Transcripts For CSPAN2 National Competitiveness Forum - Part 3 20171228

Asked what they thought of todays news so i quit my job and i went about as far away as i could go and i moved to the country of cambodia and i spent a year and a half there reporting on events there and it was amazing. The country was emergingfor 30 years in the civil war and genocide. 24 people died of starvation and disease and what struck me while i was there was the human resilience. It was very noble experience. A lot of information, but just seeing peoples lives and how they bounce back, it changed the way i looked at journalism and what i wanted to do and when i came back, i wanted to write more about the theme of human resilience and i found in the United States one of the most exciting stories of human resilience are being written by technology and thats really what my book is about. Its a book about bioengineering im sure youve heard about and you know, i guess my presentation is less datadriven than some of this stuff but when i tried to do was put some of these things we are hearing about in the news into context and in these fields like ionics, regenerative medicine, engineering. Thats what i focused on in my book here. Its a little bionic vitruvian man here. Anyway, what all these things happen, and is we sort of reached a tipping point. And in the last century, some ofthe most talented engineers, we did incredible engineering. We did skyscrapers, we met detroit so to my argument and what ive seen is through the last 10 years of covering this for sciencemagazines like Mit Technology review and Scientific American and Popular Science is that the new frontier now , these are the most talented engineers are turning their insights inward into the human body and weve always tried to do that but now, many of the technologies we heard about here, Computing Technologies are allowing us to do things we could never do before. Reverse engineer the human body and mind at a level that would have been impossible. So thats what i tried to explore and these are trends weve heard a lot about and im a journalist so i went out and i tried to talk and find out if this was going on, what we are learning about our limits and how we might overcome them and how this was actually affecting peoples lives. So i think its pretty obvious that its going to be a tremendous area of growth in the next century. You guys are the ones who can figure out how to monetize it. In various different areas are coming along atdifferent paces but the first person that i wrote about , the first person i talked to sort of demonstrates one area where already theres progress that is being commercialized and that person was a man named hugh kerr and ill tell you a little bit about him. I like to tell stories. This guy, this was a great story of human resilience. This guy was not the best student in high school. He was a c and d student but he loved the rock climb. He was already as a teenager kind of a worldfamous rock climber. He been on some rock climbing magazine as a young prodigy and all he did in class was think about rockclimbing and one day he went hiking and not washington New Hampshire with his friends. They got to the top of the mountain, the wind shifted and theywere in the middle of a blizzard and went down the wrong way. And they wandered into the wilderness and got lost and they almost died. They were rescued on the brink of death and hugh had severe frostbite and both his legs were amputated below the knee. So the doctor told him hed never walk, he never run, he never climbed again and every night he would go to sleep and he would dream that he was running through the cornfields with his house with the hair running through , the wind running through his hair and then his legs were gone when you wake up and it was devastating. But soon he was tired of being in bed. He got out of bed and started climbing around and realized he could pull himself up on the refrigerator. He convinced his brothers he could rock climb again and on the rock wall he was even lighter than he was before so he began tinkering with his prosthetics. He made them evan feet long, little stumps that he could climb these areas that he couldnt climb before and soon he was even a better climber than you ever been before. He was worldfamous again and it was a story of this boy wonder that when hegot down , his prosthetics were no better than the tech at the time designed for civil war soldiers or pirates a couple hundred years ago. He began tinkering with them and enrolling in engineering and math classes. He became a straight a student and he got accepted into mit. Today hes one of the leading ionics engineers in the world. And what hes done is he has taken these technologies that im talking about that are driving this revolution, these new technologies and used them to make bionic limbs that are so similar to the real thing that when i went to visit him at mit, i couldnt tell he was wearing them. I was slipping and he was wearing fancy italian leather shoes and what he did is this is sort of what we will see more and more with greater resolution, but when you think about it, i wrote down this number. We have how many . 206 phones, and about 4000 tendons. He was able to take these variables and put them into a computer algorithm, and he put them on a computer chip, and then he built robotic parts that could emulate the real thing. Its a manageable number when you think about it, you know, 206 bones, 306 joints, however many different parts. But when you think about the advances in Computing Power and sensing power just in recent years, it suddenly becomes a manageable problem. And so he built robotic parts out of, you know, silicone and various things, and these, this device that hes made adjusts, you know, hundreds of times a second. And, you know, hes done tests on treadmills with oxygen and co2 and force plates to see, and it really does emulate the real thing. It feels so realistic that disabled people, when they try it out, they begin to cry because it feels so real. You have to hook it up to the nervous system if you want to, you know, do the real thing, but thats just an example of what we can do. Now, when you take that further, so and thats what i wanted to look at in my book, you know, all the different areas that we hear about have to do with reverse engineering and doing the same thing except on a much greater level. So, lets see, how many, how many neurons do we have . I think we have, like, 300 billion, i guess, and maybe 3 billion nucleotides in our genome. We dont have the power yet to reverse engineer that. But its amazing, but people are trying to do that to a certain extent, and its amazing how far we have come in some of these areas. So when you think about, well, genetic engineering is, thats one area. Theres some mutations that are caused by a single, you know, some conditions that are caused by a single mutation. And i looked at one of them. I mean, theres, theres a negative regulator, muscle growth called myostatin, and if you knock out that gene, you get bigger muscles. So there was somebody who was at the university of pennsylvania, hes moved to florida, named lee sweeney, and he made these things the press called them Arnold Schwarzenegger mice. They got really bigment so theyve been using this as a potential therapy for people with due chains muscular dystrophy whose muscles rip apart, but then, of course, gene copers got ahold of this dopers got ahold of this and, you know, meatheads are getting ripped. So lee sweeney, in addition to pushing this and trying to push things into trial, is also a member of the World Antidoping Authority. So thats an example of things well face, but when you hook at intelligence, some people you know, theres thousands of genes that can be involved and a combination with environment, and we dont necessarily have the computational power yet. Theres a company that has sequenced about a thousand people with high intelligence and have have been trying to get to the bottom of it. But theyre using supercomputers. But its only going to get easier as we, as these technologies improve. So thats one example of where we are in that. And then in terms of the brain, i mean, i looked at the most extreme example is trying to understand and decode imagined speech. So you can theres people who, it seems like the ultimate challenge to me, theres people who are locked in, have lou gehrigs disease and have lost their ability to speak. Theres a project that was funded by the u. S. Military, there was a guy at the Army Research office who was a Science Fiction fan when he was growing up, and he had always dreamed of a thought helmet. So he actually funded people, and one of the people, i forget, theres somebody here from Washington University, right . Yeah, eric, i wrote about him. Hes in the Mit Technology review this month, and i watched him do brain surgery. Him and a collaborator named ger win, they have discovered a neural signature of imagined speech. And what they found is that when we talk, our mind sends a signal to the motor cortex to tell the muscles of our, you know, articulators how to talk. But it also sends a copy to the auditory cortex thats an error correction mechanism so we know when somethings wrong. Amazingly enough, when we just imagine speaking, it still sends that signal there, and you can actually pick up that signal. So eric of Washington University and gerwin of Albany Wadsworth institute can actually tell if somebody is imagining reciting the gettysburg address or the Martin Luther king i have a dream speech. But they cant, you know, listen in on your thoughts and just decode it. Yet. [laughter] altogether. But you can imagine that once we have computational power to monitor 100 million, 300 million neurons, maybe Something Like that would be possible. Anyway, as you can imagine, theres all sorts of areas where theres potential growth in the future. And thats what i explored. And theres all sorts of ethical issues as well. You know, i asked somebody at beijing genomics institute, i said what do you think about, you know, should we really be able to tweak intelligence . And he said, well, you know, i think every participant should be able to have parent should be able to have their child be as intelligent as they want. And i thought, well, is there anything that would alarm you . He said, well, i could imagine a very aggressive tiger mom who wants to engineer her child with the perfect combination of intelligence and ruthlessness, and she gives him antisocial lack of empathy. So that was a little alarming to think about. [laughter] so i dont know, were going to have to grapple with these issues, and theres no easy answers. I asked the military scientists are these Good Technologies or bad technologies, and he said, it depends. Is a baseball bat a good thing or a bad thing . Its a good thing if we use it to play baseball with, its bad if we use it to beat somebody over the head. So these are issues that were going to have to deal with. In terms of commercialization, it just the it depends on, its just going to increase our level of specificity, you know . The kind of we rely on small molecule drugs now, and we systemically alter the molecules in all of our body. Were going to be able to get more and more specific as these technologies improve. I also wrote about a