDER HOW DID TWO FOREIGN COLUMNIST GEEKS, I'M THE -- AT JOHNS HOPKINS SKOL ADVANCED INTERNATIONAL STUDIES, HOW DID TWO FOREIGN POLICY GEEKS WRITE A BOOK ABOUT DOMESTIC AMERICAN POLITIC? THE ANSWER IS SIMPLE, NEIGHBORS, 20 YEAR FRIENDSHIP, WE START EVERY DAY FOR THE LAST 20 YEARS, ALMOST NOT SATURATION BUT ALMOST WE TALK IN THE MORNING, MUCH TO CHAGRIN OR OF OUR WIVES OR EVENING AND WE START EVERYBODY CONVERSATION OVER THE 20 YEARS TALKING ABOUT THE WORLD. BUT WE NOTICE SOMETHING IN RESEN YEARS, WE WOULD START EVERY DAY TALKING ABOUT THE WORLD. BUT END EVERY DAY TALKING ABOUT AMERICA. AND IT QUICKLY BECAME APPARENT TO US THAT AMERICA ITS FATE, FUTURE, VIGOR AND VITALITY REALLY WAS THE BIGGEST FOREIGN POLICY ISSUE IN THE WORLD. BECAUSE WE CERTAINLY WOULD CONCUR THAT AMERICA WE'RE HARDLY PERFECT, WE MAKE OUR MISTAKES BUT ON BALANCE, MICHAEL AND I YOU MIGHT CALL AMERICA NATIONALISTS. WE DO BELIEVE AMERICA PLAYS HUGELY IMPORTANT CONSTRUCTIVE ROLE IN THE WORLD, WHETHER IT'S IN THE FIELD OF SCIENCE OR SECURING THE CEILINGS IN ASIA, OR PROVIDING ENORMOUS NUMBER OF GLOBAL PUBLIC GOOD. WE DO BELIEVE THAT IF AMERICA GOES WEAK YOUR KIDS WON'T JUST GROW UP IN A DIFFERENT AMERICA, THEY WILL GROW UP IN A FUNDAMENTALLY DIFFERENT WORLD. WHAT IS IT TAKE IN OUR COUNTRY SOMETHING VERY, VERY IMPORTANT, WHETHER WE DO OR DO NOT PASS ON THE AMERICAN DREAM TO ANOTHER GENERATION DOESN'T JUST HAVE DOMESTIC CONSEQUENCES FOR THIS COUNTRY. IF FACT, IF I WERE TO SUMMARIZE THE STAKES AS WE SEEa q THEM, WE ARE MOVIE BUFFS AND THE BOOK IS IN SOME WAYS BUILT AROUND MOVIES BUT ONE IN PARTICULAR, ONE SCENE WE LIKE TO POINT TO THAT DEFINES THE THAT CHALLENGE AS WE SEE IT T OR SON WELLS CLASSIC TOUCH OF EESM, A MOVIE OF MURDER, KIDNAPPING AND CORRUPTION ON THE MEXICAN AMERICAN BORDER. OR SON WELLS PLAY AD CROOKED COP WHO TRIES TO FRAME HIS MEXICAN COUNTER PART FOR A MURDER. AT ONE POINT WELLS STUMBLED INTO A BROTHEL AND FINDS THE PROPRIETOR MARLEEN DEE TRICK WHO IS A FORTUNE TELLER WITH CARDS SPREAD OUT IN FRONT OF HER. READ MY FUTURE FOR ME, WELLS SAID. YOU HAVEN'T GOT ANY, SHE REPLIES. YOUR FUTURE IS ALL USED UP IS THAT US? OUR FUTURE IS ALL USED UP? WELL, WE DON'T THINK SO. BUT WE SURE BELIEVE WE HAVE GOT TO GET OUR ACT TOGETHER AS A COUNTRY. BECAUSE WE'RE NOT GOING TO OWN THE FUTURE, BY DEFAULT. I'M GOING TO ASK YOU TO NOT TO GET GET A TAKE ANY PICTURES, OKAY, THANKS. IF I COULD, I'M GOING TO JUST TAKE A FEW MINUTE, SOME OF YOU READ THE BOOK AND THOSE WHO HAVEN'T, I KNOW WHO YOU ARE. AND WE'LL TALK ACH WARDS BUT AIM -- AFTERWARDS BUT I WILL TAKE A MOMENT TO READ YOU THE FIRST FEW PARAGRAPHS IF I CAN INDULGE YOU. THE OPENING CHAPTER OF THE BOOK CALLED "IF YOU SEE SOMETHING, SAY SOMETHING". THIS YOU'RE GOING TO RESONATE WITH. THIS IS A BOOK ABOUT AMERICA THAT BEGINS IN CHINA, IN SEPTEMBER 2010, I ATENNED THE WORLD ECONOMIC SUMMIT IN CHINA. FIVE YEARS EARLIER GETTING THERE INVOLVED A THREE AND A HALF CAR RIDE FROM BEIJING TO A POLLUTED CROWDED CHINESE VERSION OF DETROIT. NOW TO GET THERE YOU HEAD TO THE BEIJING WITH GLASS WALLS AN OVAL ROOF COVEREDDED WITH 3,246 SOLAR PANELS, YOU BUY A TICKET FROM ELECTRONIC KIOSK IN CHINESE AND ENGLISH AND YOU BOARD A WORLD CLAS HIGH SPEED TRAIN THAT GOES TO ANOTHER MODERN TRAIN STATION IN DOWNTOWN. SAID TO BE THE FASTEST IN THE WORLD OPERATENING 2008 THE CHINESE BULLET TRAIN COVERED 72-MILES IN 29 MINUTES. THE CONFERENCE ITSELF TOOK PLACE AT THE BEIJING CONVENTION CENTER A MASSIVELY BEAUTIFUL STRUCTURE THE LIKES FEW EXIST IN AMERICAN CITIESCH AS IF THE CONVENTION CENTER WASSEN IMPRESSIVE THE CO-SPONSORS GAVE SOME HELPFUL FACT AND FIGURES. THEY SAID THE BUILDING CONTAIN AD TOLD FLOOR AREA OF 230,000 SQUARE METERS AND THAT CONSTRUCTION OF THE BEIJING CONVENTION CENTER STARTED SEPTEMBER 15th, 2009 AND WAS COMPLETED IN MAY 2010. READING THAT LINE I STARTED WALKING AROUND MY ROOM SEPTEMBER, OCTOBER, NOVEMBER, DECEMBER, THAT'S EIGHT AND A HALF MONTHS. RETURNING HOME TO BETHESDA, MARE MARCH I DESCRIBED THE COMPLEX AND HOW QUICKLY IT WAS BUILD TO MY CO-AUTHOR MICHAEL AND HIS WIFE ANN. AT ONE POINT, EXCUSE ME TOM, HAVE YOU BEEN TO OUR SUBWAY STOP LATELY? I TOLD YOU THIS WAS GOING TO RESONATE. WE ALL LIVE IN BETHESDA AN OFTEN USE THE WASHINGTON METRO SUBWAY TO GET THE WORK AND DOWNTOWN WASHINGTON D.C. I HAD JUST BEEN AS A BETHESDA STITION AND KNEW EXACTLY WHAT ANN WAS TALKING ABOUT, THE TWO SHORTs VALETTOR THERE IS HAS BEEN UNDER REPAIR FOR SIX MONTHS. WHILE ONE BEING FIXED WAS CLOSED THE OTHER HAD TO SQUEEZE SINGLE FILE UP AND DOWN ONE FROZEN ESCALATOR. A SIGNED TON CLOSED ESCALATOR SAID REPAIRS WERE PART OF MASSIVE escalator modernization project. WHAT WAS TAKING IT SO LONG? WE INVESTIGATED, CATHY A SPOKESWOMAN FOR WASHINGTON METRO SAID REPAIRS WERE SCHEDULED TO TAKE SIX MONTHS AND ARE ON SCE DIEW. MECHANICS NEED 10 TO 12 WEEKS TO FIX EACH escalator. A SIMPLE COMPARISON MADE A STARTING POINT. IT TOOK CHINA'S CONSTRUCTION GROUP 32 WEEKS TO BUILD A WORLD CLASS CONVENTION CENTER FROM GROUND UP INCLUDING GIANT ESCALATORS IN EVERY CORNER AN WASHINGTON METRO 24 WEEKS TO REPAIR TWO TINY ESCALATORS OF 21 STEPS EACH. WE SEARCHED FURTHER AND FOUND ON NOVEMBER 14th, 2010, THE WASHINGTON POST AS SOMEONE WHO HAS RIDDEN METRO MORE THAN 30 YEARS I CAN THINK OF AN EASIER WAY THE ASSESS THE HEALTH OF ESCALATORS. FOR DECADES THEY RAN SILENTLY AN EFFICIENTLY BUT OVER SEVERAL YEARS WHEN THEY'RE RUNNING