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    <title>Ideas in Action</title>
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<entry>
    <title>From Egypt to Iran? - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/04/from-egypt-to-iran.html" />
    <id>tag:www.ideasinactiontv.com,2011:/episodes//2.42371</id>

    <published>2013-04-26T16:52:20Z</published>
    <updated>2013-04-26T16:09:25Z</updated>

    <summary>With uprisings in Egypt, Tunisia and Yemen, the political landscape of the Middle East has seemingly changed overnight. Millions are marching for freedom and democratic government: some leaders are fleeing, others are fighting to stay in power. Can this unrest...</summary>
    <author>
        <name>Chris Bowyer</name>
        
    </author>
    
        <category term="Episode 53" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="democracy" label="Democracy" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="egypt" label="Egypt" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="greenmovement" label="Green Movement" scheme="http://www.sixapart.com/ns/types#tag" />
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    <category term="iran" label="Iran" scheme="http://www.sixapart.com/ns/types#tag" />
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        <![CDATA[<p>With uprisings in Egypt, Tunisia and Yemen, the political landscape of the Middle East has seemingly changed overnight. Millions are marching for freedom and democratic government: some leaders are fleeing, others are fighting to stay in power. Can this unrest be traced to Iran's Green Movement of 2009 that was so violently suppressed, and will the spark of democracy find its way back to Iran?</p>
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        <![CDATA[<p>JIM GLASSMAN:</p>

<p>Welcome to <i>Ideas in
Action,</i> a television series about ideas and their consequences. I'm Jim
Glassman. This week: insurrection in Egypt, Tunisia, Yemen, and throughout the
Middle East. The uprisings come as Iran celebrates the 32<sup>nd</sup>
anniversary of the Islamic Revolution that brought <em><span style="font-style: normal;">Ayatollah Khomeini</span></em> to power and while memories of the 2009
crackdown against the Green Movement are still fresh. What's behind these mass
movements in the Middle East and will they inspire the Green Movement to rise
once again?</p>



<p>Joining me to explore this topic are:  Mohsen Sazegara, Iranian journalist and
visiting fellow at the George W. Bush Institute at Southern Methodist
University.  He was a leader in Iran's
revolution of 1979 and is now an activist in its pro-democracy movement;</p>



<p>Joshua Muravchik, a fellow at Johns Hopkins University's School
of Advanced International Studies and a prolific author on foreign affairs
including his latest book, <i>The Next
Founders: Voices of Democracy in the Middle East</i>.</p>



<p>The topic this week: uprisings in the Arab world,
implications for Iran and the United States. This is <i>Ideas in Action</i>.</p>



<p>ANNOUNCER:</p>

<p>Funding for <i>Ideas in
Action</i> is provided by Investor's Business Daily. Every stock market cycle
is led by America's never ending stream of innovative new companies and
inventions. Investor's Business Daily helps investors find these new leaders as
they emerge. More information is available at Investors.com.</p>



<p>JIM GLASSMAN:</p>

<p>Mohsen, what is the main driver behind these mass movements
and uprisings we're seeing now in the Middle East?</p>



<p>MOHSEN SAZEGARA:</p>

<p>I think it's democracy. Demand for freedom-- free election.
And now is the time that the forkway that dictators like Hosni Mubarak has
tried to draw for several years - they have said that there is only two ways in
Middle East: military dictators, Islamism.<span style="">&nbsp;
</span>And Islamists had the power. Now there's a third way.</p>



<p>JIM GLASSMAN:</p>

<p>Of course, in Iran 32 years ago you-- you were there and you
had a broad coalition that was in opposition to a dictatorship and what emerged
was not a democracy.</p>



<p>MOHSEN SAZEGARA:</p>

<p>You know, 32 years ago we had a military dictator, he was
the Shah of Iran, he came to power by a military coup in 1953. But the situation
was quite different. All groups were united against Shah, but the main part of
the movement against Shah were Islamists so they took the power. But last year
in Iran, in the Green Movement of Iran, the middle class of Iran, many of the
intellectuals, elites of the society, they united against Islamists in Iran and
asked for free election, freedom of election, and democracy. So I think that
that movement in Iran has inspired many of the Islamic nations in the whole
region.</p>



<p>JIM GLASSMAN:</p>

<p>So what happened in the last-- 2009 is inspiring Arab
countries?</p>



<p>MOHSEN SAZEGARA:</p>

<p>I think so.</p>



<p>JIM GLASSMAN:</p>

<p>Ok. Josh, what do you see as kind of core of these uprisings
that have gone on in Arab countries?</p>



<p>JOSHUA MURAVCHIK:</p>

<p>The Arab world, the Muslim Middle East, has been an outlier.
If you take away the Muslim Middle East, more than 70% of the governments in
the world today have been elected by their own people in legitimate, contested,
free, and fair elections. And if you look at the Muslim Middle East, the number
that have been elected by their own people is essentially zero. Except maybe
Iraq-- you know with the U.S. military presence. So this part of the world has
just been left behind but the world is very interpenetrated these days,
particularly the younger generation with electronic media, they see what's
going on everywhere else. And there's been a lot of talk about, 'Why not us
too? Why can't we choose our own government?'</p>



<p>JIM GLASSMAN:</p>

<p>So Josh-- so it's almost as though the solidarity movement
in Poland is at the root of what's happening in Egypt?</p>



<p>JOSHUA MURAVCHIK:</p>

<p>Well, I wouldn't go that far because I think these things
are very inflammable and they tend to spread but usually within regions. So if
you think back to solidarity when it rose the second time in 1988, by the end
of 1989 every communist government in Eastern Europe had been overthrown. If
you think back to Latin America in the 70s there was a military dictatorship in
almost every country and over the course of a series of years they were all--
except for Castro's Cuba --they were all overthrown. And you could go all the
way back to 1848 in one year there were-- when people in Europe were first
fighting for democracy there were 50 revolutions in one year. I think that a
spark has been ignited in the Middle East, first in Iran-- it took a while but
when the Iranian demonstrations were going on in 2009 if you went to the
internet and to Facebook and so on, again and again there were Egyptian young
people saying, 'Why are we so lame? How can the Iranians get out into the
street and fight their dictator and we can't fight ours?'</p>



<p>JIM GLASSMAN:</p>

<p>And you know this is a connection that I don't think has
been made very much in-- since Tunisia and Iran-- I'm sorry since Tunisia and
Egypt-- this connection between Iran and Arab countries. Is Iran being
affected? Is the Green Movement of which you are an integral part-- is that
being affected by what's happened in Egypt?</p>



<p>MOHSEN SAZEGARA:</p>

<p>Definitely yes and these days I have several emails from
young generation in Iran with big questions. They say that before Egypt they're
asking about Tunisia. Because they say that 'Tunisia succeeded, why shouldn't
we?' And as Josh said, you know, a young person in Iran thinks like an Egyptian
young generation-- because of their new tools; internet, satellite TVs, many of
them are good friends of themselves on Facebook.</p>



<p>JIM GLASSMAN:</p>

<p>But they don't speak the same language.</p>



<p>MOHSEN SAZEGARA:</p>

<p>They use English. I have seen several of them that they use
English especially Diaspora-- the part of the movements who are outside the
country, they have very close ties to each other and they try to learn from
each other.</p>



<p>JIM GLASSMAN:</p>

<p>I want to go back to the Iranian revolution in 1979 because
that was really-- was the biggest revolution in the Middle East-- the biggest
popular uprising in the Middle East in our times. Do you think that what's
going on in these Arab countries is more related to '79 or is it more related
to '09 as far as Iran is concerned?</p>



<p>JOSHUA MURAVCHIK:</p>

<p>I think decisively more to '09. There's been a big question
mark hanging over Egypt through all political discourse for many years, which
is: if the current regime were to fall, will the Muslim brothers take over? Is
the alternative to Mubarak an Islamist Egypt?</p>



<p>JIM GLASSMAN:</p>

<p>And the Muslim brotherhood is-- just tell our viewers--</p>



<p>JOSHUA MURAVCHIK:</p>

<p>Well, they're sort of the original Islamist group founded in
the 1920s and their slogan is 'Islam is the answer.'  The answer to what?  Well presumably to all political problems and
in a sense, although there are different movements and the differences between
Sunni and Shia but they were-- the Muslim brothers were really the originators
of this idea of Islamic politics that were to a large extent borrowed by the
Iranians. And people who followed Egypt have wondered about what is the real
strength of the Muslim brothers. No one knew because it's all subterranean
because there's been a dictatorship and there's been no free votes, there's no
reliable public opinion polls and I think what we've seen just watching the
demonstrations-- the anti Mubarak demonstrations-- is that the Muslim brothers
have been there but they've been a very decided minority and they've been far
outnumbered by people who are talking in clear terms, you know, not about an
Islamic Egypt-- Islamist Egypt-- but about democracy and freedom.  And, that's why I think the answer to your
question is the Egyptians who are in the streets now are looking at Iran of
2009, they're not looking at Iran of 1979.</p>



<p>MOHSEN SAZEGARA:</p>

<p>Josh is right. You know, we learned from Muslim
brotherhood--</p>



<p>JIM GLASSMAN:</p>

<p>You meaning--</p>



<p>MOHSEN SAZEGARA:</p>

<p>I mean my generation in Islamic revolution. But what
happened during the last 32 years we implemented those ideas in Iran, it didn't
work. And now these-- go back to that mutual inter-- interrelations between
these nations. Now if you look at the-- even Muslim activists in Islamic
countries-- even them I mean, <em><span style="font-style: normal;">Rashid</span></em><i> </i>al<i>-</i><em><span style="font-style: normal;">Ghannushi</span></em> in Tunisia or Muslim
brotherhood in Egypt they-- very simple they say that, 'We don't want to make
another Islamic revolution, we don't want to make another Islamic Republic.'</p>



<p>JIM GLASSMAN:</p>

<p>So even they are saying that. And it's because, you're
saying a big factor is the experience in Iran.</p>



<p>MOHSEN SAZEGARA:</p>

<p>Exactly.</p>



<p>JIM GLASSMAN:</p>

<p>That has not been particularly inspirational-- it may have
been inspirational the overthrow of the Shah but what's happened since has not
made anyone particularly excited about having that kind of regime.</p>



<p>MOHSEN SAZEGARA:</p>

<p>I think that not only the experience of those ideas in Iran
failed but again I go back to '09, I go back to last year, everybody in Islamic
countries saw that an Islamic regime is-- how brutal, how attacks to girls--
young girls-- boys on the streets and especially amongst the you know Arab
satellite TVs they had very very good coverage about the events in Iran and
this is the very simple reason that now even the Muslim activists they say at
the first step they say, 'No we are not another Khomeini, we are not another
Islamic revolution and we are just fighting for freedom.' I think that-- I have
read some articles from the present Muslim brotherhood they have been changed
as well; they have changed some of their ideas.</p>



<p>JIM GLASSMAN:</p>

<p>And is another change, Josh, the attractiveness of
democracy? Could we even say that some of the people in Arab countries are
looking at the newest Arab democracy, which is Iraq?</p>



<p>JOSHUA MURAVCHIK:</p>

<p>I haven't seen signs of that, Jim. I was a supporter of the
American invasion of Iraq. I hoped that we could turn Iraq into a democracy and
that it would be a model for the region but I'd be very slow to say that-- that
that succeeded. It may be that Iraq is increasingly becoming a democracy but
the terrible hellish years that Iraq went through of endless violence in the
street I think had a negative effect. I think in the region a lot of people
looked at the chaos in Iraq and said, 'If that's democracy, I don't want that
in my country.' So I don't think we can take Iraq as much of a model for what's
going on in these other countries.</p>



<p>MOHSEN SAZEGARA:</p>

<p>Iraq is not a good example. It didn't happen by the hands of
the people. There is nothing in Iraq to be learned by the other nations. That
was U.S. and British troops invading Iraq and so what happened after that was
terrible.  But the general policy of the
United States; that was a turn point I think. I remember that in those days I
was in Iran in two different universities. In my speeches I said that, this is
for the first time, we have the image of the United States as a government
which supports the dictators, from 70s in Latin America or in the Middle East,
supporting Shah, supporting Mubarak, supporting-- but for the first time, a
president of the United States says, and Condoleezza Rice was in those days
advisor of the National Security, they are insisting for new Middle East, new
democracy for all countries and this is it. I said that I don't know what's the
national benefit of the United States for such a policy but our national
interest, which is democracy, is now in the same way with the United States. So
we can push the dictators in the region.</p>



<p>JIM GLASSMAN:</p>

<p>And how important is this ideological point that Mohsen is
making that the United States by promoting democracy is-- can have a real
impact on countries in the Middle East that are-- where you've got people who
are yearning for democracy? I mean do we-- can we really have an impact?</p>



<p>JOSHUA MURAVCHIK:</p>

<p>Oh, I think the United States always has an impact. The fact
is there are a lot of people who in the world who resent the United States, who
blame the United States for a lot of their problems, but the United States is
an enormous force in the world, it's the most powerful country. It's the
wealthiest country and the American ideas are the ideas we're talking about--
democracy was thought of by a lot of different people but it was tried first in
America and this is where it was proved that it could work, that you could have
a successful, internally peaceful country governed in this way by the people
voting.  And even people who are angry at
us around the world, in Egypt
or other situations, you often see them in the streets saying, 'Why doesn't the
United States
support us more?' So obviously they care a lot about-- and I think if I can echo
one point of Mohsen's, I think that the United States had a mixed record-- we
had pushed democracy in Eastern Europe, in some periods we pushed it in Latin
America, but never in the Middle East. There seemed to be a consensus that
Middle East had to be ruled by Emirs or other kinds of dictators. Bush,
whatever else he may have done right or wrong, he really made a dramatic break
and said, 'No, that's wrong, we don't-- our interests aren't with these
dictators, we want democracy in these countries too.' And remember he singled
out Egypt in-- I think it was a State of the Union address, he said, to call
upon the great country of Egypt which led the Middle East in peace now to lead
it in democracy. And I think to have an American president talking that way left
a certain lasting impact on the way people were thinking about the possibility
of democracy in their own country and region.<span style="">&nbsp;
</span></p>



<p>JIM GLASSMAN:</p>

<p>I want to come back to the Iranian revolution. So why did
the Islamists prevail?</p>



<p>MOHSEN SAZEGARA:</p>

<p>One of the most important reasons was the network of the
clerics-- clergy and the mosques all around the country who supported the
revolution. You know, dictatorship of the Shah destroyed any political party,
any opposition group, except the, you know the mosques and religious
organizations.</p>



<p>JIM GLASSMAN:</p>

<p>But you know in our comparison now between Iran and Egypt
isn't that true today? I mean, certainly Mubarak did his best to destroy or
minimize the effect of civil society. You know you had the Muslim brotherhood
but really not much in the way of other institutions. I have to say that you
know when I was at the State Department we tried to help build some of these
institutions but I don't think we got very far.</p>



<p>MOHSEN SAZEGARA:</p>

<p>But there is a very very big difference between Iran and
Egypt. Sunni countries, the network of the mosques are controlled by the
governments, but in Shi'ism the mosques are independent of the government. So I
mean in Iran, because of Shi'ism, the network of the mosques were independent
from the government and as soon as Ayatollah Khomeini, the leader, succeeded to
persuade the majority of the clerics of Iran to support him and the Islamic
revolution then we had a very powerful tool against Shah.</p>



<p>JIM GLASSMAN:</p>

<p>Can I ask you a personal question? Why did you change sides?</p>



<p>MOHSEN SAZEGARA:</p>

<p>It started about three years after victory of the
revolution. Gradually I found out that the system doesn't work. When I saw the
brutality of the, you know, ideologic regime against the opposition groups and
inefficiency in the industries of Iran and the slogans against all the world
including the United States and several other factors. Gradually I changed my
ideas. I reread all the books of the founders of revolution and at last not
only me, many people like me in my generation, we changed our ideas from a
maximum theory of religion to a minimum theory of religion and to think about a
democratic version of Islam instead of a revolutionary ideologic version of
Islam. A kind of pluralism in religion, pluralistic religion instead of a
monistic religion.</p>



<p>JIM GLASSMAN:</p>

<p>And you think that that is-- that kind of view is shared by
many people in the Middle East?</p>



<p>MOHSEN SAZEGARA:</p>

<p>By many people yeah in my generation. The first step that
came out of these types of ideas in Iran was reform movement in Iran in 90s. We
tried to reform the regime toward a democracy. It didn't work because of the
constitution so the next step was to change the constitution. What happened
last year in 2009 in Iran-- to use the situation of election-- presidential
election in Iran was the biggest step toward a democratic movement in Iran.</p>



<p>JIM GLASSMAN:</p>

<p>So Josh, given what you've said earlier about the kind of a
democratic contagion regionally in Latin America and Eastern Europe, do you
think that the Green Movement will prevail in Iran?<span style="">&nbsp; </span></p>



<p>JOSHUA MURAVCHIK:</p>

<p>I'm very confident that the Green Movement will prevail in
Iran. Iran is the most ripe for democracy of the countries of the region. Even
though they've lived under this terrible theocracy and before that the Shah's
dictatorship but they have had voting, they have had some parties organize,
they have had opposition newspapers. Mohsen was the one who published some of
them. So the people there in Iran have some experience with the forms of democracy
even though they haven't had the privilege to live under it and I think it
would be easy to make that transition in Iran and I think the people will keep
demanding it.</p>



<p>JIM GLASSMAN:</p>

<p>Josh, in your book, <i>The
Next Founders</i>, where you profile leaders in the Middle East who are
fighting for democracy, including Mohsen, you say this, 'A critical requisite
of democracy is democrats,' small d, 'people who believe in democracy and are
ready to work and fight for it.' Can U.S. policy increase the number of democrats
in the Middle East? And how?</p>



<p>JOSHUA MURAVCHIK:</p>

<p>Two things I would focus on. One is just the rhetoric from
the top about the necessity for democracy.</p>



<p>JIM GLASSMAN:</p>

<p>And has there been enough of that?</p>



<p>JOSHUA MURAVCHIK:</p>

<p>Well what's heartbreaking is that President Obama has been,
from the day he took office, so determined to erase the legacy of President
Bush that he's completely turned away from Bush's innovation of advocating
democracy for the Middle East. I'm hoping that the events in Egypt will give
him second thoughts. He has a more silvered tongue than President Bush had, if
we could hear this kind of advocacy of democracy from President Obama it might
even reach further. And the second thing is, it's a young generation that's
leading the push for change and it's also this young generation that's going to
have to assume leadership of these countries when the change comes. They're
going to need all new institutions to create a democracy. It's easy to
overthrow-- not easy but relatively easy to overthrow a dictator, it's much
harder to build a democracy that lasts for-- through elections and through
political conflict and people need training, they need education. We did some
very fine stuff after 1989 with young people from Poland, Czechoslovakia,
Hungary, often bringing them here for a period of time or programs that we ran
over there, to help give them more skills so that they could takeover the
leadership of a kind of a new democratic country and I think we need to do the
same thing in the Middle East.</p>



<p>JIM GLASSMAN:</p>

<p>Thank you Josh Muravchik and thank you Mohsen Sazegara. And
that's it for this week's <i>Ideas in Action</i>.
I'm Jim Glassman, thanks for watching.</p>



<p>Keep in mind that you can watch <i>Ideas in Action</i> whenever and wherever you want. To watch highlights
or complete programs, just go to ideasinactiontv.com or download a podcast from
the iTunes store. <i>Ideas in Action</i> - because
ideas have consequences.</p>



<p>ANNOUNCER:</p>

<p>For more information visit us at ideasinactiontv.com.
Funding for <i>Ideas in Action</i> is
provided by Investor's Business Daily. Every stock market cycle is led by
America's never-ending stream of innovative new companies and inventions.
Investor's Business Daily helps investors find these new leaders as they
emerge. More information is available at Investors.com. This program is a
production of Grace Creek Media and the George W. Bush Institute, which are
solely responsible for its content.</p>



<p>***END OF AUDIO***</p>

<p>*END OF TRANSCRIPT*<span style="">&nbsp;&nbsp; </span></p>]]>
    </content>
</entry>

<entry>
    <title>Race: An Interview with Eugene Robinson - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/04/race-an-interview-with-eugene-robinson.html" />
    <id>tag:www.ideasinactiontv.com,2011:/episodes//2.42364</id>

    <published>2013-04-18T19:19:00Z</published>
    <updated>2013-04-18T19:55:55Z</updated>

    <summary>Eugene Robinson contends in his new book that black America has changed, going from one fairly unified group with a common set of goals (civil rights, economic empowerment) to four different groups: the Transcendent, the Mainstream, the Emergent and the...</summary>
    <author>
        <name>Chris Bowyer</name>
        
    </author>
    
        <category term="Episode 52" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="africanamerican" label="African American" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="eugenerobinson" label="Eugene Robinson" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="mainstream" label="Mainstream" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="mainstreamrecords" label="Mainstream Records" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="oprahwinfrey" label="Oprah Winfrey" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="pulitzerprize" label="Pulitzer Prize" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="unitedstates" label="United States" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="vernonjordan" label="Vernon Jordan" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.ideasinactiontv.com/episodes/">
        <![CDATA[<p>Eugene Robinson contends in his new book that black America has changed, going from one fairly unified group with a common set of goals (civil rights, economic empowerment) to four different groups: the Transcendent, the Mainstream, the Emergent and the Abandoned. He outlines each group and writes that in order to understand where they are going in the 21st century, black Americans need to understand where they are now.</p>]]>
        <![CDATA[<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Welcome to <i>Ideas in
Action</i>, a television series about ideas and their consequences.&nbsp; I'm Jim Glassman.&nbsp; This week: a conversation with <i>Washington Post</i> columnist Eugene
Robinson, author of <i>Disintegration: The
Splintering of Black America</i>. The topic this week, race in America: where
do we stand now?&nbsp; This is <i>Ideas in Action</i>.&nbsp; (MUSIC)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ANNOUNCER:</p>

<p>Funding for <i>Ideas in
Action</i> is provided by <i>Investor's
Business Daily</i>.&nbsp; Every stock market
cycle is led by America's never ending stream of innovative new companies and
inventions.&nbsp; <i>Investor's Business Daily</i> helps investors find these new leaders as
they emerge.&nbsp; More information is
available at investors.com.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Eugene Robinson is a Pulitzer Prize winning columnist at the
<i>Washington Post</i>, a long-time
journalist, an author.&nbsp; He's just
published his third book, <i>Disintegration:
The Splintering of Black America.</i>&nbsp;
Welcome, Eugene Robinson, to <i>Ideas
in Action</i>.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Thanks, Jim.&nbsp; Great to
be here.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Could you just lay out the premise of your book?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>The premise of the book is that-- the way we talk about
black America is wrong.&nbsp; That-- w-- we
talk about it as if it were-- a single entity.&nbsp;
And-- while that was never exactly true, it was more true 40 or 50 years
ago-- and it's not true at all now.</p>



<p>That-- that-- because of the successes of the-- the civil
rights movement, and affirmative action, and all the advances African Americans
have made, or many African Americans have made-- you just really can't talk
about black America as one thing anymore.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And you divide the black American population into four
distinct groups.&nbsp; Could you tell us about
those-- very briefly?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Sure.&nbsp; I-- I went
through census data and marketing studies, and everything, and came up with--
with-- with four groups.&nbsp; One-- the
largest group, which is a majority, actually, is the mainstream.&nbsp; That's not a huge majority.&nbsp; I mean, I'd say 55, 60 percent.&nbsp; The mainstream is the majority of the--
African American population-- that has entered the middle class.</p>



<p>There's a too-large minority-- at least 25 percent, and
maybe as much as 30 percent-- that I call the abandoned.&nbsp; And these are-- the people who did not make
the climb to the middle class, for whom that climb is-- is increasingly
difficult and distant-- and who are, kind of, mired in the stubborn and
multi-generational poverty and dysfunction-- in a cycle that we've really not
been able to break.</p>



<p>And two other groups.&nbsp;
One-- the transcendent group, which is-- a very small elite that has
wealth, power, or influence-- not just relative to other African Americans, but
relative to the whole society or the whole world.&nbsp; And-- and, you know-- examples, President
Obama-- Oprah Winfrey-- African Americans who have just reached--
unprecedented-- heights in-- in-- in the society, and-- and have that kind of--
juice.</p>



<p>And-- the fourth group-- is-- is actually, kind of-- a
bifurcated group.&nbsp; It's-- there are two
segments.&nbsp; I call it the emergent group,
emergent black America.&nbsp; And I use that
word because it kind of expands our definition of-- of what black America
is.&nbsp; The two components of that group,
one is-- black immigrants-- from the Caribbean, and especially from Africa, and
their children-- who are coming in-- in-- record numbers.&nbsp; And-- the other group is biracial Americans--
of whom there are-- increasing numbers.&nbsp;
And-- and-- whose relationship with white America might be a bit
different from-- from, say, mine.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And as-- President Obama, as well.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Exactly.&nbsp;
Exactly.&nbsp; He fits in a lot of
these groups.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>So, how-- how did you get the idea for this?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>This had been working on me for a while-- really for several
years, to the extent there was a discussion about black America.&nbsp; It just seemed to me-- it-- it wasn't going
to the point.&nbsp; It wasn't, for example,
saying anything-- to or about the black middle class, which-- which was
obviously this huge and growing and-- and-- and really quite prosperous--
segment.</p>



<p>So-- I thought about it, thought about it, then two things
happened-- both in-- in 2007.&nbsp; One, I
was-- asked at-- at the <i>Washington Post</i>
just to give a five minute greeting to a group of-- publishing executives from
the African American press, who-- who were having a reception at the <i>Post</i>.&nbsp;
And I was happy to go down, and do, kind of, a drive-by greeting of you
know five minutes or so. And I-- I-- I went down, and started talking.&nbsp; And these ideas about this diversity, and
this-- questions about the community-- just, kinda, popped into my head.&nbsp; So I just started talking about that a little
bit.&nbsp; And I was stunned at the
reaction.&nbsp; People really latched onto it,
and wanted to talk more about it.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And they hadn't thought about it before?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Well, some of 'em-- they had had that-- the--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (JIM
GLASSMAN:&nbsp; UNINTEL)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>--Same kind of proto thinking about it--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Right, right, which is always the best kind of idea--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>--But they hadn't really-- exactly--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (OVERTALK)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--Ready for it.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>-- It's ready to be crystallized.&nbsp; And-- and they just jumped all over it.&nbsp; This five minute drive-by turned into an
hour.&nbsp; And-- as they wanted to talk, and
they wanted to bounce ideas, you know, they're, kind of, thinking off of me.&nbsp; And I said, "Wow.&nbsp; Well, th-- you know, there might be something
here."</p>



<p>And-- the second thing that happened was that the Pew
Research Center came out with-- with a poll.&nbsp;
They did a survey of African Americans, and they came up-- it-- it, you
know, in that survey was an astonishing figure-- that 37-- I believe 37.5 of
African Americans-- who were surveyed said they no longer believed black
Americans could be thought of as a single race.</p>



<p>And-- there was no follow-up question, so y-- you didn't
quite know what that meant.&nbsp; But I knew
that meant something.&nbsp; And it-- it-- it
reinforced this-- this thinking.&nbsp; So I--
I started going through census data, marketing studies, academic studies,
talking to people.</p>



<p>And then something else happened, the Obama campaign.&nbsp; And-- and so, as the year went on-- the
campaign looked more and more viable, and I got, kind of, busy that year,
too.&nbsp; But we agreed-- Doubleday and I
agreed that-- you really couldn't do this book without seeing how that story
came out.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Right.&nbsp; Yeah, I think
one of the most moving parts of your book is where you talk about what pre-civil
rights America was like.&nbsp; Can you
describe that a little bit-- within the context of the book?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Pre-civil rights America, I'm old enough to-- to remember--
some of it.&nbsp; I was-- I was a child.&nbsp; I grew up in Orangeburg, South Carolina-- at
the tail end of Jim Crow.&nbsp; Ours was the
second class-- to integrate-- to go to the newly integrated white high school
in town.&nbsp; There was of course a white
high school and a black high school.&nbsp;
There was a black side of town and a white side of town.&nbsp; In 1968, when I was in high school, there was
an incident in our town called the Orangeburg Massacre--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Oh, yeah?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>--In which several-- several-- black students were killed in
a demonstration over a segregated bowling alley.&nbsp; So, in the context of-- segregated
neighborhoods, in which most African Americans lived-- there were--
economically, culturally, and socially-- integrated communities, racially
segregated, but in other ways integrated.</p>



<p>And so-- I remember in my neighborhood, you had, you know,
my mother was a college librarian, my father taught at college.&nbsp; One of my teachers lived down the street, but
also the shoemaker, and-- and-- and-- and his wife was a seamstress.&nbsp; And the lady who serves French fries in the
South Carolina State College cafeteria lived next door.&nbsp; It was-- we were, kinda, all together.&nbsp; We were literally all in the same boat.</p>



<p>There were businesses, there were black owned businesses
that were pa-- you know, patronized by African Americans.&nbsp; And so, there was a real fabric to the
community.&nbsp; And I'm talking about a
small, you know, small town in the-- in the south, but you could say much the
same about the south side of Chicago, for example, or about Harlem, or about
the lar-- northern cities-- where so many African Americans ended up-- after
the great migration.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>So more homogeneous ca-- socially--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Uh-huh (AFFIRM).</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--Not necessarily economically.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Right.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>But it's more, kind of, a feeling of-- of one-- one group,
and a kind of web of support, as a result.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>There-- there was certainly a web of-- of support, and there
were-- there were institutions, as well.&nbsp;
For example-- when I was a kid, the vast majority of-- of African
Americans who had college degrees had earned them at historically black
colleges and universities.&nbsp; I think it
was something like 80 percent.</p>



<p>Well, now-- a much greater percentage of-- of the black--
population in the country has-- is college educated, which is-- which is a very
good thing.&nbsp; But the-- the proportions
have, kind of, flipped, and only less than 20 percent of-- of--&nbsp; blacks who go to college go to historically
black colleges and universities.&nbsp; They
all go to institutions of-- many of which didn't accept African Americans when
I was a kid.</p>



<p>And as new opportunities opened up-- and it was possible in
my home state to go to the University of South Carolina, or to go to Clemson,
or to go to the College of Charleston, or whatever-- and it was possible for--
for the best professors to get-- jobs and then tenure at these white
institutions-- that created a real crisis for historically black colleges.&nbsp; And-- and-- and-- and some are surviving it,
and some are-- some are not.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And you, yourself, went to the University of Michigan.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Yes.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And was that-- an experience during the '70s, I guess it
was?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Yes, Uh-huh (AFFIRM).</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>The-- d-- were you-- w-- were you radicalized in any way?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>I think I k-- I kind of was, although more in the-- in the
sense of Michigan at that time was-- center of campus radicalism.&nbsp; And-- and-- and my first week on campus, I
wandered in to the student newspaper.&nbsp;
And it was just love at first sight.&nbsp;
I never really thought I wanted to do anything else--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p><i>Michigan Daily</i>--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>--The <i>Michigan Daily</i>,
yeah.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--Very good newspaper.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>It was a great newspaper.&nbsp;
I majored in Michigan Daily-- at Michigan.&nbsp; I was-- co-editor in chief my last year.&nbsp; And-- and-- and I-- I learned that that's the
way I wanted to-- to experience the world.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And so you, yourself, are an example of someone who--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Uh-huh (AFFIRM).</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--Moved out of this, I don't know, cocoon, or this--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Absolutely.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--The-- this, kind of, homogeneous society.&nbsp; So now, fast forward-- 40 years, so it's
now-- 2010.&nbsp; And in your book, you write,
"It was increasingly clear to me that there was no one black America, that
there were several, and that we had to distinguish among them if we were to
talk intelligently about African Americans in the 21st century."</p>



<p>So-- so you've broken-- black America into these four groups
that you-- you mentioned earlier.&nbsp; Can
you be a little more specific?&nbsp; So the
first group is the transcendent.&nbsp; This is
Barack Obama, Oprah Winfrey-- Tiger Woods.&nbsp;
Did this group actually exist prior to-- the '50s, '60s, '70s--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Not-- not in-- not in this way.&nbsp; African American president, African American,
you know, financier-- CEO could not have happened.&nbsp; It simply could not have happened-- in years
past.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Do you think that the people in the transcendent category
still suffer from racism in any way?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>There can be contexts where-- you're just another black guy,
or just another black woman.&nbsp; And-- if,
in one of those contexts-- you run across someone who's inclined to
discriminate, you get discriminated against.&nbsp;
But I-- but it's-- I don't think the people in that group spend a whole
lot of time worrying that they, personally, are being-- being discriminated
against, or-- or being treated-- being treated wrong, necessarily.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Middle class, that's the second group, middle class African
Americans.&nbsp; They've-- they have steadily
risen in income, in education levels--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Uh-huh (AFFIRM).</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--And-- but you say they still live in two worlds.&nbsp; Th-- th-- there is this distinction between
middle class-- African Americans and middle class whites that maybe doesn't
exist between-- in the transcendent group--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Well--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--Between-- African Americans and whites.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>I do believe that there is-- there is a kind of living in--
in two worlds-- aspect to middle class black American life.&nbsp; The legacy of the civil rights movement, the
sense of solidarity, and the sense of unity, and the sense of there being
strength in-- in-- in numbers, and strength in-- in-- in finding, you know,
common cause among us, and among ourselves.</p>



<p>And-- and that ethic, I think, is-- y-- you know, is still
strong, even if it's in conflict with-- actual circumstances.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Right.&nbsp; Right. So this
is-- these are the two worlds that you're talking about.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Uh-huh (AFFIRM).&nbsp;
Uh-huh (AFFIRM).</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>One is where there's more-- more, let's say, solidarity with
other African Americans.&nbsp; And there's
another where y-- y-- where-- where you're more, sort of, part of an integrated
world, and you--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Yeah.&nbsp; Uh-huh
(AFFIRM).</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--and you also, you feel that-- that sometimes middle class
African Americans feel kind of torn, or even guilty about it.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Well, I-- t-- to a certain extent.&nbsp; When-- the ability arose for-- for black
Americans to move out of-- what were by then decaying black neighborhoods and
live elsewhere, where they can have-- better schools, nicer homes,
whatever.&nbsp; They took advantage of those
opportunities.&nbsp; Of course they would.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>So is there, kind of, a cognitive dissonance here?&nbsp; In other words, you're-- you're-- you're
moving up, but you, kind of, feel like, "We're leaving-- we're leaving
people behind.&nbsp; And we have some kind of
responsibility for that"?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Yes, I-- I do believe that.&nbsp;
I don't wanna leave the impression that most middle class black
Americans-- you know, sit around every night, you know-- you know, mashing
their teeth, and, kind of-- you know-- at-- but there is-- the social
consciousness, I think.&nbsp; And really a
sense of lost potential.&nbsp; And there's one
other factor, too, meaning in-- in one-- family, even, will be not just
exclusively middle class-- people, but also people who-- who would fit in the
group that I call the abandoned group.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>You call the group the abandoned--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Uh-huh (AFFIRM).</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--and why do you say that?&nbsp;
Who are they abandoned by?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Oh, I think-- by everybody, k-- (CHUCKLES) by
everybody.&nbsp; I mean, re-- you know,
there-- there have been times when we-- when w-- when we talk, and try to act
on the-- the, kind of-- scourge of persistent-- poverty and dysfunction.&nbsp; And-- and recently, we don't talk about it a
whole lot.&nbsp; We did when Hurricane Katrina
happened, and-- and-- and-- and kinda, flushed out all this dys-- dysfunction,
and--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And you talk about that very movingly in-- in-- in your
book.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>In New Orleans (UNINTEL)--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>But-- but you think that that's n-- that-- th-- that was
just, kind of-- a moment?&nbsp; </p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>I think that was a moment.&nbsp;
And-- it was a moment, actually, when we said, "By golly, now,
we're gonna gave that, sort of, you know, discussion about poverty."&nbsp; Or, not just a discussion, but, "We're
really gonna-- we're not gonna avert our eyes anymore.&nbsp; We're not gonna pretend that it's not
there."</p>



<p>And not just poverty.&nbsp;
I'm talking about entrenched multi-generational dysfunctional black
poverty.&nbsp; You know, that's, kinda, what
I'm talking about in the book.&nbsp; And,
obviously, there are other kinds.&nbsp; We
said we were gonna talk about it, and we did for a little while.&nbsp; But we-- we're not now.&nbsp; I mean, we haven't been for a while.&nbsp; And--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>But-- but-- but would you like to see this revived?&nbsp; In other words, is-- is-- is this something
that President Obama could do?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Well-- I think it's something that he could do.&nbsp; I think it's something that-- that-- that any
president could do, and, to my mind, at least, should-- should want to do, on
any-- number of bases.&nbsp; And I-- I don't
think it's wise for this country to-- to write off that many people.&nbsp; I-- I j-- I really don't.&nbsp; I don't think that's a good idea.</p>



<p>And-- and-- I also-- believe that the rungs of the ladder
that previous generations used to climb out of poverty, so many of those rungs
just aren't there.&nbsp; I mean, you can't do
what Michelle Obama's father did-- you know, in Chicago, like so many other
people did who were in the great m-- migration, get a good city job, you know,
the-- the-- steady-- job security-- get a house, raise a family, send your kids
to college, so they have a better life, have a pension when you retire.&nbsp; It kind of sounds like a Grimm's fairy tale.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>So-- so are you saying that-- you-- you note in the book
that this group, this abandoned group, was, say about 50 percent of the
population 40 years ago, and it may be 25 percent today.&nbsp; And you think it's, kinda, stuck at 25?&nbsp; Might even-- maybe it will go up?&nbsp; Or do you think it's, kind of, evolutionarily
gonna-- gonna decline, but maybe slowly?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>If it's gonna decline, I think we'll have to give it a nudge
to decline.&nbsp; I mean-- my reading of-- of
the evolution is that it went down to that-- about-- approximately 25
percent.&nbsp; And it's, kind of, bumps
around.&nbsp; And then it'll-- it'll dip, you
know, when the economy's really roarin', it'll dip some.&nbsp; Now that the economy is not roaring-- it--
it's gone up some.&nbsp; But that's starting
to look distressingly, to me, like a bench line.&nbsp; And that's not acceptable.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>So-- so what's the next group?&nbsp; The s-- you got the-- the transcendent--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Uh-huh (AFFIRM).</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--The middle class, the-- the--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Abandoned.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--The abandoned.&nbsp; And
then your next group</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (OVERTALK)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--is, sort of, bifurcated.&nbsp;
It's--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Right.&nbsp; Well, let's
talk about the immigrants first--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Okay.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>--If you want to.&nbsp; I
mean, the-- the-- immigration from the-- from the Caribbean is-- is not really
new.&nbsp; It has increased some.&nbsp; But what's-- what is quite new is--
immigration from Africa-- which was almost impossible back-- before the--
couple of changes in the immigration laws--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Right.&nbsp; So this is--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (OVERTALK)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>--Quotas--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--this is a result of legal change.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Exactly.&nbsp; And-- so
immigrants are, you know, from Nigeria, Ethiopia, Ghana are-- are arriving in--
in unprecedented numbers.&nbsp; They-- are the
best educated regional group of immigrants coming to this country right
now.&nbsp; They're better educated than the
Asians.&nbsp; If you think about it, that
makes sense, because if you're gonna come here from Burkina Faso, you must be really
something.&nbsp; You know, you must be
prepared to, you know.</p>



<p>They generally arrive in intact families.&nbsp; Two parent families-- strong, kind of, family
traditions.&nbsp; And they're doing very
well.&nbsp; And their sons and daughters are
doing spectacularly well, and we're gonna hear a lot from them--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>So what's the relationship between that group and, let's say
the-- the middle class group of African Americans?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>You know-- some-- there has been some friction.&nbsp; And there's-- there's a question that's out
there that doesn't get o-- get asked that often, and-- and-- and really hasn't
been answered.&nbsp; But affirmative action,
is that-- should that be for the sons and daughters of-- of-- or descendants of
slaves?&nbsp; People who suffered the injury
get the rem-- remedy?&nbsp; Or-- is it for
black people who are-- potentially liable to discrimination, which includes a
larger group including the immigrants?&nbsp;
And-- and-- where you, kind of, see this question being asked
increasingly is-- is in-- in a question of college admissions.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And then the second part of the fourth group is-- people
who've-- who've intermarriage-- biracial, or--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (OVERTALK)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Right.&nbsp; Biracial,
triracial, you know.&nbsp; And-- and-- and
it-- and it's just-- just--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Is that increasing?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Well, it is increasing.&nbsp;
It's hard to get really-- real numbers.&nbsp;
And frankly-- you know, w-- when you talk about-- race in this context,
of-- you know, of course, you're talking about something that's actually
totally meaningless, as-- as-- you know, in terms of biology, it doesn't mean
anything.&nbsp; In terms of sociology, it-- it
means something.</p>



<p>But-- but-- you know, we sound like-- like the laws used to
be in Louisiana, where they would-- you know, who's a melano?&nbsp; Who's-- an octoroon?&nbsp; Who's a this and who's a that-- depending on
what-- what fraction of black parentage you had.&nbsp; And part of the traditional black experience
has been this sense of otherness.&nbsp; And
with-- and so if--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And-- and that-- and that was imposed by-- in part by white
America, by these laws, like in Louisiana, you know, if you're 1/16th black,
you know, you're-- you're black--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Yeah, you're black.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--Y-- so-- so if that-- if that's dissipating in some way, I
mean, is it possible that, kind of, that race will, in America, will, kinda
wither away--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>You know, I-- I think it's--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>--As it has in some countries?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>--I think it-- I think it is entirely possible.&nbsp; I think that date is-- is in the future.&nbsp; I mean, we're not in post-racial America.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Uh-huh (AFFIRM).&nbsp; How
has President Obama affected-- race in America?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>He made something possible that wasn't even on the radar
scope.&nbsp; I mean, if you had asked me, you
know, ten years ago, would there be an African American president in my
lifetime, I would have said, "Well, gee, I never thought about that."&nbsp; But I'd have to guess not-- if I did think
about it.&nbsp; And so an amazing and
incredible moment, I think, for this nation in its nearly-- 400 year history of
dealing with-- dealing with race.</p>



<p>But, you know, progress never comes without a cost, I
think.&nbsp; And-- and the cost, I think-- in
this case, and I'm judging as much from the kind of e-mail that I get as a
columnist as anything else-- clearly it's caused anxiety among some people,
and-- among some whites-- or contributes to anxiety among some whites-- about--
demographic change, about-- race.&nbsp; I
don't-- I don't know what all is-- is involved.&nbsp;
But--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>w-- w-- what do they say specifically?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Well, no, I mean, that-- you know-- some--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>You-- you mean--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (OVERTALK)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>--frankly racist kind of-- kinds of--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Th-- these are directed at you?&nbsp; Or-- or they're&nbsp; directed at--</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Or at-- or at President Obama, or, you know, or-- or both.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>But is this-- a kind of sentiment that you didn't s-- see
before President Obama became president?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Right.&nbsp; Right.&nbsp; I hadn't-- I hadn't-- I hadn't been seeing
this.&nbsp; And I-- and-- and-- and not the
sort of vitriol.&nbsp; And, again, I, you
know, one-- one assumes, and I hope this is-- this is a relatively small group
of people.&nbsp; But-- but it-- it's
surprising.&nbsp; It's stuff that I hadn't
heard since I was a kid.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Do you think that President Obama, because he is an African
American, has a more difficult time dealing with a problem of the abandoned, or
race in general?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Yes, I do.&nbsp; When--
when he was running for president, I wrote that-- candidate Obama-- in order to
be elected, was going to have to be perceived as the least aggrieved black man
in America.&nbsp; And I still believe
that.&nbsp; I mean, that there-- th-- it-- it
was-- it was new.&nbsp; It-- it was-- he had a
lot of history to overcome.&nbsp; And-- he was
just gonna have to be seen as a non-threatening figure by white America.&nbsp; And he was.</p>



<p>I also believed, and-- and I think most African Americans--
that I talked to at the time believed that it was going to be just politically
more difficult for the first black president to do-- to enact any sort of
specifically black agenda, or, you know, a-- agenda aimed at-- improving
situation of black America specifically.&nbsp;
That-- that was gonna be hard. </p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>So you're not disappointed, just a fact of political life?</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>I-- yeah, I th-- I think it's just a fact of political
life.&nbsp; I think, you know, it-- it--
there's-- there are special burdens that come with being first at
anything.&nbsp; And there's a kind of
scrutiny, and-- and-- that-- that just doesn't-- doesn't attach when you're the
second, or the third, or the fourth.&nbsp; And
it's, you know, first is first.&nbsp; And
this-- this is a new thing for this country.&nbsp;
And so, no, I'm not disappointed because I just thought that was just
the way it was gonna be.&nbsp; </p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>Thank you, Eugene Robinson.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EUGENE ROBINSON:</p>

<p>Thanks so much Jim-- it's great to be here.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JIM GLASSMAN:</p>

<p>And before we go, I want to remind viewers that you can
catch <i>Ideas in Action</i> wherever and
whenever you choose.&nbsp; To watch complete
shows, just go to our website, ideasinactiontv.com or download a podcast from
the iTunes store.&nbsp; And that's it for this
week's <i>Ideas in Action</i>.&nbsp; I'm Jim Glassman, thanks for watching.&nbsp; (MUSIC)</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ANNOUNCER:</p>

<p>For more information, visit us at ideasinactiontv.com.&nbsp; Funding for <i>Ideas in Action</i> is provided by <i>investor's
Business Daily</i>.&nbsp; Every stock market
cycle is led by America's never ending stream of innovative new companies and
inventions.&nbsp; <i>Investor's Business Daily</i> helps investors find these new leaders as
they emerge.&nbsp; More information is
available at investors.com.&nbsp; (MUSIC) This
program is a production of Grace Creek Media and the George W. Bush Institute,
which are solely responsible for its content.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; * * *END
OF AUDIO* * *</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; * * *END
OF TRANSCRIPT* * *</p>



]]>
    </content>
</entry>

<entry>
    <title>Mexico: Taming the Drug Cartels - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/04/mexico-taming-the-drug-cartels.html" />
    <id>tag:www.ideasinactiontv.com,2011:/episodes//2.42358</id>

    <published>2013-04-10T22:17:17Z</published>
    <updated>2013-04-11T17:11:20Z</updated>

    <summary>Opinions vary about how close Mexico is to becoming a failed state. Drug cartels control the municipal workings of entire areas of the country; the police, elected officials and the judiciary, and corruption is rampant. The US and Mexico share...</summary>
    <author>
        <name>Chris Bowyer</name>
        
