them to love for reading and read to them and with them as often as possible that way they will likely grow up to be breeders themselves. >> i have to post a little but she has written a wonderful book itself published called raising bookworms and it's about that, of raising children to love and find the chollet in reading and keeping it constant as the school years go by and how difficult it becomes when assignments are handed to you and sometimes they are boarding how do you keep a child to love of reading of life and sparkling in her book is wonderful. >> if people are interested in finding that a book or other children's books that you have written and this newest one, where can they go? >> thank you for asking, they can go to the web site, julieandrewscollection.com and

raisingbookworms.com is the site for the book. >> emma walton hamilton, julie andrews, thank you very much. >> thank you very much. .. >> on my list for the summer

and i am also a huge fan and collecting all of his books over the years i have the last one that i have not read, its a battlefield for the summer as well as the collective volume of short stories i picked up in a bookstore in long beach last summer that while there is one of the biggest influences so i tried to read them together and nike and.

>> it is my great pleasure to be here with you i am a huge fan of your work and the magazine so it is a true pleasure. that said. [laughter] >> "free"? you have got to be kidding me. how does that work? >> technically is starts with the letter h. [laughter] >> give me the 302nd version is. >> to my children when i say daddy has written a book about house stuff can be free on the internet, they said you did not? dad, it is bits. they are free. when i tell my peers of

course, chris anderson how things are free on the internet they say chris, you didn't? don't you know, there is no such thing as a free lunch? between the two it struck me as interesting i think "free" is the most misunderstood in the english language. [laughter] >> very basically it is not free. >> guest: sometimes it is. what i have learned about this, what this one little word how it has changed in meeting at -- meeting have a twist our mind and we are drawn to it, how it has different meanings even today but the big difference is 20th century free is a trick. it is not really free you have

the right to be suspicious but 21st century free really is a and google does not show up in your credit card statement. what is different of the underlying economics of digital stuff would ever caustic gets cheaper we have never had the industrial economy which is deflationary. >> google is a great example because i am a huge your -- eight big user of the products. but somebody pays for the. >> guest: i should not have to tell the radio guy. >> you are telling them. [laughter] >> guest: i should not have to tell this review buy it is possible for things to be free. free geo -- radio is free television is free although the advertiser pays does not make it less there is no such

thing as a free lunch it does have a monetary and non monetary economy so when i pick up the check he pays me with his time and attention and reputation and he will tell me things that will be of the label he will pay in one way or another but not in money so your audience pays inattention and your reputation. you are absolutely right that you pay for google with your time and attention and if you click on the ad then buy the product you will pay more and the books will balance in the end but it is not like buy one get one free or razors and blades or free gift incited is you will not pay, somebody else will. >> for the historical background give us the razors and blades story with which this whole thing came to light. >> guest: can i go three years earlier?

twentieth century free is a cross subsidy you get something for you pay for something else the classic model is considered razor and blade to give away the razr and do so the blade it turns out gillette never give away the razors the give them a deep discount but the banks give the not as -- save and shave campaign. but the consequence is the same you're hooked on one saying and which was useless without the blades then you paid for the utility. he did not invent that frank woodward invented that. in the beginning of the packaged goods business, the stores were largely fresh produce at and we do not have many things in boxes are ideal for shopping carts instead to

the extent there were boxes they were behind the counter you had to call for them by name. the original packaged foods were powder which was yeast and baking soda and sugar so we had to introduce a brand along with the first packaging of foods like armand hammer baking soda. fleischman ceased so it became possible to take gelatin and turned into a powder before that the had to boil capsules. but it was the alien concept and the brand of jell-o was unknown. they said how will we get the brand out there? they had a fleet of trucks i have never heard of this thyssen i am not buying as we will selling dope -- george burma you need a traveling sales man's license and that was expensive but there was a

loophole you did not believe that -- need a license to give away things door-to-door so they said what can we give away and so they created a beautiful jell-o recipe book norman rockwell printed it and they handed them out door-to-door then they would go to the local merchants and say people will ask for jell-o we have a bunch of boxes in the back and sure enough that was attractive and enticing by useless without that ingredient sued giveaway 19 recipe book q3 a demand for ever more. the notion if you give away one product then you lead to the 20th century marketing you paid -- to get every cellphone but then you pay for

