this is "gps: the global public square." welcome around the world. i'm fareed zakaria coming to you live today. we have an important show for you today starting with the latest on the crash of egyptair

804. also, the great american elder statesman, george schultz, ronald reagan's secretary of state, richard nixon's secretary of treasury and much more. we're also going to talk about international amaeconomy and th presumptive nominee. >> i will build a great wall on the southern border and i will have mexico pay for that wall. >> terror and frightening lineage. i will tell you about the direct line that can be drawn from the most recent jihadi attack on american soil. all the way back to the founder of modern radical islam. finally, does the united states need a new cabinet member, a secretary of the future? maybe. i'll explain. but first, here's my take. silicon valley has more than 23,000 starbucks. at least according to the net

worth site angel list. it certainly feels that way in paolo alto where i spent most of the week but turns out this place is the exception to a worrying trend. it is by now well documented that start-up activity has been slowing down in america for about three decades dropping sharply over the last ten years. even as american culture has turned entrepreneurs into rock stars, the american economy is producing fewer and fewer of them. why is this happening? no one is quite sure. some are quick to blame big government. there's something to this critique but the story is complicated. if high taxes discourage would-be entrepreneurs, how do you explain the burst of start-ups in the early '90s and '80s when tax rates were sky high? even today, california ranked with the top of the nation in terms of taxes and regulation. and yet, it is the home to some

of the most vibrant entrepreneurial activity in the world in sectors as diverse as high-tech entertainment and energy but clearly, ever multiplying regulations do hamper business activity. the economist magazine argues that the american economy has grown less competitive in the last 20 years. after a wave of deregulation in the 1980s, red tape has prol proliferated and legal costs have risen dramatically. armed with lobbyists, they're able to navigate the landscape much better than new ones. the game may indeed be rigged, the economist concludes but the less noted factor that might be crucial is generational. you see, baby boomers have proved to be great entrepreneurs, launching companies when they were young and keeping at it as they aged. succeeding generations have been much less likely to found their

own firms. bouchanon said those who launchd start-ups from 25 to 30s dropped from 35% in 1996 to 14%. it is increased over the past decade. young people today dress like silicon valley entrepreneurs, consume technology voraciously and talk about disruptive innovation but want to work at goldman sachs and google. they are earnest, intelligent, accomplish, and risk averse. is this caution born of years of stagnant incomes, the financial crisis and a sluggish economy? maybe. but i think there's something broader at work. baby boomers were shaped by the 1960s and its counterculture. they were told to tune in to their passions, drop out of the old establishment.

they were rebellious about everything. politics, parental authority, old fashioned morality, big institutions. their willingness to strike out on their own was not opposed to get venture capital funding but an expression of their passion. out of that bohemian world came the informal start-up culture that's now gone mainstream. steve jobs explained using lsd was one of the two or three most important things he ever did. when describing his intellectual influences, he pointed to the whole earth catalog argued that we owe it to the hippies the individualistic and decentralizing revolution of personal computers and the internet. of course, the counterculture's assault on the establishment of traditional values caused enormous political and social upheavals. there was an erosion of law and order, trust and government, family structure and deference to authority. so the question i suppose is,

can we get disruption but of a kind that's, well, not too disruptive? for more, go to cnn.com/fareed and read my "washington post" column this week. let's get started. let's get right to the crash of egyptair flight 804. much to discuss with nic robertson from the cairo airport. nic, thanks for being with us. >> reporter: pleasure, fareed. >> is the egyptian investigation proceeding with a kind of clarity and efficiency? do you feel like you understand where things are going? >> reporter: i think we have a certain level of information but it's limited.

the same of man who headed the investigation into the russian metrojet crash is heading this investigation. there was a launch that wasn't made public about that investigation. the fact that he's been appointed tends to indicate that's a validation of the way he handled that investigation, the way this may go. the egyptian authorities shared pictures and images of debris retrieved, they talked about human body parts retrieved from the sea. however, where those pieces go, what tests are being done right now, what is being learned, none of that is clear at the moment so i think the way that this is proceeding at the moment appears on the surface, at least, to be slow, but the emphasis for the egyptian authorities is really to find those black box voice and data recorders. how they're progressing with that, the setbacks and the positive gains, really not getting a running commentary and i think this is what we can expect going forward, fareed.

