that we would be bouncing back the nation because, of course, this was just another cycle that we were going through and when the nation because a cold machine catches pneumonia because we were making things that people buy but very large things like cars. to sue a the end of my first year in office after the economists had said that things are going to bounce back and i kept waiting. rome was saying this is a really good time to be elected governor because you're coming into the valley, things are going to emerge and it will be an excellent time to claim credit for all of the research is a michigan. so at the end of the first year when the job for not bouncing back, even though the national economy has started to recover, i was scratching my head faugh will allow this was not the case. i got a call from the head of our mission and economic development corporation which is our economic pulled an armrest

in. he said he he said, green bell, this little town. in michigan our mission -- we care a mass in the end of our hands. to reserve for machine? the could you all. you know. our map of michigan and green bell, it's close to lancing in the center of the state. is this tiny little town called green felt. they are about to lose their enormous research -- refrigerator factory. in fact, green bell had called itself the refrigerator couple of the world. they in this tiny town of 8,000 people had north america's largest refrigerator factory employing 2,700 of the 8,000 people who live in that town which when all of these up to about eight dozen people or grandparents and kids, this is a one company town. the whole town has grown up around a refrigerator manufacturing. he says they're born to leave. they're going to move to mexico.

us said, no, they're not. your going to go to green vote. we will put whatever incentives we have on the table and make them an offer they can't refuse me. we went, were in a room probably about the size and the small-town. the mayor was there. the city manager was there. the guy who was responsible for the community colleges there. the workers were there. the represented the whole town, and their residents showed up to try to prevent electrolux the chopper in the refrigerator factory for moving to mexico. we put everything we have on the table. everybody into their pockets figuratively of all of their chips and remit a big pile and we slid the pile across the table to the management of electrolux. in the pile was zero taxes for 20 years. we offered to build an entirely

new factory. the workers resisted by the uaw offer $30 million in concessions every single year. it did not even want us to tell anyone out there offering because they were afraid of copycat requests from others who wanted concessions. our pileup incentives, which were hundreds of millions of dollars. the factory management took our list of incentives i went up to the room. seventeen minutes. they came back again and said, while, this is really generous. this is the most generous offer we have ever been presented with , but there is nothing you can do to overcome the fact that we can pay a dollar 57 an hour in mexico. there is nothing that you can do. so the month that the last refrigerator came off the line there was a gathering in the town, and it was of the

employees, and the employees called the gathering the last supper. it was at a big pavilion. the wheat is gathering and walked into the big pavilion. there was a band playing sad music. people were sitting around eight tables. eating out of box lunches and sank a millionaire, what you going to do next? where are you going to do next? it was a big community breathing i went up to the first table. and i didn't announce was coming. i felt like -- i felt so much a part of this community and public we have lost this huge think. i went to the first table and a stack of the to me and has his two daughters and his baseball cap on backwards and tattoos. i said to the government is a $2

to 52 daughters, in teenager's, you've worked in this factory for 30 years. forty years old. coming from high-school the factory. my father worked at the factory. my grandfather worked the factory. all i know is how to make refrigerators and. then he put his hand on his chest and he said, so, governor, who is ever going to hire me? who is ever going to hire me? it wasn't just some. it is workers all over the country that are experiencing the ramifications of globalization, and it was not just green bill either. >> let me ask the tell their low bit. we sure have a piece by piece this thing came out as you heard

the optimism about how things are going to turn around. we have always had this cyclical economy. all of us in america are sort of saying, okay, where is the upturn and the doubt if he had been watching in the last six weeks is up. back down and up and back down and up. but one of the questions that we had was when does it come? and one of the things that we learned is that the recovery actually came this it to the other session rally was israel's it bought. america loss $40,000 in the first decade of the century.

we lost two and a half million jobs among american companies that were multinational companies, we lost two and a half million jobs. but the crazy thing, as to a friend i start to look up the numbers and start to see it experience after experience with the once you described, none is poignant or just nuclear as greenville was. but experience after experience of jennifer getting what are called mourned act notices were a company that employs over 500 people, i think -- >> to amass wealth of 50 more. they have to inform the governor by federal law. so these are flooding in at a certain point in 08 in a nine when things were terrible. so we had this terrible shrinkage. at the same time those companies grew almost 3 million jobs abroad. so there was actually a net

growth. think about it. this is the error that we have always been a tremendous efficiency and productivity, of two people doing one job, increasing over time, especially white-collar overtime without having to pay for it, pushing your health care cost and to people, all kinds of things to give more and more efficient, to use technology in every way possible. and during that time there were still adding jobs. it was pure shrinkage. and whatever and i noticed that like to say is that adam smith, you remember, the great capitalistic common stock but the invisible hand. he said when people make efficient decisions, when they decide to work more and make more, they decide to buy a cheaper product than an expensive product, all of those decisions create this invisible hand where money and resources move to the most efficient places. that is exactly what we experienced. we watched as our jobs have migrated elsewhere, and we have lived still within a protected

soda bottle one of of the process, the we are in a closed economy, and economic system. so if you give companies more money or if you give melt the people more money there will think, how do i invested and make more money? which is great if you're in a closed system. if the most efficient place to spend that money, to use the money as a business person is to invest abroad, but we have a major jobs problem. likewise on the consumer side, if consumers do the most prudent thing, which is go to walmart rather than somewhere else to get a lower dollar amount where those dollars go? well, a big chunk of those dollars will flow across the ocean to china. so we are in the midst of this tremendous situation where we are still in 20th-century minds about what the economy is like. it will talk more about michigan and how our michigan residents were very much, and i think is