AGING OR ILL FITTING PARTS HAVE GENERATED HORRIFIC NOISES THAT SOUNDS TO ME LIKE A TYR,NASAURUS REX TRAPPED IN TAR PIT SCREECHING DYING SCREAMS. THE QUOTE WE FOUND MOST DISTURBING CAME FROM MARYLAND COMMUNITY NEWS STORY ABOUT THE LONG LINES AT RUSH HOUR CAUSED BY THE ENDLESS METRO REPAIRS. IT WAS A QUOTE FROM A FREQUENT WRITER. ONE BENJAMIN ROTH OF BETHESDA. WHO SAID MY IMPRESSION STANDING ON LINE THERE IS THAT PEOPLE HAVE SORT OF GOTTEN USED TO IT. PEOPLE HAVE SORT OF GOTTEN USED TO IT. INDEED THAT SENSE OF RESIGNATION, THAT SENSE THIS IS HOW THINGS ARE IN AMERICA TODAY, THE SENSE THAT AMERICA'S BEST DAYS ARE BEHIND AN CHIEP'S BEST DAYS ARE AHEAD HAVE BECOME THE SUBJECT OF WATER COOLER GROCERY LINE AN CLASSROOMS ACROSS AMERICA TODAY. DO WE BUY THE IDEA THAT BRITAIN OWNED A 19th CENTURY, AMERICA DOMINATED IN THE 20th CENTURY AND CHINA WILL DOMINATE THE 21st SENTRY? NO ONE SHOULD RESIGN HIMSELF OR HERSELF TO THAT VIEW. TWO OF US ARE NOT PESSIMISTS WHEN IT COMES TO AMERICA'S FUTURE. WE'RE OPTIMIST BUS WE'RE ALSO FRUSTRATED. WE ARE TOO FRUSTRATED OPTIMISTS. THE TITLE OF THIS CHAPTER, WELL YOU KNOW WHERE IT COMES FROM. IF YOU SEE SOMETHING SAY SOMETHING. IT'S THE MOTTO OF THE DEPARTMENT OF HOMELAND SECURITY. IT PLAYS OVER AND OVER ON LOUD SPEAKERS IN AIRPORTS AND REAL ROAD STATIONS AROUND THE COUNTRY. WE HAVE SEEN AND HEARD SOMETHING IN MILLIONS OF AMERICANS HAVE TOO. WHAT WE SEE IS NOT SUSPICIOUS PACKAGE LEFTED UNDER A STAIRWELL, WE SEE IS HIDING IN PLAIN SIGHT. WE HAVE SEEN SOMETHING THAT POSE AS GREATER THREAT TO OUR NATIONAL SECURITY AND WELL BEING THAN ANYTHING AL QEDA DOES, WE HAVE SEEN A COUNTRY WITH ENORMOUS POTENTIAL FALLING INTO A DECLINE, SLOW DECLINE, JUST SLOW ENOUGH NOT TO DROP EVERYTHING AND PULL TOGETHER WHAT NEEDS TO BE FIXED. THIS BOOK IS OUR WAY OF SAYING SOMETHING ABOUT WHAT IS WRONG, WHY THINGS HAVE GONE WRONG AND WHAT WE CAN AND MUST DO TO MAKE THEM RIGHT. SO THAT'S THE BASIC INTRODUCTION. NOW, THE CORE THESIS IS THAT AMERICA TODAY FACES THREE, FOUR, MAYBE FOUR GRAND CHALLENGES, WE WOULD SAY. THE FIRST IS A PERCEPTUAL ONE. BECAUSE WE REALLY BELIEVE AS A COUNTRY, AS A COMPANY, AS AN INSTITUTE, AS AN INDIVIDUAL, IF YOU DON'T START YOUR DAY EVERY DAY BY ASKING WHAT WORLD AM I LIVING? WHAT ARE THE BIGGEST TRENDS IN THIS WORLD? HOW DO I ORIENT MYSELF TO TAKE ADVANTAGE OF THEM? YOU'RE GOING TO GET OFF TRACK. THERE IS A CONCEPT THAT THE US AIR FORCE USES IN ITS SCHOOLS TO TRAIN OUR FIGHTER PILOTS CALLED THE OODA LOOP, IT STAND FOR OBSERVE, ORIENT DECIDE, ACT. WHAT THE AIR FORCE TEACH IT IS FIGHTER PILOTS IF YOU'RE IN A DOG FIGHT AND YOUR ABILITY TO OBSERVE ORIENT DECIDE AND ACT YOU WILL SHOOT THEM OUT OF THE SKY. BUT IF THEIR ABILITY TO OBSERVE ORIENT DECIDE AND ACT IS FASTER THAN YOU, THEY WILL SHOOT YOU OUT OF THE SKY. RIGHT NOW OUR NATIONAL OODA LOOP IS COMPLETELY DISCOMBOBULATED. AND ONE ONLY NEED LISTEN TO THE CURRENT POLITICAL DEBATE TO SEE THAT. UNLESS YOU THINK THE SPECIFICS OF PRIVATE EQUITY ARE THE BIGGEST ISSUE FACING OUR COUNTRY TODAY, OUR OODA LOOP RIGHT NOW IS REALLY OUT OF WHACK. IF WE WERE PAYING ATTENTION WHAT WOULD WE SEE? WHAT WE WOULD SEE IS AMERICA TODAY FACES THREE GRAND CHALLENGES. THE FIRST AND ONE I'LL CONCENTRATE HERE ON IS HOW TO DEAL WITH THE MOST IMPORTANT TREND HAPPENING IN THE WORLD TODAY, WHICH I BELIEVE, WE BELIEVE IS THE MERGER OF GLOBALIZATION AND THE IT REVOLUTION. WHAT THAT MEANS FOR EDUCATION, THE JOB MARKET, AND THE WORKPLACE. THE OTHER TWO GRAND CHALLENGES ARE FIRST DEBT DEFICIT AND ENTITLEMENTSK ALL THE ISSUES YOU'RE FAMILIAR WITH AND THE FOURTH, WE BELIEVE IS ENERGY AN CLIMATE, HOW WE POWER THE FUTURE OF AMERICA'S MIDDLE CLASS AND RISING MIDDLE CLASSES ALL OVER THE PLANET WITHOUT TIPPING OUR ONLY HOME, PLANET EARTH, INTO DISRUPTIVE CLIMATE CHANGE. WE THINK THOSE ARE THE GRAND CHALLENGES BUT I WANT TO FOCUS THIS AFTERNOON ON THE FIRST. IT'S ONE I FIND MOST PARENTS ARE INTERESTED IN, WITH ONE MOST RELEVANT TO THE JOBS DEBATE IN OUR COUNTRY RIGHT NOW. I BELIEVE SOMETHING VERY IMPORTANT HAPPENED, THE MOST IMPORTANT THING HAPPENING IN THE WORLD TODAY IN JUST THE LAST SIX OR SEVEN YEARS. THE WORLD WENT FROM CONNECTED TO HYPERCONNECTED. IT WAS COMPLETELY DISGUISED TBI SUB PRIME CRISIS AND POST 9/11. I BELIEVE IT'S THE BITION THING HAPPENING IN THE WORLD TODAY, IT'S CHANGING EVERYTHING, OR IT IS THING AFFECTING MOST OTHER THINGS. IN MY OWN LYNN GO, THE WORLD WENT FROM FLAT WORLD 1.2 TO FLAT WORLD 2.0. THE REASON I'M SENSITIVE TO THIS, AS I SAID IN 2004 I SAT DOWN TO WRITE A BOOK CALLED THE WORLD ?RAT, CAME OUT IN 2005. WHEN I SAT TO WRITE THIS BOOK ONE THING I DID WAS GET THE FIRST EDITION OF THE WORLD IS FLAT OFF THE BOOK SHELF. WENT AND GOT MY FIRST EDITION, CRACKED OPEN THE INDEX, LOOKED UNDER A, B, C, D, E, F, F, F, A, FACEBOOK WAS INVENTED. SO WHEN I WAS OUT THERE SAYING THE WORLD IS FLAT, WE'RE ALL CONNECTED FACEBOOK DIDN'T EXIST. TWITTER WAS STILL A SOUND T THE CLOUD WAS STILL IN THE SKY, 4G WAS A PARKING PLACE, LINKED IN WAS A PRISONNEN. APPLICATIONS YOU SENT TO COLLEGE AND FOR MOST PEOPLE SKYPE WAS A TYPO. I LOVE DOING THAT. CAN I DO THAT AGAIN? [LAUGHTER] >> ALL OF THOSE THINGS HAPPENED AFTER, I WAS OUT THERE SAYING THE WORLD WAS FLAT. WE'RE ALL CONNECTED. SO WE HAVE ACTUALLY GONE FROM CONNECTED TO HYPERCONNECTED. AND WE'RE NOT TALKING ABOUT IT BUT WE'RE ALL LISTENING AND WE'RE ALL FEELING IT. NOW, WHAT ARE&qCÖ THE