the minutes. not really but an effective use of the word in belfast ford 100 years and mountain dew california these people start this company where the internet gets bigger so do the searches to go makes a bowlful of money but if i go out today in this three model if i go out and start the act research engine company "free" works if you are number one. >> there is a winner-take-all market those benefit hugely. facebook benefits usually, if all of your friends are facebook you need to be on facebook, google, because if you want to advertise you go to the place where the as are

most effective and likewise if you run somebody's ads on your side you want to run the guy who has the most ads because that would be the most effective. there is the winner-take-all market so there are thousands and thousands of businesses there's games and content we're in a median fire meant a fantastic environment you own the broadcast towers the fleets of trucks and the broadcast centers we have the advertising it is great. along comes the internet and the problem from the media perspective not that it is free but it is competition and a problem with competition is they are not attempting by and large to do glossy magazines or national radio shows they do the laser focus on narrow things. and there is the infinite number of zero things per w compete with google you do not

do what they do you do not create a search engine you say with, three years ago it was just an idea but today it has 40 employees? they don't have any revenues it is so cheap two runs you can continue to invent twitter and there is an infinite number is it a winner-take-all? maybe for a short time but how long will that last? monopolies on line come into existence then disappear before facebook there was myspace before that and so on. thing to go rightly believes there monopolies is not guaranteed or set in stone and they are more likely to lose it than to retain its. >> host: how do compete with

free not if you're the if you are old-line come and maybe what you make can be given away but if you are microsoft, how do compete with free? >> guest: microsoft has 40 years of experience to compete very effectively. it was one of the first software companies in the '70s and the computer industry it was harbor company with i am you buy the computer and you get the software for free and it was tape. been in the 1976 they said you should pay for software because we want continue making this if we don't get paid and people said a software company? and who knew there could be a such a thing? they competed by intellectually convincing people than the next up was piracy how do compete? that is a part of the market

force if you don't do it if you don't make the product free the marketplace will do for you and the digital space-bar crum microsoft's said about piracy especially in china don't do it but it is not the end of the world because you are a developing country and right now you cannot afford software but as you develop you will so if you get hooked we rabin get hooked on cars and buy lowering the cost of computing by letting it be free we will encourage computing but we know this model as the drug dealer model. [laughter] the first taste is free but it works. unlike the a drug dealer model lowering the cost in computing does so it works as china developed it developed faster computing and along the microsoft lines now many chinese businesses to pay for the microsoft software than they competed with open

stores. not about the service level contract now the coolest thing is coming full circle the day before yesterday they announced microsoft office will be free online completing -- competing with google on line that they are having the business software is free to a startup company if you're under 3 million or three years it is all free they have realized that although chinese pirates are the internet entrepreneurs. the same deal sunday will develop faster. if you use free software we want you to use our free suffer if we make it for you may develop faster than someday will be hooked and you can pay us. >> host: there is the element that requires you to wrap your head around the notion of price. because despite what american consumers think the price is not necessarily what the

sticker says we were talking earlier of a great example how it has three prices. >> guest: yes. price seems so obvious but it is so mysterious. talk about how stupid we are. $2.99 per we have been to college we know that $3 how does that work? i am saving a penny. and we rounded down to the number two. [laughter] how does that happen? [laughter] we spent 10 years trying to understand price. where does it come from? is based on the intrinsic quality? eventually came to the notion it is what the market will bear but it took a long time to figure that out. so the good news about price is that it is signaling price is a consumer signal that says i think this is what it is worth there is value is somebody pays do you know

there was the product if they give away something for free you don't know if i wanted not so the problem with three is the remove the signal for commitment when we give away our magazine it is for free on the website $4.85 on the newsstand but if you subscribe it is $10 per year. it really cost $100 per year why don't we subsidize 100%? by writing us a check for any amount, you are signalling a commitment which we can been delivered to the advertisers and say they want is if you write a check for maybe 1 penny we can charge twice as much to the advertiser because he made it the act that suggested engage in it. it does not imply no value here is a problem. and adam world it may imply no

