Notre Dame Forum on The Global Marketplace and the Common Good: Thomas L. Friedman

global economy thank you for joining us at this time please welcome to the stage notre dame president father john jenkins thank you warmest welcome everyone to the signature event for the 2010-2011 Notre Dame form the global marketplace and the common good Notre Dame’s forums strive to bring together the highest scholarship across the discipline with the resources of a moral and religious tradition to address the great issues of our day yesterday’s election perhaps confirmed the old political line it’s about the economy stupid we face the greatest economic challenges in this country in 75 years and those challenges are shaped to a large extent by the dynamics of a global economy about which tonight’s speaker has written eloquently globalization is in many ways a violent process that creates unemployment in Michigan and Indiana but at the same time allows millions in India and China to move out of the shadow of rural poverty into the urban middle class the dynamics of globalization raise important questions for us what ends ought our economic structures to serve what is genuine human progress and how do we assess it what role should markets businesses and various professions play an achievement that the advancement of societies and the common good few could are better equipped to help us think about these questions than our distinguished speaker Thomas Friedman we welcome him warmly to Notre Dame and I’m very happy to introduce now our moderator tonight another widely respected veteran journalist Norah O’Donnell the chief Washington correspondent for MSNBC is also a contributing correspondent for NBC’s Today and a regular news anchor for weekend today she is an Emmy award-winning journalist and New York Times bestselling author since she began at NBC in 1999 O’Donnell has covered everything related to politics from primaries and party conventions to national elections and we are very fortunate that they have her the day after our election no doubt she had little sleep last night and as if she needed more to recommend her to this audience miss O’Donnell an irish-american was hosted has hosted nbc’s coverage of the new york city st Patrick’s Day parade since 2007 that will score her a lot of points with this audience we’re extremely grateful that was she was able to come on such short notice when Andrea Mitchell had to change her plans we thank you for coming and I asked you to join me in a very warm greeting for Norah O’Donnell well thank you Father Jenkins for that very warm introduction welcome everyone I am thrilled to be here delighted to be here it is true that i’m a graduate of georgetown university but i can say without hesitation this is a beautiful school it really is and you guys are also fortunate to be part of this community and congratulations to father Jenkins on his exemplary leadership it’s true I’m not Andrea Mitchell but I am thrilled to be here we had a late night last night wow andrea was up til 330 i was up till about two o’clock and then we were both on the Today show this morning and then Andrea show was right during the president’s press conference today so she sends her very best but we’re going to have an excellent discussion tonight my job as a father mentioned is to serve as moderator or enforcer if you will of tonight’s discussion and we’re going to talk about the global marketplace and the common good we’re going to start with this presentation by Thomas Friedman then we’re going to have a roundtable discussion with some folks from Notre

Dame here Dean Carolyn Wu Shan aghast a senior here and professor gary anderson and then it’s your turn that’s right you get an opportunity to question Tom Friedman so get your questions ready and certainly I’m sure his presentation will also encourage a lot of those questions as well so let’s get started it’s now my pleasure to introduce our featured speaker tonight mr. Thomas Friedman Tom Friedman is a new york times columnist who has won the Pulitzer Prize three times and written for best-selling books his subjects range from the need for a green revolution to Middle East conflicts and from American political dysfunction to globalized commerce most journalists like myself sort of have some mixed feelings for Tom because we’re insanely jealous of him it’s true he’s got talent he’s success successful but of course we begrudgingly accept that he has been everywhere interviewed just a out everyone and of course written about it in clear and concise language that makes us all smarter so we are so fortunate to have him here tonight on a personal note I also have to tell you too that when I was coming here I mentioned to someone that I work with that I was doing this event with Tom Friedman and they said well you know his wife so wonderful she’s a first grade teacher a reading teacher in Bethesda Maryland and just talked about how she’s so great with all the kids so it doesn’t surprise me to hear that that his wife is really well Tom Friedman is a star on the world his wife is really a star in Washington DC for what she does with children and teaches us all some of the most important lessons in life our children which is the love of learning so without further ado please welcome Tom Friedman thank you very much thank you thank you very much it’s a treat to be here at Notre Dame mrs. my first visit to the campus I know you suffered a great tragedy in your community this week and I want to express my condolences before I begin it wouldn’t be appropriate otherwise but um i am i’m really honored this is a you know when father jenkins and the notre dame community invited me to come here and this wasn’t the sort of normal speech I’ve given before it really required me to to to do some homework to try to really put together two themes that I have written about separately one is a globalization and the flat world and the other is the issue of values ethics in international affairs today and particularly in commerce so I really couldn’t figure out what to say so I decided to get to speeches and the first is really going to be about the flat world what do I mean by that what is the world we’re living in right now because I really can’t make sense of the second the issue of values and ethics in this world unless you really know the kind of platform that I think we’re operating on every time I try to do this I’m reminded the story when they were digging the tunnel under the English Channel you know to connect Great Britain Europe and they put it out to bid they got bids of a three billion euro from one contracting company 3.1 billion euro from another got a bid for a hundred thousand euro to dig the channel from the firm of Goldberg and Cohen in the East End of London and for fiduciary reasons they had to check it out santak team out there knocked on the door Goldberg answered cone was on the road they said to mr. Goldberg how can you possibly dig a tunnel under the English Channel for a hundred thousand euro he said the sahaba Goldberg will start with a shovel on one side cones will start with a shovel on the other and will dig until we meet what if you don’t meet so you live two tunnels so I I hope these lectures will meet otherwise you’ll have to lecture circuit so first let me talk a little bit about the flat world young and and what exactly I mean by that now the first thing I have to explain is you know I made this discovery completely by accident you know the world is flat I wish I could tell you is all in my head and just kind of came out he was a complete accident I became the times foreign affairs columnist in january nineteen ninety-five in between january nineteen ninety-five in September 11 2001 my Colin really focused on globalization that was really my interest after nine eleven I spent three years totally focused on trying to understand the roots of 911 and he

started doing documentaries for the discovery channel we didn’t want on the roots of 911 we did one on the wall is really built in the West Bank and in February of 2004 we are sit around with our discovery team trying to think of what to do our next documentary on and at the time the issue of why does everybody hate America was a hot issue so I said let’s do that let’s do a documentary and why everybody hates America how should we do it well I had this this how it all started I had this crazy idea that what we should do is go to call centers all over the world and interview foreigners young people who spend their days imitating Americans on what they thought of America doesn’t make a very interesting kind of double mirror you know John by de juan by night you know and and we’re literally budgeting that documentary out when John Kerry came out with his blast against Benedict Arnold CEOs who engage in outsourcing and suddenly the issue of outsourcing just exploded onto the world stage so I said to discover in time up why don’t we just go to Bangalore India the capital of outsourcing and let’s do a document we called the other side of outsourcing and try to explain this to every American so that’s what we did set off februari first 2004 to Bangalore India the capital of outsourcing well we shot about 60 hours of film over a course of 10 11 days and across those 10 11 days I got gressive Lee sicker and sicker and it was not the food it was somewhere between the Indian entrepreneur who really really said you know mr. Friedman I could read your x-rays from here in bangalore and the indian entrepreneur who wanted to write my new software from bangalore and the indian entrepreneur who wanted to trace my lost luggage on delta airlines from bangalore that i realized that while i had been sleeping while had been off covering the nine eleven wars something really big had happened in that globalization story and I had completely missed it and I I kept asking all of them explain to me what is the platform that’s enabling all of this so our last interview was with a dear friend of mine nandan nilekani who is the CEO van of emphasis kind of the microsoft of india really india’s premier technology company he’d been away during the film he came back the last day and he was our last interview we came to his office he and i sat on the couch outside his office while the crew said their cameras up inside I’d my laptop on my lap and at one point none done said to me you know Tom the global economic playing field is being leveled the global economic playing field is being leveled and you Americans are not ready oh I wrote that down in my little laptop the global economic playing field is being leveled and you Americans are not ready well after the interview my mind was exploding that point got back in my Jeep got about our ride to my hotel and I just kept rolling over in my head what non Donna said the global economic playing field is being leveled then it thought you know what he’s really saying is a global economic playing field as being flattened and then in the crazy chemical way these things just happen it burst into my head that what nandan nilekani india’s premier engineer entrepreneur was telling me was that the world is flat and i wrote that down in my notebook the world is flat I got back to my hotel I ran up to my room I called my wife Nora blessedly referred to back in Bethesda Maryland and I said honey I am going to write a book called the world is flat she now says she thought that was a brilliant that’s not exactly how I recall the conversation but I did come home and say to my bosses at the New York Times ladies and gentlemen I need to go on leave immediately because my software the framework through which I look at the world is out of date I’m a basic engineer and it’s a Java world if you don’t give me a leave immediately I am going to write something really stupid in the New York Times it’s a great way to get a leave I have to tell you so they let me go in in june i turned the book in in december don’t try this trick at home kids and blew up my forearms along the way but in a burst it all came out now what’s the core thesis of this book because it’s very relevant to our discussion of ethics and morals tonight the core thesis is that there have been three great era of globalization first I call globalization one point oh he shrunk the world from a size large to a size medium lasted from 1492 tell the early 1800s the beginning of global arbitrage that year of globalization was built around countries you went global through your country spain exploring the new world Britain India France Portugal

