Solidly middleclass folks and more than 90 in bankruptcy because of a medical problem, a job loss, or a family breakup. The squeeze on the middle class was getting tighter, and more and more families were deep in debt. Bankruptcy was their last option to scratch their way back to dead flat broke and tried to build some kind of future. Credit Card Companies saw this and they figured out that they could boost the profits if the squeeze these people a little harder. So they wanted to change the bankruptcy laws so that hundreds of thousands more people every year would be locked out of bankruptcy and left mired in debt. Their profits by squeezing people, drowning in medical debt and deal with job losses. I was truly appalled. Now, understand how this fight shape the. Credit Card Companies were smart. They had already led to a lot of powerful folks to support them, both democrats and republicans. They had money to lower. They had lobbyists galore. And the families going bankrupt, they had nothing, literally nothing. They had the lobbyists. They were miserable and so humiliated they probably would not have shown up for a political rally if they had been invited. Senator kennedys counsel, melody barnes, had heard me give a talk and she came up afterwards and she said to me you need to meet my boss. I never met him. It was april 171998 april 17 1990. I showed up on the 24th floor of the jfk building. Now, understand i didnt anything about politics. I had never met anyone like this. In fact, i was a registered republican until a few years before the. But the senator agreed to meet with the. He greeted me like we had known each other forever. He swept me across the office and over to his windows and pointed out Old North Church and all kinds of other sites. Talked so fast i could barely understand him. We had 50 minutes on the schedule, and we sat down and started to talk about what was happening to working families. About how hard some of them were getting squeezed, about how hard they work and how much was going wrong. And about that bankruptcy bill. And a 50 minute meeting turned into an hour and a half. And at the end, senator kennedy stood up and he gave me that big, beautiful smile, and he said, youve done it, professor. You have my vote. I looked straight back at him and i said, we dont need your vote. We need your leadership. Thats a big difference. Its been like the difference between being a kindly uncle who drops by at the right time with a Birthday Gift and being a parent who has to raise the kids every single day and make it work, to be the one who gets out there and trades and pushes and pulls. We needed him to agree to be the leader, and it was a really big ask. He stood there. I remember exactly what he looked like. His eyes were puffy. He was a little stupid. He was in constant back pain. He looked tired and he looked over at that big satchel of papers that he always carried. The satchel full of a zillion other commitments that he had already made a zillion other fights that he had already agreed to fight. He looked at it and looked back at me, looked again and then he just said ill do it. And thats what he did. He kept his word and he led that fight for 10 years. I left his office and i went out to the Elevator Bank and put my head against the wall, and i cried. Senator kennedy changed my life that day. I had liked politics. All the lobbyists and cozy dealings and special favors for those who could buy access. But i stood in the lobby outside ted kennedys office and i felt clean. I had come into his office with no political connection, no money, improving the bankruptcy system certainly wasnt good help in his next reelection campaign. And, frankly, everyone knew that eventually we were going to lose this. But senator ted kennedy the lion of the senate, agreed to lead this fight because it was the right thing to do for millions of people hanging on by their fingernails, who just desperately needed a little help. He changed my life and he changed what i understood about public service, what it means to fight for working people just because its the right thing to do. This institute will give millions of people an opportunity to be inspired. That is the perfect way to honor the memory of ted kennedy. Thank you. [applause] distinguished guest send it again everybody here knows loved music and love to celebrate and you can have one with the out of the. So we are happy to abide some of the. This is one of his favorite songs the deal free to sing along. Theres a bright golden haze on the meadow theres a bright golden haze on the meadow the court is as high as an elephants eye and it looks like its climbing clear up to the sky a oh what a beautiful morning oh, what a Beautiful Day. I got a beautiful feeling everything is going my way all the cattle are standing like statues all the cattle are standing like statues. They dont turn their heads as they see me ride by the wink in her eye oh what a beautiful morning oh what a Beautiful Day. I got a beautiful feeling everything is going my way a note under [applause] all the sounds of the earth are like music all the sounds of the earth are like music the breeze is a busy it dont miss the tree and an old weeping willow are is laughing at me oh what a beautiful morning oh, what a beautiful they ive got a beautiful feeling everything is going my way band of everybody sing. It will keep you warm. All, what a beautiful morning oh, what a Beautiful Day ive got a beautiful feeling everything is going my way. Oh, what a Beautiful Day. [applause] ladies and gentlemen, please welcome senator edward m. Kennedy, jr. [applause] thank you everyone. Thank you, everyone. I want to thank keith rock art and incredible boston pops for being with us this morning. [applause] and i just want to say one thing. Its not true that my father really wanted to be president. Who he really wanted to be is brian stokes mitchell. [laughter] that is the life that might bother really wanted if he couldnt, if he didnt have if he did love the United States senate so much. On behalf of the entire entity family, thank you for being here come and thank you for joining us in this incredible celebration. I have the honor and privilege of introducing to you a great american, an american hero. The man im going to introduce today has served our country, not just worn the uniform, but also has persevered. And in many ways reminds me of my father in that way. His patriotism, his love of this country, his sticktoitness, and his willing to put aside differences and find ways to really get things done. Senator mccain my father so enjoyed his collaboration with you year after year, and i think he really looked upon his senate days working with you as some of the great moments of his senate career. Ladies and gentlemen, please join in giving a warm boston welcome to our friend, senator john mccain. [applause] thank you ted. Dickey, patrick, mr. Vice president , all of teds family and friends, colleagues assembled here. Its a privilege to be with you today to help dedicate this wonderful institute. A fitting memorial to the man who gave a halfcentury of dedicated and Accomplished Service to our country in a place he truly loved the United States senate. I wish i hadnt already told my best anecdote about ted at his memorial service. It might have been appropriate here. It concerned an exchange he and i had on the senate floor that was notable for his volume and vigor. Thats a good kennedy word for you. The story that we both enjoyed telling. Since the of you were present the last time, i wont repeat it today kelo, its a good one. [laughter] we were on the floor [laughter] they were two freshmen senators one democrat, one republican who got into a parliamentary dispute and i saw it taking place i went down and naturally totook the side of the freshman republican senator, and two should appear out of the democrat cloakroom to take the side of the democrat the freshman soon facetoface, eye to eye violating all rules of the senate, yelling at each other. The two young senators fled to the cloakroom [laughter] and after was over we walked out. Had put his arm around me and said ready good job, didnt we . [laughter] that was the essence. But, you know and i know you didnt mind doing it again, because that and i both believe that if a story made you laugh once, it could make you laugh again. And again. And again your eyes to getting laughs for jokes i stole from udall years ago. [laughter] i miss my friend. I miss him a lot. I knew i would when i said six years ago and then it wouldnt be the same without him. And it hasnt been. Thats mostly for reasons unrelated to losing ted but i have no doubt the place would be a little more productive and a lot more fun if you were there. We all know ted was a passionate liberal. He was happy to impress on you with the booming baritone of his just how passionate and how liberal anytime he was challenged. I dont have a very timid personality myself. When either of us was roused to appropriate indignation