value if you pick up a free newspaper on the street corner do you evaluate as much as "the new york times"? maybe not. we cannot as fat but where the price is taken off the table you do not the value google eddie less because it is free. the way we measure that is wintertime, your usage patterns and, etc. but we don't know how tight that is. take to interpret it is a free service. twitter could monetize and make money tomorrow with one click of a button. to turn on the ad level why don't they do? they are afraid it will screwed up. they don't know how tight their hold is because they do not pay for the free relationship. how much can they screw it up? without it disappearing? >> host: in that case it is

tenuous seven out of 10 people who start eight account twit four times and then go away forever. there is a cost benefit the. >> data know that is a high your bloat ratio. i am not a big user make a charge rebut i still use it. >> host: why? it is a twitter conversation i did not mean to get into. >> guest: why? because i am lazy i used to block a lot but it is a lot easier it is only 40 characters. >> what about no characters? reported business together with no characters. [laughter] you say several times in the

book certain thing is close enough to free to be basically considered as free. 11,000 of a penny and one example of youtube is made of a giveaway the band with and that is great but with a 75 people uploading that still adds up to real money to one i believe you suggest you would qualify for t.a.r.p funds? is a very good writer and a smart guy but completely ron. [laughter] >> i am shocked. >> if he is my colleague from conde nast. i wish someday i could be the writer he is beattie knows nothing about youtube. i was at google last week and let us count to the ears. but nobody knows how much youtube it is a subsidiary of

google. nobody knows how much youtube loses. it does lose money i will get to that but the speculation of the hundreds of billions. i wish, the goal is a little longer the but it does not by bandwidth three tel. they buy a dark fiber. google owns a good fraction of the internet. they are not paying comcast the isp. google has reforms that make their river rouge plant looks small. we do not understand the scale of which they worked the cost is nothing like what malcolm said he is off by the order of magnitude. the second point*, google makes money from youtube, youtube does not have to make money it makes money because it still has 300 services may be 290 hour three google once you to use the internet the more you use the

internet the more you will leave traces of the information, your actions let's google make more money by selling ads. the attachment to the google network will ultimately benefit google whether you switch from youtube too another service or the reformation eight that you want that allow you to create smarter businesses elsewhere they will extract money it is called the complement you will give away the mustered for free to make a hot dog more attractive. nobody says mr. qualifies for t.a.r.p funds because it is a bigger business, the hot dog business. last, youtube is five years old and acquired eight network television sized audience never in the history of advertising has advertisers not found a way to follow the herd or follow the audience as

we move to television and advertisers quickly understood maybe this static picture could be a moving picture. it took them a little while to get it to move. as the audience moves to youtube we will find no way for video advertising as well the reason we cannot take television advertising is because it is mass to mass. coca-cola against "american idol" coke against my tutorial does not fit had we make video ads as granular? it will take us a while. deconstruction, what about the new shin cheap enough to be considered free but still cost somebody? >> guest: this is the difference between almost zero marginal cost. >> host: the entire conversation is spread to eight -- predicated on marginal cost bowing down o.

>> guest: going down it will never go too entirely but so close but you can ignore them. >> host: but close enough to zero marginal cost how does that quantify? >> it is free to the consumer. cost is fixed costs and marginal cost the original business was radio. when you set up a broadcast tower in the twenties it was the new economy. you put out a signal and unlike all other previous forms of media where every book you read required to print a book from you could reach 1 million for the price of one the cost of reaching one more person was a zero or

close enough you could ignore it. the marginal cost was o so that was so profound we realize what we need to do is get the maximum. said it could work as and radio operators realized the economically it worked best with one/many. it was a mass audience and we had mass content. the product that would suit this unprecedented ability to communicate to millions of people at the same time so we invented the blockbuster the movie star reinvented sitcoms and content that addressed commonalities in taste of the lowest common to nine -- denominator everybody loves remand-- raymond but you appeal to a mass audience there are places you cannot