technology where theyre actually trying to stimulate neurons directly with electricity which is much more robust. But were a long ways away from this. So anyways, that is my talk. [laughter] happy to answer questions. [applause] thank you. [applause] did you guys, did anyone want to ask questions . Be or i have a question. What, in your lifetime, do you think oh, sorry. In your lifetime do you think we will have solved the most complex, dangerous brain cancers, glioblastomas . Yeah. Well, i dont know. I have seen many encouraging things. One thing thats going on you probably heard of is immune know therapy, and somebody was just telling me last night at argo National Laboratory theyre using supercomputers to look at cancer and look at some of the day the sets from veterans. And, you know, as we have big data, we can discover some of these things. I have been done to a place called md anderson in houston, and they set up this platform where theyre look at sort of the theres an interesting battle that goes on between different cancerous tumors and the immune system, you know . And i dont know if anyone has heard of these things called checkpoint inhibitors, theyre what save ised jimmy carters life. Basically, theres these switches in the immune system that can be turned on and off. And some cancers are able to flip a switch that turns off different components of the immune system. At md anderson, theyre learning to flip it back on. So in glioblastoma, im not sure what goes on in that. I mean, it seems a very effective way to fight cancer would be to harness the bodys own immune system. But i do not know specifically where they are on, in that. Thinking about how you suggested a mother might choose particular traits for her child, it sort of raises the nature versus nurture argument from a different perspective. But presumably, the child would still be limited by the genetic material that they had to work with. Right. Well, but, i mean, i guess the idea that bgis going by or people are talking about is if you understand the genetic code and what combination of nucleotides would predispose someone to superior intelligence, you could use the various Gene Editing Technologies that people are developing to rewrite the genome to give them that combination of jeeps, that genetic genes, that genetic code that would allow them to be the most intelligent. But, you know, i guess what im saying is theres so many variables involved, and its so complicated, its such a complex combination between different nucleotides and environment that i think were a long way from decoding exactly what will allow us to control intelligence. We just add a little complexity to that. We thought, as biologists, when the human genome project was complete, wed understand this. Turns out that, as we all most of you know, each gene codes ultimately for a pep tide or a protein. And so if you know how many genes you have, you should be able to match those to the number of peptides. Well, it turns out theres multiplication in the diversity from the genome. So just by gene editing wont get you that. The other complexity here is if you take two identical twins, humans some of you may be aware, their fingerprints are different. So even though they have exactly the same genome, their phenotype has been modified in their embryonic development. Let alone the nurture once theyre born. So simply thinking that if we can identify the gene, splice it, put something in and result in a final human being thats going to be, have those traits is far from the reality. Nature has levels of complexity. Im just giving you some examples that arent going to simply let us its not just one gene, one trait. Each when we think thats the case. So on the other hand, there are some, i mean, genetics is in some ways revolutionizing pharmaceuticals or certain companies. Theres, you know, regeneron is a company that has partnered with all sorts of academics when are looking and studying different populations that have rare mutations with a powerful effect. And also amgen has bought this company in iceland called decode which, you know, theyve tried to because the icelandic population is so homogeneous, theyve collected a lot of the dna from a lot of these individuals, and its easier to spot very powerful mutations that are associated with different diseases or that could predispose you. But, you know, usually its a combination of a lot of things. And, you know, like for instance, i think one of the reasons amgen bought decode was because they had found in you would orally patients in elderly patients a mutation that seemed to make it harder for hem to get alzheimers disease. And it didnt explain alzheimers disease, but apparently it made it harder for them to form the tangles that actually cause it. So if you could replicate that with a small molecule drug, you could presumably, you know, combat alzheimers. But you couldnt give somebody intelligence necessarily. Adam, as you went around the world and talked to people, did you notice a difference from an ethical perspective in sort of intellectual augmentation versus physical augmentation . I dont know. I i mean, it seems like ive read, there are some studies from i think scientific journals that many people in academic already try to intellectually augment themselves with, you know, ritalin or all sorts of stuff. And i dont know what its like in college now a nowadays, but [laughter] finish. [inaudible conversations] but i have actually, and, you know, i mean, you can see the same thing that happened with steroids is happening with some of these gene things like myostatin, you know . As soon as they get discovered in the scientific literature and theyre used to help the weakest among us, you know, steroids were originally used for musclewasting disease and survivors of the holocaust, you know, athletes start using them. And recently i wrote about somebody for businessweek, a guy at ucsan diego and the Salk Institute named james evans, and hes actually found a mutation that, hes found these receptors that if you tweak them, they can make they can allow a mouse to run twice as far as he normally would. Its like this fatburping fatburning switch. You administer this drug, the body starts to burp more glucose, and you delay the point at which the mouse hits the wall. And when he First Published a paper about a drug that did this in 2008, he gave a copy of reference sample to the World Antidoping Authority, and i think theyve found samples on the Tour De France within, like, three weeks, you know . But then the World Antidoping Authority was so alarmed that they put out a notice warning that it had been, that trials had been stopped because theyd been found to cause cancerous tumors in mice. So that helped a little bit. But i think [laughter] i still think theres been evidence that the soviet, the former soviet group job doping authorities have used this in some places. But recently every advance came out with evans came out with a new drug that supposedly doesnt is have these tumorcausing effects. And you can be sure that its already being made many china and bought on the black market. So its hard to control. Thank you. Okay, thank you. [applause] our next session is a series of fireside chats featuring speakers representing a broad crosssection of the private sector who will highlight various Disruptive Technologies and their impact on u. S. Economy. To moderate this session, labeling ladies and gentlemen are, please welcome the executive Vice President for the council on competitiveness, mr. Chad evans. [applause] Economic Growth drivers evolve over time. In the pre18th century, the main driver of Economic Growth was cultivation, was extraction. In the 19th and 20th centuries, the main economic drivers were really manufacturing and industry. As we look forward into the 21st century, building on a manufacturing renaissance and new Energy Strength, what we see is that compute, powerdriven innovation coupled with Human Potential will be the core drivers for future growth. This afternoons set of conversations over the next 90 minutes will reflect some of this revolution, some of this transformation. As we explore the implications and the impact of big data and Data Analytics. Americas future work force, the challenges and opportunities they face, the rise of robotics, Autonomous Systems and an increasingly ondemand economy. An increasingly casteless society, and, of course, cybersecurity and Cyber Resilience in an increasingly fragile world. This afternoons first insights will come from dr. Jackson, the Vice President and chief Technology Officer of Lockheed Martin. Dr. Jackson will share with us some of his thoughts on how the physical and Digital World are colliding and converging every day through sensors, networks and a tsunami of data. Big data is a game changer for generating value and enhappensing competitiveness. Enhancing competitiveness. As a society we produce today actually, every two days as much data as was generated from the beginning of time until the beginning of the 2 isst century. And in just two years, the amount of Digital Information in the world will rise from five to 50 seth that bites. So within this turbulent, datarich, imagedrivenintensive world, companies and organizations are finding ways to seize on opportunities to expand the horizons and create new businesses, new industries, new markets. Id like to welcome to the stage now dr. Jackson whos going to share some of his insight and some of his perspectives from aerospace and defense sector. [applause] thank you, chad. Im finding the clicker here. Let me maybe start with a question. Well do a little show of hands. So how many people got here to the for rum to the forum some way via commercial airline . First of all, im glad you all made it here safely. [laughter] but im hardly surprised. And the reason is the likelihood of anyone being involved in an accident, any accident not a fatal accident its about 3 in 1,000,000. So our airline industry, commercial aviation, has an amazing safety record. And the reason is the industry has been laser focused for many years on finding and fixing every problem whether its materials and manufacturing, design, maintenance, ultimately things like pilot training, flight operations. And so if you look at the record over time, you see this incredibly dramatic improvement over many years. So thats the great news. The disappointing part maybe is when you get that good, its really hard to continue to improve any more. Or maybe that was the disappointing news. Because the reality is when we come up against these kinds of walls, what happens is typically some gamechanger comes along that creates a whole brand new paradigm. And for our generation, one of those gamechangers is big data. So let me give you maybe an example here. And ill start with the s92 helicopter. The s92s built by sikorsky which is one of Lockheed Martins, its our helicopter manufacturing division. So the s92 is already the safest helicopter in the world. This brings me back to aviation. The s92 is actually a flying sensor hub. It collects 100 megabytes of data ever flight hour. So out there theres about 200, over 200 terabytes of data on this airframe, over 1. 