true in california and even in my brilliant berkeley, across the bay, still thinking with 20th-century minds about 201st century problems. in fact, when this happened and i realize that this was potentially, you know, the harbinger of all of this stuff to come for us we decided that we in michigan were going to do an analysis on our economy and do everything possible to be able to keep jobs in michigan. so despite the global economy. i listened to the business community and cut taxes. i have the list. a first term, the firstborn a half years. there were small, large, targeted, you know, individual. ninety-nine times. in bats, by the time i left office machine had cut by far as a percentage more of a government that any state in the

country. we had cut just on raw numbers by far more employees, public employees than any state in the country. by the time i left we were 48 in terms of the size of government. our corporate tax burden have dropped between 1997 and 2007 more than any state in the country. so you would think that the prescription for small government and cutting taxes which many people continued to put forward as the solution to our national economy today, you would think that if those were, in fact, the only solution is to be able to use the machine would have had the most robust economy in the nation. and yet we still have the highest unemployment rate for the vast majority of the last decade. there was a mismatch. i was not applying solutions to the 21st center problem. i was applying a 20th-century

solutions to a 21st center problem. now, all of that means i do believe that you have to be efficient as in government, and i am not suggesting that you want the huge bloated government. yet to come rican in order to invest where you must. but the thing that started to turn us around was the ability to partner with the federal government to make strategic investments in areas where michigan could compete globally. one example. so when the recovery act was first adopted president obama said he wanted for there to be a component of that that would allow for america to make electric vehicles. you could only do that if you make the battery here in this country. before 2009 the vast, all of the electric vehicle batteries except for 3 percent were made in asia. and so what the president had

said repeatedly on the campaign trail is you don't want to substitute our reliance on foreign oil for reliance on foreign batteries. lets us in america make the electric vehicle and the guts for that vehicle. we raised a hand and said, we made vehicle one. we want to make to as well. and so in order to compete for those photographs we've teamed with the private sector and the universities to be able to put together a really compelling theory proposals to the federal government. end in august of 2009, in fact, joe biden came to michigan to announce all of the winners of that opportunity. within the space of 18 months michigan had developed an entire battery cluster in our state because we had done an analysis and we were able to go invest with the federal government. that investment is supposed to

create 63,000 jobs in michigan by the year 2020. one of the battery companies just tired their 1,000 person, and we identified a whole supply chain, not just of folks who are building batteries, but the suppliers to the battery companies. we knew that we had gaps in the supply chain, so i went to japan and said, come to the michigan provide the cat the materials with the batteries. i went to another company and said, provide the electrolytes for the battery, supply chain that we are developing. i went to korea. you make all these batteries for the consumer products. bill the batteries with the electric vehicle in the united states. come to michigan. >> you're sounding like our dean >> yes. i was. >> were going to south carolina, florida. >> at any rate, the bottom line is agreeable to develop this cluster, but we would never have

been ill to do it on our own. it was only in partnership with the better our government and the university and the private sector that we were able to do it. so that trajectory of the learning for me as governor was one that lasted almost the entire eight years. we tried a lot of stuff throughout that time. the only thing that began to work was this ability to invest in our economy. and the truth of that is that in 2010 our unemployment rate dropped six times faster than the national average. the gallup organization said that ms. against job performance job improvement was the most improved of all the states. in august these weeks said the she was the number one state pri job creation opportunities, even over -- even though we have a long way to go. but it finally started to turn around once or able to strategically invest in order to bring jobs here.

>> talk for a minute just about states and the fact that you are competing with haley barbour in mississippi and he was trying to pull out of jobs there and you were -- and mitch daniels backyard indiana trying to pull. or in california. it is a favorite place for governors to come. >> governors love to come to california. so here is the issue. no state has the opportunity or resources to compete against china or germany or other countries. the state, even a state as powerful as california because you have to balance our budget in the have no resources to be able to do it. but states do compete against one another all the time. whatever way we can, and the only way that we can often compete is by throwing tax incentives at businesses. and so luring businesses, and you're moving them around from one state to another. every governor call we are

constantly competing with one another to set that run from you guys. there is a magazine that facilitates this cult site selection magazine. >> to doing? >> i did. you are does moving the jobs around from wednesday to another. when the real competition is overseas. so what do we do as a nation to be able to crack the code to keep jobs here when the movement of jobs and capital, as we have seen so readily flows to places not just that have the cheapest labor, green bell was an example of where they have the cheapest labor, but also where there is an offer of a partnership on behalf of other government. i will send a quick story in and put it back to you. i was in march in china.

i am very interested in the opportunity that the clean energy economy can provide in terms of jobs. and so we went with a group called securing american's future energy. he met with a number of chinese officials to see what they're doing to be able to attract. they have attracted so many so the jobs from california, used to provide a huge number and answer a small. the chinese, was at one of the meetings. chinese officials me aside and said, so, when the you think the united states is going to get a national energy policy? and has said, you know, congress, so divisive, just don't know. this is with the chinese official did. he grinned, wrote his hands together and then he said to me take a ton. they see our passivity as their opportunity. we have to recognize that the federal government and this

country, in terms of energy policy and getting jobs, has brought a nice @booktv after a gunfight. >> i think that is one of the issues. i can't help but think we are on the verge of an election cycle. what should we be talking to each other about and what should we be asking kid hits to take stands on? where should they be? i think this is one of the most important issues. i will still wonder jennifer stories, which is actually a george bush story in this biography. he talked about being with huge in town, the president of china. they're talking about their situations in life and, you know, their fears, their colleagues, just kind of pain got. president bush says what keeps you awake at night. and he says well, what keeps me awake is treating 25 millie the jobs year for the people of china of course the good gentleman, if of the question and said how about you, president bush.

