Senator mark warner from virginia. From 200222006 senator warner served as governor of the great state of virginia and when he left Office Estate was right that the best day for business the best managed state in the best state in which to receive a public education. In the senate he has distinguished himself as a leader works with colleagues from both parties on behalf of the state and every one in our country. He serves on the finance banking budget and rules committee and is vice chairman of the select committee on intelligence. Senator warner is with us today. He has been a great leader for our country and please help me welcome him to speak to us as well. Senator warner. [applause] thank you mitch, thank you for that introduction and thank you for the great work you are doing in new orleans. Thank you for your familys longterm contribution. I started in politics indirectly working for moon landrieu. Its a real honor to be here with you and let me also give a shoutout to the remaining virginia mayors who are here. Hello you guys, how are you . Let me also realize i had more Senate Sessions and i know you are winding down so presume i spend another three minutes complimenting everyone in the room site you get to the meat of my message. The truth is and i know this has been a subject of your conversations over the last couple of days obviously cities are continuing to face great challenges and great opportunities. You know when this is not exactly a newsflash for those of us who work at the federal level we have been. Dysfunctional over the last few years and candidly if you look around over the last couple of weeks that this function does not seem to be decreasing and unfortunately as former governor we are seeing the level of dysfunction that takes place at the National Level unfortunately creeped too often into too many state governments as well. The one bright spot i would argue in our nation is what is happening in cities and urban areas. It really is a renaissance. The truth is as you know better than i, americans know that and are voting with their feet. Nearly 60 of all americans now live in cities. 80 of americans now live in urban areas and every expectation i have seen shows those demographic changes are all made going to increase. One of the responsibilities i want to say is we have a whole lot to learn from you about how we deliver government and govern in a 21st century way. Theres another statistic that reinforces this trend. There is a total of 3148 counties or cities, local jurisdictions in america. Here is the stunning statistic. Between 2005 and 2015, literally 2100 of those roughly 3100 jurisdictions across america lost jobs and lost businesses. Twothirds of america have seen a decrease in Employment Opportunities in their communities disappear. Only 1043 jurisdictions saw an increase in businesses and jobs and we know the vast majority of that growth took place in your communities. This disparity may grow. Some of it is obviously about education and Skill Development but a lot of it comes down to a fundamental understanding of what is happening in the economy and in the workplace. Let me give you another stat. Over the last few years i think we have all wrestled and again you guys wrestle with it anymore as her away frankly than we do in washington. What is work and what is the economy going to look like in the next decade or so . I know you have had penalty or where you have dealt with psychology changes, Artificial Intelligence and i believe people on the panel later today are going to talk about some of these transitions. Quite honestly if you kind of get caught up in some of the what could happen it can lead you to a pretty dark space. I believe the most positive report that i have seen recently was done by the mckinzy Global Mission and the good news that came out of that report said that by 2030 the United States of america will still have a significant net increase in jobs jobs. All of the jobs in the country arent going to be destroyed by Driverless Cars but what was also in that report was that literally one third of all americans will either have to change their jobs or change and significantly alter their skill sets if we make sure we take advantage of this opportunity of new jobs that come about by 2030. And i would argue a lot of this goes on, what is causing all of the political angst . What is causing the fraying of our social institutions . I am a proud democrat. Most of the folks on my side of the aisle would say that a lot of that angst is political and ees driven by income inequality and i agree. Income inequality is a major challenge that we all days and we see it in so many visceral ways as mayors and many of us in the federal government. I would argue that the problem of income equality is this unique problem driven by technology, driven by stats that come out of things like the mckinzy report and that is the enormous challenge of income insecurity. That change and that insecurity is coming from the changing nature of work. So what should we do . Let me try to offer you two areas where i think we should spend some time, some thought and i hope find ways to collaborate and partner. First, comes the responsibility to actually renew and revive our traditional social contracts. Our social contract in this country arose in the 20 century basically back in the 1930s and 1940s where there was a partnership that started between business, labor and government that said we are going to try to take care folks with benefits during changing times. Unfortunately that social contract is frayed and disproportionally that social contract is fraying for low to middle come americans who often get the short end of the stick and i believe we should be supporting innovations around the way we deliver benefits. We need to recognize the traditional work experiences in the 20 century and i will come back to this in a moment. It has to be altered to recognize the dramatic change in work. Second, and i say this and i saw my friend greg fisher earlier, i spent longer in the fiscal sector than i have been politics. I was very lucky to