1 million flight hours. And the volume of that database is increasing with the square of time. So we use that trove of data to do root cause analysis of failures, to monitor performance whether its the mechanical or the avionics systems. So when that flight absolutely has to be there, like that example you saw in the video of a baby being airlifted for medical care, its big data thats making that happen. The sikorsky Sustainment Team is looking at this data to be able to predict in advance any kind of a potential component failure long before it ever grounds the aircraft. So practically speaking, now we have predictability in flight hour operations that exceeds 95 . And thats compared to an Industry Standard of only about 75 . So you can see this is making a real difference. Were not just increasing safety, improving aircraft availability, were actually driving down maintenance costs, and were increasing profitability. So now take that example more broadly. So big data, you know, this day tsunami as was said, i mean, this is really driving decisions for us as Industry Leaders about how to increase our performance, to increase safety, ultimately to improve our competitiveness in the global marketplace. And that data, a lot of its generated now by digital devices on the internet of things. Its increasing at an exponential rate. And so figuring out as Business Leaders how to capture the value of that data is, ultimately, one of the pillars of the fourth industrial revolution. So there was a recent Mckenzie Global Institute survey, and they concluded that theres going to be about 11 trillion or more dollars of added economic value due to big data and the internet of things. So leading companies are now exploring how are we going to capture that value for our organizations. And so hock heed martin is Lockheed Martin is working on this revolution on many fronts. Maybe one of the exciting things ill talk to you about today is how were actually reinventing how we use big data to redesign or design brand new manufacturing facilities. So today when Lockheed Martin decides to build a factory, we start in Virtual Reality with modeling and simulation, with Data Analytics, predictive analytics, and even Artificial Intelligence. So we build the entire factory in the virtual and digital realm before we ever put a shovel in the ground. We actually simulate years of production flow. We understand how were going to build the hardware, and we understand what its going to mean for the resources required. And then when we actually go and build the real factory in the real world, we to the same thing; collect that data, analyze it and ultimately continue to optimize our production over time, increasing safety, quality, efficiency, reducing resource ute hiization utilization. Again, improving business outcomes. So let me give you an example of that. This is a factory we recently built from the ground up to produce a new military vehicle. So again, youre actually immersed here in what we showed to our customer to demonstrate our production versatility, flexibility and precision. In the virtual 3d factory, were using interactive shop floor production flow and assembly sequences to really understand not just our resource requirements, but how to optimize that flow. And so when we look at the Assembly Line from end to end, were actually figuring out how to make ourselves impervious to disruption. Were using a combination of proprietary Machine Learning software, were using Historical Data from our existing factories, and then were using this modeling and simulation to ultimately figure out what our risks are and how to mitigate them. And to focus then on quality and safety. So to understand what this means, this factory i just showed you, when we went and built that in the real world, we built it flawlessly in less than a year. So ive given you a couple of examples, real world use of big data. How about an example thats out of this world, literally . So were also using big data to overcome both the challenges and achieve the opportunities in outer space. So think back almost 50 years ago. Apollo, we sent astronaut toss the Moon Astronauts to the moon. The apollo guidance computer had 64 kill bites of memory. It operated at a blistering 43kilohertz. So when we or send astronauts out into deep space on orion in the future, that spacecraft generates two terabytes i wont exaggerate two terabytes of data every hour so thats like ten million times the data rate, the telemetry data rate of apollo. So our next flight is going to be unmanned, but soon after that were going to send astronaut toss the moon and, ultimately, to mars. The rate and the speed at which were going to be able to do that, how soon that happens is going to depend extensively on our ability to use big data to monitor trajectory, speed, altitude, things like tank pressures, battery voltages. So weve created what we call mock v insight. And what that allows us to do, first of all, it totally streamlines our ability to analyze all this huge amount of data on the ground. But more importantly, in realtime on the mission now we can compare all of that data thats being generated to every flight that happened before to every test that happened on the ground. So now we can find and fix issues before they ever impact the mission, and ultimately that means bringing our astronauts back home again safely to the ground and to earth. So like orion, big data is actually opening up brand new frontiers for us not just in exploration, but in productivity. And, of course, that offers us a choice. How are we going to react to this whole new world of opportunities ahead of us . So maybe let me finish up for you with a question. How are your organizations going to react . Are you going to embrace this big data challenge, disrupt yourselves, lead that revolution . Or are you going to arrive late and struggle to catch up . At Lockheed Martin Mission Success is in our dna. Our mantra is were inventing or engineering a better tomorrow. So for us, this choice is very stark. Its about whether were going to continue to increase safety and performance in aviation or live with the status quo. Are we going to build the connected, hyperefficient factories of the future, or are we going to fall behind in productivity . Are we going to lead in Mission Success across the entire solar system, or are we going to miss out on the future of exploration . So for all of us, the choice is obsolescence versus competitiveness. And every day theres 2. 5xbytes, thats 2. 5 quintillion bytes every 24 hours that are making that choice abundantly clear. Thank you. [applause] thanks again. That was great. And, you know, as i noted in my opening but you really brought to life, innovation comes from people x so thank you for those insights. But i also should note that in the workplace, in the work force of the 21st century, we are seeing some deep transformations taking place, also some unprecedented challenges. Perhaps we see this nowhere clearer than in the Industry Energy and the Energy Sector with nearly two million americans employed in jobs directly related to electrical generation and another two and a half million americans who work in industries that are directly or partially related to things like Energy Efficiency and energy puttivity. Productivity. As we look more deeply into the demographics of this sector, we perhaps see some troubling trends. For example, lets look at work force demographics. Just two years ago the Nuclear Energy institute estimated 39 of the nuclear industrys work force would be eligible for retirement by the year 2018. Or thats literally just days away. Yet with challenges come opportunities. And id like to invite up to the stage to talk about some of these challenges and opportunities our second set of innovation insight leaders, nicholas akins, the chairman, president and chief executive officer of American Electric power, and mr. Lonnie stephenson, the International President of the International Electrical workers. [applause] okay. Were just going to jump right into it. Our time is short, gentlemen. So, nick and lonnie, weve heard a lot today about the explosion of Information Technologies and other technologies that are really relevant for your industries; distributed generation, smart home devices, Battery Storage innovation ises. All of these are leading to new businesses, new employment opportunities. But theyre also going to require new sets of skills, new workers. So taking into account this new reality, i first want to perhaps just get a snapshot of a response from you about those general trends [audio difficulty] really about what you see as some of the most important challenges and opportunities and matching skills and matching work force raining to these new demands training to these new demands. So, nick, would you like to kick off . Oh, absolutely. Our industry is in such a dramatic change right now, and its really appropriate that the previous presentation finished with big data. Big Data Analytics, certainly the focus on technology, Technology Innovation are transforming our industry. Historically, its been an industry built around generation, transmission and distribution of electric power. Today its more than that, much more thanking that. Its cybersecurity, certainly physical security but also in terms of the way innovation is occurring, were not only taking advantage of distributed resources themselves, but also customer usage patterns. Individual customers have different ways of using the product that we deliver. And if you can aggregate all that and use it, it actually produces tremendous Value Proposition for our customers. So its truly an industry, though, as you mentioned with the Work Force Development requirements associated with that, we not only have to map the replacement of people who are, who could retire and just in our company alone well have 5,000 people retire over the next, really around the next fife years. And we have to really map that out. But we also have to think about what are those jobs of the future. Data analytics. Certainly from a technology perspective, weve got to have a different view of how that automation, digitization is going to have an impact on our business. We supply a product that this country absolutely needs. Puerto rico is a perfect example of that today. Were in puerto rico today doing work there. Theres no question that as we move this transition forward, were going to have to think about, number one, insuring that we have the work force of today but also bridging into that work force of tomorrow. And, learn are and certainly, the you have be involved in that. Lonnie, any thoughts on that . As we go into more renewable energies, you know, the i alignment of today is certainly much different than the alinement of tomorrow. If youd told me 20 years ago that alignment would have to be working with computers and doing that electronics, i mean, they were climbing the poles and working physically and they still do and still will, but theyre also going to have to have those additional skills theyre going to need. What if we get a little bit deeper with what you both described. Nick, you painted a picture of, frankly, a new industry thats emerging. Right. What are some of those skills that you need to develop . How are you partnering to get what you need . And, lonnie, i would ask you a mirrored question, whats been the iedws experience with nick and his team, and how are you working together . This council is all about