Africa and East Asia the agent of globalization was the nation-state globalization 2 point 0 lasted from the early 1800s till the year 2000 it shrunk the world from size medium to size small that year of globalization was built around companies companies searching for markets and for labor you went global through your company the company was the dynamic agent of globalization well while I was sleeping maybe while you were sleeping we enter globalization three-point Oh from 2000 to the present it shrink in the world from size medium such an excuse me from size small to size tiny and flattening the global economic playing field at the same time only what’s really new really exciting and really terrifying is that this year of globalization is not built around countries they’re still important and it’s not built around companies that they’re still important no it’s really new unique different about this year of globalization is that it’s built around individuals for the first time in history individuals can now compete connect and collaborate globally as individuals that’s what’s new how did we get here well I go through ten flat nurs in the book i’m not going to talk about that tonight i’ll just talk about the three key ones the first was the pc what the pc did the personal computer was allow for the first time in the history of the world for individuals to author their own content in digital form now that sounds like a bunch of gobbledygook but let me disaggregate it for it because it’s really important what the PC allow individuals have been authoring their own content ever since cavemen in cave women etched on cave walls but with the pc suddenly individuals could author their own content words photo data spreadsheet video in digital form in the form of bits and bytes and once your content was in digital form it could be manipulated in so many more ways and sent so many more places that was the first flattener it was quickly followed by the second flattener that’s a date I think the most important date in modern history and that date is 8 9 95 Augustine 1995 because on that day a small start-up company in Mountain View California called Netscape went public and the world has never been and never will be the same since why is that what was netscape’s invention netscape’s invention was this little device called a browser and what this browser did was allow people to illustrate on a computer terminal everything that was locked away in internet files previously the exclusive domain of computer scientists and scientists the browser is what brought the internet to life and made it a tool of connectivity that could be used with equal facility by Grandma and Grandpa grandson and granddaughter but Netscape also did something else because in the morning of 8 9 95 Netscape went public and that triggered the dot-com boom and that triggered the dot-com bubble and that triggered the crazy absurd utterly ridiculous over investment of one trillion dollars that’s trillion with a tea into fiber optic cable we in a space of five years wired the world with fiber-optic cable so much that Shanghai and south been accidentally became next-door neighbors remember all those people on their laptop authoring their digital content suddenly thanks to all that fiber cable in five years they could send their digital content anywhere in the world virtually for free remember how it happened Netscape had an investment banker Morgan Stanley and they wanted the stock to be priced at $32 Jimmy Barksdale Netscape CEO said nominal if this fails I want it to be remembered as a twenty-dollar stalked Netscape opened on the morning of August ninth 1995 at 71 dollars and fifty cents it closed that day at 56 and we all

looked at that and we said whoa there is gold over them there hills and we went out and we bought every calm that moved you can’t fool me I know they’re in your 401 K s okay and when we did we accidentally funded the massive wiring of the world with fiber optic cable that then laid the basis for the third flattener third flattener was very quiet revolution you didn’t see it you kind of had to be a computer geek to appreciate it but it was a revolution in transmission protocols you know that alphabet soup of HTML and HTTP and XML and soap and Ajax you don’t need to know what any of them mean all you need to know is this in five years what all those transmission protocols did was make everyone’s computer and software inter operable now for all the young people here you just take that for granted see you weren’t at Notre Dame when they first got computers oh but father Jenkins he was here and he can tell you admissions admissions that computers and accounting got computers they got rid of the abacus down there and they got a computer you know um there was there was just one problem admissions got microsoft and accounting got SI p and they didn’t connect so whenever one of your parents didn’t pay tuition someone from accounting had to walk over with a piece of paper to someone in admissions just ask your parents one of them got CompuServe the other got AOL and they didn’t connect ok so this protocol revolution made everyone’s computer and software interoperable so no matter where you were living no matter what software you were running no matter what computer you Ron you could talk to someone through that internet on their computer with their software when you put all three of them together what you had was the crude makings of the flat world we created a platform by the early 2000s where subtly more people in more places could compete connect and collaborate with more other people for less money than ever before when I say the world is flat that’s what I mean we created a platform for multiple forms of collaboration and when we did we fundamentally changed the world we move the world from a world where value would be created in vertical silos by who you by who you by command and control went from a world of vertical silos of command and control to world where value would be created horizontally by who you connect and collaborate with friends are really going from a world of vertical to a world of horizontal and that shift from vertical value equation of command and control two horizontal value equation of connect and collaborate that shift is the mother of all inflection points it is the biggest inflection point I would argue since Gutenberg invented the printing press and you just happen to be here it is changing everything and that gives us to lecture number two because the first thing is changing now I really got to grab my notes first thing it’s changing is how how we think about ethics so let me start this conversation by telling you a story I five years ago I team taught a course at at Harvard actually Larry Summers and michael sandel there’s coming back from class one day I was at logan airport in boston and uh about five o’clock and i went to buy a magazine I should have bought two took him off the shelf and I went to the cash register to put it down and a woman was coming from here honestly I thought I got there first I put my magazines down and she said excuse me I was here first and she looked at me I know who you are today if that happened i’d say ma’am can i buy your lunch can i shine your shoes just don’t blog about me put me up in youtube