can you guess -- your member eight years of president bush. what you think. ♪ saving the world, cutting taxes. something else. what kept him awake at night jack terrorism. terrorism is what kept him awake. the bad news ago when he was reading to this dinner burners. here's the point. are we really focused, not just saying we're focused about jobs, we focused by creating jobs now in the kind of economy in the global economy? countries like china, and rebought embrace an awful lot of what china is. but what we can embrace is really an aggressive desire to generate economic activity that

leads to the bottom line. so consider the contrast. when we bring the sun to tennessee where you had to honda somewhere, you give them the land. we can give you this incentive and an incentive and come here. don't go next door to alabama, contest. and the deal is struck. well, when gm goes to china and says we want to work with you, have a little joint venture, builds and cars, sell some cars, just like eurasian ferns. let's strike up a little deal. who do you think of that operation? china. china of staff. shanghai motors. shanghai motors is owned by the city of shanghai, which operates under pretty strict federal guidelines. do we want that kind of rigidity, probably not. in the long run will help get me become a benign. is it helping them out? 50% of the return is going to

come back to shanghai to think about investment in their schools, investment in the roads, investment and their infrastructure, the things that america thinks that we did in the past but don't seem to want to or need to do. so somehow we have to be thinking is how do we be as intensely competitive as they are or do we want the government sitting on the sidelines? i mean, this is still the bull of the deal is yet we have. but the government on the sidelines and let the market do its thing and everything is great. how is that working? it's really not. and so we need an american-style, an american makes of capitalism and democracy there were press. we needed a government that has determined and not one that says trust us. in time will work out. everything will work its way out. clearly that is not working here. >> i was moderating a bunch of

multinational ceos on the panel earlier this year. the question was, was to the role of government b? you know, for the ad states in job creation. i said to them, so, since you are in a bunch of countries, is there a country that does it best? we should remind ourselves after? >> this was john deere, coca-cola, at&t. we are talking about people who are really seeing the glow from the business person standpoint. >> and so what they said is a two-person singapore does the best what is it that singapore is doing jack? and what singapore is doing is they do an assessment of their economy, identify strengths and weaknesses, identify the clusters that they could attract , the clusters and sectors that they could attract and will be globally competitive in singapore. they go get those companies, have specific goals for foreign

direct investment. they go out, find those companies and bring them into singapore, create a custom that has suppliers and has customers as well. then they offered streamlined permitting for businesses to come and open up shop very easily. they give access to capital for businesses who have heavy equipment and technology that are very expensive, to be able to get them in the ground. in short the offer them a full-fledged partnership, not a top down, but the bottom of partnership with the businesses to say how community competitive. in the united states what could we do? what can we be looking at? at think we ought to be going after foreign direct investment. we ought to be taking advantage of the diversity of this country and saying to international businesses, if you want to do business in the united states, comment hire our people. we ought to be having specific goals. ambassadors should have goals that they are assigned to countries. how many companies can you bring

in to the united states to be able to employ our citizens? i think we should not be afraid of identifying the questors that work for us. in california you have this phenomenal silicon valley. all of these ideas are integrated there, where are they taken to scare? where is the actual manufacture occurring? : a visit china, a lot of his overseas. i would come as a you have a product who will be allowed to make it for you in michigan. crest of california's bond companies. >> familiar with solyndra. a 80. those beautiful plants on the side. so what happened. there is a situation of $500 million, doing it-what you're saying, guarantee loans,

federal government planning an active role building in the sector. >> it is the tough question. does the united states provide access to capital for industries that it believes is in the critical national interest to make you believe is a nation that we should be energy independence? should respond and invest in new technologies? sometimes when you invest you win and sometimes you don't win. this particular program had 40 applicants, 40 projects going. this one project failed. it was a big number, but if you place no bets you lose overtime. other countries up playing bets aggressively. if we are not in the game we will continue to be bystanders to a loss of jobs. now, that is one solution. i am not suggesting that should be blown up and used everywhere, but if you have a comprehensive uniquely american economic

development strategy that is an assist from the federal government then i think you can start to have some impact. >> let me jump in there. i think one of the things that happens is we get into this black or white syndrome. so this government investment in the private sector was crazy. look at solyndra. we lost all this money. separate the government from the private sector, build the wall like the one, you know, they're building in israel, the one we want to build in mexico. bill the wall and separate business and government. this is kind of a crazy idea if you ask me in many respects because there are some things that we want to invest in that we know we have to invested. certainly as a society we decide we want to invest in education. you want to invest in roads. many times we have a mix of public and private coming together to do that. i don't know what a fight in california, but almost every

road build -- you won't find a state building road. you will find they're creating competition and bidding work just like somebody would in the private sector and letting the market mechanism works so that you get the best builder of roads that you can get. it is not truly one of the other solyndra is the extreme case for it is actually government money that need to be there in the beginning and be a guarantee of a rise would not have had a private money. somewhat risky, but the government does lots of stuff that is not as risky. one of the things that jennifer did in michigan, and i'm sure governor brown is doing here is that you bargain for what you need. so if your estate what is it that you're looking for tech what is your big interest when you're offering grants or when you are offering some landreau when your offering a tax credit? if you were the governor what would you say you want from those companies? >> jobs. >> so when do you pay the credit? when they claim the tax credit on their little income tax form?