the collaboration and convergence of industry, labor, and its sitting right here in front of us, and id like for you the give us the case study. I can certainly tell you, weve worked together for over a hundred years, and we have over a billion work hours that weve worked on projects that really have changed the world. The largest Transmission System in the country, generation, the fist of its kind in many areas associated with that, and we continue to make that evolution whether its sew solar, whether its wind. Now were thinking about, okay, what does that mean in terms of the grid itself, the electric grid itself and the optimization efficiencies driven by new technologies, what effect thats going to have on the work force requirements of tomorrow. Apprenticeship has long been something that we have done. The ibw has done that for their entire history, training associated with that, but also expanding that flynning to include training the include these new technologies and how to use them going forward. Its just an instrumental part of the transition that we need to make. Lonnie, any thoughts . Yeah, you know, again with the training we right now in the Construction Side of the house, of course, our Construction Side supplements our utility partners, you know . And they have got their utility employees. But when theyve got bigger projects, maybe theyve got a transmission line, and theyll use contractors. Were bringing in more training, doing more training for outside construction, and we partner very closely with our utility partners. I call them partners and not employs because we truly are a partnership. Were very proud of the relationship we have with all of our Utility Companies. And working together and collaborating to make sure that were getting quality workers, quality applicants to be hired by utilities and also in construction. Were also partnering with the technical colleges. Yeah, okay. I think theres a real issue here. We have a shortage of line personnel across this country but also in terms of these new technologies to make sure we have people that can do these kinds of work with. Were starting everything from s. T. E. M. Related education early in middle school to high school and mapping those careers into jobs, jobs today and jobs of the future as well. Well, i want to go deeper there. You know, you mentioned just a few minutes ago building things like the largest transmission project in the world. And weve heard earlier in the day about the scale of the challenges and opportunities not just in the United States, but even globally. As you begin to think about your next big project, you know, the next generation that you think will be able to deliver the energy we all need, one, im interested huh you begin to think about that, how you begin to pull together the partnerships that are going to make that happen, and i was curious in addition to, obviously, the great work and the partnership with labor what are the new opportunities with community colleges, technical colleges . Are there things that you see that you need that arent there yet . Are there things that people in this room can help you with . And, lonnie, i would pose the same question to you as well. Absolutely. From our perspective, cyber, physical security, certainly from a computing standpoint, making sure that we have those kinds of skills to be able to adapt. Manyover these new many of these new technologies are digital and automation technologies. If we want to continue to drive efficiency at the same time as providing the overall benefits to everyone in our society of electricity and how to use it, weve got to insure that our people can really map to those particular sets of skills. Data analysts. I mean, the market is pretty strong for data analysts these days. And when you think about the change from a historic system that we have today versus what were going to see in the future, the dimmingtyization and automation digitization and automation associated with that are going to drive huge amounts of analytics associated with it that we didnt even have before. I grew up as an electrical engineer running Power Systems and always thought of as this is the way things are mapped together. Theres a whole new realm there. It goes back to the customer as well. Certainly, the i, vw is an example of that. Smart says, aep and the city of columbus, were in the process of developing that activity within the city, and that goes to extension beyond the electric system into electric vehicles, automation, streetlighting, all those types of aspects should be mapped together to provide these benefits to society. That means we have to expand the bandwidth of the work force associated with that, and certainly the ivws working to do that as well. Lonnie, any thoughts . Yeah, you know, another thing were doing in partnership with our utilities is to try to get more workers that are qualified and know what especially on the line side. Weve got these utility trust fund, weve actually built some Training Center ises across the country where small utilities that maybe dont have the resources, theyre needing to start up and do training now because of the aging work force, we now have this opportunity we can get people to go through this training. Its almost like a boot camp. They can go through and get a feel for what the trade is, what kind of work it is, and then after they come out of that, it gives a pool of employees for then the employers to take a look at on whether they want to hire them. Because somebody especially on the line side, i can tell you ive interviewed a number of people that wanted to be a line apprentice, and the first thing you ask them, do you have any problem with heights . No. 30 of our apprentices that come through, they break out the first we have a boot camp they go through and just is learn how to climb a pole. 30 of them dont make it past that point because thats, obviously, thats a huge skill you have to have. Like the seals of [laughter] yeah. Theres another aspect, too, that people dont realize. The shortage of line personnel today, the Apprenticeship Program takes five years to get to a fullyfunctional line person. Yep. So it really is something you have to think about. I want to go back to, because im intrigued by this point on Training Centers. I want to link it, nick, to something you also said because i see a Deputy Director from a national lab in front of me, i see other national lab leaders. Im curious about something you teased up around the smart cities point. And you talk about data, Data Analytics, greater and greater data needs, modeling and simulation. My other hat at the council im thinking High Performance computing capabilities, the shared National Infrastructure that we have in our National Laboratories that either probably already are engaged with you all or perhaps could be engaged more. I would love to hear your thoughts around what do you see as some of the tools that might be available that you already are using or perhaps need better access to actually do the work. We talk about smart cities, as you said, its not just about the grid. Its everything thats connected. And these things draining more and more energy. Its a huge challenge. Were working with so Many Technology providers today, Silicon Valley and otherwise, that are working on aggregation of customer loads, aggregation of system data to be able to really provide capacity benefits so you dont have to build that next Generation Facility. Those are the kinds of things that are working ill give you an example. Theres a company that weve been working with that, someone weve invested in, Battery Storage technologies weve invested in directly. But certainly, when we talk about some of the aggregation, theres a company that does work with target. I was in a target store, and they actually caused an event to occur. The lighting comes down 50 , and im watching customers, and they dont bat an eye. Theyre still looking at that their shopping for. Theyre shopping for. Theres value in that. Theres value not only in the human psychology, but also in the systems themselves that go all the way back through the system. And thats what were looking at. Well, lonnie, i also want to ask you a question that you raised, and it gets back to this Training Center idea. You know, youre working with the men and women of the ibew every day. What are you hearing from them . What is exciting them to be engaged with Companies Like nicks and others, you know . And how are you responding to that . Whats the new Labor Movement looking like in this space . Well, you know, especially with our utility partners, theyre good paying jobs. Yeah. When those folks go to work for the utilities, theres good quality jobs. Because theres a lot of skill. Theyre good middle class jobs. They can provide for their families. And, you know, we need more of those type of jobs. The Utility Industry provides that. And, you know, we love the partnership we have ill give you an example with all the storms that went down, you know . Our utilities have what they call mutual aid. I dont know how many people know that. When they bring linemen and linewomen from all over the United States and canada down in texas, down in florida but now weve got a number of them down in puerto rico. We can bring all these people, they really are the first responders, if you think about it. Yeah. Everybodys leading running away from the storms, our guys are driving down there and getting all their equipment ready to go. As soon as the storm passes, theyre trying to get things back on line. Were proud of what we do with our utility partners. And ill add to that too from the ibew perspective. You have a program called code of excellence. Yep. And that program is really focused on making sure people have the training necessary but also have the right attitude associated with the work that theyre doing. When you have an ibew worker on your premises, you know exactly what youre going to get. Theyre educated, they know what theyre doing. And many people think the unions are primarily, you know, craft, construction. It goes well beyond that. There are people that some of these jobs require a degree in molecular chemistry. So there certainly are across the bandwidth those kinds of requirements. And for the ibew to be presenting those kinds of professionals to our industry is extremely important to not only the security of this country and what we do every day, but also in terms of sustainability of our company. We have a few minutes remaining. Id love to open it up if there are any questions. People, start thinking about them. And, please, raise your hand and well get a mic to you. But oh, please. Tom. And please introduce yourself so our great panelists know who you are. [inaudible] oh, heres a mic for you. Tom baruch. I was curious, are you using drones for any of the maintenance, inspection, etc. And what kind of outcomes have you had . Yeah, we absolutely are. Matter of fact, hurricane harvey, the Hurricane Season thats come through, Hurricane Irma were using drone technologies. We had to work quite extensively with the federal government to get air space cleared so we could use them during those kinds of things. But youre going to see more trone technologies continue to drone technologies continue to develop not only in terms of regular maintenance, which is