♪. >> we have time for a couple questions and we have a very nice set of questions.

>> you can't say that on tv. [laughter] >> okay, back to case out. i have a question for you and it will be two or three questions. he and i have been looking roouant to be depressethe numbeg about better part of this. in 500,000 companies are started each year and 400,000 clones. and there are 100,000 and it keeps america alive. and four years ago those numbers went upside down. and it's not too hard to argue

that america is going broke and this is really encouraging and very hopeful. and half of them say they dream in starting a business. with all of your experience, if you have all 50 million kids and keep it going and all that, what would you say to them? is it wrong to want to be rich?

want to be your own boss? what would you say to 15 million high school kids that might fix that i think that is one of america's most and we have all of these tables together. and not everyone can be an entrepreneur or a small business owner. some people are supportive to entrepreneurs. let me tell you a story about this. okay commenters agree man in detroit, he is there in the treasury department and by the way, 35 kids wanted to learn and

they go to the same school and another story. but this is an example and the kids are all sort of chilling together pennebaker shows up in the classroom and it comes once a week for six weeks as we do intentionally and the first time people aren't paying attention. and by the for time it is private. and it is the sunday best. and this time he graduates they can't make it out.

and we will give each of you $70. the two friends, we don't need them anymore. and they say that i want to do one share. is that the beginning of the story or the ending? well, it's the beginning. but it literally works emotionally. everyone in school has air jordan. black air jordan, everyone has air jordan thing you need air jordan's. and i want them to buy those shoes area and it is true.

because when they do this, they are making me money. a light came on and he came to you and you are a role model and you let them hang out with you. >> he was nine when he started is probably 12 now and one day jim gibson e-mail and aj got an a. but my point is that he is neither the right part of his brain, and it was confidence that turn them around.

but when i was growing up and talking about my story, i didn't notice all the drama around me. i was on fire with this. and i think that if we tonight that right side of the brain, the hope side, the aspirations side. >> what do you think the aspiration and? >> if you succeed economically in the course of financial literacy and there's everybody telling them what they are at

and they have too many to pitch the idea is and when they do well we fund it and it's up to $500. >> i want you to think deeply when i ask you this question. >> oh, okay, you started up with a very large enterprise. and you could've been a very dandy guide ndt and the executive. so why did you want to take a road of creating energy where none existed? >> i wanted freedom. and i wanted to be free. and my grandparents wanted to vote. >> with my backup driver, he is from pakistan, i asked him why

he came to america. and i asked him why he started a business. making about $80,000 per year and he drives six days a week. and he said freedom and i said, it's a different question. i go to bed when i want, i work as hard as i want and whoever comes there is my choice, it is freedom. it is self-determination. especially than that in the 21st century you cannot have freedom without self-determination without economic energy. >> one of the questions that we asked was one to five, do you want to be your own boss.

>> don't get me to the exact percentage, but 77% said they wanted to be their own boss, 99% were not afraid of and 57% of kids wanted to own their own business. >> in your next project, that would be a good thing to get to the bottom of arid you know, this super behavioral economist. but he said that it's the start of this menace, that no matter who you are you need to be in a state of mind of confidence.

and you need to be in such an extreme state of mine with aspiration and inspiration. so that can make a lot of difference to the kids. you had a couple questions for john and by the way, of the next time when you leave here and you drive by the inner-city and you find a liquor store, next to a title lender, rims with the spinners, that is not racism and that is not discrimination but target marketing. simply part of the credits for companies and what we are going to do is move the credit scores 120 points and there's nothing to change your life more then that's. >> the interest rates are what,

40%? >> what is really insulting is a government check. they are charging you up to 5% and what is the chance that it will bounce? but they're charging for your own money and that's what happened when the donor's and a high financial iq than we actually lost our hope. so that is why you have to get the hope that and the self-esteem of in the credit score up because then the liquor store turns into a convenience store and that you became an emerging market question. >> hello, thank you for your information here. >> hold on one moment, please. >> all right, now. >> hello, my name is surely and i want to thank you for your

information. >> i get what you're saying, i love teaching the young people how to be successful in life because it's very important. they are their own future and carrying on for the legacy. the issue is that once you teach or informed with being students or these young folks how to build a business, where do you go when they get in that business, they build that business, but they have the large conglomerates to deal with when it comes to competition. >> that is right. >> there is no easy answer to that. the road less traveled, because life is difficult. read the rest of the book.