when they hire people, when they prove that they hire people. so it is not as though it is entirely one of the other, not as though the government cannot think or decide what we are interested in investing in and how we go about that investment. then let the private sector work. find out ways to have both worked. when we have been hoodwinked to believe it is an all or nothing proposition. is it too much money? of course. i they're great people? tons of them are really trying to do awesome banks? absolutely. we have lots of checks and balances. >> we are going to have two quick points. the issue of tax policy is an important one. when states offer tax credits that are tied to job creation york tying tax policy to something that we want. just across the board kind of tax cuts, without tying it to job creation in the united

states, you might actually be giving somebody some extra money so that they can maximize their shareholder return in the best possible way in a global market. if you don't hide that tax policy to job creation in the u.s. you could be, in effect, sort of you know facilitating the flood of jobs. and so that is really for us in a global economy now an important point. last thing because, you know, we wrote this book together. even though it is in my boys, but i insisted he be listed as co-author because he is, you know, wonderful in all of that. so i would love for you to just say a word about the various said it to the crises. >> shouldn't have to listen to me because it to be thinking about what questions and comments you want to share with us. what was interesting in the book was jennifer told the story about the man with the ball cap and the tattoos and the kids in front of them resent what am i

supposed to do. what was devastating in michigan were those individual stories. i happened to be there are a number of occasions where people came up to jennifer and asked what she'd do. and where grown men are crying or very close to crying and really at wit's end. that was also true on the larger scale. so that man had a real identity crisis. who is going to hire me? what am i going to do? a back-to-school, and we had a wonderful program called the worker left behind. it was about retraining workers and giving these 45 and 15 year-old man a chance somewhere. but he had to reinvent himself, and we had a stake that has to still reinvent itself. it is gone through these crises, and every time our big three have come back smaller, sometimes i have phoned german, sometimes italian, sometimes a taxpayer largely owned.

in the case of gm we are all running at company. next time you think about those cars in california and everybody seems to drive, think about a volt or something because you on the company. that editorial aside, and machine heat works low wage hike of jobs, from the graduation led to the employment line and edge of the rest of the life. mysia there would be up with. that means you have a cottage in the north. it might be in the west 30's, will be to set up north. a few even have up boat. all that on my high-school diploma. there has to change. okay. the interesting thing was that we realized it writing the book that there are two other added to the crises involved, and we talked about the somewhat in the book. one must my wife. a person who is always succeeded everything in believe if you're smart enough and get the right people and work hard enough that will get you there. a little bit of talents, real

hard work, and find of the people who can make it happen. it just couldn't. there is a great story in there that i won't tell about when barack obama called and what a moment the west in our lives and how to respond. and in the strange thing, there was another to the crisis which is mine because of really did what the governors story to be my story when i was a young man, and also it very briefly. we were at the third session with the priest. preparing as for the vows of matrimony. in the first two sessions we had talked about all kinds of great things the you had never expected a man to know. what do you do about money? , the kids do you want to have, how many people fight? all kinds of really great stuff. well, in this third session we are sitting across from him and he said to the the beginning of the session knowing that i'm going to go back to michigan

where my seven siblings lived in all my hundreds of cousins and my dad had been involved in politics and i'm going to be ready one day a governor story. he says to me, mind you we have 35 years old when of those central casting, hansen and priest. he says, so, what happens in 18 years if the party comes to jennifer and they say, there is an open senate seat and your lawyer and you're smart and you're attractive and lots of ways. a great speaker. by the way, it's a good time for a woman. he says you should run. how would you feel about that? effective at all the true their would have said, well, i feel like i just got hit by to buy for right across the forehead. i said i would probably be jealous and maybe a little bit confused. if jennifer felt called to that location that would be 100 percent behind her. the priest had the wrong office but the story rights.

it was truly a prophetic story. what happened of the course of my time, and upkeep is her brief, is that i had intended to press as well. i thought i was supposed to walk in the shoes of my beloved and wasn't. somebody had to take care of these wonderful three kids who were six and five and one at the time jennifer was elected the trade general who was pulling into first grade, seventh grade, and at great which she became governor. that role fell to me. the short story is it was an incredibly great and continues to be an incredibly great experience. like michigan, we are sort of asleep, especially men, asleep through enormous change that is ongoing and the need this where 60 percent of the college degrees are going to women, earning more law degrees, more medical degrees, more female supervisors in the world demand, but we are still sort of sleep in terms of how will raise our families and make this whole thing work.