occurring today, but also in some element of reparations. Youre seeing a lot of research in that perspective. Then youve got to think about, okay, whats the skill set . Well, you need drone operators, right . And you also need people who know about the electric system. So its a natural extension to the jobs that are out there. Nick, a quick question for you. The council has had a longstanding history over the past decade really exploring things like internet security, sustainability, innovationing in the energy space and, of course, now coupling it with what we think is a key driver for a manufacturing renaissance in this country. As you think about what you provide and what you deliver, how do you think about linking that to the manufacturing customer and the value provided, and what do you see as the real opportunity . Do you see, as we do, Energy Strength and abundance . Or do you see some fundamental challenges going ahead that we, you think as a nation we need to address whether its talent, which we discussed, or an infrastructure issue that youd like to see that we maybe spend a little more time on . Certainly, we have to insure that this transformation doesnt impede the progress of manufacturing. We serve the midwest and southcentral part of the u. S. A large amount of our Customer Base is industrial and manufacturing. So were very concerned about that in terms of competitiveness. Our business is not about building that next Central Station Generation Facility that costs a lot of money. Its about optimization and efficiency is. And big Data Analytics, the new technologies, the automation, the digitization, all those things lead to the ability to provide that operating efficiency to insure our manufacturers remain competitive and want to locate in our for story. Lonnie, would love to hear from you. We ought to keep in mind infrastructure in the country. They need to be thinking about Energy Infrastructure as well. Right. Because weve got a pretty low grade. Weve got to have exactly. Theyre talking about roads and bridges, but energy, weve got to make sure that our grid is brought up to the modern standards right. Weve got to get more transmission lines. So the if theres issues that would happen in one area or another, we can, you know, move it around, switch it around and still keep things up and running. Theres a lot of modernization that needs to come, even though were headed that direction. Many of our Utility Companies already head in that direction, but theres a lot that needs to be done. So theres a lot that needs to be done. I dont want to put anybody on the spot in terms of rating, but if theres one thing from an infrastructure perspective that we could do as a country that would really improve our Competitive Position for the next 10 to 20 to 30 years, what would each of you say to that . How would you respond . I would say investment in innovation and technology. You know, this industry is the most capitalintensive industry there is in this country by far. Right. Over 100 billion a year of capital is put into this business. And for us to make those kinds of longterm decisions, we need consistency from a Public Policy standpoint to insure that we are making the right decisions as we go forward. But theres no question with Technology Changing the way it is today, we do need to have that forward view of what this industry is expecting, what our customers and shareholders are expecting as well. Any closing thoughts there, lonnie . I think, you know, the same thing. Like on the Construction Side of to house when were continuing to bring people in to train to do all this additional work that needs to be done right now, having the ability for them to know that, you know, this is a career thats going to be a sustainable career and that theyre going to be able to make, you know, a lifetime living at. So thats something when were bringing in new people, were always thinking about that, are we going to be able to sustain all these jobs. Right now we need everybody we can get. Well, i think from the perspective of the council on competitiveness, that last point is critical. As weve heard earlier in the day, you know, we face some longterm productivity challenges in this nation. But ultimately, its about prosperity and how are we creating an inclusive, growing economy for the average american. And i think youve provided, both of you, some insights into at least how one major sec for in our economy is really turbocharging and has the potential to make that happen. So i want to thank you both and look forward to working with you going forward. Thank you. Thank you. [applause] thanks again, nick and lonnie. So were going to pivot a little bit here. This is a little bit of an unconventional setup. Were just going to slide right into another conversation. But its going to be about another, i think, critical e emerging set of challenges that are at the heart of american competitiveness. The massive transformations that were living through today arent just about big data and analytics, aing though thats really critical, and theyre not just about the changing work force. But another transformation thats at the heart of our longterm productivity potential is coupling both of these in ways in which were moving people, in ways in which were moving goods and services. We are truly living through a state of upheaval in mobility. We are in an era of ondemand transportation. Frankly, were living in an era of ondemand lifestyles. With industries constantly redefining themselves daily through the integration and deployment of things like incar or onbike gps which is linked to a qr code or to a wireless mobile payment system. But all of which is surrounded by ubiquity, low cost and convenience for consumers. So id like to go deep on these things. I see our two panelists coming up to the stage, so id like to welcome the chancellor of the university of Californiasan Diego and mr. Choudhry, the principal at Altrinsic Global advisers. [laughter] okay, guys. Also like the last panel we have a short time, so were just going to get right into it. You know, im going to get your reactions to something i want to just pose for you. It seems like we know a great deal how human beings engage with traditional modes of transportation, traditional mode s of travel, but we seem to know less today about how ondemand, Autonomous Systems and vehicles are going to respond to humans in cities and the twisty roads of our suburbs and our highways. And we also seem to have to learn a lot more about how humans are going to be reshaping their own lives in a world of greater mobility and autonomy. So maybe im going to start with you but, rahan, i want to ask you the same question. What to you really see as the major societal transformations and the implications as we live and grow in this sort of more ondemand, supermobile paradigm . So i think we need to think about on demand as not just about transportation right. Its also about consuming content. I mean, ondemand consumption of video and all sorts of stuff. Playing games, right . I think theres going to be some fundamental structural changes in the economy. We are headed towards what i think of as the zero marginal cost economy, so you would have a zero marginal cost to own a car. Uber is a great example where somebody has the asset, i just pay the fare, and im done. There will be zero emissions on these cars, but the manufacturer of the car, manufacturing of the car led to emissions, but the operation does not if theyre all electric, right . Yeah. Therell be zero accidents. And there will be zero accidents, zero cost of ownership, zero environmental impact. And this fundamentally changes everything. So imagine now that people who have made their livelihood by manufacturing dishwashers and dryers where every one of us who has a home has to buy one, buy at least one. Imagine that you dont need as many homes because everybodys living in a room or two rooms in a larger communetype of environment or right . Manage not everybody has a dishwasher. So you can see fundamental structures in the economy. Your behavior is changing, the way you live is changing, the amount of money you need to live is changing, and thats what youre seeing with the millennials where theyre spending way less money right. Than you are you and i. Exactly right. So i see a fundamental shift. And i think its going to crack the economy completely open. So i just want to make one more point which is living in this economy is going to make more technical take more technical savvy than today. So its not just about creating jobs or getting jobs, but just living there is going to take technical savvy. Which leads back to what we heard earlier about the need for greater literacy. Yeah, just for living. Just for living. Rahan, thoughts. Thank you. I echo what dr. Coulson is saying. If we do look at the current models for transportation, its highly inefficient. It is one of the most inefficient utilizations within the current economic landscape. 1. 2 million fatalities, unfortunately, occur per annum, and if you look at the cost of ownership for a car, its about 7,000 above. So if we look at the Economic Impacts not only for cars, but Traffic Congestion has caused enormous impacts. There are estimates it costs 24 of gdp. If we look at 20 of the 25 most congested cities in the world are the emerging markets. Right. So is the top five are mexico city, istanbul, moscow and bucharest. So incredible amount of reduction not only in time, in wasted economics, but also in health. They say that the average child in bank cock, their iq bangkok, their iq points drop 5 . If we look at the atmospheric effects of co2, were close to a half a billion [inaudible] so the Current System is highly inefficient. So what is the new system . And as the doctor discussed, the new system is where the cost of a pooled taxi is about 2. 