IMPLICATIONS OF THIS? THE IMPLICATIONS OF THIS ARE VERY SIMPLE. IF THE WORLD WERE A SINGLE BIOLOGY CLASS THE GLOBAL CURVE JUST ROSE. THE GLOBAL CURVE JUST ROSE BECAUSE EVERY EMPLOYER NOW HAS ACCESS IN A HYPERCONNECTED WORLD EASIER, CHEAPER MORE EFFICIENT ACCESS TO CHEAP LABOR, CHEAP ROBOTICS, CHEAP SOFTWARE, CHEAP AUTOMATION, AND CHEAP VIEW. MORE THAN EVER BEFORE, THE WHOLE GLOBAL CURVE HAS RISEN. WHAT WE ARGUE IN THE BOOK, THE SIMPLE SOCIOECONOMIC FACT OF OUR TIME IS THAT AVERAGE IS OFFICIALLY OVER. AVERAGE IS OVER. REMEMBER THE DICTUM IS ALL YOU EVER DO IS ALL YOU HAVE EVER DONE ALL YOU EVER GET IS ALL EVER GOT. ALL YOU'LL EVER GET IS NOT ALL YOU EVER GOT. NOT IN A HYPERCONNECTED WORLD. THERE'S SIGNS OF THIS HYPERCONNECTIVETY EVERYWHERE. I COLLECT NEWS ARTICLES FROM THE NEWSPAPER, I LOVE TO WHEN I'M ABROAD. OCTOBER 30th, 2010 I WAS IN INDIA, THE HINDU TIMES RAN A NEWS ITEM REPORTING IN THE POLYTELECOMMUNICATIONS FIRM START PROD VIEDING 3G MOBILE NETWORK SERVICE AT THE SUMMIT OF MT. EVEREST, THE WORLD'S TALLEST MOUNTAIN T. STORY SAID THIS ALLOWS THOUSANDS OF CLIMBERS ACCESS TO HIGH-SPEED INTERNET AND VIDEO CALLS USING THEIR MOBILE PHONES. DO YOU KNOW HOW MANY PHONE CALLS ARE NOW BEING MADE FROM THE TOP OF MT. EVEREST THAT BEGIN MOM, YOU'LL NEVER GUESS WHAT I'M -- WHERE I'M CALLING FROM. THAT IS A HYPERCONNECTED WORLD. I'M FROM MINNESOTA, WIFE IS FROM IOWA AND HER MOTHER WENT TO GRANELL COLLEGE, A WONDERFUL LIBERAL ARTS SCHOOL, LATER BECAME CHAIRMAN OF THE BOARD. GOT AN HONORARY DEGREE, WONDERFUL PLACE, 1600 STUDENTS, LIBERAL ARTS, LAST YEAR 9% OF ALL APPLICATIONS TO GRENELL CAME FROM CHINA. HOW DID THOSE 9 -- OUT OF 9% 43% HAD PERFECT SCORES ON THEIR MATH ACT THAT'S ALSO A HYPERCONNECTED WORLD. I WAS AT BRANDYCE IN THE MID 70s WE HAD A EXCHANGE STUDENT WHO TAUGHT US THESE CHOP STICKS. GET THAT OUT OF YOUR HEAD. YOU WANT TO GO TO GRENELL NOW? YOU WILL BE COMPETING LAST YEAR AGAINST 255 APPLICATIONS FROM CHINA, 43% WITH PERFECT 800S ON THEIR MATH ACTs. THAT'S ALSO A HYPERCONNECTED WORLD. AND THAT'S WHY AVERAGE IS OVER. AVERAGE IS OFFICIALLY OVER. I KNOW WHAT YOUER THINKING. YOU'RE THINKING VERY EASY FOR YOU TO SAY, MR. SMARTY PANTS NEW YORK TIMES COLUMNIST. NO, LET ME TELL YOU ABOUT MY JOB. I BECAME THE NEW YORK TIMES FOREIGN AFFAIRS COLUMNIST IN JANUARY, 1995. WHEN I DID I ACTUALLY INHERITED JAMES RESTIN'S OFFICE IN THE WASHINGTON BUREAU NEW YORK TIMES WHAT AN HONOR TO INHERIT THE OFFICE OF THIS GREAT EDITOR AND COLUMNIST AT THE NEW YORK TIMES IN THE '60s AND '70s. I SUSPECT HE USED TO COME TO THE OFFICE BACK THEN AND SAY TO HIMSELF EVERY MORNING I WONDER WHAT MY SEVEN COMPETITORS ARE GOING TO WRITE. BY THE WAY, HE KNEW ALL SEVEN PERSONALLY. WALTER LIPMAN, STEWART ELSEA, MARY -- I DO THE SAME THING. I COME TO THE OFFICE EVERY MORNING AND SAY TO MYSELF I WONDER WHAT MY 70 MILLION COMPETITORS ARE GOING TO WRITE. 70 MILLION COMPETITORS. I GO TO INDIA, I'M KEENLY AWARE THAT MY COLUMN MAYBE COMPARED VERY EASILY TO SOMETHING IN THE HINDU TIMES OR THE TIMES OF INDIA. IT'S JUST SO EASY NOW JUST GO TO REAL CLEAR WORLD, YOU CAN HOLD THEM AUTISM UP. I WAS IN INDIA LAST SEPTEMBER, WENT TO IIC JOB CORPS AT THE INVITATION OF THE SCHOOL PRESIDENT, GREAT M TIRKS, AND I.E.T JOB CORPS HAD WON THE NATIONAL -- INDIAN MINISTRY OF EDUCATION DID A RACE TO THE TOP FOR WHO COULD COME UP WITH A IPAD STRIPPED DOWN MODEL OF THE iPAD FOR UNDER $40, FOR $39.50. THAT WOULD GOVERNMENT SUBSIDY ANY INDIAN STUDENT COULD HAVE. IT WAS MEANT TO BE AN EDUCATIONAL TOOL. AMAZING DEVICE. DESIGNED BY TWO ELECTRICAL ENGINEERING PROFESSORS AT I.E.T JOB CORP. ONE WHICH I LOVE INTO A VILLAGE IN INDIA WITH NO ELECTRICITY. THIS IS THE KIND OF THING YOU'LL SEE IN THE HYPERCONNECTED WORLD THANKS TO THE CLOUD, YOU'RE GOING TO SEE RADICAL BREAKING IN PRICE POINTS. SO I HAVE HAD FROM 400 TO $39.95, A STRIPPED DOWN DEVICE, VERY BASIC. NOWHERE NEAR THE BEAUTY AND FUNCTIONALITY OF THE REAL iPAD BUT AS EDUCATIONAL TOOL, FANTASTIC. I DECIDED TO WRITE A COLUMN. I DID MY SUNDAY COLUMN. IT WAS 8 P.M. SATURDAY NIGHT EAST COAST TIME. SOMETIME BETWEEN 8 P.M. SATURDAY NIGHT AND 8 A.M. SUNDAY MORNING SOMEONE IN INDIA IN THE COMMENTS SECTION ON NEW YORK TIMES ONLINE UNDER MY COLUMN POSTED A LABORATORY STRESS TEST OF THE DEVICE. SO BEFORE MY NEIGHBORS IN BETHESDA EVEN GOT UP THE TO READ MY COLUMN, SOMEONE IN INDIA HAS POSTED UNDER IT TO BE READ IMMEDIATELY AFTER YOU READ MY COLUMN A LABORATORY STRESS TEST OF THE DEVICE WHICH FORTUNATELY SUPPORTED THE COLUMN BUT MAYBE IT WOULDN'T. NOW IF YOU DON'T THINK THAT KEEPS ME ON MY TOES, OKAY, TO KNOW THAT THAT CAN HAPPEN, YOU REALLY WOULDN'T BE PAYING ATTENTION. THIS IS WHAT'S GOING ON NOW IN THIS HYPERCONNECTED WORLD. WHAT DOES IT MEAN FOR THE WORKPLACE? WHAT IT MEANS IS WE HAVE ALWAYS KNOWN THE WORKPLACE WAS SEGMENTED BASICALLY INTO THREE TIERS. THE TOP TIER, ARE PEOPLE WHO CAN DO NON-ROUTINE WORK. NON-RETEEN WORK MEAN WORK THAT CANNOT BE DESCRIBED BY AN ALGORITHM AND THEREFORE OUTSOURCEDDED OR DIGITIZED. SCIENTISTS PROFESSORS, BIOLOGY GISTS, ENGINEER, ARCHITECTS, PROFESSOR, ARTISTS, SINGERS, ATHLETES, HOPEFULLY A JOURNALIST OR TWO. NON-ROUTINE WORK. WORK THAT REQUIRES CRITICAL THINKING AND PROBLEM SOLVING. A SECOND LAYER IS ROUTINE WORK. WE ALL KNOW ROUTINE WORK THAT Z– BE DESCRIBED BY ALGORITHM AND EASILY OUTSOURCED AUTOMATED OR ROBOT SIZED ROUTINE WORK IS CRUSHED. SO MUCH MIDDLE CLASS WAS REALLY