or Twitter about this incident I swear I thought I got there first okay what’s that about but that’s about is when the world got flat what it meant was that anyone who had a blog post was a journalist was a newspaper anyone who had a cellphone camera was a paparazzi and anyone who had a flip camera and access to youtube was a filmmaker well when everyone is a paparazzi a journalist and a filmmaker everybody else is a public figure welcome to my world okay everyone else is a public figure and when that happens ethics suddenly go nuclear why is that I recommend a book to you from one of my teachers dove sidemen and dove wrote a book it’s kind of based on the world is flat platform that’s simply called how and his argument is that when the world is this flat and so many people can look into your life into your business into your school into your performance into your teaching and then go out on their blog or YouTube and tell the whole world about it without an editor without a filter and without a libel lawyer how how you live your life suddenly takes on a whole new importance we are in the age of behavior that’s what the flat world does if I’m a company now 20 years ago a little PR problem I hired hill and knowlton take care of it for me today hill and knowlton is hiding in a corner from every blogger with a cell phone and a blog post you can’t have somebody clean up the problem for you and you meet our kids we’re now leaving digital footprints every where we go the whole days you could move to another town now your reputation on Google precedes you and it’s there forever so remember what Mark Twain said always tell the truth then you’ll never have to remember what you said okay because you can’t run or hide anymore privacy is over and therefore how you live your life how you conduct your class how you conduct your business how you say you’re sorry or don’t say you’re sorry matters more now than ever so kids be good because you’re on candid camera so the first thing is we got to get our house right now as I look back on the events of 2007-2008 a lot of people just think about it as a financial crisis I don’t I think we’ve just been through a massive how crisis I think the story of the last three years was a massive American breakdown in how we did our business and how we interacted with mother nature yeah you see when historians look back at this period we’ve just been through they’re not going to say this was just a financial crisis no they were going to say this is a moment when both the market and them and mother nature through the climate system hit a wall they’re going to say this was the moment when the market and mother nature said this is your warning heart attack you are growing in an unsustainable way turn back now how are we growing very simple in simple terms we are building more and more houses and more and more stores to sell more and more stuff to be made in

more and more Chinese factories powered by more and more coal that would are in China more and more dollars so it could buy more and more t-bills to recirculate them back to America so we could build more and more stores and sell more and more stuff to be made in more and more Chinese factories powered by more and more coal so China could earn more and more dollars to buy more and more t-bills to recirculate them back to America so we could build more and what I can do this all night I’m not going to but that is the loop we were in in 2007-2008 that was the year that the market and mother nature said that loop you keep up with that loop and you’re going to crash this is an environmental crisis and a financial crisis and that friends is why it was not an accident that citibank the ice banks of Antarctica and the ice banks of Iceland all melted at the same time that’s why it’s not an accident that bear Stern and the polar bear both faced extinction at the same time because they both got their house wrong how so well basically we were doing the same faulty unethical accounting in the market and mother nature in the market we’re allowing people to massively underpriced risk to privatize the gains and to socialize the losses so we allowed people who sold subprime mortgages and credit default swaps to massively underpriced the risk involved in those we allowed the investment banks and brokers who did that to privatize the games and those of us who’ve got cheap mortgages and then when they all blew up we socialized all the losses on the backs of every American taxpayer we’ve been doing the exact same accounting in nature we’ve been massively underpricing the risk of emitting carbon molecules we are allowing the people who do that cheap coal and cheap gas to privatize the gains all of us and we are socializing losses in the form of carbon molecules in the atmosphere that we’re charging on our children’s Visa cards that they will pay for in the future in the form of disruptive climate change in both the market and mother nature we’ve been practicing the same dishonest accounting and that’s why it is not an accident that citibank iceland’s banks and the ice banks of antarctica all melted at the same time now underlying these accounting principles were two values if you can call them that the values of IB G and y BG I’ll be gone or you’ll be gone I sell you a subprime mortgage even though you make $15,000 you’re buying an eight hundred thousand dollar home no problem I’ll be gone I bundle your mortgage with a thousand others into a bond that I sell in dusseldorf no problem I’ll be gone oh when they told you you got the mortgage it was nothing down and nothing to pay for two years another two years are over and you can’t pay for it no problem just walk away you’ll be gone those were the principles those were the ethics we were living IBG and y BG and underline them is the real ethical crisis we were moving from sustainable values to situational values you see I would argue the greatest generation in this country built us a world of incredible abundance and freedom because on more days in more ways they lived by sustainable values values that sustain sustain relationships between a banker and his client between a shopkeeper and his customer between two neighbors over the fence values of honesty integrity transparency decency and long-term thinking somewhere along the way my generation we did a lot of good things civil rights movement women’s rights movement Vietnam War but at the end of the day we turned out to be the grasshopper generation we ate through all that abundance like hungry locust now we add our kids we need to be the regeneration and the way we become the regeneration is by bringing back sustainable values not situational values situational values say I just do whatever the situation allows the situation allows me to sell someone who makes fifteen thousand dollars a year in

eight hundred thousand dollar for nothing down at nothing to pay for two years and the only thing I asked of them is can they fog up a knife no problem I do it sustainable values would tell me I shouldn’t if situationally I can plow up a thousand acres of the Amazon and plant soybeans there to sell to China situationally I can do that I’ll do it sustainable values would tell me I never should I would argue that in this flat world getting away from situational values and back to sustainable values is going to be the most important ethical challenge and achievement of the regeneration of the people coming of age right now because if we don’t do this friends we are really in trouble because in the flat world these two giant forces the market and mother nature their impacts are just farther and farther and wider and wider felt and remember one thing about the market and mother nature in a world without walls they are the two most autistic forces on the planet autistic in the sense of feeling no human emotion whatsoever my friend rob watson the inventor of LEED buildings likes to say mother nature mother nature she’s just chemistry biology and physics that’s all she is you can’t sweet-talk her you can’t talk her up you can’t say mother nature where the stock market’s off this year could you give us a break no she’s just going to do whatever chemistry biology and physics dictate and mother nature she always bats last and she always bats a thousand do not mess with mother nature father greed the market same thing market is just the balance between green fee or greed and fear or greed and fear or greed and fear at any millisecond around a stocker Banda piece of real estate of commodity it’s going to do whatever the balance of greed and fear dictate you can’t spin it can’t sweet-talk it can’t talk it up can talk about it’s only one way you can affect the market and mother nature and that’s with sustainable values that’s the only way we can moderate them and if we the regeneration don’t bring sustainable values to the market and mother nature we are going to be more unfree that had the Soviet Union won the Cold War because the market and mother nature will impose on us constraints on what we can do that will be worse that had the Communist won the Cold War what freedom was to our parents generation sustainable values need to be for the regeneration so we come again back to this question of values where where do they come from where do they come from well my first book on globalization was uh not the world is flat it was a book called the Lexus and the olive tree and I got that name because I had visited the Toyota Lexus factory in Toyota city in japan and i was blown away this was 1998 I watched them building the Toyota Lexus almost entirely with robots and afterwards I got on the bullet train to go back to Tokyo at 200 miles an hour I was reading The Herald Tribune that day and there was a little story in the paper about some dispute at the UN between Israelis and Palestinians and it just occurred to me you know these people whose train i’m writing whose factor i just visited our building the greatest luxury-car in the world with robots and these people on page three of the herald tribune who i know so well and live with so long and loved so dearly are still fighting over who owns which olive tree and isn’t that the 21st century half of us times literally half of us are struggling to build a better Lexus to modernize to globalize to integrate and half of us are still struggling with the identity issues ethnicity religion place family and tribe and so much of the world today is really about the struggle between those two forces so after the book came out a friend of mine and its Silicon Valley asked me to send a bunch of copies and I want to share with you