50 per mile. An autonomous electric vehicle is 17 cents. So were going toward the laws of zeros exponentially. The cost of Battery Technology is dropping in the mid teen levels. So by the middle of the next decade, electrical vehicle list price will be the same as an Industrial Combustion engine. And if you look at that by 20 job 20, 2021, the total cost of ownership will be the same. Additionally, if you look at urban space, up to 25 of urban space is based on parking. Parking garages perhaps may not be needed, they will be reconfigured into higher utelyization areas. And at the same time instead of driving and being occupied with driving, the car can actually become a mobile office in many ways. Right. You get a lot more work done or entertainment or rest because the mobile battery if you want the yeah. So the world looks at productivity actually declining over time. The Energy Revolution is one where we actually see an increase, and the increase will be positively beneficial to the World Economy beyond what current economists are expecting. Additionally, the if you combine that with solar energy, solar regeneration that nicholas and lonnie were just speaking about, if you look at the world as [inaudible] it also has the greatest differential between male and female education. And the only pro forma predicter of [inaudible] statistically, the only one is female education in the delta. So the revolution that will take place within the sun belt, we already have the Fastest Growing economies that face huge bottlenecks, and it will be revolutionary. I want to stay on this theme and pursue two threads. One is a technological thread. Both of you mentioned or hinted at some technologies you might see coming down the road that might lead toward this zero marginal cost road or towards a Greater Energy production so id like to hear more about, you know, predict a little bit more for us. Get out the crystal ball. And then i want if you could calls link that to the talent point you just made. Couple that with what you see as, and youre perfectly poised for this, what do we need from our students to make that world come to life . Right. So lets talk about what a zero marginal cost was. Right now if you live in a reasonably sunny place, you can have somebody install solar panels on your house which would power your house 24 7, plus through some electricity on grid, and you will get paid for it. In fact, you pay nothing. Right. You get paid for it. So some operator somewhere has got the cash, has the assets, deploys the assets, is using your rooftop as real estate, right . So that, to me, is zero marginal cost. And by the way looking at these predictions with a 7 trilliondollar economy. So the question is does it add 7 trillion . [laughter] so from perspective there is my a lot more thought involved with the social aspects. There is more ideas and we have by the middle of the next decad decade. So with other sources with nickel or cobalt. So this will be copper, and very quickly but the second area that would benefit the companies in the u. S. And also in japan enhancing the electric grid with electricity coming off the grid or onto it. And the third opportunity was the fact that many countries import. If we do like at the price of solar energy in india that diesel also the assessment is 50 of the capacity so toward battery and renewable so those areas that are importing oil with renewables with that economic impact. These are the three areas for m me. I want to give a chance in the two or three minutes left to ask any questions raise your hand. But to go back one more time that your position in a beautiful part of the world at the cutting edge of technology in this highly ondemand mobile what are students telling you about where they want to go . And how do they capitalize . Not as much as their parents but these 18 yearolds maybe there 40 or 45 yearolds. They are firstgeneration and those families focus if the kid would have a better life than i did so now they are concerned they may not. They want to focus on medical services and in these areas. But the chance that causes concern is the humanities and social sciences because these are the areas believe it or not, it isnt mathematics that allows you to do Critical Thinking with problem solving or making an argument is through philosophy or political science. Through the students on two campuses and that is the reason to be concerned. How you respond to that . How do you capitalize on those opportunities . To those people in your world . To rely solely on technologies solely binary. So technology is a tool. And to be into the copper miners. To that interdisciplinary approach. So if we want to display. But this is a global conversation what can we do to ensure that we are leveraging these opportunities . So i can imagine the car company and mobility and service i can imagine with those Service Providers to create Job Opportunities for these companies with the mechanical or the electrical we need to think what are those areas . But my view that universities require more interdisciplinary approach with the mathematics area and these groups that speak to each other just like the uc of arizona this is a completely new way from two or 3000 years ago. B17. I have to tell a quick story recently in phoenix we ordered and uber which was driverless. It actually had two drivers and one in case we went off the road to save us the other was the engineer. So we are not quite there yet but we are getting there. So talk about the opportunities in the Energy Sector with the autonomy ondemand paradigm what if they go even deeper . Concerns around the rapidly Artificial Intelligence both are triggering the future of the human workforce. With those demonstrated technologies. One third of the u. S. Workforce. So with that drumbeat of gloom and doom may we not see a growing demand for new opportunities . Maybe not see the demand with productivity growth . Im happy to address these issues and to go to the conventional wisdom b17. The robots are coming. The robots are coming. I feel like paul revere. By the way nobody has called me nicholas since sister francis in the first grade. [laughter] but the robots are coming. And whatever happened . As a risk to selfesteem as americas view but there is good News Associated with this there are ways around this to manage through this has to do with capabilities spread across with the upscaling of the workforce a seminal issue so how to deliver and overcome the perception all question because the robots are coming. I will give you my 102nd resume i start life as a football coach 11 years in asia by stroke of luck came to the Great Company or a good portion of my life along that time close to much my embarrassment and shame factories. But i opened many more for those businesses associated with i have meant extraordinary leaders beyond my station including those who lead those organizations but after all of that it has something to do with the rest of my talk. I delivered my own daughter. In the parking lot in the car at 430 in in the morning i grabbed that baby by the ankles and hit it on the rear and and heard it breathe its first breath and make its first account was a great moment my wife asked me is it a boy or girl . In the backseat of the car in the parking lot in the dark i was fooled by the umbilical cord left laugh. [laughter] true story. Keep that in mind. The robots are coming. But history singularity but in 1829 was the first time we saw indoor plumbing in the United States but economist in 1940, still 40 of the homes in america did not have indoor plumbing. I remember working on Cruise Control coming to fruition in 2006 available as a feature. But that doesnt mean it will happen either it will not happen by next thursday but it is coming. Because our strength because of the brilliance of the few the people that need those capabilities and robots seem to threaten that. They further threatened selfesteem. The American Dream has always about keeping your family warm and safe and dry to have pride and dignity so one of the problems we are seeing so a lot of people tied the Opioid Crisis but i am not ready to do that but the strength has been about more contribution work and our strength that is why we have so much angst and the salaries are not going up. So you can see this. There is a lot of proposed choices we are from Silicon Valley so he is different but a few people will have Brilliant Ideas get the universal maintenance salary to keep them well. That is one way to go. The Atlantic Monthly wrote an article two years ago World Without work and concludes where the brilliance you subsidize the millions for some sort of universal basic pay where america is civic ruin and loss of selfesteem. In fact competition with other countries, anybody can employ robots. Only america can take hundreds of millions of america and avoid them. It is an important factor i believe. So robots will place everybody so they will replace the humans but for those that are working on repetitive jobs. Reading the New York Times yesterday there was an article from Alex Williams about robots take my childs job. He ended up with a great line. Talk about repetitive jobs for those with variation will not. The robot plumber is far far far in the future. With sea to shining sea and why is this . That obvious outcome is not the focus. Most people think we can lower cost. We will expand the customization and therefore empower those people to manage the variation. We expanded our employment it is visceral. So can you imagine . My wife is screaming in the backseat and i have to depend on a robot. It depends on me to do that. Otherwise they would not have that memory to be fooled by the umbilical cord. We do have preferences. The robots are coming. We dont know how fast. We know they threaten the American Dream. We know there is a way coming around that making sure the workers can deal with nonrepetitive tasks. It is a seminal issue of our take on our time with no path to prosperity that is expressed in the idea with the global competition for jobs. And many compete to be the amplifiers of those ideas with the capability from upscaling is a differentiator but there is another factor. So with that emphasis on upscaling. And to have understanding Critical Thinking comes from the zen of vehicle maintenance. More what we consider technical careers car mechanics and Airline Mechanics because they are wielding technology. We need to make sure the schools match the curriculum. What is your businessman say about education . Many are very receptive to this but it is between business and education as we talk about robots that becomes more in question. Whether a manufacturing factory that is a perception question so to get into a situation and to interpret that as meaning if you enlist in one of these jobs you settle for the consolation prize of your society. This is something we must guard against and the more we talk about the more it becomes a risk to guard against. Says the robots are not coming long they are coming we dont know the rise but we have to get ready. They threaten americas strength. By our own hand the ability to keep your family warm and safe and dry with pride and dignity. All is not lost there is a lot of jobs enabled by technology but it requires the increase of capability to upscale the American Workforce by action and perception of those jobs it is the seminal issue of our time. There is nothing more important. Look at it this way. See in the future and we see robots we can either say we go to a universal minimum payment and save the American Worker is a question or the American Worker is the answer. That is the capability table wheeled technology to our advantage as it always has been. Thanks for listening and i wish you all a happy holiday and great new year. [applause] i have to shake your hand. Thanks for listening including reaffirming Human Potential. So those limit to the Manufacturing Sector. Through all sorts of Industries Including finance. 