    </author>
    
        <category term="Episode 49" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="gulfcartel" label="Gulf Cartel" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="loszetas" label="Los Zetas" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="mexico" label="Mexico" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="nuevoleón" label="Nuevo León" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="oaxaca" label="Oaxaca" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="osielcárdenasguillén" label="Osiel Cárdenas Guillén" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="tamaulipas" label="Tamaulipas" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="unitedstates" label="United States" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.ideasinactiontv.com/episodes/">
        <![CDATA[<p>Opinions vary about how close Mexico is to becoming a failed state. Drug cartels control the municipal workings of entire areas of the country; the police, elected officials and the judiciary, and corruption is rampant. The US and Mexico share a significant border and huge amounts of goods and people flow between them. What are the risks to the US if Mexico sinks into anarchy and what should we be doing now to prevent it?</p>]]>
        <![CDATA[<p>JAMES GLASSMAN:</p>
<p>Welcome to <i>Ideas in Action</i>, a television series about ideas and their consequences. I'm Jim Glassman. This week: is the drug war pushing Mexico into chaos? Lurid headlines in Mexico have become a daily occurrence. Mass killings and assassinations are on the rise as Mexico drug cartels battle each other, the police and even the Army. Now the US military has begun training Mexican troops to fight the cartels. Should America get more involved in the growing unrest just over its southern border?</p>
<p>Joining me to discuss this topic are Andrew Selee, director of the Mexico Institute at the Woodrow Wilson Center and adjunct professor of government at Johns Hopkins University, Arturo Alvarado Mendoza, a fellow at the National Endowment for Democracy and professor of sociology at El Colegio in Mexico and Armand Peschard of the Center for Strategic and International Studies, CEO of a consulting firm for companies doing business in Mexico. The topic this week: are drug cartels taking over Mexico? This is <i>Ideas in Action</i>.</p>
<p>ANNOUNCER:</p>
<p>Funding for <i>Ideas in Action</i> is provided by <i>Investor's Business Daily</i>. Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions. <i>Investor's Business Daily</i> helps investors find these new leaders as they emerge. More information is available at investors.com.</p>
<p>JAMES GLASSMAN:</p>
<p>Every day, nearly a billion dollars worth of goods and one million travelers legally cross the border between Mexico and the United States. The two countries' economies, cultures and populations are intertwined. And increasingly, so are its militaries.</p>
<p>Mexico is reeling from a violent drug war that has claimed at least 30,000 lives since 2006. That's when Mexican president Felipe Calderón called in the Mexican army to take on the drug cartels. Now, US military advisors have started training their Mexican counterparts. What more can and should the two countries do to combat the drug violence in Mexico? </p>
<p>Andrew, in January 2009, the US joint forces command said, I'm goING TO read this, Warn, "that Mexico is at risk of becoming a failed state," because of its ongoing "vicious drug war." Now was that hyperbole?</p>
<p>ANDREW SELEE:</p>
<p>I think it was hyperbole. I mean, we're looking at a country that has several parts under severe stress. Violence is concentrated in the northern border, near the United States, the main drug transshipment routes into the United States, some port areas around Acapulco and elsewhere and a few transshipment corridors. But most of the country's fairly peaceful.</p>
<p>It is, you know, nowhere close to being a failed state. But there are parts of the country where the drug traffickers are going at each other with incredible violence that are under great stress. And we shouldn't minimize that. But-- but overall, you can travel through most of Mexico and not feel like there's a war going on, not feel like there's even the presence of this kind of violence that we see in the news.</p>
<p>JAMES GLASSMAN:</p>
<p>Do you feel, Arturo, that Mexico's a failed state?</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>No, I don't think so either. But what I think is happening is that we are seeing-- I mean, the implementation of a huge, new-- federal policy trying to cope with the problem, that has been producing also more violence that we can-- that we could-- expected on this issue.</p>
<p>JAMES GLASSMAN:</p>
<p>So Armand, so the policy itself is promoting more violence. Is this-- the idea is this is temporary, then they're goING TO get it under control?</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>Well, you know, Mexico's a relatively young democracy. They're in the process of strengthening the judiciary. In doing so, not only are they trying to strengthen the judiciary, the prosecutorial process, but the law enforcement institutions as well. And in doing so, they're going after organized crime. Organized crime is-- very strong. It's a very lucrative business. And it's only natural that these-- interest groups would push back.</p>
<p>JAMES GLASSMAN:</p>
<p>Is the Mexican judiciary getting less corrupt? I mean, the view that we have here is, whoa, these-- these guys are really corrupt. And a lot of them are in the pockets of the-- of the drug-- cartels. Is that changing?</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>It's-- it's changing. It's an ongoing process. You know, the FBI has-- has been involved in-- in the administration of polygraphs-- vetting process. The US government is helping the Mexican government through its own technical assistance in trying to increase the integrity of these institutions. But-- you know, it's not-- it's not an easy process to undertake in Mexico.</p>
<p>JAMES GLASSMAN:</p>
<p>Let's-- let's step back for a second. How important is the relationship between the United States and Mexico, economically, let's say?</p>
<p>ANDREW SELEE:</p>
<p>Oh, it's huge. I mean, Mexico-- I don't think most Americans realize how important it is. I mean, Mexico is the second export market for-- for the United States. I mean, this is, after Canada, the second country that gets our exports. We want to talk about reactivating the US economy, How do we really double our exports, you know, in five years? Mexico and Canada are probably the-- the two most crucial pieces. India, China, other markets don't take nearly as many exports.</p>
<p>It is also, obviously, you know, border communities are-- enormously interdependent. If you look at all the border states, Texas, California, New Mexico, Arizona, these are states who depend for their economic livelihood on production processes on both sides of the border, and commerce between both sides. And you know, if you look at our demographics, almost one in ten Americans is of Mexican descent today. This-- we're deeply tied to Mexico, both in terms of economics, but also in terms of our heritage.</p>
<p>JAMES GLASSMAN:</p>
<p>That's an amazing statistic. I mean, is that-- that-- that includes illegals?</p>
<p>ANDREW SELEE:</p>
<p>That includes illegals, but illegals are a really small piece of that actually. We're talking about-- about 10 percent of Americans have some-- have heritage in Mexico. Of that, about two or three percent of the people here ARE without documents. But the vast majority are people who were born in this country or who came to this country legally.</p>
<p>JAMES GLASSMAN:</p>
<p>So-- Arturo, so-- so the United States has-- a major stake in what happens in Mexico. I mean, not only is it close, but it's-- but it's-- we-- we're economically-- dependent. We're culturally-- inter-- intertwined--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>IntertwineD-- in a way, yeah. And-- and this interdependency's growing. And I-- I would like to stress to that, for the Mexican side-- United States is the most strategic economic partner and also the commer-- the most important commercial-- and political partner in-- in the region. So this is a crucial relation, both for the governments and both-- and also for the business community and for the Mexican society.</p>
<p>JAMES GLASSMAN:</p>
<p>And you know, when you-- when you look at-- the-- the economic statistics, Mexico's actually doing pretty well. I mean, it has recovered from the recession -- </p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>not-- not as much--</p>
<p>JAMES GLASSMAN:</p>
<p>--And the stock market's going up--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>it's on the way - It's on the way. The stock market in Mexico, it's-- it's-- it's in the way of getting recovered. A few weeks ago, there was a bond that was-- announced by Mexico and was-- almost immediately at the stock market in the United States, which is-- which is just a sign that is-- I mean, that the investment community in the world trusts that Mexico has potential to grow and is an important economy in the world, so-- which is a good indicator.</p>
<p>But on the other hand, we're still on the-- I mean, on the back part of the recovery of the United States. The problem of narco traffic and-- and organized crime, as he mentioned, is not just a simple issue about this war against drugs. But it's-- I mean, it's an issue about all the interTWINED organizations and economic interactions that this organized crime has created in Mexico for decades.</p>
<p>JAMES GLASSMAN:</p>
<p>Armand, is this-- is this something new, the nar-- this crime or is it just accelerated, or is it something we just haven't paid any attention to?</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>No, I mean, organized crime has been in Mexico for many years. Part of what's happened is that when-- when Mexico was governed by a single party, one of the ways in which they dealt with organized crime by-- was by arriving at pacts of coexistence. That's much more difficult to do in-- in a democracy. Mexico has become very plural. You no longer have a single party holding-- you know, the presidency, the majority in Congress, the majority of governorships and municipalicities. Now, Mexico's much more plural. And it's very difficult for one party to try to negotiate with organized crime, which was what was done in the past.</p>
<p>JAMES GLASSMAN:</p>
<p>So how is Calderón doing? And-- and what do the Mexicans think of it?</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>Well, I tend to think that at the end of the day, he's doing well. This is not an easy battle. There are always going to be critics. There are always going to be setbacks. But comparatively speaking, I think that this is a government that has done more than any other previous government, in terms of trying to push through the reform. It's not just the-- the executive branch. The Mexican Congress as well-- has been supportive in this transformation.</p>
<p>JAMES GLASSMAN:</p>
<p>Do you-- do you-- do you agree with that, Andrew? Do you think Calderón's done a good job?</p>
<p>ANDREW SELEE:</p>
<p>I think he's done the right thing. I think he's done the only thing he had to - Any president in his position would have had to-- to really step up. The thing, you know, as-- as drug cartels-- shifted their strategies from the Caribbean to Mexico, this was going to happen to whoever was sitting in that-- in that office right there. And so I think he's-- he's stepped up. He's been committed to this.</p>
<p>That said, where they've moved slowly is on the judicial reforms, the police reforms, the kind of things that make it hard for organized crime to operate. Always say that you have-- you know, the biggest consumer nation for drugs in the world, the United States, sitting next to a country with weak rule of law, Mexico, that's just gone through a democratic transition. I mean, that's a recipe for disaster. Mexico has done very well in going after some of the cartel leaders. They've had some real success in the last year. They've caught some of the-- the biggest fish in the-- in the pond.</p>
<p>But they haven't done as well yet in stepping up the-- the pressure on reforming the police and the judicial system and the prosecutors. You've still only got about two to five percent of major crimes that are-- ever lead to a conviction and putting someone behind bars. If you're-- you know, if you're a hired killer, your chances of ever ending up-- behind bars is very low, which means there's huge incentives to continue doing what you're doing. If you're a drug trafficker, huge incentives to continue doing what you're doing. </p>
<p>And on the other side of the border, in the United States, there's a lot more we could be doing to help Calderón out as well. Particularly following the money trail and-- and the trail of weapons that are going southward and-- and getting into the hands of the drug traffickers.</p>
<p>JAMES GLASSMAN:</p>
<p>Because the Mexicans are complaining that they get all their-- weapons from the United States. They're saying, you know, if you had-- if you had tougher gun laws-- we'd be better off. I don't-- do you think that's true?</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>I mean, it might-- it would-- it might be better off. I'd like just to add one thing that it's important to point out in this-- contemporary poli-- federal policy about the organized crime, the war against organized crime, that there is strong impunity even now. I mean, the government has not really improved its-- policies and-- and the development of-- better policies to improve and to reduce impunity. That's the first thing.</p>
<p>The second thing that is important to note about this policy, that has been implemented at the fEDERAL level, is that-- to begin with, there was no-- I mean, forecast to why-- how long this was goING TO take. Still we don't know what is going on. And third, there is-- a systematic problem with violations of human rights of citizens. And citizens are still, I mean, on the dark-- on the darkroom of all these things. We are completely unprotected when you go to these wars, because the wars are going on in the streets in Mexico, in the border cities, in Monterrey and in other places.</p>
<p>JAMES GLASSMAN:</p>
<p>You know, I--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>This is a major issue that was not forecast by the govern-- Calderón government. And they have not done enough in order to really protect the citizens through these things. So this policy has to shift, has to improve the security of the population --</p>
<p>JAMES GLASSMAN:</p>
<p>And does that--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>As well as foreigners.</p>
<p>JAMES GLASSMAN:</p>
<p>Does that affect the poor disproportionately?</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>I think it's affecting--</p>
<p>JAMES GLASSMAN:</p>
<p>This kind of abuses you're talking about--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>--most of the poor and the middle class in major cities in the country. One issue that you can see clearly, for instance, is in Ciudad Juárez, in the border city, most of the people is migrating to the United States, in order to pro-- protect themselves, protect their faMilies--</p>
<p>JAMES GLASSMAN:</p>
<p>Right. But they're protecting themselves against organized crime. They're not protecting themselves from-- from government abuses.</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>Well, up to the point, no. But the problem with the army and military police abuse goes all the way from middle to lower classes. And this is not stopping yet. there has been strong discussions at the Con-- at the level of Congress about reforming the military, the military justice system, And also trying to bring up the military into civilian justice. We have not-- been able to really put this into, I mean, a legal new settlement.</p>
<p>JAMES GLASSMAN:</p>
<p>And do you think-- well, let me ask Armand this question. Is-- is that a good idea? In other words, Mexico is a federal system, like the United States. And-- there is pro-- there are problems with local police. Would it be better if the federal government had played a bigger role, either through the federal police or through the military?</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>Well, that's, I think, what they're trying to do, is professionalize and try to-- weed out, for example, some of these lower-level police officers that have been on the payroll. They've been-- they've been providing outsourcing security services for organized crime. And the challenge for the federal government is how do you address that? And one of the ways in which they-- they figure to do that is by trying to create a federal police-- that would be deployed at-- at the state level to basically administer-- law enforcement operations at state and municipal levels.</p>
<p>JAMES GLASSMAN:</p>
<p>This-- this also brings up the issue, which you raised earlier, of the role of the United States. So during the Bush Administration, there was the Merida Initiative. Is that still-- what is that? And is it still robust? And is that a way to help-- Mexicans in this-- in the law enforcement effort?</p>
<p>ANDREW SELEE:</p>
<p>Well, I think-- I think we've had a real positive development. The Merida Initiative, which was announced by President Bush and President Calderón, was the idea of the US supporting Mexico with a package of aid-- some hardware for the police and military, but also training for the judicial system, for the police and-- and for prosecutors, as well as some software inspectors, things you can-- you can find. You know, weapons and drugs that are crossing the border.</p>
<p>It's worked fairly well. It's-- it's moved slowly. But-- but where it's worked most effectively is I think it's gotten the US and Mexico to go beyond blaming each other for the problem. In the past, people in Mexico often said, "The US is to blame. You know, you guys are using the drugs up there. If you'd stop using drugs, we wouldn't have this problem." In the US, we'd look across the border and say, "It's the power of corruption in Mexico. You know, if the authorities weren't corrupt, we wouldn't have this problem."</p>
<p>We've moved beyond that. And we're talking about shared responsibility. Now what that means depends on the day. But-- but finally, we're talking about the fact that, "Wait a minute. This is not gonna get better until we deal with the consumption side in the US, until we build rule of law in Mexico. Let's see what we can do together."</p>
<p>And there seem to be some genuine efforts, where I think it's been most effective. The-- the aid is flowing slowly, slower than it probably should. But it's flowing. But more importantly, I think there's a lot of information sharing. Particularly as-- as these drug dealers move across the border, they've started to share intelligence about their movements, about where they hide out, where their money is located.</p>
<p>So we're starting to see some captures of leaders, some captures of money that we didn't see in the past. Starting to see some capturing of weapons, though not as much. And so I think we-- we've seen a cooperation that's increasing in a positive way. Could it go a lot deeper? Yes. I mean, I think we're at the beginnings of this.</p>
<p>For Mexico, there's a lot of distrust of the US. And you know, sort of the traditional, the big country to the north. And I think in the US, there's sort of a distrust - You know, where is corruption in Mexico if you share information? How's it goING TO be used? But the more they have the successes, the more they move forward.</p>
<p>JAMES GLASSMAN:</p>
<p>Arturo, this-- this-- this issue of demand for drugs in the United States. I agree. The blame game doesn't help anybody, but the fact is--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>--it does not help in the end.</p>
<p>JAMES GLASSMAN:</p>
<p>Right, but the-- but the fact is that this is-- a critical element--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>Element--</p>
<p>JAMES GLASSMAN:</p>
<p>--in this entire puzzle.</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>Yeah.</p>
<p>JAMES GLASSMAN:</p>
<p>Is there something that the United States could do on either-- either legalizing drugs, for example, or-- or-- or being tougher on drugs--</p>
<p>(OVERTALK)</p>
<p>JAMES GLASSMAN:</p>
<p>--that would help the situation in Mexico?</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>Well, but I mean-- you can take it not only for the United States, but also for the Mexican case, because drug conSUMPTION in MeX-- illegal drug consumption is growing. I mean, a very steady, fast-- pace, which is another problem that we are facing. And there's no policy for that. Legalizing illegal drugs now, it's a very complex process, because you don't-- you will not only legalize the consumption. But there is the whole-- production chain that you really have to look backwards.</p>
<p>JAMES GLASSMAN:</p>
<p>Right. So you're saying--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>So this is--</p>
<p>JAMES GLASSMAN:</p>
<p>--if you legalize consumption, but you-- but production, unless you-- unless you change that entire--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>Entire chain.</p>
<p>JAMES GLASSMAN:</p>
<p>--supply chain.</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>Now the other policy that I think that-- that both countries are not implemented to the full length and the-- ability that we have is prevention policies, which is the major point in here. I mean, so you not only have to fight the organized crime, which you will have to do anyway. But you also have to develop policies that will prevent younger persons and adults, too, of getting involved and-- and consuming illegal drugs, because they don't-- this is not only a policy about drug, illegal drugs. It's also about human trafficking, which is very-- it's very important and it's the second-most important locality(?) business--</p>
<p>JAMES GLASSMAN:</p>
<p>Yeah, what-- what about--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>--in this thing, and from that, smuggling and other issues that are important.</p>
<p>JAMES GLASSMAN:</p>
<p>There is a tremendous amount of-- of human trafficking-- the exploitation especially of-- of women-- I know it takes place a lot in Texas. Is there anything-- what's the relationship there?</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>Well, I mean, you know, I look at organized crime as multinational corporations-- that have multiple divisions, business lines. Drug trafficking is one. Human trafficking is another. Contraband is another. Arms smuggling is another. And so at the end of the day, you know, if you want to take-- either tackle organized crime and-- and-- and the drug smuggling or organized crime involved in human tracking--trafficking, You still have to go after these organizations.</p>
<p>JAMES GLASSMAN:</p>
<p>You know-- a lot of Americans believe that-- that there is a problem with secure borders. So if the border between the United States and Mexico, which is 1,950 miles, were somehow made secure, would that have an effect on any of these problems?</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>You know, I personally don't think-- I think it's more of a political solution. You know, I think it plays well with the public. Unfortunately, I don't think it's very effective. You have to strengthen the intelligence-gathering capability on both sides of the border, to give the law enforcement the information to be able to carry out transnational operations, sting operations, that not only dismantle some of these illicit activities, but that gets you the intelligence necessary to secure prosecutions.</p>
<p>And the US and the Mexican government have started to, as Andrew mentioned, share intelligence. And there's been operations on both sides of the border. But in my opinion, it's not enough. They're moving in the right direction. And that's where I think the foc-- the focus has to be.</p>
<p>ANDREW SELEE:</p>
<p>There's a real diminishing returns, I think, for spending money at the border. The-- the more boots on the ground at the border, probably the less efficient. I mean, the more boots on the ground, if you want to-- you know, really go after drug traffickers, you have to hit them in Monterrey, Nuevo León, and you have to hit them in Atlanta, Georgia, and not just at the border. And we haven't done that. We've actually keep spending on the border and we don't spend in Atlanta and Monterrey.</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>Let me-- let me also make a point. We also have to be mindful that at the end of the day, just sending forces to the border is also going to increase their exposure to organized crime. And we are kidding ourselves if we think that it's only Mexican forces that are vulnerable to corruption. These organizations handle, you know, millions if not billions through their various business lines. And they're paying off officials on both sides of the border.</p>
<p>JAMES GLASSMAN:</p>
<p>And a million people cross the border every day. And a billion dollars worth of goods. So it's kind-- it's-- it's a lot. It's very hard to-- hard to control that. The US military is getting involved in Mexico, as you mentioned. Is that something that-- that Mexicans are concerned about?</p>
<p>ANDREW SELEE:</p>
<p>I think very much so. Although the-- the US military has been very reserved in how they do this. I mean, there aren't-- there isn't really a US military presence in Mexico at all. And I don't think Mexicans would ever accept that. I mean, there-- there is a sense, given the history between our two countries-- there's-- a strong sense of sovereignty in Mexico. I mean, willingness to work closely with the US, but not to go that far.</p>
<p>But there is-- military training going on. I mean, Mexicans coming up to the United States, meeting with people who have experience. There's some experience being shared from Afghanistan and elsewhere. And-- and actually, I think one of the most exciting things in this relationship, because we're such close countries, I mean, you're seeing judges, attorneys' general, I mean, a whole state attorneys' general-- prosecutors who are going down to Mexico, training their counterparts. Bringing their colleagues up for training to see how the US judicial system functions. And I think that's actually some of the most exciting exchanges going on.</p>
<p>JAMES GLASSMAN:</p>
<p>Is there concern among Mexicans, though, about military mission creep?</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>Yeah, there is-- strong concern in-- I mean, in the public opinion, in society, as well as in the military. Most of the military, I mean, groups inside the groups, I mean, will never accept the-- the physical presence of US Army troops or even-- training operations in Mexico.</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>In so far as the successes in-- in-- in bringing down some of these capos, these cartel figures-- it's not just been the-- the Mexican federal police. The Mexican army and the Mexican navy have had some successes. And they're-- they are in this fight. And the US is-- is-- what is-- what the US is trying to do is trying to help them to mature as well institutionally.</p>
<p>JAMES GLASSMAN:</p>
<p>I want to ask all three of you how you see the future-- beginning with Andrew. You all three said you don't think that Mexico's on the verge of being a failed state. But do you think that the-- the battle against the narco terrorists, let's call them, is improving? Are things getting better? Will things get better over the next year or two? Or does Mexico risk falling into chaos?</p>
<p>ANDREW SELEE:</p>
<p>I don't think Mexico risks falling into chaos at all. I mean, but I think the price of the government getting better in their strategy is that things will get worse on the ground for a while. The more that they can get some of the bad guys and put them behind bars, the more you create fights among the different cartels.</p>
<p>I mean, what we've seen that-- that most of the violence is really drug traffickers going AFTER drug traffickers. And-- and they're more than drug traffickers. As Armand said, I mean, they're involved in all sorts of businesses. But these organized crime groups going after each other. That's the real bulk of the violence.</p>
<p>This is goING TO increase. The more they get some of the top leaders, the more there's goING TO be leadership fights within these groups, the more they're gonna split off. So this is goING TO be bad for a very long time. I think the challenge in the long term, for this to-- for the violence to go down is when you start to see people actually arrested, prosecuted and put away in jail in credible trials. And I think Mexico's still a long way off from that. I think they're working on it hard.</p>
<p>But it's going to take, you know, five or ten or 15 years before we can say the police are completely credible, People feel comfortable going to the police, They know the prosecutor's always doing the right things, And the court system is fair. When that happens, you'll start to see drug traffickers be very careful about their actions, like we do in this country.</p>
<p>JAMES GLASSMAN:</p>
<p>And-- and by the way, we-- we do have-- extradition from Mexico of some of the worst-- drug traffickers.</p>
<p>ANDREW SELEE:</p>
<p>Which has been very effective--</p>
<p>JAMES GLASSMAN:</p>
<p>Correct? And that's been--</p>
<p>ANDREW SELEE:</p>
<p>It's been very effect-- and that's what they're real--</p>
<p>(OVERTALK)</p>
<p>JAMES GLASSMAN:</p>
<p>That's what they're really scared of.</p>
<p>ANDREW SELEE:</p>
<p>And actually, for the top drug traffickers, they really are getting them and-- and sending them to the US. And they fear-- they're starting to fear that.</p>
<p>JAMES GLASSMAN:</p>
<p>Armand, briefly, how do you see the future?</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>I'm positive, because at the end of the day, Mexico is in this-- process of transformation, trying to-- to strengthen the judiciary. I think it's important for us to realize that it's in our best interest here in the United States to make sure that Mexico's successful in that transformation. We talked earlier about the economic interdependence. Our future here in the United States is tied to the future of both Canada and Mexico. I kind of look at it as-- as a neighborhood. And we really need to look at-- helping Mexico to continue through this transformation.</p>
<p>JAMES GLASSMAN:</p>
<p>And I should add that right now, the Mexican economy is actually growing faster than the US economy. Arturo, how do you see the future--</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>Yeah, I'm also positive about the-- I mean, the future. I see several transformations that are important-- on the ground that are goING TO start having some effects. Not in 15 years. I would say that between three and five years, we will start looking at effects.</p>
<p>The longer the federal government is involved itself in this-- I mean, military and police war, there's still going to be violence. But I think, in a year or two, we're goING TO see major crackdowns on the organized crime. I mean, they have dis-- disrupting the-- the routes. They are disrupting the way they have been working in cities. And even though they have to reveal the cities, reveal the con---- the institutions, the basic institutions, police, the-- the municipalities-- the local governments. I mean, they are doing-- a major-- a major job in this thing. And we're goING TO see some changes by the--I think by the end of this administration of-- Calderón.</p>
<p>JAMES GLASSMAN:</p>
<p>Thank you, Arturo.</p>
<p>ARTURO ALVARADO MENDOZA:</p>
<p>Thank you very much.</p>
<p>JAMES GLASSMAN:</p>
<p>Thank you, Andrew.</p>
<p>ANDREW SELEE:</p>
<p>Pleasure to be with you.</p>
<p>JAMES GLASSMAN:</p>
<p>And thank you, Armand.</p>
<p>ARMAND PESCHARD-SVERDRUP:</p>
<p>Thank you.</p>
<p>JAMES GLASSMAN:</p>
<p>And before we go, I want to remind viewers that you can catch <i>Ideas in Action</i> whenever and wherever you choose. To watch complete shows, just go to our website, ideasinactiontv.com, or download a podcast from the iTunes store. And that's it for this week's <i>Ideas in Action</i>. I'm Jim Glassman. Thanks for watching.</p>
<p></p>
<p>* * *END OF TRANSCRIPT* * *</p>]]>
    </content>
</entry>

<entry>
    <title>British Austerity: Should the US Try Cutting Costs UK-Style? - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/04/british-austerity-should-the-us-try-cutting-costs-uk-style.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42351</id>

    <published>2013-04-03T22:11:08Z</published>
    <updated>2013-04-03T16:40:17Z</updated>

    <summary>Robert J. Samuelson, Newsweek columnist and author of &quot;The Great Inflation and Its Aftermath: the Past and Future of American Affluence&quot;</summary>
    <author>
        <name>Chris Bowyer</name>
        
    </author>
    
        <category term="Episode 48" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="austerity" label="Austerity" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="deficit" label="Deficit" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="governmentspending" label="Government spending" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="grossdomesticproduct" label="Gross domestic product" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="publicsector" label="Public sector" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="unitedstates" label="United States" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="valueaddedtax" label="Value added tax" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.ideasinactiontv.com/episodes/">
        <![CDATA[<p>British leaders are adopting a plan to cut public spending in that country by $131 billion dollars. The revolutionary plan will cut public housing subsidies by 80% and could cost the jobs of as many as 750,000 public sector employees. By cutting public spending and raising some taxes, government leaders are hoping to avoid a second recession and whittle down the budget deficit. With the US facing record budget deficits, and the last election seen as a referendum on overspending by the federal government, what can US leaders learn from the British?</p>]]>
        <![CDATA[<p>JIM GLASSMAN: </p>
<p>Welcome to <i>Ideas in Action</i> a television series about ideas and their consequences. I'm Jim Glassman. Imagine a country where they're cutting housing subsidies, laying off government workers, raising consumption taxes, and doubling tuition at state run colleges, all in the name of austerity. No, it's not some future America envisioned by Alan Simpson and Erskine Bowles; it's Britain, today. It's all part of Prime Minister David Cameron's prescription to save the U.K. but is it good medicine for America as well? Joining me to explore this topic are Maya MacGuineas, president of the Committee for a Responsible Federal Budget at the New America Foundation; Chris Edwards, director of tax policy studies at the Cato Institute; and Michael Ettlinger, vice president for economic policy at the Center for American Progress. The topic this week: America's economic future, is London calling? This is <i>Ideas in Action</i>.</p>
<p><br /></p>
<p>ANNOUNCER:</p>
<p>Funding for <i>Ideas in Action</i> is provided by Investor's Business Daily. Every stock market cycle is led by America's never ending stream of innovative new companies and inventions. Investor's Business Daily helps investors find these new leaders as they emerge. More information is available at Investors.com.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Britain's new Prime Minister, David Cameron, has unveiled a budget plan that cuts 131 billion dollars from the national budget. The plan makes deep cuts in entitlement spending and could put up to 750 thousand government employees out of work. Some of the key provisions in the plan are; a two year pay freeze for most public sector workers, increase the retirement age from 65 to 66, raise the capital gains tax on high earners from 18 to 28 percent, raise the value-added tax from 17.5 percent to 20 percent, and cut the corporate tax rate to 24 percent over 3 years, and cut the tax rate on small businesses to 20 percent. Maya you have written about this plan, is David Cameron's big idea really so revolutionary?</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>Well I think given where we've come in the past years where the U.S. wasn't the only country that was borrowing excessively but certainly Britain was and other countries around the world, this pivot from the period of borrowing into dealing with deficits and debt it is-- it's groundbreaking, it's bold, it's big. One of the interesting things is that Britain did it before it had to and let's hope that's the model that we follow as well, right, so it's not that the markets were beating up on their economy saying changes have to be made, they knew it was coming so they put out an incredibly bold plan to hopefully prevent markets from turning against them.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>You know Michael, we hear Paul Krugman and others say that austerity is exactly the wrong policy-- that we tried that during the depression and we still got, if not a recession, we've got the-- certainly a sluggish economy, is this the time to be cutting?</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>This is not the time to be cutting. You know I-- I agree with Maya that we need to be ahead of the curve and ahead of markets when we move to a more austere budget, when we start getting our deficits under control, and actually we ought to be doing things now that will put in place the mechanisms that will allow us to do that in the future. But we shouldn't actually be putting in place austerity measures, cutting spending, raising taxes dramatically right now because it will put the brakes on what is a fragile economy and a fragile recovery and I think in the U.K. they're making a mistake. I think they're right to be thinking about these issues and acknowledging that the-- the deficits are unsustainable for the long term, but doing this much this fast is a real danger.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>And yet-- so far haven't economic indicators turned up and hasn't-- you know the markets haven't gotten all upset at some kind of coming disaster in Britain.</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>Well I think one thing you're seeing is there's a value-added tax coming, an increase coming in January 1<sup><font size="2">st</font></sup> so there's probably a lot-- there's a lot of behavior right now that's being motivated by the coming things so that people are taking actions now in anticipation of--</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Oh so they're spending now to avoid the tax later--</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>Exactly. That's one thing. And also it's just been too little time to actually measure this either way. If things were going bad I wouldn't be saying that was proof of my point either.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Chris, has Britain gone far enough?</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>We'll have to see. It does good things in that it cuts across the board. It cuts entitlements and defense and domestic programs and that's all great. I'd like to see even deeper cuts and we have a real-- real world example of this. In the mid 1990s Canada was in a desperate fiscal situation, it's debt was-- rose to 80 percent of GDP and they dramatically turned course. They chopped their federal budget 10 percent straight off the top in 2 years-- then they kept it flat for about 3 or 4 years and the size of the government in Canada plunged from over half of the economy down to about 40 percent of the economy. And you know what? The Canadian economy boomed for the last 15 years. So I'm for austerity in the government sector of the economy and I think that creates prosperity in the private sector of the economy and that's what we want. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Let's focus on the specifics of the British plan and then get back to the American plan. There are roughly 61 million Britains and they're talking about cutting 750 thousand public sector jobs so if you multiplied that out, the British have a larger public sector than we do, but that's like cutting 3 million jobs in the United States. Where are all these people going to go? </p>
<p><br /></p>
<p>MICHAEL ETTLNGER:</p>
<p>Seems like a bad idea to me when you have a really high unemployment. You know, they're going to be unemployed. It's pretty much that simple. And sure assuming that some recovery continues, which may well happen, I mean it would really have to take very very strong private sector job growth to absorb all those people plus just get back all the people who were unemployed in the private sector. And it's-- again as I said it really is something that can put the brakes on the economy. Those are people who are now unemployed, they're not you know spending in stores, they're very cautious about making-- you know they can't save, I mean it really puts the brakes on the economy at a very bad time to do that. </p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>But let's look back at Britain. Britain itself has had a great example of fiscal consolidation as Maya would call it back in the early 1980s; when Margaret Thatcher came to office she made all kinds of dramatic reforms, she changed the union laws, she floated the exchange rate, she cut tax rates, she privatized huge swaths of our British industry and yeah there was short term dislocation but after only a few years the economy roared back to life and it has grown very strongly. So you know Britain has done much better than say France-- France over the last few decades and I think it was because of those sort of pro market reforms that Thatcher put in place. </p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>In both-- In both your examples the recovers you're talking about were international recoveries. I mean Canada you know, Canada's big growth came out of exports to the-- largely to the United States, which had just seen what people were calling the largest tax increase in history under President Clinton so it was U.S. economic growth which was a huge factor in Canada's economic growth. And yes there was a worldwide recovery from a recession that seemed big at the time, in the early 80s after Thatcher's reforms and changes, but attributing cause and effect I think is a stretch when the entire global economy was recovering. </p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>But it is-- it is important to make the point that I think what the British government is assuming is the private sector will be able to compensate for the reductions that are going on in jobs. You need to think about those in tandem and that's a lesson for all countries that are thinking about how to pull back on government workers, which I think inevitably will happen here as well, you also need to make the business sector more competitive and I think one thing the British government's doing cutting the corporate income tax rate is something we're likely to see here. We've seen that in a lot of countries around the world that helps the competitiveness and I think this is going to be a big theme going forward, which is; how do you help the private sector be the engine of growth and the engine of the economic recovery? They need to think more about that in Britain and we need to think about that here as well.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>I wanted to ask Michael-- Chris about that. Is--the United States' corporate taxes are roughly 35 percent, the British have now cut them to 27 and they're going down to 24. Do you think that's a good idea?</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>I think that we need comprehensive corporate income tax reform. I don't think anyone really defends the current system we have here and that could involve lowering the rate but there's also lots of loopholes, lots of problems with our corporate income tax system. I think it's sort of apples to oranges to say should we do what the U.K. is doing because I think that the U.K. has a very differently structured corporate income tax system. I mean, I actually think, that broadening that out, I think a lot of these comparisons are apples to oranges when we get to the United States versus these other countries because you know Canada cuts back it still has a much bigger public sector than we do, the U.K. after all of these cuts will still have a much greater spending and much greater taxes as a share of GDP than the United States does. So I think it's a little-- you know should the U.S. look to these places as examples? It's really-- it's sort of they-- even with all these cuts they still end up with a larger private sector than ours so I think it's a real different situation in these other countries--</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>But it's not just the case of where Europe has a bigger government we have a smaller government. Europe has actually done a lot of things right. I mean for example they've done a lot of privatization; Germany and Netherlands have privatized their post offices, that's the type of sort of microeconomic reform we should be thinking about. At the same time we cut government spending so-- to give entrepreneurs a chance to go into these new industries. It's sort of like when we broke up AT&amp;T in this country in the early 1980s it led to the creation of all these great entrepreneurial companies like MCI so let's cut government spending but let's also do microeconomic reforms like cutting the corporate tax, privatization, and that way to give entre-- American entrepreneurs a chance to succeed. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>One of the lessons, Maya, of the British experience, which I do think has something to-- that Americans can learn from, is the fact that the public is supporting it. You know, large majorities of the public say they're in favor of this austerity program. You know-- they haven't necessarily felt the full effects of it yet but at least in theory they're in favor of it. Is that a lesson for us?</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>Who would have thought? I mean, it turns out that voters are actually well ahead of the political system in many cases, and I think that's true as well as it is there, but when your country is borrowing too much year after year-- you know the household examples don't work perfectly, governments are different than households and kitchen tables, but people still understand that changes have to be made. I think one of the elements that really helps with public support is the sense that a plan is fair and there has to be public buy in, they have to understand why it's important and they have to feel like, you know, I'm not sacrificing alone and you're getting off scot-free and I think this plan that Bowles and Simpson put out, the chairmen of the White House Fiscal Commission, is really important here. And I think it does have what we were just talking about; a fair and balanced plan that everybody's going to have to sacrifice in something, there are really no parts of the budget that are off limits, it's more spending than it is revenues but both are on the table, frankly there's something for everybody to hate. Those two co-chairmen basically grabbed on to every third rail and said this is what we have to do to deal with the budget and I think it will feel fair as the starting point of the discussion--</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>I think for example, I mean the Obama Fiscal Commission; they have defense cuts as well as domestic cuts, that's great. The Republicans are resisting any kind of defense cuts so far, we'll see how some of these new Tea Party members feel about it but even aside from the war in Iraq and Afghanistan, the Department of Defense budget has doubled over the last decade. I mean obviously there's some fat and waste there we need to cut. Farm subsidies are another area that the Obama Fiscal Commission has looked at, I mean farm subsidies aren't something that sort of helps low-income people, they go to mainly wealthy farm-- big farm corporations. That's-- those are the types of cuts and business subsidies that we need to sort of cut those too so that people understand everyone is, you know, getting some of their-- some of their benefits cut. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Michael, going back to the British plan for a second, is there anything about it that you like? </p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>Is there anything about it I like? I-- well-- no in the sense that--</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>You had to think about it for a long time--</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>Well--</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Probably the answer's no--</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>Well I mean, I'd like it if their plan was to implement it four-- there's things I like about it if their plan was to implement it four or five years from now. </p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>But do you really think markets will wait that long?</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>Yes. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>But are there cuts in the U.K., let's talk about the U.K., or the United States that you would accept now? Whether you put them into effect now or not.</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>So, let me just say that I don't--</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>I mean do you like the idea of cutting for example government employment across the board? The 750 thousand-- cutting 750 thousand government employees or you know basically you can do it through attrition you don't have to give people pink slips overnight. </p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>So I'm against almost everything-- anything that's across the board because I think that you actually should look into government and figure out where you need more people and where you need less people and not do things across the board. You know I think-- I don't pretend to be expert on how all the pounds are spent in the British budget to know whether the particular decisions that they're making are right but I imagine their budget, like any government budget has places that can be pruned without causing any great harm. </p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>And it's interesting they didn't do across the board cuts. If you look at the different areas they were very thoughtful about cutting a lot on defense, interestingly what they protected; international affairs. That's something you wouldn't see here but they actually grow that piece of the budget. But I think when you talk about across the board what it basically means is we need to freeze parts of spending to make people make those decisions of what's working better and what's working worse. You don't want to do it mindlessly you obviously want to think where the best resources should be spent.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>They've also-- they're also not cutting health costs is that correct?</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>Yeah they ring fenced their health care that's right. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>The Brit-- one of the things that the British are doing is raising their VAT, the value-added tax, which is like a sales tax from 17.5 percent to 20 percent. There's a lot of talk about a VAT in the United States. Do you think a VAT is a good idea? A lot of congress believe in consumption tax. </p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>I believe in the consumption taxes, if you're going to rip out the income tax and replace it with a consumption-based system. That's fine. And the Steve Forbes Dick-Armey flat tax is a consumption based tax, which I favor. But you a lot of the people in this country talk about a VAT as solving our budget and deficit problems but look at the countries like Greece that have these giant deficit problems and Great Britain, they've got VATs in place that average about 20 percent so I don't think VATs are the solution to deficits because I think you give a governments VAT which is a very easy way to raise money they simply spend more.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>And the British have an income tax as well as a VAT.</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>That's right. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>In the European system--</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>They've got all the taxes we've got.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Now you're for a kind of temporary VAT right?</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>Yeah it's a bit of a kooky idea but I mean I think the first step is you have to--</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Well if you think so--</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>Yeah really. </p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>Glad I didn't have to say that.</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>No it's a good idea that might come across as a bit kooky. Listen, the first step has to be fundamental reform of the tax code. And you pointed out a minute ago if you were to announce a consumption tax today that phased in in the future, or actually I guess you pointed out, it would actually boost spending now. So it can be very stimulative. I've suggested a temporary consumption tax to help bring down the deficit and debt with a definite end to it because I do worry that it would take off the pressure of the spending cuts that we need to have in the economy. The concern of course is that temporary taxes become permanent. That's one of the things we've seen in Britain, they took their bankers tax, which was temporary and they made it permanent. So I think all tax increases like that need to be paired with really strict budget rules and a plan to end anything that's temporary. If you want to have kind of a surtax to deal with the deficit that could be good for the economy in the short term and the medium term but we can't move into overtaxing at the expense of reforming entitlements which is really the heart of this and it's something that, if we don't do that we'll never get out of the fiscal hole. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>You know one of the things I find amazing about what the U.K. has done is-- just the fact that they're able to do it. Is that a function of a parliamentary system? In other words, are we just-- is it just impossible for our system, which has all these checks and balances to do these kinds of dramatic things? You know cutting their budget by 25 percent in many departments. </p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>It is true that both Canada in the 1990s and Britain today are able to do these big reforms easier because the British parliamentary system essentially gives prime ministers a short-term sort of dictatorship in a way, if they have a majority in the parliament. We don't have that here luckily our system as you know has much more decentralized power however we have been able to do some substantial reforms before. I mean Ronald Reagan's first budget in 1981 dramatically cut aid to the states for example, which was a very good move. In 1996 we reformed welfare and you know that was a very big reform but the groundwork had been laid. People had been talking about welfare reform for many years and you had a president and a Republican congress who were for it and another great example is in the early 1990s we dramatically cut defense spending in this country. Despite the so-called military industrial complex, all those military lobbyists, we were able to decut-- cut defense substantially, simply because both-- members in both parties wanted to do it. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>How bad is the debt problem in the United States? Are we-- are we kind of exaggerating it? I mean we have certainly-- certainly we have the bonds that everybody wants to buy which is to say the debt that people want to invest in. Are we kind of exaggerating this problem?</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>I think we're exaggerating it for 2010, 2011, maybe 2012, I don't think we're exaggerating the risks of having a long term sustained deficits of you know 4 or 5 or 6 percent of GDP. I don't think that risk of that is exaggerated. I do think there's exaggeration of the damage of the short-term deficits. </p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>But it's interesting it's the fact that we suddenly had trillion dollar deficits, which weren't the problems themselves because those were the response to a very severe economic downtown--</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>Result of.</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>And the right thing-- the result of and the response to-- and necessary but that's what kind of woke up the country and policy makers and created this Fiscal Commission which is going to allow us to take the actions on the medium term, meaning the next sort of 3 to 10 years and the long term beyond, because the country is so aware of this as a problem. So they sort of woke up for the wrong reason, the fact that we had this huge deficits wasn't the problem, we don't need to fix it this year but we really need to get on top of fixing it very quickly and I don't think people should worry that we're going to reduce the deficit too much. Just given our political system that's really not going to be our problem, it's that we'll delay for too long. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>And you think that we will cut it too much. I mean do you think the political forces are moving in the United States to the extent that something's actually going to get done?</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>I think eventually we'll do something. I mean I'm not-- I am worried that there could be an overreaction in the short-term. I am worried about that. I think we are moving to getting something done in the long-term and it's just going to be a long, brutal, ugly process because there's really fundamental disagreements about how to do that.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Entitlements. I mean, you know, let me ask you Chris. You know when you talk about the dramatic things that the British are doing, you know in cutting employment for example, I mean none of that really-- I mean that stuff just pales compared to the obligations that we have-- the United States has with social security and Medicare. I mean can really anything be done to cut the deficit and the debt without attacking entitlements?</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>Well we need to cut-- I think we need to cut everything. And both for sort of fairness reasons and both because I think the problem is everywhere. There's waste and overspending everywhere. I think there is broad agreement that, for example, with social security we should start raising the retirement age. The Obama Fiscal Commission recommended that. I think that's a great cut. I think people understand that if you explain that people are living longer--</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>We've already done that-- </p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>It makes sense for-- Oh right.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>The 82 Commission already did that.</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>Right so let's raise it--</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>How high would you like it to be? 70?</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>I would raise it--</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>80?</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>--Along with other--</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>90?</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>I would raise it along with other reductions in benefits until the system is sort of solvent. I mean so for example we could reduce the growth rate in benefits, we could move to a system with private accounts to social security like countries like Australia have done. So you know there's a lot of good examples of government reforms around the world that we ought to be looking at. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>What about entitlements?</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>Well to answer your question we certainly cannot fix the problem without fixing entitlements. Even if you were to get the budget balanced or something short of that sort of a small manageable deficit without doing entitlements it would start to grow again the next year because the problems we have in this country are from health care cost and aging and that means they manifest themselves in social security, Medicare, and Medicaid, and we have to make changes to those programs and we have to make them as soon as possible so they can be-- put in gradually so people have time to prepare. So like Chris said, I mean I think asking people to live longer, who are living longer, let's hope we all live longer but we should also have to work--</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>Sure.</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>--Work longer to compensate for that. I think slowing the growth of benefits for people in the well off end of the spectrum and bringing them up for people who depend on the programs.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>I want to ask each of you how optimistic you are or pessimistic about the United States addressing the debt problem. Whether we do it the way the British have done it or not. Do we have the political will to do it?</p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>I think we do. You know, my views, every time I have a discussion like this and I talk to people about how we're going to address the long-term deficit picture and I say well we need to raise taxes. Well you can't do that. You know or we need to address entitlements. No there's no way politically we can do that. And you go through the list and everyone tells you how all of these objects are immovable but it's also impossible that we're going to run deficits as high as currently are projected so I think there's going to be a gradual realization that some of these immovable objects have to be moved and I think, you know, it will take a while for us to all come together around the deal to do that but I just the forces of markets and just the reality of the situation is going to drive us to that, kicking and screaming perhaps, but I think we will be driven to a solution to this.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>So overall this deficit reduction commission when it came out, started sort of leaking some of its ideas there was a huge amount of push back from all sorts of politicians but I think economists tend to think that the ideas are pretty good. </p>
<p><br /></p>
<p>MICHAEL ETTLINGER:</p>
<p>There's a mix of ideas some of which I embrace some of which I don't embrace. Every one of us would have a different mix of things that we like and don't like in there.</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>But it is true that politics is often a problem. I mean I can sit down with Maya and Michael and probably and you and design a good plan to fix the budget that we could all agree on with our different political perspectives. I think that when politics gets involved it's really problematic. We should be able to sit down and get a good deal.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>So just to get back to my wrap up question. Are you optimistic that that will happen or do you think the politics are going to prevent it?</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>In the long run I think we will substantially cut spending in this country. We have to. We're running trillion dollar deficits. You know the government now is about 25 percent of GDP, you look at the long range projections and they show the federal government growing up to you know 40-- 40 percent of GDP in 20 or so years-- I think that's just-- it's not going to happen. I don't think Americans would support the taxes or the debt really to allow that to happen so spending will be cut. In the next couple of years it might be a stand off between President Obama and Republicans in congress but I think within 5 years we're going to start some serious spending cuts. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>So the U.K. is the harbinger.</p>
<p><br /></p>
<p>CHRIS EDWARDS:</p>
<p>Oh it absolutely is. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>And Maya?</p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>If you'd asked me a couple months ago I was really really pessimistic. I had just basically given up on the ability of our political system to tackle hard problems. I think that this initial plan released by Erskine Bowles and Al Simpson is a game changer and it's a remarkable shift because we're getting serious, they've put out a plan that shows the kinds of policies that are going to be necessary, the same thing that Britain did but people-- you know a realistic plan but people are paying attention here and as a result I think no longer can you be for nothing or just tax cuts or just spending increases or wishful thinking that we could grow our way out of it. And now people are starting to debate the policies so my hope is that we now switch from dig our heels in the ground mode into really negotiation and sooner or later cooperation mode and I think that those on the right who are opposed to any kind of tax increase at all need to recognize that if we wait this out they're going to get much larger tax increases, probably a new revenue stream like a VAT if we wait too long. And those on the left who don't want to make any changes to entitlements even for sort of upper and middle class people we're going to end up losing the safety net if we don't protect it by reforming these entitlements so I think the critical question is can we shift from getting people to understand that this is a problem into really cooperating on a solution. And I think it goes from this commission to presidential leadership, Obama is going to have to get involved in this, and I think we're going to have to look for members in congress who want to cooperate and compromise in a bipartisan way. </p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>Thank you Maya, thank you Chris, and thank you Michael. </p>
<p><br /></p>
<p>MAYA MACGUINEAS:</p>
<p>Thank you.</p>
<p><br /></p>
<p>JIM GLASSMAN:</p>
<p>And before we go I want to remind viewers that you can catch <i>Ideas in Action</i> whenever and wherever you choose. To watch complete shows just go to our website ideasinactiontv.com or download a podcast from the iTunes store. That's it for this week's <i>Ideas in Action</i>. I'm Jim Glassman; thanks for watching. </p>
<p><br /></p>
<p>ANNOUNCER:</p>
<p>For more information visit us at ideasinactiontv.com. Funding for <i>Ideas in Action</i> is provided by Investor's Business Daily. Every stock market cycle is led by America's never ending stream of innovative new companies and inventions. Investor's Business Daily helps investors find these new leaders as they emerge. More information is available at investors.com.</p>
<p><br /></p>
<p>This program is a production of Grace Creek Media and the George W. Bush Institute, which are solely responsible for its content.</p>
<p><br /></p>
<p>**End of audio**</p>
<p>***End of transcript***</p>
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    <title>Cancer: An Interview with the author of The Emperor of All Maladies: A Biography of Cancer - Episodes</title>
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    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42346</id>