this story I was storing the books signing them putting them the box in my living room when the delivery man came and he was a heavyset middle-aged guy and I invited him to the kitchen to wait while I was signing and sitting at my kitchen table he picked up a copy of the Lexus in the olive tree and he started to leaf through it after a few minutes he put the book down and said to me so uh the Lexus that represents technology and computers right I said that’s right you got and the olive tree said that represents community and family and things like that right you you got it you got it so tell me something he said where does God fit into all of this I’ve been in the presence of our Lord Jesus Christ where does he fit it I had to laugh only because I’d been asked that question so many times while speaking to groups about that book indeed some of the most often asked questions i got are some variation of is God in cyberspace is God in cyberspace is God in the cloud so I started thinking about that and I actually consulted my teachers my rabbis the question is if God is in cyberspace or not I finally concluded it really depends on your view of God if you think God makes his presence felt through divine intervention through the hand of God at work in the world then you’d have to believe that God is not present in cyberspace because it’s hard to look at cyberspace and say that it’s being shaped by the hand of God given the fact that the most popular websites are pornography gambling and pop music now my own view of God and this is how I wrestled with this says question it grows out of my own Jewish faith is different I share the pus the the post biblical view of God that in the biblical view of God he’s always intervening he is responsible for our actions he punishes the bad and rewards the good the post biblical view of God is that we make God present by our own actions and our own choices and our own decisions in the post biblical view of God in the Jewish tradition God is always hidden whether in cyberspace or in the neighborhood mall and to have God in the room with you whether it’s a real room or a chat room you have to bring him there yourself by your own behavior by the moral or immoral mouse clicks you make my my teacher rabbits fee marks pointed out to me that there is a verse in Isaiah that says you are my witness i am the lord according to rabbi mark second century rabbinic commentators interpreted that verse to be saying if you are my witness i am the lord and if you are not my witness I am NOT the lord in other words explain Robin marks unless we bear witness to God’s presence by our own good deeds he is not present unless we behave as though he were running things he isn’t running things in the post biblical world we understand that from the first day of the World God trusted man to make choices when he entrusted Adam to make the right decision about which fruit to eat in the Garden of Eden we are responsible for making God’s presence manifest by what we do and the reason that this issue is most acute in a flat world in cyberspace is because no one else is in charge there there is no place in today’s world where you encounter the freedom to choose that God gave man more than in cyberspace so what I should have told that delivery man was that God is not in cyberspace but he wants to be there but only we can bring him there by how we act their God celebrates a universe of such human freedom because he knows that the only way he is truly manifest in the world is not if he intervenes but if we all choose sanctity and morality in an environment like cyber space where we’re actually free to choose anything as rabbi marks put it to me in the post biblical Jewish view of the world you cannot be moral unless you are totally free because if you are not free you are not really empowered if you are not empowered the choices you make are not

entirely your own what God says about cyberspace is that you’re really free there and I hope you make the right choices because if you do I will be present so that’s that’s where I think the values conversation starts now one of the things that parents you know often ask me is you know how do I prepare my kid for this world should he take computer science should she study math or calculus maybe engineering all of those are important but I’m a big believer the more the wired the more wired the world gets the more integrated we get technologically the more whiz-bang everything becomes the more actually old-fashioned values become important how many times have you heard people say but but I read it on the Internet as if that’s supposed to settle the Barbet but I read it on the Internet I always whatever here don’t you understand internet is an open sewer of untreated unfiltered information yet this open sewer is now at the center of our lives and our kids lives and that’s how they’re interacting and that’s how they’re communicating that’s other collaborator so if you don’t build the internal filter into them into our students our young people are adults and our citizens if we don’t build the internal ethical filters into them when they interact with this open sewer bad things are going to happen bad things are going to happen because you’re not going to be over your kids shoulder every time she’s on facebook you’d be over your son shoulder every time he’s surfing the web and so if we don’t build the internal filters in as we go to this flat world and all these people are interacting situationally bad things are going to happen and they do we saw that at Rutgers last month when people take a modern technology and use it for the most destructive kind of bullying that it drives someone to commit suicide so you’ll pardon me if I’m kind of old-fashioned about this because I don’t I don’t believe in any of this whiz-bang stuff I think all the old stuff all the stuff you can’t download all the stuff for which there’s no ipod app it all matters more than ever i’m talking about read and write and rithmetic church synagogue temple mosque parenting teaching all the stuff that happens under the olive tree that can’t be downloaded happens one on one between you and your religious leader between you and your parents between you and your peer group all that stuff it actually matters more than ever the more the world gets wired back in the days when i wrote lexus in the olive tree when we still had things called modems I’m really dating myself here I wrote that if I had one fervent wish it would be that every modem sold in America would come with a warning from the Surgeon General and it would simply say judgment not included you cannot download that you have to upload it the old-fashioned way family parents values church synagogue temple mosque don’t buy into all the whiz-bang stuff all the old stuff which will give us those ethical filters matters more today not less now let me simply conclude by by saying that on this fact on this challenge I’m a bit of an optimist because I think one of the great things about America may be the greatest thing about America is that if you are designing a country that when it’s at its best and Lord knows we’re not always at our best but that one’s at its best can balance Lexus and olive tree

technology and values issues it is our country I still I still believe that I believe that very strongly and so to conclude I just want to read you in fact the last passage of this 10 year old book because I think it’s actually still relevant to our whole discussion here tonight I say America is not at its best every day but when it’s good it’s very very good in the winter of 1990 for my oldest daughter aurelie was born in Israel and I was a correspondent there whose name means my light in Hebrew was in the fourth grade chorus at burning tree elementary school in Bethesda Maryland at Christmastime all the courses from the local public elementary schools got together for a huge performance in the Bethesda town square I came to hear my daughter sing the chorus conductor was an african-american man and for the holiday songfest he wore a Santa Claus outfit the first song the course saying that evening was the Hanukkah classic Ma’at sewer to the tomb of Rock of Ages watching this scene and hearing that song brought tears to my eyes when I got home my wife Ann asked me how it was and I said to her honey I just saw a black man dressed up as Santa Claus directing 400 elementary school kids seeing the Hanukkah classic masseur in the town square of Bethesda Maryland god bless america thank you very much thank you crazy thank you it’s a great story to end with and thank you Tom and it reminds me of something the late Tim Russert used to always say it’s a great country and now we’re going to begin the roundtable discussion a part of this evening and then after that we will open up to questions from the audience so without further ado let me introduce the members of our panel discussion first Dean Carolyn woo since becoming Dean in 1997 woo has led the Mendoza College of Business to the top ranking for undergraduate programs in Bloomberg Businessweek as well as other high rankings for graduate programs and for teaching ethics her research focuses on strategy entrepreneurship and organizational systems and she practices what she preaches by serving on the boards of several corporations and nonprofits please welcome Dean woo our next panelist is Shanna ghast who is a senior from Overland Park Kansas and she is majoring in economics with a minor in philosophy politics and economics I majored in philosophy too she has worked with disabled students in Cambodia interned at the US Department of Education and is writing a senior thesis on the impact of income support programs on student academic achievement she is also active in service research and policy groups here on campus please welcome Shanna cast next is professor gary anderson whose interests concerned the religion and literature of the old testament a special interest in the reception of the bible in early judaism and christianity his most recent book is sin a history and he is spending this year as a I know we all know something about that doing sin a history and he’s spending this year as a senior fellow at the typical center for jewish law and civilization at new york university working on a book about charity for the poor please welcome professor Anderson alright so we’re going to kick off this discussion and I know Dean whoo you have a question for Tom Friedman absolutely but I just want to say first of all that was a superb top as a person who rest so many of your columns and books you told us that this is a new speech and I just want to say it is quite a privilege for us at Notre Dame to have the speech debuted here Tom I want to go back to the sustainable value question we’re told that the line