SUSTAINED BY ROUTINE WORK FOR A LONG TIME. FINALLY AT THE OTHER END, NOT THE LOW END, IS NON-ROUTINE LOCAL WORK, THAT HAS TO BE DONE FACE THE FACE IN A SPECIFIC LOCATION, THAT'S THE WORK OF THE BUTCHER THE BAKER THE CANDLE STICK MAKER, THE NURSE, THE DENTIST, MASSAGE THERAPIST AND YOUR DIVORCE LAWYER. YOU NEVER HAVE TO WORRY, THOSE PEOPLE WILL ALWAYS HAVE A JOB, IT HAS TO BE DONE LOCALLY AND THE WAGES TO HAVE NON-ROUTINE WORKERS, LOCAL WORKERS WILL DEPEND ON THE CONCENTRATION OF NON-ROUTINE HIGH END WORKERS YOU HAVE, MUCH BETTER TO BE A MASSAGE THERAPIST IN CALIFORNIA TODAY NEXT TO APPLE HEADQUARTERS, THAN IT IS IN INDIANA. SO THAT'S BASICALLY WHAT THE LABOR MARKET LOOKED LIKE. WHAT'S HAPPENING UNDER THE PRESSURE OF A HYPERCONNECTED WORLD BASICALLY, IS NOT ONLY IS ROUTINE WORK CRUSHED BUT THE DEMANDS OF NON-ROUTINE WORK ARE BEING DRAMATICALLY INCREASED. IT'S NOT ENOUGH ANY MORE TO SAY I'M A RADIOLOGIST. I'M NON-ROUTINE. NOT WHEN I CAN SHIP THOSE X-RAYS TO BANGALORE TO BE READ OVERNIGHT. YOU HAVE TO BE CREATIVE RADIOLOGIST. NOT TO SAY I'M A LAWYER, I'M NON-ROUTINE, YOU BETTER BE A CREATIVE. NOT ENOUGH TO SAY I'M AN ACCOUNTANT, YOU GOT TB A CROW YEAHTIVE ACCOUNTANT. NOT A CREATIVE BUT YOU KNOW WHAT I'M SAYING. EVERYBODY HAS TO LEARN TO BRING SOMETHING EXTRA, SOME UNIQUE VALLEY ADD -- VALUE ADD THAT JUSTIFIES WHY YOU SHOULD GET OLD AN RETAIN THIS JOB. THAT'S WHY I TELL MY GIRLS, GIRLS, I'M OLD FUDDY. WHEN I GRADUATED FROM COLLEGE I GOT THE FIND A JOB, YOU WILL HAVE TO INVENT A JOB. THAT'S THE BIGGEST DIFFERENCE BETWEEN US AND OUR KIDS. IT MAY NOT BE YOUR FIRST JOB, BUT TO HOLE THAT JOB, AND ADVANCE IN THAT JOB YOU HAVE TO INVENT, REINVENT AN RE-ENGINEER THAT JOB AND CONSTANTLY JUSTIFY YOUR UNIQUE VALUE ADD. THERE IS A BANKER I MET IN DALLAS AFTER THE BOOK CAME OUT, IT SAID SOMETHING THAT STRUCK IN MY MINE. HE SAID TOM, TODAY YOU ONLY HIRE SOMEONE IF YOU ABSOLUTELY HAVE TO. YOU ONLY SOMEONE IF YOU ABSOLUTELY HAVE TO. OUR JOB NOW AS PARENTS OR WORKERS IS TO MAKE THE CASE WHY YOU ABSOLUTELY HAVE TO BE HIRED. THAT REQUIRES BRINGING SOMETHING EXTRA TO EVERYTHING YOU DO. SO THE WAY YOU LEARNED ABOUT THIS, WAS INTERVIEWING EMPLOYERS. I'M A REPORTER. I SHOULD GO AND TALK TO EMPLOYERS AND SAY WHAT KIND OF WORKERS YOU'RE LOOKING FOR. WE INTERVIEWED FOUR GENERIC REPORTERS, NATIONAL WASHINGTON OFFICE OF NATIONAL LAW FIRM 24/7 IN INDIA WHERE I SAW THE WORLD WAS FLAT. A BLUE COLLAR FIRM, ELLEN COLEMAN, HEAD OF DUE UPON AND THE GREEN CLOR FIRM HEAD OF THAT FIRM CALLED THE UNITED STATES ARMED FORCES GENERAL MARTIN DEMPSEY. HERE IS WHAT WE FOUND THAT WAS INTERESTING. THEY'RE LOOKING FOR THE THEY'RE LOOKING FOR EMPLOYEES WHO DO CRITICAL REASONING AND PROBLEM SOLVING, DOT, DOT, DOT, IN ORDER TO GET CRITICAL PROBLEM SOLVING -- WHAT EVERYONE IS ACTUALLY LOOKING FOR ARE WORKERS WHO CANNOT ONLY DO THEY JOB BUT INVENT, REINVENT AND RE-ENGINEER THE JOB WHILE THEY'RE DOING IT. WHAT HAPPENS WHEN THE WORLD GETS THIS HYPERCONNECTED IS THAT THE SPEED OF CHANGE IS SO FAST THROUGH SO MANY MARKETS THAT THE BIG BOSS UP THERE HE OR SHE CAN CANNOT POSSIBLY KNOW WHAT'S GOING ON DOWN THERE AND THEREFORE, IT IS EVEN MORE IMPORTANT TO HAVE EMPLOYEES ELLEN COLEMAN FROM DUPONT SAID EVERY EMPLOYEE NEEDS TO BE PRESENT. BECAUSE YOU NEVER KNOW WHERE THE NEXT ITERATION, NEXT INVENTION CAN BE FOUND AND LIKELY WILL BE FOUND VERY CLOSE TO WHATEVER PROCESS SERVICE YOU'RE RENDERING. I JUST WAS AT A CONFERENCE THE OTHER WEEK AND HEARD MARK ZINGA THE GAME COMPANY TALK HE SAID ZYNGA REVIEWS THEIR TEAM LEADERS EVERY QUARTER. BECAUSE WHEN YOU HAVE FIVE PRODUCT CYCLE IN A YEAR AS GAME COMPANY, IF YOU HAVE A BAD TEAM LEADER YOU CAN'T AFFORD TO WAIT UNTIL THE END OF THE YEAR TO DISCOVER. THAT'S FIVE -- THAT MAYBE FOUR OR FIVE PRODUCT CYCLES YOU HAVE BLOWN. SO THEY NOW REVIEW TEAM LEADERS EVERY QUARTER. THAT WILL BE THE WAVE OF THE FUTURE. THINK ABOUT JEFF, THE HEAD OF WASHINGTON LAW FIRM, HAPPENS TO BE A FAMILY FRIEND AND WE GOT INTO THIS DISCUSSION GOING BACK 2008, LEHMAN BROTHERS HAD JUST MELTED DOWN. AND WE WERE OUT TO DINNER WHAT HAPPENED TO YOUR LAW FIRM. I SAID WHAT DID YOU CO? WE'RE LAYING OFF LAWYERS. THAT'S INTERESTING IN A LAW FIRM, WHO GETS LAID OFF FIRST LAST IN FIRST OUT? HE SAID NOT ANY MORE. BASICALLY GETTING LAID OFF IS WHEN WE HAD A LOT OF WORK BECAUSE OF THE BUBBLE AND WE GAVE THAT WORK THE O OUR NON-ROUTINE LAWYERS AND THEY DID IT IN A ROUTINE NON-ROUTINE WAY AND HANDED IT BACK. A LOT OF THEM ARE GONE. THE ONES WE'RE KEEPING ARE THOSE WHO DID THE NON-ROUTINE WORK IN A CREATIVELY NON-ROUTINE WAY. THOSE THAT CAME AND SAID JEFF WE CAN DO THIS OLD WORK IN A NEW WAY BUT WE CAN DO NEW WORK IN A NEW WAY. REALLY INTERESTING TO ME WAS THE HEAD OF THE GREEN COLLAR FIRM. HIS NAME IS GENERAL MARTIN DEMPSEY. HE'S CHAIRMAN OF THE JOINT CHIEF OF STAFF BUT WHEN WE INTERVIEWED HIM HE WAS IN THE -- THE REASON WE INTERVIEWED, HE WAS HEAD OF THE U.S. ARMY EDUCATION CORPS BACK IN 2003 HE COMMANDED THE FIRST ARMORED DIVISION THAT TOOK BAGHDAD FROM SADDAM HUSSEIN. HE WAS THE COMMANDER WHO TOOK BAGHDAD. HE TELLS US THIS STORY IN THE BOOK. IN 2007 HE WAS PROMOTED TO BE HEAD OF OUR CENTRAL COMMAND IN THE MIDDLE EAST OVERALL MIDDLE EAST COMMAND. IN THAT ROLE HE WENT TO AFGHANISTAN TO VISIT A FAR FLUNG BASE COMMANDED BY U.S. ARMY CAPTAIN. AS HE RELATES TO THE BOOK, EVERY TWO HOURS OF TALKING TO THAT CAPTAIN HE REALIZED SOMETHING. THAT CAPTAIN