it could be the relationship -- that's why this is real important. now, the reason that there is a book called "the coming jobs war" there are 7 billion people on the face of the earth and 5 billion adults. we have this world polling and it gets you 98% of the world's population. we said what's the will of what you're up to in your country. i'll speed this up. the great american dream is now the will of the whole world. the whole world wants a good job defined as 30 plus hours per week and a paycheck and a consistent work so that's just a good job. when we ask how many adults wish they had that, 3 billion say that is the most important thing in the world to me is to have a

good job. here is the problem. there are only 1.2 billion good jobs available right now. so we have a global shortfall of somewhere between a billion -- 1.5 and 1.8 billion jobs. so the problem you see with jobs going to china or wherever they go, all of that is going to grow multiple times bigger so as americans when we think about our future, about where the jobs are going to be, it's not just china. the whole world is going to be crushing for them. i want to try to stay on a subject. we've been watching this in the middle east with our tracking there. it looks like arab spring. maybe it's islamic winter. how about a jobs war? in egypt they voted for the brotherhood. the brotherhood came in and made a big move in the leadership. guess why they voted for the brotherhood. you think because they want shaharya law? that's not what they told us.

remember they're pretty good business people. they think the brotherhood is more likely to get the economics going better so they can get jobs. if you don't understand what the will is you start making all the wrong decisions and assumptions and you make the middle east worse because that's not what they're actually going for. it's everywhere that's at point. okay. you know these numbers right now. this country's gdp is 15 trillion, right? china's is what, five? so we have about three times the gdp that china does. by the way, oddly, when you ask on the gallup poll to the country who has a bigger economy, china or u.s.? guess what they say? they say china. i don't know why.

if china had a bigger gdp than we do this would be a huge mess. it's kind of a mess right now. i went through a little -- i think this is important to know -- i went through and took a bunch of economists, not gallup economists, outside economists, threw the outliers out and said where will the u.s. economy be in 30 years? they said it'll go from 15 to 30. so $30 trillion of new, incoming stuff. i said where will china be? anybody know this number? between 60 to 80 trillion. they wipe us out. we are on a track where they will be leader of the free world. they'll have plenty of money for military. the problem is the economic might the united states has had over the years is just incredible. so another good question is what will the gdp of the whole world be? i asked that and threw the

outliers out. we're going to go from a current 60 trillion where we are right now -- remember the united states has 25% of the whole world's gdp. that's colossal. there are only 300 million of us. it's going to go from 60 to 200. so it means 140 trillion new stuff is coming in. so the god of jobs and customers and everything else is going to rain $140 trillion of new sales, stocks, money, customers and jobs in the next 30 years. what's our job? what's your job? we've got to get a disproportionate share of it or our relationship with the rest of the world changes more than you can ever imagine. but the way it looks right now is that the chinese, because they're -- whether you do 8.5% or 10% and whether you do 2 to 3 for us, that's what it comes out

to. so unless something big happens, that's coming to a theater near us. and that was one of the reasons why gallup put all this stuff together. now, you're kind of quiet and depressed. that's why -- that was why we did that research. i'll try to say something hopeful here. i was watching tv a little over 30 years ago. there was a panel of economists. i just turned 60. and so i lived through this. but the panel of economists, i'll never forget watching it. just shocked. but they all sat there, both left leaning and right leaning, good americans, and they said that japan and germany were going to overtake our economy in the next 30 years. that's right now. they said that because of superior manufacturing japan

would go to first, germany would go to second, and the united states would go to third. they said japan would be about 5, they said germany would be about 4, and the united states now, can you imagine that, would be kind of 3.5 or 3.8. it's dejavu all over again. we're exactly in the same place we were but remember what happen happened. nobody saw it coming. i mean, the people that love america, our own economists said, it's over. and we wen clear up to 15. i don't know why, i tell mba classes this. why didn't anybody write about this? whatever the hell happened right there is what we need back here again. somebody needs to write that down and say, how can we do that?

of course, what happened was, we just had an unbelievable run of innovation and entrepreneurship. by the way, if you want a big number, if you add the stubs over 30 years over the projection, you see what i mean, so add the stubs over the regression line of the stubs, that equals $100 trillion. now you finally have a big number. that's how much money we had over those 30 years by out performing where we were supposed to be. and that's also how we had this 25% of the total gdp of the whole world. i just want to hit on a couple of these points. i don't mean to make them sound reckless. but i think it's important for the good of the order here.

i think we're making a very big mistake betting all of our money on innovation. you're all big leaders. just consider that. we've pushed all the big, multi-colored chips, on to that one phenomenon of innovation. what if you're wrong? what if we're wrong? i notice that the president is packing $150 billion into innovation. i didn't see a line for entrepreneurship. what if we've got it exactly backwards? here is what i want you to consider. i worked on this research, no special interest groups, nobody else. innovation has no value whatsoever until there is a customer standing next to it. there isn't a person in this town that knows that.