is constantly slipping even though most of us want to do the right thing but research also shows that cheating is very pervasive in our society and despite the desire to do the right thing the line slip why wow that’s a very deep question I you know I several sort of scattershot ideas come to my head you know you know um something has happened in our country that the only way I can describe it is that somewhere in the last 20 years ago and i’m sure this flat world is part of it America got short everything got short quarterly earnings became a national obsession we just been through a spate of people who lost their jobs on Twitter saying things on Twitter 142 characters is just enough to get yourself in trouble and not enough to make a point okay so it’s um I mean to me twitter is a sign of the apocalypse I really have to tell you in our history it’s a and so what’s happened is this everything is short expectations are short the.com boom we wanted to get rich short you know to RIT rich quick if there’s a whole set of technologies and economic events that have conspired to just shorten everything and when everything gets shortened people look for shortcuts you know and I think they look for shortcuts in business and then they look for shortcuts in in academia you know and my motto you know certainly to my kids and growing up was always that the longest way is actually the shortest way you know and because ultimately when you build a solid foundation you you really got a base on which to perform and I think to excel and so you know i wish i could tell you what is the answer how do we go back on you know a different time scale but just think what Chuck prints ahead of you know citibank famously said at the height of the dot-com boom you know when everyone’s dancing you got to get up and dance even though he knew he was selling products that would blow up but everyone was dancing everyone was looking for his quarterly returns and and so he had to dance and we have to really move therefore from a notion of too big to fail to to sustainable to fail you want your we want our students our citizens but our country and its institutions to be to sustainable to fail um not not too big to fail because if all you got is big you know that’s not a solid foundation so I wish I can give you a better answer but that’s what comes to mind now every time I tweet i’m going to feel guilty it does serve its purposes in some ways it is a good need newsfeed you’re right but it can be can be tough she and I know you have a question for time I’d like to also ask about sustainable values you mentioned the parallel importance of reading riting and rithmetic as well as the development of ethical filters and our young people which makes teachers in the classroom very important how do you suggest we empower our teachers so that they can foster these sorts of values in their students that’s a good question Jen I don’t um again this is worse than meet the press you know systems right um that’s right exactly that’s right Tim used to always do it you said that you know ah but I guess you know people often ask me because my wife school teacher of my daughter’s I says a school teacher people often asked me what’s the problem what’s the real problem with education today you know smaller classrooms better infrastructure um not enough computers and again i’m going to give you my really old fashioned answer I think it’s ninety-five percent about parenting and five percent about everything else I see through my my wife and my daughter I mean kids that who are fortunate enough you know to have parents who were ready to raise kids read to their kid when they were an infant have books around the house throw away the idiot Game Boy turn off the TV sit over them while they do their homework those kids come to school ready to learn and able to learn you know and those that don’t end up being parented by my wife and daughter because the real work isn’t being done ahead of time now at the university level we don’t expect professors you know to be parents you know but you know I just think we have

to remember who are the ethical and thought leaders in our society and and they’re there hopefully their journalists good journalists who events good values they’re good university presidents they’re good professors they’re good TAS the good student leaders but if you’re in a position of authority today in any way where people look up to you I mean you have authority over other people you need to remember that there to bring if you bring that ethical content to what you do that you want them to be sustainable to fail not too big to fail too strong to fail too crude to fail to mean to fail I think you’re passing on a very important life lesson did you have anything to add I’m sorry I just wondering in the absence of good good parenting what do you suggest we do in some ways and again Thomson next question please that is a it’s a real challenge for society and that’s why we have that’s why we have public school teachers that’s where we have good public school teachers that’s why we have special needs teachers we have an obligation as society the kids come first and the kids don’t get to choose their parents and so as a society we have an obligation we have a moral obligation we also have a tremendous interest in building good citizens and doing what we can and so that’s what we do professor Anderson yes turn to a famous 20th century Jewish philosopher by the name of Emmanuel Levinas who was very taken by the importance of the concept of the face and the Bible the Jewish Bible I think of a verse for example from Deuteronomy of a samatha LIF nay Hashem which means you shall rejoice literally before the face of the Lord and he used that notion of the face and the Jewish Bible to construct a complete ethics because what when he began with was the notion that the moral life really begins with the face of the other in the concrete engagement with the totality of another individual standing right before you you are called to a certain sense of accountability the downside really of the internet and globalization which you did advert to several times in your talk is it allows people an extraordinary ability to be anonymous yeah and when people are anonymous like in a crowd there’s a reason why I mean Bob you have a mob psychology because the face of the other disappears and your accountability to anybody also disappears the example you gave from Rutgers of course is a great example but there are many others the New York Times a few years ago had a long article in the Sunday magazine about you know cell phone anonymous cell phone calls to friends the way in which kids can be ostracized in groups through media and what’s happening so it all called to mind to me a statement that Pope Benedict makes in Caritas and very taught him about globalization and like you he feels there’s a great potential good here he says the whole world has become neighbors one to the other but he also adds that being a neighbor is not the same thing as being a brother or a sister to someone else so I guess my question to you is you know how how in this world of increased globalization and the anonymity of the Internet that’s the other side of Netscape of course the reason why we have viruses the great connectivity of course allows extraordinary pernicious pneus at the same time of course al-qaeda can also be connected in a way in which bangalore can be to chicago so what’s going to guarantee i’ll ask with Pope Benedict that we become or remain brothers and sisters in the next century rather than simply anonymous neighbors it’s a really important question you know I’ve been thinking about it a lot so it triggers all of several thoughts again first is that one thing I’ve always said is that this flat world platform is completely neutral can be used by al-qaeda use by BM yeah so it’s all about what values you bring to it and what I’ve always told people is if you think globalization is all good or all bad you don’t get it it goes both ways and it depends how you tilt the system how you how you lever it um I’m really going to date myself now I’ve never looked at facebook because the notion that i have three thousand friends is is absurd to me you know i made it and um I I have you know I know what my friends are I I

know what shared values I have with them and how we’ve built our relationships and and I count myself lucky to have like you know maybe 20 really really good friends okay and who I communicate with not just with email but try to build real relationships with and so one of the things this is slightly off your point but it’s related is that I really see this a lot again around the environmental community and activism okay because you know people will say to me often yep i blogged about it oh really you blogged about it i vlogged about it took care of that problem yeah you you blogged about it that’s like firing a mortar into the Milky Way galaxy okay you blogged about it you know I mean and I think did you know did Martin Luther King blogged from Birmingham jail you know I mean did from Edmund Pettus Bridge I mean did you know these guys weren’t just they got people together we got civil rights in this country got women’s rights because a million people went into the streets or sat down at lunch counters you know Rosa Parks didn’t blog about the bus system okay she got on the bus and took whatever seat she wanted I really think one of the cancers out there is this faux sense of activism because i always tell young people on the environmental movies I you know kids I got to tell you ExxonMobil or they don’t have a facebook page they’re just in your face okay Peabody Coal they don’t have a chat room there there in the cloakroom of the US Congress where the bags of money get exchanged for votes so if you want to be an activist get out of Facebook and into somebody’s face because your world may be digital but politics nor will attest to this is still analog okay it’s still really analog and so um I’ve lately you said something to which I’m you know if you’re in public nor is in public I’m a public figure now it’s scary out there it’s scary out there because as you said the dishonorable accuser has enormous power the dishonorable accuser in a flat world by the time you know they set that rumor about you going it’s around the world twice before somebody’s even emailed you about it do you see what they’re saying about you and you know people sometimes said to me would you like to go into government I say I would see really so yeah I’d like to have a very high position really on one condition what’s that I get to keep my column at the New York Times ok I’m not going anywhere without my six-shooters I feel really sorry for anyone in public life who does not have their own column to define themselves twice a week in the New York Times okay I really pity you know because it’s really scary out there and President Obama I think has really wrestled with that in a very frustrating what your socialist he says he’s a Christian you know he’s had a deal with all the dishonorable accusers and he’s had to do it at a presidential way and I sure there are nights he goes home and he goes into the closet and he just screams with anger about stuff that is written about him and it really worries me because anyone with half a brain and any ounce of talent why would they want to put themselves out there you know and so this really is a concern of mine when the public space gets that scary how do we attract good people to that public space tom is there an optimistic way though to look at the technology in that yes an anonymous person can make something that you wouldn’t do face-to-face to your brother your sister your friend or even or you know to your neighbor but that there can be also a power in the Internet to come back that absolutely blown an angry voice and there can be a rising up and it quickly discrediting it may still exist out there and if you google your name it may still be on there but there can be a mess no question it goes both ways yeah and and dishonesty gets exposed quicker and called out by more people and and it gets circulated quicker and it just really kind of depends where you are on that receiving or giving in you know but I again I don’t want to suggest this all bad at all just the opposite I get wonderful ideas from bloggers you know reading doraki bloggers or you know baff gamblers or whatever a thang opera