OUT THERE IN THE HINDU IN 2008 FIVE YEARS AFTER HE TOOK BAGHDAD, THAT CAPTAIN HAD ACCESS TO MORE FIRE POWER, ORDER MORE FIRE POWER AND HAD ACCESS TO MORE INTELLIGENCE AS TACTICAL AND NATIONAL LEVEL THAN GENERAL DEMPSEY HAD FIVE YEARS EARLIER WHEN HE TOOK BAGHDAD FROM SADDAM HUSSEIN. HE WENT HOME AND COMPLETELY REVAMPED THE U.S. ARMY EDUCATION INCLUDING NEW INITIATIVE TO GIVE NEW RECRUITS iPHONES AS SOON AS THEY SHOW UP WITHIN TREE WEEKS YOU MAYBE ASKED TO DOWNLOAD THE LESSON T DRILL INSTRUCTOR IN THE FRONT ROW AND YOU WILL TEACH THE COURSE. BUT THEY REALIZE WHEN CAPTAIN BECOMES THAT EMPOWERED IN SUCH FAR FLUNG BASES HOW WE TRAIN THOSE CAPTAINS HOW WE CHOOSE AND HOW WE PROMOTE THE CAPTAINS HAS TO FUNDAMENTALLY CHANGE M THIS IS GOING ON EVERYWHERE. IT'S WHY JEFF LEFT INTERVIEW AND THE BOOKENDS WITH HIM SAYING OUR LAW FIRM NIXON PEA BODY HIRED A CHIEF INNOVATION OFFICER. HOW MANY LAW FIRMS HAVE A CHIEF INNOVATION OFFICER IN THAT'S THE WAVE OF THE FUTURE. WHAT DOES IT MEAN FOR EDUCATION? WHAT IT MEANS FOR EDUCATION IS THAT WE HAVE TWO CHALLENGES NOW IN THE COUNTRY. WE HAVE TO BRING OUR BOTTOM TO AVERAGE FASTER BECAUSE WE HAVE YOUNG PEOPLE GROWING UP IN DISADVANTAGED NEIGHBORS AND SCHOOLS WHO ARE JUST BELOW THE NATIONAL AVERAGE. WE NEED TO BRING THE NATIONAL AVERAGE TO THE GLOBAL HEIGHT SO MUCH HIGHER. THE FIRST CHALLENGE, THE BOTTOM TO THE AVERAGE IS THE CHALLENGE OF THE THREE Rs. IT'S READ AND WRITE AND ARITHMETIC. SECOND CHALLENGE, A CHALLENGE OF THE THREE Cs, CREATIVITY, COLLABORATION, AND COMMUNICATION. HOW WE TEACH ACTUALLY CREATIVITY. WE ACTUALLY HAVE TWO CHALLENGES RIGHT NOW IN THE COUNTRY IN TERMS OF EDUCATION. LET ME JUST CONCLUDE BEFORE WE GO TO QUESTIONS BY TRYING TO ANSWER A QUESTION THAT I GET VERY OFTEN WHICH IS WHAT DO YOU TELL YOUR KIDS? I HAVE TWO DAUGHTERS, ONE IS 27, TEACHER IN THE D.C. SCHOOL SYSTEM, MY YOUNGEST DAUGHTER WORKFORCE NATIONAL PUBLIC RADIO. WHAT DO YOU TELL YOUR KIDS HOW DO YOU DEAL IN THIS HYPERCONNECTED WORLD? I HAVE FOUR PIECES OF ADVICE HOW TO LEAD INTO THIS WORLD. THINK LIKE AN IMMIGRANT, THINK LIKE AN ARTISAN, THINK LIKE JEFF IN AMAZON.COM AND THINK LIKE A WAITRESS AT PER KIN'S PANCAKE HOUSE IN MINNEAPOLIS OFF HIGHWAY 100, MY FAVORITE RESTAURANT. LET ME EXPLAIN. FIRST THINK LIKE AN IMMIGRANT. HOW DOES THE IMMIGRANT THINK? THE IMMIGRANT THINKS I JUST SHOWED UP HERE IN BETHESDA AND THERE IS NO LEGACY SPOT WAITING FOR ME AT NIH OR THE UNIVERSITY OF MARYLAND. I HAVE TO FIGURE OUT WHAT'S GOING ON IN THIS PLACE. SEE WHERE THE OPPORTUNITIES ARE, GET MY OODA LOOP CRANKED UP AND PURSUE THOSE OPPORTUNITIES WITH MORE VIGOR AND ENERGY AND FOCUS THAN ANYBODY ELSE. IMMIGRANTS ARE PARANOID OPTIMISTS. THEY ARE PARANOID, THEY'RE OPTIMISTS BECAUSE THEY LEFT SOMEWHERE TO COME TO SOMEWHERE THEY THOUGHT WAS BETTER. THEY ARE PARANOID BECAUSE THEY KNOW IT CAN CAN ALWAYS BE TAKEN AWAY FROM THEM. THINK LIKE AN IMMIGRANT, STAY HUNGRY BECAUSE WE'RE NEW IMMIGRANTS TO THE HYPERCONNECTED WORLD. THINK LIKE AN ARTISAN. THE PERSON IN THE MIDDLE AGES BEFORE MASS MANUFACTURING WHO MADE EVERY ITEM ONE OFF, EVERY ITEM INDIVIDUALLY. THEY MADE EVERY SADDLE, EVERY UTENSIL, EVERY PAIR OF SHOES, EVERY ITEM OF CLOTHING, EVERY FORK SPOON AND PLACE INDIVIDUALLY. WHAT DID THE BEST ARTISANS DO? THEY CARVE INITIAL INTHE THEIR WORK WHEN THEY WERE DONE. DO YOUR JOB EVERY DAY AS IF YOU BROUGHT SO MUCH EXTRA TO IT. SO MUCH VALUE ADD YOU WANTED TO CARVE YOUR INITIAL INTO IT AT THE END OF EVERY DAY. THINK LICK AN ARTISAN TAKE PRIDE. THINK LIKE JEFF BISO AT AMAZON.COM. JEFF SIGNED EVERY ANNUAL SHAREHOLDER LETTER. OUR EVERY SHAREHOLDER LETTER, THE FIRST SHAREHOLDER LETTER HE EVER SENT FROM AMAZON.COM, 16 YEARS AGO. HE ALWAYS INCLUDES THAT. BECAUSE THE MESSAGE IS WE'RE STILL IN YEAR 1 OF THE INTERNET. THE MESSAGE IS, AS REED HOFFMAN FROM LINKEDN POINTS OUT, THE MESSAGE IS ALWAYS BE IN BETA. ALWAYS BE IN THAT MODE WHERE YOU'RE KIND OF 80% DONE WITH THAT PROJECT OR THAT SOFTWARE OR THAT EXPERIMENT YOU THROW IT OVER THE FENCE AND YOU SEE WHAT YOUR COLLEAGUES OR CUSTOMERS THINK OF IT AND THEY THROW IT BACK THEN YOU IMPROVE IT AND THEN YOU THROW IT BACK GHEN OVER THE FENCE. ALWAYS BE PERSONALLY IN BETA. ENGINEERING, LEARNING, RELEARNING, AND RE-ENGINEERING FOR THE REST OF YOUR LIFE. I'M ALWAYS IN BETA. THERE'S ONLY ONE FOUR LETTER WORD IN SILICON VALLEY THAT I KNOW OF, IT ISN'T FOUR LETTERS BUT IT STARTS WITH AN F, THAT IS FINISHED. IF YOU EVER THINK YOU'RE FINISHED, YOU ARE TRULY FINISHED. ALWAYS BE IN BETA. LASTLY, THINK LIKE A WAITRESS AT PERKINS PANCAKE HOUSE, MY FAVORITE IN MY HOMETOWN MINNEAPOLIS. I WAS HOME WORKING ON THE BOOK, LAST YEAR AND I HAD BREAKFAST WITH MY BEST FRIEND KEN GRIER. SUNDAY MORNING 7 A.M., I ORDER THREE BUTTER MILK PANCAKES AN SCRAMBLED EGGS, KEN ORDERED THREE BUTTER MILK PANCAKE AND FRUITN'T AND AFTER 15 MINUTE IT IS WAITRESS CAME WITH OUR TWO PLACE, AND ALL SHE SAID TO KEN WAS I GAVE YOU EXTRA FRUIT. SHE GOT A 50% TIP. WHY? BECAUSE THAT WAITRESS DIDN'T CONTROL MUCH BUT SHE CONTROLLED THE FRUIT LAID L. AND THAT WAS HER EXTRA. THAT WAS HER WAY OF ADDING HER LITTLE EXTRA IN THE LITTLE YIEWN VRS SHE CONTROLLED, WHAT WAS THAT WAITRESS DOING? SHE WAS THINKING ENTREPRENEURIALLY. IN HER OWN LITTLE WAY. ALWAYS THINK LIKE AN IMMIGRANT, TAKE PRIDE, STAY HUNGRY, THINK LIKE AN ARTISAN, TAKE PRIDE, ALWAYS THINK LIKE A STARTER UPPER AND KEEP YOURSELF IN BETA. AND ALWAYS THINK LIKE