look what the saudis are doing. cities of innovation. there's nothing coming out of those things because the most valuable part is the business model and the entrepreneur that can fire it. this is such an unbelievable story. the internet probably saved this country in that big run. that is a huge part of it. but the inventor is just walking around here in washington right now. he built that over at darpa. i know vin. he is a friend of mine. he told me this story. i didn't hear it from somebody else. he had it done. a guy came walking over. he'd heard about it. he said let me see that thing. vitt showed it to him. he got packets to fly across fiber optics. he had his own internet just

sitting there for a few years. guy came over from the u.s. senate and said holy cow that cob a hell of a thing. let's throw it out into commerce. he'll tell you, he told me, he said back to that u.s. senator, fine with me, but i don't see what value businesses will have with it. my god, it was a conversation about the internet. by the way you know who the u.s. is? yeah. it was al gore. i don't even know him. sounds like a hell of a good thing. he should have got a nobel prize for that one i think. but see, that internet just sat there until it went out into commerce. then entrepreneurs got ahold of that and probably most of that hundred trillion dollars we had came out of just that moment. otherwise all that innovation just sits there.

a woman invited me at about 9:30 in the morning, could you come and do some classes at constitution? she said today. i need nu an hour and a half. i said did somebody cancel? she said no it's the people that head our best labs. nasa, nih, m.i.t. i said what do you want me to say? she said i want you to tell them innovation is over rated. i said it's not over rated. we have the wrong expectation. i went and talked and there were 40 of them, people that run the biggest labs in the world. i said, before you start throwing tomatoes at me how many of you have inventions in your labs ready to go and just need commercialized? every hand went up. one guy said i've got an invention bigger than the internet. it just needs entrepreneurship. we might have the next big run so we don't have to chug along at 2.5%. we might have enough invention. we might have a huge over supply of invention. that's what i think. but we haven't put the same

science to entrepreneurship that we have to innovation. i'm watching my clock here, governor. i want to make just one more point for you to consider. what the united states is the best in the world at is intellectual development. now, you hear about we have bad schools. you have the bottom. the top schools are incredible. 20 of the 30 best mba schools in the world are in the united states. none in the middle east. none in china. none in india. nowhere else. we are masters of intellectual development. if you put a thousand kids out in front of educational psychologists in this country they can rank order them 1 to a thousand with i.q.s, s.a.t. scores, and everybody will agree. we really know i.q. that's how we'll find people,

mississippi or western nebraska or wherever it is, because they test out. and then you give them a scholarship to go to the university of nebraska or chicago or m.i. tirt. or wherev it. it is so intentional that once they graduate they go on to nasa. see how we do that? nobody in the world has mastered intellectual development like the united states of america. but i don't know what the example is, a hammer and a nail when you think everything is a nail or something like that. we do that so well when we're in a big problem like right now we say billions of dollars on innovation but if you said to educational psychologists here are these thousand kids in phoenix or austin or somewhere, let's see you line them up by their ability to create a customer, entrepreneurship, to enterprise. the united states of america fails, flunks. we have no idea it's even an argument. we don't know who the best is. but see, if we could do that,

then you might rise up and change everything. here's the two ideas i have for you and i think maybe you'll have some questions. this morning 6 million ceos got up. that actually have employees there are 6 million. 6 million between one employee and a hundred, between 10 0 and a 00 there are only 80,000. then 2005500 and 10,000 there are only 18,000. it goes just -- more than 10,000 employees -- there are only a thousand companies. do you see? so you got 6 million companies that are under a hundred and that only a hundred thousand that are bigger than that. so in the ecosystem, we really are a nation of small

businesses. when those 6 million small businesses get up, not one of them is thinking about how they can hire an employee. you're all going to see the president? make sure you tell him that. nobody is trying to hire an employee. they're trying to cut them. by the way, if some of you have run a company with ten people, hiring one person is like a merger. it's a huge decision. to got tok everything else. what everybody is talking about is how they can create a customer. this is really important. of the 6 of them aren't even trying to grow. you just have to know that or you'll make mistakes in your engineering. you say, what are they doing in that business? they do it only for the reason of freedom. they're like coyotes or something. they can't be domesticated. nobody has ever domesticated a

coyote. they never will. that's the way those 6 million ceos are. they're not trying to grow. so you see if you put engineering systems in, you put policies in, all the ways that they can grow, 75% of them don't know what you're talking about. they're doing it because they don't want anybody telling them what to do. nobody knows that. that is one place you find american freedom i think with that. those 6 million people, if you get into what they're thinking about, they're like from outer space. i'm kind of one of them. some of you around here are, too. but only 25% of them are really trying to become facebook and groupon and all of those. but you see that's 1.5 million small businesses. but those are the ones that we have to put some kind of engineering in place and support them because they will burst. but they could burst, that 1.5 million, there's about $3 trillion of gdp in there but they could burst up to three times, five times at some of the success we're having with an

experiment with dave, but that's the sweet spot in all of this. the last one is we did a survey of fifth through 12th graders. it's hard to get a national random on these guys but we asked how many -- will you invent something that changes the world? 45% of them said, i'm going to do that. so it's a real high hope innovation question. the other one is, i will start and run my own business. that's about 45%, too. so there's plenty of hope in the fifth through 12th graders. that's where air going to get start-ups. right now we only have about 400,000 companies starting up and we need a million. the second place we have to be is right there. here is the negative. when we asked if they're in an internship, only 5% of them say they are. if we knocked that 5% up to 20%, 25 or even 50, then i think we would take over and retake the world. i'm going to stop right now. thank you very much for having me here.