we could get a little heated. And if we are on the senate floor at the same time and at the same temperature well, watch out. It was a great thing though about ted. He loved it. He loved a good fight. He had a real zest for political argument, and the harder you went at it, the more he enjoyed it, and the harder he laughed about it when you next encountered him. He loved the place. You could just tell. He loved its history and its unique attributes and its curious means for making incremental progress on the problems of our time. He saw himself as a steadfast advocate for his causes. And no innocent opposed him like me or debated him without respect for his passion and his powers. We all listened to him. He was hard to ignore. But he also saw himself as a problem solver, which all legislators should aspire to be. He didnt, we didnt always agree on what the solutions to our countrys problems were. Sometimes we couldnt even agree on what the problems were. But when you did find Common Ground, and forged a compromise solution for the sake of making some improvement in the state of our union he was the best ally. Persistent, patient, passionate, thorough tireless, always true to his word. And just Excellent Company and all the battles, small and large, that you fought along the way. He made you love the place, too. Because you saw this in its potential in its many successes there, most of which were achieved by being as committed to the heart and sometimes stall with the legislative as he was a to the more fun aspects of the job. He took the long view. He never gave up. He advanced his causes by degrees, and often, too often for my site, he would eventually win it all. Im less patient than that was but i know his approach was best suited to the institution. It was the states that any. Tactical, farsighted, and continued. That made the passionate outspoken advocate so damn effective. Thats a good lesson for all of us. As i said, i miss him. I miss his company. I miss that voice suddenly jolting us out of some debate that had dragged on for too long. I miss fighting with him to be honest. Its gotten harder to find people who enjoy a good fight as much as ted did. [laughter] i miss his storytelling. His laugh. I miss the pride sometimes solemn pride that often joyous pride he took in his familys history, and the Important Role they played in the history of our country. Know, the place hasnt been the same without him. But if we learned the right lessons from the late edward m. Kennedys example, from his love achievements in the u. S. Senate, we can make it better. We can make it a place where every member can serve with pride and love. Thank you. [applause] ladies and gentlemen please welcome congressman patrick j. Kennedy. [applause] i can just see my father out here this morning in the line last night [laughter] he would be right out there wonder if you got a cup of coffee while youre waiting. Am i right . Then he would say i cant believe [laughter] and exit out the door right, kevin . I am so honored. My family is so honored as i see this crowd here i see my father. Because all of you are part of his life. And seeing you brings back great memories for me, and my entire family. I want to take this moment before had the honor of introducing the Vice President to acknowledge my mother joan bennett kennedy. [applause] of course my dad would be saying, make sure you remember your mother. [laughter] so i did. I did. I want to take this opportunity you know the thin as a phrase, my friend. They keep referring to my friend. Well, it could never be more true than what he talked about joe biden. Mr. Vice president , you were there for him. He was there for you. In good times and in bad times. You are on the same side of the aisle but you were sitting next to each other for years on the Judiciary Committee fighting that battle for social justice that was encapsulated in his mass card of matthew 25. Those who would therefore the least one of these my brothers and sisters is there for me. And you, mr. Vice president , have carried that same faith to help bring more americans into the circle of opportunity, which was my fathers great passion for this country. [applause] but all of us know joe biden, just like my dad, loved people, loved the fray and loved to get into it, and then solve the problem. And he was a happy warrior, and our next speaker our Vice President joe biden is also a happy warrior. Please give a great round of applause to our Vice President , joe biden. [applause] thank you very much. Thank you very, very much. Thank you for the introduction, patrick. Teddy junior, caroline the key vicky, its a great honor to be asked to speak here today. There are many others in the audience and behind me who deserve this honor more than i do. Joe and jean, the whole Kennedy Family, my sister valerie and i are truly honored to be here. You know there are scores of stories that we could all tell. My guess is everyone of you in the audience has a story about ted kennedys generosity and friendship towards you. Stories that made a difference in your lives. But truth is patrick, its doubtful that i would be that i would have won my election in the first instance were it not for the fact that your father literally with less than a week left to go came to wilmington in delaware rallied about 2000 democrats and started off by saying, you know, im here for joe biden but i think hes too young to be a senator. [laughter] everyone in the audience understood it. It energized been. I was then 29. I didnt turn 30 until after election day. But the next day in the wall street journal on that column on the left side it said kennedy says joe biden too young for senate. [laughter] that just energized my base, and i won by a landslide by 3100 votes. [laughter] what of the more series notes its close to certain that i would have never been sworn in as a United States senator but for your father. Your fathers encouragement. Literally reaching out to me and pulling, pulling me to washington. As a matter fact i was supposed to go down to be sworn in. I didnt want to. And they didnt show up the day i was to be sworn in. It was your father her father who, along with Mike Mansfield sent the secretary of the senate to a hospital in wilmington delaware, to swear begin with my boys. After i arrived in washington, your dad, although its presumptuous to say this, treated me like a little brother, at least thats how i felt. When i arrived in washington after everyone else had been sworn in, your dad became my tutor and my guide. He introduced me to other senators who i had never met. Im the first United States senator of a name i never knew. I remember him taking into the Senate Gymnasium and all these very famous famous senators who is trying to be out of of the office and keeping engaged and i remember walking in in the Senate Chamber, and the senate gym by in a ymca the men walk around between the shower and the stalls with nothing on. Ungovernable walking in and said joe, id like you to meet jack and i remember going how are you . Last night i swear to god. [laughter] [laughter] i want you to meet [laughter] i was like, i felt guilty i was fully clothed. [laughter] thats a true story. [laughter] oh, god, was i embarrassed. Your dad also intervened and got me placed on important committees usually not available to freshmen senators. He not only look out for me but he looked out for my sons. I remember, i dont know how many times he probably drag you guys to the Kennedy Center and let me sit in the box next to him with mike is something you guys were wondering what in the hell are we doing here . But you always reaching out to my sons, and later my wife jill, and my daughter. Something about teddy kennedy, something about the kennedys. But you all know it. Everyone in your understands it. He was an anchor to many of us in our personal lives. Hes also the anchor in an institution that we revered. We shared a lot of perspectives on the world and our place in it, but one that was written on our sleeves was we both view to serving in the United States senate as the single greatest honor and the greatest responsibility we had in our lives, next to being fathers and husbands. We both believed, and i still believe, that our democracy would not have survived as it has over the past 226 years but for the brilliance and foresight of our founders, students of montesquieu, who understood that the separation of powers among the three branches of government were the only and ultimate guarantor of individual liberty. As a u. S. Senator, chairman of the Judiciary Committee, chairman of the Foreign Relations committee, now as Vice President , i have lived that wisdom from a very unique perspective. And with teddy as my guide. In the senate we worked with eight president s of both parties. I watched and challenge them when he thought they were wrong, while always paying deference to the office they occupied, never demeaning it. I served with him 32 years on the Judiciary Committee, sitting