there is another story to be read somewhere that there is a great opportunity for men, not just women, a great opportunity for fantastic woman to jump in and lead. a great opportunity for men to have a very different kind of life than it thought. >> when he was drawing up you wanted to be president of pope. he went to yale, majored in theology, was going to go to the seminary. eventually we met to miss that to the workout. he didn't become a priest, but he did become a saint. all right. we could go on and on. obviously we have a book signing to do, but -- >> a microphone. you know, being filmed for c-span, so it would be great to be allowed to your your your voice. there is one here. >> everybody please with a microphone. >> thank you very much, both of

you. if you are both coke presidents of the united states would you both do to bring unemployment to four and a half percent? thank you. >> welcome all right. a good hypothetical. can't happen because i wasn't born in this country, but i do think that a starts is what the president is proposing in the jobs and recovery act which was to tie tax policy to job creation in the united states and to invest in key infrastructure that businesses believe is important to. i also think that we do have to have a national economic development strategy. i would like to see it jobs rest of the top in the same way that we have an education raise the top. if you put a small amount of money up there for governors to compete on jobs, do an assessment of the states and have a strategy to develop certain sectors that are in a to them, that education race to the top, $4 billion. it cost every single state 46 out of 50 states to it jump

through hoops, change the standard in ways that they never would have thought possible. the states are really catch every. if you had just a little bit of a competition among states for a small pot of money on the federal level you would see states changing their permitting streamlining. the average technology. you see them partner with universities. in sweden it is called the triple helix read the partner which in the private sector universities and business. in singapore is called the golden triangle. we don't have a national economic development strategy that is part ring with the state states spend over backwards to make that happen. >> of this give you one more idea. foreign direct investment. and transform our thinking about the world. we will create all this democracy and police all these countries and be ready for big disputes, start do to foster the point and as a dozen people

around the globe to do that then instead think the real -- i don't want to use the world war, but the real competition and a real opportunity for positive competition is in the global marketplace. so say to our ambassadors, number one, tell hillary clinton to stay and give her a new mission which is to revamp the state in a way that it becomes more of an economic development tool. we embrace the globe and not by the globe and ask how we build great companies, how we build great partnerships that make the world interdependent in a positive way in the growing jobs here in the country. >> we have a bunch of recommendations. >> the specific goals about how many jobs it would create. otherwise we get a new ambassador, not based on contributions for the candidate, based on how many jobs they can bring to the country. >> there are a bunch of folks in the back with their hands up. >> maybe we just marked toward the microphone back. easier and more efficient.

>> i was the king that a job, all jobs that need manufacturing would have to be done in china because we cannot compete way twice. and so i feel like we are destined to fail. so let me give you some hope on that. i think that the repetitive motion, you're right. we have lost the vast majority of them, and it will be almost impossible for us as a nation to get them back. but advanced manufacturing, you better believe you can be competitive. the advance manufacturing around -- i don't know what you mean, the advanced manufacturing round requires some skill. in fact, you know, a lot of people say that our unions, eccentric, driving investment overseas. the new union model, at least for michigan, the new head of

the uaw, for example, he stood before all the manufacturers of the are of industry and they're suppliers and a big conference in michigan and said once he was elected this is not your father's uaw. our goal is to keep jobs in america, and we want to partner with management to make that happen. our energy is not marriage reverses labor. the conflict is us verses the globe. how can we have the most efficient process cheese and the most sophisticated level of skill to be able to make you globally competitive? right now labor is only 7 percent of the cost of the a vehicle, and a vehicle is the most technologically advanced mass-produced product in the world. you need to have people in the town to program the robots, and not to maintain their robotic line. it is not easily just horrible, so on advanced manufacturing you better believe the united states can still be competitive, but we will not be competitive if we do

nothing. other countries are eagerly jumping over us, both on skill as well as on partner with the private sector. i would say we have to have federal policy that partners with strategic sectors that we know our in our nation's interest. for example, i think that having -- we have a critical national need to be energy independent for purposes related to work in our strategic interest overseas. if we are serious about having a critical national lead them we need to invest to make that happen. that has to be something that the united states government partners on, some maybe you do provide access to low-cost capital. maybe you do team up and provide partnership with the private sector financial community to make sure that it is a good business case for those advanced manufacturers. maybe team up with the universities to make sure they have a pipeline of talent that the community colleges to be able to feed into. we are even having those

conversations about that level a partnership to make a good business case for them to locate here. we could, but the loan on their own and other countries are offering all sorts of partnerships we will not win. >> at the other thing that your question gets that is that the irony is that in the old days of the factory you have pictures of four assembly lines. yeah, there were men who were strong, bending steel literally, who were risking their hands and other body parts who were in during all kinds of incredible noise. so i worked in four factories during college in the 70's. it resembled that in many ways. noisy, dirty, dangerous, redundant power repetitive and said it's tough all over again. boring is boring to be. the irony is that places like china and mexico have stolen some of that old-fashioned manufacturing.

in the process where they're getting is all of this intellectual talent. we risk losing the next phase, which, as jennifer is describing , a much more high level situation. you or i were jennifer may be is here, work or cfo, and you're all talking about the process and able to understand how we make this thing work. the scary thing is that what is happening educationally, you have all read this, how many ph.d. in engineering degrees are coming out of universities in india and china that were being whipped. if you want to look back in 34 years, it's not going to be taxes, but to be whether we have a 9-9-9.. it did we invest in a work force and children? to be developed human capitol? the years in front of us are above this, not about spending. >> and, just to jump on that, if

you cannot separate research and development from the manufacturing costs once you lose the manufacturing capacity these years will follow. you cannot separate the two. people don't realize, they think we will just be a service station and we will just use the design but not the manufacturing engineers have to see what these products look like. pretty soon the research and development centers will move as well, unless we get serious. >> two thoughts. one is in education, can't we put more emphasis on entrepreneurial teaching students to be on to the nearest? never did have to work for somebody but can work for themselves. and another comment regarding the first question and this race to the top for jobs for getting companies, wouldn't that lead to