24 indicate they make no purchases using cash in a typical week 40 indicate indicate they dont worry about having cash on hand to make purchases. And as we have heard every day in the news the Virtual Currencies are on a tear. But that new type was fundamental longterm question can we imagine a world at 100 or 50 or 20 years when they no longer have the global currency of choice . What is this mean for competitiveness . I would like to introduce our next speaker and independent private investor to share his thoughts on this topi topic. Also bit going but also what is revolutionary revolutionizing the financial industry. [applause] talking about that going first mostly there is misinformation or disinformation some of that is intentional or unintentional so think about the framework of the coin or to some extent to be involved in conversations with people talk about creating Digital Currencies prior to the paper that appeared in 2008. What was happening 2008 . We were eight . We were in the midst of a financial crisis. If we thought about it somebody would say the Financial System is a fraud. Home prices are rising. Everybody is doing wonderful nobody would pay attention. So 2008 the Financial System collapsed, the weight that they responded to it so it was the perfect opportunity to say that there is the alternative for a long time when Ronald Reagan ran for president people dont remember his platform of supplyside economics he talked about cutting taxes but also going back to gold as a hard currency. The average life is around 45 years we are 47 years. What does bitcoin represent . With respect to the failures of the regime it is backed by nothing. As opposed to gold based any that is a hard currency but we dont need the hard currency if we have something that is virtual that everybody can hold in their wallet. If you look at what happens in the 19th century prior to a central bank with issues about when the constitution was first born in terms of gold and silver nose deposit insurance or no Central Bank Bank failures and a Financial System that people basically trusted and then the country grew. And then we created the fed and the tax code and deposit insurance and since then we had a lot of volatility. When the Financial System profit as gdp when reagan was president it was four or 5 now now fluctuates between 17 and 20 . Why does the Financial System have such a High Percentage of our economy . Because of Financial Engineering because it creates volatility. Then we delude ourselves the economy is proceeding well. Looking at the existing election and why so many people were supporters that are disaffected by the parties and these were nontraditional candidates. They really know the economy is not very good there is a website called shadow stacks. To say here are alternative measures so we used to have measuring government statistics in 1980 we revise 1990 and after 2000 use alternative measures. We give a lot of discussion into measure output and inflation. If we measure it like we did in 1980 what do you think the inflation rate is today . If we measured exactly that way what do you think it is today . 10 . If we measured according to 1980 we never recovered from the recession. Right now negative gdp if we measured the way of 1990 inflation at 5 . As opposed to the statistics we see right now to give discretion now they can alternate the basket i dont buy that but theoretically they could put in that Quality Improvement they can put these assumptions into the model so really we rendered our system so the average person feels that their purchasing power and wealth is worse off. Student loans cant get paid, bankrupt pension system, and a fragile Financial System. What do we have to do in 2008 . Bankers talked about paying back their loans, forced to take the capital necessary but they dont talk about the federal government guarantees those liabilities in the system more than 18 months so the spread between the bank funding and treasury were 400 basis points as soon as the government announced it would back it up it went down at 40. What is the value . Take all of those liabilities and assume the government guarantee is two or 300 basis points so what is the value in the Financial System . Nobody has that level of guarantee to have limited borrowing at the discount window. I could not get to the discount window. When jamie diamond said it is a fraud he is a fraud to save billions of dollars of fines for the defrauding customers he has a system to give him money the purchasing power will be less when he gives it back if he chooses because then you have to knock on his door to say i want the money but let me explain why i want to use it then he will give it back if he likes it. If you want to wire the funds here is what i want to use it for. They are not satisfied with the explanation they dont have to give it to you so it is their money. Not your money. So i can take your money. I dont have to give it back and pay a low interest rate. If i went to the marketplace with insurance and jamie diamond says i want to buy deposit insurance for my deposit liabilities and said how much do i pay to guarantee my balance i could tell you it would be significantly more than what he has to pay the fdic. It is the most fragile of the economy. When people started to say how do i preserve my capital were everything is tied to the fragile Financial System how do i create a value for myself . So you say may be agriculture or hard assets of real estate but what we also want to do people dont trust politicians or any institution. In the past what we do is try to contract that interest or create a Third Party Intermediary that is a neutral observer. So we also do base the currency and also an institution to be reliable as a trust agent. How do we create platforms amongst ourselves and between ourselves not having to worry about trust . That is a relevant concept. So no go to t19. If i start a Financial System today from scratch nobody ever heard the term money before you were all really smart we were confident the way we engage in transactions. So one is to go to the forest and give somebody a Printing Press this is the smartest person i know they will do it to their own criteria. To say we have a community to produce something according to certain rules a consensus. To put the energy with the algorithms so to have a certain amount of currency each month and over a period of time with the infrastructure that creates that currency is not hack a ball. It cannot be counterfeited so whatever activity goes on with the ledger is open to everybody. What system would you choose . If we started from zero nobody would choose the system we have today i dont know why anybody defends it. The existing system today is the fraud. Not bit cloying t19 nobody knows how it is created or mined and a quantity limit over how many are created each year so the last will be admitted 2140 so we so we have a little bit of 100 years 75 of been issued it will require more energy because the algorithm gets more and more difficult to solve that make them system more difficult to have so with that internal consistency. So now look at block chain. You have to separate lung separate bit cloying t19 the way it is created so look at it as digital all the other tokens that are issued those ecosystems require economic activity. They look at creating smart contracts and building applications. So basically to build the economic ecosystem as a platform. So tee19 is very different if you look at how the other crypto exist to basically say why do we organize firms the way we do well tee19 is the ellen to eliminate if you have a platform of information and broke her nobody controls that were ascribed value then i have a couple of examples. If i put information on facebook or i am looking at amazon or doing a Google Search i am producing data. They take that information and sell that. And to monetize the data. I like to think of it as value. Not work anybody engaged in this activity creates value or information people value that information. If i go out there and produce information so instead of me controlling who i sell the information to and i received the money i basically give that power to google or amazon or facebook in a way that maximizes their value but not mine. It is entertaining i put it out there im sure if i said with the information youre getting and providing to the platforms, they are selling this information if i gave you this much money to never use that platform again which would you value your engagement or the dollars . Most people would not be willing because there is no market pric price. So how do we create a market price for our Human Capital . They dont get the money because they are in the value business so how do we create already over ourselves . If a bunch of people have a heart problem so as we sit back go to the National Health foundation where they do all the research and then reminded we should take these drugs or do these things im sure that improves the quality of our lives. Im sure we would like to pay for that. Can you imagine a platform everybody walks around with their own Digital Health print if i do a study i dont see them saying we will take this and sell it we discount your treatment because we sell the data. No. It is very expensive. I say here is my digital wallet with my Health Records. You have 30 minutes to use it to treat me then it disappears. I am a platform designer everybody who has this health issue put this date on this platform. I dont know any individual so you on the data but you are free to put it on the platform we will hire these people will either sell the data to maximize the value or we can determine to say you have a heart problem we will analyze the data these are the people that can help you with your solutions so it empowers us talking about robots or human beings look at the individual what create serenity over ourselves . We give all the value to the third parties they are using and ways we would never pay them to because we dont know those intangible aspects this is the power of the block chain. If everybody issues a currency i can sit back to say this is my value somebody would say jeffrey has value to me in that token might have value so we might Exchange Tokens with the transaction that makes paper money irrelevant because that could be relative to each other so we have the explicit price for these transactions. We dont need banks we just need to figure out how to turn ideas and personal capital with a bit coin or block chain they are all liars. There is a lot more money going through the Financial System. I dont believe drug dealers are running around with the bitcoin wallets in their hand. The name will take in exchange for my bullet. Not happening. They are using money, credit cards, debit cards, Credit Credit but not bitcoin. The block Chain Community is returning power to the individual. That is what the community is about 17. [applause] now moving onto the next topic healthcare finds itself at a critical point in large part due to digitization. Twentyfive years ago it was analog today it is digital so think of 3d imaging pricing 100 less than it was 20 years ago. But with all of this happening so quickly the president of u. S. National academy of medicine we will hear your thoughts. [applause] thank you very much i thoroughly enjoyed the last two speakers. What about healthcare . That i interpret broadly as stem cells so i will tell you the next ten minutes of health in medicine and first of all i went back to my chinese roots you will see a set of slides to illustrate the complexity of the technology to say we live in interesting times. With healthcare and medicine are huge challenges of obesity and diabetes hypertension and cancer for the aging population with a larger discrepancy and also urbanization globalization and that leads to pandemics like ebola. So this is good policy. So i will demonstrate where those Technological Breakthroughs with engineering and nanotechnology of Artificial Intelligence. If you think of the medical breakthroughs with the Journal Articles so using the stem cells with new tissues in times of heart attack and galvanize your system to