>> and anymore news on the passenger list and whether or not there's anyone suspicious on that? i know the first time around, it yielded nothing. anything further? >> reporter: not that we've been told so far and of course, the concern about a passenger list particularly with the flight passing out of europe at the moment is that there is a possibility that there could be somebody on that flight that would not be on any terrorism watch list but might have connections to a terrorist organization or might be influenced by the rhetoric of a terrorist organization. isis would be the first one you would may at the moment and the fact the plane took off in paris where there have been two attacks, serious terrible attacks last year is an indication within the european law enforcement circles, there's a lot not known about some of their citizens at the moment. so the fact that the first sort of scrub and wash of the passenger manifest hasn't

provided information, i think, at this stage, cannot be taken to the bank as conclusive, that somebody is potentially coming under further scrutiny right now. if it is, it's not made public so far, fareed. >> nic robertson, always a pleasure to have you on. i wanted to announce peter berg bergen. the part that's troubling to me. i understand why they can't protect the cafe in paris, restaurant, but an airport, that seems to me, if, again, this is terror-related, it seems striking that they were not able to secure the environment for an airport. what does that tell you? >> reporter: fareed, i think this is the achilles' heel of many arraignmenirports. we've had al qaeda sympathizers in the kiunited kingdom and the

working at the minneapolis airport and isis who worked at the minneapolis airport. so there are a lot of people working at airports. there are a lot of airports that fly to the united states and as we saw with the metrojet airliner, this is a pretty good way to get on the plane if you have the right people in place. >> what do you make, peter, of the fact that there has been no claim for responsibility? i can't recall a case where that happened for as long as this time. is it possible, of course, it could be not a terrorism attack but it could also be some kind of lone wolf suicide bomber, is that possible? >> it's possible. i agree, it's puzzling we haven't had a claim if this is terrorism but if i was being particularly mac la vel yent, one way to generate news coverage is to not claim responsibility because cnn and other news organizations are

going to continue to cover this quite aggressively in the absence of the credible claim of terrorism, but once that claim is out there, in a way, the kind of open ended nature of this story becomes less so. so that could be an explanation, but the bottom line is, yes, very puzzling if this is terrorism, no claim that this is pretty unusual. >> since i have you, peter, i have to ask you about the other big terror-related news. drone strike that killed the leader of the taliban, the taliban, of course, operating in afghanistan but of course, like osama bin laden, he turned out to be in pakistan. what is the significance of this drone strike? >> well, you know, it shows that president obama clearly doesn't have much faith in the potential of renewed negotiations with the taliban, particularly, you don't kill the leader of a group that you think is moving towards

peace and the peace negotiations of the taliban, of course, have been yielding nothing and i think it raises the question for the next president about what to do in afghanistan, it's really the first important national security decision the president will face which is, what do we do with the troops we have in afghanistan, do they continue to stay there? how long? what kind of role do they have? and the taliban now controls a third of the country. we have the presence of isis in al qaeda growing larger and you recalled after what happened in iraq after the end of 2011. said you wouldn't want something like that to happen in afghanistan. i think that's a critical decision for the future president and really should be a subject of the campaigns address now about what their plans might look like. >> you know, when you look at, as you said, the taliban gaining ground in afghanistan, al qaeda

gaining ground in afghanistan, it appears there are more terror groups proliferating, al qaeda trying to make a move into syria. do you feel as though these terrorist groups are gaining strength or is it the states in which they are operating are weakening even further? >> i think the latter point is the critical one. you could almost make it that the weaker of the state in the muslim world, the stronger will be groups like isis and failing states like yemen, syria, and iraq and of course, these are doing well and you add to that a regional civil war between the sunni and the shia with pretty powerful states amping it up and then add, you know, the rise of european fascism, it's a brew which suggests that terrorist groups will be doing well in the middle east and also to some degree in europe for the foreseeable future. >> peter bergen, as always, a