    <published>2013-03-22T17:47:19Z</published>
    <updated>2013-03-22T20:28:26Z</updated>

    <summary>Dr. Siddhartha Mukherjee, an oncologist and medical researcher at Columbia University, has written a comprehensive book examining the history of cancer. Through the stories of several cancer patients and researchers who have made great strides in understanding and fighting the...</summary>
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        <name>Chris Bowyer</name>
        
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        <![CDATA[<p>Dr. Siddhartha Mukherjee, an oncologist and medical researcher at Columbia University, has written a comprehensive book examining the history of cancer. Through the stories of several cancer patients and researchers who have made great strides in understanding and fighting the disease, Mukherjee sounds an optimistic note about future medical advances in understanding and fighting cancer.</p>]]>
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<![endif]--><p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Welcome to <i style="">Ideas in
Action</i> a television series about ideas and their consequences. I'm Jim
Glassman. This week: the history and future of cancer. Everyday it kills more
than 20 thousand people around the globe. Whether in Mogadishu or Washington,
cancer is one of humanity's most relentless diseases. We've made a lot of
progress at fighting it, but the war on cancer is far from over. How far have
we come? And what more do we need to do? Joining me to discuss this topic is
Dr. Siddhartha Mukherjee, he is an oncologist at Columbia University Medical
Center, a cancer researcher, and the author of <i style="">The Emperor of all Maladies: A Biography of Cancer. </i>The topic this week:
conquering the emperor of all maladies. This is <i style="">Ideas in Action</i>. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">ANNOUNCER: </p>

<p class="MsoNormal">Funding for <i style="">Ideas in
Action</i> is provided by Investor's Business Daily. Every stock market cycle
is led by America's never ending stream of innovative new companies and inventions.
Investor's Business Daily helps investors find these new leaders as they
emerge. More information is available at Investors.com</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">600,000 people in the U.S die from cancer each year. Five
percent of those cases are hereditary and nearly half could be prevented. But
after billions of dollars and decades of research there still is no cure.
President Obama, like Richard Nixon before him, has promised to find a cure for
cancer in our time and although oncologist and cancer researcher Siddhartha
Mukherjee warns we may never find one cure for all cancers, his book is a
surprisingly optimistic account of the diseases persistent bond with man. Dr.
Sid Mukherjee welcome to <i style="">Ideas in Action</i>.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE:</p>

<p class="MsoNormal">Thank you for having me. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">So why did you decide to write about cancer as a biography?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">So <i style="">The Emperor of All
Maladies</i> is a history of cancer but part of the reason I reframed it as a
biography is because the word history seemed to be a little too inert to
describe what I was describing and as you know the stories of my patients,
particularly this woman called Carla who I was treating in Boston is stitched
into the book and therefore it made much more sense to talk about it as if it
was-- as if I was not writing about something but about someone. And hence the
word biography. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Tell us about her. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">So she was a young woman in her 30s who was diagnosed with
acute lymphoblastic leukemia cancer which is very aggressive and usually
presents in children and one of the things that was important while writing the
book is while I was writing the book I didn't know whether she would live or
die at the end of the book. So it was like driving without a destination and I
think that made the book particularly poignant for me because I didn't know the
answer.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">And that disease is just particularly terrible. The symptoms
are horrifying. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">The symptoms are often-- they present very aggressively. In
children, interestingly-- and this is the story that's contained in the book--
the cure of lymphoblastic leukemia in children really was one of the emblematic
diseases-- this was one of the emblematic diseases to be cured and thereby
launched the famous war on cancer-- that-- the thinking behind it. Now in
adults it's much rarer-- this is a disease of children-- but in adults, for
reasons we don't understand the survival sinks down to about 30 to 40 percent. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Let's tell our viewers what cancer is. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well cancer is a very heterogeneous group of diseases all
lumped together because they happen to share some deep biological themes. I
would say the central biological theme there is that cancer is a disease of
cells that are proliferating without control. Normal cells, if you can imagine
the cell as a molecular machine, has accelerators and brakes that either
accelerate their division or put breaks on their division when that's stopped.
And that's why we grow out into multi-cellular organisms but then don't-- keep
growing and growing and growing forever. In a cancer cell those accelerators
have been jammed and the brakes have been broken such that this is a machine
that doesn't know how to stop and thereby the cell is replicating over and over
again and doesn't know when to stop.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">So what does it actually do? Does it sort of drive out the
good cells?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">So it does many things. People often ask the question, 'well
how do patients with cancer die?' And the answer is they die through a variety
of mechanisms that are a result of this malignant proliferation of cells. But
it does many things it drives out in certain circumstances cells-- the normal
function of cells. The other way cancers can kill people is by-- their solid
effect. In other words, they go and they metastasize to places like the brain
or the liver and they take over that place and keep growing in that area and
thereby affect the normal functions of these organs. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Now you talk in your book about an Egyptian, Imhotep, saying
that breast cancer is incurable; I mean what's changed in the 4000 years?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well for breast cancer in particular the change has been
enormous, especially for some types of breast cancer, some subtypes of breast
cancer. The subtypes that's estrogen receptors positive, which is a significant
fraction of breast cancer-- a woman with this form of breast cancer now in
today undergoes surgery she will under-- she will then have chemotherapy,
followed by an anti estrogen such as Tamoxifen and we think that this is
substantially impacted her life span probably by-- on the order of 17 to 20
years. That is a substantial advance. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN: </p>

<p class="MsoNormal">And how recent is that advance?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well so you know the book talks about the history of each of
these advances Tamoxifen comes to us from you know the 1960s and 1970s, the
chemotherapeutic trials in breast cancer again come to us from about the 1970s
and 1980s but that's not the end of it, Herceptin which is also part of the armamentarium
of drugs comes to us from the 1980s and there are medicines in development
today that are changing already the way we treat women with breast cancer. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">And you talk in the book about surgery that was done on
breast cancer in the past, these radical mastectomies which also include you
know taking out ribs and-- how did that happen and really was that a big
mistake? </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well one thing we learn in this story is of course hindsight
is 20-20 and what becomes-- what are mistakes were then considered the best
piece of wisdom at that time so one has to be humble--</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Well intentioned.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Yes exactly.<span style="">&nbsp; </span>That
said the radical mastectomy grew out of the dictum which is actually-- run its
way so many times through cancer medicine and cancer history which is that if
something is good then more of it has to be better. And so the idea-- the
kernel of the idea was that if you had a local tumor and if you cut it out and
you still had relapses, which was what was being observed in the 1890s and
1900s, that if you-- you must need to cut out more. And that reminds us what a
humbling history this is, it took 90 years before this incredibly aggressive
form of surgery was finally shown not to extend lives or survival. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">And as you say hindsight is 20-20 but it looks almost as
though that-- those kinds of procedures were almost barbaric. I mean do you
think that chemotherapy will viewed that way at some point?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">I think some aspects of chemotherapy will be viewed that
way-- chemotherapy is a word that of course includes many things, it includes
even the most modern therapies which actually don't make your hair fall out or
make your skin-- are chemotherapies. Chemotherapy really refers to the idea of
a chemical therapy. But the way-- the chemotherapy that we're most used to
thinking about are these poisonous drugs that nearly kill the body but in fact
are directed to killing cancer cells. I do think that there will be a role for
these drugs in the future but I'm hoping that we will invent far more specific
therapies that will kill cancer cells and spare the rest of the body and the
book gives two very striking examples of the recent developments of such
therapies, Gleevec and Herceptin are two such--</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Tell us about that. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">So I'll choose one of them. Gleevec is an excellent example.
Gleevec is a drug that was developed through a series of serendipitous
experiments, but really championed by Brian Druker, and Gleevec attacks a
particular kind of leukemia called chronic myelogenous leukemia or CML, the
word chronic there is sort of euphemism it's chronic only by the standards of
leukemia.<span style="">&nbsp; </span></p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Chronic means lasts a while.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Lasts a while exactly. But chronic myelogenous leukemia was
a legal disease. It could be treated with transplantation but it was generally
a lethal disease until some researchers were looking for a drug that might
affect the biology of the heart and Brian Druker made the leap that this drug
that was sitting in Basel, Switzerland could actually attack these leukemic
cells and inactivate a crucial protein in these leukemic cells and it's an
exquisitely targeted therapy. There's a chemist who describes, and I talk about
him in the book, who says Gleevec, this drug, is like an arrow directed at the
heart of this leukemic cell-- it's a very beautiful image because it doesn't
touch most of the other cells in the body but kills these leukemic cells
specifically. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">And that's the real problem with chemotherapy is that it may
kill the cancer cells but it's so toxic and so undirected that it's killing a
lot of other parts of the body as well?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">That's exactly right. So we use this term specificity to try
to understand how specific is a therapy against one cell or one disease versus
the rest of the body. And for the traditional forms of chemotherapy, these
toxic chemotherapies that window of specificity is rather narrow such that you
know small change in those can become very toxic to the body. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">You know there has been so much in the way of resources
spent on cancer, why has it been so difficult to conquer?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well part of the reason of course, we said this a little bit
before, cancer is not one disease but a whole group of diseases but there are
deep biological themes that run through these diseases and part of the answer
is that for the longest time we didn't know what made the cancer cell tick in a
very fundamental sense. The war on cancer was launched in 1971 with the idea
that you know, you didn't need to know everything about the cancer cell in
order to solve the ca-- the problem of cancer. And as you know that has been a
humbling experience. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Now you refer to-- you referred earlier to breast cancer and
to this form of leukemia as being cancers where there's been some success. What
other cancers-- where has there been the most success? </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well acute lymphoblastic leukemia, the cancer that really
threads through this-- through my book is now, for children, 80 or 90 percent
curable, depending on the circumstances. Testicular cancer, again, nearly 80 or
90 percent curable, depending on the circumstances, several kinds of lymphoma,
Hodgkin's lymphoma, so the list is quite large. Perhaps even more strikingly
there are cancers much like breast cancer that have been made chronic diseases
and that's a real frontier, to convert a disease that was inexorably lethal
into a chronic disease is a major victory in the war on cancer. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">So chronic means that-- there's kind of a low-grade effect
or maybe no effect at all? You still have it.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">That's correct. So many people are living with cancer as
opposed to dying of cancer.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">I also noticed in looking at some statistics that the
five-year survival rate for prostate cancer is basically 100 percent. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well that's partly because prostate cancer's a very unique
form of cancer in which there are very many-- very different variants. Some of
them are very aggressive and some of them are very slow moving or we call them
indolent. And so you know five-year survival can become a little bit of a
mistake statistically because you might be only looking or primarily looking at
the indolent versions of that cancer. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Now you say that genetic-- the genetic predisposition to
cancer is really-- is not all that important in most kinds of cancers. Is that
right?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well what I do say is that we know very little about the
genetic predisposition. We do know-- what we do know very well is there are
multiple carcinogens in the environment, tobacco smoke being probably the most
preeminent example of that-- that affects our capacity of the development of
cancer. I think the genetic predispositions are--<span style="">&nbsp; </span>we're just starting to scratch the surface. I
believe in the next decade we'll discover much much more about that. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">But basically you think that prevention is the cure. Or a
big part of the cure.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">I think that prevention is a big part of the cure
absolutely. I think that prevention is a big part of the message but I think
that one of the things that's happening-- and this is one of the things we
discuss is very uniquely happening in cancer biology is that the lines between
prevention and therapy are blurring. So as cancer medicine is moving,
understanding what it is that makes the cancer cell tick, as it were, we're
beginning to discover that in fact that understanding is equally impacting the
way we think about prevention as with-- as it's impacting treatment. So in the
future we'll break open this black box of prevention and break open the silos
that separate prevention and treatment they'll become actually very much a part
of each other. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">So what can people do? Besides stopping smoking, we all know
about that. But what can people do to make themselves less likely to get
cancer?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well the list is not-- the list unfortunately-- and this
gets back to the idea of the infancy of prevention research, the number of
carcinogens that we've identified is large, but the exposure risk-- that you
know the things that are common in the environment that we've identified are
not so large anymore because we've effectively removed many of them; asbestos
is one of them, radon is another one of them, and you know cigarette smoke we
talked about. So what we can do right now is be really vigilant when new
chemicals enter our environment, be really vigilant and really test them using
the best possible tests to find out if these are truly carcinogens or not. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN: </p>

<p class="MsoNormal">So can we expect to see cancer death rates decline because
of-- not just because people have stopped smoking but also because we removed
asbestos and some of these other things?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well cancer death rates have already started to decline and
they have been doing so for 10 years, actually probably a little bit longer
than ten years, and that's a significant victory in the war on cancer. Now
people have gone back to analyze what's driven that decline in death rate and
the answer is very satisfying; the answer is everything has helped. Prevention
has helped, stopping smoking has helped, but also treatment has helped,
treatment for breast cancer in particular has helped that decline. Even
chemotherapy has helped-- has helped drive that decline. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">You know I was struck by the decline in the death rates from
colon cancer. Why is that?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Yes well a large part of that has to do with screening so colonoscopy--
screening colonoscopy has driven a large part of that. So again, it's part of
that puzzle. There is no universal solution that will attack every form of
cancer, this is a patchwork quilt that has to be put together piece by piece.
And the puzzle is so deep and so elemental that we have to do it-- we have to
put together prevention with screening with treatment and only by mixing and
matching appropriately we'll be able to get the full picture. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">What about gene therapy and stem cell treatment? Is there
much hope here? </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well I think these fields are very much in their infancy and
whether these turn out to be new beacons of hope or whether they repeat the
cycles of hubris that have furrowed through this history remains to be seen. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Now you're an oncologist. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">I am.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Do you feel that doctors are well trained to handle the kind
of human aspects of cancer? You know somebody learning that he or she is suffering
from cancer is-- are doctors humane enough I guess is the question.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">That's a tough question. I certainly think they are becoming
trained-- it has become part of our consciousness in medicine to train them--
to train doctors in the more humanistic and humane aspects of medicine. You
know this was not easy going. The book tells a story of Cecily Saunders, a
nurse who retrained as a doctor in England, who had to essentially-- who
invented-- or launched the palliative care movement. And what was amazing about
Cecily Saunders was that she had to go out and tell people you well know
palliative care is not the anti matter of treatment.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Palliative care means basically well we're kind of giving up
on you, we're not going to make historic-- or heroic efforts to save your life.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Yes but it absolutely does not mean giving up on someone it
means-- it means maximizing their capacity to live their lives with dignity and
as Cecily Saunders points out it is exactly the opposite of giving up on
someone. It is in fact taking that-- taking the patient to their fullest extent
and treating them like a human being.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">But just as a specific-- somebody has let's say brain cancer
and there is some kind of treatment although it doesn't work very often, do you
as a doctor say to that person, 'well you have a 5 percent chance of living, or
10 percent chance but if we treat you it's going to be pretty horrible for you
for the next year or two.' Is that their decision? Is it your decision? How--
what do you see as your role?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">It's absolutely their decision but one of the things that
happens very quickly these days I think and very advisedly is that we bring
that conversation up very-- up front. This is not a conversation to be having
when a patient it-- when a man or woman is-- having troubles. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Don't some doctors want to be kind of heroes? I mean you
sort of hear about surgeons for example pushing cancer patients to have surgery
because they-- because you know out of I guess humane instincts the I mean
surgeon wants to save this person's life but it could be the chances are kind
of small or it could be some terrible consequences from the surgery. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">One of the most moving stories in my own practice-- and I
write a little bit about this book is I was rounding-- as a medical student I
was rounding with one of the senior most surgeons at Mass General Hospital, a
man named Arlan Fuller, and he would start rounds-- he would start rounds
around 5:30 in the morning and he would go to every bed and the first question
he would ask was, 'how was your night and can I help you with my-- with your
pillow?' I have never met a surgeon who falls into this mythology of the hero,
the bully, the cowboy. I find them-- I find surgeons incredibly thoughtful
about their discipline, particularly cancer surgeons. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Let's talk about policy. Is there-- what should the
government be doing, if anything, to fight cancer?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well I think one of the things that we should be doing is we
should be reviving the importance-- important legacy of the National Cancer
Institute, we should be pouring more resources into clinical trials and we should
be asking patients to become our allies in finding out more about cancer. One
of the things that's in crisis in this country is the clinical trial system
because not enough people are enrolling. There's a glut of new cancer drugs
that are coming out on one hand, and bizarrely an absence of patients who are
willing to-- who are willing to you know sort of engage in these trials. This
needs to be rectified as soon as possible. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">And so why is that? </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well part of the reason is that there are so many-- there
are so many difficulties in getting a good trial launched, there are
bureaucratic difficulties, there are so many difficulties in getting good
trials launched that at the end of it it becomes an exhausting process. We need
to find a system by which this becomes streamlined so that patients get access
to new medicines and that researchers can test these new medicines in a
completely safe environment such that everyone has the same goal and which is
to convert cancer into a chronic disease. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Because you would certainly think that if you have cancer
and especially if you had a terrible kind of cancer that you would want to
participate in a trial. Sometimes people don't even know about the trials. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">It's exactly that. Part of it is that the information
systems that are out there are not as sophisticated as they could be in terms
of informing patients about clinical trials and what the outcomes might be and
what the best possible solutions for that particular patient might be. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">There was some money for cancer research in the stimulus
package, is that useful?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Absolutely it's useful. I mean, you know, every penny is
useful so absolutely it's been useful. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">What about drug companies? Do they need more of an incentive
to search for new drugs or do they have enough now?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well the question of drug companies comes up and I often
think-- I often think that there's a kind of a schizophrenia or split
personality within every drug company; so there's one pharmaceutical industry
that is peddling to us false products, hiding data, and making it impossible
for us to build a trust with pharmaceutical indus-- with the pharmaceutical
industry. But then there is another pharmaceutical industry as it were, which
was an incredibly important partner in the development of Gleevec and
Herceptin, every single major drug.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">You know one issue I know for drug companies is off label
uses of drugs so a drug will be developed, as you said Gleevec is an example,
for one purpose and if-- you know you find out hey this works on cancer as
well. And yet the drug company is not allowed to publicize that fact. Is that
harming cancer treatment?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well I think that the channels by which a drug company is
allowed to publicize that are appropriate which is that there needs to be an
appropriately run clinical trial which demonstrates the use of this off label
use of this compound in the appropriate setting. And that clinical trial needs
to occur in the most rigorous manner possible and once that's performed then
everyone is better for it. The drug company can now say that this is a drug
that truly works in this setting and patients can say we're now safe; it is
appropriately safe to take this drug for this kind of cancer. I mean I can give
you a quick example of this; you know Gleevec was originally approved for
leukemia and in fact it works on about 20 other forms of diseases including
some very lethal kinds of cancer. Discovering all of these uses was done by
performing very rigorous clinical trials and that's the exact appropriate way
to do this. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Is the profit incentive though important-- important
character in this story of cancer. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">It is.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">You mean in a positive way or a negative way.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">I think it is so in a positive way as I said you know if
that profit incentive was harnessed in the appropriate manner, it can be. But
we tell the story you know many of the pharmaceutical companies including
Novartis and including Genentech whose stories-- I mean the stories of whose
heroic research scientists are told in this book became resistant to the
development of million and or billion dollar drugs. And so there needs to be a
process, and they were resistant by the way because they thought they would
never get enough market for these drugs, so there needs to be a process by
which we can-- by that we I mean academics, scientists, researchers, the NCI
can communicate to pharmaceutic-- the pharmaceutical industry that this-- we're
in it together and that the best goal here is to get patients you know cured or
at least free of cancer or at least treat their cancer and convert it into a
chronic disease and if we reach that goal everyone will benefit including the
pharmaceutical industry.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">What advances are you most optimistic about?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Well the-- the two areas that I think are-- you know bring
the most optimism to my mind; number one is targeted therapies. This idea that
you can exquisitely, specifically target a cancer cell while sparing the rest
of the body, and of which Gleevec is the first example.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Will that help with all cancers?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">No absolutely not. So each cancer has its own unique
spectrum of targets and every ca-- basically often a targeted therapy has to be
developed for every single form of cancer.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">But I mean every single kind of cancer could benefit from
some sort of targeted therapy. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">In principle. You know this is a proof of principle that's
out there, we don't know if pancreatic cancer for instance will benefit from a
targeted therapy. Some cancers may be so complex that we-- that these simpler
targeted therapies might not work, maybe combinations need to be used, maybe a
new kind of chemical needs to attack those kinds of cancers. But targeted
therapy being one direction. The other direction of course is-- a revamping, a
revivification of prevention. So the idea that we were talking about this
before instead of running large epidemiological studies which have been very
important in early prevention research, is to find out enough about what makes
a cancer cell tick so that you can in the laboratory find out a chemical before
it's released to the public, whether it's a carcinogen or not. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Thank you Sid Mukherjee.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">DR. SIDDHARTHA MUKHERJEE: </p>

<p class="MsoNormal">Thank you so much, thank you for having me. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">JIM GLASSMAN:</p>

<p class="MsoNormal">Before we go I want to remind viewers that you can catch <i style="">Ideas in Action</i> whenever and wherever
you choose. To watch complete shows just go to our website ideasinactiontv.com
or download a podcast from the iTunes store. That's it for this week's <i style="">Ideas in Action</i>; I'm Jim Glassman thanks
for watching. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">ANNOUNCER:</p>

<p class="MsoNormal">For more information visit us at ideasinactiontv.com.
Funding for <i style="">Ideas in Action</i> is
provided by Investor's Business Daily. Every stock market cycle is led by
America's never ending stream of innovative new companies and inventions.
Investor's Business Daily helps investors find these new leaders as they
emerge. More information is available at Investors.com.</p>



<p class="MsoNormal">This program is a production of Grace Creek Media and the
George W. Bush Institute, which are solely responsible for its content. </p>





<p class="MsoNormal">**End of Audio**</p>

<p class="MsoNormal">***End of Transcript***<span style="">&nbsp;
</span></p>]]>
    </content>
</entry>

<entry>
    <title>Getting America Back to Work (Part 2) - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/03/getting-america-back-to-work-three-different-views-part-2.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42339</id>

    <published>2013-03-07T16:57:00Z</published>
    <updated>2013-03-08T18:32:26Z</updated>

    <summary>It&apos;s no surprise the economy is on the minds of most Americans. One in ten of us is out of work. It&apos;s a rate that hasn&apos;t changed in a year and a half. So why aren&apos;t jobs being created? Why...</summary>
    <author>
        <name>Chris Bowyer</name>
        
    </author>
    
        <category term="Episode 46" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="alangreenspan" label="Alan Greenspan" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="benbernanke" label="Ben Bernanke" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="employment" label="Employment" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="federalreservesystem" label="Federal Reserve System" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.ideasinactiontv.com/episodes/">
        <![CDATA[<p>It's no surprise the economy is on the minds of most Americans. One in ten of us is out of work. It's a rate that hasn't changed in a year
and a half. So why aren't jobs being
created? Why aren't businesses
hiring? Can the government do anything
about it? Should it? Three different
economists with three very different views discuss how they would get America
back to work.</p>]]>
        <![CDATA[<br /><p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Welcome to <i>Ideas In Action</i>, a television series about
ideas and their consequences.<span style="">&nbsp; </span>I'm Jim
Glassman.<span style="">&nbsp; </span>This week, we continue part
two of a discussion on boosting job growth at home.<span style="">&nbsp; </span>You might be surprised that the recession has
been declared officially over because for many Americans, it sure doesn't feel
that way.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">That's because the unemployment rate has been holding steady
at nearly ten percent.<span style="">&nbsp; </span>So where are the
jobs.<span style="">&nbsp; </span>Here are three economists with
very different views.<span style="">&nbsp; </span>Heather Boushey, a
senior economist at the center for American progress where she focuses on job
creation and employment.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">This is the best time for government to go out and spend its
dollars effectively on infrastructure.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Kevin Hassett, senior fellow and director of economic policy
studies at the American Enterprise Institute and a former senior economist at
the Federal Reserve.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">We need to consider policies that could, on average, deliver
something like a percent a year of growth for a long, long time not something
that would necessarily jack up growth just this year.<span style="">&nbsp; </span>A leading candidate, I believe, is
fundamental tax reform.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">And Alan Tonelson, research fellow with the U.S. Business
and Industry Council, a national business organization that represents nearly
2,000 domestic American companies.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">What is urgently needed in order to grow while cutting debts
is substituting on a very significant scale what we make at home, goods and
services for what we presently import.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">The topic this week getting America back to work.<span style="">&nbsp; </span>This is <i>Ideas In Action</i>.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ANNOUNCER:</p>

<p class="MsoNormal">Funding for <i>Ideas In Action</i> is provided by <i>Investor's
Business Daily</i>.<span style="">&nbsp; </span>Every stock market
cycle is led by America's never-ending stream of innovative new companies and
inventions.<span style="">&nbsp; </span><i>Investor's Business Daily</i>
helps investors find these new leaders as they emerge.<span style="">&nbsp; </span>More information is available at
Investors.com.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">According to the National <span style="">Bureau of Economic</span> Research, the recession has been over since
June 2009.<span style="">&nbsp; </span>That's when the economy
finally showed signs of expansion.<span style="">&nbsp; </span>But
for many Americans, this so called recovery is no recovery at all.<span style="">&nbsp; </span>Unemployment hasn't gone down.<span style="">&nbsp; </span>It's been holding steady at nearly ten
percent for a year and a half.<span style="">&nbsp; </span>That
means 50 million Americans are out of work, that one third of those unemployed
haven't had a job in more than a year, a phenomenon not seen since the Great
Depression.<span style="">&nbsp; </span>Alan, let's talk trade.<span style="">&nbsp; </span>You're in favor of putting up barriers to
encourage manufacturing, and as you put it, protect American jobs.<span style="">&nbsp; </span>But-- but some people would say that the
Smoot-Holly Tariff during the Great Depression actually exacerbated things at
that time.<span style="">&nbsp; </span>So why would you want to have
barriers now?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Well, the problem really is that first of all, the Great
Depression resulted fundamentally from the fact that the world economy heading
out of the 1920s was so sick that it was headed for an enormous fall.<span style="">&nbsp; </span>And there's a lot of scholarly evidence
showing that if you look at-- at-- at what tariffs were actually put on, when
they were imposed, what specific retaliation-- it's really much ado about very
little.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">But-- but whatever happened in the '30s--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Jim, I'm sorry.<span style="">&nbsp; </span>But
that's the scholarship.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--You can imagine-- you can imagine the United States said,
"We don't want any more Chinese goods.<span style="">&nbsp;
</span>Or we're going to force the Chinese to revalue their
currency."<span style="">&nbsp; </span>The Chinese can come
back and do the same thing to us.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">In-- in the crudest possible sense, in that case, we
win.<span style="">&nbsp; </span>Why?<span style="">&nbsp; </span>Because they ran a $235 billion trade surplus
with us last year in goods.<span style="">&nbsp; </span>And PS, 95
percent of that was manufacturing.<span style="">&nbsp; </span>And
PPS, a shrinking share of those manufactured goods were not shoes and toys and
sporting goods and all the stuff that, for better or worse, is gone.<span style="">&nbsp; </span>It was much higher value capital intensive
and technology intensive products.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Yeah, but a lot of that was-- was-- we took it--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">If you're talking about net effects--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--And we made things with right?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">If you're talking about the net effects--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">There were parts.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">If by some wild chance which is not going to happen because
nobody can possibly shut borders.<span style="">&nbsp; </span>That's
just silly.<span style="">&nbsp; </span>But if there is a quote
trade war end quote, they're the enormous losers.<span style="">&nbsp; </span>They're running the-- the biggest
surpluses.<span style="">&nbsp; </span>So any country that had
shrewd poker players as its leaders, and I don't think we do, would recognize
the enormous leverage we have to secure more equitable terms of trade.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Kevin wants to get in here.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">Yeah, I-- I was just going to say that-- that I-- I really
disagree.<span style="">&nbsp; </span>And-- and I think that-- the
analysis might be correct in terms of jobs, only jobs.<span style="">&nbsp; </span>But it's certainly not correct in terms of
welfare.<span style="">&nbsp; </span>And so the fact is that, you
know, if you go to Wal-Mart, you buy cheap stuff.<span style="">&nbsp; </span>Jason Furman-- has a famous paper about-- how
Wal-Mart's really great-- for low and middle-income people and it improves
their standard of living.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">If all of a sudden we say those cheaper goods from abroad
are not allowed to come in, then we probably would create more jobs in the
U.S.-- because the stuff would have to be purchased from the U.S.<span style="">&nbsp; </span>But-- but I would just dispute that it's
clear that that-- that we would make the U.S. a better place, the-- that-- I
think the consumers would be a lot worse off.<span style="">&nbsp;
</span>The people who were hired would be better off.<span style="">&nbsp; </span>And on net, probably I mean, it-- at least if
you believe the trade models, we'd be a lot worse off.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Yeah, that's-- those are all--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">But the consumers are usually people--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--All experiment--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--The people who are behind.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Let's say-- let's say we had no trade with anybody, we did
everything in the United States--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Well, why-- why would you start with that?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Would that be the b-- would that--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Why would you start with that?<span style="">&nbsp; </span>Why-- that's so far from where we are.<span style="">&nbsp; </span>Why in the wor-- that's-- that's just not a
thought experiment we're engaging in--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Yeah, but that s--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">It wouldn't engage with me, I'm sorry.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">But that seems to be your-- your-- your thesis is we--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Why-- why do you say that?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--We need to make more things in the United States.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Absolutely.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Why don't we make everything in the United States?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">I don't see, first of all, why this country should not be
fully competitive in capital intensive and technology intensive products.<span style="">&nbsp; </span>We have the human capital.<span style="">&nbsp; </span>We have this wonderful entrepreneurial
system.<span style="">&nbsp; </span>We have a world-class university
system.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">We have very skilled workers despite what you read about
the-- the lousy schools et cetera.<span style="">&nbsp; </span>In
fact, lots of the folks losing their jobs to foreign competition nowadays are
folks who have got Ph.D.'s.<span style="">&nbsp; </span>They're
engineers.<span style="">&nbsp; </span>They're software programmers,
et cetera, et cetera.<span style="">&nbsp; </span>So again, tremendous
amount of skills that we have in this country.<span style="">&nbsp;
</span>Yet what happened according to the latest trade figures that we just
saw?<span style="">&nbsp; </span>The trade deficit in high tech
goods hit a new record, a new monthly record.<span style="">&nbsp;
</span>The trade deficit in high tech goods this year as opposed to last year
so far is running 52 percent higher.<span style="">&nbsp;
</span>This makes no sense if there were genuinely free competition.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">Well, and-- I think something to add to that is that-- I
think sometimes we discount the important role that manufacturing plays in a
feedback loop through creating the high tech goods and services, that those
workers on the shop floor are the ones that can tell you, you know, how this
good is being produced.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">So-- so-- so heather, s--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">So there's-- so--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">So what is the policy?<span style="">&nbsp;
</span>What-- what policy would you like to see?<span style="">&nbsp; </span>Do you think we should, you know-- make--
have tougher antidumping laws?<span style="">&nbsp; </span>I mean--
should we raise tariffs?<span style="">&nbsp; </span>I mean, w--
how-- how do you-- how do you increase-- the consumption in the United States
but don't increase imports?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">Well, I think one path-- that folks have been talking about
a lot here in Washington that we should pursue is to th-- is to-- to make the--
to sort of-- to take it to a little different place, to make that connection
that folks have been making between energy and manufacturing, that we-- have
this opportunity to create a viable industry here in the United States that--
to promote it, to promote the development of green energy technologies and all
of this, that-- that-- and these are things that other countries right now are
starting to outpace us in.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">That's a little tiny, tiny, tiny part of the economy.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">But it doesn't have to be.<span style="">&nbsp;
</span>And it could create a lot of innovation.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Well-- well, what do you think of that Kevin?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">No, no, I-- I-- look-- look, what we need to do is cut the
corporate rate so that people want to locate firms here.<span style="">&nbsp; </span>The fact is the-- that a big reason why the--
the estimates in the literature are that the elasticity of responsiveness of
the location decision to tax rates is-- is really, really high, way bigger than
one so that if we lower the rate then the plants that currently are deciding to
locate in offshore, low tax places will want to locate here.<span style="">&nbsp; </span>And you'll create jobs here.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Well-- hold on-- what do you think of that?<span style="">&nbsp; </span>I mean, that-- that seems to me like the most
obvious thing to do.<span style="">&nbsp; </span>We have the second
highest corporate tax rate in the world-- a little tiny bit less than Japan.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Here's the problem with that, Jim.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">European countries have lower tax rates, corporate tax rates
than we do.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">First of all, taxes-- I mean, whenever you face a problem
this big, there's never w-- one magic bullet.<span style="">&nbsp;
</span>Okay, but the other bigger problem--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">You know, but what's wrong with that?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">The bigger problem is the fact that if you look at where the
factories and labs are relocating to, it's not to the other OECD countries--
with whom the--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">OECD means--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Meaning the--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--Highly developed.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--The wealthier countries with whom these comparisons are
always made.<span style="">&nbsp; </span>They're going to very low
wage, very low cost regulation free for all intents and purposes developing
countries.<span style="">&nbsp; </span>Now, do we really want to
engage in a tax competition with the Chinese because that, I guarantee you, is
a formula for racing to the bottom and achieving Chinese living standards.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">What-- what do you think?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">No, we-- we absolutely have to engage in the
competition.<span style="">&nbsp; </span>Everybody else is.<span style="">&nbsp; </span>And we haven't.<span style="">&nbsp; </span>And that's why this-- even-- as you say, even
the research is going abroad to these-- developing countries, the tax rates are
even lower than in the OECD.<span style="">&nbsp; </span>And the
point is that you have to locate-- this is, like, a weird thing about tax
planning that our bureaus' might not know but you have to locate intellectual
property in the tax haven in order to locate income there 'cause what happens
is you create the really cool software in-- in some low tax country somewhere.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">And then all of your subsidiaries in the U.S. have to pay
royalties to the place where the cool software was developed.<span style="">&nbsp; </span>And so you need your smartest people that are
generating the things that plausibly could-- could charge royalties in the
lowest tax place.<span style="">&nbsp; </span>And so-- and so we're
really shooting ourselves in the foot.<span style="">&nbsp;
</span>We're locating production offshore.<span style="">&nbsp;
</span>And we're locating the research and development that then leads to waves
of new products--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">But if you also locate--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">--And so on offshore.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--The new lab or factory or you-- you-- you transfer it
where the subsidies are most lavish, where currency gets manipulated--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">I mean, that's just--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--Massively in--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Alan, that's--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--Violation of every free--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--That's just the-- that's just the facts of--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--Market norm you can think of.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Well, I don't-- I don't know.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">No, no, it's--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">I mean, they're-- they're all con--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">And what's-- and the problem with that--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Nobody likes subsidies.<span style="">&nbsp;
</span>Actually I want to sort of segue form here because Kevin's talking
about-- basically talking about-- sort of the good jobs.<span style="">&nbsp; </span>But what-- but what do you think, Alan?<span style="">&nbsp; </span>I mean-- is-- doesn't it stand to reason
that-- that America's comparative advantage, whatever happens with trade, is in
high technology or is in kind of the brainy kinds of stuff?<span style="">&nbsp; </span>And so that it's really become more and more
of an imperative for people to get a better education.<span style="">&nbsp; </span>Isn't that really what the problem is?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">No, it's not.<span style="">&nbsp; </span>And the
reason is that we are not the only people--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">To-- to put it bluntly.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">To put it bluntly, we are not the only country that
recognizes the value of retraining and reeducation and scholarship and
knowledge.<span style="">&nbsp; </span>We are not the only country
recognizing that knowledge is good.<span style="">&nbsp; </span>And
the rest of the world including the very low-income countries are also racing
frantically to re-skill and reeducate.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">So what's our comparative advantage or do you believe in
that?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">That-- that is actually increasingly a darn good
question.<span style="">&nbsp; </span>And here's why--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">That's why I asked it.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Okay, and this is the first time this has ever been said
on-- on national television, productivity is increasingly becoming a mobile
factor of production.<span style="">&nbsp; </span>All of the
expertise, all of the special qualities that are involved in making advanced
products can now be literally packaged by corporations and transferred overseas
almost as turnkey operations to work forces that are low wage-- not because in
a sense they always have been and so they're basically-- playing catch up but
because they are so numerous, there is such a glut of labor that they're going
to be low wage for decades to come--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">So what does that mean--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--At minimum.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--Too, for Americans-- thinking about what kind of job
they're going to have in the next ten years?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">As long as this economy remains as open as it has been to
this kind of ultra low wage, regulation free competition-- I see a very dim
future for even very skilled American workers.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Kevin?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">I-- I think that-- the future could be bright or it could be
dim.<span style="">&nbsp; </span>I don't think that-- competition--
subtracts from what the U.S. can accomplish.<span style="">&nbsp;
</span>Don't forget that what's going on is that-- we're seeing what-- growth
there is called convergence, that it used to be that the United States was much
bigger, much wealthier than the rest of the world-- in part because the rest of
the world was, you know, organized by communists-- that didn't know-- you know,
that thought they could centrally plan an economy and they couldn't.<span style="">&nbsp; </span>And what we're seeing is-- you said,
"Why is China growing so fast?"<span style="">&nbsp;
</span>Well, they're growing so fast so that-- because they're so poor.<span style="">&nbsp; </span>And if they just copy developed nations, then
they can start to grow quickly.<span style="">&nbsp; </span>So we're
at a period--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">But they're not copying developed nations.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">So we're in a period-- but we're in a period-- yes, they
are.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Not they're not.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">We're in a period, yes, they are.<span style="">&nbsp; </span>They're using pr-- developed nations--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">They are using--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">--Production.<span style="">&nbsp; </span>And--
and as they converge--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--Capitalism.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">I thought that's what you just said.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--Characteristics.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">I thought you said that anybody can-- that-- that-- that--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">Run a factory like us.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Brain-- brainwork is-- is-- is mobile.<span style="">&nbsp; </span>And the productivity can go anywhere.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Oh no, on the microeconomic level but in terms of that
macroeconomic policy, the state owned sector in China is expanding once again.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Well, okay, okay, but--</p>

<p class="MsoNormal"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>(OVERTALK)</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">That wasn't my point.<span style="">&nbsp;
</span>That wasn't my point.<span style="">&nbsp; </span>My point
was just that-- that convergence-- if-- if-- if China grows wealthy, that's not
bad for us.<span style="">&nbsp; </span>That's good for us.<span style="">&nbsp; </span>The whole world economy gets bigger and then
we can sell them stuff, too.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Actually that's a great-- point-- I was wondering what Alan
would think about that.<span style="">&nbsp; </span>Is this a zero
sum game?<span style="">&nbsp; </span>Gee, the Chinese are getting
all rich and so that means that we're going to be poor?<span style="">&nbsp; </span>Or if the Chinese get rich or-- forget about
the Chinese 'cause that's kind of an emotional issue, the Brazilians, for
example, I just came back from Peru.<span style="">&nbsp;
</span>It's amazing what's going on in Peru.<span style="">&nbsp;
</span>You think the Peru-- Peruvians are stealing all our ideas and thereby
stealing our jobs?<span style="">&nbsp; </span>Or do you think it's
good because Peru's getting richer?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">It's a very complicated game.<span style="">&nbsp; </span>And one thing that strikes me is that for 15
years, this country has been told if we open up the so called emerging markets,
if we unlock all the consumption power of these zillions of consumers in China
or outside China-- everybody grows richer.<span style="">&nbsp;
</span>The pie expands.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">The sky's the limit.<span style="">&nbsp;
</span>And yet, what are we looking at now?<span style="">&nbsp;
</span>What is Mr. Bernanke most worried about now?<span style="">&nbsp; </span>Deflation, why is that?<span style="">&nbsp; </span>Because in fact, the opening of these very
low wage, low consumption economies which will remain low consumption economies
relatively speaking for decades to come has unleashed much more production and
much more productive capacity than it has consumption and consumption
capacity.<span style="">&nbsp; </span>There's too much production in
the world--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Okay, you raise some really interesting questions.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--That has been generated from these countries.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">And first of all, is defil-- is the deflation that the fed
is worried about, is that the result of this new supply coming onboard in all
these countries?<span style="">&nbsp; </span>Or is it because of
this recession that we've just had?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">Well, I tend to think of it as-- as because of the recession
that we're living through.<span style="">&nbsp; </span>But I mean--
Alan raises an interesting point.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">And-- and-- and by the way, second question, I'll ask you,
but-- but I think-- Alan-- Alan raises it.<span style="">&nbsp;
</span>And it's a very important question, which is, yes, it is true that these
countries are not doing a lot of consuming.<span style="">&nbsp;
</span>But-- don't you think that at some point the Peruvians and the Chinese
and the Brazilians will, in fact, be doing a whole lot of consuming like
Americans have?<span style="">&nbsp; </span>Or is there something
culturally different about them?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">Well, there was something culturally different about
Americans over the past couple of decades, right.<span style="">&nbsp; </span>As we saw the American labor force see a
decline, a secular decline in their wages, declines in family incomes, you saw
them put more families members into the household during the 1980s.<span style="">&nbsp; </span>More women went to work to sort of make up
for-- falling male wages.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">And then when they tapped out on that, they started taking
out all this debt, all the crazy new debt instruments that we now know can--
can-- collapse an economy faster than you can say lickety split in the late
2000s, right, late-- 20 t-- you know, the end of the last decade.<span style="">&nbsp; </span>But what we-- you know, so your question
about whether or not developing countries will start consuming is will they
develop the kind of middle class that can-- that can support that consumption
base?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">What we've seen here in the United States is that it appears
that we have allowed our middle class to atrophy over the past 20 years, 30
years, a lot of it because we haven't focused on creating good jobs for the
millions of people who are not just high tech workers and creating-- wage
growth for those folks.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">And that in turn has-- has led to-- you know, both-- you
know, it was part and parcel to this crisis but is also part in parcel how we
can't get out of it because folks don't have the savings.<span style="">&nbsp; </span>They don't have-- now with high unemployment
and they don't have the-- equity in their homes to sort of be the consumers
that we kind of need.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Oh but-- but do they not have the savings because somehow,
you know, I don't know, we've destroyed the middle class as you say?<span style="">&nbsp; </span>Or is it because of this cultural reason that
you were just bringing up, that Americans have-- have kind of gone a little bit
overboard on their borrowing.<span style="">&nbsp; </span>Now, they
got to cut back?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">Well, but-- but my-- but my point was why did people do that?<span style="">&nbsp; </span>Right, what you saw was declining living
standards since the mid 1970s.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Actually-- Kevin--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">So-- so what-- so what--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Respond to that.<span style="">&nbsp; </span>What
about declining living standards?<span style="">&nbsp; </span>I
mean, a lot-- a lot of people--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">But-- but--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--Have-- have said that.<span style="">&nbsp;
</span>And you-- you got-- you know, s-- you go two people working, a husband
and wife working.<span style="">&nbsp; </span>And that wasn't true
back in the--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">And families--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--Good old 1950s.<span style="">&nbsp; </span>I
mean, are people-- are-- are living standards declining?<span style="">&nbsp; </span>Is there something wrong with the American--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">No, the-- the--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--System?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">This is-- the-- the-- the data that suggest that come from--
wage-- data-- sets.<span style="">&nbsp; </span>If-- if you look at
consumption it's not true that consumption has been declining.<span style="">&nbsp; </span>Although, after the recession--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">But that's been the problem.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">--I would guess you would adjust it.<span style="">&nbsp; </span>No, no, no, but--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">That's been the problem.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">My point is the living standard--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">You can't do that forever.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">--Is what people consume.<span style="">&nbsp;
</span>No, and-- and-- and when the savings rate is ten percent and it goes to
one percent, then it could be because people are optimistic.<span style="">&nbsp; </span>It turns out, you know, they were incorrectly
optimistic.<span style="">&nbsp; </span>It could also be something
that comes about because so many-- families have two earners.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">And so-- so you don't necessarily have to save for the probability
that there's no job in the family-- quite so much.<span style="">&nbsp; </span>And so there have been a number of changes
that-- that have led to increased consumption.<span style="">&nbsp;
</span>I-- I would guess if we ran the numbers through 2009 that we'd see that
even con-- real consumption-- in-- in the bottom of the income distribution has
declined now.<span style="">&nbsp; </span>But I think that-- that we
need to emphasize though that-- that this notion that-- it's a zero sum game I
think is one that-- that we should-- we should sort of reject.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">The-- the-- the fact is that-- that there are problems in
the U.S.<span style="">&nbsp; </span>And-- and one problem is that
you don't want to locate stuff that makes money here in the U.S. because we tax
it so much.<span style="">&nbsp; </span>And the-- the idea that we
could tax the heck out of firms if they're successful but give them a little
bit of subsidy to do something if it's-- if they can put green-- in the title
of it-- is-- is just ludicrous policy making.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">And that's been the policy making that we've seen, you know,
through both the-- the Bush and the Obama administrations.<span style="">&nbsp; </span>So-- so-- so-- President Bush didn't
propose-- taking part in the tax competition around the world.<span style="">&nbsp; </span>President Obama hasn't proposed it yet.<span style="">&nbsp; </span>And I think that it's time that we fix those
things.<span style="">&nbsp; </span>And then the jobs and the
welfare and everything will start to come here.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">But President Bush did cut marginal tax rates-- on-- on
income.<span style="">&nbsp; </span>And you don't-- personal income,
so you don't think that has-- that has-- a good effect?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">Not very big.<span style="">&nbsp; </span>It's--
it's a very--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">You think-- you think--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">--Loose link--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--Cutting corporate taxes is more important.<span style="">&nbsp; </span>Would you accept a tradeoff where t--
personal tax rates go back to where they were prior to 2001 but the corporate
tax is cut in half?<span style="">&nbsp; </span>There's a deal.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">You know, I-- I-- it's-- it's a deal that you'd have to take
seriously.<span style="">&nbsp; </span>I mean, the corporate tax is
so out of whack with the rest of the world right now.<span style="">&nbsp; </span>You know, I-- I-- I'd almost be willing but
not quite to trade my dog for a cut in the corporate tax rate or
something.<span style="">&nbsp; </span>(LAUGHTER)</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Okay-- Kevin-- Kevin brings up an issue that I'd like to
explore here as we near the end.<span style="">&nbsp; </span>And
that is-- this business about-- optimism.<span style="">&nbsp;
</span>And, you know, one of the reasons that people borrow is because they
feel good about the future.<span style="">&nbsp; </span>I mean, you
know, we can-- we can have sort of moral judgments about people
over-borrowing.<span style="">&nbsp; </span>They feel good about the
future.<span style="">&nbsp; </span>And-- so do you think that
Americans feel today that the future for their children and their grandchildren
is not going to be as good as the present is for them or the past has been for
them?<span style="">&nbsp; </span>I mean, are-- are we entering kind
of a new era here?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">Well, I think a couple of things.<span style="">&nbsp; </span>I mean, one I think a lot of people were
borrowing over the 2000s because-- maybe some folks were borrowing because of
optimism.<span style="">&nbsp; </span>But a lot of them were doing
it in order just to-- to sort of keep up, to make-- to keep up with the living
standards that their parents had that they felt that they should have.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">So there-- there are-- there are a couple of reasons that
people borrow.<span style="">&nbsp; </span>And it's not just--
because they have hope in the future.<span style="">&nbsp;
</span>That's usually why you invest.<span style="">&nbsp;
</span>You invest in your kid's college education because you're hopeful that
they'll-- that they'll get that job and that they will rise up.<span style="">&nbsp; </span>You know-- are people more or less optimistic
about the future today?<span style="">&nbsp; </span>I mean, I think
that now people are very concerned.<span style="">&nbsp;
</span>They're very concerned about-- wages.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">They're concerned about jobs.<span style="">&nbsp; </span>They're concerned about sort of where we're
headed in this economy moving forward.<span style="">&nbsp;
</span>But I also want to circle back to something that-- that Kevin just
pointed out which is that, you know, we have these choices to make as a country
about how we're going to spend the resources that we have and-- and how we're
going to create a vision of America moving forward.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">And one of the big choices that-- we are looking at is-- is,
you know-- how we feel about taxes and the tax cuts for the wealthiest
Americans and how we feel about investing in infrastructure and bringing our
infrastructure system up to the 21st century, how we feel about creating an
economy that works for all of us and creates a vibrant middle class.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">And I think those are really important questions.<span style="">&nbsp; </span>One of the things that-- although I agree
with much of what you said today, Kevin, one of the things that concerns me is
that if our sole goal is on-- cutting taxes and cutting spending, although you
didn't talk so much about cutting spending but cutting taxes, how are we going
to create the foundations for a strong economy?<span style="">&nbsp;
</span>How are we going to lay that groundwork-- when we've got this
infrastructure that's crumbling.<span style="">&nbsp; </span>I-- I
don't-- I don't know that that-- that connection doesn't seem to be there.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Well, not to speak for Kevin but I think that-- he would
probably say-- I would say that cutting taxes is a way to spur growth.<span style="">&nbsp; </span>I mean, you can argue--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">Well, but he just made the--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">--Against that.<span style="">&nbsp; </span>But
the-- the goal is n-- I don't think the goal is to cut taxes.<span style="">&nbsp; </span>The goal is to get the American economy going
so that more people have jobs.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">Well, and that's--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">And he thinks that that's the way to do it.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">I-- I think-- I think we all agree that we'd like to see
more jobs.<span style="">&nbsp; </span>And I think that-- that--
that-- that's-- I mean, certainly we're all on that-- that point.<span style="">&nbsp; </span>But what-- what-- what I think we've seen is
that cutting taxes for the wealthiest Americans did not lead to rapid job
creation over the 2000s and-- you know, and as Kevin just said, we're not-- I
mean, I'm not sure that that's the right policy moving forward.<span style="">&nbsp; </span>Corporate taxes is a different story.<span style="">&nbsp; </span>But what you do in terms of-- income taxes--
does not appear--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">So you would cut corporate taxes?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">I did not say I would cut corporate taxes.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">You said it's a different story.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">I said it's a different story.<span style="">&nbsp; </span>I think--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Meaning?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">Meaning that--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Real quick.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>HEATHER BOUSHEY:</p>