states asking -- states offering to -- what is the word, deregulate said that companies would come there? >> on the second question you have to have a floor. you're not going to incentivize behavior that is going to end up damaging the nation, even if it's damage the only one state. you have to have a floor and crafted in such a way that you are not violating federal informant for protection loss. >> did have their own regulations. >> they do, but you can do stuff like a accelerating permit with having eliminating layers of bureaucracy that are not necessarily related to protecting the national resources of the state. you would have to crafted in a way that is sure those protections. >> and let me jump into your first question. the answer is yes end. as step entrepreneurialism,

yesterweek to teach that. we need to teach people the ability to invent and create. the end part is that it is not just about being an entrepreneur what we have to create is in up to bury a mind set everywhere so that the idea that kids still have very much have colonies living with us to move to california and is looking for a job. we know lots of young people, and they still have this idea that there is a job out their somewhere. let me wonder around and find the perfect job that i sit in and fit in. what i am trying to say is, it's not about what a company will pull of of you but what you are going to generate in the company, you having a sense that the company, school, government, the you will generate added funds you no matter who york. i don't care who you are. these kids have to understand that if they don't generate value, if they are not adding knowledge and creativity and collaboration and great stuff we're sunk because we are

starting at a rate differential of 57 or even less in china and india, and we are expecting, what. our kids during of college are expecting 18 bucks an hour. my niece was turned 40 or 50,000 is what she thinks she needs to live here. that is an enormous differential. how do we justify it? the only way we justify it is incredible knowledge. i believe ought to perillas of. it's a different kind. i left class today with my since saying, okay, we are halfway through the year and we are not there. you are still sitting here waiting for me. and i am barely innovative, but you're still waiting for me to guide you. they have 15 years. i mean, some schools have subtly changed, but overwhelmingly it is wait until somebody tells you what to do. we need corrective the more than

anything else. creativity, collaboration, not that i am the boss and everyone listens, but this environment where people have ideas and are sharing ideas, driving each other along. yes, yes, yes. >> i am an engineer, and what i see is when i have gone to factories in the last couple of years, i have not given up on manufacturing in this country. what i see is the machinists are all in their 50's and 60's. they don't have enough work for the and people, and at some point the economic standards in china and mexico are going to go up. what i am afraid of is that we are going to lose that institutional knowledge. when i go to pennsylvania i look over and think bethlehem steel factory is now a casino. how do you feel about protectionism or keeping some of those jobs here by america it?

>> i think that we have to be aggressive in the trade arena. when i say that, i think that first of all we have been apus again at the world trade organization rather than a tagger. and we need to have that mind set that we have to create and keep jobs for our people. does that mean i think that we should put up unilaterally walls? no, but i do think that once other countries assessed tariffs or non-tariff barriers to our products being able to be shipped in that should be a signal that allows for us to do the same end to it so strongly that we are serious about creating a fair playing field. i think we can compete. i really do. i worry about the generation of the fifties to mid the 50-year-old, had been the 1540 year-old. maybe even into the low 60's kamal that knowledge and those jobs being gone, but i also know

that every single day there are ideas being generated and regenerated to do advanced manufactured products. we just are not planning and all we're not play offense and we are not playing defense. i would consider the trade arena a place for we should place strong defense on behalf of our people. >> thank you. enjoy it is very much. have two things to say. said he would be the best president, but unfortunately you cannot be. three things. machine has the highest amount of tech jobs right now. >> right. >> because of what you did. another aspect is that necessarily positive. in 1974, don't know if you guys were born in, but i was. >> we were. >> the book came out during the middle of watergate and the global reach. the professor probably knows, but that lated all-out in 74.

the incredible lack of attitude that american manufacturers and mbas and guys like me had a bucket your ticket all. reinvigorate our country to say, hey, we are not the best generation anymore. we need to work harder. >> it struck me as ironic as a democrat. we get trapped. for instance the republicans are talking about american exception listen. unfortunately we are not exceptional in some areas. we are exceptional in our physical growth, exceptionally large people. but a lot of the places we want to be exceptional we have been sliding. it is not a god-given gift. the right of all people should know that. so this notion that if you criticize the country and say wake up you are somehow

unpatriotic is really repulsive to me. i think it is ironic because it comes at a time where certainly in my life since world war ii we came on the world war ii as the most dominant country on the globe militarily, economically. we help rebuild the rest of the world. since that time we are probably in as precarious a position as we have been. we have income sliding. we have homeownership sliding, educational levels fairly flat, relative to the rest of the world's growth. so it's hard to wake us up, how to create a crisis when people are running around saying he doesn't believe american is a great company -- country. that's again slip. that's a good clip. so i don't know. i mean, most of the time you need a burning platform, and i feel like we missed that chance sometime. i no you're begging to get income above when -- in the last

presidential campaign senator mccain and governor romney came to michigan. senator mccain said, which i could tell your jobs are coming back. they're not. governor romney said my dad was the head of american motors c'mon going to bring america back. who do you think they voted for? i mean, romney carried michigan. then he wrote an editorial in the new york times saying, let the trucker bankrupt. and he still thinks he's going to win that state and he might. so i'm not sure how we wake people up when there is this craziness out there about patting ourselves on the back. >> i think the occupy wall street is starting to be a wake-up call honestly. i think it is an expression of frustration. but but is that frustration embedded in to make the inequality of income. if any of you are at all inclined to look at this, there