but the thing that i learned to your question and point, i made $300 a week and what i learned was and we are always managing around pain and rest and all kinds of security issues and they are more equipped and i could've went and got a job after that and you have to deal with that and be resilient.

life is 10% how you choose to respond to it. and so what i learned from age to age 20 is to manage my response and to manage pain. nice first book is encourage is nothing more than faith displaying a selfish action in your life. and the key to life is managing pain. the beauty of going through this exercise as you can create young people who are almost resilient to pain and disappointment and perseverance and the level is through the roof and you can't stop it. at that point it doesn't matter what else that they do. they are going to get to it and that is the generation i am looking for is a resilient generation of leaders and some which will become entrepreneurs.

so let's keep this discussion going. we've gone laid. john is going to be right here. i want to say one more time that i don't read books and it's the best book that i read in 10 years. but i want to see you again but it's definitely your best one. >> thank you. unintentionally.

its program is about an hour. >> host: "please stop helping us how liberals make it hard for blacks," author jason riley. if i were to tell you that i've taken this around me for several cookouts are just around town, political circles and it has raised a few eyebrows, just title alone become and sparks conversation, what would you think about that? >> guest: publishers would be happy to hear that. it's not surprising. i've had a similar reaction. when i went to get the jacket photograph taken the photographer was black and ask me what is the title of the book and it started a conversation. >> host: you touch a lot of third rails in this book. you go from president obama, you talk about the voter id and even at the conclusion the third rail

that you touch and i want to talk about that a little later on. george zimmerman and people in the black community. talk to me about how you have come up with these thoughts and brought things together for the book that typically is not thought of in the way that you have written in the black community. >> guest: a lot of it comes from people that i dedicate the book to do the black conservatives that affiliate of thatthe hoover institution and academics who have done a lot of research in this area and have written about it for many years. and i'm familiar with their work and thought the younger generation of blacks should be saying the things they are saying for a new generation of readers and that was a part of the impetus for writing the book. >> host: you are an independent and he starts

chapter number one black man in the white house. talk about that, barack obama. >> guest: barack obama's presidency in the first election of 2008 was kind of the culmination of the civil rights division. that pushed political power as a means of raising blacks in america. and i think it games with the civil rights act of 64 and the voting rights act of 65. since then, however, liberals, black liberals in particular have made political power a priority electing more officials and the obama presidency is the culmination of that vision. i want to say we have that now. to use the data term what do they have to show for it and that is really what prompted that chapter and what i get in

there is the history of groups that have gone that route. they push the political power and they push economic power. >> host: and you talk about those in the civil rights you talk that thutahthat the indust. tell me about that. >> guest: well, yes i think what you have on the left today is a group of individuals and organizations and the big battles have been fought and won. the trouble they have today convincing people. they are the true problems blacks face and i think they have become parodies of what they used to be under king. the naacp spent its time coloring the nation reciting the confederate flag or the use of the n-word is saying there you go. see nothing has changed. don't hold them responsible for the social economic situation today when we still have donald

sterling out there or someone raising a confederate flag in the tea party rally and i think that is a search for relevance. i don't think the racism in general is what is primarily holding blacks back today and racism hasn't been the primary berry or to the advancement for some time. >> host: i want to go back to something you said. battles have been fought and won when it comes to the community. what did you say to the disparities and the jobless rate in this country? african-americans still to this day have the highest unemployment rate in the nation. it's been bringing us to the country and obviously there are disparities in education. there are predatory lending situations where they have these loans that make them default or foreclosure.