fight cancer. This is an amazing technique very Simple Technology but then see them you take in but also replace it of curing diseases. But not at the time of the embryo. But now to be treated for example 100 sans people have been treated the receptor of the hiv virus attacks the cell to kill it to make immune deficiency now it can be mutated so hiv can enter and guess what now in a way that enables you to treat hiv for a long time now it looks very promising that we can move that way and taking the cells from adults or a person with a genetic disease such as sickle cell and the bone marrow cells so the biggest challenge can you actually treat a genetic disease that the gamete or sperm or embryo . This is where the whole debate occurs of embryos also think of doing designer babies and that the russians excluded from the olympics but the gene editing to enhance muscle performance to name it. Clearly they are there now and within the next five years you will see some Real Progress in the medical arena for these therapeutic purposes. Embryo stem cells can now be harvested with real important work from winning a nobel prize i can now genetically program that in the tissue culture changing that to an embryo. Guess what . Now i can take the adult cell turning into a stem cell and now treat different diseases. This is what i do in my lab of genetic programming to a muscle cell directly with a severe heart attack the cells die and you farm a scar and you have Heart Failure now in the laboratory we can engineer a program a scar so to become muscle cells to actually repair the heart and Tissue Engineering as a blood vessel entering Clinical Trials and actually generates from artificial engineering. So with genes and neurons and neural circuits a culmination of light to be activated with the narrow circuit tori. With the interface. Now they can use the brain to drive the computer so you can see he can move his lips and as my colleagues have demonstrated, driving a robot in china so reallife exciting opportunities. Not only sequencing the genome but now measuring so many things together the power to predict using combination of data. When you think about this putdown prevention is important it is already happening can you measure your response, look at genetic profiles and what would be most useful for you. So to illustrate three diseases where these are applied and then the whole issue of data. Heart disease and aging. There is a slew of new drugs and imaging and new ways but i want to point out the following. , devices. There is amazing set of devices. How many have heard of the highbred operating room . Nobody. The ability to image the patient at the same time doing surgery that used to be take a surgery taken xray now you can do this but imagine doing this with cancer exact exactly the margin to do imaging and with robotics the ability to have pacemakers and also do. Ultrasound in real time but with cancer the imaging sequence making up 1000 different genetic mutations. But the breakthrough that you read about of immunotherapy but to fight your cancer. But that produces a signal that makes them weak they are called checkpoints by blocking those checkpoints now it is non treatable lymphoma and other areas. Now gene therapy to manipulate the system to fight cancer. Finally you can take the blood and measure the dna looking at the early cancer cells. All of this is real time happening right now. Aging. Imagine Artificial Intelligence the internet of things. This is an amazing area by which technology have lived a Long Life Technology engineering and to greatly enhance and work effectively. Finally the big issue of cost is to convert data to useful information we call big data and Artificial Intelligence. Electronic Health Records and other information with the Data Analytics can provide information and evidence of what to treat and new ways of approaching treatment. On the lefthand side they turn that into Machine Learning. I have to say i dont fully agree with the early speaker Artificial Intelligence can meet radiology or pathology but can outdo the human ability to reduce human error and this will transform medicine. I expect Data Technology will greatly change the way we engage patients and provide care and Healthcare Operations and research and many others. What is the future of healthcare . Where is care given . Delivered . Who can deliver the care . Who makes the diagnosis and improves productivity . All of those using big data and Artificial Intelligence so patients can play the role there are companies right now you can manage your identities to engage in the decisionmaking to see that intelligent assistant to help you do almost everything but also help you engage. In fact it can help you to move forward. So i say the implication we can cure disease with new knowledge and evidence to the veterans and those social factors and change the way care is delivered. What is the implication . Trust is an important issue do we have the right workforce . In terms of training . Does it replace physicians every doctor says rather than speaking to the patient what is the fda Regulatory Framework cost also if it drives down the cost of we have seen in many other areas do we have greater separation . With many social implications. We need more Systems Engineering social scientist and communications. Before that doctors only marcus will be we need teams of people and lastly as soon as 12 years ago that medical and Technological Breakthroughs are amazing tools and approaches to be better connected or democratized with better outcomes. But are we ready for it . So with the adoption of the new technology how do you pay for the cost of care . So that leveraging and incentivizing into repair this problem to get beyond this and to optimize it. Many others are ahead of us with the best Healthcare System in the world we need to pull more together. Thank you very much b17. [applause] i am always reminded we all require sleep and i have to note you just came in from japan for this presentation. Thank you very much b17 our final conversation. [applause] the president of Verizon Enterprise Solutions asking a simple question is america cyberresilient . Why does this matter . Because in 2021 cybercrime externally and dollars annually. Each individual attack with organizations small or large and as the Manufacturing Industry such as the cloud enabled internet door big data to simultaneously opening itself up and more foldable. Currently the Manufacturing Sector is the second most vibrant sector right behind healthcare in these affect the competitiveness so please welcome to the stage and sharing your insight. [applause] i will not give ut 19 back but i will give you some time. I apologize my partner in crime had to take a west coast trip back so we will do a Readers Digest because what to do cybersecurity it is a call to action so we will go pretty quickly. Yes we will. [laughter] we have a couple of issues Everyone Needs to be aware of with privacy that means most importantly you read about your identity being stolen. Also from a transactional point of view you dont trust privacy will not interact with each other so it is critical the other is the security isnt just privacy but becoming an issue of safety. It might be one thing in a room but if it is a control valve or a waste product it is a much bigger issue. The other most important aspect everything we heard today was the creation of value strength are organized to vandalize from ran somewhere with game of thrones and other things that happened with the original pressure on picture but the other major threat is the Human Capital issue for security and technical professionals and other areas around policy. There is an incredible shortage lastly as diversity of attack we have here called the data breach investigations report to create nine categories now the reason that is important 70 people around the world and organizations that is anecdotal with fatigue around security so one of the things it helps to prioritize how to approach cyberwarfare. Please regift it. But for the sake of time the issue with cyberattacks it is a national and a global issue and they are very wellprepared highly intelligent and extremely persistent. So what we will show you is an actual security issue and personal issue. So what we are asking is the involvement of the teen on the team so we can sit down with a lot of conversation over organization and other approaches with the closure to put these reforms together to have an opportunity to package the report for our counsel in the way so that we have one coming up in february held that verizon headquarters in new jersey at the Conference Center we would like as many people that could attend as possible. We also have two other sessions in closing, thank you for letting me give you the Readers Digest version all i ask please extend the invitation to have good participation and a crosssection of ideas to package. Thank you very much b17. [applause] please welcome president and ceo from the council of competitiveness. [applause] that was fantastic to really be the per buy will be very fast and first of all thank you for coming and participating. I would return to my favorite game of alliteration coming up to the tenpoint policy platform summarizing so the first is all about people with potential and potential and perception who prioritize problems reducing progress and productivity and propelling and prosperity pleasure and pride. All of you joining this party to be part of the promotion to participate in the year ahead for the work of the council thank you for your participation and support please take that clarion call to promote in all your activities i look forward to working with you over the years and anything we can do at the council to help your agenda. Stand up will do a staff picture i want to wish everybody safe travel. [inaudible conversations] i am here today for the right to pursue happiness. So every citizen of this country has the right to pursue it and i believe it is incumbent upon us as americans to bestow that right upon others, each each other and the rest of the world. So the right to pursue happiness is tripped away. It is abused and taken by force by fraud or coercion and sold for the momentary happiness of another this is the time when i Start Talking about politics where they tell me to stick to my day job. With the cofounder we build software to fight Human Trafficking that is the core mission my other day job is a father of two with a two monthold and 8yearold as part of that job i take very seriously i believe it is my effort to defend their rights to pursue happiness i have met victims in russia and india and those that have been trafficked mexico new york and new jersey i have been on fbi raids seeing things that no person should ever see. Back but in china those dissenters are leaving without papers to be sexually exploited while the emphasis continues to urge china and russia support more economic sanctions should also do more with those defectors. We call that paradigm i say that humorously but makes a point about the difficulty to be so precise given the global interconnection of the internet for everybody communicates with good people and bad people. He knew he was fighting for in the people he wanted to help. All he cared about was could he deliver to be on their side