next to them. I watched him fight tooth and nail for equal justice for all, but always always with a deep belief in the indispensability and independence of the role of the judiciary, the only sure guarantee of our justice. What he really taught me was the meaning of john adams observation, the senate was the colossus of the constitution. Athens said no republic can never be for any duration without a senate, and a senate deeply and strongly rooted Strong Enough to bear up against all popular storms and passions. I think he believed that with every fiber in his being. Every single senator stood with thunderous applause and tears in their eyes welcoming back the line in the senate knowing his passion on the day he entered the body to see to it that we no longer debated whether or not healthcare was a privilege all right. He debated [applause] i watched him as john said debate and contested some of the most divisive an important storms and passions of our time, the Voting Rights act to equal rights amendment the watergate the wars in vietnam and iraq the old morning of Supreme Court nominees to serve in the body that he fully understood and told us all would have more impact and effect on the fate of the nation than anything we did other than declaring war. And what i observed in every instance was that as passionate as he felt the always pay deference and respect to the institutions that were involved whether it was the presidency, the federal judiciary come all the congress. And the other observation that all those present here who served with them can attest to, teddy understood that to unlock the potential of the United States senate to enable it to arrive at consensus was about more than just mastering the details of the issue of the day come and he didmore than just mastering the details of the issue of the day come and he did master them. He understood that consensus was arrived at from an accumulative effect, emphasized, and the cumulative effect of personal relationships, the Little Things that you did for the other built over time. That is what generated the trust in the Mutual Respect that only teddy was able to do. Forgive me for saying i i think he was wrong that all politics is local our politics is personal. All politics is personal and no one, no no one in my life understood that better than ted kennedy. I remember vividly as he i sen. We still have a lot of the old anti civil rights members of the south, nine to be exact when i arrived and teddy was their nemesis. I remember him debating sen. Jim eastland in the and the judicial committee, a powerful anti rights chairman. Barry goldwater on the war in vietnam or john mccain on issues of Foreign Policy and others. Different men with different perspectives but when the debate was over as john referenced, teddy would inevitably walk across the aisle to his colleagues desk, shake his hand and more often than not go down to the Senate Dining room and get a cup of coffee together. He reached out to everyone always, always building and maintaining personal relationships and trust. Even those who had profound disagreements. Teddy did not have to be taught the lesson that the majority leader Mike Mansfield taught me want to buy criticizes senator in his office. He looks to me and said joe, it is always appropriate to challenge another centers judgment. It is never appropriate to challenge them out of because you dont know what the motive is. That is why he was able to frequently forge compromise and generate consensus. In the process the health make the United States senate work as it was designed to work. He believes. He believed what he said, that being a United States senator changes a person. It is bigger then you and it requires you to always be willing to listen to another perspective and to be open to changing your mind without betraying your principles. As my dad would say teddy was a big man. He was never small. He was always gracious. As a consequence he raised everybodys game. It is hard to beat teddy when the man and woman you are debating is being grand and magnanimous. Reminds me of a quote my sister always uses attributed to michelangelo was a sculptor a sculptor at heart. He said, michelangelo allegedly said, i saw the angel in the marble command i carved until i set them free. Teddy set free a lot of folks. He appealed to the better angels. That was teddy. He set a a really high bar for his fellow senators like the former and current ones who are here today. And when he demanded no less than he applied himself and his staff. Teddy was always optimistic at least the time i was with command that was an awful lot come always helpful because i believe, like to few people today, he believed in the basic instinct and capacities and goodness of the American People if just given half a chance. He believe that if you listened to the other guy the other woman if you actually listened you might find something about their argument that made sense and anything was possible. Ultimately in my perspective i i think that is his true legacy measure as a a consequence of how we look at one another and in turn how we look at ourselves to establish trust and faith in an institution, in an institution with the potential to make us all better. That is what i expect the institute to fully convey to the future generations of americans who wander through this magnificent place. Ladies and gentlemen, i am not stating anything you dont already know. This country hungers for a resurgence of the baseline belief in the system of selfgovernance admired for its wisdom in the face of passionate differences and for the ability to compromise seemingly unbridgeable divides with dignity and dispense. I am confident that this institute will serve and satisfy the appetite. The pundits say that we are divided today more divided than we ever were. That is simply not true. Look at every major poll on every major issue there is consensus in america. The political process that has been building and generations of americans from every state will enter this as to did with the chance to debate and raise real issues and develop the capacity to speak up and make their case. I hope they will learn always respect and hopefully they will return home with the power and capacity to listen to different views, forge a consensus that makes it possible for their community and the country to function to its fullest potential. What more fitting tribute to senator Edward M Kennedy that lesson to not only learn but show like so many generations of young men and young women and men. The anchor of our personal lives and anchor for the senate as an institution. Let this play serve as a true compass pointing toward his unyielding faith of the limitless possibility of the American People in this country. Thank you for allowing me to be here and god bless you all. [applause] [applause] [applause] thank you, mr. Vice president. That was beautiful. These are two songs that i think beautifully capture the heart and the spirit that only of senator kennedy, but the hearts and spirits of what this institutions will be. Zero, beautiful for spacious skies for amber waves of gray. For purple mountains majesty above the fruited plains. America america god shed his grace on the and ground by good with brotherhood. From see to shining sea. Zero beautiful for patriot dreams that seem beyond year fine alabaster cities gleam. On end they human tears. America america god shed his grace on the. And ground by good with brotherhood. From sea to shining sea. See his face. And hear his heartbeat and when i we will show him america and he will rise on the other dream. Ladies and gentlemen, the president of the United States mrs. Michelle obama and mrs. Victoria kennedy. [applause] [applause] [applause] [applause] mr. President , mrs. Obama mr. Vice president governor baker leaders senators mccain, warring, markey, maher walsh doctor Jean Mccormick robert caret chief keith motley, cardinal omalley, to omalley, to the senators members, and elected officials who have joined us today, the childrens choir stokes mitchell friends on behalf of teds sister, jean, teddy junior and kiki, patrick and amy, karen, caroline and the entire Kennedy Family standing beside me literally and in spirit we are honored and grateful you all can be here. Thirtysix years ago my husband came here to dedicate the president ial library nextdoor. Speaking about the speaking about the older brother he loved and admired so deeply teddy called the moment a combination a happy rendezvous with history that makes his memory come alive. Today the same is true for all of us who loved Edward M Kennedy. It seems like only yesterday i was standing with teddy at a window on the 7th floor of the jfk library looking down on the plot of land where this institute now stands. It was an empty lowlying field but he had a vision that something extraordinary could rise from. Ascould rise from. As we looked out the window teddy pointed to a little pine tree and said to me that is where