<p class="MsoNormal">That-- you know, the biggest-- I think the-- the question on
the table right now is what do we do about income taxes.<span style="">&nbsp; </span>And--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">You-- you seem to be ducking.<span style="">&nbsp; </span>Okay, but Alan, so what do you think about
the future-- the-- the very eloquent-- remarks here by heather about the way
people see the future.<span style="">&nbsp; </span>Is the future
dimmer for-- for-- for children and-- and grandchildren?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">I have to say I'm pretty pessimistic.<span style="">&nbsp; </span>And I'm pessimistic not only because we're
in-- a deleveraging recession-- which is going to take a long time to dig out
of.<span style="">&nbsp; </span>I'm pessimistic because for much
longer than that, for the entire previous decade, this country, it seems,
forgot how to grow without piling on debt.<span style="">&nbsp;
</span>We make a big mistake when we look at the pre 2007 period, the pre 2007
expansion as a reasonably good expansion.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">The economy was basically healthy.<span style="">&nbsp; </span>What did we hear from every responsible
Washington official when the subprime mortgage crisis first broke?<span style="">&nbsp; </span>The fundamentals are healthy.<span style="">&nbsp; </span>The fundamentals then were deeply sick.<span style="">&nbsp; </span>How do we know this?<span style="">&nbsp; </span>Because even during that previous mortgage
mess decade, the government was also pouring record amounts of peacetime
stimulus into the economy, record low interest great-- record low interest
rates for stimulus.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">You're talking about early in the 2000s?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">Absolutely.<span style="">&nbsp; </span>And it
continued well after the 2001, 2002 recession ended.<span style="">&nbsp; </span>Plus a major swing--</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Well, that may have just been bad monetary policy.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>ALAN TONELSON:</p>

<p class="MsoNormal">--In federal-- but also then bad budget policy.<span style="">&nbsp; </span>But-- but the-- the f-- the main point is
stimulus of various kinds and the growth output, the growth record was totally
mediocre.<span style="">&nbsp; </span>So that gave us a big clue
that the engines of wealth creation were malfunctioning even back then.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Kevin, what about the future?</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>KEVIN HASSETT:</p>

<p class="MsoNormal">I think that right now-- if we do nothing then the future's
looking bad for a long time.<span style="">&nbsp; </span>I-- I think
we need to remember that the-- experience of countries that have been through
financial crises in the past-- is really troubling and disturbing.<span style="">&nbsp; </span>If you go back to late '70s Spain-- you know,
they had really low unemployment before their financial crisis.</p>

<p class="MsoNormal">It's never gone back to where it was even through
today.<span style="">&nbsp; </span>And so there's a chance that
we're going to dislodge people from the work force and that they're going to be
out there-- for 30, 40 years creating-- a place that's a different country, a
fundamentally different country.<span style="">&nbsp; </span>But I
think that as we talked about-- there are a lot of policies that we can either
agree on or almost get Heather to agree on-- that-- that could change things.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">And-- and I believe that they could change things a lot for
the better.<span style="">&nbsp; </span>And so I think that the
risks are kind of actually as we look forward on the upside because put it this
way, yeah, I think that you could go into any random corner of economic policy
and change something randomly and it would be better.<span style="">&nbsp; </span>It'd probably be better because our policies
are so terrible.<span style="">&nbsp; </span>And so, you know, it's
kind-- if congress can act at all then they can make things better.</p>

<p class="MsoNormal" style="page-break-after: avoid;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>JIM GLASSMAN:</p>

<p class="MsoNormal">Well, on that happy note, thank you, Kevin.<span style="">&nbsp; </span>Thank you, Heather.<span style="">&nbsp; </span>And thank you, Alan.<span style="">&nbsp; </span>Before we go, I want to remind viewers that
you can catch <i>Ideas In Action</i> whenever and wherever you choose.<span style="">&nbsp; </span>To watch complete shows just go to our
website, Ideasinactiontv.com or download a podcast from the ITunes store.<span style="">&nbsp; </span>And that's it for this week's <i>Ideas In
Action</i>. <span style="">&nbsp;</span>I'm Jim Glassman, thanks for
watching.</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal" style="text-align: center;" align="center">ANNOUNCER:</p>

<p class="MsoNormal">For more information visit us at ideasinactiontv.com.
Funding for <i style="">Ideas in Action</i> is
provided by Investor's Business Daily. Every stock market cycle is led by
America's never-ending stream of innovative new companies and inventions.
Investor's Business Daily helps investors find these new leaders as they
emerge. More information is available at investors.com. This program is a
production of Grace Creek Media and the George W. Bush Institute, which are solely
responsible for its content. </p>

<p class="MsoNormal"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>* * *END
OF AUDIO* * *</p>

<p class="MsoNormal"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>* * *END
OF TRANSCRIPT* * *</p>]]>
    </content>
</entry>

<entry>
    <title>Getting America Back to Work (Part 1) - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/02/getting-america-back-to-work-part-1.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42332</id>

    <published>2013-02-28T19:51:06Z</published>
    <updated>2013-03-01T16:01:06Z</updated>

    <summary><![CDATA[It's no surprise the economy is on the minds of most Americans. One in ten of us is out of work. It's a rate that hasn't changed in a year and a half.&nbsp; So why aren't jobs being created? Why...]]></summary>
    <author>
        <name>Emily Johnson</name>
        
    </author>
    
        <category term="Episode 45" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="americanenterpriseinstitute" label="American Enterprise Institute" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="business" label="Business" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="discouragedworker" label="Discouraged worker" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="employment" label="Employment" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="federalreservesystem" label="Federal Reserve System" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="jameskglassman" label="James K. Glassman" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="jobsearch" label="Job Search" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="jobs" label="Jobs" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="kevinhassett" label="Kevin Hassett" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="unemployment" label="Unemployment" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="unitedstates" label="United States" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="wallstreet" label="Wall Street" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.ideasinactiontv.com/episodes/">
        <![CDATA[<p>It's no surprise the economy is on the minds of most Americans. One in ten of us is out of work. It's a rate that hasn't changed in a year and a half.&nbsp; So why aren't jobs being created? Why aren't businesses hiring? Can the government do anything about it? Should it? Three different economists with three very different views discuss how they would get America back to work.</p>]]>
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Ideas in Action with Jim Glassman</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Getting America Back to Work: Part One</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">An Interview with Heather Boushey, Alan Tonelson, and Kevin Hassett.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Welcome to <i>Ideas in Action</i> a television series about ideas and their consequences. I'm Jim Glassman. It's no surprise that the economy is on the minds of most Americans. One in ten of us is out of work. It's a rate that hasn't changed in a year and a half. So why aren't jobs being created? Why aren't businesses hiring? Can the government do anything about it? Should it? We've invited three different economists with very different views to tell us what they would do to get America back to work. Joining me to explore this topic are; Heather Boushey, a senior economist at the Center for American Progress where she focuses on job creation and employment; Kevin Hassett, senior fellow and director of economic policy studies at the American Enterprise Institute, and a former senior economist at the Federal Reserve; and Alan Tonelson, research fellow with U.S Business and Industry Council, a national business organization that represents nearly two thousand domestic American companies. The topic this week: Getting America back to work. This is <i>Ideas in Action</i>.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ANNOUNCER:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Funding for <i>Ideas in Action </i>is provided by Investor's Business Daily. Every stock market cycle is led by America's never ending stream of innovative new companies and inventions. Investor's Business Daily helps investors find these new leaders as they emerge. More information is available at Investors.com.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">&nbsp;Nearly 15 million Americans who want a job can't find one according to the Labor Department. About one third of those unemployed have been out of work for more than a year and about two and half million more have given up looking for work all together. An additional nine and half million Americans work part time but want to work full time. During the recession nearly eight million jobs were lost and many analysts say it will take years for the country to return to what we would consider a normal unemployment rate. So what can and should we do to spur job growth. Heather officially the recession is long over, why haven't jobs increased?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well I think there's a couple of things, I mean, first off what does it mean that the off-- that the recession is officially over? What that means is that we're no longer-- our economy is no longer falling off a cliff. It's no longer getting worse. What that doesn't mean is that we're back to where we need to be. We've seen improvement, we've seen jobs being created, we've seen some economic growth so we're sort of on that upswing. But we're still not back to where we want to be. One of the big reasons that we haven't seen jobs is because we haven't seen the growth in investment and the growth of you know firms going out there and seeing that economic demand and saying, 'hey I need to hire some new people.' That's what's going to create jobs, and we're just not there yet. What we really need to see is more demand, more investment, then that's when we'll start to see jobs start to come back in our economy.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Kevin you agree with that analysis?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Yeah. I think Heather pretty much nailed it and in fact I think we need to stipulate up front before you start talking about policy that the experience that we're going through right now is very similar to the experience of every other country that's gone through a financial crisis at least in recorded economic history. Typically it's the case that even a decade after a financial crisis the unemployment rate in the country that's been stricken is about double where it was before the crisis began.&nbsp; That means that eight years from now, if we're typical for a country after financial crisis, we're still going to have unemployment in the sort of eight percent range. And I think that what we need to do, in this show and other places, is think about what are we going to do about that? How can we make it so that we in fact have a better experience than the typical country?&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">So you're saying this is a different kind of recession. It's not like the recession in the-- you know, early 90s or even the one in 2000. This is caused by financial crisis and there's a lot of research now-- Rogoff and Reinhart and--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Exactly.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--Wrote a famous book about this. So that we shouldn't expect to recover all that quickly.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well we could conceivably but it's certainly not the base case and we actually understand the linkage between the financial crisis and slow growth. The biggest thing is that the financial crisis is set off by too much credit. As credit contracts after the crisis then it's a drag on the economy for a long, long time.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Credit meaning companies--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Loans. Making loans-- to firms to buy machines and so on--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I want to pursue this and I'm going to get to each of you but-- so what do you think the solution is? How can we create jobs now? Do we have to just sit around and wait for ten years?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well I think that there are actually a number of solutions that we could pursue and I'm looking forward to talking about these with the rest of the panelists. I think that the main thought that I'd want to lead off the show with is this: that typically after financial crisis you have a decade where you grow about a percent a year less than you're used to, so that means in the U.S we should be looking at two and a half percent growth instead of three and half percent growth. So what we need to do is we need to swing for the fences. We need to consider policies that could on average deliver something like a percent a year of growth for a long, long time. Not something that would necessarily jack up growth just this year. A leading candidate, I believe, is fundamental tax reform, Alan Auerbach, who's a famous democratic economist, and I wrote a book about fundamental tax reform a couple years ago. We said that if we switched towards a consumption tax in the U.S that you could gain about a percent a year of growth over a decade. That's the kind of big change that we need to consider.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">So Kevin says tax reform, which may mean cutting marginal tax rates and other people say increase in government spending but you don't think that either of those two is the right approach.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">It's not so much that they're not the right approaches it's that neither will be sufficient. And the reason has to do with the fact that this is indeed not your grandfather's recession. It's resulting from the fact that we had such a wild spending party in this country for so long we face a massive deleveraging going forward. Meaning we have to reduce our very high and very dangerous debt burdens. More important we have to figure out how to grow while doing that at the same time. That's extremely difficult. What it also means is that the standard relationships between tax cuts, investment increases and growth, and employment, have been greatly weakened if not broken. One big reason is that this economy today exists in a world economy that has-- permeated it with enormous volumes of exports of goods and services. So that often, whatever tool we wind up using, when we stimulate spending we no longer stimulate the same amount of growth and hence the same amount of employment that we used to.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Because we're importing?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">The economy is much more open to imports.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">So what is your big idea? Or what are the big ideas to get things going?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">The big idea-- and I'm not-- I'm certainly not denigrating the need for tax reform, for more spending, especially on public infrastructure which is in such tragic-- tragic disrepair-- but what is urgently needed in order to grow while cutting debts is substituting on a very significant scale what we make at home, goods and services, for what we presently import. And given the fact that consumers must retrench, and we should want them to, and given the fact that there's not a lot more government stimulus that's going to be provided for purely political reasons, that's about the only solid growth option we have left.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Heather, what do you think about that? What Alan's saying is make it harder to bring goods into the country to compete with American made goods. What do you think about that?&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well a couple of things. I mean I do think it's interesting he's-- Alan has pointed out that exports may be the only place where we can see an increase in demand coming from and--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">It's net exports.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Net. Exactly.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Net.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Net. Net exports.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">It's the net.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">You're saying we need to export more or import less?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Relative to imports.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Right.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Relative to imports--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Ok.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">And that that's-- that is a strategy. It's one we have to sort of be thinking about. I want to come back to that in a second because I also want to touch on something that Kevin said which is that, you know, it is true that we're coming in-- that this is a recession that is a fallout of a financial crisis and we know from the research that yes these tend to be deeper more protracted. But I would caution us against having these lower expectations that we can't do anything about it. We've seen other countries deal with this slightly differently; Germany for example had a larger decline in output than we did here in the United States but did not see the increase in unemployment that we saw because they have different labor institutions and practices. So there are things that we could do to get folks back to work. For example, one of the most important things they have is they've allowed folks to cut their hours and get a short term-- a part time benefit from the unemployment system in Germany which then allows them to share the labor a little bit so you don't see the high unemployment and especially the-- the millions out of work that we've seen here in the United States.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--I don't want to interrupt you there but believe it or not Kevin Hassett is in favor of that--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Heather and I know that--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Yes--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--We've talked about that--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">[Laughs]</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">But I think a lot of people would be surprised that you, working for a conservative--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Sure, it's actually an interesting story that-- those who know me know that I used to live in Germany and I speak German and a friend of mine came to me at believe it or not his wedding and he said to me, 'geez the German unemployment rate isn't going up. What's going on with that?' and so I started digging into and calling friends in Berlin and found a program that basically I think of as kind of fractional unemployment insurance. So right now if the firm lays you off then you get unemployment insurance and the only way to get government to sort of play ball with helping a firm reduce cost is to lose the whole worker. In Germany they let you cut five guys 20 percent and they each get 20 percent of their unemployment insurance is basically loosely what they do. And then so firms don't separate people from the workforce and the reason why that's so important is that we see that when somebody's out of the workforce for more than a year it's very hard for them to get back in. It's kind of like ground control to Major Tom, they're not tied to the capsule and they're floating out to space and they get very, very separated because-- both because they're discouraged and because firms will look at you and they'll say, 'well Jim you haven't had a job for two years, you know, what's up with that?' and they'll be nervous about hiring you.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Right. Whereas you would have had 80 percent of a job. What do you think about that Alan?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well what's also very critical to remember about Germany is experiences that to a great extent Germany has exported its way out. In fact Germany's global trade surplus is about 20 percent higher year on year between 2009 and 2010. So Germany, which was a country that many respected observers like Martin Wolf from the Financial Times has accused of exporting too much, saving too much, not consuming enough, they have extricated themselves from a very deep hole, absolutely, by exporting their way out, by doing more of what they had been already doing.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">But isn't that kind of cultural? I mean, you know, the United States is just not an exporting country, I mean it's exporting more than it used to. It's exporting a lot in the services economy. We just did a show on that. But really Americans have never been focused that much on exports.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well, I think in one sense you're right that, I mean, we used to be a country that exported a lot more, but we're also a country that is not sort of taking the time to focus on that as an economic strategy and sort of thought through what does that mean to be making stuff that we're going to send out around the world. I think there's a very important thing-- services are great to export, that's one issue-- but you don't get the kind of positive externalities, to use an econ term, when you have services that you do with manufacturing. With manufacturing you have the technical innovation, but you also have-- so you have all sort of the high tech stuff, but then if you have the actual sort of commercialization making it you can create millions of good jobs here in the United States if you focus on a strategy that encourages that kinds of economic development.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">What kinds of jobs do you think Americans can expect to see increase over the next ten years?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well we know what has been projected to increase over the next ten years. Those are a lot of jobs in services, most of them don't require higher education, they also tend to be jobs in many of the caring sectors-- home help aids, childcare workers, these kinds of jobs. And interestingly these jobs are also currently vastly disproportionally on average jobs that are held by women. So those have been the growth areas for quite some time now and are projected to be sort of moving on into the future. Now, I mean clearly the recession changes to some degree, you know, how we think about that path and what we do moving forward may change that but I think that-- those jobs I think we will continue to see an increase in--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">But Heather isn't it true that when you look at the unemployment figures by education level you find that unemployment is actually quite low among people that have college degrees and higher and people who have less education they're the ones who are suffering the most? So doesn't it make sense that there would be more jobs created at the higher education levels?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well-- that's not actually what we've seen. I mean and that's not actually what's projected but I think that the-- you know it is typically the case that the more education you have the less unemployment folks see. You know these jobs at sort of the lower end of the spectrum you know are the ones that have been more subject to layoffs, you've seen higher job losses, you see sort of more job turn over. I think that-- those are some of the keys there but I don't know that it is that-- yeah.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I want to get to one obvious point that our viewers are kind of wondering about most likely: spending? I mean what about government spending? We had a stimulus plan which some people think worked, some people think didn't work, but at any rate there is sentiment certainly in this country for more government spending. Can't the government create jobs by spending money?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I think there's a couple of things that government can and should continue to do. First off in the Recovery Act we poured a lot of smart money-- and actually before the Recovery during the last year of the Bush Administration into the unemployment insurance system. One of the most important things we can do to keep people with a little money in their pocket when they're out of work but also keep money flowing through our economic system.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">But 99 weeks of unemployment-- isn't there a point at which people begin--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Nobody's talking--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--Begin to say, 'well hold it I'm getting paid not to work plus I could probably find a part time job on the black market and not have to pay taxes.' I know lots of stories like this.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well I think there's two things there. Number one what's going to happen at the-- or what we're looking at is not the folks-- there is this issue of folks getting 99 weeks but there's also the folks needing 27 weeks of benefits and that's something that requires continued action by congress to make sure that folks are getting those benefits after they've been unemployed for at least 6 months and that is where we need to be very concerned. Granted once somebody's been out of work as Kevin said for a year or two they're disattached from the labor market they're losing skills, we need to be focusing on what to do about those long term unemployed--&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Ok but besides unemployment insurance--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Yes--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--Which I think most Americans think is a good idea. What about you know these big public-spending projects-- Alan mentions infrastructure?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I think that that-- that was going to be my second point. I think that that is exactly what where we should be focusing our government dollars right now for a couple of reasons. Number one interest rates are at historic lows, construction costs are low, we got lots of unemployed people, this is the best time for government to go out and spend its dollars effectively on infrastructure. Second reason: as Alan pointed out our infrastructure is in disarray, we've got bridges falling down, we've got roads in disrepair, now is the time to move our economy into the 21<sup>st</sup> century. This helps small American businesses, transport their goods, it helps us get to work. Now is the time to do it. But then third, the other thing we're seeing is that the private sector just isn't investing right now, they are not making the kinds of investments that we need to see. A lot of economists you know, when the economy's booming you don't want to want government to be investing too much because it would crowd out private sector investment, that is the least of our worries right now, there's not-- what we're trying to do is actually to create the confidence of the private sector that America's sort of on an upswing, and that we're going to have the infrastructure to make that happen--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I want to see what Kevin thinks about that-- about more government spending-- private sector's not spending any--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">First on infrastructure, I-- you know, it's correct that the infrastructure is a mess, the American Society of Civil Engineers gives it a D. So there's a lot of stuff to do out there and we're not doing it because when we allocate highway funds or stimulus funds to do something we tend to build a new highway in, you know, in honor of somebody's wife or something. So we need to be smarter--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Because it's more fun--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--It's more fun for the congressman --</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--For more photo ops.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Yeah that's right but it--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--But that's just a general inefficiency-- ok yeah.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVING HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Yeah I was just going to say that I think that the reason why-- a main reason why people aren't investing right now is exactly what Milton Friedman used to write about that people look at one and half trillion dollar deficits and they think geez they're going to have to tax me to get that money and so why should I really load up on new investments going into the future when the U.S is the second highest corporate tax place on Earth, it's about to be the highest because Japan is finally lowering their corporate rate, and we've got these massive deficits, they're going to have to be funded by taxes. I have a friend who told me that he did a calculation where he said you know if U.S firms pay the typical share of the current deficit going forward, the present value of it that they've paid in taxes in the past, then most of them would have a negative book value because of that high liability. So in that kind of a state-- then if we get too aggressive about trying to fix the roads and so on then we're not going to resolve the uncertainty about how we're going to fix this deficit. So I think what we need to do while we're having a tax reform we need to recognize that government spending has to come down, revenues probably have to go up, and we have to create a kind of certain climate so that people have the confidence to invest again.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">So it's sort of a Catch 22 that if government spends a lot of money, private sector's not spending, but the government spends it, people-- you mentioned Milton Friedman-- people understand intuitively that--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">That they're going to have to pay for that.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--That they have to pay for that through taxes and so they're less likely to invest. And so--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">And especially when firms--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--So you're kind of stuck, I mean, there's really not much you can do. You're saying the answer's actually to cut government spending.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I think that we're ready. We're past the point where we need a quarter or two of really high government spending to keep us from falling off a clip and we're at the point where we need to try to fix things that are broken so that we can look ahead for a decade not just for a year and say oh ok I can be confident again.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">And you're skeptical about government spending as well?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I'm skeptical about government spending in the abstract. I'm certainly strongly in favor of more government infrastructure spending because again the needs today are so great; every time I drive to work it's like a-- life threatening activity--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">So you're saying-- right, you're saying we need to fix the bridges anyway, even if we didn't have this problem--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">But there's-- but there are added benefits. For example, most construction materials are made here still, it's changing slightly, but it's still largely true. Much of the steel that is used in roads and bridges etc., is made here, not enough of it and there should be more, but that creates a tremendous multiplier effect too. Plus the-- jobs not only from installing this stuff, but from actually making it. The problem with this uncertainty argument is that-- and I can tell you I work with nearly two thousand companies, they're mainly small to medium size companies, they're very entrepreneurial, they love to make money and they hate the government and they hate the health care plan, ok? They are terribly worried that they're-- exactly going to have to pay for that health care plan. But the main reason they cite to me for not buying this or that new piece of machinery or adding onto the factory or hiring new workers is they don't have enough orders. And they see no prospect of a significant number of orders coming on a stream--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--Why don't they-- maybe I should ask Heather this question? You know the rest-- there are parts of the rest of the world who are doing really, really well. I mean you know the Chinese are growing at eight percent, the Brazilians are growing at I don't know six percent, the Indians are growing at eight percent, and the United States can sell things to the Indians, to the Brazilians, to these countries that are doing well. So they may not have the orders in the United States, which is, obviously we've got some problems, but if you buy Alan's argument and we kind of shut down our own borders then other countries are going to shut down theirs. How do you feel about this whole trade solution?&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well I think that the key here is that we need customers here in the United States. I mean we're-- we can-- you know we need to sort of create--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Sure but it's a big world. I mean the United States is three million people; the world is 6 billion people, why do we have this fetish about just selling to Americans?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well I think you need--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I'll let Alan answer.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Yeah. Alan's like of the--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I know. But why don't you-- but you should-- no I-- why don't you answer the question and then we'll go to Alan.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I think you need to do both. I mean certainly I think you need to focus on-- you know what can policy makers do to encourage U.S exports, what can we do to make sure that we're creating the kinds of things we can export, and what kinds of foreign policy and dollar policy are we pursuing that makes our exports competitive overseas. And I think all of those are things you know folks here in Washington are talking about and I think that's certainly a place to think about. But there's also this question of you know here in the United States because you aren't creating the kinds of jobs here at home, you're not creating the demand here at home for the goods and services that creates the incentive for firms, especially the small and medium sized firms for whom there maybe a large--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Ok, we're getting back to the main question which is how do you create jobs? I mean-- what are the-- where do they come from? Can you create jobs without having decent economic growth? I mean you know we have-- Heather started off by talking about well the recession may be over but we're still not growing very much, well you know what we actually are growing. We're growing two or three percent, I mean we're growing a little bit. Why aren't we creating jobs?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Well we're growing at 1.7 percent rate lately.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Yeah. It's not very much.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">1.7 percent-- after trillions of dollars of stimulus.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Year on year I think it's-- I'm not happy with it either--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ALAN TONELSON:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">That's the annual rate--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">But we are growing, we're not in a recession, why aren't-- is there-- why aren't we creating jobs? And how do we create them?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">This is-- I want to circle back again because it's one of those moments where at least on economics Heather and I don't always agree but on this one it's very maddening that Washington hasn't stepped up and copied the Germans a little bit and I just want to put it in perspective; you know the government can't create jobs, ok, the private sector is really-- I mean they can give people jobs-- but mostly the private sector is the engine of job growth but the-- and the private sector is doing it-- it's creating what four million jobs a month and destroying four million jobs a month and so the net is about zero.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Right. This is a very important point. Can you just put a finer point on this? People don't-- I don't most people understand--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">And so when you see that we created 100 thousand jobs the last month and it's not because you know everybody stayed in place and then there was 100 thousand new jobs because they built a building over there-- what happened was that if we created 100 thousand jobs in a typical month maybe four million jobs were created, new jobs because they put in a new donut shop in your town and so on, and 3.9 million jobs were destroyed because some-- some you know factory cut back or again a donut shop closed. And so the net number of 100 thousand is the sort of job creation number that matters for unemployment because there's people sitting unemployed and it's the net number that gets them employed. We can drive the net number up by slowing job destruction because the underlying flows are so enormous. There's millions and millions of jobs being created and destroyed every month. Government shouldn't think ok I'm going to go out and create jobs because the government isn't really going to do that, but the government can change it's policies so that job destruction is slowed. If you could cut job destruction by about ten percent with a work sharing program like the Germans have-- and I think that's a reasonable expectation of what you might be able to accomplish-- that's 400 thousand jobs a month. That would be five million jobs in a year, you know and that's not the whole problem but it's a big step forward.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Yeah. Heather.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">And, you know, I think one of the-- I think that-- this is the right time for that policy. We've seen-- we've seen you know millions of jobs destroyed during this recession and I think some folks were sort of thinking oh this is going to be over we're not really going to have to think through this policy but now is the right time. We're seeing the growth in the labor market slowing, we're not-- we're seeing you know sort of this challenge so I just want to underscore that I think this is the right time for this--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--Let me be sure I understand this policy. I mean a lot of people kind of made fun of the French when they said well you-- nobody can work more than 40 hours, they're only going to work 35 hours and that way we're going to create jobs-- I thought that was called the "Lump of Labor" fallacy back when I went to-- when I was studying economics. How is it that you can cut people's-- the amount of time that people work and yet suddenly create--?</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Can I ask another-- cause I-- I was just going to say that-- it's much different because we're not telling them they have to do it.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Right.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">So what's happening is that there's always some guys creating jobs, some guys destroying jobs, and right now government policy tells the people who are destroying jobs; well you've got two choices, one is that you can lay somebody off in which case the government will help make it not so bad for them, and of course firms want to do that, they like they're workers typically and it says or you could reduce people's hours a little bit in which case the government's not going to help.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">I see so one they have a choice. Either kind of fractional unemployment or you---</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">KEVIN HASSETT:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--And the government policy is biased towards the wrong answer right now. And we need to fix that.</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">--Somebody leaves the workplace. Right. Right answer is fractional--</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">HEATHER BOUSHEY:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">We should note that there are you know, there's 17 states that allow firms to do this but we could be doing a lot more to get the other states to do it, we could be doing a lot more to make it easier for states, for employers in these states to apply for these programs to get this short term compensation. So there's a lot that policy makers could do on this.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">JIM GLASSMAN:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">Heather unfortunately we're going to have to stop you right there; we've run out of time. But we'll continue our conversation on how to get Americans back to work on our next program. And before we go I want to remind viewers that you can catch <i>Ideas in Action</i> whenever and wherever you choose. To watch complete shows just go to our website, ideasinactiontv.com or download a podcast from the iTunes store. And that's it for this week's <i>Ideas in Action</i>. I'm Jim Glassman, thanks for watching.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">ANNOUNCER:</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">For more information visit us at ideasinactiontv.com. Funding for <i>Ideas in Action</i> is provided by Investor's Business Daily. Every stock market cycle is led by America's never ending stream of innovative new companies and inventions. Investor's Business Daily helps investors find these new leaders as they emerge. More information is available at investors.com. This program is a production of Grace Creek Media and the George W. Bush Institute, which are solely responsible for its content.&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px"><br /></p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'; min-height: 15.0px">&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">**END OF AUDIO**</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Times New Roman'">***END OF TRANSCRIPT***</p></blockquote>






































































































































































































































































































































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    </content>
</entry>

<entry>
    <title>Net Neutrality: Who Should Control the Internet? - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/02/net-neutrality.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42310</id>

    <published>2013-02-21T16:20:58Z</published>
    <updated>2013-02-21T19:17:33Z</updated>

    <summary><![CDATA[Over the past decade, the Internet has expanded enormously, changing the lives of Americans. Unlike&nbsp;other forms of communication, like telephones and television, the Internet has expanded largely without&nbsp;regulation. But that may be changing. As the use of videos increase, the...]]></summary>
    <author>
        <name>Emily Johnson</name>
        
    </author>
    
        <category term="Episode 42" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="accessproviders" label="Access Providers" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="capitalism" label="Capitalism" scheme="http://www.sixapart.com/ns/types#tag" />
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        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">Over the past decade, the Internet has expanded enormously, changing the lives of Americans. Unlike&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">other forms of communication, like telephones and television, the Internet has expanded largely without&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">regulation. But that may be changing. As the use of videos increase, the companies that provide the&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">pipelines for Internet access may be running out of space. Many people and businesses worry that&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">these companies will begin to limit their access to the Internet in a way it's never been limited before.&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">How to resolve this issue is a high-stakes Washington question, with billions of dollars and some very&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">important principles - like free speech and free enterprise - at stake.

</blockquote><div class="zemanta-pixie" style="margin-top:10px;height:15px"><br /><span class="zem-script more-related pretty-attribution"><script type="text/javascript" src="http://static.zemanta.com/readside/loader.js" defer="defer"></script></span></div>]]>
        <![CDATA[<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN:</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Welcome to <i>Ideas in Action</i> a television series about ideas and their consequences, I'm Jim Glassman. This week: Net Neutrality. Who should control the Internet? Unlike telephones, television and other forms of communication, the Internet has expanded largely without regulation. But that maybe changing. Joining me to explore that topic are Mike McCurry, he's co-chair of <i>Arts+Labs</i> a coalition of technology and communications companies; Craig Aaron, he's the managing director of <i>Free Press</i> where he leads their program's advocacy and public education war; and Cecilia Kang, she is the national technology reporter for the <i>Washington Post</i>. The topic this week: Net Neutrality, can the net really be neutral? This is <i>Ideas in Action.&nbsp;</i></p>
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<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN:</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Over the past decade the Internet has grown enormously. Changing the lives of Americans. Companies that provide the pipelines for Internet access maybe running out of space and bandwidth on their networks as the use of Internet video increases. Many people and businesses now worry that these companies will limit their access to the Internet in a way that it's never been limited before. How to resolve this issue is a high stakes Washington question with billions of dollars and some very important principles like free speech and free enterprise at stake. Craig what's a brief definition of "net neutrality?"</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well, net neutrality is the fundamental principle that's been part of the Internet since it's inception and basically it says when you go online you can go wherever you want, do whatever you want, download whatever you want, and it's not up to your phone or cable company to decide which websites work and which don't. Very simply, net neutrality means no discrimination.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">So Mike, so what's wrong with that?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Nothing. I think that most people would agree that's the principle --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">-- We can all go home?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">-- We can all go home now. The question is how do you enforce those principles. And I think that's where the debate begins - it's what's the role of government, what's the role of the private sector, what do companies need to do to have in place so that they can get some return on the investment they make to make all these wonderful things happen that we want to see happen on the Internet? That's where the debate gets a little more tricky.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">So Cecilia, what is the argument that's going on in Washington now from kind of a regulatory point of view?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Sure. Well on net neutrality things have become more complicated particularly as the Internet has become available on more platforms. So more questions emerge. Should net neutrality and the idea of a federal regulatory body imposing rules also apply to your cell phone and what applications you can download. What is the role of the federal government at all in enforcing rules or creating rules on how the next big communications medium for our generation going forward, which is the Internet, what should the role of the federal government be? And there's -- these are really tricky questions. The details can mean a lot. Not only for the consumer but also for businesses, they have a lot of money at stake.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Craig, you would agree that there's more and more use of bandwidth, the stuff on which the Internet travels, and at some point -- it becomes quite limited -- it's a scarce commodity. It's not like everybody can use it for whatever they want. So somebody's got to make a decision about how this scarce commodity is allocated and what about the notion that the companies who actually own it should be able to have a say in making those decisions?&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well I think the problem is companies abusing their role. We have companies that bring that Internet pipe into your home and certainly bandwidth maybe at certain times is scarce but we're seeing, you know, every few years a lot more bandwidth and a lot more usage but so far our bandwidth has been able to meet that usage. So what I'd like to see encouraged is investment in that bandwidth.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">&nbsp;That does -- we don't want to see companies trying to profit from that scarcity. So Verizon can't decide, 'Well I'm going to block Internet phone calls, I've decided that that's too much bandwidth,' and Comcast can't say, 'Well here comes a new independent video service well we've decided we're going to block that because, well, it's too much traffic and it just happens to compete with what we're doing,' So --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">-- And are they doing that now?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well there are --certainly have been examples. For example, Comcast was caught interfering with lawful file sharing traffic called Bit Torrent. They were actually caught blocking those transmissions, actually impersonating their own customers to disconnect people who were trying to share things in the public domain.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">And -- but what happened in that case?&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well you're --you're going to be hard pressed to find other instances. Now Bit Torrent is also the source of a lot of illegal trafficking, which is one of the things clogging the Internet. But I want to go back to that fundamental point. Is there really any harm being done here? Is there any real problem that requires the federal government to step in in an unprecedented way to begin to regulate traffic? So the question is, if we're going to shape traffic you know, who should be in charge of running that? Can the federal government really make those kinds of decisions? I don't think it's capable of doing that.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">What the federal government can do is they can ensure that consumers are in charge of those decisions and that consumers can decide if they think certain kinds of things should be prioritized or others shouldn't and that's where that should rest.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">I fully agree.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">-- But we need the watchdog on the beat to hold these companies accountable.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">I fully agree, but shouldn't a consumer be willing to sort of say, 'Look I want to pay for a better quality of service. I care about what kind of videos I get or I do a lot of gaming and I do that kind of work on the Internet. I don't just use it to go to websites and send email. So why shouldn't I be allowed as a consumer to pay a premium to get a better quality of service like that?' What's wrong with that?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">I think you can already do that as a consumer and you will continue to be able to do it --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">-- Well actually</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG ARRON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">-- The problem becomes</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">-- That would not be legal [OVERTALK]</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">--That's not true.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">I want to bring Cecilia into this just let me add one thing to what --to what Mike was saying. What about the providers themselves? In other words, if you are a company like let's say Netflix, and you're using gigantic amounts of bandwidth, doesn't it make sense that you might have to pay more for that?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Right. It does and you do. Google's monthly Internet bill, or Netflix's monthly Internet bill isn't sixty dollars a month. You know they've got huge servers and they're paying a lot of money to the broadband providers to get their things online. And we also have to keep in mind why do we go online? We go online because of all of the great content that's out there, all of the amazing choices. Because once you're online you can go wherever you want.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">That's what we're trying to preserve. And I think why we need the FCC, why we need the government to be involved, is because every CEO of all of the major internet service providers have been very clear that given the opportunity they will start building a fast lane for their own products and services and leaving the rest of us on that cyber equivalent of a winding dirt road.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Ok but before we get too deeply into the weeds I'm going to turn to Cecilia to describe for us who the stakeholders are here, we've talked about providers and consumers and the FCC. What's going on here and what's the argument about?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">I think you've named actually --you touched on the big ones. This is --the argument actually touches --is at the intersection of consumer use and issues, it's at the intersection of --communications and internet content providers so publishers like <i>The Washington Post</i>, like others, who are online they all have a stake in it. Those who are most actively involved in Washington I would probably outline them as the carriers, the ones that are providing --that you provide your --you pay your monthly service fee to, that would be cable provider, a telecomm provider --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">--Comcast</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">A Comcast, an AT&amp;T, a Verizon, a satellite provider, wireless provider. So they by and large, most of those providers say that they do not think that the federal government should impose or enforce principles -- that are already at play. Then there are some of the content companies. Those who are applications, those who rise above, who ride on the network. We call these the edge companies. That would include Google, and Skype, and Facebook, and Amazon. Some of the brand name websites that you visit and the applications you download onto your phones. They --most of those companies believe that there is a role for the federal government. The role for the FCC to really be a watch dog in this category. Then there are consumer groups like Craig's who are speaking for the public who believe that if they weren't actually involved and part of the dialogue then --an example like Comcast and the blocking of Bit Torrent would never come to light.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">And in the Bit Torrent case of course that went to court and Comcast won that case. The FCC wants, it appears anyway, wants more authority to regulate, some people would say regulate the Internet, certainly regulate the Internet carriers. Isn't that correct? And they want to be able to regulate them the way that they regulate the phone companies as though they were so called common carriers.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">That's right. So what's happening is that particular decision --it all comes back to Comcast and Bit Torrent often times when this argument right now in that last March a federal appeals court decided that the FCC, in sanctioning Comcast they took up this case, a complaint, that in sanctioning they faced --the federal appeals court said that the FCC overstepped its authority.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">It made a decision on broadband Internet service and it had questionable authority to do so. Which then presented the bigger problem that this current FCC chairman who wants to be the chairman of broadband services, the next big medium of communications, all of his plans were sort of thrown into question. Not all, but most of those plans.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Right and so he wants to regulate --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Yes</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">--The Internet. Which has basically never been regulated in the way that phone companies have --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">--Have been. To some extent, maybe I'm simplifying. And there's a question about whether he can do --there's a legal question about whether he can do it and meanwhile congress has stepped in, they're --Henry Waxman has a bill that would kind of try to resolve this issue.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Right. Well the Internet's a big thing so I would be careful to say that he wants to regulate the Internet. I think he wants to regulate the communications services. &nbsp; The Federal Communications Service wants to --Commission, wants to regulate the communications medium, which is broadband Internet services. So as to --they don't want to regulate Google that resides on these networks, nor do they want to regulate Facebook --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">But they want to tell, just quickly, and then I want to get to Mike, they want to tell the carriers essentially what they can charge, right? Or how --how they can prioritize the people who use their networks. Is that correct?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">They want to -- they definitely want to regulate how traffic is managed on networks, not --as to whether they actually said explicitly --they don't want to regulate prices and they don't want regulate rates and --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">But how traffic is managed. Ok so what's wrong with that?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">These companies that want to offer services that they need to get some return on in order to satisfy their investors, you know they're sitting there trying to make very complicated decisions about what the future of the internet is going to look like, and having the specter of the federal government playing an extraordinary role here is a real problem.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">And you mentioned, Craig you mentioned early on, investment. I mean isn't that really a key to all this? How do you encou --you know maybe we haven't run out of bandwidth yet but we're probably gonna. And so these networks need to be continually renewed, who's going to do that?&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well, first of all, let's not cry too much over how much money the phone and cable companies are making, they're doing quite well for themselves. Second of all, if your concern is investment then I think what you would want is an even playing field for everyone where we're actually encouraging competition and new players to enter the field. That's what net neutrality has enabled.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Net neutrality is not a new thing. Net neutrality has been the rules of the road since the Internet started and it's what ensures all that innovation gets pushed out to the edges. So if you're a guy out there in a garage and you've got a good idea you have the opportunity to be that next Google because thanks to net neutrality when you can get online if you've got the best idea, if you've got the best product, you can find your audience. I think the other thing to keep in mind, a little historical lesson in terms of what's going on in the FCC is that they gave up their own authority.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">&nbsp;Broadband Internet had always been regulated under title II of the communications act. During the Bush Administration they decided to change the way that the Internet was going to be regulated. They changed how it was treated under the law. That was a case that made it all the way to the Supreme Court. The Supreme Court ruled, 'hey it's up to the FCC to decide.'</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Just one point here. I think this is a really important part of the debate because Craig said something interesting. He says the innovation, the creativity, you know the economic dynamism of the Internet is out there on the edge. He used that phrase. The companies that I work with which are the AT&amp;Ts, and the Verizons, and the companies that carry that data, they want to create that innovation and creativity inside the pipes. I think part of the question here is do you want big fat dumb pipes that carry all this data or do you want sophistication, technology, smart people designing things that will help shape this traffic that gives the consumer a better experience.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">If you want smart pipes then someone's going to have to have paid for that kind of investment. That's where the companies then enter the equation and they want to develop new services, they want to develop products that they can sell to their consumers. And I think the standard, maybe what we need to look for here, is no one should be harmed. The idea that someone gets relegated to some dirt road on the internet is not a fair characterization because what these companies would say is, 'look we're going to provide you a better experience, we'll maybe offer a premium to people who want a guaranteed quality of service, but we're not going to harm anyone in that process.' So if there's no harm to the consumer why not let these companies make those kinds of investments, you know make those kinds of products available. &nbsp; &nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">You do that in --there are many other industries obviously where there's an example of that. You can either take a nonstop flight or a flight that stops somewhere. As long as you don't degrade the service as Mike says, what's wrong with that? They offer a special service for companies that need super fast, so Google says, 'ok I'll pay that,' --it's kind of the deal they made with Verizon -- [OVERTALK] recently, right? &nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">That is exactly the problem. Is that --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">--Why is that a problem?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">The only people who are going to be able to take advantage of these exclusive deals are the biggest companies right now. And if you're somebody who happens to be a direct competitor with a Comcast or an AT&amp;T or a Verizon, they're never going to offer you that spot in the fast lane. They have no interest in doing so and therefore they're taking advantage of their control of the pipes --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">--I'm not sure why they wouldn't have that interest --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">--To disadvantage these future competitors.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">--Why wouldn't they have their interest? I mean, it's just like a consumer right now can get either get fast broadband or regular broadband.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">But the difference is that the consumer is making those decisions and there's no discrimination.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">But there is --I want to get to Cecilia --But there is competition among these companies. Right? So one of them says, 'well you know' --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well no there isn't --That's another big problem, which is that for %96 --</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">[OVERTALK] Well there is in my neighborhood I can choose--</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">You have two choices. The phone company or the cable company and that's true for %96 of Americans for broadband. If you don't like those choices they both said, 'If the FCC doesn't stop us we're going to discriminate, we're going to interfere.' So that leaves consumers no where else to turn which is exactly why they need the FCC to provide these very light rules of the road to protect all consumers, to protect all the competitors, and make sure the internet continues to prosper and continues to develop in the way that it has. &nbsp; &nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well, first of all, putting the Internet under Title II, I don't want to get technical here but that is not a light touch regulation. That is really kind of the thermo nuclear bomb of regulation. It is exactly the kind of thing that would allow some future FCC to come in and regulate prices and regulate aspects of the Internet that are not broken.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">The other real problem is here; what is the problem that we're trying to solve using the tool of government here? Because there really isn't a problem. You're projecting that maybe some things are going to happen in the future-- I'm a democrat I believe in using the tool of government wisely and prudently, but your handing a job to the government here that the government's never going to be able to do. The FCC couldn't possibly keep pace with the change in technology that's going to happen.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Cecilia, what are other stakeholders here? What are they saying?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Stakeholders at this point have really, you hear this quite a bit, come a little bit closer. You see Google, for example, as one of those Internet content companies I described, those edge providers, come closer with agreement with Verizon to narrow down rules where they can both make some compromises. Google and Verizon both got a lot of heat for this agreement that they made in that they excluded any sort of rules or regulation over or-- the ability of a watchdog to enforce rules over your cell phone, for example.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">That's a big deal because everything is heading towards wireless as this point. The idea of that Google could perhaps, and they say they won't but Google could perhaps cut a deal with Verizon to you know be on this fast lane that Craig and Mike are describing, doesn't sit well for maybe other competitors of Google's. So I think the parties of constituents are sort of coming closer. But in honesty and I'd love to hear your point of this-- your thoughts on this, it's difficult to see the FCC today enforcing rules, creating rules-- it's difficult to see congress doing that, given the house turning-- and it's difficult for the FCC because they would probably have to reclassify what Mike just described which is something that's faced a lot of resistance so--</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Just really quickly, what is reclassifying? Just so everyone knows.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Reclassifying is, just as you described actually, making broadband a telecommunication service, a common carrier service and what frightens Mike and his clients and his constituents is the idea that ok you may promise to classify us as a common carrier telecommunication service, and have lots of different rules under us, and you may promise to repeal a lot of those rules, but who's to say that some of those rules will actually get repealed or won't be put back into place or, you know, what have you. So that's what frightens-- it feels like it's straight under the FCC's jurisdiction and in this field that's becoming-- it's fast moving and changing. Though folks like Craig and other constituents will say that's precisely why, because the broadband Internet's become so important-- why it should be classified. &nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">So let me-- there's another thing that's changing here as well. President Obama got elected with I think a certain amount of obligation to people like you toward net neutrality. And yet there's a big problem with the economy right now. And, I don't know, the people in the administration are saying this but certainly there's a lot of concern that investment in fact will slow down or will stop. It'll hurt jobs. Isn't that one of the reasons that, it appears anyway, the FCC and maybe even the administration is going slow on this.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well President Obama did promise to take a back seat to no one on net neutrality. Over a year ago, chairman Janokowski gave a big speech at the Brookings Institution promising to deliver on the President's pledge and it hasn't happened yet. But I think all of these concerns about how net neutrality is going to impact the economy and jobs have been drummed up by folks like Mike who are trying to sew fear and uncertainty into this debate. What we've seen is-- I can't think of a better economic engine than the Internet. An Internet that has largely operated under net neutrality protections since its start, or the principle of net neutrality. We want to make sure that that continues. So if your concern is investment, your concern is new jobs, your concern is new businesses, net neutrality is what we should be doing right now.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Mike, what would you accept? Or what would the carriers accept as far as the kinds of rules or agreements that could be made about access.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well, look, I can't-- obviously I can't negotiate on their behalf here but I think as a matter of principle they would take a lot of what you've said about the principles of net neutrality that have been in place. You know, there shouldn't be active degrading of someone's experience on the Internet, that everyone ought to have access to the content that they want to get to, they ought to be able to use devices that they want to use on the Internet.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">I think the question is how do you enforce that and how do you regulate that? And I think you were right that common sense was moving this in the direction where people were going to basically agree to a compromise. There are some outliers in the debate in which I would frankly put Craig's group in that outlier group that are being adamant and saying, 'No, the chairman has to go ahead and pull the trigger on this really heavy handed approach to using the tool of government.'</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">What about the issue that Craig raised early on as far as discrimination is concerned? Say Verizon is in the business of selling movie downloads and they put their own service in a superior position to-- a competitor like Netflix? Is that fair?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">I think--</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">I mean should that be prohibited by law?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">I think that has to be part of the conversation. What is the nature of exclusivity? I think this is the real question. Can you exclusively put services on your network and deny other people access. I think there is probably a place where people would agree that-- no that should not be allowed. That's something that the FCC ought to be vigilant about and ought to regulate. And I'm not speaking; believe me, not speaking for large parts of the industry that would have an issue with that. But I think there is a common sense place that you could get to.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">So let me ask Craig. There are problems with reclassification-- it could be a lawsuit, it's, you know, it's maybe difficult to do politically, what about this idea that Henry Waxman has where he's brought the parties together, I think anyway, and come up with some kind of a bill, and may not be his bill, but can this be settled by law? Rather than by a regulatory fiat?&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well I think that congress definitely has a role to play here. I mean Henry Waxman has not introduced any legislation. There were a lot of discussions of a bill that was apparently circulating in the House of Representatives. I think the question becomes what's in that bill and, you know, for now Internet users are unprotected. So the FCC I think has the responsibility to protect the public, to establish the rules of road, the certainly have the power.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">If congress wants to take a more deliberative approach, if they want to go back and look at the laws, I think there's a place for congress as well. But the responsibility right now rests with the FCC and if in the next congress or the congress after that they want to get serious about looking at updating the laws or Telecommunications Act, I think they absolutely should. What I don't think they should be trying to do is rushing a sort of last minute forced compromise that potentially leaves the Internet in worse shape, leaves wireless Internet unprotected, and really strips the FCC of their rule making authority. I think that would be a grave mistake by the congress and really a mis--something they shouldn't do.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Let's go around the table and just-- I'd like to hear what you think about how this is going to be resolved.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">It really rests back to the FCC-- it goes back to the FCC, like Craig was just saying. So if--</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">So will the chairman of the FCC push for reclassification?</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECEILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">If you take him by his word then I guess so. As to when it is or whether he, you know, can do it in the near months or maybe in his term, is another question.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">MIKE MCCURRY</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">You know the President has to start looking ahead to 2012 when he's going to run for reelection. Part of the criticism, part of the danger he faces, particularly among independents in the electorate, is that the government seems to be overreaching, trying to do too much. You know I think the admonition of my President that I worked for, Bill Clinton, at the era of big government is over is a useful one. But I think it would be far better for congress to act, for congress to give the authority to the FCC to do what it should and should not do and make that clear and then move on so we can deal with some of the real issues-- which the real issues are how do we get more broadband out to the people who don't currently have it and how do we make this great content more accessible to the American people.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Craig.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well I'm not quite so hopeful that congress can get together and put together legislation that would pass or that would protect consumers. I think the ball very clearly rests with the chairman of the FCC. He's been looking at this for almost the entire length of his term. There are literally thousands and thousands of pages of comments. What we need is a decision. What we need is action and leadership from the chairman of the FCC. It's really up to him to bring this to a close and make sure that the free and open Internet stays that way.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">But then that itself might not end things because--</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Well you never know. &nbsp; &nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">&nbsp;It could then head to the courts--</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CRAIG AARON</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">If he does it I won't sue if Mike doesn't sue.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Ok on that note--</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">CECILIA KANG</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">You head it hear.</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">JIM GLASSMAN</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">Thank you Craig, and thank you Cecilia, and thank you Mike. Before we go I want to remind viewers that you can catch <i>Ideas in Action</i> whenever and wherever you choose. To watch complete shows just go to our website, ideasinactiontv.com or download a podcast from the iTunes store. That's it for this week's <i>Ideas in Action</i>. I'm Jim Glassman, thanks for watching.&nbsp; &nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">ANNOUNCER:</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">For more information visit us at ideasinactiontv.com. Funding for <i>Ideas in Action</i> is provided by Investor's Business Daily. Every stock market cycle is led by America's never ending stream of innovative new companies and inventions. Investor's Business Daily helps investors find these new leaders as they emerge. More information is available at Investors.com. This program is a production of Grace Creek Media and the George W. Bush Institute, which are solely responsible for its content.&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233; min-height: 14.0px"><br /></p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">** END OF AUDIO **</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">*** END OF TRANSCRIPT ***</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233; min-height: 14.0px"><br /></p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">&nbsp;</p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233; min-height: 14.0px"><br /></p>
<p style="margin: 0.0px 0.0px 0.0px 72.0px; text-indent: 1.0px; font: 12.0px 'Courier New'; color: #333233">&nbsp;</p><div><br /></div>