go. the entire conversation would be too much for your show. that is what it did it created mass media now again we have a new medium and this has the advantage to everybody save time it can be mass and niche at the same time it is unprecedented to think of. what that requires is to use free for what it is best that to maximize your audience and have people to sample the product than the free does that in one way the penny does not for you change a penny for your product then you get a tiny little audience you charge nothing for product and the potential to of a huge audience and how did you convert that into money? >> explain the scarcity vs. abundance conundrum that this

brings to light in economics is as you quote the study and science of choice under scarcity of you can have everything figure out what you want but in this era of marginal cost going to zero and band with going cheap, what we have, we have everything in those fields and we can waste it. explain how that factors into the book. >> scarcity is a good thing if you own the scarce commodity. we in the media industry had a monopoly in the 20th century. you had a broadcast license and i have the printing plant. there was a day when the newspapers are waiting to get the news of you needed to get news the newspaper was the only way to do it. so they have consumer attention the only way you can make money is with scarcity of economics.

what happened, the internet destroyed scarcity. now there is an infinite number of producers out there, a different number of channels, we have lost our scarcity so there is more competition and the prices go down. that is a bad thing. our cathedrals of commerce will not get another one of those because we don't have scarcity anymore but the good thing about the fact anyone can publish is everyone is publishing and you have been a great example it is the future of television one but have thought somewhere in the city in a room not unlike this, people are figuring out the future of television. rahm. what is happening is 1 million people uploading their own videos collectively is figuring out the future perk everybody says youtube isn't

it full of crap? yes but that is what makes it so great because your crap is not my crap. >> but it is crap. >> guest: but the way nature approaches evolution and we will try everything. the deadline will floated everywhere almost all we'll land on the side but maybe one of them will find a new place. mammals are very unusual we are unique that we have few offerings -- offspring's you have four and i have five. >> host: most of the time. >> guest: but by and large i try to ensure that they reach adulthood. [laughter] eighty-two now will lay 3 million ase but it does not ensure that the children reach adulthood and most of them don't. but in economic terms you are

answering a lot of crap up the wall every video that can be made will be every videographer who can we may discover the future is not raymond or lonely girl 15 or all of the above. >> or we watch susan boyle say i never dreamed a dream 2 million times. >> guest: do you have a problem with that? >> host: it is lovely but it is that the future of television? >> guest: the dirty secret we're not all like. when i was a kid when i came home from school there were four channels. only one channel was inappropriate it was gilligan's island but had to look at the nielsen statistics you would have said that it turns out 14 year-old boys love gilligan's island he

defined we have found the perfect show. but it turns out if you and give people one show to watch they will watch that we wanted to watch television some of us did but have we been given the internet may be we would not be watching gilligan's island. that is what is happening in the book to tell the story of my wife is a very tough mom and she allows the children two hours of screen time per weekend saturday and sunday. >> host: i read as two hours each day. >> guest: that is depends on how that works depends on how unknowing they are. [laughter] but you can have two hours of star wars. you can watch store wars as george lucas only dreamed it with the upscale with the

surround sound will make you popcorn or you can go on youtube or watch a animations made by eight this seven year-old's with lego figures they would watch what we would consider craps stop action and animation really is crap they put the finger in the screen. [laughter] the voice acting, but it is irrelevant it is what they want. they started watching star wars they wanted to watch toy soldier animations. so by any definition of quality it is crap but yet that is exactly what they want we never knew it. no committee, no boardroom window team ever realized the perfect television was television made by other seven

year-old's. >> host: it happens because of the abundance. >> guest: because we let seven year-old's waste bandwidth we discover the future of television. >> host: but is horrifying. how much time? we thinking of your question and we will bring the microphone over but since you brought about by have to ask you about the media model of free priceline n/a wed the video because the use it is the bane of your existence how you keep newspapers around where they themselves are giving away their product for free now saying we cannot make any money? >> this is part of the men of bane of my existence which is printed dead which people love asking the editor of "wired"