the institute is going to be. And we and we stood theyre for a moment imagining what it would look like and institute without fullscale recreation of the u. S. Senate right here in boston the city of his birth that he loved so much thanks to the heroic efforts of so many people that chamber and this institute stands exactly where teddy janvier would. But as but as with teddys wish, this institute is not about one man. It is about the nearly 2,000 men and women who have served in the United States senate who since it 1st convened and about those who might be inspired to serve and it in the future if they only knew more about the Important Role of the senate in our democracy. Teddy used to say, everyone knows but the presidency. We have president ial you have president ial libraries, but they do not know so much about the senate and the legislative process. Then he smiled that famous smile and say with more than a hint of mischief after all, we are in article one of the constitution. [laughter] teddy love the United States senate, senate, the history and the great senators of the past command he loved the great senators he served with. You. He loved the buildings. He loved the Senate Chamber. Most of all his of the difference americans could make. Strengthening americas leadership in the world. Sure the senate has seen its share of disagreements sometimes for months but as teddy understood, that was part of the process. I found was never intended legislating to be easy. It requires hard work all of us understood that he worked hard at it because he believed that the United States senate had the power to change lives the lives of people in this country the country the lives of people around the world. He served he served in the United States senate for nearly 47 years and he noticed something during that time. When he became a senator something changed maybe not the 1st year or the 2nd maybe not even in the 3rd year but at some. Almost always something happens. You start to think about more than yourself. He started to think about the country. Teddy wanted to build a place where everyone could feel the same way a place where all of us could start thinking about our country. The the institute that you see today is a realization of that dream. And just as teddy approached politics differently he wanted to approach this institute in a completely fresh and unique way. So we have a totally handson interactive Visitor Experience command it is an experience. Visitors interact not only with the exhibits that each other. Were using the best of technology while encouraging facetoface interaction and negotiation. It is an entirely knew model of Civic Engagement and at the center of it all is that magnificent fullscale recreation of the Senate Chamber. That recreation was so important. He believed in the majesty of the place and its power to inspire and he felt that no experience as a senator would be complete without understanding the all that you felt walking into that chamber. As student groups have visited we have seen that in action. A buzz in the hallways talking about issues or exhibits, exhibits, but as soon as they walked through those double doors, a hush comes over. They seem to no instinctively they are in a special place. And no space they will try to pass the compromise of 1850 four has shown Immigration Reform for some issue that is not even on the agenda yet. When they do they will learn a lot more than which senator was responsible for what bill. We hope we hope they will also learned that despite our disagreements if we sit down and talk to each other and listen to each other what perhaps then we can find Common Ground. Perhaps then together we can making progress. Teddy hope that every one who came to this institute would realize that politics, and he called the politics is a noble profession, even even if it is messy, even if it is hard. Teddy wanted people, young people in particular to rise above and move beyond reports of gridlock and paul numbers and become active participants in democracy come over whether that means serving in the senate or on the school board were just voting without fail. As far as teddy was concerned, if we all did our part there is nothing we cannot accomplish. We are americans, he said. This is what we do. We do. We reached the moons. We have scaled the heights. I no it, i have seen it in my lifted, and we can do it together. The institute will inspire us to do it again. Teddy actually spoke those words in 2,008 at the Democratic National convention despite his own illness looking to the future and looking forward to speaking on behalf of a dear friend, the then junior senator from illinois a legislator teddy had recruited to his Senate Committee and there was no higher than that. So it is my great honor to introduce a man my husband loved and admired so much that he gave him a puppy. [laughter] a man who understands the power and promise of our democracy, a man who stood up and fought for and long last signed the bill and shining in law with teddy called because of his Life Health Care for all americans. [applause] and a man and a man who was also a United States senator ladies and gentlemen, the president of the United States, barack obama. [applause] [applause] thank you. Thank you so much. Thank you. Thank you very much. Please, much. Please, have a seat. Thank you. Thank you so much. Vicki, ted, Patrick Caroline and asher smith members of the Kennedy Family thank you so much for inviting me to speak today. Your eminence, cardinal omalley, Vice President biden for governor the governor baker, merrill watch, members of congress, past and present and pretty much every elected official in massachusetts. [laughter] it is an honor to mark this occasion with you. Boston no that michelle and i have i have joined our prayers with yours these past few days were a euro the former army ranger and Boston Police officer john moynihan, who was moynihan who was shot in line of duty on friday night. [applause] [applause] i mention him because last year at the white house the Vice President and i had the chance to honor ofc. Moynihan as one of americas top counts for his bravery in the line of duty, for risking his life to save a fellow officer. Thanks to the heroes of boston medical center, i am told officer moynihan is awake and talking, talking and we wish him a full and speedy recovery i also want to single out someone who very much wanted to be here just as he was every day for nearly 25 years as he represented this commonwealth alongside ted in the Senate Secretary of state john kerry. [applause] we be if you go john is in europe with our allies and partners leading the negotiations with iran and the worlds community and standing up for principle that ted and his brother pres. Kennedy, brother president kennedy, believed and so strongly. Let us never negotiate out of fear, but that is their fear to negotiate. Finally [applause] finally in his 1st years in the senate ted dispatched a young aide. Simple and help ted kennedy make history. And so i want to give a special shout out to his extraordinarily loyal staff 50 years later a family more than 1,000 strong. This is your day as well. [applause] we are proud of you. [applause] of course, many of you now work with me. [laughter] so enjoy today because we have to get back to work. Distinguished guests, fellow citizens in 1958 ted kennedy was a young man working to reelect his brother to the United States senate. On Election Night the two toasted one another. Here is to 1960, mr. President , ted said if you can make it. And with his quick irish with jack would turn the toast heres a 1962 senator kennedy, if you can make it. They both made it. Today they are together again in eternal rest in arlington but their legacies are as alive as ever. Together right here in boston. The john f. The john f. Kennedy library nextdoor, the symbol of our american idealism the Edward M Kennedy institute for the United States senate as a living example of the hard, frustrating, never ending but critical work required to make that idealism real. What more fitting tribute what better testament to the life of ted kennedy than this place that he left for a knew generation of americans a monument not to himself but to what we the people have the power to do together. Any of us who have had the privilege to serve in the senate know that it is impossible not to share tags off for the history swirling around you and all in still is still that him by his brother jack. Dad waited more than one year to deliver his 1st speech on the senate floor. That is no longer the custom. [laughter] it is good to see trent and tom daschle here because they remember what customs are like back then. And ted gave a speech only because he felt there was a topic the Civil Rights Act that demanded at. Nevertheless, his book with humility aware, as he put it that a freshman senator can be seen and not heard should learn and not teach. Some of some of us i admit, have not always he did that lesson. But