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    </content>
</entry>

<entry>
    <title>Venezuela: Democracy on the Edge - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/02/venezuela-democracy-on-the-edge.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42297</id>

    <published>2013-02-14T21:09:36Z</published>
    <updated>2013-02-21T15:44:07Z</updated>

    <summary><![CDATA[He has taken a struggling democracy and slowly consolidated his hold on power, nationalizing key industries such as&nbsp;oil and food distribution.&nbsp; Tyrant, Dictator, Socialist Hero; whatever you call him, Hugo Chavez is committed to keeping&nbsp;a tight rein on his power...]]></summary>
    <author>
        <name>Emily Johnson</name>
        
    </author>
    
        <category term="Episode 41" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="democracy" label="Democracy" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="europeanunion" label="European Union" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="hugochavez" label="Hugo Chavez" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="hugochávez" label="Hugo Chávez" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="legislature" label="Legislature" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="politics" label="Politics" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="unitedstates" label="United States" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="venezuela" label="Venezuela" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.ideasinactiontv.com/episodes/">
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal Calibri; ">He has taken a struggling democracy and slowly consolidated his hold on power, nationalizing key industries such as&nbsp;</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal Calibri; ">oil and food distribution.&nbsp; Tyrant, Dictator, Socialist Hero; whatever you call him, Hugo Chavez is committed to keeping&nbsp;</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal Calibri; ">a tight rein on his power and those who oppose him.&nbsp; And now he has stated a commitment to developing nuclear&nbsp;</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal Calibri; ">capabilities. What do his policies mean for U.S. foreign policy?</p></blockquote>

<div class="zemanta-pixie" style="margin-top:10px;height:15px"><br /><span class="zem-script more-related pretty-attribution"><script type="text/javascript" src="http://static.zemanta.com/readside/loader.js" defer="defer"></script></span></div>]]>
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:00:01:00<span class="Apple-tab-span" style="white-space:pre">	</span>Welcome to <i>Ideas in Action</i>, a television series about ideas and their consequences.&nbsp; I'm Jim Glassman.&nbsp; Venezuela's president has taken a struggling democracy and slowly consolidated his hold on power, nationalizing key industries such as oil and food distribution.&nbsp; Tyrant.&nbsp; Dictator.&nbsp; Socialist hero.&nbsp; Whatever you call him, Hugo Chavez is trying to keep a grip on politics in Venezuela and creating real problems for U.S. policy in Latin America.&nbsp; But the man some people call "President for Life" may be losing the support of his people.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:00:36:00<span class="Apple-tab-span" style="white-space:pre">	</span>Joining me to explore this topic are Carlos Ponce, a fellow at the National Endowment for Democracy who served as the Secretary of Venezuela's National Human Rights Commission.&nbsp; Mark Weisbrot, an economist and co-director of The Center for Economic and Policy Research.&nbsp; He co-wrote Oliver Stone's documentary about Hugo Chavez, <i>South of the Border</i>.&nbsp; And Roger Noriega, former Assistant Secretary of State for Western Hemisphere Affairs.&nbsp; He currently coordinates the American Enterprise Institute's program on Latin America.&nbsp; The topic this week, Venezuela:&nbsp; How do you solve a problem like Hugo?&nbsp; This is <i>Ideas in Action</i>.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:01:18:00<span class="Apple-tab-span" style="white-space:pre">		</span>(MUSIC)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:01:33:00<span class="Apple-tab-span" style="white-space:pre">	</span>Funding for <i>Ideas in Action</i> is provided by <i>Investor's Business Daily</i>.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; <i>Investor's Business Daily</i> helps investors find these new leaders as they emerge.&nbsp; More information is available at investors.com.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:01:52:00<span class="Apple-tab-span" style="white-space:pre">	</span>Nearly ten percent of the U.S.'s oil is supplied by Venezuela.&nbsp; Yet, its president, Hugo Chavez has been a thorn in the side of both the Obama and Bush administrations.&nbsp; He increased government control of industries from oil to travel, seizing millions of dollars in assets from American companies like Hilton and Exxon.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:02:11:00<span class="Apple-tab-span" style="white-space:pre">	</span>His self-proclaimed socialist revolution alienates the capitalist world and embraces rogue states like Iran and North Korea.&nbsp; He has championed domestic programs for the poor but his policies have resulted in a 30 percent annual inflation rate.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:02:27:00<span class="Apple-tab-span" style="white-space:pre">	</span>Polls show that almost half of the Venezuelan people oppose him.&nbsp; And in the September 2020 elections, opposition candidates captured more than a third of the National Assembly.&nbsp; Carlos, what does this election mean?&nbsp; A third of the National Assembly captured by the opposition.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:02:45:00<span class="Apple-tab-span" style="white-space:pre">	</span>The opposition is getting better and better.&nbsp; They have been improving from an opposition that took for granted that Chavez was somebody who they can control-- when he won almost 11 years ago, to-- try-- nationalist strike.&nbsp; Try a coup d'état.&nbsp; Try failures.&nbsp; Try-- try-- even-- even not to participate in the last el-- in the-- past election for the Congress.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:03:10:00<span class="Apple-tab-span" style="white-space:pre">	</span>So, now the opposition has gained a more and more coherent, kind of, approach.&nbsp; They believe that it's failures of Chavez in terms of the government, and also winnings in terms of the opposition becoming more and more democratic for it.&nbsp; And this means that all the game has been changed.&nbsp; Now, Chavez needs to improve his way of government or to step aside-- in terms of-- of power.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:03:33:00<span class="Apple-tab-span" style="white-space:pre">	</span>What about that, Mark?&nbsp; Is Chavez losing power?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:03:36:00<span class="Apple-tab-span" style="white-space:pre">	</span>I don't think that one third of the Assembly is really that-- a gain.&nbsp; They could have had that in 2005-- according to the polls before that.&nbsp; That was the last legislative--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:03:45:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:03:46:00<span class="Apple-tab-span" style="white-space:pre">	</span>-- But they boycotted the election.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:03:47:00<span class="Apple-tab-span" style="white-space:pre">	</span>They boycotted the election for no real reason.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:03:48:00<span class="Apple-tab-span" style="white-space:pre">	</span>So, you don't think that he's-- hi-- that his-- favorability, his support is declining--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:03:52:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:03:53:00<span class="Apple-tab-span" style="white-space:pre">	</span>--Well, just like, you know, President Obama declined-- from-- 68 percent approval to 45 percent today-- you know, 68 percent-- last year.&nbsp; Chavez has declined similarly.&nbsp; When there's a recession, the opposition gains.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:04:07:00<span class="Apple-tab-span" style="white-space:pre">	</span>But does this mean he's going to have less power?&nbsp; He doesn't have a super majority, as he did-- he had a two-third majority in the legislature.&nbsp; He won't have that.&nbsp; Does that mean he's going to lose some power?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:04:16:00<span class="Apple-tab-span" style="white-space:pre">	</span>Well, sure.&nbsp; But I mean, that's how democracy works.&nbsp; I mean, they could have-- like I said, they could have had this power five years ago.&nbsp; They chose instead to pursue-- a strategy of trying to overthrow the government.&nbsp; And now they're participating.&nbsp; And I think that's-- an advance for democracy in Venezuela.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:04:33:00<span class="Apple-tab-span" style="white-space:pre">	</span>What about that Roger?&nbsp; Chavez's supporters say that, you know, this was a fair election.&nbsp; And-- and apparently the-- the opposition certainly did a lot better than it did before.&nbsp; I mean, doesn't Venezuela have a real democracy?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:04:44:00<span class="Apple-tab-span" style="white-space:pre">	</span>Well, it has democracy Chavez-style.&nbsp; First off, I congratulate the opposition for participating.&nbsp; It's an obligation for any opposition to participate, offer new ideas and new vision.&nbsp; But they did so, in this campaign, against the-- state having all of the resources of the state for-- behind Chavez's candidates.&nbsp; The media-- virtually under control of Chavez.&nbsp; There are some outlets that-- that-- that are independent.&nbsp; But-- the vast majority of the communication is-- is on Chavez's side.&nbsp; The rules rigged against the opposition.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:05:16:00<span class="Apple-tab-span" style="white-space:pre">	</span>And here's what I mean by Chavez-style.&nbsp; In the past, when Chavez has lost these elections, and he has lost elections in the past, for example, the mayorship of Caracas, what he does is strip that entity of all of its power.&nbsp; And I suspect that Chavez has the same thing in mind in terms of the Legislative Assembly.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:05:33:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:05:35:00<span class="Apple-tab-span" style="white-space:pre">	</span>Can I respond to that? A lot of this is just not-- true.&nbsp; Okay, so this stuff about the media, for example.&nbsp; I mean, there's an affiliate of Nielson that does surveys of how much-- audience watches the different television and the state-- television, as opposed to the private opposition-- controlled television.&nbsp; The state has between five and ten percent of the market.&nbsp; If you go and look and look at the newspapers, the biggest newspapers are opposition newspapers.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:01:00<span class="Apple-tab-span" style="white-space:pre">	</span>I'm not talking about soap operas--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:02:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:03:00<span class="Apple-tab-span" style="white-space:pre">	</span>--The radio is also-- well, the point is--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:04:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:07:00<span class="Apple-tab-span" style="white-space:pre">	</span>We've read a lot in the United States in liberal publications like <i>The New Republic</i>, for example, about the closing of outlets by Chavez.&nbsp; For example, Globovision, one of the biggest networks in Venezuela.&nbsp; Chavez put out-- an arrest warrant for Mr. Zuloaga, who's the owner of Globovision.&nbsp; He shut down the-- the single most popular network in Venezuela or-- or took away their license.&nbsp; So, you're saying that--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:36:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:37:00<span class="Apple-tab-span" style="white-space:pre">	</span>--Venezuela has a-- has-- a freer press and-- and more of an opposition press than the United States.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:42:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:43:00<span class="Apple-tab-span" style="white-space:pre">	</span>--It has more of an opposition press than the U.S.&nbsp; There's no doubt about that.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:45:00<span class="Apple-tab-span" style="white-space:pre">	</span>W-- explain that.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:46:00<span class="Apple-tab-span" style="white-space:pre">	</span>You look at the newspapers, the radio and the television.&nbsp; You add up who reads and-- well, who are the biggest circulation, who has the biggest audience?&nbsp; It's the opposition TV.&nbsp; And--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:57:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:06:59:00<span class="Apple-tab-span" style="white-space:pre">	</span>-- This is a balance--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:07:00:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:07:01:00<span class="Apple-tab-span" style="white-space:pre">	</span>--more oriented to the--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:07:02:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:07:06:00<span class="Apple-tab-span" style="white-space:pre">	</span>One at a time.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:07:07:00<span class="Apple-tab-span" style="white-space:pre">	</span>The major TV station there right now is Venevision because of soap opera.&nbsp; It used to be Radio Caracas Television.&nbsp; And the government took control of Radio Caracas.&nbsp; It's good or bad or-- or not.&nbsp; But what Roger said is the government has been also changing all the electoral rules.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:07:20:00<span class="Apple-tab-span" style="white-space:pre">	</span>In July this year, just a month before the election, the government changed the electoral votes-- one month before the election.&nbsp; If you travel to Venezuela, if you go there, you still see the sign in the street that major candidate in the whole country was Hugo Chavez, was not the members of his political party. It was Hugo Chavez. He was a single candidate-- against the opposition using all the power of the government.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:07:43:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:07:45:00<span class="Apple-tab-span" style="white-space:pre">	</span>What about these rules?&nbsp; Let's talk about what-- what Roger said about changing the rules?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:07:47:00<span class="Apple-tab-span" style="white-space:pre">	</span>This is, you know-- again, I mean, what do we do in the United States?&nbsp; Let's compare it to the United States, okay?&nbsp; I mean, every ten years we have a census and then the legislatures that redistrict.&nbsp; And if the Republicans have power in the legislature and-- and governorship in a state, then they change and redraw the districts, okay.&nbsp; There was a little bit of that in Venezuela.&nbsp; Nothing compared to what we have here, okay.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:11:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:13:00<span class="Apple-tab-span" style="white-space:pre">	</span>--you know-- I mean--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:14:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:16:00<span class="Apple-tab-span" style="white-space:pre">	</span>--free speech here, okay.&nbsp; The point is 50 percent of the national votes for the opposition-- may I-- may I just finish my point.&nbsp; And-- and if you said that-- what I said was untrue, tell me, is it correct that the opposition got roughly 50 percent of the votes and gets roughly 40 percent of the-- of the seats in the National Assembly?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:37:00<span class="Apple-tab-span" style="white-space:pre">	</span>Yeah, that's absolutely right.&nbsp; And--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:39:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>And that is absolutely unfair.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:40:00<span class="Apple-tab-span" style="white-space:pre">	</span>In the U.K., the Labor Party has gotten 24 percent of the vote and gotten the majority of Parliament.&nbsp; And you've had worse discrepancies in Spain.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:47:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:48:00<span class="Apple-tab-span" style="white-space:pre">	</span>--discrepancy in 2008, in the United States.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:08:50:00<span class="Apple-tab-span" style="white-space:pre">	</span>But look, you and I are Americans.&nbsp; We're foreigners.&nbsp; Our wish should be for-- the welfare of the Venezuelan people.&nbsp; And I would hope that if Chavez were to, in the-- in the months ahead, disadvantage the Legislative Assembly because his people can't compete with the-- the Democratic opposition, which is a bunch of talented, independent people-- that if he does to the Legislative Assembly what he did to the mayorship of Caracas, then I would hope that you would be-- prepared to condemn anti-Democratic moves by Chavez against the legislative assembly--- I'm not counting on that happening.&nbsp;</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:09:24:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:09:26:00<span class="Apple-tab-span" style="white-space:pre">	</span>--for everything I disagree with them on.&nbsp; And I'm not here to defend any government--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:09:30:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:09:31:00<span class="Apple-tab-span" style="white-space:pre">	</span>--Roger let me ask you a different question.&nbsp; And I think this is something that-- that Mark certainly implies here.&nbsp; The Venezuelans, it seems anyway, even though his-- his support has gone down, just as President Obama's support has gone down-- there's a lot of support for Hugo Chavez in Venezuela.&nbsp; Why should the United States be involved in being critical of his government or the way that elections are held when it's-- it seems, anyway, that the popular will's being expressed by-- him being in power.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:10:03:00<span class="Apple-tab-span" style="white-space:pre">	</span>But I believe that the U.S. has not be-- to be involved in Venezuela.&nbsp; That's one of the major problems.&nbsp; It's a problem of the Venezuelan and the Venezuelan needs to figure out how to-- how to solve their problems.&nbsp; Their problems with Hugo Chavez-- Hugo Chavez is not the major problem of Venezuela.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:10:18:00<span class="Apple-tab-span" style="white-space:pre">	</span>Hugo Chavez is a consequence of bad government.&nbsp; Hugo Chavez is consequence of the-- the people were telling the governments in Venezuela, before Hugo Chavez, when the-- when they took a president to jail because of corruption.&nbsp; Then came a government that had the opportunity to solve some of those-- social problems and promised that the president (UNINTEL).&nbsp; And he just-- slipped in-- under his own promise.&nbsp; And then Chavez came in a time when people wanted change.&nbsp; But Chavez is not the one who has been delivering the changes.&nbsp; Chavez is one more of this autocrats governments of Latin America.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:10:51:00<span class="Apple-tab-span" style="white-space:pre">	</span>Let me ask Roger th-- the same question.&nbsp; What is-- what is the United States' interest in Venezuela?&nbsp; I mean, Venezuela has not-- the-- they haven't attacked the United States.&nbsp; We buy ten percent of their oil.&nbsp; We obviously have a relationship with them there.&nbsp; So, w-- why should we be concerned about what goes on internally in Venezuela?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:11:11:00<span class="Apple-tab-span" style="white-space:pre">	</span>Well, an unaccountable autocratic militaristic regime that makes alliances with the likes of Iran and Cuba and even Russia and China should be of concern to the United States.&nbsp; And this is-- this is a regime that, because of the lack of democracy-- can do what it wishes with the substantial-- petroleum resources-- and to undermine-- U.S. interest in the region.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:11:37:00<span class="Apple-tab-span" style="white-space:pre">	</span>And what we should be concerned with is the drug trafficking, which goes on unabated with com-- with virtual complicity of-- of the Chavez regime.&nbsp; His ties to Iran, his illegal support-- for the-- Iranian nuclear program, perhaps the mining of uranium in Venezuela by-- by the Iranians, which is also illegal, his support-- for-- terrorist guerillas in Columbia that are-- waging a proxy war-- against-- al-- a member of the United Nations-- Columbia, which is a violation of international law.&nbsp; All of things should be of interest to the United States.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:13:00<span class="Apple-tab-span" style="white-space:pre">	</span>Th-- those--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:14:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:15:00<span class="Apple-tab-span" style="white-space:pre">	</span>--sounds like pretty serious concerns, Mark.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:16:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:17:00<span class="Apple-tab-span" style="white-space:pre">	</span>--Are you bothered by them?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:18:00<span class="Apple-tab-span" style="white-space:pre">	</span>I can pick, you know, any one of those.&nbsp; You know, look at the terrorism allegation, for example, okay.&nbsp; General Doug Fraser, who's the head of the U.S. Southern Command, was testifying before Congress on March 11 and-- John McCain, Senator McCain, asked him about this allegation.&nbsp; And he said, "We have been very-- paying very close attention and we don't find any connection between the government of Venezuela and terrorism."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:40:00<span class="Apple-tab-span" style="white-space:pre">	</span>Mark, he contradicted that the following day--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:40:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:42:00<span class="Apple-tab-span" style="white-space:pre">	</span>Yeah, and the next day, of course, he met with the State Department and then he changed his statement.&nbsp; But I happen to believe that he was right the first time because he's the one with the satellite data.&nbsp; He knows what's going on there.&nbsp; And he didn't see anything--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:54:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:56:00<span class="Apple-tab-span" style="white-space:pre">	</span>--eight years-- that's right, in eight years--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:58:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:12:59:00<span class="Apple-tab-span" style="white-space:pre">	</span>We've had anonymous officials saying this for eight years now in the United States.&nbsp; And not once has the United States government presented one shred of evidence to back up this assertion.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:13:10:00<span class="Apple-tab-span" style="white-space:pre">	</span>How about President Chavez's temporary powers to rule by decree?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:13:15:00<span class="Apple-tab-span" style="white-space:pre">	</span>Yeah.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:13:15:00<span class="Apple-tab-span" style="white-space:pre">	</span>What about that?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:13:17:00<span class="Apple-tab-span" style="white-space:pre">	</span>Well-- he doesn't have those right now.&nbsp; He had that-- for a while a little over a year ago.&nbsp; The Assembly voted to give it to him.&nbsp; And again, our Assistant Secretary of State, Tom Shannon, said, "Well, that's constitutional."&nbsp; And, you know-- and-- and, you know, he didn't abuse it, by the way.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:13:31:00<span class="Apple-tab-span" style="white-space:pre">	</span>I mean, there wasn't anything that he ruled against-- he ruled or-- or did anything.&nbsp; It was mainly used against foreign companies-- in order to get-- you know, in order to do some of these nationalizations that you talked about, which by the way, are a lot less than a lot of other counties-- certainly less than Bolivia.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:13:45:00<span class="Apple-tab-span" style="white-space:pre">	</span>And the state in Venezuela is-- is still a lot smaller in its role in the economy than the state in France, for example.&nbsp; So, this is-- you know, all-- everything you hear about Venezuela is exaggerated.&nbsp; You're getting the-- the tea party view of Venezuela here in the United States.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:13:59:00<span class="Apple-tab-span" style="white-space:pre">	</span>What-- what about-- w-- he says-- he says that the view is exaggerated.&nbsp; One of the things that-- that-- a lot of Americans are concerned about is pursuing business people, Barrueco.&nbsp; I mean, I could name a whole bunch of them who have either been put into prison or have been tried to-- ha-- have been-- escaped the country because of charges.&nbsp; And some people say that's because Chavez wants to nationalize their businesses or take them over himself.&nbsp; Is there any truth to that?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:14:25:00<span class="Apple-tab-span" style="white-space:pre">	</span>The problem is that-- when the government controls the judiciary.&nbsp; And even right now, the government is in a hurry to appoint all the-- all the justices from the supreme tribunal before the election-- before the opposition gets into the Congress.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:14:36:00<span class="Apple-tab-span" style="white-space:pre">	</span>When you try to do business in Venezuela, you have to face the judiciary.&nbsp; And you don't have anywhere to go.&nbsp; And you have to face a government that can decide whatever they want, any time they want, because the president decides that day that that business needs to be nationalized.&nbsp; You don't have the tools to do good business in Venezuela.&nbsp; So you have the risk all the time.&nbsp; And that's why you-- all the business is growing now in Venezuela, business from people around the government.&nbsp; And they're going to get into trouble when the government (UNINTEL).</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:15:04:00<span class="Apple-tab-span" style="white-space:pre">	</span>And-- and is this having an impact on the economy?&nbsp; I mean, the Venezuelan economy is, kind of, amazing.&nbsp; You have the-- the sixth or the eighth largest producer of oil in the world and&nbsp; yet, they're now one of the few countries in the world that-- that's actually going to-- won't grow this year.&nbsp; In other words, the recession continues.&nbsp; And they've got 30 percent inflation rate.&nbsp; W-- why is that?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:15:26:00<span class="Apple-tab-span" style="white-space:pre">	</span>The economy's collapsing because-- governments can't run-- the private sector.&nbsp; But governments have proven in Venezuela, for example, that they can't deliver food as-- as efficiently as the private sector can.&nbsp; So, you see food rotting on-- on-- in-- all over Venezuela.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:15:43:00<span class="Apple-tab-span" style="white-space:pre">	</span>And the economy is going to collapse.&nbsp; The-- you see shortages of-- of-- of energy-- ha-- blackouts-- that are collapsing the private sector.&nbsp; And it-- and it's an extraordinary problem.&nbsp; The-- returning to this issue of the Legislative Assembly.&nbsp; There's a banner outside the-- legislative palace-- today that has a picture of Hugo Chavez that says, "Welcome opposition deputies.&nbsp; Help us build a country that you're going to flee from."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:16:12:00<span class="Apple-tab-span" style="white-space:pre">	</span>That's the message that we're supposed to-- accept as some-- as indicating some sort of democratic vocation or democratic convit-- commitment.&nbsp; He's essentially saying that they're going to run-- continue to run out of the country, anybody that opposes him.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:16:26:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:16:27:00<span class="Apple-tab-span" style="white-space:pre">	</span>--What do you think Mark, about the future of the-- of the National Assembly?&nbsp; Do you think that-- that Roger's right, that you've seen examples of Chavez essentially stripping power from institutions where the opposition has moved in.&nbsp; Do you think that's gon-- just as a prediction, do you think that might happen with the n-- with the National Assembly?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:16:46:00<span class="Apple-tab-span" style="white-space:pre">	</span>Probably not that much.&nbsp; No.&nbsp; I mean, it's-- it's-- you know, they had the Assembly.&nbsp; They had 48 percent of the Assembly-- back in-- in 2004, you know-- before they boycotted the election.&nbsp; And there was compromise.&nbsp; And there was back and forth.&nbsp; For example, when they had to appoint an electoral council for the 2004 referendum.&nbsp; They had a long negotiation process.&nbsp; And-- they ended up with-- you know-- a pretty-- balanced council.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:17:14:00<span class="Apple-tab-span" style="white-space:pre">	</span>So, on the economy, you know, this is something that I actually-- you know, study and have-- have written about.&nbsp; And, you know, the economy's probably already begun to recover in the second quarter, if you use-- seasonally adjusted data.&nbsp; And these guys have been talking about the collapse of the Venezuelan economy for, like, eight years now.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:17:31:00<span class="Apple-tab-span" style="white-space:pre">	</span>And, you know, from 2003, when-- the government got control over the oil industry to 2008, the economy doubled in real terms, in size.&nbsp; It's adjusted for inflation, okay.&nbsp; And-- poverty was reduced by-- you know, more than half, extreme poverty by more than 70 percent.&nbsp; And-- and then they went into recession, like most of the countries in the hemisphere in 2008.&nbsp; And then they're going to come out--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:17:55:00<span class="Apple-tab-span" style="white-space:pre">	</span>Right.&nbsp; They're the only country, though, according to the economists or consensus--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:17:59:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:01:00<span class="Apple-tab-span" style="white-space:pre">	</span>-- that will decline this year in Latin America--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:02:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:03:00<span class="Apple-tab-span" style="white-space:pre">	</span>--recession went on--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:04:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:05:00<span class="Apple-tab-span" style="white-space:pre">	</span>--and they've got all this oil.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:07:00<span class="Apple-tab-span" style="white-space:pre">	</span>Yeah, well, their recession went on perhaps one or two quarters more than some--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:11:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:13:00<span class="Apple-tab-span" style="white-space:pre">	</span>--It wasn't as deep as Mexico, for example.&nbsp; They didn't lose as much as--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:16:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:17:00<span class="Apple-tab-span" style="white-space:pre">	</span>--Mexico is going to grow this year.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:18:00<span class="Apple-tab-span" style="white-space:pre">	</span>Yeah, but Mexico--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:19:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:21:00<span class="Apple-tab-span" style="white-space:pre">	</span>--shrank eight percent in 2009.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:23:00<span class="Apple-tab-span" style="white-space:pre">	</span>So, you're pretty sanguine about the Venezuelan economy--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:25:00<span class="Apple-tab-span" style="white-space:pre">	</span>I'm saying that, you know, these stories of collapse-- it's like everything else.&nbsp; It's just exaggerated.&nbsp; I'm not sanguine about it they have real problems.&nbsp; But they have real problems just like everyone else.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:35:00<span class="Apple-tab-span" style="white-space:pre">	</span>Do you think their problems are related to what Roger said-- the-- the fact that there are all businesses that have been nationalized, there's all this worry-- as Carlos said, about the judges coming in and saying, you know, "We're going to take your com-- your company away," or "We're not going to allow you to operate"?&nbsp; I mean, is th-- is that kind of thing a damper on economic-- prosperity?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:18:57:00<span class="Apple-tab-span" style="white-space:pre">	</span>I think that, you know, in every country-- this-- Venezuela's not the only country with a left government in South America.&nbsp; It's the majority now.&nbsp; In every one of these countries, you have had some problems with foreign-- investors.&nbsp; And the rules of the game have changed.&nbsp; And, yeah, that's going to be a problem.&nbsp; And they're all focusing on Venezuela 'cause they want to isolate the guy with the oil--- and make it look like he's--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:19:16:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:19:20:00<span class="Apple-tab-span" style="white-space:pre">	</span>--like Brazil-- that has been actually reduce in poverty because the numbers in Venezuela are not quite clear when they call unemployment "unoccupation."&nbsp; And they begin to change the name of the stuff to manipulate the system. I prefer--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:19:33:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:19:35:00<span class="Apple-tab-span" style="white-space:pre">	</span>--The IMF and the World Bank and the U.N. accept their numbers, okay.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:19:36:00<span class="Apple-tab-span" style="white-space:pre">	</span>Well, okay.&nbsp; But-- but--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:19:37:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:19:38:00<span class="Apple-tab-span" style="white-space:pre">	</span>--in Brazil--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:19:39:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:19:40:00<span class="Apple-tab-span" style="white-space:pre">	</span>--A left government like Lula's.&nbsp; It's a good government reducing-- with social problems, implement the problems with democratic ways, respecting opposition, respecting everyone, respecting civil society.&nbsp; Civil society in Venezuela has been under threat for the last eight years because Chavez from one day decided to begin-- at-- an action against civil society.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:00:00<span class="Apple-tab-span" style="white-space:pre">	</span>Civil society also tried to overthrow the government and succeeded--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:02:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:03:00<span class="Apple-tab-span" style="white-space:pre">	</span>--for 48 hours--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:04:00<span class="Apple-tab-span" style="white-space:pre">	</span>What-- what civil society was that?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:05:00<span class="Apple-tab-span" style="white-space:pre">	</span>In 2002.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:06:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:07:00<span class="Apple-tab-span" style="white-space:pre">	</span>--the same people your-- your opposition that you're talking about--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:08:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:09:00<span class="Apple-tab-span" style="white-space:pre">	</span>--I was opposed to to-- to the-- to the temporary government--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:11:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:13:00<span class="Apple-tab-span" style="white-space:pre">	</span>--The majority of the respectful NGOs-- they were against that.&nbsp; And now-- on the--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:17:00<span class="Apple-tab-span" style="white-space:pre">	</span>Well--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:18:00<span class="Apple-tab-span" style="white-space:pre">	</span>The majority of NGOs-- Radio Pollo, Fotopalorvida (PH), that's-- that's-- a group of NGOs.&nbsp; And not so much for the organization have been facing persecution for government.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:28:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:29:00<span class="Apple-tab-span" style="white-space:pre">	</span>Let me bring Roger in here.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:30:00<span class="Apple-tab-span" style="white-space:pre">	</span>--is-- what-- what Mark is doing is what Chavez does-- this McCarthyite-- denunciation-- tarring all of the NGOs because if you can say that they tried to overthrow the government in an illegal way, you can treat them like criminals.&nbsp; And what they are, are Democrats who want the best for their country.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:20:51:00<span class="Apple-tab-span" style="white-space:pre">	</span>W-- what about what Mark says about other governments in Latin America?&nbsp; It's true.&nbsp; Brazil has a left government.&nbsp; You can, sort of, say Peru has a left government.&nbsp; But these are-- th-- these are countries that are actually prospering to-- a great degree.&nbsp; What-- what's the difference?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:21:07:00<span class="Apple-tab-span" style="white-space:pre">	</span>Absolutely. The governments that respect the rule of law grow.&nbsp; Governments that want plural democratic institutions grow.&nbsp; Those that don't, fail.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:21:16:00<span class="Apple-tab-span" style="white-space:pre">	</span>L-- let me go to an issue that we, kind of, touched on very briefly, and that is oil.&nbsp; Roger, you are concerned that-- Venezuela's a major supplier of oil to the United States and we should be worried about what?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:21:31:00<span class="Apple-tab-span" style="white-space:pre">	</span>Actually, I'm not concerned.&nbsp; I think that we should be mindful of the fact that Chavez has every intention of ending the Venezuelan independence on the U.S. market for oil.&nbsp; He is looking for alternative-- markets.&nbsp; He has every right to do that.&nbsp; The Chinese are perfectly-- willing to do that.&nbsp; They're putting more money in-- agreed to pay $20 billion to Venezuela.&nbsp; They're building the refineries and the tankers that will take that Venezuelan product.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:21:56:00<span class="Apple-tab-span" style="white-space:pre">	</span>We, as (LAUGHS) Americans, need to be prepared-- to take up the slack and find other sources of oil.&nbsp; And that will happen over time.&nbsp; It's a market.&nbsp; It's a commodity.&nbsp; I am not-- I don't carry any brief for U.S. petroleum companies.&nbsp; But they better wise up because Chavez has every intention of ending-- sales of Venezuelan petroleum-- to-- to u-- to the U.S. market.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:22:17:00<span class="Apple-tab-span" style="white-space:pre">	</span>Can I respond to this charge of McCarthyism because I find this deeply ironic.&nbsp; I mean, in Washington, anybody who even tries to give-- you know, this is-- you know, and I congratulate you, by the way, for having this show, because this is the first show on national TV in the United States that actually has had a discussion like this where more than one side of the story on Venezuela has been-- presented.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:22:38:00<span class="Apple-tab-span" style="white-space:pre">	</span>And so, the McCarthyism's really in the other direction.&nbsp; I'm not tarring all the civil society groups or even the opposition in Venezuela.&nbsp; I'm just-- all I mentioned that was because there-- that was part of the-- that's part of the stories.&nbsp; And I'm not letting the government off the hook either.&nbsp; I think the government has been unnecessarily-- polarizing, as well.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:22:56:00<span class="Apple-tab-span" style="white-space:pre">	</span>But-- in-- in terms of, you know, being able to talk about this and have a reasonable discussion, this is-- you know, what is all this stuff about Iran?&nbsp; Brazil has-- very good relations with Iran, the same as Venezuela.&nbsp; Vaz-- Brazil has publicly defending the right of Iran to enrich uranium--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:23:13:00<span class="Apple-tab-span" style="white-space:pre">	</span>Let me let Roger respond on the Iran point.&nbsp; And then we really have to wrap things up.&nbsp; Is there a difference-- between the relationship between-- Venezuela and Iran and that of Brazil and Iran?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:23:23:00<span class="Apple-tab-span" style="white-space:pre">	</span>Well, the-- the Iranians aren't helping the Brazilians develop-- nuclear technology.&nbsp; If the-- the-- the ir-- the Iranians are cooperating a nuclear technology with-- Venezuela, it's documented.&nbsp; The-- the agreement was signed in November of-- of-- 2008 or '09.&nbsp; And that's-- against U.N. resolutions.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:23:48:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:23:50:00<span class="Apple-tab-span" style="white-space:pre">	</span>--about this.&nbsp; And they don't have any concerns about this--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:23:51:00<span class="Apple-tab-span" style="white-space:pre">	</span>Quick-- quick question for everybody.&nbsp; And we're going to go around the table.&nbsp; What do you think-- do you think that Chavez will be reelected in 2012?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:24:00:00<span class="Apple-tab-span" style="white-space:pre">	</span>It depends how-- how he-- he move from now to 2012.&nbsp; He will begin to-- to change all the rules again.&nbsp; He-- because any time that he loses an election, he changes the rule again.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:24:10:00<span class="Apple-tab-span" style="white-space:pre">	</span>Okay, but yes or no?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:24:12:00<span class="Apple-tab-span" style="white-space:pre">	</span>I hope no.&nbsp; I hope that opposition's going to begin improving.&nbsp; And I hope that this is going to be-- a major movement of people against Chavez in the next-- election.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:24:21:00<span class="Apple-tab-span" style="white-space:pre">	</span>Roger.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ROGER NORIEGA:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:24:22:00<span class="Apple-tab-span" style="white-space:pre">	</span>If the process is more fair, if the opposition is able to-- to change the rules of the game to where there's a more level playing field, in terms of access to the media, et cetera-- they can end, if they're unified.&nbsp; I think they can give him-- a real contest.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:24:37:00<span class="Apple-tab-span" style="white-space:pre">	</span>You think Chavez will be reelected in 2012?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:24:39:00<span class="Apple-tab-span" style="white-space:pre">	</span>I think probably.&nbsp; I mean, again, the opposition does control-- still a majority of the media.&nbsp; And they have a majority of the wealth and income of the country 'cause these are the richer people.&nbsp; So, they have advantages.&nbsp; And it's true that the state abuses its-- incumbency, like it does in most countries in this hemisphere.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:24:56:00<span class="Apple-tab-span" style="white-space:pre">	</span>You think Chavez will win?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>MARK WEISBROT:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:24:57:00<span class="Apple-tab-span" style="white-space:pre">	</span>I think he'll probably win because-- you know, he's the only president they've ever had who has really sided with poor people.&nbsp; And that's still a really large part of the poor-- population, poor or working people.&nbsp; And they've gained a real lot in terms of education, healthcare and-- and everything else.&nbsp; So, they'll vote to reelect him.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:25:15:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:25:17:00<span class="Apple-tab-span" style="white-space:pre">	</span>I'm sorry?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>CARLOS PONCE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:25:18:00<span class="Apple-tab-span" style="white-space:pre">	</span>According to him, it's a perfect country.&nbsp; It's good to know because the people that live in Venezuela think in different way.&nbsp; And you have to go there and see that the people think in different ways.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:25:26:00<span class="Apple-tab-span" style="white-space:pre">		</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:25:31:00<span class="Apple-tab-span" style="white-space:pre">	</span>That's the last word.&nbsp; Thank you, Carlos.&nbsp; Thank you, Mark.&nbsp; And thank you, Roger.&nbsp; Before we go, I want to remind viewers that you can catch <i>Ideas in Action</i> whenever and wherever you choose.&nbsp; To watch complete shows, just go to our website, ideasinactiontv.com or download a pod cast from the iTunes store.&nbsp; And that's it for this week's <i>Ideas in Action</i>.&nbsp; I'm Jim Glassman.&nbsp; Thanks for watching.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:25:58:00<span class="Apple-tab-span" style="white-space:pre">		</span>(MUSIC)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; ">00:26:13:00<span class="Apple-tab-span" style="white-space:pre">	</span>For more information, visit us at ideasinactiontv.com.&nbsp; Funding for <i>Ideas in Action</i> is provided by <i>Investor's Business Daily</i>.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; <i>Investor's Business Daily</i> helps investors find these new leaders as they emerge.&nbsp; More information is available at investors.com.&nbsp; This program is a production of Grace Creek Media.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>* * *END OF AUDIO* * *</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>* * *END OF TRANSCRIPT* * *</p></blockquote>
















































































































































































































































































































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    </content>
</entry>

<entry>
    <title>Video Game Nation: How Video Games Will Affect Our Lives - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/02/video-game-nation.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42288</id>

    <published>2013-02-07T16:03:49Z</published>
    <updated>2013-02-19T19:16:46Z</updated>

    <summary>The video game business has grown into a 50 billion dollar industry world-wide. Video games are now being used to teach soldiers how to fight, surgeons how to operate, and children how to read. Colleges and universities have responded to...</summary>
    <author>
        <name>Emily Johnson</name>
        