is a nobel prize-winning economist a stanford adjusted an analysis of the united states economy. in that analysis evaluates what has happened over the past decade. it started in the 70's, but we did not have the trade agreements that we have now, which of course the world is not as flat as it is now. the movement of capital from both trade agreements as well as technology has made it so easy. michael spence has said that what has happened is astonishing in the united states because we have seen in the past decade the movement of all these tradable goods, jobs which are manufacturing jobs, and the increase in services, the increase in services he says you have a problem because they're not quite to pay as much. it contributes to this growing inequality of wages when you don't have good paying middle-class jobs that i tied to things like manufacturing. when you look at occupy wall

street, the frustration that people are expressing is we don't have jobs, we have this huge inequality. these folks on wall street are being paid hundreds of millions of dollars in some cases, and we can't even get a service job is going to put food on the table. i think that is the beginning of a wake-up call. >> yes. well, i had a -- we went to detroit. we both love for a long time. i worked at the planned. the entire bill there. we went back. we asked for something as simple as a map of detroit. let me show you something. this is very shocking. what you have is aloof area of five monks to the downtown -- one half of radius of downtown.

it does not even go of the grand boulevard. on the other side there is a tiny spot in the picture of southeast michigan. just won the last many suburbs, and we were able to get maps of every single suburb the details streets, but then in the suburban map as soon as it hit the city line the street vanishes like nothing happened. there are still at least 700,000 people living in the city. we went through there. i talked to my old neighbors. which airport, african-american. i cannot help but think this is race related, even if for economic reasons. it is a call discrimination. but city you cannot get a street map of it. i would like something to be

done about it. and then maybe if you could talk to aaa, that is what it is. that is the question. so that's all. i wondered about your feelings about that. here is your copy of a letter a row to aaa. as it did yesterday, but i would like. >> the trouble in math question to aaa map. that's right. you can't get a street map of detroit today, and that is the question. >> but it is a metaphor, right, for another very to -- the problem with detroit happens to be the poster child of which is that the industrialization of america. detroit went from 2 million people to know 700,000 on this city great that was built for 2 million. you have pockets of just vacant land and buildings. very, very sad. ..

in brands and companies have to pay 1% of the salary base for retraining for workers, and i'm wondering, is there any sustained effort to actually look at what other countries are doing and see if we can replicate them here? >> there must be. in fact we use this -- this is a really great point. germany, which is a country that is roughly at our wage level, right? roughly at our level of industrial development, and yet they didn't lose the level of manufacturing that the united

states had lost. why? a their government is active in keeping manufacturing there. they have direct policy that makes a good business case for them to locate there but they also are very serious about this training pipeline. it's called -- and we talk about it here. i think that we ought to be looking at adopting a version for the united states. in our little state of michigan we adopted something called no worker left behind. we went to the federal government and said, look, can we repurpose all of our workforce training money and give those people who are unemployed and opportunity to be retrained for specific areas like an apprenticeship, get a certification or in an area of need or entrepreneurship, but we need to have our federal dollars relevant to the 21st century. they allowed us the flexibility to do that. i stood at the state of the state address and i said to michigan, the first 100,000 workers who come in the door, we

will give you two years of tuition at a community college, $5000 per person, to $10,000 but the catch is you have to agree to be trained in an area of need, so an area like we were developing or in health care or in something that we know will lead to a job. you cannot go and get a degree in french or political science. those are my degree so i can say that. [laughter] we need no one like me, but we do need nurses. we do need entrepreneurs. we do need people and clean energy and as a result of that, and we borrowed a lot of our efforts from what was going on in germany, as a result of that we have not only 100,000 people enrolled, we had 150,000 their placement rate was four times higher than the national average. anybody who went through training, 82% of them found jobs in the areas that they trained in, in a state that had such a high unemployment rate so i'm just saying our whole workforce

training and pipeline related to apprenticeships is very 20th century. >> and it's a great question. jennifer talks about germany. she talks about sweden and how much you borrow. she had mentioned that before. in both cases there is sanity, especially in the scandinavian countries. i wrote about this a while ago. we have this terrible problem where we have huge unemployment, chronic unemployment that stands around 10%, 12% or here in california right? and then we have this extreme over employment where people are just working like they have never worked before. so why can't we just do a little bit, why can't we figure out okay, let people take it and that we start giving people options. maybe a 5% cut. let 20 of us take a 5% cut that allows us to have a little bit more time and frees up some money so you can hire people. you can hire people, your question was how do you get to efforts on that? we can get to 4.5%% unemployment

included make some of those moves, some with national policy for instance on unemployment, allow people to get unemployment and take it and get it while they are at work for a wild, which would stimulate the employers to bring people on board so that they could have a source of revenue. so maybe that is a way to leverage. >> hi. i have a comment and to questions. the first,, hello from sink carlos. >> same colors -- sink carlos california. i graduated from sink carlos which no longer exists. oh my.. >> to questions and i will let you decide which is -- i think the national dialogue around the detroit bailout, it seems like a big success story, the business is survived. they got rid of some bad business models, money is getting paid back but if i believed the national media this dispute by everybody as a