fortunately, we had fortunately, we had ted to show us the ropes anyway. And no one made the senate come alive like ted kennedy. Was one of the great pleasures of my life to here ted kennedy deliver one o speeches on the floor. Rarely was he more animated than when he would lead you to the living museums they were his office. He could and would tell everything that there was to know about all of it. [laughter] and then theyre were more. I remember the 1st time i pulled open the drawer of my desk. Each senator is assigned a desk, and there is a tradition of covering the names of those who had used it before and those names in my desk included taft, Baker Simon Wellstone and robert f kennedy. The senate was a place where you instinctively pull yourself up a little bit straighter where you try to act a little bit better. Being a senator changes a person ted wrote in his memoirs. As big he said it may take a a year or two or three but it always happens. It fills you with a heightened sense of purpose. That is the magic of the senate. That is the essence of what can be. And and who but ted kennedy and his family would create a fullscale replica of the Senate Chamber and open it to everyone . We live in a time of such great cynicism about all our institutions and command we are cynical about government and about washington most of all it is hard for our children to see in the noisy and too often Trivial Pursuits of todays politics the possibilities of our democracy our capacity togetherilities of our democracy, our capacity together to do big things and this place can help change that. It can help light the fire of imagination plan the seed of noble ambition in the minds of future generations. Imagine. Imagine a gaggle of schoolkids clutching tablets turning classrooms and to cloak rooms and hallways and the hearing rooms, sign rooms, sign an issue of the day and the responsibility to solve it. Imagine their moral universe expanding as they here about the momentous battle waged in that chamber and how they echoed throughout todays society, Great Questions of war and peace the tangled bargains between north and south, federal and state the original sense of slavery and prejudice the unfinished battles for civil rights and opportunity and equality. Imagine the shift in their sense of what is possible the 1st time they see a video of senators who look like they do, men and women blacks and whites, latinos, asianamericans those. A to great wealth, but also those born of incredibly modest means imagine what a a child feels the 1st time she steps onto the floor before she is old enough to be senator before she is told what she can do before she is told who she cant talk to our work with what she feels when she sits at one of those desks what happens when it comes return to stand and speak on behalf of something she cares about and cast a vote and have a sense of purpose. Maybe just not for kids. What if we all carried ourselves that way . What if our politics, our democracy were as elevated, as purposeful as she imagines it to be right here toward the end of his life ted reflected on how congress has changed over time those who served earlier had the same conversations. It is a more diverse, more accurate accurate reflection of america than it used to be, and that is a grand thing, great achievement but ted grieved the loss of robbery and collegiality the facetoface interaction i think he regretted the arguments now made the cameras instead of colleagues directed and a narrow base instead of the body politic as a whole. The outside influence of money and special interests and how it all these more americans to turn away in disgust and simply choose not to exercise their right to vote. Since this is a joyous occasion, this is not for me not the time for me to suggest a slew of knew ideas for reform although i do have some. Maybe maybe i we will just mention one. What if we carried ourselves more like ted kennedy . What if we worked to follow his example a little bit harder . To his harshest critics who saw him as nothing more than a partisan lightning rod that may sound foolish but there are republicans here today for reason. They know who ted kennedy was. It it is not because they shared his ideology or division but because they knew him as somebody who bridged the partisan divide over and over and over again with genuine effort and affection in an era when bipartisanship have become so very rare. They knew him as somebody who kept his word they knew him as somebody who was willing to take a half a loaf and endure the anger of his own supporters to get something done. They knew him as somebody who was not afraid and fear so permeates our politics and set of hope. People fight people fight to get in the senate and ive been afraid. We fight to get these positions and then dont want to do anything with them. Ted understood, the only. Of running for office was to get something done not to posture not to sit there worrying about the next election or the polls to take risk. He understood the difference is a body of a body of philosophy cannot become barriers to cooperation or respect. He could howl any justice on the senate floor like a force of nature. Trying to figure trying to figure out which chart to pull up next. [laughter] but in his personal feelings he answered edmund randolphs call to keep the senate a place to restrain it possible the theory of democracy. I didnt have doubts it is like as some of the speakers here today but he was my friend. Ill him a lot. And as far as i could i could tell, it was never ideology that compelled him. Except insofar as his ideology said you should help people. You should have a life of purpose. You should be empathetic, be able to put yourself in someone elses shoes and see through their eyes. His tireless this his restlessness they were rooted in his experience. By the age of 12 he was the member of a gold star family by 362 of his brothers were stolen from him and the most tragic and public of ways. By 41 he nearly lost a beloved child to cancer. That made suffering something he knew. And and it made him more alive to the suffering of others. Ted would wander the house of halls of the hospital, meet other parents keeping vigil over their own children. There were parents terrified of what would happen when they cannot afford the next treatment parents working out what they could sell or borrow or mortgage just to make it a few more months and then if they had to bargain with god for the rest. Then on a quiet night working people with modest needs in one of the most powerful men in the world shared the same intimate immediate sense of helplessness. You did not see the as some abstraction. He knew them. He felt. Their pain was his. As much as they might be separated by wealth and fame and those families would be at the heart of his passions. He would see himself in a child. They were his cause. The sick child who could not see a a dr. , the young soldiers into battle without armor the citizen denied her rights because of what she looked like or she came from or who she loves. He quietly attended as many military funerals in massachusetts as he could for those who fell in iraq and afghanistan. He called and wrote each one of the hundred 77 families in this commonwealth who lost a loved one on september 11 and to consuming and play with the children. I just in the days after but every year after. His lifes work was not to champion those with wealth or power or connections. They already had enough representation. It was to give voice to the people who wrote and told him from every state desperate for so many who might listen and help. It was about what he can do for others. He would take his hearing styles bills in rural towns in inner cities and push people out of their comfort zones, including his colleagues because he had pushed himself out of his comfort zone and tried to instill in his colleagues that same sense of the even if they called him as one did, wrong at the top of his lungs, even if they might disagree with him 99 percent of the time because who knew what might happen with that other 1 percent. Or in hatch was sent to washington in part because he promised to fight ted kennedy. And they fought a lot. One was a conservative mormon from utah and the other was ted kennedy. But once they got to know one another they discovered certain things in town that about faith, the soft faith, the soft spot for healthcare, the very fine singing voices. In 1986 republicans controlled the senate or in how war and how the 1st hearing on the aids epidemic even hugging in its patient. An incredible and very important gesture at the time. The next year ted took over the community and continue what or and started. When or his father passed away ted was one of the 1st to call. It was over dinner that they decided to try and ensure the 10 million children who did not have access to healthcare. As that debate hit roadblocks in Congress Health care tends to come at it would have his chief of staff serenade or