be an entrepreneur and did pretty well with cell phones. Im the guy that coinvented something called nextel so im the only politician that said even when im speaking and the cell phone goes on it doesnt bother me at all but even as someone in american capitalism way to recognize and i would acknowledge that 21st century capitalist in america capitalism and america is not working people. Quite honestly we now have incentives that favor investment in 20th century assets like equipment over the context of what 21st century capitalism should focus on which is the human being. Let me come back and spend a couple of moments in each of those topics. First lets look at the changing nature of work. Many of us in this room probably had parents that worked in a single job for more than 30 years. My dad is a classic example. He served in world war ii as a marine. He came back, never finished college, ended up going to work. He worked at a Single Company for 40 years. He never made a lot of money but he had job security. He had a whole set of benefits, health and retirement and while we were never rich we never worried about where the next meal would come or whether we could pay the rent and in his retirement he had a Retirement Plan and a set of benefits that if he had been laid off there would be things like unemployment, workmans comp or disability. My generation, we have a different system. Social contract altar. We move from fixed pensions to 401 k s but for the most part that 20th century social contract maintained even through the baby boomers. But now we are in the midst of i think one of the most dramatic and significant changes in our workforce and the nature of work that we have ever seen. The millennials have arrived. 83 million strong. Shortly the millennials become the majority of our countrys workforce. If you ask most millennials and i know if i ask my kids and they have talked to their friends they dont ask somebody where do you work . They ask you what are you working on . Thats a totally different mindset than most of us grew up with. Meanwhile our social insurance system, health care, retirement, unemployment, disability, workmans comp, all of those benefits that were created in the 20th century in the 30s and 40s we are the only industrial country in the world who still makes all those benefits contingent upon an individual being a fulltime traditional w2 employee. Yet, the whole nature of work is changing and today in 2018 not at some future state in 2030 were literally one third of all jobs are going going to change t today in 2018 if you take nothing else for my talk today remember this fact. One third of the American Work force today is working in some level of contingent work. You are either parttime, you were independent contractors entrepreneurs but you are not in the traditional Work Environment and an establishment. Most of your parents and many of you did most in your career. The fact is you know this better than most of us here in washington. You see it and you try to attract a new workspace. You see it in your interactions that i know you will have analyst later today. You see it as you try to wrestle with challenges around Ridesharing Companies for new startups by airbnb and others in terms of this new notion of work and how it manifests itself. The truth is any projection that is out there can show that one third of the workforce that is contingent today will move to over 50 of the American Workers by 2025 will be nontraditional fulltime permanent employment. Now to get this right i believe one of our most important responsibilities is to rethink the social contract. The area where we can do the most coordinating thinking is on creating affordable benefits systems. What that means is that every american starting with that first job at 16 should be able to collect some benefits and move those benefits as they move from job to job and allow that social safety net to follow them. What that looks like i dont know but it has to be won by government, i dont know. Frankly a lot of that in terms of that social benefit and the structure can be carried with you on the cell phone. But we have got to make sure we try experimentation and you guys at the city level are aware of this experimentation takes place. The federal level i want to partner. I have a bipartisan bill with senator young from indiana that would create portable benefits Pilot Program for states localities nonprofits. Im trying this kind of experimentation. The truth is we are already seeing some of the start. Last year in Washington State there was a bill put forward in the legislature that would create an affordable benefits system. A couple of days ago uber created a First Step Towards creating an important benefit system for their drivers and in new york city there has been work for three years right now in terms of trying to take the fund and move it to Ridesharing Companies. Nowhere was this experimentation take place more than at the city level and i want to find ways to partner through the second thing we need to look at is the whole notion of how we deal with human capital. The truth is even if we get this right on the social contract and allow people to move from job to job and have benefits that travel with them we are not going to be adequate for all of our people if we dont also recognize that the third of the American Workforce that needs to change jobs or change skills before 2030 if we dont have incentives align. That means we need to have a belief a real conversation about the notion of american capitalism. In 20th century our capitalism system basically said investment in plant and equipment, investment in r d trump investment in human capital. If you just think about the way we think about things you buy a piece of equipment you buy and the computer thats an asset but if you invest in someones training on an accounting basis that the cost. 20 century capitalism also was sams that the role of government and the role of education was to help prepare someone for that first job but once you got that first job weather was on the line are working in the corporate