failure across the country, which i wanted a reality check and see if that is how you perceive the perception? the second is i was wondering if you could comment weather was harder to get agreement with the legislature on the budget are harder to get agreement as a couple on the outline for the book? >> that's a really great question. first is, this has been a huge success, the auto recovery effort that all of these auto companies are now making a profit. they have paid back their loans. they are made thing -- i just drove here in my bolt, which is an electric cars that plugs into the garage. it is so, the cars have been winning all of these awards now. they been totally retooled. the old model is so 20th century. the new auto industry has been an enormous success thanks to the efforts in the and the intervention of the federal government and i have to jump in -- this is such a great example of government and the private sector because the

president, read the book. the president beat the heck out of chrysler and gm, right? the uaw came out chastised and they made huge concessions so what you had with all kinds of movement in all kinds of places. we paid in taxpayer samba the company went through an incredibly deep downsize and they got rid of the ceo and it was really deep. laker -- labour came to the table and it really different things. you had very different companies there than you had before. they embraced energy efficiency in a way that they hadn't before, so to me, it was really an extraordinary story. the loss was utterly -- >> if we lost the manufacturing that one of american if we lost the auto industry, would have been the steel industry, would have been the glass industry, the rubber industry, all of these industries that collateral damage would have been horrific. instead what you have is they revitalize auto industry, loans paid back and saving of the manufacturing back on.

>> we could've gone into bankruptcy that they forced a really furiously fast bankruptcy and creditors lost in dealers laws. everybody paid and so just want to make one point about the bigger picture. i think if we had a choice, jennifer would be in favor of the occupy wall street. i would be in favor of, maybe you would be too, the different movement which is a movement for rationality and compromise. this book was easy to write because we love each other and we compromised a lot. >> the legislature on the other hand's -- >> no, that is the point. where you get to the intense ideological position we will not compromise. i don't know the old watch the republican debate. there were 10 of them up there on fox and they said to them, okay this was right on the debt ceiling was being raised remember? in the government almost shut down we lost our credit rating and drop for the first time ever. the moderator from "fox news" said as a candidate, if you had to deal right now for the

1.8 trillion or whatever that had to be resolved, you had to deal -- make a deal right now, did you see this question? 10 partech, one part tax revenue increase. would you take the deal? did you watch? every single one of them, one of them hesitated for a second that everyone of them said they would not take the deal. so i am in favor of a party, a new party of radical compromise because what happened with the big three, with everybody gave. i believe that is where we need to be in this country and right now, we are in a place where you know, the party, the party on the left, and you heard jennifer. i wanted to save say remind them you are a democrat. i have the smallest government in the country. i cut part of government than anybody. by tax rates are lower than anyone's. although that stuff is true. this is the democrats so folks we are moving. we understand there's a market out there and we need to create jobs. we are moving but on the other side it's like there is no

movement. there is no tax. >> the bottom line, because i know we want to close up, is that everything is happening to the country right now happened to michigan first. and i'm not kidding you. that goes politically, the question of the good political question. we have a whole chapter on that as well as economically and so we really are very grateful to the mechanics institute for hosting this and for giving us an opportunity to share. >> and the league of women voters. >> and the league of women voters. >> and just the warmth in here. >> nobody fell over so that's great. thank you also very much. thank you. [applause] >> but i have one more question i want jennifer to comment on, her upcoming tv show, the room which is going to continue our political conversation number one first with the book. i hope everyone will come up and

purchase a book and have it signed. we will also be in a further conversation as the election continue so please -- >> so i was invited by al gore to do a tv show the following keith olbermann on current tv so starting in january i will be doing a tv show that is focused on the elections, a political junkie like me, i'm interested in politics and policy and so it will be called the war room. the war rooms of political campaigns and candidates. so i hope you tune in. 6:00 here, right. 6:00 to 7:00 here. great, thank so much. speech canion. [applause] >> to find out more visit the author's web site, jennifer granholm.com.

>> it father's night at the national press club. several different authors are here. they are selling their books to support charity and one of those authors is jeremy ben-ami. booktv has covered mr. on me for his book, a new voice for israel. mr. ben-ami, what is j st.? >> j is the pro-lobby, new organization for yourself and the practice of american engagement to help achieve middle east peace. >> how do you stand compared to a-pac? >> well we are part of the jewish community that believes that a two-state solution would be in israel's and the united states best interest and we want to see the president do more, not less, to help achieve this. >> what is the new voice for israel? >> the new voice is to

essentially provide a counterweight to some old boys that for too long have rewarded to speak for the entire genus community and who have had positions on these issues that are more hawkish than the average jewish american. particularly for those who are 40 and under the jewish community, supporting israel doesn't mean supporting every decision of the israeli government and it doesn't mean taking the most hawkish possible abuse. >> what is the position that you do support that might be different than say what you say are the 40 and over? >> band the traditional establishment? well, for instance the president gave a speech his speech in may in which he said the two states, israel and palestine, needs some 67 lines on the border between the west bank and israel. we think that's exactly right. the president took a great deal of heat from organized jewish groups and other voices. we believe he should have gotten

a great deal of support because that's the only way that israel is actually going to survive as the jewish and democratic country if it does achieve a two-state solution on that base is. >> palgrave macmillan published a new voice for israel, fighting for the survival of the jewish state. jeremy ben-ami, founder of j st., is the author. >> next, from the abraham lincoln presidential library, rajmohan gandhi talks about the 1857 mutiny in india and the american civil war and describes the parallels between his grandfather, indian freedom fighter mahon does gun the comment abraham lincoln. this is a little over an hour. >> like me, for those of you who grew up in india, gandhi was a major part of our collective conscience just as for were many of you, lincoln's towering persona was a keeper of