great pleasure to have you on. thank you very much. as we've heard, this egyptair craft is the latest in a string of troubles. what in the world is going on? the troubled politics of the country and the region certainly had a major role to play in some of the past incidents of terror. when we come back, we explore what's going on in egypt and the middle east in general. ...want my number? and cash back for driving safe. and the power to automatically find your car... i see you car! and i got the power to know who's coming and when if i break down. ...you must be gerry. hey... in means getting more from your car insurance with the all-powerful drivewise app. it's good to be in, good hands.

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these considerations is the troubled politics of the country whose name was painted across the fuselage, egypt. just in the past year, egyptian aviation had a hijacking, a foiled bomb plot and a passenger jet carrying more than 200 people explode over its territory. to help us understand what is going on in egypt, i wanted to bring in robert worth, whose new book i raved recently about on the show called "a rage for order." robert, welcome. >> thank you. >> when we look at egypt, on the surface, it seems as though order has been restored. the public clamored for this new general, general cece who has maintained order pretty effectively and yet, you see all these incidents, you hear a great deal, sort of rumbling beneath the surface. what is going on? >> well, one of the striking things about cece is his approach to the jihadi problem is very different than we saw in

the past which is an outgrowth of what happened in 2011 with the overthrow of mubarak. cece declared a total unqualified war not only on terrorists but political islam itself. and we've seen two effects, i think. unfortunately, his, the way he fights the terrorists and this terrorism is centered in the sinai peninsula. i was there a couple of years ago and saw that. his forces have killed a lot of civilians and destroyed a lot of houses. so the counterinsurgency is not going well but more broadly, unlike mubarak had a relationship with the brotherhood had outlawed the brotherhood and jailed the members and came to power in 2013 in a coup against the brotherhood and pushed a lot of those people underground. most, i think of the brotherhood remain peaceful in their

aspirations and philosophy but some have been pushed through this violence to radicalism and some joined isis and some joined smaller groups. we've seen not only attacks by the egyptian branch of isis in the last couple of years but smaller attacks not just in the sinai but across egypt including in cairo by smaller new groups with names like revolutionary justice. so there's a sense that cece has perhaps less ability to communicate with political islamists and less ability to control them and monitor what they're doing. >> in your book, robert, you point out, you highlight, you profile a person who started out enthusiastically part of the terrorist square, pro democracy movement and then ends up joining isis. for most people, this is completely puzzling and this is the heart of your book, explaining this transition, how pro democracy people could end up pro isis.

explain that dynamic. >> sure. it is rackabemarkable to have p like this. he started off as not just a participant but part of the vanguard of the young protesters in tahrir square and life transformed like so many people. he saw an enormous hope for the future. he ended up being a spokesman in some ways in the months following that revolution and in the fall of 2011, he ran as an independent for parliament. he didn't win but he continued as an activist like so many others. but as egypt's politics polarized, it became increasingly distraught and by the end of 2012, when you had the same people who joined together in the square now fighting each other and even killing each other in the street, he really lost hope and his friends and relatives told me that he became increasingly depressed and ultimately went to syria to do humanitarian work but ended up joining isis and i think for people like him, it's

hard to know how many there are. people who had fired 2011 and resigned themselves to living under a dictatorship and with a diminished sense of hope with a corrupt government with the sense they couldn't get too far, they suddenly glimpsed this radical sense of hope in square and when that collapsed, they wanted some similarly radical sense of something they could look forward to. isis presented them with that and even though it sounds awful and apocalyptic to us, it answers questions a lot of people desperately want. it feels like the world has collapsed and the state is either gone or radically changed. the sense of religious unity is gone. their families may have been broken up and they're desperate for them to tell them where they stand and how they should live and isis does that. >> finally, robert, in your