magazine about the digital space-bar code. newspapers in particular, there are two problems with newspapers. the news and the paper. the first problem is, what is news? we don't know. when you look at what people are consuming, of what is greeted by professional journalists also amateurs it turns out news to me the news that my daughter's grave attorney on the playground is news that is more important to me than the news there has been another car bombing in baghdad. i am not expecting my local newspaper to report on that but it is news it is my hobbies in professional interest facebook is news. it is news about your world. it is not as we as a professional journalist finds

it but it builds that news gaap. that is a problem. in general if the internet is already doing you should do something else so the question is does your product add value? ivan say let's start with "the new york times" for all newspapers are not created equal. to the journalist add value? absolutely does the paper of "the new york times" add value? you could argue i am interviewing "the new york times" magazine this coming sunday and it is up already i just read it online. it is wednesday night and it is out already. when the newspaperman's when you read this morning's newspaper is that anything new to you? you have read it. so paper makes the news 18

hours late and believes it ain't on your fingers. so the question is what is bible? some of the reporting is valuable but line but most of the bdm where we can make as much money was as it did with print. the other stuff of how many reporters do you need at the michael jackson memorial service? >> host: you need more reporters. more. >> guest: if the "san francisco chronicle" cents one reporter how much value is the reporter adding? i think we'll find out what newspapers did they probably should not be doing and some of what day did has a value. no oil talked about the difference the times will be fine. they will figure out they may be smaller but they will still have value thereof, now board charge away for some content

or invent a form of advertising they will figure out. my local newspaper my local local newspaper they will be pretty good they are being and mean they can cover my local community even better but the severance is your chronicle i am not sure it has a future. it turns out my interest, imagine a line of geography that goes one mitel, 100 miles, a 10,000 miles. i have intense interest what happens one mile from my home and interest globally so i'm interested in berkeley and baghdad. to live in the bay area but i could not give a crap about san jose. i just come i don't have bad but the newspaper they think that you care it is built on the metropolitan area and i have an interest but i am really granular.

stephen johnson who has a company called outside in which is about hyper local and they discovered it is the pothole phenomenon your interest in the pot holes six blocks from your house but not eight blocks of we're parochial and have that radiance -- radius how do we covered journalism every six blocks? 3-1/2 to let the amateurs and let them cover their own community. so we will have a good community management it will be journalism in baghdad but the middle scales with san jose? i don't know i think it will get worse before it gets better to seven there is a general is a question to be asked where it taking information from unpublished sources like wikipedia.

>> guest: there are two things when is a question if you should site wikipedia and i think you should. >> host: issued you use it? >> guest: i think you should. i do actually site in the book but in the book industry there's a lot of debate how to cite wikipedia the problem is unlike a book that is static it changes all the time so they want you to time stamp your citations you put the url read on july 8, 2008. and then as you can imagine i railed against this the and it is crazy what happen? would have you been doing for last year? 1/2 to go back and read -- said reed time stamp of my a entries? the digital editions are fixed it is taking care of but i was

really sloppy and messed up on the 11th hour three integrating the attribution sino the question should do? not all entries are excellent but some are and you need to be discriminating so we think of wikipedia as being amateur and untrustworthy but some people creating the entries are the best scholars in the field maybe not the entry on the quantum mechanics cents einstein wrote that in britannica but the entry on the particular passage i was talking about which is the history of a free lunch was written by summer release march scholars on the subjects. the problem is you need to check original sources and the problem is it does change over time and you cannot cite the individual but the entry is the collaboration of many individuals.