A WAITRESS AT PERKINS PANCAKE HOUSE ON A SUNDAY MORNING. BE ENTREPRENEURIAL. FRIENDS, WE ALL NOW TRULY DO LIVE IN GARY SON KEILOR'S LAKE -- WHERE THE MEN ARE STRONG, ALL THE WOMEN ARE BEAUTIFUL, AND ALL THE CHILDREN NEED TO BE ABOVE AVERAGE. THANK YOU VERY MUCH. [APPLAUSE] >> THANK YOU. >> THANK YOU, TOM FOR A WONDERFUL PRESENTATION. I'M SURE PEOPLE WILL REFLECT ON THOSE RECOMMENDATIONS FOR MANY DAYS TO COME. WE HAVE TIME FOR QUESTIONS AN THERE ARE MICROPHONES IN BOTH AISLES AN PEOPLE ARE INVITED TO APPROACH THEM SO THOSE WATCHING BY VIDEO CAN ALSO HEAR. BY WAY, THERE WILL BE AFTER WE CLOSE DOWN AT ABOUT 4 O'CLOCK HERE A RECEPTION IN THE LIBRARY WHERE YOU WILL HAVE A CHANCE TO SPEAK A LITTLE FURTHER WITH MR. FRIEDMAN. LET'S GO TO A QUESTION HERE. >> I REALIZE THAT EVERYONE SHOULD BE AVERAGE OR ABOVE, BUT THAT'S NOT GOING TO HAPPEN. SO WHAT HAPPENS TO THE PEOPLE WHO ARE BELOW AVERAGE AND WE'LL ALWAYS HAVE SOME OF THEM? >> THAT'S VERY TRUE, VERY GOOD QUESTION. ALWAYS HAVE, ALWAYS WILL. THE POINT IS IF WE KEEP THE TIP OF OUR SPEAR REALLY STRONG, KEEP TRYING TO ADDING PEOPLE ABOVE AVERAGE, WE WILL PULL ALONG EVERYBODY ELSE JUST FINE. THAT'S NUMBER ONE. NUMBER TWO, MAYBE I'M NAIVE BUT I ACTUALLY THINK EVERYONE IS ABOVE AVERAGE AT SOMETHING. SO MY MOM WAS IN A NURSING HOME FOR TEN YEARS WITH ALZHEIMER'S. HOW MANY TIMES I WOULD HAVE PAY EXTRA FOR THAT NURSE, MALE OR FEMALE, WHO PUT A SMILE ON MY MOM'S FACE, DIDN'T JUST DO THEIR JOB, DIDN'T JUST PUNCH THEIR TICKET, BUT PUT A SMILE ON MY MOM'S FACE, HOW MUCH EXTRA WOULD PEOPLE PAY FOR A NURSE WHO DOES THAT? HOW MUCH EXTRA WOULD YOU PAY TO GO INTO A WINE STORE AND THE PERSON ACROSS THE COUNTER WASN'T JUST SCRATCHING THEIR BELLY AND MAKING CHANGE BUT ACTUALLY WAS AN EXPERT ON WINE AND COULD RECOMMEND SOMETHING FOR YOU. SO THERE'S A LOT OF WAYS, ACTUALLY, TO BE ABOVE AVERAGE. EVEN WHAT LOOKS TO BE MUNDANE TASKS. I THINK WE'RE GOING TO HAVE TO THINK ABOUT HOW WE INSPIRE PEOPLE TO DO THAT, IT'S INSPIRATION NOT JUST EDUCATION. AND TO UNDERSTAND THAT BY BRINGING THAT EXTRA THEY CANNOT ONLY HAVE HIGHER WAGES BUT ALSO ENSURE JOB LONGEVITY, NOT AN EASY TASK. I RECOGNIZE THAT AND I ALSO RECOGNIZE NOT EVERYBODY IS GOING TO BE. BUT THE BIGGER CONCENTRATION THAT WE HAVE THE BETTER WE'RE GOING TO DO IT FOR SOCIETY. >> NOT EVERYBODY'S EVER GOING TO ACHIEVE THAT. >> I UNDERSTAND THAT. I UNDERSTAND THAT. BUT I THINK THE RIGHT MESSAGE IS LET'S ALL ASPIRE TO IT, NOT EVERYONE IS GOING TO DO IT SO WHATEVER. >> OVER HERE. >> YOU MENTIONED LEADER ARE TALKING ABOUT TRIVIAL THING LIKE DETAILS OF PRIVATE EQUITY INSTEAD OF WHAT'S IMPORTANT. WHAT CHANGES DO YOU MAKE IN THE SYSTEM SO LEADERS SPEND MORE TIME ADDRESSING WHAT'S IMPORTANT AND WORRYING ABOUT WHAT'S IMPORTANT? >> THAT'S A REALLY GOOD QUESTION. THAT'S A REALLY -- IT'S A CENTRAL QUESTION OF THE TIME RIGHT NOW. NEXT QUESTION OVER HERE, PLEASE. [LAUGHTER] GOT TO ANSWER. THAT'S WHAT THE SECOND HALF OF THE BOOK IS ABOUT WHICH I HAVEN'T HAD TIME TO TALK ABOUT. WE ARGUE THE FOLLOWING, THAT WE DIDN'T GET HERE AS A COUNTRY BY ACCIDENT. WE ACTUALLY GOT HERE BECAUSE HAD A FORMULA FOR SUCCESS. DON'T QUOTE ME ON THIS OUT OF THIS ROOM BECAUSE IT'S A GAINS THE LAW TO SAY THIS. WE HAD AN INDUSTRIAL. WE DIDN'T CALL IT THAT. WE HAD A FORMULA FOR SUCCESS THAT GOES BACK TO HAMILTON AN LINCOLN AND TEDDY ROOSEVELT AND FRANKLIN ROOSEVELT AND NIXON, WHAT WAS THAT FORMULA FOR SUCCESS? FIVE PARTS WESM SAID FIRST WE WILL ALWAYS EDUCATE OUR PEOPLE UP TO AND BEYOND WHATEVER THE TECHNOLOGY IS SO THEY CAN GET THE MOST OUT OF IT. THE COTTON GIN, -- I GOT TO SAY ONE THING. I WAS ON JEOPARDY LAST WEEK. THE SCARIEST THING IN THE WORLD. I HAVE BEEN GIVING THIS SPEECH A YEAR AND I REFER TO COTTON GIN AND I MISSED ELI WHITNEY WHO INVENTED IT. SCARIEST, WARS I HAVE COVERED, I HAVE BEEN SHOT AT, THAT WAS SCARY. ANYWAY, SO FIRST WE EDUCATED OUR PEOPLE UP TO AND BEYOND WHATEVER THE TECHNOLOGY WAS SO COTTON GIN WITH UNIVERSAL PRIMARY EDUCATION WHEN IT WAS THE FACTORY UNIVERSAL HIGH SCHOOL EDUCATION, NOW IT IS THE KNOWLEDGE ECONOMY AND COMPUTER WE NEED UNIVERSAL POST SECONDARY EDUCATION. THAT IS THE FIRST THING. WE GOT RIGHT. SECOND, WE HAD THE WORLD'S BEST INFRASTRUCTURE. ROADS, AIRPORT, TELECOM, BANDWIDTH TO ENHANCE COMMERCE AND INNOVATION. THIRD, WE HAD THE WORLD'S IN THIS CENTURY MOST OPEN IMMIGRATION POLICY. I NEED ONLY LOOK OUT HERE TO SEE THE RESULTS. 40% OF THE NEW COMPANIES IN SILICON VALLEY EVERY YEAR, FOUNDED BY FIRST OR NEW OR FIRST GENERATION IMMIGRANTS. FOURTH, WE HAD THE BEST RULES AN INSTITUTIONS TO ENHANCE RISK TAKING AND PREVENT RECKLESSNESS. LASTLY, WE HAD THE MOST GOVERNMENT-FUNDED RESEARCH TO PUSH OUT THE BOUNDARIES OF SCIENCE AND TECHNOLOGY AND I WAS TALKING ABOUT THIS INSTITUTION TO PUSH OUT THE BOUNDARIES OF PHYSICS AND BUYOLOGY, CHEMISTRY, AND MATERIAL SCIENCE SO OUR BEST INNOVATORS COULD PLUCK THE BEST FLOWERS AND TURN THEM INTO GREAT NEW COMPANIES THAT GROVE GROWTH AND EMPLOYMENT. THAT WAS OUR FIVE PART FORMULA FOR SUCCESS. THAT'S HOW WE GOT HERE. WE HAD THE GREATEST PUBLIC PRIVATE PARTNERSHIP IN THE HISTORY OF THE WORLD. LET'S LOOK AT OUR FIVE PART FORMULA TODAY. EDUCATION, WELL ACCORDING TO THE EXAMS FOR 15-YEAR-OLDS WE'RE ABOUT 25th IN THE WORLD MATH AND SCIENCE AND READING. WE'RE WITH ARGENTINA AND SLOVENIA, LOVELY COUNTRIES BUT NOT OUR HISTORIC PEERS, OKAY? IMMIGRATION, DID YOU FOLLOW THE REREPUBLICAN DEBATE? WHO