book, and you have to do this briefly, but what i'm also struck by is the collapse of order in a place like syria and in iraq and so many parts of the middle east has led people to fear for their own security and they want the strongest force out there they can can protect them against people who might kill them, they see the baghdad government, the damascus government. and again, they bring isis in. it's this breakdown of order, which you talk about in syria. >> yes, yes. i wherote about syria because i think we see this through jihadi groups and leading politicians in the other and i try to convey if you're an ordinary person in syria, you end up seeing, depending which side of the line you fall, a radically different view, everything happening around you and i think that explains so much of the polarization. my chapter in syria was about two young women, one sunni and

one aloii and they inhabit two totally different worlds, completely opposed and so these young women ended up defining each other in the end as enemies. >> terrific book and thank you so much for that very, very interesting analysis. >> thank you. next on "gps," if it does turn out to be islamic terror, the inevitable question is why. why do some muslims hate america, the west, more on that when kwoem back. you may also be struggling with non-24. calling 844-844-2424. or visit my24info.com. don'tlive in paris. when you airbnb, you have your own home. so, live there. even if it's just for a night.

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x1 will change the way you experience nbcuniversal's coverage of the rio olympic games. call or go online today to switch to x1. perhaps we won't know for a while exactly what brought down egyptair flight 804 but right off the bat, donald trump pointed his finger at terror. if it does turn out to be islamic terror that brought down the plane, the inevitable question will be why. and the broader question, why do some muslims hate the west? it's a question that is central to my new documentary, why they hate us, premiering monday night on cnn and cnn international.

i wanted to give you a sneak preview at two sections of the work. we trace the story of the san bernardino killers back to one man who started it all. the founder of modern radical islam. take a look. >> now scrambling to figure out exactly what turned this couple into mass murderers. >> the wife in the san bernardino terrorist attacks. >> how and where was the 29-year-old mother of a newborn radicalized? >> we all looked at her and asked, how? how does a young mother drop her baby off at grandma's after nursing that baby and then proceed to massacre 14 people and give up her own life in a twisted act of martyrdom? there is a way to understand this. because you can draw a straight line from ma'lik directly to the roots of modern radical islam.

let me explain by going back to the beginning of the story. bizarre as though it may sound, today's radical islamic movement started with a popular american song. 1949. the place was greeley, colorado. "baby it's cold outside" was playing on an old ramiphone. an egyptian student happened to come in. he was a deeply conservative muslim and he was horrified by what he saw at that dance. he wrote later of what he called, the animal like mixing of the sexes and the lips met list and chest met chest. the worst sight of all, he said, the outline of women's breasts in tight sweaters. he asked about his time here,

the america i have seen became a sensation in parts of the arab world. he wrote 24 books urging the return to sharia law and terrorism against the leading modern nation in the world, the united states. there are many reasons why radicals hate us, but some believe the seeds of that hatred were sewn in the pages of the quran but they're twisted by radicals to suit their own ends. >> islam is being manipulated. it is being used. >> points to one colorful example of manipulation in a famous quran story. >> promises a martyr in the name of islam, 72 virgins. is that true? >> it is not true. >> several scholars came to a

startling realization. >> nowhere in the quran does it promise 72 virgins, 70 virgins, 48 virgins. what it promises, as far as heaven goes, is something lush. the arabic word for virgin has been mistranslated. the original word that was used in the quran was the word for raisin, not virgin. in other words, martins would get raisins in heaven, not virgins. >> 72 raisins. imagine the surprise of the terrorists who expected something completely different. >> for more, don't miss "why they hate us" at 9:00 p.m. eastern on cnn and cnn

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i spent much of the last week in the san francisco bay area where i had a chance to have some extraordinary conversations. we'll bring you more of them in the coming weeks, but now, a very special treat from palo alto. president reagan's secretary of state george schultz, before that, had an extraordinary run in government from richard nixon, secretary of labor to his treasury secretary and more. he found great success in the private sector. he was dean of the business school and president of one of america's biggest private compani companies. i talk to the statesman at the hoover institution where he's now a distinguished fellow. very distinguished indeed.