into court his support. When hearings did not go his way he might puff on a a cigar to annoy them who disdained smoking. When they did when they did not go his way might threaten to call teds sister. When it came time to find a way to pay for the Childrens Health Insurance Program that made. Offering a tobacco tax and asking, iu asking are you for joe camel and the marlboro man or millions of children who lack adequate healthcare. It was the kind of friendship unique to the senate collect calling to mind what john calhoun one set of henry clay. I dont like clay. He is a bad man, an imposter a creator of wicked schemes. I would not speak to him but by god i love him. [laughter] sure, orrin hatch once called ted one of the major changes to the country. [laughter] but he also stood up in a gathering in ted last month and said i am asking you all to pray for ted kennedy. The. Is, we can fight on almost everything but we can come together on some things, and things, and those somethings can mean everything to a whole lot of people. The Common Ground lead ted and or and to forge a compromise that a compromise that covered millions of kids with healthcare. It was Common Ground rooted in the plight of loved ones that lead ted and check breasted to cover kids with disabilities lead ted and pete to fight for equal rights for americans with a Mental Illness Common Ground not rooted in abstractions or stubborn rigid ideologies but shared experience that lead ted and john mccain to work on the patients bill of rights and to work to forge a smarter, more just immigration system a common desire to fix what is broken a willingness to compromise and pursuit of a larger goal , a personal relationship that lets you fight like heck on one issue and shake hands on the next. Not through just cajoling or horse training or serenades but through teds brand of friendship and kindness and humor and grace. What binds us together across our differences in religion or politics or economic theory, ted wrote in his memoir is all we share as human beings. The wonder that we experience when we look the gratitude that we know when we feel the heat of the summer the sense of humor in the face of the comparable and the persistence of suffering. And one thing more of the capacity to reach across our differences got offering and a feeling for all the challenges of the changing world, from the imperfections of our democracy, the capacity to reach across our differences is something that is entirely up to us. May we all in our own lives set an example for the kids who enter rejoice and exit exhibit Higher Expectations for the country. May we all remember the times this American Family has challenged us to ask what we can do to dream and say why not to seek a cause that endorse and sale against the when in its pursuit and live our lives with that heightened sense of purpose. Thank you. May god bless you. May he continue to bless this country we love. Thank you. [applause] [applause] [applause] [applause] [applause] [applause] [applause] [applause] ladies endowment please remain in your seats while our speakers depart. [inaudible conversations] taking a look at some upcoming programming, all this week we have been showing you encore presentations of q a. Join us at 7 00 oclock. And organizations in the United States may be declining that entrepreneurship may be stagnating, that labor markets are less than and believe me labor markets make the most of their spearhead i thought it would start a question by making observations that eric and andrew make which is in the face of rapid technological change, lets assume that it happened here in the benefit will not go to labor and it wont go to capital as we traditionally know it here in a logo to people and organizations who create new products, new services and new businesses. What i think john is worried about is whether all this is declining. So with that declining . Y . What is the structure trained to observe the rapid technological change thank you. Its great to be here. We are struck by all of the racket to you. We also heard in the first panel some scant schism and what a showing of key members and i think actually the evidence on the declining Knowledge Partnership in the guy in the United States economy may be part of a seen it in these numbers about whether the u. S. Is well poised to deal with this. So if we were having this discussion, a member of the people in this room are having a discussion in the 1990s. So we have lots of folks here who played important policy roles in the 1990s. The u. S. Was surging in the 1990s in terms of productivity growth and doing okay. This is before the great departure. I have quotes from some of the notable policy people in the room that indicate when they were giving speeches and say why were we doing so well in the 1990s . Oftentimes two words were used by these distinguished policymakers for dynamism and flexibility of the u. S. Economy. So what we have seen historically as one thing we know about innovation, i am someone who looks at my current data of businesses. Its a noisy and complex process. Not that new idea long and it took many years to figure out how to use it. That laziness, the complexity historically for the United States has been booming times and that means that theres been lots of volatility. Also, what is kind of striking about the nature of the volatility is again back in the 1990s there is only a small fraction of businesses that take it. Again, we have this urge of entrepreneurship in dynamism in a small fraction to make it. The other feature of the u. S. Economy and the dynamism part is the flexibility power. What this means is theres lots of restructuring going on in the United States economy as a result of all this volatility in the u. S. Has been electable and fluid being able to move workers to other kinds of productive uses. Youve got to remember, it is not the businesses experimenting. A key way workers build their careers is job hopping. Particularly Young Workers the way they find the market all over the place is a fine good lifetime careers is through lots of job hopping. It should at least cause us concern that we see now in the data several indicators of dynamism, especially since 2000. Some of these have been going on before that but especially in 2000. Weve seen a decline in knowledge premiership. That predates 2000. Putting key fact theres it was actually rising 2000 minutes following. Was that the. Com bubble . It was actually rising through the 1990s and the high sector. In a Mountain Peak where everybody was starting. It came down and it was lower than it was in 1995. Its been on the upswing since 2005 click it continues to decline. How can that be true classics im honestly puzzled. So so when i talk about it much for newer im talking about a new business that hires at least one worker. So what ive been doing and others have been doing is tracking the number of businesses that hire at least one worker. Again what we have seen a salt value these entrepreneurs are so defined have been critical with innovation with entrepreneurs come a man and a small fraction taking off and disproportionately creating lots of jobs and being high in terms of innovation and product committee. We have seen a decline in the post2000. That is continued. The Great Recession was insult to injury. Young businesses were already on their way down through recession and they just got humored and they have been slow to recover. We are obviously concerned what that means for productivity. Do we fully understand the decline and the answer is im happy on the panel to talk about ideas. Let me talk briefly about the consequences. The consequences will depend upon the cost. So one thing that we see, one thing that weve done that was presented at the jackson hole conference last august as we look carefully at the impact of the decline in dynamism and labor market fluidity for something on the topic of the first panel which is unemployment rate. What we found is a looks like they are closely connected. The employment rates are talked about in the first panel, especially for younger miseducated workers especially young, less educated males. Theres lots of variation where we see the decline in dynamism and fluidity. What we found is the states of the biggest decline are exactly the state said that the biggest decline in the employment rate for young less educated males. Im not going to talk about metrics here but we use variable procedures to try to generate causal effects. In fact, our results are consistent with that. It looks like there is at least some adverse consequence. The second thing weve done is weve tried to look at what the productivity is all of this time. So one possibility of the decline in dynamism in a notch premiership is the Business Model is changed. Maybe we dont need to do so much experimentation. Maybe weve even gotten better. Many of them fail. A very costly reallocation. Maybe Information Technology we need less of that. One way to look at that and what