COULD ELECTRIFY MORE MEXICANS TRYING TO COME ACROSS THE BORDER BASICALLY. I SEE YOU AN ELECTRIC FENCE AND I RAISE YOU AN ELECTRIC FENCE. THE BASIC MESSAGE WE SEND TO PEOPLE IS COME HERE, GET EDUCATED, AND THEN GET THE HELL OUT OF OUR COUNTRY. COME HERE, GET A Ph.D. IN SCIENCE, CHEMISTRY, BIOLOGY AND THEN PLEASE GO HOME. PLEASE GO HOME AND START A COMPANY THAT WILL COMPETE WITH US. DON'T COLLABORATE WITH THE PEOPLE YOU MET HERE GOD FOR GID. INFRASTRUCTURE, I FLEW FROM HONG KONG TO LAX THAT'S LIKE FLYING FROM THE JET TONS TO THE FLINT STONES. LAX IS ONE OF THOSE 50s DINERS LIKE THEY GOT IN BETHESDA. ONLY IT WASN'T DESIGNED THAT WAY. IT LITERALLY IS A '50s DINER. RULES AN REGULATIONS, INSTITUTIONS, HOW DID YOU LIKE THAT SUB PRIME CRISIS. OH, YOU MAKE $15,000 AND YOU WANT TO BUY AN $800,000 HOME AND THE ONLY ID IS YOUR DELTA SKY MILES CARD? NO PROBLEM. YOU GET A MORTGAGE. GOVERNMENT FUNDED RESEARCH. FRANCIS ELUDED TO IT. IT LOOK LIKE -- THAT GRAPH LOOKS LIKE AN EKG HEADING FOR A HEART ATTACK. THE YOU THINK ABOUT IT, THE FIVE FORMULA THAT MADE US GREAT IS ERODING ON ALL SIDES HERE. WHENEVER I HEAR SOMEONE SAY I WAS ONE LONELY GUY OUT THERE, I DID THIS ALL BY MYSELF, KEEP THE GOVERNMENT OUT OF MY LIFE, YOU DID NOTHING BY YOURSELF. YOU ARE THE PRODUCT OF THE GREATEST PUBLIC PRIVATE PARTNERSHIP IN THE HISTORY OF THE WORLD. DID YOU CREATE THOSE COURTS BY YOURSELVES DID YOU INSTALL THAT BANDWIDTH BY YOURSELF? YOU DID NOTHING BY YOURSELF. WE SAW A GREAT STORY IN THE BOOK, REPUBLICAN CONGRESSMANn@o FROM SOUTH CAROLINA TELL AS WNDFUL STORY ON ROAD GIVING A LECTURE IN A TOWN HALL IN A SMALL TOWN IN SOUTH CAROLINA. ELDERLY MAN SAID KEEP YOUR GOVERNMENT HANDS OFF MY MEDICARE. BOB SAID WHERE DO I START? IF THAT'S WHAT WE THINK, IF WE THINK OUR OWN GOAL IS TO GET GOVERNMENT SMALL ENOUGH AS GROVER SHAMEFULLY SAID SO WE CAN DROWN IT IN A BATHTUB, I WOULD LIKE TO BE AROUND ONE DAY WHEN THAT CALLS 911 AND NOBODY ANSWERS. SO THAT'S THE FORMULA. EITHER WE GET BACK TO THAT OR WE'RE GOING TO BE IN THIS VERY SLOW DECLINE. RELATIVE TO YOUR FOREIGN POLICY WE'RE GOING TO LOOK GREAT. AND RELATIVE TO PROBLEMS CHINA AND INDIA ARE GOING TO ENCOUNTER, WE'RE GOING TO BE FINE BUT WE'LL BE THE FIRST GENERATION THAT DOES NOT PASS ON THE AMERICAN DREAM TO OUR KIDS. , A HIGHER STANDARD OF LIVING. THANK YOU. OVER HERE. >> PROBLEM SOLVING FACILITATOR, ONE THING I SEE IS THAT -- >> CLOSER TO THE MIC, I'M DEAF. >> AS A TRAINED CROW YEAHTIVE PROBLEM SOLVING FACILITATOR, ONE THING I SEE HAPPENING IS UNLESS YOU HAVE A COMPANY THAT'S GOT IN ITS VISION THAT IT WANTS TO BE ON THE CUTTING EDGE A LOT OF COMPANIES SAY YOU SELL THEM ON CREATIVITY AND COLLABORATION AND THESE THINGS. BUT THEY SAY THAT'S NICE, THEY KIND OF NOD THEIR HEADS BUT THEY'RE NOT REALLY WILLING TO MAKE THE FINANCIAL OR TIME COMMITMENT AND EVEN IF THEY ARE, IT GOES THROUGH PART OF THE PROCESS AN FALTER BACK. WHAT WOULD BE YOUR SUGGESTION AS TO ADDRESSING THIS PROBLEM? >> BANKRUPTCY, BECAUSE THAT'S WHAT WILL HAPPEN. REALLY. IN A HYPERCONNECTED WORLD, I MEAN, THE MARKET WILL TAKE CARE OF THAT. I'M REALLY DEAD SERIOUS. I HAVE A FEW RULES ABOUT THE FLAT WORLD. AND ONE IS WHEN THE WORLD IS FLAT WHATEVER CAN BE DONE WILL BE DONE. THE ONLY QUESTION IS WILL IT BE DONE BY YOU OR TO YOU. BUT JUST DON'T THINK IT WON'T BE DONE. IF IT CAN BE DONE, IF YOU HAVE A GOOD IDEA AT NIH PROMISE ME YOU WILL PURSUE IT IMMEDIATELY BECAUSE SOMEONE AT YOUR EQUIVALENT IN INDIA, RUSSIA OR FRANCE OR BRAZIL, WILL HAVE IT A SECOND LATER. SO THAT'S RULE NUMBER ONE. RULE NUMBER 2, I'M A BIG BELIEVER, THAT THE WORLD IS NO LONGER DIVIDED BETWEEN DEVELOPED AND DEVELOPING COUNTRIES. I THINK IT'S GOING TO BE DIVIDED BY HIE AND LIEs. HIGH IMAGINATION ENABLING COUNTRIES AN LOW IMAGINATION ENABLE NABLELING COUNTRIES. IF I HAVE A SPARK OF AN IDEA, IF I JUST HAVE, A SPARK, I CAN GO TO DELTA AND TAIWAN, THEY WILL DESIGN IT FOR ME, OVER TO -- GETS ME A CHEAP CHINESE MANUFACTURER. SEIALITY, JEFF AT AMAZON DOES MY FULFILLMENT AND DELIVER RIRKS FREELANCE.COM AND CONGRATULATIONS LIST WILL GET ME MY ACCOUNTANT. THEY'RE ALL INCREASING COMMODITIES. WHAT WE NEED TO BE AS A SOCIETY IS A SOCIETY THAT'S ENABLING THIS. THAT'S WHY MY VISION FOR AMERICA, MY OWN VISION, IS THAT AMERICA WOULD BE FOR THE WORLD WHAT CAPE CANAVERAL WAS FOR AMERICA. CAPE CANAVERAL, YOU'RE TOO YOUNG TO REMEMBER, I CAN TELL, WAS A PLACE WE LAUNCHED OUR ONE NATIONAL PROJECT, OUR ONE NATIONAL MOON SHOT WHICH IS REALLY PULLED ALONG A LOT OF SCIENCE AN TECHNOLOGY COMMUNITY BACK IN THE LATE '50s AND '60s, EARLY '70s. WE'RE NOT GOING TO DO THAT ANY MORE. WHAT I WANT AMERICA TO BE IS THE LAUNCHING PAD, WHERE EVERYONE IN THE WORLD WILL WANT TO COME AND LAUNCH THEIR OWN MOON SHOT. I WANT THEM TO COME HERE BECAUSE WE HAVE THE BEST IP LAWS, BEST EDUCATION, BEST INFRASTRUCTURE, BEST RULE OF LAW, MOST GOVERNMENT FUNDED RESEARCH AND MOST OPEN IMMIGRATION POLICY, SO THEY WILL COME HERE TO START SOMETHING OR AS PART OF THEIR GLOBAL SUPPLY CHAIN, THEY WANT A SLICE HERE. IF WE JUST GET EVERYONE WANTING TO COME HERE TO START SOMETHING, WE'RE GOING TO BE FINE. BUT TO SIT BECOME AND SAY NO VISION, JUST CUT TAXES, DEREGULATE THINGS WITHOUT THINKING ABOUT THAT FIVE PART FORMULA FOR SUCCESS, THAT TO ME IS NOT A PRESCRIPTION FOR SUCCESS. SO THANK YOU FOR YOUR QUESTION. >> LAST QUESTION, FROM BRUCE. >> YOU HAVE THOUGHT ABOUT TEACHERS AN TEACHING. ULT MULTIPLE