there’s there there’s enormous richness out there in the public space if you have to write filters you know and so it goes both ways we have time for some additional questions before we wrap get ready to allow all of you to have a turn so let me go to Dean whoo yeah Tom I want to change it tight a bit to a few words you said you an optimist post-election hopefulness can you string those in some ways for me Oh what’s in this stuff well you know I am if if you fall really what I’ve been writing for the last couple of months now you know look I’m really worried about our country and I so I wasn’t engine China two months ago I was at the World Economic Forum in TN jen and i had been dati and jennifer about five years I was there five years ago I spoke at a clean car conference it was kind of a dirty polluted a Chinese version of Detroit and was that bad as I say something wrong they all Detroit you know they all Detroit uh yikes um uh huh so um someone is tweeting that’s right exactly i won’t be invited there uh anyways as I was saying I was in tianjin and um I got the World Economic Forum meeting their summer 10gen and we get there by bullet train from Beijing leave from super modern phasing thousand train station solar panels on the roof I think into 29 minutes on the bullet train hundred kilometers and we get there to the gin gin maging convention center this building is so big and beautifully appointed that if it were in Washington DC would be a tourist site buses would stop there tourists would get out take pictures huh so um uh go in you know they give you all this information about it and I looked it up on I got back to my hotel room and 0 on the web he said that caging Tim gen machin convention center arm was constructed it construction began on September 15 2009 and it was completed in May 2010 so I said my hotel Ramon R&C september-october november december january that’s eight and a half months now i live in Bethesda Maryland and in Bethesda Maryland I take the subway to work often and subway at the bethesda metro has two escalators they’ve been repairing them for six months okay this is absolute okay and when they’re repairing them they have to close both they repair one and the other has to be a two-way staircase okay for everyone in the station so at rush hour they’re too long eft wait five minutes just to get up to them to the mezzanine and I the other day when I got back down to the stairs 21 so it took China eight months to build a convention center and it’s taken Washington Metro six months to repair two escalators of 21 stairs 90 with enough cheap capital cheap labor cheap inputs authoritarianism you can build anything in six months okay could we do that good Russia do that could Brazil do that good indonesia do that and so you see if you don’t travel what you don’t know is that when you fly today from Shanghai to LAX it’s like flying from the Jetsons to the Flintstones okay and so why is that what’s what’s that about what’s underneath all of that is that we can’t act collectively anymore now China acts collectively in part because there’s an authoritarian government maybe ninety percent but it ain’t all of it there’s also a sense of aspiration of purpose of national will of get it done do what it takes pay any price bear any wait a minute wasn’t that us that’s

what’s bothering me I can’t say I didn’t follow this election at all at all I sorry I didn’t follow it at all okay all right because it seemed to be completely irrelevant to our challenges today and because I am certain that whoever wins that each one is going to go to their you know whatever their tribal religion is in these two parties and each one’s going to try to subvert the other and Mitch McConnell says the only goal for Republicans for the next two years is to make sure barack obama isn’t elected president again we do people live in a gated community on an island offshore where everyone’s 401k is perfect I mean tell me where that place is I want to live there too what are we doing how long do we go on unable to act collectively when so many other people can so that’s so that’s really I it’s not you know I appreciate the applause it’s not it’s a deep deep concern of mine and because the you know why it’s interesting if you’ll appreciate this Dean de when I go to China my Chinese friends say to me Tom you exaggerate us you exaggerate us do which I say you bet I do baby you’re my Sputnik you’re my Sputnik I got I put you up in lights because I want people understand that there’s a challenge out there and maybe we can rarely because of that challenge where we did under Eisenhower and you know 1957 when Sputnik went up you’re my Sputnik and the problem is too many of my fellow Americans they think you’re a shooting star you’re not a shooting star but you know what really worries me is you exaggerate us you think we’re still Churchill’s America remember what Churchill said about us the Americans they’ll invariably do the right thing after they exhaust all the other alternatives I’m not sure we will do the right thing anymore that we can’t do the right thing but what I am sure of is this we don’t have time anymore to exhaust all the alternatives and we’re going to open it up for questions so if you want to come to the microphones now i will call on you to ask Tom our question question and talk about we don’t have time anymore we’re gonna have two and a half billion more people yeah I 20 top of it all you have said yes I’ll let you say it do want to be like us yeah ok thanks ok thanks so much fear quite really appreciate our panelists thank you very much let’s please give them a round of applause I think tom is we get the first question we’re going to step 4 they’re going to move our chairs forward yes please I’m also from DC so I understand your pain with the metro my name is Laura I met engineering and an MBA student here and my question concerns globalization and technology they’re growing and while that’s great it also poses a great danger to sustainability especially with regards to our values and our increasing dependence on energy yes sustainability is about meeting our present needs without compromising the needs of the future generations to meet their own needs but how are we ever going to move beyond our present needs and our thirst for energy in to ever develop our values and become a sustainable society it’s a really really good question um and in a way I mean it’s just all right partly I answers I wrote a whole book to try to make that argument so let’s but let’s break it down is because it’s a perfectly legitimate and important question you know the first thing is you have to know what world you’re living in and again one of the things that’s tragically happen there’s not only we lost our collective ability a collectively but there’s been a complete breakdown in authority in our country all elites journalism politics but also science okay so we have a lot of people running around saying you know climate change is a hoax and this or that you know now if there’s a climatologist who thinks climate change is a hoax i really want to hear from them okay but i don’t want to hear from a politician that it’s a hoax anymore that I want to hear their views on you know quantum mechanics okay you know you’re not a child to an opinion about quantum mechanics you’re not entitled to an opinion about the laws of gravity and trust me the climate science is exactly in that realm but no

problem I try to be tactical about this so my book is called hot flat and crowded so when I speaking to a group where there the optical people I really believe the first thing the most important thing I think for environmentalists and young people who want to go into this you have to learn how to speak to people who don’t believe or share a single thing you believe that’s really really important so I actually spend a lot of time thinking about language how to sell they sell my ideas how to name thing I’m a really big believer to name something is to own it and so one of the things I try to do first of all in my column was to rename green so one of the problems with agree in all these years was that the people who named it we’re actually the people who hated it they actually owned the definition they named it liberal tree-hugging girly man unpatriotic vaguely French vaguely friend mr. mr. Gore you’re looking a little French okay well I’m here to tell you green is geopolitical geostrategic geo-economic capitalistic patriotic green is the new red white and blue oh yes it is baby and don’t let anybody tell you otherwise okay so I try to take the language and then argue from within that and so then when people said look I don’t believe in this climate change stuff I say take out my book hot flat and crowded take out an eraser just a race hot you don’t believe in hot no problem that’s between you and your beach house okay I mean I I believe it hot you don’t that mess but how about flat and crowded how about a world where more and more people can see how we live aspire to how we live and live like we live how about a world that’s also going to go from 6.7 billion today to 9.2 billion just by 2050 now in a world where flat meets crowded where more and more people can live in American size homes drive american-sized cars and eat American size Big Macs what do you think I say to them is going to happen to the price of energy and what’s going to happen to energy consumption and therefore what’s going to happen to the environment so sometimes you have to come at a prodigious take it out of this language and put it in that language and then you can say well if if that is where energy is going to go my gosh energy is going to be renewable energy clean energy because we certainly can’t supply that with dirty energy we won’t be able to breathe and China knows that um that means energy is going to be the Energy’s going to be the biggest industry in the world so when you’re telling me climate change is a hoax we don’t need an energy bill what you’re basically saying well gosh what if what if in the IT revolution Google were a German company IBM was a Swiss company son was a Japanese company Apple was a French company what would our standard of living be like today if we didn’t own the IT revolution what do you think our standard of living is going to be in the future if we don’t own the et revolution and it’s going to be the next great global industry so what I’m trying to say is you’ve got to find arguments away around people to get them to move because other thing otherwise all you can hope for is the perfect storm and the perfect storm is a storm big enough to finally end this debate but not end the world and I don’t want to wait around for that storm okay but it’s it’s so important to keep doing what you’re doing because I think this is going to change I really do I think this is a generational thing you go on college campuses today and you know every other student I meet is either concerned about this or wants to go into this field blessedly so and any political party that thinks it has a future basing its politics on something that is not believed or shared by ninety percent of the young people in America today that’s not a political party that’s going to have a big future over time so this will change but I just hope the problem waits for us well it does thank you thank you great question hot sir thanks I could hear you yeah it’s okay