we have seen in the data is we have seen lots of dispersion and productivity across firms. It is consistent with economic theory. Lots of them experimenting some of them do very well. They take off their some of them not doing very well. We want to look at the dispersion and product dvd, particularly among businesses. So one possibility is that dispersion is decline. So we just dont need to see so much about. It is exactly the opposite. Dispersion and productivity has gone up rather than down. More allocation rather than less allocation. At the end of the day it is not that the technological changes have slowed down but its consistent with the story we are hearing and the response of businesses to the change. That has adverse consequences for product dignity. Part of the way we were getting productivity gains as we were moving resources away from less productive to more productive businesses. We are just not doing that as much. A question and i dont expect an answer now, but to kind of relate to the previous discussion is to what extent what might you think these amazing changes in technology that are potentially labor displacing actually are discouraging the formation of a notch for no real venture with one person. What is the point . A lot of the entrepreneurial ventures with one person are very labor intensive local things. If you can do those things online, you dont need the local entrepreneur and one person not person hires. By the way, i relate that to the fact that they are more like momandpop shops. A lot of them are founded by women. The whole issue of labor force protesting rate of women stagnating around 2000. So what is happening there . Technology as the cause of this is not something to think about. Lets go from there to technology. We have to hear the head of darpa a very wellknown source of technological innovation in the United States. Autonomist hand when they look at the technological change, tend to raise two issues. One is not showing up in product routing numbers. We heard that eloquently in the first panel. The other is these technologies are not that important. We are not doing major renovation. We are not doing major innovation in transportation and energy. Nothing similar to electrification or telephonic communication. What is the big deal . I dont think we have a better person to talk about these pessimistic views of technology coming from the Economics Community and your sense of where the big technological changes are coming from and is that all i. T. And software. That is very much what i love to talk about. Let me first say how much i appreciate the chance to participate in the dialog, the work you and eric have done on the hamilton project. We are talking about unraveling a complicated set of linkages between technology and work and it is of course what is important for our values and our future. I really think its terrific. I want to take the conversation in a different direction and talk about technology itself. The Way Technology has become synonymous. Many people use this anonymously with information to knowledge it. If you read the new york times, the Technology System is about Information Technology. Everything else is relegated to the science area. It is much much more than not. I thought i would just show you some perspectives about the bubbling pot of things that are happening is a very very different areas. First of all let me say theres a lot to be said about the technology factors and we can come back to that. Let me give you some very different examples. What if something bubbling today in the maker movement. Part of that is mutual but part of it to a finding different ways to make those different kind of tools available to lots of people. One example is a tech shot in alexandria, virginia that darpa helped get started up little by alito working with the Veterans Administration in part to be able to provide a gym membership like access to the tech shop here for veterans. For about what it costs to belong to a gym they are anyone can have access to 3d print theres but also sewing machine and welding tools and every Production Equipment a wonderful machine shot. I went by to visit before christmas. I wanted to get a sense of the vibe there. One of my most engaging conversations is that the young fellow in high school who found about tech shot. He drives an hour and a half each way many times a week as often as he can break away to build things. I said what he do at these things quiet is that i put them on pages to my friends and family by then. I got his Business Card and i raced home. I thought maybe i would buy some and he built. It turns out i dont know anyone who wants accessories for guns to play paintball which is pretty much what he was building. [laughter] that is what is happening today. People are experimenting. If a kid who found a way to build a business. I dont know what tomorrow holds. And maybe some event brought in and have the skills and energy and creativity of new sets of communities. I dont really know if thats going to happen, but that is one in bubbling. A major area of research that we are very excited about that darpa because they think it holds the seifert logical surprise is that its happening to a research in biology as intersecting with the Information Sciences and technology, but also the physical science and technology world. Then they give you two examples of things happening. I will try to take you out on what could be a wild future. Let me start with biology. This is of course the ability to engineer microorganisms to create chemistry and materials world has never seen before and then trying to scale it up and doing it in fact reads. So what is happening today as we are able to build specialty chemicals, new medicine with a very interesting beginning, but its only the beginning. We can see in this capability is a progression of new materials of chemistry, but also functional systems and software systems. We can imagine you might live in a building in which the walls are able to send the environment around them adjust the temperature and humidity in lighting conditions. The lost my support microbial communities that can disinfect the air that can purify the air. They might be materials that can self repair when youre a teenager the pedagogy of the wall and can fix itself. When the time comes and you want to the locker biodegrade and not create on the little crazy but imagine if someone had told you about a magical new pvc material that was going to be super light weight and incredibly easy to work with, that it would change the way you do plumbing. It seems a little crazy. Today some of these things that seem crazy may be technically looking like they might become possible and of course how we turn this into businesses and products is another thing. Let me finish up in the sample from nurse technology, another area where biotechnology is coming together in certain ways. We at the beginning of the adventure. It is an amazing capability. Today, much of our worst is about function. In that work you can start imagining what might be possible out into the future. One of our areas of focus has been revolutionizing prosthetics moving beyond the simple hook that has in the standard of care for a poor prosthetics to pursue the vision, our Program Manager developed a very sophisticated robotic hand with many degrees of freedom and because he is a neuroscientist, he also did the research that helped offenders and have narrow signaling from the cortex actually controls the armed. That work culminated in early human trials and most notably a woman named jane in pittsburgh is a quadriplegic volunteer to have these two small implant surgically placed on the surface of her brain and from that narrow signals are directly picked up and in real time she is able to move the assignment chicken shake hands. She came to be facedown. She can offer you a stack of cookies just by thinking about it. First and foremost of course the health care implication and not to mention, that many other dimensions as we understand the brain is going to be amazing and it felt. As we do the work of course we understand we have opened the door that can free the brain from the limitation of the body. As we start looking at what else is possible beyond restoration of function we actually opened some amazing possibilities. Some are going to be great in him will be terrifying. The societal issues will make the work issues we deal with today look simple. Technology has many quandaries that it raises. I hope some of those ideas give you a sense of the very wide range of things happening today that could lead to alternative futures. You mentioned the work issues and then you mentioned that there were issues we are not even thinking about. There are also issues you think a lot about and those to be in the realm of national security. You didnt mention madison area, but that is one we might want to talk about. One of the things that comes to mind in technology and Business Models is a concern that i have and Many Americans have about how we finance basic science and Applied Science and whether we are doing enough because we are pulling back on the support for basic science. This gets to andrew in the following way. Most Research Development in the United States, most spending is done by the private sector, not by the public sector. Most of the private sector is done by a very large company. 