CONNECTIONS TO THE TEACHING COMMUNITY. THERE'S ALMOST A BIPARTISAN CONSENSUS WE NEED TO FOCUS ON TEACHERS. WE NEED TO FIND A WAY TO REWARD TEACHERS HIGHLY EFFECTIVE, WE NEED TO ENCOURAGE TEACHERS WHO AREN'T VERY EFFECTIVE TO9JiD OTHER THINGS TO DO WITH THEIR LIVES. THIS IS NOT A POPULAR VIEW AMONG THE TEACHING COMMUNITY. THERE'S A BACKLASH THAT SAYS DON'T MEASURE US, DON'T MEASURE THE KIDS, LEAVE US ALONE. IT WILL ALL BE OKAY. JUST WONDERING, WITH YOUR CONNECTIONS FOR THE TEACHING COMMUNITY, HOW DO YOU SEE THIS? >> I'M MARRIED TO A BETHESDA PUBLIC SCHOOLTEACHER WHO RETIRED LAST YEAR. MY DAUGHTER IS A TEACHER IN THE D.C. SCHOOL SYSTEM SO WE THINK ABOUT THIS A LOT. AND SO FIRST OF ALL, LET ME SAY SOMETHING ON BEHALF OF TEACHERS FOR WHOM I HAVE A LOT OF SYMPATHY. THE BIGGEST EDUCATIONAL PHILANTHROPISTS IN AMERICA TODAY ARE PUBLIC SCHOOL TEACHERS. I DO NOT KNOW ONE PUBLIC SCHOOLTEACHER THAT DOESN'T REACH INTO HIS OR HER POCKET TO BUY CHALK, CRAYONS PAPER, CUP CAKES FOR THEIR KIDS EVERY YEAR. WE SHOULD ALWAYS REMEMBER THAT. THEY ARE THE BIGGEST EDUCATIONAL PHILANTHROPISTS IN THIS COUNTRY. SECOND THING, I HAVE SEEN THIS THROUGH MY DAUGHTER EXPERIENCE IN THE D.C. SCHOOL SYSTEM, WHO AMONG US WOULD LIKE TO HAVE SOMEONE COME INTO YOUR LAB TIME AS YEAR 30 MINUTES, WATCH YOU OPERATE IN YOUR LAB AN RATE YOUR EFFECTIVENESS AS A SCIENTIST AND YOUR ENTIRE ADVANCEMENT AND YOUR ENTIRE PAY WOULD BE DETERMINED BY THOSE FIVE VISITS? ANY TAKERS? SO WHEN WE TELL TEACHERS YOU GOT TO BE EVALUATED YOU CAN'T JUST GET TENURE, THINK HOW SCARY THAT IS. I'LL TELL YOU WHAT IT'S DOING. IT'S DRIVING YOUNG PEOPLE OUT OF EDUCATION. BECAUSE THEY SEE THAT AND IT CAN BE -- YOU CAN GET A BAD EVALUATOR, YOU CAN GET A BAD MORNING WITH YOUR PRINCIPAL, IT IS SO SUBJECTIVE. SO THOSE CAVEATS ASIDE, LET'S TAKE UP YOUR REALLY IMPORTANT QUESTION. OBVIOUSLY ONE OF THE FIRST THINGS WE NEED TO DO IS RECRUIT OUR TEACHERS FROM THE TOP ONE-THIRD OF GRADUATING CLASSES AS THE MOST EFFECTIVE SCHOOL SYSTEMS DO KOREA, SINGAPORE, WE DONE DO THAT. BEING A TEACHER TENDS TO BE A SORT OF THE LAST OPTION FOR SOME PEOPLE. DIDN'T GET INTO LAW SCHOOL, ENGINEERING, WENT TO BE A TEACHER. FRANCIS REFERRED TO MY HIGH SCHOOL JOURNALISM TEACHER WHO DID INSPIRE ME TO GO INTO JOURNALISM, THE ONLY COURSE I HAVE TAKEN. AND I WAS A BENEFICIARY, MY GENERATION OF THE ABSENCE OF WOMEN'S LIBERATION. SO THESE INCREDIBLY TALENTED WOMEN WHO COULDN'T THINK OF INVESTMENT BANKS WENT INTO TEACHENING MY GENERATION WERE THE BENEFICIARIES OF THAT. AND PATTY STEINBERG MY JOURNALISM TEACHER WOULD HAVE BEEN EDITOR OF NEW YORK TIMES IN A DIFFERENT ERR RA. WE NOW HAVE THE FIRST FEMALE EDITOR. CLEARLY WE NEED TO RECRUIT BETTER TEACHERS. AND CLEARLY WE DO NEED A SYSTEM OF EVALUATION. THE OTHER SIDE OF THE EVALUATION, HEY I HAVE BEEN HERE THREE YEARS I GET LIFE TENURE. I DON'T HAVE THAT IN ON MY JOB AND YOU DONE HAVE THAT IN YOUR JOB SO FINDING A FAIR EVALUATION SYSTEM I THINK IS THE RIGHT WAY TO GO. I TOTALLY SUPPORT THE EDUCATION REFORM INITIATIVE. I WOULD DECLARE EVERY PUBLIC SCHOOLTEACHER'S PAY A FREE FEDERAL INCOME TAX. GIVE THEM A RAISE, THEN YOU GET MORE YOUNG PEOPLE ALSO TO WANT TO GO INTO TEACHING RATHER THAN PRIVATE EQUITY. FRIENDS DON'T LET FRIENDS GO INTO FINANCE. THAT IS REALLY ONE OF OUR CARDINAL RULES IN THE BOOK FROM -- BUT HERE IS WHERE I COME DOWN. THE THEME OF THE BOOK IS ALL THE PROBLEMS WE FACE TODAY. EDUCATION, ADJUSTING TO THE HYPERCONNECTED WORLD. DEBT AND DEFICIT, WHICH I DIDN'T TALK AND ENERGY AND CLIMATE, ARE COLLECTIVE GOODS PROBLEMS. THESE ARE PROBLEMS THAT WE CAN NO LONGER ADDRESS UNLESS WE ACT COLLECTIVELY. UNLESS WE DO -- THE ONLY WAY WE CAN ADDRESS THESE IS IF WE DO BIG HARD THINGS TOGETHER. AND OUR VIEW IS THAT SAME ON EDUCATION. YES, WE DO NEED BETTER TEACHERS AND WE DO NEED TEACHER REFORM ON EVALUATION. THAT'S NOT JUST -- THAT REALLY STARTS THERE. BUT THE SECOND THING WE NEED, WE NEED BETTER PARENTS. WE NEED PARENTS WHO ASK THEIR CHILDREN EVERY DAY WHAT DID YOU DO IN SCHOOL TODAY, HOW WAS YOU DAY, DID YOU DO YOUR HOME WORK, NO YOU'RE NOT GOING -- ON FACEBOOK, YOU'RE NOT GOING TO DO SOCK, YOU'RE GOING TO DO THIS. WE -- ONE OF WORST MOVIES EVER MADE WAS THIS MOVIE RACE TO NOWHERE ABOUT OUR KIDS ARE TOO STRESSED. JOHNNY NEEDS TO BE IN FACEBOOK A LITTLE BIT AND PLAY IN SOCCER ON SATURDAY. STRESS? THAT'S NOT STRESS. STRESS WILL NOT BE UNDERSTANDING THE FIFTH CHINESE ACCENT OF YOUR FIRST BOSS. THAT WILL BE YOUR FIRST BOSS. NOT THAT YOU MISSED OUT ON FACEBOOK FOR A FEW HOURS. WE NEED BETTER PARENTS. SECOND WE NEED BETTER NEIGHBORS. WE NEED NEIGHBORS WHO CARE ABOUT THE QUALITY OF PUBLIC SCHOOL WHETHER CRIDZ IN IT OR NOT. TONS OF DATA SHOW A DIRECT CORRELATION, DROP OUTS, PRISON POPULATION, NUMBER OF PRISONS YOU HAVE TO BUILT. SO JUST YOU WANT TO BUILD PUBLIC SCHOOLS OR DO YOU KNOW TO BUILD PRISONS? AND CALIFORNIA IS THE POSTER CHILD OF THIS. I HEARD TALK THIS AFTERNOON THAT SAID LOS ANGELES TODAY IS AMERICA JUST BEFORE EVERYBODY ELSE. THAT'S WHY I WATCH CALIFORNIA CAREFULLY. BETTER PARENTS, BETTER TEACHERS, BETTER NEIGHBORS, BETTER BUSINESS LEETDERS THAT SAY I'M GOING TO INVEST IN THIS SCHOOLS NOT JUST OUT SOURCE THE JOB BECAUSE I CAN OUT SOURCE THE JOB. LASTLY, WE NEED BETTER STUDENTS. WE TELL THE STORY IN THE BOOK THE NEW YORK TIMES STORY ABOUT A YOUNG WOMAN WHO SENDS 40,000 TEXT MESSAGES A MONTH, WONDERING WHY SHE WAS GETTING (INDISCERNIBLE).