    </author>
    
        <category term="Episode 40" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="games" label="Games" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="southernmethodistuniversity" label="Southern Methodist University" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="toysandgames" label="Toys and Games" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="videogame" label="Video game" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="videogamecontroversy" label="Video game controversy" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="videogameindustry" label="Video game industry" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.ideasinactiontv.com/episodes/">
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0pt 0pt 0pt 40px; border: medium none; padding: 0px;">The video game business has grown into a 50 billion dollar industry world-wide. Video games are now being used to teach soldiers how to fight, surgeons how to operate, and children how to read.  Colleges and universities have responded to the demand by offering classes, and even graduate-level degrees in video game development.  Dr. Peter Raad founded a master's degree program for video games at Southern Methodist University.  He and Jim discuss the positive and negative effects the spread of video games will have in our lives.</blockquote>]]>
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0pt 0pt 0pt 40px; border: medium none; padding: 0px;"><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Welcome to <i>Ideas in Action</i>, a television series about ideas and their consequences, I'm Jim Glassman.&nbsp; This week, video game design.&nbsp; It's not all fun and games anymore.&nbsp; If you thought video games were for kids, consider this:&nbsp; It's a $22-billion industry that's moved from being a pastime into primetime. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Video games are being used to train soldiers how to fight, surgeons how to perform operations, and kids how to read.&nbsp; Joining me to explore this topic is Professor Peter Raad, director of the Linda and Mitch Hart E. Center at Southern Methodist University.&nbsp; The topic this week:&nbsp; How video games may change the way we live, work, and learn.&nbsp; This is <i>Ideas in Action</i>.&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>ANNOUNCER:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Funding for <i>Ideas in Action</i> is provided by Investor's Business Daily.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; Investor's Business Daily helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">The video game industry has grown like wildfire.&nbsp; From its early incarnation over 40 years ago to today's increasingly sophisticated realistic and often violent games.&nbsp; As the technology progresses, some observers are cautioning that we should consider how this blurring between the virtual and the real could affect the way we live and learn.&nbsp; Schools of higher learning are now offering advanced degrees in video game design.&nbsp; Southern Methodist University has one of the largest in the country.&nbsp; Since 2005, 350 students have received master's degrees, and now work in over 100 game design studios around the world.&nbsp; No wonder the industry is hot.&nbsp; But what are the consequences of accepting video games into almost all aspects of our lives? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Peter Raad, let's begin by just kind of laying out the scope of the video game industry.&nbsp; It has just boomed over the last ten or 15 years.&nbsp; How big is it? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Worldwide, it's over $50 billion.&nbsp; As a matter of fact, today, the revenues from the video game industry exceed the combined revenues of music and other forms of video.&nbsp; So video games are exploding and are truly now the preferred form or entertainment of people from the young ages to older ages. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">What-- what about compared to movies?&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">It's bigger than movies.&nbsp; It's-- the video game industry in terms of-- of box office revenues-- the revenues from video games are actually exceeding, and have been since-- about 2000, 2001. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And-- and how many people play video games?&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Some research came out of-- of the Pew Foundation, and they found out that over 96, 98 percent of-- young people-- play video games.&nbsp; But what is really-- people do not know is that women constitute a much larger proportion than boys who are under 17 who actually play video games.&nbsp; So now you have video games as a result of, for example, the introduction of the Wii in retirement homes, even older generations are playing video games. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">All right, now-- you-- you're saying women over 18 or-- older women versus younger men?&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Sure. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">That-- that-- that's really not exactly what people think about when they talk-- when they hear about video games.&nbsp; Now, the other thing is that-- that video games are very expensive to produce.&nbsp; I mean, more than a movie, right? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">They are very expensive.&nbsp; Some can be as expensive as some movies.&nbsp; Of course some movies today are upward of-- of $100 million to produce, but you can easily spend on average, I would say-- between-- three to five years making a game that will cost-- over $20 million to make, and that's just-- day-in and day-out.&nbsp; You-- you would-- you would have 50, 100, 200 people involved at any point in time making that video game. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And games have also become the most popular app on the-- on the iPhone and other-- on other phones and what-- what does that mean for the future?&nbsp; Is-- is that the way people are going to be playing video games? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">As a matter of fact, the social games are now quite interesting.&nbsp; There are games now that people play on Facebook-- and these are not games that-- that you would play for hours on end, but you play them a few minutes here, a few minutes there.&nbsp; Other folks are finding that playing a video game on their phone in the evening while they're waiting for something or standing in line at the grocery store is a-- is a way to pass time. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And to make it even more interesting, now that we've got interact-- interactivity and network interactivity everywhere, you can now play games with other folks.&nbsp; For example, one of the local companies here started Words with Friends.&nbsp; So instead of playing words, a game by yourself, now you're playing with everybody else, which brings the community aspect into video games, and that's a very strong aspect. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">So I didn't realize that was a Dallas company.&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Yes. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">That-- that has become a hugely popular game. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">It is.&nbsp; It's a very popular game. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And what you were saying, I think, about-- about-- video games as a pastime, I find myself at-- at the gym, for example, playing Scrabble--&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Right. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">--Because it really does, you know, the minutes tick off very quickly when that happens. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Exactly.&nbsp; And it's challenging to the brain.&nbsp; I think we're finding that there is a difference between reading a book-- watching television, watching a movie, and playing video games.&nbsp; All of those are very important activities, human activities.&nbsp; But what's really interesting about video games in juxtaposition to watching, let's say, a-- a TV series or even a movie, your involvement is as an actor.&nbsp; You're-- you're not a passive-- viewer anymore, you're actually participating in the design of-- of the-- the people that made the video game. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">How are video games driving technology in other sectors of the economy? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">It's a very-- important question for us.&nbsp; I-- you know, one of the things that, you know, I-- I personally think we shouldn't be called-- homo sapiens, we're not that wise.&nbsp; We should be called homo technologicus, those who use technology.&nbsp; Technology has-- has a way of actually changing us profoundly.&nbsp; As we make technology, we leave a piece of ourselves in it, and then in return, we become very different people than we were before technology that we've invented.&nbsp; One of the things that video games have done for us, for young people that we see, for example, is that young people are much more adept at managing resources now because in a video game world, you really have to manage your resources as you're going on a campaign, if you will. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">That's very, very different than-- than the normal young person who basically gets things in chunks.&nbsp; I do this, then I do this, I learn this, and then I-- I learn this.&nbsp; The other thing that's fascinating to me is this-- there's no fear of failing in video games.&nbsp; Matter of fact, as a matter of fact, video games teach you that you can learn through failure as long as you know that you're going to win at the end. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And that same kind of process can be translated into, for example, simulations for-- for pilots or for-- for people in other walks of life. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And we've had that.&nbsp; You know, we've had the War College, we've had-- war games, we've had simulations for pilots, commercial pilots.&nbsp; You learn how to land a plane on water without engines by practicing it many, many, many times in the-- safe confines of a simulation, of a video game in some sense. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">A video game, if you really want to take it down to its basic level, is an environment that makes it easy for you to make decisions that have consequences, but you do so in a safe and controllable environment so that if you do fail, it's not the end of the world, you can go back and do better the next time. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Even at SMU at the Guild Hall, we've worked with the Simmons School of Education at SMU to teach-- teachers how to recognize-- young children between kindergarten and third grade that cannot read and what sort of behavior-- goes along with that and how they can work actually with children to-- to remediate or to get them basically to start reading before the age of three, which is a critical age for children to be reading by that age.&nbsp; So you can use video games for the better. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And at the Bush Institute, we have a program to help improve the quality of school principals.&nbsp; And one of the things that we're thinking about is using simulations to train principals. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Absolutely.&nbsp; Anything.&nbsp; I think our future, if you-- if you think-- if I think about what is our future, what is the 21st century and how it's different and what is the impact of video games on education, I think it is the ability to exercise decisions in a simulation-- in-- in a simulated world, in a virtual world and see what the effects are, understand the connections between the cause and the effect, and learn how to do things better in a visceral way, not reading about it, but actually living through it and actually seeing with our own two eyes and eventually sensing with our other senses what the implications are, both intended and-- unintended consequences.&nbsp; I think video games are the 21st century's form of human expression. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">But how-- how about the transition from the-- the virtual world to the real world?&nbsp; I mean, it-- does-- is that a kind of a-- a-- a smooth elision, or do people have a hard time making that translation?&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Human beings actually-- have the ability to suspend disbelief.&nbsp; Any one of us who's lost-- six, eight hours reading a book-- any one of us who shed tears-- in a movie-- we believe that we were there.&nbsp; We em-- we empathize-- with-- with-- with the action that is taking place.&nbsp; That is a normal function of human beings. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">At the same time, even young people know that when Coyote falls off the cliff and-- and falls to the bottom and comes back, that that's not real.&nbsp; We have the ability to live both in the real world and in the imagined world. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">But some-- some people say, psychologists for example, that-- that too many young people especially kind of get caught up in these virtual worlds.&nbsp; And we, you know, we hear stories about what can happen.&nbsp; Is that something that you see, or is that sort of an aberration? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Actually, I look at that as-- as a positive.&nbsp; I look at that as a-- an opportunity.&nbsp; If we can have a child forget themselves-- in a video game for six to eight hours, I want to know what that is.&nbsp; I want to be able to capture that in a bottle because if they could be spending six to eight hours understanding Newtonian mechanics, then I really want that.&nbsp; I want to grab that, and that's a sort of reason that got us at SMU really to start the Guild Hall at SMU is I saw the potential way beyond entertainment.&nbsp; Entertainment is huge, but the real potential is really in using-- role-playing games and simulations where you get to make decisions to alter the progress of the simulation in learning and in training.&nbsp; Those are the real opportunities. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Now, the psychologists, obviously, are correct to saying that this got a tremendous pull on-- on young people.&nbsp; In my generation, reading comic books had a tremendous-- pull on us as well, and going to the movies.&nbsp; So it's really not-- not that different.&nbsp; It's a progression from the pen to radio television, to pixels on a screen.&nbsp; That's really a natural progression of technology. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Do you think that-- that kids can get addicted to video games in a-- in a way that's negative? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">We can get addicted to anything.&nbsp; I think this is where we as parents have to get in and say, okay, that's enough, come inside now, you've been playing outside long enough, come in and do your homework.&nbsp; Children have a tendency to stay in the moment.&nbsp; Whatever it is that they're doing, they continue to be doing.&nbsp; It is our job to regulate how much time they spend studying, eating, watching TV, playing outside, and playing video games. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">What is your-- response to criticisms about the violence in video games?&nbsp; I mean, I've seen some of these video games; they're pretty-- pretty horrific.&nbsp; Do you think that, first of all, do they have a-- an-- a negative effect on the people who are-- who are playing them?&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">There is no evidence out there that there is a-- an effect of violence in video games on-- on human beings.&nbsp; I don't believe that, for example, that video games can teach behavior or can alter behavior.&nbsp; I'm-- I'm a-- I-- there's no evidence of that whatsoever.&nbsp; If anything, if that were true, then we should have had a 10,000-fold increase in murders around the world as a result of-- of video games, but really the true story, Jim, here, is that maybe 2, 3 percent of video games get 95 percent of the attention of the media. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Most games are about Mario jumping up and down and-- and doing something, or-- or Lego Wars, or-- you know, these are the games that are being played today-- Madden Football.&nbsp; Violence is-- is a-- is-- is abhorrent, and violence is a bad thing in our society.&nbsp; But violence is part of movies, violence is part of books, violence is part of our behavior.&nbsp; I don't think I can point to video games and say there's any more violence. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">You-- you mentioned Guild Hall a couple of times.&nbsp; What-- what does that mean? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">The Guild Hall is-- the-- the premier video game graduate education program in the United States, in the world.&nbsp; It is a master's degree program, it is a two-year program-- in which we take individuals from the art discipline and the design discipline and the programming discipline and we bring them together and put them through a two-year program and they end up with a master's degree learning not just the-- the theory, but also the practice of making video games and how to make them in teams.&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And was that controversial?&nbsp; I mean, Southern Methodist University, a lot of people would think of it as, you know, pretty conservative, traditional university, and here you have, as you said, the premiere video game master's degree granting institution.&nbsp; That-- that's kind of unusual, isn't it?&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">It is.&nbsp; Initially, it was controversial.&nbsp; People didn't understand that-- the unfortunate thing we have is the word "game."&nbsp; People associate frivolous with-- with-- with game.&nbsp; And it couldn't be farther from the truth.&nbsp; As a matter of fact, I would not have engaged in it.&nbsp; I know the university would not have engaged in it if we didn't see beyond that.&nbsp; And what we saw, what I saw, is that truly video games are a form of human expression. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">They are a continuation of radio television.&nbsp; It's our ability to use the intermediation of-- of technology and networks to bring communities together-- and instead of writing with ink, if you will, or writing with words on a piece of paper, we can now communicate via pixels-- on a screen. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">What is there that's-- that's really academic about-- a-- a course of learning-- how to be a video game designer?&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">There's a lot of-- theory behind it.&nbsp; Now, that theory is not just-- in the purview of video games.&nbsp; You know, things like color theory-- things like using textures and sound in order to create an ambiance that will get you to go left instead of going right.&nbsp; It's-- animation.&nbsp; It's-- virtual reality.&nbsp; It is-- the ability to create artificial agents, artificial intelligence agents that would react to you as if they were real and anticipate what you're going to do, and learning systems. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">The first time you play it, maybe it's not as hard, but then as you progress through it, it becomes harder.&nbsp; All of these are fields of research.&nbsp; Even game theory, which is not really video games, but you know, the whole notion of should I cooperate, you know, the prisoner's dilemma.&nbsp; That's a big part of video games. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Should I cooperate or should I not cooperate thinking that maybe later you're going to turn against me.&nbsp; There's quite a bit of theory that goes behind making a-- a really great experience in a video game, but it's more than that.&nbsp; I think what's unique about video games and why I was excited about bringing it into the university is that it is, for the first time in my life, I've come across a discipline that cannot be serialized. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">It cannot be-- it cannot be chunked in pieces where someone does something and then hands it over to somebody else.&nbsp; It's a highly creative enterprise that requires a team from disparate disciplines, as far away as art on one side, programming on the other side to actually work together for multiple years on end and communicate with each other to make a video game. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And that's how you teach it.&nbsp; You've got groups that are working on a project. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Correct.&nbsp; We took actually the constructionist theory of learning, Seymour Papert's-- I love that idea that, you know, it's very different than how you learn in a traditional academic environment.&nbsp; So if you have this artifact that is personally meaningful to you, it's obviously going to be motivating to you.&nbsp; So you've got a bunch of people now who are very interested in making a video game. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">They're going to learn all that it takes in order to make that video game, and they're going to get to understand the attitudes that are necessary for them to leverage each other's strengths in order to get that job done. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">You know, this-- this approach, you talk about Seymour Papert's-- theorizing-- with this approach, it seems to me-- that-- can have much broader applications-- both in higher education and even at-- at lower grade levels.&nbsp; Is there an interest in that kind of an approach, a collaborative approach to learning? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">If you ask me what is the difference between the 21st century and the previous centuries that have brought us academia, that have brought us our model of education that we have today in which we teach an individual to become an expert in a certain discipline. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">I would say that the world is highly complex and that all the single dimensional issues have been asked and answered.&nbsp; What we really need to learn is how can we work across the disciplines?&nbsp; And video games give us a wonderful opportunity to understand how to create academic programs such as we've done at SMU in the Guild Hall through the constructionist theory and the use of applied learning, if you will, in which not only do I become an expert in the discipline because I'm working on a video game that I'm interested in-- in seeing-- seeing-- its completion, but also I'm learning how to interact with other experts, either masters, and work with them almost in a conservatory model, if you will, in order to be able to accomplish the task.&nbsp; That model for us, in my opinion, needs to be the model for education in the 21st century.&nbsp; And it is in direct conflict with the models of education that we have today. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And you're an engineer and so what kind of engineer? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Mechanical engineering, fluid dynamicist. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">So do you think that fluid dynamics can be taught in this way? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Absolutely.&nbsp; I've always used simulation-- and visualization, actually, to understand complex phenomenon.&nbsp; When you're dealing with, you know, I-- I did some tsunami mitigation and interaction of structures-- and-- and water waves, large waves.&nbsp; How do you comprehend that?&nbsp; I mean, do you look at reams and reams and reams of data and-- and hope to glean-- some essence, some information, some important knowledge from that?&nbsp; You cannot.&nbsp; So I-- I have always resorted to the use of movies and the use of interactive movies to try to comprehend what is happening in that.&nbsp; And I believe the same thing can be used.&nbsp; But beyond that, we can teach engineers how to work together through the undergirding of technology and-- and-- and video games, which is not being done today. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">What about-- civics or-- kind of teaching young people who are the ones who are using these video games, although, as you say, it's becoming more broad, teaching them how to get along in this kind of complex society that you're talking about?&nbsp; What-- moral responsibilities they have in society.&nbsp; I mean, do-- do you think video games can actually teach that? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Absolutely.&nbsp; I think video games can put a young person in a-- in a situation where they can make a moral decision and see the consequences of that in a-- in a safe and controllable environment-- and actually-- actually viscerally experience that as opposed to pontificate about it in a classroom environment and say, well, I would do that, or I would do this in-- in a case study.&nbsp; I think bringing case studies to life is an amazing thing. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Let me-- let me give you even an easier example.&nbsp; Let's say we've always had this trouble.&nbsp; We want young people to understand history in context.&nbsp; Well, let's say you would really like young people to understand the Battle of Gettysburg. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Well, we could either read about it or we can go and hang out in a virtual environment as either hovering around it, or actually participating in it, or maybe even conducting interviews with some of the-- the folks that used to be there.&nbsp; That is-- that is something that can be done.&nbsp; And imagine what kind of impact that would have on a young person of actually being able to go and interview Lee or Lincoln and say, "What were you thinking there?&nbsp; Why did you do this?&nbsp; Why did you go left instead of right?"&nbsp; And actually do it in that context and-- and be viscerally engaged in it and have suspension of disbelief be on your side. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Video games can have a profound, profound impact on experiential learning, learning by experience, learning by doing, learning by being there as opposed to, say, learning French by listening to tapes, I can actually be roaming the streets of Paris and interacting with real people in real French. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Peter, you say-- "can" make a video game like Gettysburg where you can talk to Lee or talk to Pickett or talk to Mead--&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>(OVERTALK)&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">But, actually, these video games, at least to my knowledge, are not being made, and instead, we have video games about, you know, soldiers and dragons and slaying the, you know, the-- the-- the evil-- prince.&nbsp; But will such games get made?&nbsp; I mean, they're very expensive to make, and they are educational. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">It's really-- you-- you put your finger on-- on-- on the essence of the question here, and it's all about market economics, obviously.&nbsp; Today, it's very expensive to make a-- a video game, and then the way you recoup the money is by selling millions of copies. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Now, there are two things that are going to happen shortly in the next few years that are going to make a difference.&nbsp; One is we've already seen in action, and that is the introduction of the Nintendo Wii and the Xbox Microsoft's Kinect and Sony's Move.&nbsp; What it is is that finally we, the technologists, are paying enough attention to put the human being at the center of the whole equation as opposed to expecting human beings to basically serve the machine and-- and-- and learn everything about the machine.&nbsp; So these interfaces are going to make it a lot easier for us as human beings to interact with the technology, and that is essential if you're going to basically make the technology disappear and make those sorts of experiences that we're talking about very valuable for young students and older students. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">One.&nbsp; Two, the other thing that has to happen is today when you want to make a video game, it's essentially like inventing the camera to make one movie.&nbsp; It is still a very, very young industry.&nbsp; And what's going to happen is that the technologies of actually making a video game are going to become more standardized and more broadly available and they're obviously going to become cheaper, and you're going to have reuse.&nbsp; You're going to have the ability, essentially, to use things from previous times so that the cost of making one of these video games for learning will come down to the point that it's actually broadly affordable. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Is there a specific game that you-- reflects-- some of the ideas that you're talking about now, that you could tell people about? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Muzzy Lane makes a game-- about Second World War in which you can actually go in and take either side, you know, any side you want.&nbsp; And you can, you know, marshal your forces and worry about the internal politics and the unions and-- you know, how much money you've got and how much-- raw iron you've got. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And-- and you can begin to understand how complex it was to make decisions.&nbsp; And as you progress through the game, you can see what the impact is and what-- what the effect is-- based on decisions that you've made. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Beyond education, beyond history or engineering, are there ways in which video games are going to become integrated into our lives, or the-- the techniques of video games over the next 20 years?&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Yes.&nbsp; I think we're going to realize as human beings that it's very, very difficult to move human beings from point A to point B.&nbsp; I'd love to be places where I can't physically be.&nbsp; I think what's interesting to us is that we can put the brain, we can put the mind, we can put the-- the essence of a human being-- in a-- an-- an avatar, if you will, a physical avatar that can inhabit a different world, but we can be there and we can experience these things, and we can manipulate that container-- if you will. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New'; min-height: 14px;"><br /></p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And those are going to be experiences that are going to broaden our reach as human beings, and we're going to be able to go to places that we would never have fathomed being able to go, and frankly, we may be biologically not capable of going.&nbsp; So, yes, I think video games and those technologies that undergird it, the technologies of interactivity and networking I think are going to make some very interesting living and learning and playing for us in the 21st century. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">So it's only the beginning? &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">It's only the beginning. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Thank you, Peter Raad. &nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>PETER RAAD:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">Thank you, Jim, my pleasure.&nbsp;</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>JIM GLASSMAN:</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';">And before we go, I want to remind viewers that can you can catch <i>Ideas in Action</i> whenever and wherever you choose.&nbsp; To watch complete shows, just go to our website, IdeasInActionTV.com, or download a podcast from the iTunes store.&nbsp; (MUSIC)&nbsp; That's it for this week's <i>Ideas in Action</i>, I'm Jim Glassman, we'll see you next time.&nbsp; (MUSIC)</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>* * *END OF AUDIO* * *</p><p style="text-align: left; margin: 0px; font: 12px 'Courier New';"><span class="Apple-tab-span" style="white-space: pre;">	</span>* * *END OF TRANSCRIPT* * *&nbsp;</p></blockquote>

















































































































































































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<entry>
    <title>American Expertise: Could America&apos;s Know-How Be Our Strongest Export? - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/01/american-expertise.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42277</id>

    <published>2013-01-31T07:24:38Z</published>
    <updated>2013-01-31T19:10:11Z</updated>

    <summary><![CDATA[W. Michael Cox is a professor at the Cox School of Business at Southern Methodist University and a leading&nbsp;economist and analyst of the American economy. America ranks number one in the sale of services such as&nbsp;finance, management, education and transportation...]]></summary>
    <author>
        <name>Emily Johnson</name>
        
    </author>
    
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        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">W. Michael Cox is a professor at the Cox School of Business at Southern Methodist University and a leading&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">economist and analyst of the American economy. America ranks number one in the sale of services such as&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">finance, management, education and transportation to a world hungry for American know-how. Cox argues the&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">key to future American economic growth is for companies to sell their services in developing markets abroad.

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<div class="zemanta-pixie" style="margin-top:10px;height:15px"><br /><span class="zem-script more-related pretty-attribution"><script type="text/javascript" src="http://static.zemanta.com/readside/loader.js" defer="defer"></script></span></div>]]>
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Grace Creek Media</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Interview With Michael Cox</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Correspondent:&nbsp; Jim Glassman</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Welcome to <i>Ideas in Action</i>, a television series about ideas and their consequences.&nbsp; I'm Jim Glassman.&nbsp; With all the talk about America's declining place in the global economy, you might be surprised to know there's a category where we're still number one:&nbsp; selling our expertise.&nbsp; And that's good news, at least according to today's guest, who sees a bright future in exporting services to a world hungry for American know how.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Michael Cox is the director of Southern Methodist University's William J. O'Neil Center for Global Markets and Freedom.&nbsp; And the former chief economist for the Dallas Federal Reserve.&nbsp; The topic this week:&nbsp; exporting expertise.&nbsp; This is <i>Ideas in Action</i>.&nbsp; (MUSIC)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Funding for <i>Ideas in Action</i> is provided by <i>Investor's Business Daily</i>.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; <i>Investor's Business Daily</i> helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">According to this week's guest, exports of American services have jumped by 84 percent since 2000.&nbsp; America trails both China and Germany in sales of goods abroad but ranks number one in global services by a wide margin.&nbsp; In fact America's sale of services like education, finance, management and transportation expertise has led to a trade surplus in services of nearly $132 billion.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">President Obama says his goal of doubling U.S. exports by 2015 will create millions of new manufacturing jobs.&nbsp; But it's America's service sector that is of growing interest to our trading partners and is the area from which real growth in exports will come.&nbsp; Michael, you wrote in the New York Times that exporting services is absolutely essential to the U.S. economy.&nbsp; I think people would be surprised to learn that services get exported at all.&nbsp; So what do you mean by that?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Exactly that.&nbsp; You know, Americans-- 82 percent of us now work in the service sector, right?&nbsp; So it's critical that we learn to export our services to the rest of the world.&nbsp; Otherwise, we can't take advantage of that large market.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">People think of exports, loading goods onto a ship or onto a plane and sending them abroad.&nbsp; How are services exported?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, it happens in many ways.&nbsp; One way would be, for example, for students coming to take my class at SMU.&nbsp; If they come from Thailand or Mexico or China or India and they come sit in my classroom, that's going to be booked as an export of education services to the rest of the world.&nbsp; And rightly it should be.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">If they travel to our hospitals.&nbsp; Many South Americans travel up, for example, to San Antonio and the hospitals are full of Latin Americans.&nbsp; If they come up for surgery, that's going to be booked as an export of American medical services.&nbsp; That's one way.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Another way is for us, you know, exporting it directly-- without even them having to travel here.&nbsp; Such as if we decide to be lawyers for the-- for them abroad.&nbsp; If I'm-- say I'm a Chinese company and I'm selling lawn darts in America, I'm going to need some good legal assistance in the-- of the American type for consumer product safety.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">What about-- consultants or architecture?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right.&nbsp; That's a good example.&nbsp; Many of the buildings that were-- you know, designed for the Olympics in Beijing were designed by American architecture firms.&nbsp; We export that.&nbsp; We go abroad to their oil fields with our engineering services and we have the expertise there.&nbsp; Maybe we have less oil, but we have more knowledge in that area, so we'll go make that stuff work.&nbsp; China wants to be the-- the leading manufacturer in the world, but they're not going to do it apart from American expertise coming over there and showing them how to make that factory work the most efficiently and competitively.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So exports of services have been increasing.&nbsp; And not only that, but the difference between exports and imports of services, that gap has been widening.&nbsp; So Americans are exporting much more than they're importing in the service sector?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Exactly.&nbsp; We have-- a growing export sector surplus.&nbsp; And it's certainly growing faster-- our exports of services, faster than our exports of goods.&nbsp; And-- and that's because two things.&nbsp; First of all, as the world gets richer, they move down their list of needs and wants like we have.&nbsp; Top of the-- list and needs and wants is food, clothing, shelter, furniture, which tend to be material goods.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But as you get wealthier you'll want more services.&nbsp; So their demand for our service is growing just in the natural order of things.&nbsp; But also technology has just recently evolved with the Internet and so on to the point where now an American programmer can write-- HTML code on-- design a website for anybody in the globe and export that service to the rest of the world.&nbsp; So technology-- the relaxation of technology constraints is the another big-- the other big thing.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So when we hear these figures about the trade deficit, is that usually the merchandise trade deficit?&nbsp; It doesn't include services?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Usually.&nbsp; If they-- you know, the press tends to want to make a big deal out of bad news, so if they're looking to do that they're going to focus on the merchandise trade deficit.&nbsp; Sometimes you'll hear both the overall trade deficit, though, which includes the surplus in services.&nbsp; And that doesn't look as bad, of course.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But the-- but the trade deficit when it comes to goods is a lot greater than the trade surplus when it comes to--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yes, it--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Services.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Is.&nbsp; But that has a potential of one day to-- to-- to be reversed.&nbsp; Where the-- if we continue to increase our services trade and-- and sales abroad at the rate we have, then there'll come a day when we could potentially have an overall balance of trade surplus, which would come from our services.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And are we increasing our exports of services at a greater rate than, for example, we're increasing our imports of goods?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yes.&nbsp; And, again, it's owing to the fact that as they move down their-- their list of what they want to buy and as technology relaxes, we're getting very good-- a lot of U.S. companies are starting to pay attention to this.&nbsp; And they're marketing their services abroad.&nbsp; Yum Brands is an example.&nbsp; That's a service company.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yum Brands is--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yum Brands.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Taco Bell and--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right.&nbsp; And they sell--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--KFC?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">K-- Taco Bell, KFC, Kentucky-- you know, Kentucky Fried Chicken.&nbsp; They have-- A&amp;W root beer, Pizza Hut.&nbsp; And so what they've done is they've gone over to China and India and they now expect to have more restaurants and profits in China one day than in America.&nbsp; 2,000 people stood in line in India recently to get a taco from Taco Bell.&nbsp; And that's a service.&nbsp; That's the service of delivering food to the-- global population.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I was going to say.&nbsp; Isn't that-- isn't that a good?&nbsp; Isn't chicken--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Fit into--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--The goods category?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No, because you're delivering the service of preparing the food for the people in the-- and bringing it right to them and, you know, readying their food for consumption.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You're not saying the goods aren't important when it comes to trade, are you?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No.&nbsp; No, goods are important.&nbsp; And America could-- could and should do a better job at delivering goods.&nbsp; We're less competitive in the goods market than we are in the services market.&nbsp; And-- and it's no surprise that part of that owes to the fact that our labor's more expensive and produced often times by unionized-- firms.&nbsp; And-- and that makes it difficult for them to be competitive in global markets.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You say unionized firms, but, you know, the-- there is a lot of concern, certainly political concern and I think social concern, about the fact that factory workers in America are losing their job.&nbsp; That they're not competitive with workers abroad.&nbsp; Tell us about the-- that problem or how much of it is a problem?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">It's a problem in that-- if you think about like the hierarchy of human talents, what people can be used for at work.&nbsp; Physical labor in the farms and the fields.&nbsp; Manual dexterity and motor skills in the factory.&nbsp; Formulaic intelligence and so on up to imagination, creativity, people skills, emotional intelligence.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">The things at the bottom of the list, the physical, physiological supply of-- and then also manual dexterity and motor skills, those are what get-- happen in factory work.&nbsp; And that-- that's where we're not competitive right now.&nbsp; Most of us who graduate don't-- from high school or in college, especially college, don't want to go work in a factory.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Wages-- are not as great as they once were relative to services.&nbsp; Most of us want to go use our minds and our brains.&nbsp; And so we're not able to be competitive with the Chinese there.&nbsp; But what-- what we have an expertise is in delivering highly educated services.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But of course not all Americans can do that.&nbsp; And so what happens to the Americans who are-- who have been working in factories or have been using manual dexterity in their jobs?&nbsp; Are they just kind of out of luck 'cause there's not-- not much we can do about it?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, they're not out of luck but we need more productivity in those factories-- to be competitive with these wages.&nbsp; Certainly Americans are the most productive in the world.&nbsp; Even in manufacturing.&nbsp; And even in agriculture.&nbsp; One U.S. farm worker, for example, makes 30 times what a Chinese farm worker does.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And so we're very productive in the-- in the farming sector.&nbsp; But if you look at the wage comparisons, often times the wage comparisons are even more extreme.&nbsp; So I think we'll start to get more factory work back, actually.&nbsp; There's been a lot of-- dissatisfaction with some of the work that's come out of Chinese factories.&nbsp; And some of that has already come back to America.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Do you mean actually we're going to be employing more people?&nbsp; I mean one of the points that-- that you make-- very cogently is that we're manufacturing more than we were manufacturing-- years ago but we're doing it with fewer people.&nbsp; I know that-- productivity increasing.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Even without the competition from China and India, mainly China, in manufacturing, we would see fewer farm-- fewer manufacturing workers, that's-- because technology replaces people.&nbsp; And, again, though, it-- part of it is due to the fact of unions.&nbsp; I mean one of my favorite quotes ever-- is from Henry Ford where he says, "Well, at least I don't have to deal with a robot union."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You're-- you're saying that productivity is increasing, so we get more--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Per worker.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Per worker.&nbsp; But you still think that over the next few years there may be more and more people going into manufacturing?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Not necessarily more.&nbsp; I-- I think that because productivity does continue to grow in manufacturing we would be lucky to offset some of the natural job loss that was growing.&nbsp; In other words, if we can hold our own in manufacturing in terms of employment that's about the best I think you can hope for.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Because-- look, at one time, 95 percent of Americans worked on farms.&nbsp; Today it's 1.5 percent.&nbsp; So we got to the single digit numbers in farming maybe 20 years ago, 30 years again when less than 10 percent of Americans worked on farms.&nbsp; Manufacturing is destined to go that way.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">We-- we do have an export surplus of farming in this country.&nbsp; So even for a nation who produces food for just-- not just ourselves, but for the rest of the world, we still have gotten technologically to the point where we only need one out of-- one and a half of every 100 people producing food.&nbsp; It's going to happen in manufacturing as well.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Don't-- don't we have kind of an imbalance here?&nbsp; You know, on the one hand, we've got a lot of people who were in manufacturing.&nbsp; May be out of-- out of jobs now.&nbsp; Forever.&nbsp; And then on the other hand, you talk about the service economy.&nbsp; Those are highly specialized workers in many cases.&nbsp; And there we seem to have a shortage and we need to--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Import workers from the rest of the world?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You know, I believe this is really a function maybe-- most-- mostly of education in America.&nbsp; Our middle class-- America likes to have a middle class.&nbsp; We always have.&nbsp; Every nation needs a middle class.&nbsp; Was-- that middle class that we have that became so large was built mainly on the backs of manufacturing.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But in the services age you can't put that-- that knowledge in my brain.&nbsp; It's intellectual capital.&nbsp; I've got to go study.&nbsp; So it's really important that our schools be very good.&nbsp; There we have a failure in our public education system to deliver us an American middle class-- of the service age.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Is there kind of a gap between needs for skilled service workers and our ability to supply them, while at the same time we have a lot of people that just don't have those skills and it's going to take-- a while for our education system to catch up?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">It's going to take forever until we move education out of the hands of the public sector and into-- out of government schools and into private schools, which some-- our school system is falling behind.&nbsp; Our typical student in this country in math falls below average.&nbsp; In science even further down.&nbsp; And in logic and problem solving they're in the bottom 10 percent of our peer nations worldwide.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So in the meantime-- you're in favor of exporting-- I mean, I'm sorry, importing foreign labor at a specialized level.&nbsp; Is that right?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Absolutely.&nbsp; I think that that's a role that many Americans can play this day.&nbsp; Is to start a global business.&nbsp; The question is not is America outsourcing too many jobs.&nbsp; The question is are we creating enough global entrepreneurs, people who think about using that, you know, one and a half billion-- labor force that's combined in China and India together, to work for us.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">China and India together have two and a half billion people.&nbsp; America has 300 million.&nbsp; There's eight times many of them as customers than us.&nbsp; Also they're likely to grow at four times our rate this decade.&nbsp; China and India probably grow at an average rate of eight percent.&nbsp; We'll be lucky to get two percent with all this government debt we put into the economy and so on.&nbsp; And so if you want to get ahead in this next decade hitch your wagon to foreign growth, not U.S. growth.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">One point I want to come back to is bringing foreign labor, skilled labor, to the United States.&nbsp; Now do you think that's a real necessity right now?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I think it's an-- it's a necessity for several reasons.&nbsp; First of all, it would be nice to have that labor actually move here because immigrants tend to come into this country, most of them ready to work.&nbsp; And they feed the good part of the natural cycle.&nbsp; This is what's called the Titler Sequence where you-- from bondage to discipline and so on.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You-- you-- they feed-- they feed that cycle really well and they give us-- the right mindset that America needs to stay competitive in the world.&nbsp; But a second reason is that we need them in our production function.&nbsp; Most-- and increasingly successful business models in this country use both American workers, especially as managers, and salespersons.&nbsp; But they use foreign labor for programmers and all this back office work.&nbsp; So we'd need them for that.&nbsp; In other words, if they don't move here, we still need what they do.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But what-- what-- but what about moving here?&nbsp; I mean there is-- there is a concern, for example, that H1B visas are too limited.&nbsp; That--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--That bringing skilled workers here-- maybe not true during a recession--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Or a sluggish economy, but when the economy gets going again it could be a-- there could be a labor shortage in the United States for--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Absolutely.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Foreign workers?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">There has been.&nbsp; Except during this recession, for the last two decades there's been a labor sortage-- shortage.&nbsp; How do I measure the-- how do I know that?&nbsp; What variable do I use to measure the labor shortage?&nbsp; The unemployment rates.&nbsp; If you look at the unemployment rates among doctors, the unemployment rates among technical people and so on, they're very low.&nbsp; That's a sign-- they're at least below the national average of unemployment rates.&nbsp; That's a sign that we need more of those kinds of workers.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Is there something that the federal government can do to encourage more exports of services?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, they could at least qui-- stop denigrating outsourcing, because America is winning the insourcing/outsourcing battle.&nbsp; You can't just focus on one side of the balance sheet.&nbsp; You can't just look at this, "Oh, American is-- programmers.&nbsp; Some of that work is being exported to India."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Out of the 22 areas in which we have services exports and imports as categorized by the Department of Commerce, America has a surplus in 17 out of 22.&nbsp; We only have deficits in five.&nbsp; And our deficits are very small.&nbsp; We have a very small deficit in the-- in the importing of our programming services from the rest of the world.&nbsp; But we-- we do export a lot.&nbsp; We have a small deficit in our back office work and our accounting and so on.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But we have a surplus in education, a surplus in medical care, a surplus in engineering services, a sur-- plus in architecture.&nbsp; Huge surplus in the film industry.&nbsp; Huge surplus in commercial leasing.&nbsp; And so on down the line.&nbsp; Seventeen out of 22 we're winning the battle.&nbsp; So if you start talking bad about outsourcing and you're going to stop outsourcing, well, you're not going to stop outsourcing apart from stopping insourcing too, in which case you'd be just cutting our throats.&nbsp; This is the lifeblood of America today.&nbsp; Is exporting our services to the rest of the world.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And companies that outsource the most tend also to increase their employment in the United States the most?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">That's right.&nbsp; And-- the-- you know, here's a website I'd like people to go and look at and just think.&nbsp; Go to Tutor Vista.&nbsp; T-U-T-O-R-V-I-S-T-A.com.&nbsp; And what you'll notice, that there's a company there where your children, my children can get for $100 a month all the programming-- all the tutoring services they want.&nbsp; In their bedroom with their computer right in front of them from a person in India who has a PhD or a Master's in science and engineering or math.&nbsp; $100 a month.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, that employs Indian labor, but the management is American.&nbsp; The sales force is American.&nbsp; So that's a good business model.&nbsp; American management, know how, American sales and so on.&nbsp; But no trying to compete with them directly in areas like, say, programming where we might have yesterday.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So you're saying we shouldn't be afraid of outsourcing and in fact--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Use it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--It's beneficial?&nbsp; And we should-- and we should use it more?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Use it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You know--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Start a global company.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And I-- I think this is one of your-- your themes-- Michael Cox, in general, that-- the United States is actually doing a lot better than we think it is.&nbsp; And a lot of the things that we're afraid of are-- are actually-- can be very beneficial to us?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">In fact, if you go back and you look at my book, <i>Myths of the Rich and Poor </i>that what-- that's what you'll find as a theme throughout that.&nbsp; Is that not only are the people who bring you the bad news and the fear typically wrong, they're exactly backwards in terms of what-- were they see fear and America failing, it's-- you should see opportunity.&nbsp; That's why the market typically goes up in this country.&nbsp; Is that we tend to-- to-- make the best of all of the circumstances.&nbsp; This is another opportunity for America to stay ahead.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Now-- I think you said that when you see Americans consuming a lot of imports that that's actually a good sign rather than a bad sign?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, sure, because-- I mean it-- typically you don't consume it unless it's-- it's more-- more affordable.&nbsp; And so it's a way for us to increase our living standards.&nbsp; Look at what people buy at Wal-Mart.&nbsp; Wal-Mart's the best thing that ever happened to low income Americans.&nbsp; They can go there and buy products at cheap cost and-- get the basket full on low incomes.&nbsp; But where do those products come from?&nbsp; They come from typically the rest of the world.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So to go back to my question about what can the federal government do, you said that they ought to stop denigrate-- the federal government ought to stop denigrating-- outsourcing as well as I guess deni-- denigrating-- imports.&nbsp; So what-- what do you think, for example, of President Obama saying that he wants to-- double the level of U.S. exports in a very short period?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">The way he could improve things would be to preach a little bit more free trade.&nbsp; Open up-- trade restrictions.&nbsp; Stop the protectionism.&nbsp; Stop-- you know, punishing the Mexicans for driving trucks in America.&nbsp; There was a lot of trade retaliation to that when his administration decided to move forward and stop Mexican truckers from-- driving, you know, up into America.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, out of that we got-- companies like Mary Kay.&nbsp; The Mexicans were not allowed to import those products anymore to their country.&nbsp; And a lot of household products at Kimberly Clark or Proctor Gamble might-- produce got hurt by that.&nbsp; You know, we-- we've learned the lesson the bad way back in the 1920's and '30s with the Smoot Hawley Tariff that when you do-- protect an industry, you destroy it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And-- so-- and then we learned the lesson the good way during-- off-- it was during the Clinton administration, actually.&nbsp; And subsequently we learned-- that when you open up trade with NAFTA and-- the-- the-- also several rounds of GAT which were very positive that the markets will respond, that's a solution.&nbsp; It's free trade.&nbsp; Adam Smith taught us that 225 years ago with his book <i>Wealth of Nations</i>.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And is there something that the federal government could do to, let's say, subsidize exports?&nbsp; Do you think that's a good idea?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No, I don't.&nbsp; I think it-- it weakens an industry to subsidize it.&nbsp; This is a lesson of life.&nbsp; Really, the excellence of product is the only means by which a company needs to secure a market.&nbsp; We are not subsidizing our services industries in this America, by and large.&nbsp; We're not sub-- subsidizing them.&nbsp; And look how well they're doing.&nbsp; They're very competitive globally.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So-- excellence of product.&nbsp; Where is the service sector growing?&nbsp; Or service sector exports grow-- what-- what are the--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">The medical services.&nbsp; Look at the excellence of our medical services.&nbsp; We're going to be doctors for the world.&nbsp; People can afford to travel here.&nbsp; Get surgery.&nbsp; You know, and-- and get treated.&nbsp; We have the world's best doctors.&nbsp; Our education, we have four out of the top four universities in the world are American, seven out of the top 10, 19 out of the top 40.&nbsp; We've got the world's best education.&nbsp; We don't need protection.&nbsp; What-- we have an excellent product.&nbsp; And the students are coming here to get that.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">What-- what about in-- in finance or insurance?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, I would say finance-- what-- certainly enjoyed-- that was one of our big service sector exports.&nbsp; I haven't seen the most recent data on finance.&nbsp; I know that with what happened in the financial sector, some of the foreigners may have shied away from now using financial advisors.&nbsp; But I have to see where the-- I don't know where they're going to go to find better ones.&nbsp; They-- they won't.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">What about insurance?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Insurance, we have a deficit, actually.&nbsp; We have-- but that's because the United States buys reinsurance from the rest of the world.&nbsp; Once you take that reinsurance out of the equation we're almost exactly at a balance.&nbsp; And you brought up an area, one I think-- which is a big opportunity for Americans.&nbsp; To sell insurance to the rest of the world.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And reinsurance is what?&nbsp; Insurance that backs up other insurance?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right.&nbsp; It's-- for example, when we hire Lloyds of London or--Swiss Re or something to back up our State Farm insurance.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You know--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">We-- we're-- we're rich as a nation and we don't want to be vulnerable.&nbsp; We can afford to not be vulnerable so we reinsure our insurance to the rest of the world.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Who are-- competitors in-- in services?&nbsp; For example, I know that Germans do a great job of-- of exporting but I'm not sure whether-- is that just goods or is that goods and services?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">It's mainly goods.&nbsp; But the-- for example, we have-- competition crom-- coming from India in certain services.&nbsp; Programming services.&nbsp; We have competition coming from-- Russia in programming services.&nbsp; There are some smart kids up in Siberia who are vanquished there with their parents, you know.&nbsp; But they're-- so they're supplying services in the market too there.&nbsp; Medical services, again, I go back to-- some of the medical travels as in-- going to India.&nbsp; Or even Brazil.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Just quickly, I'd love to get your take on the economy.&nbsp; You mentioned that you thought the United States would have a hard time growing at two percent.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I assume that's kind of long-term or medium-term.&nbsp; How do you see the economy in the short-term and then in the longer-term?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I think we have a lot of weakness still in the short-term.&nbsp; I think that there's been almost a wholesale destruction of the things that make-- a nation-- and has made-- has made an-- America-- strong.&nbsp; There is a proper role for government in-- in-- in society, but the role is to create the environment in which people have an incentive to be honest, get educated, work instead of goof off, save their money, start a business, innovate, invent and-- and engage in productive risk taking.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, I-- I don't see anything coming out of the administration now which addresses those issues.&nbsp; Instead the policy has been just spent and print money and that's going to solve the problem.&nbsp; That's-- if that worked we would all be fabulously wealthy by the gov-- through the government spending and printing money.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">What works is for you and me to have an incentive to be rich.&nbsp; Well, I know I'm-- I know my taxes are going up.&nbsp; Does that make me want to work?&nbsp; I-- I get-- I get taxed when I work.&nbsp; I get taxed for producing.&nbsp; So I-- I think that we're going to-- it's going to be a decade of slow growth for America until we go back to some of the principles-- of what makes an economy strong.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But do you think we're on the verge of maybe changing, moving in the other direction?&nbsp; I mean people talk about-- about what's going to happen in the next election or maybe even in the election after that.&nbsp; That there's a kind of dissatisfaction with-- the interventions that the government has-- has already fostered on the economy.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I certainly hope so and increasingly I do think so.&nbsp; I think that-- so many Americans are hot right now that-- as my fend-- friend-- Fred Smith at the Competitive Enterprise Institute likes to say, "America's molten."&nbsp; And the question is what shape we're going to pour ourselves into.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Are we going to pour ourselves in the shape of Western European democratic socialist state?&nbsp; You know, socialist democratic.&nbsp; Demo-- democracy can bring you socialism once the majority of the people to vote themselves money from-- the minority.&nbsp; Or are we going to pour ourselves more into something like a constitutional democracy?&nbsp; I personally hope we get back more to a constitutional-- based system and-- and less where we put everything up for vote.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Thank you, Michael Cox.&nbsp; I think that's a good place to end.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>MICHAEL COX:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Thank you, Jim.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Before we go, I want to remind viewers that you can catch <i>Ideas in Action</i> whenever and wherever you choose.&nbsp; To watch complete shows, just go to our website, IdeasinActionTV.com, or download a podcast from the iTunes store.&nbsp; (MUSIC) That's it for this week's <i>Ideas in Action.</i>&nbsp; I'm Jim Glassman.&nbsp; Thanks for watching.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">For more information visit us at IdeasInActionTV.com.&nbsp; Funding for <i>Ideas in Action </i><sub>is</sub> provided by <i>Investor's Business Daily</i>.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; <i>Investor's Business Daily</i> helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com.&nbsp; (MUSIC) This program is a production of Grace Creek Media and the George W. Bush Institute, which are solely responsible for its content.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>* * *END OF AUDIO* * *</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>* * *END OF TRANSCRIPT* * *</p></blockquote>


























































































































































































































































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<entry>
    <title>North Korea: Dissidents&apos; Fight for Freedom - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/01/north-korea-dissidents-fight-for-freedom.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42259</id>

    <published>2013-01-22T17:33:57Z</published>
    <updated>2013-01-25T20:04:22Z</updated>

    <summary><![CDATA[Washington Post Op-Ed columnist Michael Gerson traveled to Seoul, South Korea to interview&nbsp;North Koreans who escaped from one of the most repressive and cruel regimes in the world.&nbsp;&nbsp;His conversation with Jim intersperses what he learned with stories told by the...]]></summary>
    <author>
        <name>Emily Johnson</name>
        
    </author>
    
        <category term="Episode 36" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="aidanddevelopment" label="Aid and Development" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="asia" label="Asia" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="businessandeconomy" label="Business and Economy" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="government" label="Government" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="kimjongil" label="Kim Jong-il" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="korea" label="Korea" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="michaelgerson" label="Michael Gerson" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="northkorea" label="North Korea" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="northkoreans" label="North Koreans" scheme="http://www.sixapart.com/ns/types#tag" />
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        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 14.0px Arial">Washington Post Op-Ed columnist Michael Gerson traveled to Seoul, South Korea to interview&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 14.0px Arial">North Koreans who escaped from one of the most repressive and cruel regimes in the world.&nbsp;&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 14.0px Arial">His conversation with Jim intersperses what he learned with stories told by the dissidents&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 14.0px Arial">themselves about the ways the regime controls the population of North Korea and how they&nbsp;</p><p style="margin: 0.0px 0.0px 0.0px 0.0px; font: 14.0px Arial">managed to escape.&nbsp;</p></blockquote>