85 of the r d spent in the United States and the private sector is done by the u. S. Multinational companies. Lets get to andrew because andrew is can turn the existing companies cannot cope with new technologies and we have to develop a whole new organizational structure in Business Model to take advantage. Remember right now we have a situation will make a science and being driven to bring more months and the Business Model right away. Then we have Large Companies who you are worried about they wont deal with and make it. Talk about what kind of companies and how would they support their ongoing investment in r d unless you become huge overnight by google or apple event you run your own r d facility, you run everything. Conniver highway first of all how interesting this panel is . I say this with no pride because i havent started talking yet. We hear about this time of deep touch the logical format, which is such unbelievably good news coupled with institutional sclerosis. This is weird. It is bad news in a lot of ways. As he pointed out we dont fully understand the phenomenon at all. I dont understand why other time in the the tools of entrepreneurship are really good, more widely available is Getting Better on the time he described a good example of that. It is on the decline in this country. This is a deep deep puzzle that would better spend time figuring out. A lot of it is completely opaque. Some of it is clear. Some of our ways of approaching the situation in reaction to it are making the sclerosis worse. In cambridge massachusetts, pray for the people of cambridge by the way. I live in cambridge massachusetts to the city council made a very sincere effort last year to specifically ban uber. They wanted nothing but taxis to pick up anybody in the city of cambridge. I think my head came close to it working when i heard about this. I was imagining the worst was on for the situation we have in because uber is a controversial company. Their management has done themselves no favor. I want to go on record saying i love trent his business bottle. Not just the person who likes point a to point b. , but the opportunities providing to put it back in the economy and provide a decent living for people, the bigger fan i become of the company. You probably saw the study on krueger were gone where he said the average driver, the comparison is difficult to make. Pretty clear they get paid at least as much per hour as a cabbie does. They have great flexibility about how many hours he walks over. And cant track him as a parttime workers do not assess a penalty on a per hour basis. Conducts an hour if you drive 30 hours a week. These are all really good things to have, especially the point that larry was making earlier if we want to bring jobs and demand back, he was a platform bringing jobs and demand back. The negative reaction honestly dont make any sense to me. I get the idea some people want to legislate secure jobs in the middle class back into existence. Thats a fundamentally misguided approach. The question you got a are the great big Successful Companies going to navigate this transition that a lot of us feel is beginning. The pattern of history is not an encouraging one. When we look back at the Big Technology ones electricity being the most big when we went through. The pattern is clear that the companies at the beginning are not usually the companies on top at the end and there appears to be two main reasons for that. What is financial. Youve got a factory set at first team. Its hard to get out your sharp pencil and justify the retrofitting of this weird new thing called electricity. The deeper problem is a mindset problem. If you think about a factory building in the basement when some weirdo shows up with an electric motor, you say that is less powerful, cost more whatever, why would i do that. You dont see the opportunity to get rid of those and eventually replace them with overhead cranes and Assembly Lines and rings like that. The mindset challenges a severe challenge. If i look around a wellmanaged companies today i see the mindset challenge over and over. One of my messages to large establishments is your management needs to become alike each year. A lot of are driven by numbers, a lot more rigorous, a lot more evidencebased and synthetic Human Resources were you interviewed me and look into my eyes and judgment character and make a recommendation based on that weve got ample evidence that the terrible way to make capital decisions. Been a lot more analytical is a great way to do it. Todays managers didnt grow up with that toolkit. They didnt get to where they eyed her future of their familiarity of quantity itself. That particular transition is going to be difficult. A lot of them feel similarly challenging to me. So i think a huge open question is whether todays Successful Enterprises will navigate in the technologically different future. Some of them certainly will. A lot of them are really going to struggle. Can i sort of cannot your question, which is this confusion and i agree with ed about the technology not only changing rapidly but creating enabling technologies and the makers is a logical example and get this decline in notch premiership. Look at the issue of the overall demand level. The overall macroeconomic climate here is in fact possibly a determinate. Product candidate doesnt change that fast. But the macro conditions in terms of the excess demand or excess supply in the labor market can actually change. And then i think about 2,002,007. A lot of momandpop entrepreneurs do with no bank capital for these people. You cannot keep your establishment open from wednesday to the next because your demand fell off the cliff in your ability to finance spell off a cliff at the same time. I Wonder Technology may be enabling, but if you dont have demand for your product and you dont have the financing to set up your enterprise, which may someday be google, you cant do it. I think that is right. But i think that is mostly oppose 2007 story. I think that is really important. The Great Recession, collaborate the whole u. S. Economy, especially on businesses for the reasons we are talking about. This is going on before that. We have seen the decline in dynamism in fluidity and the decline in employment rates in the decline in productivity predates this. So so this is very much the twohanded economists. On one hand on the other hand what my boat going on one or more benign interpretations may have adverse implications for the United States. We talked about this in the first panel. So we have seen this big shift away from young Small Businesses towards the multinationals. Their shares go in a. One can make the case that what i. T. Has been especially good if its enabled the multinationals and eric talked about this as well, to communicate with activities abound the world instantaneously. So as a result the question is the big guys are saying maybe the u. S. Is in the best place to do all these things. Maybe thats good for the world economy. But the u. S. Is going through some disruption. The second thing that does seem to be going on that again may be associated with the change in the Business Model. This is not so much an explanation. It is good to remember most entrepreneurs fail and only a small fraction grow rapidly. What is really striking in the data were these highgrowth young firms that play a vital role in the 80s and 90s. We have seen i dont want to say a disappearance, but a tremendous decline in highgrowth. So google and facebook are distracting they are exceptions. One question is maybe used to be google and now the Business Model is i want to be brought up by google. That may not maybe thats not such a bad thing. Thats a change in the Business Model. Again, if this is all good news and entirely benign let me go on the other hand. Where are we looking. The obvious concern is the u. S. Through changing its business climates, regulation labor market regulations in some fashion so that weve seen a gradual decline and we are working night and i think we find evidence of it. Trying to think about the question is useful to think about the crosscountry studies that have been done. On one hand we have increasing evidence that countries that are successful are precisely those countries which have the successful productivity enhancing reallocation. So the country is not doing well are countries in which they have lots of dispersion product to be and theyre just not able to get resources to the most productive businesses. Its actually been harder. No countries differ in bus
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