there are so many other issues out there that is just in the criminal justice system as well and that's one of the reasons president obama came out after the georges mirman verdict because there is a thought and feeling in fact that african-americans are at the disproportionate level giving higher sentences for things like crack cocaine and also in jail for different things versus a white person. as a talk to me about that when you say the battles haven't been won. >> guest: i take issue with the premise that you pointed the unemployment rate and said for instance that they've been that way since we came here to this country. as you go back to the first part of the 20th century as far back as the 20s, 30s and 40s and even into the 50s, you

will see black labor participation rate tire than white labor participation rates. you will see if you go back to the census studies coming out of slavery in the 1870s and 1890s while off into the 1940s, you will see the rate of two parent households hire him on blacks than among whites. so, you have to look at the trends that were already in place before some of the major civil rights legislation passed. you have between 1940 and 1960 the 40-point drop in the poverty rate in america. 40 points between 1940 to 1960. before the voting rights act. before the civil rights act. that trend continued after it was passed, but at a much slower rate. at best they were continuing the trend.

>> host: with lbj the war continues and i understand you talking about the consensus of the slavery in the 50s and 60s but that quality of what kind of jobs there is a big difference. they are versus being in the lower end of the spectrum the kind of jobs for agriculture at variance and housekeepers and things of that nature. >> guest: that's not what i'm talking about. blacks were joining the skilled professions at a faster rate prior to affirmative action policies which began in earnest in the 1970s than they were after those policies were put in place. teachers, craftsmen and so forth joining the provisions at a higher rate prior to the passage of these. again, almost without thinking we credit is like a form of

action for helping to swell the ranks of the black middle class and increase the number of the college graduates. in fact affirmative action has had the opposite effect. we have 40 years of evidence to look at regarding the affirmative action policies. i will give you a quick example. at the university of california in the empir entire state syste, racial preferences were banned back in 1996 and a voter referendum. after that dan took place, black college graduation rates at the university of california rose by more than 50% and they also rose in the most difficult disciplines of math and science and engineering. again by more than 50%. a policy intended to increase the ranks of the black middle class was in fact producing fewer black college graduates and then they otherwise would have had.

>> host: in the book you cite the justice clarence thomas. >> guest: i think they will say let's look at the track record of what is working and what isn't working when it comes to something like affirmative action with the evidence shows is that affirmative action is mismatching kids with schools and what i mean by that is that it often sets up kids for failure and takes smart kids that might do well to a less selective schools and then that's more selective school they are more likely to drop out altogether or switch to an easier major. a quick example of this is a study done at mit. blacblack students at mit some s ago. the students enrolled at mit scored in the top 10% on their

math sat scores. of all of the kids in the country regardless of color that they were in the bottom 10% at mit. so, you take these very bright kids who would just be hitting it out of the park at a less selective schools. they are at mit struggling. and as a result many don't graduate of mit doesn't care about that. they care about how the freshman class works. whether it looks like there is enough diversity and whether the college catalog has the right look. but for me someone who is concerned about the level of public graduates in this country i would like to see more of them graduate and the evidence shows me that more graduates than the absence of affirmative action policies than when we have affirmative action policies in place. >> host: please stop helping of how liberals make it hard for

blacks to succeed. the author with us today jason riley. this is a very hot conversation. i'm thrilled to be sitting here talking with you. i really am because it is interesting to hear what you have to say. as you are going back as a reporter i get a different set of facts but it's for the listener int and the reader ande viewer to make the assumption, and i appreciate what you have to say. >> there are lots of footnotes and there is an index people can look it up for themselves. they don't have to take my word. >> host: let's go back to the affirmative action situation. we have seen it in the university of michigan talking about preference. we heard about these opportunities in the bush years with the university of michigan, but i want to talk about the examples that you give at mit,

but what about places like harvard university that really go out and recruit african-americans to come in and they give them scholarships to read they give them thousands of dollars for scholarships to come to the schools in harvard university and amherst have been battling back and forth between being the number one school to graduate. >> guest: many of them are black immigrants mightily. they are not people that grew up in a subculture that i talk about in this book and which are graduating from the schools and any of them are immigrants and you find that when you look at education across the country come and in particular in the big cities here in new york where i live you have some selective high schools and the kids have managed to get into those schools do tend to be immigrants. so, there is that. but the iss w