<div class="zemanta-pixie" style="margin-top:10px;height:15px"><br /><span class="zem-script more-related pretty-attribution"><script type="text/javascript" src="http://static.zemanta.com/readside/loader.js" defer="defer"></script></span></div>]]>
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"></blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre"><div><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></span></div></span></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre"><div><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></span></div></span></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Welcome to <i>Ideas In Action</i>, a television series about ideas and their consequences.&nbsp; I'm Jim Glassman.&nbsp; This week, for citizens of North Korea, speaking out against the regime of Kim Jong-Il is dangerous business.&nbsp; The penalty is death.&nbsp; Family members of dissenters can be sent to prison camps.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Today, North Koreans who have managed to escape are working to bring news of the outside world to their compatriots inside North Korea.&nbsp; But what kind of messages can foster opposition or bring hope to a population that is oppressed, brain-washed, and only barely scraping by?&nbsp; Joining me to explore this topic is Michael Gerson, columnist for <i>The Washington Post</i> and former speech-writer to President George&nbsp;W. Bush.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>He recently visited South Korea where he interviewed North Korean dissidents.&nbsp; The topic this week, "North Korea:&nbsp; Voices of Dissent."&nbsp; This is <i>Ideas In Action</i>.&nbsp; (MUSIC)<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>ANNOUNCER:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Funding for Ideas In Action is provided by <i>Investor's Business Daily</i>.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; <i>Investor's Business Daily</i> helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>This footage, smuggled out of North Korea, shows a population where hunger and poverty are still widespread years after the great famine of the 1990s.&nbsp; Defectors from North Korea say those inside have little or no knowledge of the outside world except the lies told by the regime.&nbsp; The defectors are working to reverse that information blackout.&nbsp; But can they change the mindset of a people long deluded by a paranoid and reclusive regime? Michael Gerson, welcome to <i>Ideas In Action</i>.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Great to be with you.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>You know, you-- you just recently wrote a column in <i>The Washington Post</i> about North Korean defectors, exiles-- who are now living in South Korea.&nbsp; What drew you to this story?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, it's one of the great flash points of the world.&nbsp; I mean, the tensions are unbelievably high.&nbsp; North Korea recently sunk a South Korean ship that's, really, an act of war in many ways.&nbsp; But it's an interesting foreign policy issue because the real progress, I think, is likely to come there not through pressuring the North Korean government, which is completely impervious to international pressure, as far as I can determine.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>But really through ending the isolation of the North Korean people-- so they can see the outside world.&nbsp; They can understand the circumstance they're in.&nbsp; They can begin to compare.&nbsp; And so, talking with people who made that transition that essentially had their eyes opened was very, very interesting.&nbsp; These are often people that now want to duplicate that experience for others in North Korea.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>They had their eyes opened, but while they were in North Korea--<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Right.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>--They were completely shut off from the rest of the world?&nbsp; I mean, how do, you can't even imagine how that works in an Internet age.&nbsp; What was it like talking to people like that?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, ten years ago, they were, very much were completely shut off from the outside world.&nbsp; There was almost no-- information coming in other than the propaganda of the regime, which is absurd, but widely believed.&nbsp; Because there is no alternatives out there.&nbsp; That's changed quite a bit in the last 10 years.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>So, how-- how are they getting information?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, initially, you know, people were getting-- there are still efforts to put up balloons to carry leaflets into, into North Korea.&nbsp; Those efforts are ongoing.&nbsp; And it's interesting that one of the people I talked to, Mr.&nbsp;Kim, was in-- influenced by that.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>See-- seeing a leaflet showing people in South Korea who were wearing different kinds of clothing from one another.&nbsp; So, for him, that was an eye-opening experience, just to see a leaflet showing that people could choose their own clothing.&nbsp; But that's the kind of level of oppression that you're dealing with in North Korea that such a thing would be a revelation.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>KIM SEONG-MIN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Whenever we woke up, we found the leaflets from South Korea dusting the whole area.&nbsp; There were so many fallen.&nbsp; From those leaflets, we could learn how many cars were produced annually in South Korea and about their national income.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>What is still clear in my memory was the picture of South Koreans in all different colorful clothes gathered in somewhere called Yeoh&nbsp;Wei&nbsp;Doh Square (PH), either for demonstrations or meetings.&nbsp; I remember their appearance was so colorful and fashionable.&nbsp; Later, by listening to the radio more, I learned that South Korea is not the place of hunger and poverty as was loudly advertised in North Korea and is not the country that kills all North Korean defectors after the so-called investigation.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>What about radio?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well-- you know, there are, there's short-wave radio-- the efforts that-- that are made to-- to try to influence there.&nbsp; And there are, people can get little radios, which are smuggled into the country or bought from China now.&nbsp; Because the Chinese border is a long border with North Korea.&nbsp; It's relatively open and, you know, be it through corruption.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Right.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>And-- and so people can get that, can get radios.&nbsp; But maybe the most important aspect is now that people can get cell phones-- essentially, Chinese cell phones that work on Chinese cell phone networks across the border.&nbsp; That doesn't reach all of Korea, but it reaches much of that border region and that's a big factor now.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>So, the people you talked to are dissidents, I mean, are people who are really trying to change the system in North Korea.&nbsp; How do they do that?&nbsp; How do they communicate?&nbsp; Are they, is it all by making phone calls or-- and what are they actually doing?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, some of it really is-- most of it is really an information campaign.&nbsp; They're trying to get information in North Korea now.&nbsp; The traditional way is that they sometimes did that in the past where actually sewing things into their clothing to get across the border.&nbsp; Information out of North Korea, information in.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>But now, you recently, for example, have had some executions in North Korean-- prison camps that were actually captured on video and gotten out-- on the internet, okay.&nbsp; So that's-- that's a big change.&nbsp; I-- I think the North Korean method of social control is coming up against new technology where you can essentially get, for example, bibles and-- and Christian material, which is one of the main-- motivations for people getting information across the border.&nbsp; You can get whole libraries on-- on a zip drive now.&nbsp; And that-- that's a big change.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>So, is there any evidence that things are changing within North Korea?&nbsp; That is to say, are there, are there more people there who understand what's happening in the rest of the world?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>It's, you know, to some extent, it's hard to determine.&nbsp; There's no dissent in North Korea because it would mean immediate imprisonment, okay.&nbsp; But awareness seems to be increasing along with technology which seems to be the-- the seed of dissent, the beginning.&nbsp; Now, the one large factor that was recently is that they did a currency devaluation in-- in North Korea, which under normal circumstances would be unquestioned.&nbsp; But this really took a lot of the wealth that people had accumulated, okay.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Oh, right, it was devastating, it was.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>It was devastating to people's savings, to other things.&nbsp; And there was real dissent.&nbsp; The government actually had to back down from the devaluation, modify the terms-- and then ended up executing someone who had been involved in the-- in the devaluation itself.&nbsp; A lot of the North Korean-- dissidents believe that was an important moment where you actually had grumbling at the market, you know, with people that saw their whole wealth-- confiscated by the government.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>And, you know, North Korea is an officially socialist society, but it's really a corrupt market-oriented economy, okay.&nbsp; All of the real economic activity is done outside the official channels of-- of the socialist system.&nbsp; And so, people do have some wealth in those circumstances.&nbsp; And they reacted very, very badly when it was attempted to be taken away.&nbsp; And the government had to respond.&nbsp; The people who watch this situation find that unprecedented in any many ways.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>I mean, you ju-- you talk about the long border with China-- is there, are there lots of people actually moving back and forth across that border, in South Korea?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, I wouldn't say lots of people.&nbsp; But because the system there is so corrupt, we view it as a totalitarian system, but in many ways, it's a kleptocracy, okay.&nbsp; I mean, the corruption is rampant.&nbsp; It's really in-- like a regime run by a mafia family, okay.&nbsp; That's the Kim family there.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; ">'<span class="Apple-tab-span" style="white-space:pre">	</span>And so-- it is possible, if you have the money to get across the border.&nbsp; There are actually brokers who do this fairly regularly now, who can get, if-- if you have a relative in South Korea that can pay, it's often possible to get someone out of North Korea.&nbsp; But that's not an option for most people.&nbsp; But it-- but the brokers do have an effective-- market in human beings.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>But then what happens when you get to China?&nbsp; The Chinese-- are not happy to see people moving across the border from North Korea.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>That-- that's actually true-- you know, the estimates vary, but a significant portion of those people who get out of North Korea are-- are arrested and questioned by the-- by the Chinese government and returned to often, to camps and death.&nbsp; I mean, there's no question.&nbsp; They are complicit in-- in this-- in many ways.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>But that's the Chinese government.&nbsp; There are also a lot of-- brokers and others who are Chinese that-- operate what is essentially a market-oriented underground railroad.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Could you tell us a-- a story involving one of the people that you interviewed about how that person actually got out of North Korea and went in South Korea?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, I mean, Mr. Kim, one man that I interviewed, was-- I-- officer in the military-- had escaped to the North.&nbsp; Was captured and questioned by the Chinese and returned to North Korea where he was sent to the camp and tortured.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>KIM SEONG-MIN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Normally, they beat people real hard for basic investigation or any dissatisfaction, or when they caught somebody hiding identification like myself.&nbsp; Their beating and torture is beyond imagination.&nbsp; What happened next was I was sent to my previous unit under escort.&nbsp; On the way to my former army unit for punishment, I broke the train window, jumped off and escaped northward for nine days.&nbsp; Riding on top of the train.&nbsp; Riding on an ox cart.&nbsp; And sometimes on foot.&nbsp; Finally, again, I reached the border, crossed it.&nbsp; And after 40 days, sorry, 50 days, I set foot on Chinese soil again and began a defector's life there.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>It's that kind of story that, you know, how committed these-- these people are-- to-- and then to go into South Korea and devote their lives to then providing information-- you know, about the regime to the-- to the, you know, people they left.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>And does the South Korean government support the activities of these North Koreans?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, it's been one of the problems-- you know, you talk to the-- author of "The Aquariums of Pyongyang", the South Korean government actually has pre-- prevented in the past-- North Koreans dissidents from going on television, from getting attention.&nbsp; Because it was seen a provocative-- now, that's changed with-- a new president in-- in South Korea.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>It's-- there's a much more forward-leaning policy now that-- that has ended the ATM policy essentially said you only get money if you do certain things rather than preemptive concessions.&nbsp; And there are government officials now who are beginning to cooperate on a broader information campaign-- in the north, which was abandoned for a decade.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>You-- you mention this book, "Aquariums of Pyongyang," which is really an extraordinary book.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Right.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>About a-- a young, well, he-- he was, went into the camps when, I think, he was nine years old.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Right.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>And managed to escape.&nbsp; And you interviewed him.&nbsp; Kang Chol-Hwan.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>KANG CHOL-HWAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>In North Korea when it is confirmed that anyone is involved in dissident activities, he is immediately executed.&nbsp; In addition to that, the whole family is sent to gulags.&nbsp; So, the experiences of other countries that achieved freedom and democracy are completely different from North Korea.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Because it is an extremely oppressive state, things cannot come out on the surface.&nbsp; But beneath the surface, a number of people are conducting a lot of different resistance activities.&nbsp; They are listening to radios and spreading this outside information to others.&nbsp; Forming groups and conducting a variety of anti-Kim Jong-il activities, such as writing graffiti, posting anti-Kim Jong-il posters.&nbsp; Distributing leaflets and so on.&nbsp; These are possible only when hidden.&nbsp; They cannot come out on the surface because nobody can avoid execution.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>He's been very critical of the South Korean government in the past.&nbsp; Has he changed his mind?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>I-- I think he has to some extent.&nbsp; There's-- there's a shift that's gone on.&nbsp; It was the second time I'd been with him because I'd been with him in the Oval Office with the President of the United States.&nbsp; I once worked for George&nbsp;W. Bush-- who-- met with him in the Oval Office, gave him a lot of exposure.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>What did he say about the effect of him meeting with President Bush?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, I-- I-- he-- he says that it had a marvelous transforming effect in a certain way.&nbsp; Basically, because at the time the South Kean-- Korean government had-- wanted very little to do with such dissidents, okay.&nbsp; And so this exposure raised the profile of these issues.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>KANG CHOL-HWAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>To me personally, it was a great honor.&nbsp; And in fact, our dissident and democracy movement for North Korea going beyond the normal civil support was greatly encouraged by the personal meeting and support from the United States president, the world leader.&nbsp; And not only myself, but also the majority of North Korean people, who are living under suppression by the regime and are in a way very much excited at the fact that the United States President honored me to meet him.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>That's because for a half century, the United States has been their sworn enemy in North Korea.&nbsp; And from such a country, a guy like myself, who is the worst victim of its society, was able to visit the White House and meet the President.&nbsp; This itself was a fresh shock to the North Korean people.&nbsp; And gave them a real hope.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>The-- the dissidents I'd talked to also said that the President's forthright-- descriptions of the North Korean regime, President Bush's descriptions, as being evil-- as being involved in profound violations of human rights, was-- was encouraging to-- North Korean dissidents in-- in very practical ways.&nbsp; It's often easy, particularly, in a situation like this, for these-- dissidents to feel alone and isolated.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Even in South Korea, there were members of, say, I-- I think it was the South Korean Socialist or Communist Party, who would protest their activities in South Korea-- because they thought they were provocative.&nbsp; And against the-- the North Korean government.&nbsp; Would force them to move their radio operations from place to place because of persecution within South Korea, okay.&nbsp; And so, I think a statement by the President endorsing this kind of approach, an American president, makes a big different to dissidents who often feel isolated.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Is-- is there a way to-- to deter the development and potential use of nuclear weapons in North Korea thought the activities of dissidents?&nbsp; Could there be-- a change, either in the regime or in the behavior of the regime as a result of what they're doing?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, it's-- it's a big debate.&nbsp; A debate on whether there could be reform within the-- the North Korean regime that might put them more on a Chinese path, okay?&nbsp; Or whether there essentially has to be an overthrow of the regime in some ways.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>I think there's very little prospect, from my own experience talking with South Korean officials that-- that deal with this, of internal reform.&nbsp; I think that this regime really recognizes that if they do a China-style reform, they're going to end up with an East Germany-kind of result, okay.&nbsp; There's only, you know, you're talking about half a dozen people that really run this country, this criminal regime that are going to end up like Mussolini.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Right.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>If-- if they make con-- significant concessions.&nbsp; It really does leave the option, the main realistic option, being this kind of information campaign, by which--&nbsp; you know, you get genuine dissent, the beginnings of genuine dissent in that country.&nbsp; There's plenty of reason for it.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, for example, I mean-- there's-- there's a lack, a severe lack of food, right?&nbsp; I mean, did you hear stories about famine and-- and-- and why?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, particularly, a few years ago.&nbsp; And they, it's sobering.&nbsp; Because they-- they lost hundreds of thousands of people.&nbsp; Maybe millions of people in a famine.&nbsp; And that didn't lead to the overthrow of the regime, okay.&nbsp; I mean, this is a-- you know, a very tightly controlled circumstance-- there-- there's not gre-- you know, the food shortages are not as acute as they were.&nbsp; But you still have, I mean, the dissidents told me, you still have people who-- you know, children and others who lost family members in this, in-- in these famines.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Then why doesn't the popul-- I mean, if it-- if the population is controlled by a few people, or a few people who are benefiting from it.&nbsp; And the conditions are so terrible, why isn't there change generated from below?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Well, it's the big question.&nbsp; And it-- but I think it's because the regime has successfully controlled the mental atmosphere of its citizens, the kind of psychological atmosphere of its citizens.&nbsp; They use a variety of techniques.&nbsp; The big lie.&nbsp; I mean, they essentially, many people, these dissidents were convinced that if they were to flee the country to the south that they would be executed by the South Koreans, for example, okay-- you know.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>The view of conditions in the outside world is very limited-- so it's an information totalitarianism that-- that goes on.&nbsp; That's why-- an information campaign may be the most practical way to approach this.&nbsp; In the U.S., maybe Japan, the South Korean government.&nbsp; Engaging in a much more creative use of technology, I think, is necessary in the-- in these circumstances.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Not just the, you know, the kind of the bull horns they have on the border, you know, with propaganda at the DMZ.&nbsp; You-- you really have to go the next step on this information campaign and get people real information in North Korea.&nbsp; That's what a lot of these dissidents are trying to do.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>But they don't have ways to receive that information other than radios and the-- and the North Koreans-- you're not allowed, of course, to listen to something like BBC or Voice of America-- and I-- I would assume that not too many people in-- in North Korea have-- computers.&nbsp; They're not able to use the internet.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Right.&nbsp; There is an upper class in-- in North Korea that has-- access, some access to computers-- North Korea is one of the only countries in the world, and I think it may be the only country that has not claimed its international inner-- internet address.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Oh, right.&nbsp; (LAUGHS)<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Okay, the one point, you know, dot-N-K.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Right, there is none, right.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>And, you know, so there-- there is an obvious attempt to try to restrict information like that.&nbsp; I think that the-- for, particularly, for the educated class, and there is one in North Korea, with a little more exposure, that, you know, you're talking about zip drives and other things that would allow them information to-- you know, that-- that they don't currently have.&nbsp; For the people themselves, though, a lot of these-- these dissidents, of Mr. Park, for example, I interviewed, they-- who do the balloons.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Right, right.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>With the-- they put a dollar bill.&nbsp; They put a, you know, a leaflet inside, okay-- and they provide information about-- the corruption of the regime.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>PARK SANG-HAK:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Last year alone, 3,200 North Korean defectors came to South Korea.&nbsp; Simply from these people, we can confirm clearly how much impact the balloon leaflets are creating in North Korean society.&nbsp; And how frightened and desperate the North Korean regime is about the launching.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>And secondly, until recently, our leaflets to North Korea had not easily provoked accusations from the authorities of the North Korean army and official media, who are so acute and open now.&nbsp; They have already held 10 South-North military talks to deal with this problem, threatening the lives of those who are sending leaflets.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Furthermore, in a statement, North Korea pointed a finger at our organization, Fighters for Free North Korea, denouncing that the betrayers who had run away to South Korea are using critical propaganda against their dear General Kim Jong-il.&nbsp; And the contents of our leaflets, as was said before, are mostly criticizing the military first, dictatorship of Kim Jong-il.&nbsp; Considering the worsening economic difficulties and mentality of the North Korean people, we began to include in the leaflets from last year and the year before, U.S. one dollar notes, the highest denomination, 5,000 North Korean won and five or ten Chinese Yuan notes.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>This was widely spread through word of mouth in North Korea, which says that one-dollar notes and 5,000 won are flying in with leaflets.&nbsp; To collect the money, more people are searching for leaflets, which provides more chances to read them.&nbsp; It is seriously damaging and shaking the North Korean system from inside.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>What can the United States do to-- to further the cause of regime change behavior in North Korea?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>I do think the most promising area, and I got some of this from the dissidents themselves, but also from South Koreans, the long-term effort, the ten-year effort that's going to make a difference in this circumstance, is when North Koreans know more about the outside world and the failure of their own regime.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>You know, the North Korean regime is a communist regime, but it's primarily a nationalist regime.&nbsp; And, you know, they-- they sell this argument that they're the only authentic representative of Korean identity.&nbsp; And just to inform people that there's another Korea out there that's successful, while North Korea itself is a total failure as a government and a society-- would, I think, create serious tensions in that society, you know, creative tensions that could-- that could lead to future change.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>And your sense in talking to these exiles is that most North Koreans don't know that.&nbsp; They don't know that within very few miles from where they are standing there is this hugely prosperous and free country?<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>I think that-- I think it's fair to say that many do not know-- it's hard to gauge in a certain way.&nbsp; Many, of course, live in fear.&nbsp; It's-- it's a, you know, highly oppressive totalitarian society.&nbsp; And-- so, even if they do know, it's very hard to-- to express that.&nbsp; They just live in denial trying to-- trying to-- take care of your own life in a very difficult circumstance.&nbsp; That's often the case.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>The-- the interesting thing about these interviews, that I asked each of them, is when does that moment take place?&nbsp; That moment of enlightenment or change?&nbsp; Like, this is now.&nbsp; You know, I'm different.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Right, right, right.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>I see the world differently, okay.&nbsp; And it varied in-- in these cases.&nbsp; But in many ways, it came from just basic knowledge of the outside world.&nbsp; Sometimes through the-- the experience of oppression.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>One other gentleman I talked to, talked about how he had seen, had been fairly high in the regime, and had been at a train station during the famine, okay.&nbsp; And saw a pile of bodies which was normal at the time.&nbsp; But literally, just a pile of bodies left there, where there were people gathered around which was not normal.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>KIM SEONG-MIN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>At first, I took it as not special because I could see such scenes any time passing by or traveling.&nbsp; But there were so many people gathered, so I approached nearer.&nbsp; A pile of corpses as stiff as firewood was covered with army blankets.&nbsp; I saw lice, (I'm not sure whether you have the same in America) were running in stripes.&nbsp; In two stripes.&nbsp; Later, I learned that after death, the lice usually all come out to escape the body.&nbsp; They form stripes.&nbsp; It was disgusting.&nbsp; Whenever I recall it, I still cannot eat anything.&nbsp; While people are starving to death like that, Kim Jong-il and his close friends, and those defending his rule, are for sure leading extravagant lives on the other end.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>That's the kind of thing that can make a big difference.&nbsp; We saw in Europe, you know, in Eastern Europe-- that people can live for decades in oppression.&nbsp; And then overnight, something clicks.&nbsp; You know, among a broad group of people that changes the nature of society.&nbsp; That's what these dissidents are hoping for in their own country.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Thank you, Michael Gerson.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>MICHAEL GERSON:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>Great, thank you.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>And before we go, I want to remind viewers that you can catch <i>Ideas In Action</i> whenever and wherever you choose.&nbsp; To watch complete shows, just go to our website:&nbsp; IdeasInActionTV.com or download a podcast from the iTunes store.&nbsp; And that's it for this week's <i>Ideas In Action</i>.&nbsp; I'm Jim Glassman. Thanks for watching.&nbsp; (MUSIC)<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>ANNOUNCER:<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>For more information, visit us at IdeasInActionTV.com.&nbsp; Funding for <i>Ideas In Action</i> is provided by <i>Investor's Business Daily</i>.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; <i>Investor's Business Daily</i> helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com.</span><font class="Apple-style-span" face="'Courier New'" size="3"><span class="Apple-style-span" style="font-size: 12px;"><br /></span></font><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">	</span>This program is a production of Grace Creek Media and the George W. Bush Institute, which are solely responsible for its content.<br /></span><span class="Apple-style-span" style="font-family: 'Courier New'; font-size: 12px; "><span class="Apple-tab-span" style="white-space:pre">		</span>* * *END OF AUDIO* * *</span><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 180px; text-indent: -180px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>* * *END OF TRANSCRIPT* * *</p></blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"></blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"></blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"></blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"></blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; 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    </content>
</entry>

<entry>
    <title>George Shultz: The Case for Nuclear Zero - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2013/01/george-shultz-the-case-for-nuclear-zero.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42248</id>

    <published>2013-01-04T18:23:50Z</published>
    <updated>2013-01-25T18:01:24Z</updated>

    <summary><![CDATA[George Shultz served in four Administrations, serving as an economic advisor to three Presidents before&nbsp;turning his efforts to international relations as Secretary of State for Ronald Reagan at the height of the Cold&nbsp;War. Still actively analyzing policy at the age...]]></summary>
    <author>
        <name>Emily Johnson</name>
        
    </author>
    
        <category term="Episode 35" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="georgepshultz" label="George P. Shultz" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="georgeshultz" label="George Shultz" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="nuclearweapon" label="Nuclear weapon" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="unitedstates" label="United States" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="unitedstatessecretaryofstate" label="United States Secretary of State" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="warfareandconflict" label="Warfare and Conflict" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.ideasinactiontv.com/episodes/">
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">George Shultz served in four Administrations, serving as an economic advisor to three Presidents before&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">turning his efforts to international relations as Secretary of State for Ronald Reagan at the height of the Cold&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">War. Still actively analyzing policy at the age of 90, he has focused much of his recent efforts on reducing&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">the spread of nuclear weapons. Jim talks with him about his support for eliminating nuclear weapons, and&nbsp;</blockquote><blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;">the current state of American politics.

</blockquote><div class="zemanta-pixie" style="margin-top:10px;height:15px"><br /><span class="zem-script more-related pretty-attribution"><script type="text/javascript" src="http://static.zemanta.com/readside/loader.js" defer="defer"></script></span></div>]]>
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Welcome to <i>Ideas and Action</i>, a television series about ideas and their consequences.&nbsp; I'm Jim Glassman.&nbsp; This week, we're at the Hoover Institution on the campus of Stanford University, for a special conversation with former Secretary of State George Shultz.&nbsp; He's been eyewitness to some of the most important events of the 20th century.&nbsp; His most recent pursuit:&nbsp; ridding the world of nuclear weapons.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">The nuclear weapon is the first thing that's really come along, on a ballistic missile, since the British burned the White House in 1814, that can really do us immense damage.&nbsp; It's very much in our interest to get rid of these weapons.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">This week, a conversation with former Secretary of State, George Shultz.&nbsp; This is <i>Ideas in Action</i>.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>(MUSICAL INTERLUDE)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Funding for <i>Ideas in Action</i> is provided by Investor's Business Daily.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative, new companies and inventions.&nbsp; Investor's Business Daily helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Welcome to <i>Ideas in Action</i>, George Shultz.&nbsp; You wrote-- in 2007 in-- that America will soon enter a nuclear age, and I'm gonna quote, "more precarious, psychologically disorienting, and economically even more costly than was Cold War deterrence," end quote.&nbsp; Now-- is the future really gonna be more dangerous than the Cold War when we were worrying every second that the Russians would bomb us and that we-- or we would mistakenly bomb them?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, we were worried then and we should be worried now.&nbsp; In those days, we basically had two contending powers, each armed with nuclear weapons.&nbsp; We each knew that a nuclear exchange would wipe us both out.&nbsp; Wouldn't be anything left.&nbsp; So, that meant a certain restraint was imposed.&nbsp; That was what deterrence was thought about.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So, today--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Now--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Yeah?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--you have a different situation.&nbsp; More countries have nuclear weapons.&nbsp; What that means is that more fissile material is laying around.&nbsp; So, the more of it there is lying around, the more possible for-- it is for some rogue state or group like al-Qaeda, who keeps saying they wanna get a nuclear weapon, to get their hands on one.&nbsp; And those groups are suicidal in their orientation.&nbsp; They are almost, by definition, not deterrable.&nbsp; So, if they get a bomb, they get one to use it.&nbsp; And I think that's one of the reasons why I think the situation now is especially dangerous.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">As well as the fact that there's no-- there might be a situation where there's no return address on the nuclear weapon?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, if one of these organizations gets one, then-- you don't know what-- who-- who you're gonna retaliate against.&nbsp; They do all kinds of things even in a normal battlefield.&nbsp; They emplace their weaponry in civilian installations like hospitals or schools.&nbsp; Then they fire at you from there.&nbsp; When you fire back, you cause collateral damage, civilian casualties, which you don't want.&nbsp; I'm sure that a nuclear weapon probably would not be delivered by a ballistic missile.&nbsp; Probably it would be delivered in some other form.&nbsp; But at any rate, the consequences would be catastrophic.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So, in the past, we've relied on deterrents or mutually assured destruction-- as it was called.&nbsp; Now, you believe the answer is abolition of nuclear weapons.&nbsp; Is that correct?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">The nuclear weapon from the-- standpoint of the United States, the nuclear weapon is the first thing that's really come along, on a ballistic missile, since the British burned the White House in 1814, that can really do us immense damage.&nbsp; It's very much in our interest to get rid of these weapons.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And I think the same can be said for other countries.&nbsp; A nuclear explosion is-- has devastating consequences anywhere.&nbsp; So, we're better off to try to get rid of them.&nbsp; And I'm working with a group of people, some here at Hoover in Stanford, and some around the country, particularly Henry Kissinger, Bill Perry here at Stanford, Sam Nunn at the Nuclear Threat Initiative.&nbsp; Two of us are Democrats, two of us are Republicans.&nbsp; But we don't even talk about partisanship.&nbsp; We just talk about the problem and what to do about it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And to do-- what to do about it is-- is treaties that would-- where countries agree to lower their stockpiles of nuclear weapons?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">What to do about it is to set your vision and your goal, and ask yourself, "What are the steps you need to take to get there?"&nbsp; You need to get control of fissile material.&nbsp; I was encouraged that President Obama, some months ago, convened some 47 heads of government, including all the major ones, to discuss the subject of how do we get control of our fissile material.&nbsp; There's a lot of it lying around.&nbsp; And you wanna get control of it so somebody can't get it.&nbsp; How do you get control of the nuclear fuel cycle?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Nuclear power plants use enriched uranium.&nbsp; If you can learn how to enrich uranium to that level, you can enrich it for a weapon.&nbsp; And when you get through, the spent fuel can eventually be processed into plutonium.&nbsp; It's a little harder to make a bomb out of plutonium than it is enriched uranium.&nbsp; But that could be done, after all.&nbsp; The Nagasaki bomb was a plutonium bomb.&nbsp; And that was a long time ago.&nbsp; So-- that's another step.&nbsp; And there are a whole series of things that are doable, concrete things that we should get going on.&nbsp; And each step basically makes the situation safer.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But-- if you were Secretary of State today, what would you do about Iran?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, first of all, I would be trying to develop as many hard-hitting sanctions as possible.&nbsp; That's being done.&nbsp; It's hard to do, particularly because you need to get the cooperation of Russia and China.&nbsp; You're getting some, but not as full cooperation as I think is desirable.&nbsp; Second, I think that you use our information agencies to project into Iran information to the people of Iran about what's happening to them.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Their most talented scientists and engineers are being devoted to producing nuclear weapons.&nbsp; The meantime, they-- their refining capacity is very limited.&nbsp; And their refinery is not a particularly good one.&nbsp; They have to im-- they have lots of crude oil.&nbsp; They export it.&nbsp; But they can't produce their own product.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Because all their engineers and scientists are working on something else.&nbsp; So, they have riches in Iran.&nbsp; Their inflation rate is way up there, 40, 50 percent.&nbsp; Their unemployment is high.&nbsp; The protests that we've seen in Iran show that people understand this.&nbsp; They understand the regime is not working in-- in their interest.&nbsp; So, we need to fan that flame, and-- and let them know which side we're on.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">How do-- how do you feel the Obama administration is doing at-- thwarting-- Iranian acquisition of a nuclear weapon?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">They're certainly very aware of the problem.&nbsp; Everybody is.&nbsp; I think they have been working the sanctions issue strongly.&nbsp; So, I'm in favor of that.&nbsp; I didn't think they came on anywhere near as strong in support of the dissident movement that we saw in Iran.&nbsp; And I would advocate, as I said earlier, doing much more with that.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Let's just switch to North Korea, 'cause I think-- that-- that certainly is the other urgent problem.&nbsp; And you say the North Koreans-- seem to have nuclear weapons.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">They do.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And-- but how much of--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Not much.&nbsp; But they have some.&nbsp; And they've demonstrated the ability to produce one.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And how much of a threat are they at this point?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">They are getting away with murder all the time.&nbsp; For instance, they recently sank a South Korean warship.&nbsp; That's an act of war.&nbsp; Our U.N. Security Council didn't even name North Korea in its commentary on that event.&nbsp; So, one of the things we need is a stronger, more decisive security council with some teeth in it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I mean, are-- are you worried that maybe one of the reasons that the security council didn't name North Korea is just fear that the North Koreans now have nuclear weapons and we shouldn't rile them up in any way?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I think what the North Koreans have done is put a range of artillery, high-powered artillery, not too far from their border, all aimed at Seoul.&nbsp; And so, they say, "If you mess with us, we'll decimate Seoul."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Let me take you to another part of the world where nuclear weapons are important.&nbsp; And that is Pakistan.&nbsp; Pakistan and India have had tensions for many, many years.&nbsp; Is that another slash point?&nbsp; I mean, is-- is-- is that an area that-- concerns you?&nbsp; And what can we do about it?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Of course, it's an area of concern.&nbsp; They both have nuclear weapons.&nbsp; But they have long-standing disputes.&nbsp; And there's lots of terrorist activity going on.&nbsp; Then you have the complication of Afghanistan, and the interests of both of them in Afghanistan, and the-- all of the ambiguities about Pakistan's attitude toward the Taliban.&nbsp; So, it's a very complex, related kind of situation to work with.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And is there a way that the Pakistanis-- could reduce-- Or is there a way we can persuade the Pakistanis to reduce-- their nuclear weapons?&nbsp; I mean, are they kind of on your agenda for making-- for-- for--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Of course.&nbsp; Everybody's on the agenda.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But-- but especially-- but especially the Pakistanis.&nbsp; I mean, I mean, I-- I just think there are a lotta people who are concerned.&nbsp; You got a country where there's not much in the way of-- a central government.&nbsp; And obviously, they're havin' lots of problems with-- with-- terrorists on the border, as you say.&nbsp; And-- and they have a nuclear weapon.&nbsp; I mean-- as-- as you look across the entire world at-- I mean, North Korea has a problem, absolutely.&nbsp; But Pakistan has a pretty weak government.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, but if you say to Pakistan, "Why don't you get rid of your nuclear weapons," and nobody else does, that's a non-starter.&nbsp; If I were Pakistan, I'd throw you out.&nbsp; That's why we're saying, "Let's have a worldwide effort to get rid of nuclear weapons, to reduce them and eventually get rid of them."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">That was Ronald Reagan's view.&nbsp; That was John F. Kennedy's view.&nbsp; It was basically Eisenhower's view.&nbsp; So, when you get that overall purpose stated, and then if you see this becoming something on the global agenda, then you can fit reducing Pakistan's weapons into that, as well as India's and China's.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So, do you consider Russia a threat at all?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Not a real threat to us.&nbsp; But Russia does have this gigantic number of nuclear weapons.&nbsp; And they're aimed at us.&nbsp; And we have it aimed at them.&nbsp; I think it's insane.&nbsp; Cold War is over.&nbsp; And we don't want the chance of an accident or anything.&nbsp; We should de-alert these weapons.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But Russia has huge problems itself.&nbsp; Russia has a stunning demography.&nbsp; Its birthrate is very low.&nbsp; The longevity of men is only 60.&nbsp; Women live 12 years longer than men in Russia.&nbsp; Its population is declining, not "will decline," is declining. Its labor force is shrinking in proportion to its total.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And-- and do the Russians still have a lot of loose nuclear material, fissile material, lying around?&nbsp; Or have we done a good job in-- in trying to get rid of that?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I can't answer that definitively.&nbsp; But I think we've done a very good job.&nbsp; Senators Nunn and Lugar produced a program called the Nunn-Lugar program that has worked on that.&nbsp; And it's not only done substantive things.&nbsp; But it's had the advantage of putting good technically oriented people on both sides, in touch with each other.&nbsp; And that kind of relationship pays off in the long run.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Let's-- turn to the issue of terrorism.&nbsp; You-- you gave a speech in I think the early 1980s, about preemption of terrorism, which was somewhat controversial in its day, but very, obviously, quite prescient.&nbsp; Do you think we're doing enough to combat terrorism?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You can never do enough.&nbsp; And at the same time, you don't want to do too much, in the sense of do things that compromise our own values.&nbsp; But I thought when I was in office, and the speech you referred to was in 1984, and I said, "This is a threat, and it can cause such damage that we ought to try to stop it before it takes place, rather than take a law enforcement mentality that says, 'Wait for something to happen and then try to find the people who did it.'"&nbsp; If you're going to have 1,000 people killed, that's not very intelligent.&nbsp; You wanna-- if you can find out about it and stop it from happening, that's much better.&nbsp; So, I think preemption makes sense.&nbsp; And that's what I said.&nbsp; And it was controversial.&nbsp; But I stick by my opinion.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And are we-- are we doing enough on the preemption front?&nbsp; I guess a lot of-- a lot of it, we're not gonna know about.&nbsp; But--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I know when I was in office, that there were a lot of terrorist attacks that didn't take place because through our intelligence or through our collaborative relationships with the intelligence in other countries, we found out about them before they took place and managed to abort them.&nbsp; I assume that still is taking place, and that countries all over the world have taken steps in their own police work to-- try to abort these things.&nbsp; Occasionally, you hear about something of that kind that took place.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You-- you are-- so well known as-- a statesman and a diplomat, that-- many people don't even know that you spent much of your career in the area of economics, finance and business.&nbsp; And I wanna just turn to a few questions about-- about the economy.&nbsp; What-- what do you think is the biggest problem that faces the U.S. economy today?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">The lack of growth.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So, how do-- how do we get growth started again?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, that's the key.&nbsp; Right now, we have in place what I would call an anti-growth policy.&nbsp; We have huge uncertainty about practically everything, including what's going to happen to tax rates.&nbsp; That tends to freeze everything up.&nbsp; So, we've got to remember that people respond to things that look like they're gonna stay there.&nbsp; Temporary things just create displacement of stuff from one time to another time.&nbsp; So, we need to have an economic policy in which we say, "This is a good policy.&nbsp; This will get us where we want to go.&nbsp; And here it is, and we're sticking to it."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Then, I think we need to recognize, incentives matter.&nbsp; People respond to incentives.&nbsp; You see that all over the place.&nbsp; And probably the biggest in center is tax rates.&nbsp; The idea that in this setting there should be some, even, uncertainty about whether we're gonna raise tax rates, is absurd.&nbsp; You don't wanna raise tax rates when you're trying to stimulate activity.&nbsp; Quite the other way around.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So, gets things on a permanent basis.&nbsp; Make it clear to people; I would say the tax regime now in place is going to stay in place.&nbsp; Don't say for two years.&nbsp; All you do is create another cliff.&nbsp; Say, "These are the-- this is the tax regime.&nbsp; And maybe it'll be changed some time, but that'll be by some Congressional action, not some automatic cliff that's out there."&nbsp; So, that's something you need to do.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I think we need to create a sense of a rule of law, that people are going to be allowed to fail if they blow it, and bankruptcies are gonna take place along a clear rule-based system, not ad hoc interventions by people.&nbsp; When people say, "The government needs more power," I say, "Well, wait a minute.&nbsp; What we need is a clear statement of what's going to happen if somebody blows it in their company."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">How's it going to work?&nbsp; And not have a lot of discretion in a governmental people.&nbsp; I'd like to see our federal reserve also be a little bit more rules-based.&nbsp; I think one of the reasons we got into all this trouble was too loose a monetary policy for too long.&nbsp; So, there's some basic principles out there that have worked in the past.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">On the issue of taxes, do you think, for example, if President Obama and Congress said, just-- indicated immediately, that their intention is to extend the tax rate reductions that have been in place since 2001, that it would have an immediate effect in the economy as these incentives change, as you said?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I wouldn't say extend.&nbsp; I would say regard them as permanent.&nbsp; They're never gonna be changed.&nbsp; They're like any other part of the tax system.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And the reason to regard them as is permanent-- as permanent--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So that people can plan.&nbsp; So, you can think ahead.&nbsp; I'm a businessman, or I'm an individual entrepreneur.&nbsp; I'm trying to start a business.&nbsp; What's the tax environment that I'm gonna operate in?&nbsp; Makes a difference.&nbsp; Most of these small businesses are what are called S-corporations.&nbsp; So, they're taxed by the individual income tax rates.&nbsp; That's why messing around with those rates makes such-- a dent on entrepreneurs trying to start up new businesses or small businesses.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You know, with the-- with the anomalies of this recession and the sluggish period that's-- that's followed is that-- countries in the so-called developing world have-- many of them have actually done very well.&nbsp; India recently said it-- it's growing at nine percent.&nbsp; China's growing at, I think, about the same rate.&nbsp; Indonesia, Brazil, countries like that, are doing much better than developed countries.&nbsp; What-- what's the reason for that?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">The re-- basic reason is that they've adopted the principles that we've espoused and sold to them, and they're working.&nbsp; While we're abandoning those principles.&nbsp; So, we just go back to first principles, we'll do great.&nbsp; We're a wonderful country.&nbsp; We have, as Ronald Reagan used to say, our best days are ahead.&nbsp; And we just have to get back to common sense.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You-- you've written about social security.&nbsp; There was an attempt in the second half of the Bush-- tenure to-- the second Bush tenure, to-- reform social security and bring more private choice into it.&nbsp; What do you think oughta be done about social security?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, first of all, we have to recognize that the social security system is now in trouble.&nbsp; We are paying out more than we're taking in.&nbsp; And that will grow.&nbsp; There is something called a trust fund.&nbsp; It basically exists only on paper.&nbsp; It's as though you decided to put money aside for your child's college education and you put money into it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And every once in a while, you needed some money.&nbsp; So, you took it out and put in an IOU.&nbsp; Now, it comes time for college, and you've got a hat full of IOUs.&nbsp; In other words, useless.&nbsp; So, we've got to-- to take this on.&nbsp; I think we should start with a fundamental rule, namely that nobody over, say, the age of 55 is affected at all.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">In other words, this reform is not about old people.&nbsp; It's about young people.&nbsp; And seeing that the system remains solid and intact for them, that's what reform is about.&nbsp; Right now, the system is arranged in such a way that a person, say, 30 years old today, would have a real income from social security about 50 percent greater than a current retiree.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">That-- I don't think we can afford that.&nbsp; So, we should change.&nbsp; And it's fairly easy to see conceptually how you do it.&nbsp; You change the method of indexing.&nbsp; That is, you change it in such a way that you are guaranteed the real value of the benefit that you become entitled to.&nbsp; And also, the calculation of that real benefit is done in such a way that the real value of your contributions is maintained by indexing for any change in prices.&nbsp; So, I think it's a reasonably equitable way of doing it.&nbsp; And it can be done in such a manner that some people on the lower end of the income scale are treated a little more generally-- generously than those toward the top.&nbsp; And I think that's okay.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So, you-- you-- you fought with the Marines in World War II.&nbsp; And you started your government career beyond the Marines in-- in the Eisenhower administration.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And you're talking about a change in social security that requires a certain amount of political courage or statesmanship or collaboration.&nbsp; Do you see those kinds of qualities today among members of Congress and people in government?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I know quite a few members of Congress and members of the House and the Senate.&nbsp; And a lot of them that I know are terrific people.&nbsp; So people are there, somehow the atmosphere isn't good.&nbsp; But in 1983 when President Reagan was president, Tip O'Neill was Speaker of the House.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Somehow, those two Irishmen figured out how to make a major reform in social security.&nbsp; That's the last time the problem then, was acute, was faced up to.&nbsp; It was dealt with.&nbsp; And what they did has lasted all the way till now.&nbsp; So, if these two Irishmen can do it, why not us today?&nbsp; It's possible.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And I think that's a good point to end.&nbsp; Thank you, George Shultz.&nbsp; Thanks for coming.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>GEORGE SHULTZ:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Thank you.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And before we go, I want to remind viewers that you can watch <i>Ideas in Action</i> whenever and wherever you want.&nbsp; Just go to our website to watch complete episodes or download podcasts to your MP3 player through the iTunes store.&nbsp; Wherever you watch, be sure to join us next time.&nbsp; That's it for this episode.&nbsp; For <i>Ideas in Action</i>, I'm Jim Glassman.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>(MUSICAL INTERLUDE)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; 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Bush Institute, which are solely responsible for its content.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><span class="Apple-tab-span" style="white-space:pre">	</span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>* * *END OF AUDIO* * *</p></blockquote>


































































































































































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<entry>
    <title>Thomas Sowell: A Conversation With One of America&apos;s Leading Conservatives - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2012/12/thomas-sowell.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42237</id>

    <published>2012-12-20T15:38:42Z</published>
    <updated>2013-02-20T20:03:10Z</updated>

    <summary>Thomas Sowell is considered one of America&apos;s leading conservatives. He analyzes political, economic and foreign policy via his nationally syndicated column. His most recent book is titled Dismantling America, and in it he gives a stark warning about the direction...</summary>
    <author>
        <name>Emily Johnson</name>
        