you know it’s a really powerful question unfortunately it’s really outside my realm of expertise and weird of a reception after and no Gary’s going to be there and I’d really urge you to come down and pose that question to him because I would be completely at sea answering it but thank you thank you it is a good question very good killer isn’t sustainable values it’s a great question hello I’m a fourth-year engineering student and thank you both very much for being here tonight this has been a great evening John you you spoke a lot about sustainable values and I think every individual in this room would not say yeah that makes sense to me but a lot of the systems that that influence the global marketplace corporations government regulatory bodies have more of the situational values and you also spoke about our inability to act collectively how would you suggest and this might be this might be an unanswerable question but how would you suggest that we bridge that gap between the individual sustainable values and the systemic situational values and get those more start to change another that’s a it’s a wonderful question um my own view where I’m gravitating to is um because I do get to travel around the country a lot and meet people and um I think there’s a huge tea party in this country but it’s not the one you’ve read about um I think there is a radical Center in this country that feels deeply unrepresented by a duopoly of you know a two-party duopoly that is basically bankrupting the country taking turns in office doing I think the country is right for a third party okay and um I’ve written this already but I really believe it you know when you think that Ross Perot you know at one point had 32 maybe up to forty percent of the vote you know when he mounted his third party challenge in the Clinton of Bush one you know election and ultimately got eighteen percent of the vote and because of ross perot and he got a little nutty at the end he felt little black helicopters were chasing him you know because of ross perot bill clinton made deficit-reduction his number one priority because of ross perot and that had a huge impact on our economy it was to the good of all of us now i don’t know if he’s going to run but imagine a third party that bloomberg did run on someone who has experience Ronnie city who believes you know I think at a lot of really good balance progressive measures he couldn’t win because the whole party system and the Electoral College is stacked against a third party but I don’t think you have to win I would just love to see a presidential debate you know where you had a really smart third-party candidate in the middle just saying yeah when I give you know on any issue you you can imagine you know budget cutting taxes investment clean energy and could actually put on the table the right things you know because he what’s frustrating about our country right now I think is that it’s not like we don’t know the problem didn’t know the solutions we need a gasoline tax okay we need a gasoline tax if anybody if we had

a dollar gallon gasoline tax phased in over 20 months at five cents a month okay you could give half to pay down the deficit half to give a quarter to give a cut in payroll taxes a quarter to give a cut in corporate taxes you with the gasoline tax you lower the pollution in the air you spur innovation and cleantech you straight from the dollar because we aren’t sending so many abroad and you take money away from the very people we’re fighting in the Middle East people have drawn a bull’s-eye on our back so it’s not win win it’s win win win win win every one of these guys knows it every one of them yet not one not one of those 535 people senators and congressmen will dare propose you think one of them going out the door would simply say what Dan you know sometimes I forget Allah tags now by gasoline tax one of them you know I’ve imagined in hot flame crowd actually do this riff I imagine what if I were in a debate with someone I was the candidate for the gasoline tax and Nora was my phone issue comes up she I propose a gasoline tax dollar gown she’s poised she says there he goes again my opponent mr. Friedman never seen attacks he doesn’t like and how he wants a Gessle index get that ladies and gentlemen what would I say wouldn’t say this too dear nor does she would never say that to me I’d say this to candidate X I’d say mr. X let’s get one thing straight we’re both for attacks because if you don’t think having your oil price set by the world’s biggest cartel isn’t attacks called OPEC then you’re not paying attention okay what differentiates you and me is I want my tax dollars to fund American schools American research American learning American hospitals American roads American highways American infrastructure in you you seem to want our tax dollars to fund the Saudi Treasury the Russian army the Iranian Revolutionary Guard just seem to be totally indifferent it’s just a little tick I have I like my tax dollars to build my country so you know if you can’t win that debate you don’t belong in politics you know it’s and that so the fact that we can’t even say that think about the most obvious you know one-stop shopping solution to a lot of problems is off the table boy when you’re known solutions are off the table you’re in a bad place as a country thank you thank you not get out of here this is scary yes your party good evening with the change in government that we saw yesterday it seems as though everybody ran on an economic platform there needs to be economic change so on and so forth where does the new government find a balance between economic and ethical balance is that something that’s going to be left as you said earlier on our generations visa card for us to handle or is it something that will be handled in the near future I honestly it’s an interesting question I don’t think in general there’s a tension between job creation em and ethical VAT there is nothing obvious is there something you have in mind on that because I would say I think what’s what’s frustrated me the last two years and listening to the debate as everyone says you know we have to have more jobs some his jollywood job Joe you have two more joke we cannot bail our way out of this problem we cannot stimulate our way out of this problem there’s only one way we get out of this problem and that’s if we innovate and invent and design and sell more things that make people’s lives more productive more healthy more entertained more secure and more comfortable and we sell them to the rest of the world and we make them in a way that we get so smart as a country and we get such a good infrastructure and leverage so much technology that one American can do the work of 20 foreign workers so that one American can be paid the same as 20 foreign workers that is the only way out of this problem and what this election should have been about is how we do that see I think we’re in a