mr. secretary, pleasure to have you on. >> glad to be here. >> when you were secretary of state, you were dealing with a world where there was an existential threat to the united states, soviet union had thousands of nuclear missiles on a trigger. do you look at the world today and think it is more unsafe or less unsafe than when you were dealing with the politics and diplomacy? >> in those days, we had a program and a strategy and we were convinced it would. and now what i see is a world of wash and change almost everywhere you look is instability. and still, there are too many nuclear weapons around. there's also the threat of climate change. in other words, there's things that need to be worked on by more than one country at the same time. and countries are having a hard time governing themselves, let alone interacting in a positive

way. so i think it's a very dangerous time. >> what would you do about terrorism? when you look at this problem, terrorism largely emanating out of the greater middle east. >> first of all, we have to recognize that, for the first time in three centuries, war and religion have been together put. and what that means is it's a kind of a war. it's not located just in one place with a front. there are places, more than one. and there's tentacles. you have to have a strategy to deal with this religiously based war. that's the way you have to address it, i think. >> we are now involved in a counterterrorism sense, counterterrorism operations in seven, maybe more countries as far as i can count. afghanistan, iraq, yemen, libya. how should we approach this

issue of counterterrorism because we have now been in afghanistan for 15 years and spent a trillion dollars and yet, creating political order in these societies, you can beat up the bad guys, but whenever you leave, instability persists, insurgi insurgency gains ground. >> we have to do everything we can to see we don't have a terrorist act take place in the united states or to u.s. citizens, whenever. and that means you have to have an intelligent sharing and special effort to see things coming before they come, as i was saying earlier. and people have to know that that's what you're doing. you're not going to tolerate it. and you can be successful. and we need to recognize that now we have this war where religion and war are joined, and

we have to figure out how we're going to cope with that. and i think the way to do it is to put together a coalition and we don't do everything ourselves, but we want to work with other people. for example, in the middle east right now, i think need to put together a coalition of saudi arabia, jordan, maybe turkey, israel, i think there's more of a sense of community now, and then with some of our european allies and we can be a leader or an organizer. it doesn't mean you do everything yourself. i think probably the boots on the ground in that area need to be locals. >> but isn't that essentially the obama strategy? >> it is sort of like it. they seem to be inclement t.

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back with more of my interview with former secretary of state and treasury, george schultz. what does he think of the donnel donald? i have to ask you about the presumptive nominee for president. let's take climate change to start off. you think it's a crucial danger to us, to the world, he believes it's a plot invented by the chinese to steal american

manufacturing. what do you make of the fact the 17 candidates who ran, this is the man who has almost won the republican nomination? >> i think he'll be our nominee. so we'll have to see how this evolves. and i know paul ryan reasonably. he is a fantastic guy. and he has a strong agenda. he's trying to put together an agenda with his house colleagues that say, here is our, what we're for. and at least as i read the tea leaves and i watch him and trump interacting, he's exposing trump to this and we'll see what happens. >> right now, could you vote for donald trump? >> i will have a secret ballot and i'm not saying what it's going to be right now. >> do you think he has the temperament to be president from what you've seen? >> i don't know. so it's hard for me to make

judgment and hard for me to make judgment on people i don't know but i think the oval office, when you think about yourself in it or being there advising a president, this does something to you. so this is something very serious and we have to look at it hard. >> what do you think has happened to the republican party today? >> we have a world of wash and change. we have an economy that has not anywhere near its right capacity and i think people are sort of dissatisfied in a general way. >> i guess what strikes me about it is the party has been defined since reagan by conservative ideas and there were many candidates espousing those ideas and i think it's fair to say by most normal i think what happened is

the electorate is less motivated by ideas and policies than it is by emotional content. >> you watched the job you held, secretary of state, how do you think hillary clinton did as secretary of state? >> well, we have a little club of former secretaries and we support each other. so i look on her problems and i see that she worked at them hard and that's fine. >> you worked on them hard but -- >> she had intractable problems. she had -- i don't know about her relationship with the president but i don't think it was really strong. >> does she strike you as intelligent and capable. >> it's been a quarter of a century since i was there, so i don't know all of the intimate details of what she did or didn't do.