so what we decided to do with this book and will do going forward is all of the notes are online it is just the you are out. if you want to see then you'll see that in three and the history you can make up your own mind whether it is a good source or not. >> host: just to wrap up if you're a 12 year-old came home with a research paper tsai team wikipedia i would send them down to the library and make them get out the world book. >> guest: i would say when you cited wikipedia did you go to the source and read those as well? if they say that was the beginning, there are two reasons one is because it is the entry point* and the other is the actual analysis is used all you do not do one without the other and i would encourage them to click on the

link at the bottom and read the original material. >> how would you assess the situation with myspace? two or three years ago it was a winner-take-all of the social network site where did they go wrong? or what did they do or not do? >> guest: we should all feel like that is the third largest site on the internet? i am not to worry about my space. myspace if you look at myspace it looks terrible there are no uglier pages other than craig less. [laughter] but that is what people wanted. you can argue facebook by having authentication with the e-mail address it had a slightly higher signal to noise ratio it is less messy

but her face but will have its problems as well but i will argue the biggest problem was not finding in advertising model that worked as well as the service. there is some analysis that suggested class that facebook was a call this phenomenon and myspace was not there is the age difference by think myspace had a very important to music component that it was the differential in quality in the beginning but it was blurred are like the fact there returning to the music routes and will do a better job of that. i would say the biggest problem was the problem that all of us have. they got complacent after it was successful they thought they had won the lottery and that was it they did not innovate and facebook innovative faster and i think

the music component in particular they should have pushed harder and relief figure out how to be a true music resource portal, etc. i know they struggled to higher the music guy at may's pace but complacency is always the answer. >> host: does a free economy make innovation easier or harder? >> guest: much much easier. the first is this is free, let me give you an example one of my projects is a robotics company that we do open source hardware a fascinating concept the schematics, the firm where, software open source part where and this will terrify you but we do open

source in drums, predators their little but they are free-for-all everybody can have one. we're competing with the industrial military complex we are giving away stuff to anybody. >> host: how was that going? >> it is going great that air force is really, really interested in what we're doing. [laughter] but we give away at our staff and intellectual property and in return people make it better. the model with many eyes all bugs are shallow. the other day we had some code that had a bug in the red drum cold. we were busy with something else we could not fix the people were hassling us we just said open it up. seven hours later the community fixed a.

the problem is we don't have enough time to think of the various applications but because it is open i do not want to make a drawn-out want to make the boat or a car or helicopter or rocket they take our code and the pulpit to sue to the other markets. to do what you want and give us credit if you want. >> host: how do you make money? >> guest: if you take all of our stuff and make your own if you are a chinese company you can rip us off and sell it however if you want to buy it from us we will charge you 2. six times the cost. why would anybody buy from us? we have built a relationship of trust and a community by opening our code by being eight community people feel they understand us they wanted to support does come with a trust that the products are what we say they are and they

pay us 99.9 what people pay us other than make it themselves. >> do you think this concept will change the way higher education works long ago there were books you could not go to college but still universities are important to do think as they put their content online that will change? almost like in this space a lot of people don't need to come because they can watch it somewhere else? >> we touched on that a lot of these m.i.t. has opened course curriculum, harvard and others are putting lectures on line. it really asks the question what is university four? the curriculum or lectures or for something else? we're realizing it is not about that you set and we talk

but rather the interactive communications is a collaboration with the other students the one-on-one collaboration with the professors and the contacts that you make. it is a little of the accreditation you got in the door and got out the door but the content itself can be opened to all. it does not seem to hertz university or diminish the personal contacts broke my robotics company i was looking for my chief technical officer we're on an open source platform and i went to the boards and i saw one guy who was awful. he was clearly the world's expert he made an autonomous helicopter so i started to talk to him he agreed to a project with me we were together and we started this company together and i said i would like to know more about you. he told me he was a 19

year-old high-school student living in tiajuana. [laughter] he is now 21 years of who lives in l.a.. he has a google phd he has the initiative and intelligence to give himself the ph.d. quality education by learning himself by self starting. now he gets the degree because it turns out some companies like to see college degrees but he does not need it. he is learning the basics and the foundational skills he had not picked up with google but the fact the editor in chief of "wired" magazine went looking for the best of rolled ended up with a 19 year-old kid in tiajuana is the most inspiring story about what the internet can do i have experienced 37 did you hire him? >> 50/50. >> and appears computing is

the next thing in the business sector what is the next thing in the personal or private market sector? in the digital age. >> i understand. >> like facebook and youtube is popular and twitter of course, is popular so what is the next thing? >> i have no idea everybody always asks me. nobody knows. i did not know twitter was the next big thing until it was the next big thing. my crystal ball is as bad as everybody else. we never have to predict redo tried to look for weak signals someone said the future is already here it is just an even the distributed. mib big and career, china, and might be the kids but i have no idea what the next big thing is after