environment it then became the responsibility of the company to continue to upscale youth roared for your career. If you accept my premise that no one will work in the same job for 30 years if you look at the the we are constantly wanting to change careers and that approach of how incentives are aligned in the 20th century are going to work for the 21st century. The truth is we have a tax code that unfortunately we missed a huge opportunity from the socalled tax reform that was passed in december to realign. Candidly we could have ended up with repatriation had a requirement for those companies to put Training Programs in place for Older Workers at 80,000 a year but we didnt do that. So what we need to do is we need to think at the federal level and the state level on how we align incentives and i believe mostly the private sector should invest in human capital. Ive been working on legislation that the number of colleagues that takes the r d tax credit model which has been extraordinarily successful and use that r d tax credit model and provide that same type of tax credit not taxdeductible for meaningful investment in upscaling workers who make less than 80,000 a year. And lest we do that the right way we are not going to have a workforce that is truly prepared for this 21st century. I see the red light is flashing. I only have two more pages. Let me close it up with this. The truth is if we are going to get this right i believe we are going to need to change a lot of our political debate. If we think about affordable benefits im not sure whether thats a democrat or republican idea. If we think about changing our tax code to recognize that we have to treat investment in the human being in that same tax treatment that we get if we invest in research or piece of equipment im not sure whether that is left or right. I would argue the politics of the 21st century have a lot less to do with liberal versus conservative or left versus right and much more to do with future versus past. I cant think of anywhere where the rubber hits the road more than our nations system. My hope is he will continue your leadership and i i hope is in some small way those of us who think we have some ideas that contribute at the federal level that you will look for ways that we can partner whether its around affordable benefits are workforce training or around the 21st century infrastructure planning how we get that done. They are those of us frankly in both parties that want to get the job done by than simply blaming each other. Thank you for your leadership and i look forward to working together in thank you so much match for having me here today. [applause] senator warner thank you so very much. The entire day today we have spent talking about how to create jobs and how to put americans back to work. I think you like me are completely moved by how incredibly nontraditional for discussion has been today. I want you to think about it. We heard from addin newman who is an israeli immigrant who is coming to america to create thousands of jobs with a timely new concept about how the put people back to work. Steve case who started aol came and talked to us about how the pay for and finance it. Senator warner told me the world is changing so dramatically and we have to change with it and we have to invest in human capital. Of course you understand the only place in america where that discussion can take place is between and amongst mayors who can go back and say the world is changing but we are going to be in front of a rather it rather than behind it and frame it in the context of not let versus right and not republican versus democrat at the past and start doing the things because we can see it coming already because we are on the front lines. Now we have to testify to it. I think this next panel is going to be a wonderful way for us to finish but before we do that i want to introduce our sponsors for luncheon. F. Mcardle is an airbnb for the global network. Responsible for airbnbs global work which provides opportunities for Host DevelopmentOffice Security experience for travelers and raises awareness for funds for local nonprofits. Please help me welcome her. [applause] mayor landrieu, thank you so much for having me. I wanted to start by introducing my dad wary and my brother. About six years ago i told them i was joining a small startup called airbnb. When i explained this model was for locals to open their homes to strangers travelers looking for a place to stay they started laughing. Thats a crazy idea. Six years later we are in over 191 countries in over 4 million homes across 65,000 cities. At the end of last year the number of guests who stay in an airbnb had reached 260 million guests. My dad now a retiree is a super host and hes welcoming guests from all over the world to his home and earning valuable supplemental income. The average u. S. Home hosts about 42 days a year approximately 7200. 71 are sharing their primary home, the home that they live in and 54 of those hosts have allowed them to keep their home and stay in their home. If you look at this map of d. C. You see those green dots are where the hold tells her located near capitol hill and the red dots are the homes on airbnb. They are spread across the four quadrants of d. C. This really illustrates the Economic Impact this is having on neighborhoods that dont traditionally benefit from tourism. Another example is rio. In 2016 we partnered with the city when they were hosting the olympic games. As a result 85,000 gas stayed in homes across rio and 30 million host earnings were earned by locals. Had those guests needed to stay in hotels that would have required the construction of 200 20057 hotels. Just think about that. 267 hotels. When these travelers come to the city it generates tax revenue for the city. Last year an airbnb had collected over ford and 69 million in occupancy taxes for the u. S. And cities are using them for important critical areas. What we have seen with the growing community of travelers who can stay in homes on airbnb, but they are looking for is a connection. They are looking to connect