phase now where both parties have completely broken down why see I think we just ended a period of 50 years where to be in politics to be in government to be a mayor a governor president or to be a president of a university or any institution public institution we had 50 years where to be the boss was unbalanced to give things away to people that’s what you got to do unbalanced in more years at more times I think we’re entering a period where on balance to be the leader of a public institution will be to take things away from people until we generate a whole new level of savings so the reason these two parties are stuck is that the politics you need right now is you actually have to raise this tax on gasoline or on carbon while you cut this tax on corporations in payroll okay you actually have to cut this service early retirement on Social Security so you can invest in this service okay better infrastructure so neither one’s mantra let’s just cut taxes that will take care of itself or I’m exaggerating both but you know let’s add more services health care that’ll take care of itself neither one works now you need a much more supple and subtle combination of the two because we’re like a couple we’re like a family of two working parents with two kids and one of the parents just lost their job trulia or like as a country now the wrong thing to do for that family would be just to take their kids you know out of out of private school or whatever or take them out of a good school move to a worse neighborhood just hunker down save every penny no why’s family would say all right we’re going to we’re going to take a shorter vacation or we’re going to go camping instead of to Disney World but at the same time we’re going to use that money so our kids can have better after school lessons so they’ll be more competitive in the world that’s the conversation we need to be having where should we wear what world are we in we know the only way to create jobs in this world is to invent things that make people’s lives more productive more secure more comfortable more entertain and more healthy and how do we do more of that that’s the only conversation economically we should be having I don’t see anything ethically problematic with that but unfortunately that’s not actually the kind of straight conversation we’re having and just ends up people saying you didn’t create enough jobs jobs presidents don’t create jobs you know it’s all about you know creating basically an enabling economic environment for the market to do that but we’ve had just a really dumb conversation about it and not the kind of conversation I think we need in order to actually create jobs so I’m worried going forward I mean we’re going to we’re going to heal back things will come back maybe we’ll go from nine to eight maybe 27 god I hope but I think there may be a real structural problem they’re going from seven back to four again because those good times see the way I look at America is that basically there’s a real parallel between the crisis of steroids in baseball and the crisis of steroids on Wall Street we went through a period where our national pastime our greatest heroes in that national pastime instead of going to the gym to build up their muscles injected themselves with steroids to hit grand slam home runs and set records what happened on Wall Street and in the economy is exactly the same thing thanks to the flattening of the world middle-class wages completely stagnated in America instead of telling ourselves or we got to go to the gym we got to develop new muscles we got to get fitter trimmer to run this race we injected ourselves with steroids called cheap credit credit default swaps CDOs and both baseball and in the economy when the steroids ran out you saw what happened thank you very much great question and we have time for one more question mrs. Otto mr. Freeman good evening paper much for being here my name is John Michaels I’m a 2001 grad for annapolis and I now I’m one of Dean was first year MBA student great my question is the Green Revolution that you talk about in hot flying crowded I believe with all my heart that it needs to happen in order for America to stay

the premier economy what is your assessment of how how it’s progressing at this point what do you think the biggest obstacle is and what piece of advice would you give someone like myself where I can go and make make it happen good question um good one to two to finish on so um it’s really interesting I’ve had two years to go around the country to talk about this book and had a lot of evenings like this and you know it’s amazing to me I’ll do a book signing after and how many people come up to me and say mr. Friedman I got an energy idea you know here’s my business card I’ve got a new company and I go back to my hotel rooms after these events I empty my pockets of business cards from energy innovators rock stars get room keys I get business cards but they’re very they’re very exciting in their own way okay they are very exciting okay because what they tell me is that our country is actually still alive with people like yourself and so many of the students here our country is actually still exploding with innovation from the ground up around energy in particular and environmental ideas it really is exploding in fact if I were to draw a picture of America today it’d be a picture of the space shuttle taking off this is my image of America you seen the space shuttle take up all that incredible thrust coming from below but in our case the booster rocket Washington DC is cracked and leaking energy and the pilots in the cockpit are fighting over the flight plan so right now we can’t achieve escape velocity in ET to get into the next orbit the next great industrial revolution what’s the key thing um you know why I nor and I were talking about her / boss Jeff Immelt of GE earlier and really I think one of America’s most talented CEOs and I had done a management retreat for him when I was working on the book and dumb at one point Jeff this three years ago threw up his hands and Bush was so present he said if only we had a president who would basically impose all the prices tax incentives taxes and tax incentives regulations and standards to take all that energy coming up from below and scale it if we could just take off if you just impose everyone would complain for a month and then the whole American innovation system and just take off and I thought about that afterwards and I call the next day and it actually ended up being the penultimate chapter my book I said Jeff what you’re what you’re really saying is if only we could be China for a day just one day would it be so bad so the penultimate chapter in book is called China for a day but not for two ok and there’s my fantasy of what would happen if we could actually put all those things in place now what impact would it have so i mentioned i was in TM gin guy comes up to me and jen jen introduced himself one of these energy innovators and meet these unlike flypaper for these people and it’s fantastic because we’re so great about our country and what’s what i love most about America is people like Mike Biddle the garmin to tell you about in the middle of this recession almost depression at a time of the government’s energy policy we have no energy bill what is so great about American why I’m ultimately an optimist there’s always somebody who doesn’t get the word oh it’s what is so great about this country he didn’t get the word he didn’t get the word that you’re not supposed to go out and invent the most sophisticated process for recycling where if you give him any pile of junk he puts it through his recycling whiz-bang machine and outcome raw plastic materials in the five colors that exactly the plastic industry wants company is called mb polymers i wrote about him why did i write about him because he’s my story mb polymers was named last month by The Economist magazine as the world’s best innovative company in energy and environment our guy our guy mb polymers for nine years was supported by grants from all of us do II missed you know in the Commerce Department that’s how he got the whole thing going our guy why did I beat him in China because he has 25 employees in California and 250 in

China and Europe why is that because by fiddles company his recycling company does what he calls above-ground mining that’s how he looks at it he needs huge piles of recyclable material to put through his factory it needs a constant stream of them to get the plastic raw material to be recycled back to the industry so China is about to in the next five-year plan and Europe already has passed a law that says any product that has a battery or an electric cord attached to it has to be recycled at the cost of the manufacture that is the law of the land in the EU it will soon be the law of the land in Europe okay now you might think what a terrible burden on the manufacturers no because when you have the recyclers out then you get middlemen who come up and can’t wait to collect this stuff because they sell it to the recyclers it’s a whole industry comes up so Mike Bittles company our guy Economist magazine number one energy innovator of the year no business in America all his business is scaling in China and Europe because why we haven’t put in the rural standards regulations that would allow his business to take off and so we do that same thing in the auto field we bought Detroit we bought GM and and and we told them make smaller more fuel-efficient cars Bob Lutz the former vice chairman of GM he got this one right he said to the Congress in the White House oh I get it you want us to make smaller more fuel-efficient cars but you guys won’t impose a gasoline tax so we will have the consistent flow of consumers to buy those cars he said that’s like ordering every shirt company in America to only make size smalls and never asking anyone in America to go on a diet you won’t sell a lot of size smalls so what I’m getting at is this without a fixed long term durable consumer demand you will never get the green industry to scale you will get hobbies you will get hobbies basically supported by government incentives or local incentives or small businesses but it will not scale I like hobbies I used to build model airplanes I wouldn’t try to change the climate system as a hobby okay so what’s happened here and Obama has been guilty of this he’ll tell you how much money he’s directed toward clean tech and all these companies they’re out there they’re coming up Mike middle electric cars code electric car wrote in their car tow without a price signal you’re not going to have the scale consumer pull for those products and without that the market doesn’t work and so this is just basic market economics which we refuse to do because we want to run away from the price signal so what we’re doing is we’re letting OPEC set the price setting and they’re capturing all the rent you know from that price signal and maybe it’ll go up maybe it’ll go down but as a investor if I never know where the floor is I’m really scared talk to people in the wind industry today they’re getting creamed I mean between natural gas in the economy our wind industry’s just wilting yeah right now so you know bottom line is you know what I’ve been what I’ve been trying to say and this is yeah I’ll just end here that you know in the in the 1960s and 70s we had a space race who could be the first to put a man on the moon only two countries could compete the United States and the USSR and there could only be one winner what what I really believe is we need now the earth race which country can invent the most clean technologies so men and women can stay here on earth okay that’s what we need now the earth race I want America racing Europe Europe racing China China racing Japan Japan racing Brazil’s I think that way we’d really get there that innovation so much faster but I really believe this and this is not jingo istic statement unless we trigger that race we America unless we lead it it’s not going to happen at speed scope and scale you know we still are the straw that stirs the drink for how much longer I don’t know but I tell you this you give me a green America I’ll give you a green world you don’t give me a green America I’m not sure what’s going to happen you know you know China will

do this and Brazil will do that but give me a green America and we will change the world with that ladies and gentlemen a round of applause for tom fragrance thank you Fang face it to a panel esteem kill Andrew Shawn aghast and professor gary anderson great job great to see everybody have a good night there’s a reception in the back and we’ll see you back there enjoy yes thank you you you