twitter nobody does. >> o characters and do and we making a lot money. [laughter] >> what about human evolution and continuing to reinforce consumerism. if it is not free somebody will pay for it as the advertiser and there is the paradox and behavioral finance that the richer we get the less happy we are so if we are in pursuit of happiness how does that fit within the model we continue to reinforce with consumers and? >> guest: first of all, we only talked about advertising but the book is said different form of free which is the version of the three sample you just give away a tiny fraction to sell the rest but instead you sell almost everything and only sell to

10% it is the best form of marketing because when you convert you do so not because you were suckered into it but because you sampled of product and founded the utility and you're happy to pay. that does not address your question but i want to make that point*. consumerism? in a non monetary economy what does that mean? you're not paying. if you are getting free content on-line, blogs, facebook, are you a consumer? are you a customer? these are the wrong words. we are consuming more it is absolutely true because it costs less. we get more information my kids are exposed to an extraordinary abundance of information and content and entertainment and all of it is free. does that make them a value

stuff more or less? is that the anti-consumer is because they don't pay anything? i don't think we really know. doesn't make them happier or less happy? it is a good question but they have the infinite supply of stuff in front of them. they can click anything they want and everything they do want is on mine. they still ask me for the credit card with club sanguine. [laughter] anybody have club england? the request for the credit card it is free to play games but the request comes quickly because they want the pets. they still seemed to value it but it is not like the plastic wrap that they got for the birthday but it is a great question what happens when we become used as a free economy?

>> [inaudible] >> a great question along tell was the extension of gilligan island that we thought we wanted blockbusters and top sellers end top 40 but that is just what we were offered. but it turns out we're all different and the recognition of the diversity was put into our culture but through ltd distribution channels we greatly enriched our culture and change the world steel the wish no-space can be infinite is it cost nothing. free shelf space change our culture and change in the world. that made me think about three and then i realized not only did the preshow space to the but we created a countryside

economy on line around the price of zero we had never had an industrial economy of this size i figure there should be the economic model i could not find one so i wrote the book. free and -- "free" and "the long tail" are round the shell space-bar of this cannot be the opportune time but what is the next but? >> i think i will not write about the internet but about the real world. my experience with the robotics company and as a hardware company built on software grounds, a magazine there is the diy cottage industry very sophisticated electronics because the manufacturing technology is as democratized as digital technologies sell the book is

adams or the new bids the rebirth of the american industry can we fix the america up doesn't make sense anymore problem? but by using the same kind of democratized bottoms up grassroots innovation model that works well with software no starting to apply to harbor as well. thank you [applause] >> i just finished a thick book called liberal fascism. i had to read a lot of stuff

for that so in fact, the stuff i have been reading is graphic novels or comic books for grown-ups by reading a book called rebirth of a nation i hope that is the title i will sound silly if it is not i will be reviewing for national review it is good so far ideologically i have some problems with it but it is a good read about the intellectual courage that leads to the progressive era i have been reading stuff about social democracy which is pretty good and i picked up of a copy of the book called math land that is the interesting social phenomenon not a good recreational drug and that is eight bout it -- a that is about it the books i would recommend my friend has a new book out about ellis island

that i hope to get to and one of my favorite books is an older history book written by lbj liberal called rendezvous with destiny it is a fantastic easily accessible book another book called the decline and fall of america and a liberalism for our hope i get these titles right. what else? at my own book the treating make friends and influence people. the angel graphic novel series which takes place after the tv series ends. a pretty good read i just reread the watchmen pretty recently which is the famous graphic novel from the 1980's it is the interesting cultural historical document it is a good comic book but it is more

interestiinteresti ng as it reflects the time. i guess that is about it for now i am very much so can afford to the new book about europe and immigration which people on the right in particular have been waiting for for a very, very long time he is a fantastic writer. i am sure it will be pretty good. . .