    </author>
    
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    <category term="thomassowell" label="Thomas Sowell" scheme="http://www.sixapart.com/ns/types#tag" />
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        <![CDATA[<p>Thomas Sowell is considered one of America's leading conservatives. He analyzes political, economic and foreign policy via his nationally syndicated column. His most recent book is titled Dismantling America, and in it he gives a stark warning about the direction of the country. He and Jim discuss the current state of America and Sowell's view of the future.</p>]]>
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Welcome to <i>Ideas In Action</i>, a television series about ideas and their consequences.&nbsp; I'm Jim Glassman.&nbsp; We're here at the Hoover Institution on the campus of Stanford University to meet with Thomas Sowell, economist and author of 46 books, including most recently <i>Dismantling America</i>, which delivers a stark warning about the direction the country is headed.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">People are saying, "You know?&nbsp; Iran may have only a couple of nuclear bombs.&nbsp; That's all they need.&nbsp; If they're-- if they're willing to die and we're not then there's nothing short of surrender."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">This is <i>Ideas In Action</i>.&nbsp; (MUSIC)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Funding for <i>Ideas In Action</i> is provided by Investor's Business Daily, every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; Investor's Business Daily helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Thomas Sowell's an economist, columnist and author of 46 books.&nbsp; He is a scholar-in-residence at the Hoover Institution here on the campus of Stanford University in Palo Alto, California.&nbsp; His most recent book is <i>Dismantling America</i> <i>and Other Controversial Essays</i>.&nbsp; Welcome, Thomas Sowell, to <i>Ideas In Action</i>.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Your latest book, your 46th, is titled <i>Dismantling America</i>.&nbsp; And in the preface you write this:&nbsp; "The collapse of a civilization is not just the replacement of rulers or institutions with new rulers and new institutions.&nbsp; It is the destruction of a whole way of life and the painful, and sometimes pathetic, attempts to begin rebuilding amid the ruins.&nbsp; Is that where America is headed?&nbsp; I believe it is.&nbsp; Our only saving grace is that we are not there yet, and that nothing is inevitable until it happens."&nbsp; Why do you believe that America is headed toward a collapse?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, domestically there's so many-- things going on that we've not-- you know, have-- have lost the sense of the values that the country has.&nbsp; And we now have an administration, which is very actively trying to change the very way we govern, the very way we live our lives.&nbsp; That's the domestic part.&nbsp; That's sort of the slow poison, if it were.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But the faster poison is that Iran is getting nuclear weapons.&nbsp; And people don't seem to understand what that means.&nbsp; The Japanese were a lot-- in 1945, were a lot tougher than we are today.&nbsp; And yet it took only two nuclear weapons to get them to surrender.&nbsp; So people are saying, "You know?&nbsp; Iran may have only a couple of nuclear bombs."&nbsp; That's all they need.&nbsp; If they're-- if they're willing to die and we're not then there's nothing short of surrender.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So what-- what do you think we should do about Iran?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Stop them from getting nuclear weapons.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And that would mean attacking them or--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Sure.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Or acquiescing in an Israeli attack?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yeah.&nbsp; I-- I'm-- you know, it's-- it's-- it's sad that-- that-- it's a question of acquiescing in an Israeli attack.&nbsp; There have been indications that Saudi Arabia will be quite willing to have Israeli planes fly over there at night and bomb-- Iran, and then of course lodge-- lodge a protest with the United Nations in the morning.&nbsp; But-- the very fact that they have to fly over Iraq-- fly around Iraq because there are American-- fighter planes there who-- who might shoot down the Israeli planes-- I mean, that really does show-- where we've come.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">You know?&nbsp; A lot of people recognize the threat of Iran.&nbsp; But you're actually one of the few people that I've talked to who really see it as a kind of-- you know, the-- the term these days is existential threat to the United States.&nbsp; It really changes our existence?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, ab-- absolutely.&nbsp; Going all the way back to the Ayatollah Khomeini-- he said that his--first loyalty is not to Iran, it's to Allah.&nbsp; And so if-- if-- you know, we can't deter them if-- with-- with the threat that we'll come in and destroy a whole lot of innocent Iranians.&nbsp; They don't care.&nbsp; I mean, you-- you can't deter suicide bombers.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So a deterrence worked-- we're here at the Hoover Institution, which is home to a lot of people who were architects of the deterrence policy.&nbsp; Deterrence worked during the Cold War.&nbsp; But you don't think it will work today?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No.&nbsp; Because you can't deter suicidal people.&nbsp; You either stop them or you don't stop them.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Do you think the administration is kind of distracted by what's going on, on the economic side and not paying enough attention to Iran?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Or do you think there's something more basic going on?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No.&nbsp; I-- I-- I don't think they ever intended to do anything serious to stop Iran.&nbsp; What they are-- what they-- what they are doing-- is a lot of charades at the United Nations-- which follows a whole-- years-- we've had all kinds of charades in the United Nations and at the-- League of Nations before that for the very same purpose, of giving the impression that you're doing something when you're not doing a thing.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I want to move back to the domestic situation.&nbsp; We've had a recession.&nbsp; And it appears that it's much more difficult to pull out of the sluggishness of-- of the economy than a lot of people thought.&nbsp; Do you think there's something fundamentally wrong with the American economic system?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No.&nbsp; There's something fundamentally wrong with the policies that are being followed.&nbsp; They're trying to relive the-- the New Deal of the 1930s.&nbsp; And the New Deal of the 1930s didn't work.&nbsp; So-- I mean, most people-- you know, there's this narrative out there that the reason we had massive unemployment in the '30s was because the market failed, the stock market crashed and you had all this tremendous unemployment.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Now, it so happens that the stock market-- for the 12 months following the stock market crash we never hit the double digits in unemployment.&nbsp; Unemployment peaked at nine percent two months after the stock market crashed and started going down.&nbsp; So the stock-- the-- the-- the unemployment rate was down to 6.3 percent when the federal government figured it had to intervene.&nbsp; And that's when the downward movement reversed and we never saw 6.3 percent again for the next decade.&nbsp; So, I mean, if-- if you follow the actual month-by-month employment number they're just clear as crystal that the-- the disaster came after federal intervention.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So you think that government intervention, in this case, and in previous cases-- but let's just talk about what's going on right now-- has actually made things worse?&nbsp; I mean, it's the reason that unemployment is as high as it is today?&nbsp; It would be lower if government hadn't done anything to--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yes.&nbsp; Well, you-- you can look at-- look at-- again, you can look at the numbers.&nbsp; One of-- one of the figures I've-- see, the un-- the unemployment figures really understate how much unemployment there is because there are people who simply stopped looking.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But the-- the figure that I like is the one-- what percentage of the adult population have jobs?&nbsp; And that figure has been declining steadily-- ever since the stimulus began.&nbsp; It's one of the many things where words-- trump reality.&nbsp; There's no signs that the stimulus has stimulated anything.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Businesses have record amounts of money sitting idle.&nbsp; Banks have left-- record amounts of money sitting idle.&nbsp; The public is saving more so than ever before.&nbsp; The velocity of circulation of money is lower than it's been in 50 years.&nbsp; So that-- to me, you can call it a stimulus.&nbsp; If you look at what happens it's a sedative.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">A sedative.&nbsp; I like that.&nbsp; Is-- and so-- and the sedative, is that-- is-- is that the result of the fact that businesses feel uncertainty or they don't want--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, absolutely.&nbsp; I mean, how-- how could you not feel uncertainty when-- Congress and the President are constantly dreaming up new bright ideas they want to try.&nbsp; You have no idea what the rules of the game are going to be.&nbsp; And when you-- and when you generate that kind of uncertainty people sit-- sit on their money and-- wait to see how things sort out.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And yet you do talk about-- the importance of human capital?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Uh-huh.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right?&nbsp; So in your own case you went to Howard University--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Uh-huh</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--On the GI Bill?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Then you-- then you transferred to Harvard?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Uh-huh.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But the GI Bill really was-- it was a government program?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Uh-huh.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Do you think that programs like that, which help improve human capital, are a good idea?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, it-- it depends-- it depends on what-- on-- everything is-- that-- the devil is in the details.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">What if-- okay.&nbsp; Let's just say that-- today we got a lot of veterans coming back from Iraq and Afghanistan.&nbsp; What if there were a GI Bill for them, meaning that if--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">What--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">They really could-- I-- I think the GI Bill paid-- right-- a hundred percent scholarship.&nbsp; Didn't it?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No, no.&nbsp; Well, it-- the one after World War II was a lot better than the one after the Korean War.&nbsp; So I had to do a lot of scuffling to-- to-- to make it.&nbsp; But--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">What about the one after World War II?&nbsp; What-- what about giving everybody--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, I would--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--A scholarship?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Do that in-- in a heartbeat.&nbsp; I suspect that a lot of the people-- on the other side would-- would not be happy with all these veterans who have a different view of the world suddenly-- getting all this education and becoming major players-- in-- in-- in the years ahead.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Let's talk about President Obama.&nbsp; Do you think he's a socialist?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I-- I-- no.&nbsp; I-- not-- not technically I suppose because, you see, in socialism, usually it means that-- government ownership are the means of production.&nbsp; The pattern he's following is much more like that of the fascist, where the government would-- leaves the means of production in private hands and the politicians tell them what to do.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And that's much more politically viable because after the government forces the private industry to do something and it turns our disastrously you can always haul the people from private industry up before Congressional committees, denounce them on television, and so forth-- leaving out the fact that it was you who forced them to do what they did.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And this is the way you see, for example, that the-- the health-- care reforms that were passed--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, I'm-- I'm-- I was thinking actually about the financial reforms, and particularly the housing-- collapse, that the people who-- Barney Frank in the House, Senator Chris Dodd in the Senate-- were the people who pushed for all kinds of mortgage-lending standards to be-- reduced, making mortgage lending enormously more risky than it had ever been before.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And when all of that collapsed they then-- they then summoned all the leaders of financial institutions up before their committees and spent hours denouncing them and so forth on nationwide television.&nbsp; I mean, they understand that the best defense is a good offense.&nbsp; And so-- this-- this is great political theatre.&nbsp; It has nothing to do with reality.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">What-- what about the private sector, though?&nbsp; I mean, you know, it-- it is true, isn't it, that there were lots of kind of risky bets that were being made with a lot of money which was private money certainly, but it would have a public effect. There are lots of kind of external effects to--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No.&nbsp; There-- there was-- it was some of that-- more and more often the risk was that the lenders-- one of the reasons lenders don't care whether-- whether you're really-- try-- a good risk, is they-- they may sell the mortgage to you-- and then they sell it-- they-- they-- they-- they make out the mortgage to you, then they sell it to Fannie Mae and Freddie Mac, and the risk now is Fannie Mae and Freddie Mac's risk.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I-- I wanted to ask a little bit more about how you see President Obama as a leader 'cause there were certainly-- very high hopes and I think they were broadly shared-- about him as a leader and yet how do you think he's turned out?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Terrible.&nbsp; But those hopes weren't based on anything he'd actually done.&nbsp; I mean, if you look at-- you know-- I was talking to my wife about that.&nbsp; The-- the irony of Martin Luther King's thing that you should be judged by the content of your character rather than the color of your skin-- if he had been judged by the content of his character he would never have made it through the primaries.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I wanted to hear your views on immigrants.&nbsp; What-- what do you think about immigration in general in the United States?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, I think first of all there's no such thing as an immigrant in general.&nbsp; I mean, there are some groups of immigrants-- who come to this country and add tremendously.&nbsp; There are others who come here and go on welfare.&nbsp; And-- I think one of the sad things is people tend to talk about immigrants in the abstract.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And-- there has never been a time in the history of the country when-- when immigrants from different places were all the same.&nbsp; And so I think one of the things the United States has to be able to do in the long run is control the border, first of all, because if you don't control the border it is absolutely irrelevant what your policy is, because other people will decide who gets in.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Now, this is-- a tough public-policy question, maybe even a moral question.&nbsp; What do we do about illegal immigrants who are in this country, supposedly ten million of them, who are already here?&nbsp; Can we change the law and kick them out?&nbsp; Or to-- do we give them a path to citizenship?&nbsp; Or what do we do?&nbsp; Or ignore them, which is what we're doing now?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">That-- well, ignoring them is the most politically expedient thing to do.&nbsp; The question is whether or not you want to enforce the law.&nbsp; And if you enforce the law I think you'll solve 90 percent of the problem.&nbsp; You know?&nbsp; If-- if it's-- if you're-- if-- if you're-- you're here illegally and you pay a price for that fewer people will come, and many of those who are here now may decide that it's time to leave.&nbsp; There are the better-- what-- you don't have to-- the silly notion that you have to search out every illegal-- immigrant-- nobody is even suggesting that.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But do you agree, for example, with what Arizona is doing where--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yes.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Okay.&nbsp; What-- what--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">They're-- they're enforcing the law.&nbsp; And it's ironic that the government has stood idly by while all kinds of-- cities across the country have publicly announced that they will not obey the law.&nbsp; And they did nothing.&nbsp; And now that Arizona says they're going to enforce the law they're starting lawsuits against Arizona.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So you don't think, for example-- there-- it was proposed by John McCain and President Bush supported this-- a kind of path to citizenship--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Where you say you've got--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">There's already been-- there's always been a path to citizenship.&nbsp; You just don't break into the country and expect to take that path.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Let me ask you another social issue that's important in California.&nbsp; Gay marriage.&nbsp; You're-- I know you don't like labels.&nbsp; But a lot of people consider you a libertarian.&nbsp; So what's wrong with-- a man and a man or a man-- a woman and a woman getting married?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, you know, we didn't allow polygamists to redefine marriage.&nbsp; I don't know why we should-- we should allow anybody else to redefine it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Here-- here in California, for example, through the-- the very-- very active referendum-- process, do you think that-- voters should be able to make that determination?&nbsp; In other words, if the voters of California say, "We say that marriage is between a man and a woman," that that should stand, that this is not something for the courts to intervene on?&nbsp; And vice versa, by the way, if they said, "Man and a man"?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, yeah.&nbsp; I mean-- I-- I don't see anything in the Constitution-- that-- that says otherwise.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Let's talk about philosophy.&nbsp; What-- what about-- liberalism?&nbsp; We've seen-- we've seen this-- this reform for health care that's come about.&nbsp; It's been passed.&nbsp; You talked-- earlier about-- some of these new regulations for finance.&nbsp; I mean, is-- is-- in any sense is there a kind of new breath-- does liberal-- have-- liberalism, is it-- is it gaining kind of like a second wind?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, I'm not sure that the-- that-- that liberalism is changed.&nbsp; I mean, the-- politics from it-- may-- will shift from time to time.&nbsp; But I don't-- I don't see any-- difference in what liberalism-- it-- it wants to impose what the elite thinks on-- on the public.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Now, conversely, for conservatives, are we-- you-- you've been critical of the Republican Party in saying that they're not promoting a particular government-- governing philosophy?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Uh-huh.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">It's more like, "Yeah.&nbsp; They keep talking about numbers"?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Uh-huh.&nbsp; The-- the idea seems to be that-- the way for Republicans to-- to win elections is to-- you know, water down Republicanism and deal with-- be a little more like Democrats.&nbsp; It amazes me because if you look at the Republicans who succeeded and the ones who failed-- I mean, Reagan won two consecutive landslides.&nbsp; Newt Gingrich took over the House of Representatives-- for the first time in 40 years.&nbsp; And then it's-- it's when you get the-- out of the wishy-washy-- you know-- I mean, the-- Bush 41 won-- won his election when he said, "Read my lips.&nbsp; No new taxes."&nbsp; And he lost when he started talking kinder and gentler.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Do you think that there's any hope for the Republican Party?&nbsp; You say we're entering the most critical election--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yes.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--In the history of the United States?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yes.&nbsp; Because if-- if you don't stop-- Obama-Reid-Pelosi-- by take-- by taking away-- some of their power in this election-- I don't see how you're going to stop them at all.&nbsp; I think-- I think they will take us to the-- past the point of no return.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">For example, if-- if-- let's suppose the Democrats hang onto-- the current majority in both Houses of Congress.&nbsp; I don't doubt for-- it won't matter that-- Obama-- has-- approval rating in the 40s.&nbsp; They can legalize enough illegal immigrants between now and the 2012 elections that he's in-- he's in for a second term.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And you worry about-- legal immigration for-- the-- its political effects as well as its economic and social--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, yeah.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Effects?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yeah.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">That this would be that-- that illegal immigrants represent-- a Democratic voting block?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, yes.&nbsp; Yes.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So just-- could you just elaborate on-- a little bit, when you say point of no return, what does that mean?&nbsp; Does that mean that-- is--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--This-- to go back to what we were talking about originally, with Iran?&nbsp; Is that part of it?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Iran is-- that's part of it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Or--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">That's a huge part of it.&nbsp; Because if we're-- if we don't retain our-- independence then the rest of it is-- is really secondary.&nbsp; But even just domestically, I mean, if-- if this-- medical thing goes through-- and if you look at the other things that he wants along with it, including this notion that no one seems to pay much attention to-- he wants to have-- a federal police force comparable in size to the-- to the military-- and you-- what-- what-- what is that for?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">When you think of-- these various tendencies of people who-- you know, czars doing this and czars doing that, people we-- we know-- we know nothing about, who don't go through confirmation-- I mean, this is really dismantling the-- the-- all the safeguards that were built into the Constitution to stop arbitrary power.&nbsp; And, you know, the things that are being done now are-- on-- an expansion of arbitrary power.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Just to get back to the-- to this-- the issue of Republicans, because, you know, it's an election between two different parties, if they're-- if you don't have very much faith in what happens when the Republicans govern then in a sense are we already past the point of no return?&nbsp; Or do you have hope that something will change within the Republican Party that will make it more, let's say principle--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, some things have already changed.&nbsp; The Tea Party, being one.&nbsp; But I think more fundamentally it was getting clobbered by the Democrats in two consecutive elections, which sometimes wakes people up.&nbsp; If-- if they-- I think-- it would've been-- a bad-- bad for the country if the Republicans had won both those elections because they'd have kept on drifting along the way they were.&nbsp; I mean, Bush-- you know, in the first-- his first term I believe he-- he vetoed no spending bills.&nbsp; Eventually it occurred to him that he might start vetoing these bills instead of just sitting there and going along to get along.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I'd like to know your-- your views on the Tea Party.&nbsp; You mentioned the Tea Party.&nbsp; What do you think of them?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, they're a very heterogeneous so I-- I guess it's so hard to say-- the Tea Party, I mean, they're-- a lot of different people.&nbsp; But I think-- I think the idea that ordinary people-- and I gather people who-- didn't ordinarily take part in politics for the most part, have-- have gotten aroused and are making themselves known.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And they seem to have gotten themselves aroused over specific economic issues.&nbsp; Obviously it's-- it's a big tent.&nbsp; But it's-- they-- they seem to be focusing on-- on spending.&nbsp; Do you think that's a good place to focus?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">It's one of the many good places to focus.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So-- you know, a lot of people say the big problem is that the deficit, and the debt, and that if you have-- yes, you should cut spending but what about these-- tax cuts that expire at the end of the year? &nbsp;</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, boy.&nbsp; You know?&nbsp; It's-- it's amazing how many things have--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I mean, you've heard this argument before.&nbsp; Haven't you?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, boy.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I'm not making this up.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yes.&nbsp; I know you're not.&nbsp; Unfortunately.&nbsp; It's-- it's-- a lot like so many things it gets down to semantics.&nbsp; When you're-- you can't just use the word taxes.&nbsp; There are tax rates and there are tax revenues.&nbsp; Now, when you cut the tax rates that doesn't cut the tax revenues necessarily.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">The tax rates can get-- go up and the tax-- revenues can go down.&nbsp; That has happened.&nbsp; The reverse has happened.&nbsp; You've cut the tax.&nbsp; And in the case of the Bush tax-- rate cuts the tax revenues collected by the federal government are higher than they were before.&nbsp; The same thing happened with the Reagan tax cuts in the 1980s and the Kennedy tax cuts in the 1960s.&nbsp; Cutting the tax rate does not mean cutting the tax revenue.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Now--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">If they-- if they raise the tax rates it would not surprise me in the slightest if the federal government gets less revenue than it got before.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But do you think that the Bush tax-rate cuts are going to all expire and everybody is going to get--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, no, no.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--Higher rates or what?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">It'll be-- they'll-- the rich supposedly will pay-- the taxes.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">But you think that's what's going to happen?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yeah.&nbsp; The-- the problem with that is, again, it's semantics.&nbsp; The people they call the rich, I'm sure at least 3/4 of them are no-- nowhere close to being rich.&nbsp; Being rich means having wealth.&nbsp; We're not talking about a tax on wealth.&nbsp; We're talking about a tax on income.&nbsp; And we're talking about a tax on income on people who, for the most part, are making that-- have-- have not been making that income all their lives.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">They're people who-- at the end of 20 or 30 years have worked their way up from the bottom and are now making $100-- a couple were making $125,000 a year-- they weren't making $125,000-- a decade ago, and they won't be making it a decade afterwards.&nbsp; They're not rich.&nbsp; They're-- they've reached their peak and that's when the government steps in to take it away from them.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">So this is really-- part of it you were saying about point of no return?&nbsp; I mean, it-- if these tax-rate cuts are-- or some of them anyway, are in effect let expire-- not repeal.&nbsp; But they just expire.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yeah.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">If Congress doesn't do anything-- then that's going to have a very detrimental effect on the U.S. economy?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">It'll have-- it'll have a bad effect.&nbsp; How detrimental we'll find out.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I want to go back to something you said earlier about stimulus, so-called stimulus package, $787 billion plus a bunch more after that, to-- stimulate the economy, you call it a stead-- sedative.&nbsp; There are really two parts to government intervention in the economy after the recession.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">One-- one was the stimulus.&nbsp; But before that there were measures to shore up-- financial institutions, which a lot of people felt if they go under like AIG or-- some of the other ones, it would cause-- a terrible problem globally and we'd be in much worst shape than we are today.&nbsp; Do you think it was right for government to act, let's say, as lender of last resort or shorer-upper of institutions?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">In the short-run the problem is our government policies don't end in the short-run.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And they're-- the-- there's-- there's a history-- there's certainly a very clear history of that, where government--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Yes.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">When government steps in it-- it-- it doesn't leave?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">No.&nbsp; No.&nbsp; It's like-- like a Venus flytrap.&nbsp; I mean, it's easy to get in.&nbsp; It's hard to get out.&nbsp; And especially when-- when-- when the policy isn't working, you-- politically you cannot say-- "We made a mistake and we have to change."&nbsp; You just cannot do that unless you want to throw your whole career away.&nbsp; In private life we have to do that all the time.&nbsp; Anyone who looks back through his own life or realizes that-- this-- it wasn't working say, "Oh, my God.&nbsp; I got to stop."</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Have you ever-- do you ever feel you've made a mistake in anything that you've done in-- in a policy or in intellectual sense?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, my gosh, I mean, do you have a few weeks?&nbsp; (LAUGHTER) I think that anybody my age who looks back at all the mistakes he's-- he's made it would-- I mean, he gets halfway through them he will have spent a year-- of course.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Well, just give me one.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, well, I was a Marxist in my 20s.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I thought that's what you were going to say.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Oh, good heavens.&nbsp; Yes.&nbsp; Fortunately I-- I was an empiricist before I was a Marxist.&nbsp; And as I began to see what-- what things led to and particularly when I became-- an intern in-- economics and saw the government from the inside, I mean, now that's-- that's enough to turn anybody away.&nbsp; And so that was-- that was my turning point.&nbsp; That was my road to Damascus.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">I'm sorry.&nbsp; But we have to-- to end it there, Dr. Sowell.&nbsp; I really appreciate your coming to <i>Ideas In Action</i>.&nbsp; Thank you very much.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>THOMAS SOWELL:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Thank you.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">And before we go I want to remind viewers that you can watch <i>Ideas In Action</i> whenever and wherever you want.&nbsp; Just go to our website to watch complete episodes or download podcasts to your mp3 player (MUSIC) through the iTunes store.&nbsp; Wherever you watch be sure to join us next time.&nbsp; That's it for this episode.&nbsp; For <i>Ideas In Action</i> I'm Jim Glassman.&nbsp; (MUSIC)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">For more information visit us at IdeasInActionTV.com.&nbsp; Funding for <i>Ideas In Action</i> is provided by Investor's Business Daily.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; Investor's Business Daily helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com.&nbsp; (MUSIC)&nbsp; This program is a production of Grace Creek Media and the George W. Bush Institute, which are solely responsible for its content.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>* * *END OF AUDIO* * *</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">	</span>* * *END OF TRANSCRIPT* * *</p></blockquote>











































































































































































































































































































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    </content>
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<entry>
    <title>The Principal Factor: How Leadership Can Turn Around America&apos;s Failing Schools - Episodes</title>
    <link rel="alternate" type="text/html" href="http://www.ideasinactiontv.com/episodes/2012/12/the-principal-factor.html" />
    <id>tag:www.ideasinactiontv.com,2010:/episodes//2.42229</id>

    <published>2012-12-13T18:39:09Z</published>
    <updated>2012-12-13T17:56:30Z</updated>

    <summary>Most plans for education reform focus on improving teacher performance in the classroom. But education reformers are catching on to a promising new approach: Training principals in management techniques that work in the private sector. Three guests discuss new programs...</summary>
    <author>
        <name>Emily Johnson</name>
        
    </author>
    
        <category term="Episode 33" scheme="http://www.sixapart.com/ns/types#category" />
    
    <category term="education" label="Education" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="educationreform" label="Education reform" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="educators" label="Educators" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="jamesguthrie" label="James Guthrie" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="jameskglassman" label="James K. Glassman" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="jimglassman" label="Jim Glassman" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="kthrough12" label="K through 12" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="newandprospectiveteachers" label="New and Prospective Teachers" scheme="http://www.sixapart.com/ns/types#tag" />
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    <category term="schoolsystems" label="school systems" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="stateschool" label="State school" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="unitedstates" label="United States" scheme="http://www.sixapart.com/ns/types#tag" />
    <category term="usdepartmentofeducation" label="US Department of Education" scheme="http://www.sixapart.com/ns/types#tag" />
    
    <content type="html" xml:lang="en" xml:base="http://www.ideasinactiontv.com/episodes/">
        <![CDATA[<p>Most plans for education reform focus on improving teacher performance in the classroom. But education reformers are catching on to a promising new approach: Training principals in management techniques that work in the private sector. Three guests discuss new programs and approaches to turning around failing schools.</p>]]>
        <![CDATA[<blockquote class="webkit-indent-blockquote" style="margin: 0 0 0 40px; border: none; padding: 0px;"><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre"><br /></span></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Welcome to <i>Ideas In Action </i>a television series about ideas and their consequences.&nbsp; I'm Jim Glassman.&nbsp; This week could the real key to fixing America's schools be principals, not teachers.&nbsp; It's no secret America's public education system is failing many kids.&nbsp; Most plans for education reform focus on improving teacher performance in the classroom, but one area that isn't getting much attention is the role of school principals.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Education reformers are now catching on to what might prove a promising approach:&nbsp; training principals in management techniques that work in the private sector.&nbsp; Joining me to explore this topic are James Guthrie, senior fellow and director of education policy studies at the Bush Institute, Dan Elsener, president of Marion University in Indianapolis.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Marion is launching a turnaround leadership academy at its school of education.&nbsp; It's designed to identify, recruit and train leaders to transform under-performing schools.&nbsp; And Len Stevens, principal of Huffman Elementary in Plano, Texas.&nbsp; The topic this week the principal factor.&nbsp; The role of leadership in turning around America's schools. &nbsp; This is <i>Ideas In Action.&nbsp; </i>(MUSIC)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Funding for <i>Ideas In Action</i> is provided by <i>Investor's Business Daily.</i>&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; <i>Investor's Business Daily</i> helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Across the country school systems are experimenting with new programs to help find, train and support school principals.&nbsp; The goal is to teach them skills that will help them rapidly improve failing schools.&nbsp; Based on a concept called turnaround leadership these programs use a defined set of management tools that have worked in business, the military and other settings.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;It's an idea that is gaining momentum in education reform circles and within the U.S. Department of Education.&nbsp; It is also the major focus of a new education reform initiative being developed at the Bush Institute.&nbsp; Jim, you lead that initiative.&nbsp; Why principals?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Good question.&nbsp; There're so many answers, but let me start with this one.&nbsp; Virtually every informed human knows that leadership matters.&nbsp; And-- school leadership by definition has got to matter too and yet it has been badly neglected as you-- initially noted.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;But-- and-- more than that, what-- is clear is that most all of the education reforms come through the principal.&nbsp; They don't go through Mrs. Jones in the math class.&nbsp; Some do.&nbsp; But most of them depend crucially on an able and committed principal.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Now additionally teachers will say, "What I really want is a good principal.&nbsp; If I can work for a good principal, that's what I want."&nbsp; We took that into account.&nbsp; And then finally-- we get to the economist and the econometricians who have squeezed it long enough to determine the obvious.&nbsp; That after good teachers good principals make the biggest difference of all those things we can do inside a school.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And-- Dan, at Marion University you've had an education school--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Sure.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--For a long time that trains teachers.&nbsp; Now you've developed-- a turnaround leadership institute--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--For principals.&nbsp; What-- what-- what made you concentrate on principals?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Well, a couple things.&nbsp; One is-- interesting-- a university president, I came up as teacher, principal and-- a superintendent.&nbsp; And I learned a few things along the way.&nbsp; I learned a lot after I knew everything, frankly.&nbsp; But-- (LAUGHTER) at each stage.&nbsp; But it was-- my work on the state board of education.&nbsp; I'm-- also serve there.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And it's very clear to me that even good teachers, under an average principal or a sub-par leadership-- cannot have an excellent school.&nbsp; It just won't happen.&nbsp; As a superintendent I had 71 schools and probably the nights I didn't sleep is when one of them would resign 'cause I knew the candidates weren't going to be the coliber-- caliber of here Len and others.&nbsp; I thought, "Well, this is going to be difficult."&nbsp; So it's a critical piece.&nbsp; As a practitioner I can tell you it's a critical piece.&nbsp; It's a critical piece from policy.&nbsp; And we just have to get better at it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And Len-- as Dan said, you-- you are a principal.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yes, sir.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And you took over an elementary school in Plano Texas that was having a lot of problems.&nbsp; What were some of the problems?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Some of the problems-- the main problem was the parents had lost trust in the fact that the school could educate their children effectively.&nbsp; We had teachers that wanted to be successful.&nbsp; Really had their hearts out-- hearts in the right place with the kids but didn't necessarily have the no-- knowledge to utilize the resources.&nbsp; They didn't necessarily have the focus.&nbsp; Failing test grades.&nbsp; Discipline problems were on the rise.&nbsp; Things of that nature.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And you were able to turn around this school very quickly.&nbsp; I know you're quite modest, but-- but that's the truth.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yes, sir.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;How did you do it?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;The first thing I did was went in with a vision of-- that we can educate all the children effectively despite-- their background experiences.&nbsp; And I went out to the community, I met with the homeowners' associations, I met with real estate agents, I met with the businesses, and kind of sold my vision of a plan on-- what we could do to make Huffman Elementary School very successful.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;I was also able to, with the support of the school district and my wonderful superintendent Dr. Otto, was able to bring over five teachers with me that had bought into my vision.&nbsp; And I could put them in the leadership roles of the school so they could teach the other teachers who wanted to be effective educators what they needed to do to differentiate the instruction.&nbsp; And our main focus was differentiation and growth of the students.&nbsp; Not test scores.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;You know, you-- you-- you mentioned-- bringing over-- Len mentioned bringing over five-- teachers.&nbsp; And-- I know that one of the issues that you are confronting, Jim, is the fact that many principals just don't have that kind of authority.&nbsp; And that you could drop a Jack Welsh into-- any high school in America and he as the former CEO of General Electric would have a hard time running the school.&nbsp; 'Cause he-- he doesn't have the ability to bring in five princip-- five teacher or to fire the bad ones or to set the salaries of-- of the best ones.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Well-- Len is extraordinary for a lot of reasons, among which is the fact that he's got a superintendent who understands him.&nbsp; And in this setting-- and Len was indeed as modest as you proclaimed, Jim.&nbsp; In this setting what he faced is an influx of a very different kind of student population than the community had been used to.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And the-- the parents who lived in the million dollar homes were at risk of fleeing as I-- I understand it.&nbsp; And he wanted to keep this community together.&nbsp; And to have a school sitting there where no one locally uses it was not what he wanted.&nbsp; So-- that's the emphasis on building back the community-- support and-- and affection.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;But along the way-- Jim, his superintendent, understanding the dynamics of these things, gives him the authority, one to bring in leading teachers with him.&nbsp; Secondly, to sift through the others and those that don't fit the new model to undertake their transfer elsewhere.&nbsp; And-- and then he did have, if I understand correctly-- Len, you-- you did have some added financial resources.&nbsp; By no means huge.&nbsp; I mean --</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;That's correct.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--We're not talking' hundreds of thousands of dollars here.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;That's correct.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;But he had some things, Jim, that he could use to lubricate the system and make it work better.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;You know, Jim-- Jim-- I'll say Jim squared, 'cause we have two Jims here--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yeah, we got two.&nbsp; (LAUGHS)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;The-- there's a couple key-- the language.&nbsp; I don't know if you picked up here.&nbsp; The subject is the student.&nbsp; Student growth is the outcome.&nbsp; You drive everything to that.&nbsp; And the academy we set up, that's our top model. &nbsp; The subject is the student.&nbsp; Everything's focused to serve the students.&nbsp; And the student growth is-- any system you put in, any educational philosophy, testing.&nbsp; Always looking' to instruct in differentiation.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;As for the matter of-- so the philosophy and how you approach this changes everything.&nbsp; As for the matter of freedom to bring teachers and-- and do the things you need to do, frankly I'm not going to-- willing to sit as an educator or a state board member or just as a citizen any longer to wait 'til all the systems get their ducks in order and free up educators to educate.&nbsp; I want to work with the people that are ready to work.&nbsp; And where superintendent and boards want to draw up appropriate contracts and conditions with their teachers so they can lead and really serve students, we want to work with them.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And-- and what is it--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;We can't wait for the whole system to change?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;What does that mean specifically?&nbsp; In other words, if there were a few things that-- few kinds of authorities that principals need to have-- what would they be?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;The few kinds of authority is first of all you have to make sure that the process for holding, I believe, and nurturing, teaching, mentoring, supporting, affirming teachers.&nbsp; But they also are at the end of the day to be held accountable for how they serve their students and advance their growth.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And the principal has to have authority.&nbsp; When that process breaks down and you have an unwilling partner in a teacher, unable, that you counsel that into a new profession, because the system is not there for the adults.&nbsp; The subject is the student.&nbsp; And so when systems that have over-encumbered and put every road block in the world in front of principals to lead, things have to change.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;I-- I--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yeah.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--Call that let us do what we do. &nbsp; And let us do what we know how to do well, which is educate the kids and put everything else out that's not important to that piece of it aside.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;You talked about-- this-- this term-- and Dan mentioned it also, differentiation.&nbsp; What does that mean?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">It means taking the child where they're at at their level and growing them from there.&nbsp; And a master teacher can easily do that with two or three or even four different groups of levels of learning in their classroom.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Len mentioned-- the-- the-- all this relationship with the community itself.&nbsp; And I know that you have talked about the fact that the pool from which principals are chosen is essentially teachers.&nbsp; And teachers may be very good at relating to students.&nbsp; And that's tremendously important.&nbsp; But they've got-- but principals have other constituencies.&nbsp; Is there a problem with the pool, the talent pool, from which principals are drawn?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;One of the things the Bush Institute Initiative is eager to have happen is to augment or supplement or expand the pool of talent from which potential school leaders come.&nbsp; And-- Dan's university is leading the way here in its relationship with an organization such as Teach For America or New Teachers For New Schools which has a whole different stream of talent coming into it than one would conventionally find.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;We can even-- to that point-- I'm on the state board in Indiana and we have, working with our state superintendent governor, relaxed the requirements so you can even bring talent in from other endeavors and they'll go through our academy to help participate in school administration in the state of Indiana.&nbsp; We just think it enriches the talent pool.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;We also in training the principals, we're going to use more corporate leadership development programs, people very much outside of the schools of education.&nbsp; Our school of education is involved but our academy is a unique structure.&nbsp; It's not under one school.&nbsp; So the school of business and these different schools will be involved.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And leaders-- national faculty and leaders from the community will be involved.&nbsp; So we're trying' to broaden the perspective not just out of a school of education, not just teachers that have been six, 10 years a teacher.&nbsp; And we think this intermixing will help everybody-- involved in the process.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And has that been a problem?&nbsp; That-- it-- it's-- it's essentially been education schools that--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--Have trained principals.&nbsp; But you're bringing in-- business schools.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;I know that the-- the-- the Bush Institute program will also be-- taking advantage of-- of business schools as well as-- learning from the military even and from-- and from-- other areas of leadership?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Ab-- absolutely.&nbsp; But Dan-- has (LAUGHS) pioneered many of these things.&nbsp; He and his head school.&nbsp; We are learning.&nbsp; There're particular things that business schools do very well.&nbsp; Now they don't do everything well that applies to education.&nbsp; But things like strategic planning.&nbsp; Managed-- resource management.&nbsp; Human resource management.&nbsp; Metrics.&nbsp; Measurement.&nbsp; Those are some of the things from which we can draw productively from-- from a business school.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Just-- Len, if you could tell us a little bit more about how you changed-- what was going on at Huffman Elementary.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Okay.&nbsp; What other resources did I have at my--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yeah, yeah.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--Disposal?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yeah.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Well--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;How did you succeed?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;A lot of it was with the support of my superintendent and the school district.&nbsp; I had the authority to go in and I had some leeway that some other schools did not have.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And is that the-- what about the union situation?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Well, we don't have a union.&nbsp; We-- we have a teacher's union but it's not a strong union in--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Could--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--The sense of--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;<span class="Apple-tab-span" style="white-space:pre">	</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--You imagine having done what you did in a state that has a strong union?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;I think so, because-- I think it may have been more challenging but I-- I think when parents are crying out for something for their kids you have to listen.&nbsp; And you have to do right by-- for the kids.&nbsp; So we were able, again, to bring in those teachers.&nbsp; I was able to interview all of the existing staff members.&nbsp; And the district reassigned teachers that I didn't feel were going to support my vision or be able to pull off the task at hand.&nbsp; And I was able to bring in folks to replace them.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;I had a full curriculum audit.&nbsp; Was given all the resources we felt we needed to be effective with differentiation in the school.&nbsp; I was given funding for after school tutoring.&nbsp; For busses to take the kids back to the-- homes that did not live in the community.&nbsp; That-- that was huge.&nbsp; We had lower class ratios in kindergarten, first and second grade.&nbsp; The state mandates 22 to one.&nbsp; We had 18 to one ratios.&nbsp; All sorts of technology and software support.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Did that make a big difference?&nbsp; The fact-- 18 to one versus 22 to one?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;We found that over the years-- it-- it made a difference in kindergarten because for many of those kids that was their first exposure to school in a school setting in a classroom structure.&nbsp; Really that-- that doesn't make a big difference.&nbsp; Again, a master-- 18 kids, 22 kids.&nbsp; Not a big difference.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And I would say this. &nbsp; What great leaders do?&nbsp; Great leaders are put in impossible situations every day and all of a sudden it's possible.&nbsp; Things happen.&nbsp; And it happens in every endeavor.&nbsp; You see it in business.&nbsp; You see it in government, et cetera.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">Whatever situation you go in, if you can get a group of adults around a clear sight of where you're trying to take these folks and focus on the real mission and the real objective of these students and their learning growth and keep focus on it and give them systems, the power of statistical analysis is one of our big things in school.&nbsp; But that's what great leaders do.&nbsp; They motivate.&nbsp; They can articulate this vision.&nbsp; And people start glomming onto it and make that the main thing.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;You know, I mean it sounds to me like what Dan is describing is that a principal-- that is to say a school leader, is not much different from a leader in any other walk of life.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;With one exception-- I concur with that.&nbsp; We're just seeing that from the military to business-- actually even in-- in the ministry.&nbsp; In-- in religion-- the-- leadership matters.&nbsp; Now Dan keeps coming back-- and I-- I'm so in favor-- in favor of it.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;But the fact that for these schools to work they've got to be built for the benefit of children.&nbsp; Now in much of the United States-- not everywhere.&nbsp; I don't want to make a blanket condemnation.&nbsp; But in much of the United States the schools are run for the adults, not for children.&nbsp; I mean that's what you're trying to-- to cut through.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;When-- when you say adults, you mean-- you mean for the teachers?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;For the-- well, it's-- I-- it's not just the teachers in-- in a sense.&nbsp; It's frequently their-- their leaders.&nbsp; Their own union leaders are in more-- at odds with the teachers who actually work in-- in the schools.&nbsp; But it's-- it's-- there's a whole set of constituencies that don't really favor children.&nbsp; Those include vendors, for example.&nbsp; Those are political officials who interfere with the operation of the school and lose sight of the fact it's the education of children.&nbsp; That's what he's trying to cut through.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Do you think that leaders, school leaders, can be trained or is it a question of natural ability?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;I think it's a combination.&nbsp; A little bit is from within.&nbsp; It's an intuitive sense.&nbsp; It's for what your calling is or your mission is.&nbsp; It's your belief system that it can be done.&nbsp; But I also think it can be trained through the use of-- modules.&nbsp; Through scenarios.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Len and I just met in person today while we were in the back room preparing and I asked him about how he got into principal and he said, "I've wanted to be a principal my whole life.&nbsp; That's my calling.&nbsp; That's what I want to do.&nbsp; That's my mission."&nbsp; And I knew right then, you know, "Can you come back to Indianapolis with us somehow?"&nbsp; He could teach in our institute.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;But absolutely, no.&nbsp; There's power, there's understanding of statistical analysis.&nbsp; If you're going to work on student growth you need to know-- you need to know systems.&nbsp; You need leadership skills.&nbsp; Planning, strategic and otherwise.&nbsp; How do you build culture of excellence?&nbsp; And some places you walk in and you know it's a serious business.&nbsp; Loving community, but serious business we're undertaking here and it's been established.&nbsp; And-- and-- and--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;The good news--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--You can develop that.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--Here is we can teach how to do much of this.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Much of this.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And is that what-- is that what you're attempting to do?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;We're-- it is.&nbsp; And-- we're not just doing it through classrooms.&nbsp; And we don't-- we don't have anything against classrooms.&nbsp; But that's not where you learn the core of what Len knows how to do.&nbsp; The core of it comes from the experience.&nbsp; From the clinical opportunity to be with another great principal.&nbsp; Joined at the hip as that person, he or she, moves through the day.&nbsp; Moves through the school year.&nbsp; That's where you'll see-- how it all comes together.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;So having a mentor?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;A mentor is terrific.&nbsp; There's another part of it.&nbsp; I-- I know these gentlemen would concur.&nbsp; Inside as a principal you need a set of beliefs-- some moral, yes, that's fine.&nbsp; But you need a set of beliefs about people, about children and about process that enables you to make decisions as they come at you in the rapid-fire manner you've described them.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;They're just co-- I-- I know-- I was a principal, but Len, I'm sure (CHUCKLES) was a better one.&nbsp; But I know (LAUGHTER) in the course of just my morning as a principal I probably had on the order of magnitude of 250 decisions to make that morning.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And-- and what you're saying is that the training system as it is now really doesn't help principals do that?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Bingo.&nbsp; There's very-- look-- look, there're some great classroom teachers. &nbsp; You've had them.&nbsp; I've had-- we've all had these terrific professors.&nbsp; Absolutely.&nbsp; But sitting in a classroom is not going to prepare you for the irate parent, the drug deal, the kid with the knife, the teacher who can't-- figure out her-- where her lunch is.&nbsp; It-- and-- and it just keeps coming at you.&nbsp; That was all in 10 seconds.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yeah, Jim --</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;The next 10 seconds you got a whole 'nother ream of--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;You know, I learned a lot from the medical profession.&nbsp; We're starting a medical school at our university.&nbsp; And the-- the-- medical doctor wouldn't-- medical training and-- and deans of education, medical schools, would not think of putting a physician out there that hasn't had two years of a lot of hands on learning.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And we think about a residency for educators.&nbsp; And especially for principals.&nbsp; And our program is a three-year program.&nbsp; First year's heavily classroom.&nbsp; Distance learning.&nbsp; Outside lectures.&nbsp; Then for two years they do a residency in a school.&nbsp; Can you imagine learning from someone who's actually done it?&nbsp; And Len's probably-- if you're like me, I have enough mistakes to teach from--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Sure.&nbsp; (LAUGHTER)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--Before you-- in leadership and--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;No, that's right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">--We're letting people get certificates in schools with maybe a little leadership project that they throw in their 36 hours or whatever their masters degree.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Len, s-- some teachers feel that-- they're being left out of the overall reform discussion.&nbsp; I mean not only the discussion that we're having here today about the importance of principals, but of reform in general.&nbsp; Do you-- do you hear similar kinds of complaints?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yeah, absolutely.&nbsp; I mean the-- the teachers are the-- the soldiers in the field.&nbsp; They're the ones that know what works.&nbsp; And they're the ones that know what it-- what they need to do to make it work in education.&nbsp; Very seldom do the legislators ask their opinion or do they sit on any committees that have anything to do with educational reform.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;So is there a way, Jim, for teachers' voices to be heard or how important do you think that is?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Two dimensions to this.&nbsp; A good principal-- knows intuitively and through experience that unless he or she engages the teachers, forget it.&nbsp; You've-- you just-- don't try.&nbsp; So at the school level teachers are crucial and good principals know it.&nbsp; There-- there's a little bit of a misperception-- here.&nbsp; I-- I agree with-- Len that it's seldom that a state legislature turn-- legislator turns to a-- teacher and says, "What do you think?"</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;But the most-- the highest spending registered lobby-- for the nation and each state is the teacher unions.&nbsp; They spend more than any other registered lobby in these things.&nbsp; Their voice, Jim, gets heard.&nbsp; But it is not-- one, you have to wonder the extent to which they represent classroom teachers.&nbsp; That's the question.&nbsp; But second, what their-- that-- their influence there is about things like salaries and working hours. &nbsp; It's not about instruction.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;That's right.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And that's where Mrs. Jones the third grade teacher is left out.&nbsp; No one's listening to her-- except a good principal.&nbsp; No one's listening to her voice about instruction.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And just as a-- as a last question for all of you.&nbsp; What-- what do you all expect and hope to see from the kinds of school innovation that we're talking about today?&nbsp; I mean, you know, 10 years from now will schools be better as a result of the efforts that you're putting into leadership?&nbsp; Or is this-- is this going to be something that's going to take 50 years?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;The public's got to understand that to operate a school is a very complicated, difficult thing and you need terrific people to do that.&nbsp; You cannot just dip into somebody who failed as a teacher or who failed in business or somewhere and let them take it over.&nbsp; This takes talent.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;What do you-- what do you think about the future, Len?&nbsp; I mean how optimistic are you that things can change on this-- the leadership?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;In-- in terms of the leadership?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yeah.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;I-- I-- I liken it to the turnaround school situation.&nbsp; We've identified what's wrong.&nbsp; We've identified what works.&nbsp; It's-- we know what the second biggest effect on student success is and that's leadership of the school.&nbsp; So we've identified it.&nbsp; And so I'm-- I'm hopeful that within three to five years it'll really take hold in what we're trying to do with the Bush Institute and what you're trying to do in Indiana.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And-- and-- and the biggest effect is from teachers, but teachers are themselves affected by principals?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;By principals.&nbsp; Absolutely.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Put in the system.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Dan?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;I think it's a matter of how much courage we have as a nation and we'll be knowledgeable.&nbsp; We're kidding ourselves.&nbsp; Internationally-- this is an international economy.&nbsp; It's a very-- it's a very different milieu than maybe we grew up in where we were isolated.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;We are not going to live off of a luxurious fat of the land type situation.&nbsp; We're going to have to get more serious in our culture about the discipline and the practice of learning.&nbsp; Supporting teachers.&nbsp; Putting excellent leaders-- teachers deserve an excellent leader.&nbsp; And they-- and-- and our students absolutely deserve an excellent leader.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And we're going to have to do this, but we'll have to have courage to change some assumptions that we've taken to the table about the need and how we ought to commit and organize our lives around education, values, commitment, discipline.&nbsp; And we're just going to have to have courage, though.&nbsp; And the longer we avoid the tough decisions and be willing to rearrange some systems that we've had in the past, the longer it'll take and the more it'll cost us in a lot of ways almost immeasurable, way beyond money.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Jim, just as a final point, you-- you-- you started this program really just at the beginning of this year and-- and yet you've already gotten a lot of interest from around the country.&nbsp; And people were already started--</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;<span class="Apple-tab-span" style="white-space:pre">	</span>(OVERTALK)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;--In on this like Marion University.&nbsp; But could you just give us an idea of-- of where-- you're seeing-- this kind of-- reform spirit and leadership?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yes.&nbsp; There are approximately 10, maybe 12 innovative sites presently.&nbsp; We-- we can't take credit for all of them.&nbsp; There are others who--&nbsp; who were engaged with this, including Marion who was out of the-- starting gate very fast.&nbsp; Jim, I would anticipate within the next two years we should have something on the order of 20 to 25 of these innovative sites throughout the United States.&nbsp; And-- and then-- in weaving them together into an important-- compact or-- or network is good.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;By the way, you're talking about compact, it's called the EOS Compact.&nbsp; What does EOS stand for?</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JAMES GUTHRIE:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Eos-- is not an acronym, which is difficult for a lot of people to swallow.&nbsp; Eos is Greek for dawn.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Well, good.&nbsp; And that-- that's a good place to end it.&nbsp; (LAUGHTER) Thank you-- thank you Jim and thank you Len and thank you Dan.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>DAN ELSENER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Yeah, very much.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>LEN STEVENS:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;Thank you.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>JIM GLASSMAN:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;And before we go I want to remind viewers that you can catch <i>Ideas In Action</i> whenever and wherever you choose.&nbsp; To watch complete shows just go to our website, IdeasInActionTV.com, or download a podcast from the iTunes store.&nbsp; And that's it for this week's <i>Ideas In Action</i>.&nbsp; I'm Jim Glassman. Thanks for watching.&nbsp; (MUSIC)</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>ANNOUNCER:</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; ">&nbsp;For more information visit us at IdeasInActionTV.com. &nbsp; Funding for <i>Ideas In Action</i> is provided by <i>Investor's Business Daily</i>.&nbsp; Every stock market cycle is led by America's never-ending stream of innovative new companies and inventions.&nbsp; <i>Investor's Business Daily </i>helps investors find these new leaders as they emerge.&nbsp; More information is available at Investors.com.&nbsp; This program is a production of Grace Creek Media and the George W. Bush Institute, which are solely responsible for its content.</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>* * *END OF AUDIO* * *</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; "><span class="Apple-tab-span" style="white-space:pre">		</span>* * *END OF TRANSCRIPT* * *</p><p style="text-align: left;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal 'Courier New'; min-height: 14px; "><br /></p></blockquote>























































































































































































































































































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