i do say this though, if you're secretary of state, you'll have a managerial job to do. it isn't just ideas. and you have a line -- i learned this in business, you're the secretary, your line of control goes to the assistant secretary, bureau to the ambassador. and you put into that line if anything happens extraordinarily good or extraordinarily bad, i want to know about it right away, immediately. so i think that kind of administrative structure needs to be there. i don't think it's there right now. >> you're 96th birthday is when? >> this coming december. >> so we'll listen to you and people will be struck by the clarity and the wisdom. what is the secret of your success? >> well, i have a wonderful wife and i have five children.

i have 11 grandchildren and the 11th one graduated from college a couple of weeks ago. they all graduated from college. but i now have four and a half great grandchildren. these little kids are an inspiration, life is exciting. they are curious about everything. and you look at them and say, what kind of world are they going to inherit. and what can i do to make it better so that's my motivating idea. george shultz, pleasure to have you on. >> thanks to george shultz, former secretary of state and treasury. next on "gps", does the united states government need a new cabinet member, a secretary of the future? it's an intriguing idea and i'll tell you about it when we come back. literally it was like you're getting 7, 9, 10, 15 leaves that are just popping up all over the place. yeah, it was amazing. just with a little bit of information,

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this week president obama will visit hiroshima, he will be first sitting president to go to the city where the united states dropped an atomic bomb on august 6th, 1945. that bomb known as little boy killed 80,000 people instantly

and over 100,000 more with its radiation and other effects. japan surrendered soon after. it brings me to my question of the week, how much more powerful is the most destructive nuclear bomb in the u.s. arsenal today compared to little boy? ten times, 55 times more powerful, 80 times more powerful or 120 times more powerful. stay tuned and i'll tell you the correct answer later. the book of the week is "the american president" from teddy roosevelt to bill clinton. when we're pondering what qualities it takes to make a great president, this distinguished 93-year-old scholar has done a public service by condensing his wisdom into a fascinating set of essays that examined the nature and power of this extraordinary office. and now for the last look. the united states has a secretary of defense to fight its wars, a secretary of state

to negotiate fees and treasury secretary to oversee the economy. what about a secretary of the future? someone whose sole job would be to prepare the nation for the long term to dream big like the innovators in silicon valley. if it sounds far fetched, meet the swedish development for strategic development and cooperation. her vision is promote long term thinking throughout the government and she has come to be known as sweden's minister of the future. working in tandem with the business community academics and unions and others, she's focused on the future of work, making sure the labor force it needs in the years to come, managing the transition to a green economy and promoting cooperation with other countries on issues like migration. government should have someone focused on long term thinking not consume d by the crisis of the week. sweden isn't the only country

with an eye toward tomorrow. finland's parliament has a committee for the future focused on science and technology. the united arab emirates has a minister of cabinet affairs and future to prepare the country to be less dependent on oil. i know this is gimmicky, but we spend most of our time and energy and money in the united states, especially in washington on the short term. i like the idea of a person whose job it would be to force us all to think about the long term. what priorities do you think an american secretary of the future should focus on. share your thoughts with us on twitter using #fzggps. correct answer was c, the greatest destructive force in the u.s. arsenal has a yield 80 times more powerful than the little boy bomb dropped on hiroshima according to the federation of american scientists. in total there were an estimated

15,350 nuclear weapons in the world. as of early this year, down from a cold war of 70,300 years ago. i'll see you next week. happening right now in the "newsroom". >> should the person with the most pledged delegates be the democratic nominee? >> well, i think if that was the only criteria, then you get rid of all of the superdelegates which may not be a bad idea. >> bernie sanders calling out the democratic party for what he called an anointment of hillary clinton. plus, donald trump with a mixed message on guns, tweeting that hillary is wrong when she says he wants guns brought into classrooms. then trump saying this today -- >> in some cases teachers should have guns in