>> jim gives us plenty to think about and also agreed he would take questions. go right ahead. >> well, first of all, let me say the newest governor has arrived, governor of mississippi, governor bryant, welcome, and you get the first question. >> jim, i enjoyed that. tell me what, if any, your information shows is the biggest impediment to these lone wolves, these entrepreneurs? i love these guys. i love being a round them and talking to them. it's exciting. i think those of us in this business happen to be a little bit of an entrepreneur and so what slows them down? what do they say if you just move that out of the way and take off? >> okay. that'sause that's a debate right here. and we just did a great big sample. i even did -- called some of them myself so i'd get a feel

for them. you sound like you know a lot of them too. they are in a completely different space than the rest of the country. the question is will banks loan them money. that's what you think. it's not true. when ask you what their biggest burden is they say this word. regulations. they say regulations. it's not banks. if anybody tells you, because there are some surveys around, that they tend to be listed samples, just trust me, and when we say, what regulations? the two drill downs are environment and health care. now, some say they shouldn't be saying that. blah, blah. here's the important thing. it's the image that crushes them. i look at them as 6 million turtles. they've all got their heads in their shells. the question is what will get them to put their heads out? i nene in a complimentary way. turtles can get running pretty

fast. they have their heads in their shells. what'll get them out? >> in mississippi they'll bite you, too. >> yeah. but it's not really an issue of banking. we say how many of you have trouble getting a loan? that is about 20%. you and i have always had trouble getting loans, small businessmen. 20% is about the right number. it shouldn't be zero because you should be arguing with these guys anyway. but the regulations but also the image. that's why the messages -- i won't say the name but a group of guys came and said, we're going to give a rebate of $4,000 if people will hire somebody. then they start wondering, what is that, more rules? then that makes the turtle draw their head in. even if they don't do it, don't even talk about it. but then there was something else. they say why don't we have every company just hire one employee. 6 million people aren't going to hire one employee. what does that mean? the little guy in jackson,

mississippi is going to hire one and ge hire one when they're laying off 33,000 or whatever? don't bring that up because it's a conversation that makes the turtle pull their head in even more. >> thank you. >> governor herbert. >> thank you. kind of along the same line with what's been mentioned about regulations when you talk about 6 million ceos who are not trying to expand their businesses i expect they're trying to be profitable. i think that's the motivation. that's how a free market system works. and as you are profitable you have opportunities to expand your business and hire more people. profitability happens in many different ways. to me it's not only the regulation but it's the uncertainty of marketplace. the estimates are that we have, in fact, a couple trillion dollars of capital sitting on the sidelines not engaging in the market place.

that's because of uncertainty, regulations. we don't know what the future is going to bring. and for those entrepreneurs out there who have got great ideas, they need capital. they've got to -- when you commercialize how do you have capital to flow toward helping them commercialize great ideas, whatever that may be in a free market system? so my question would be, and how do we get capital flow into the market place to in fact energize entrepreneurs and help them and commercialization and expansion of existing businesses with new ideas? >> okay. this -- remember the 6 million, only 25% of them really want to grow. and when we ask them, do you have the capital necessary to grow, they say they do. now you got another group in the 75% where they're going broke. they're having trouble. they'd like to have money. banks won't loan it because they know they won't get paid back and they go broke. it is so important that you segment those populations when

you're talking to -- the experiment, one of the most amazing i've done in my whole career, dave and i doing it in nebraska, but we found i'm going to say 500 small businesses and we put -- we call them a guide. we don't like the word mentor. that a guide has ten of them but if you sit down, we got about five things that we do to them that we agreed and put in a box and -- but then you also have a relationship outside those tools. but you talk with them about their own strategies they're always doing a lot of things wrong. they'll spend too much time with their worst customers rather than their best. you see what i mean? so we put kind of our best consulting tools in. but mentoring, advising, that's really what they want. what they wish is that they could have consultants like big companies have. you know, kind of like bain or

gallup or mckenzie or somebody. we tried to create that. by the way, to do it well, you got to have the university of nebraska help. you can't just have some lowell state department do it. it doesn't work at all. it's kind of like magic pulling it off. but gallup has a big name. dave is -- he told me he's a popular governor. he told me he is very, very popular. that's what he told me. we have a popular governor. so people -- then those -- because the people in that 25% are real -- there are some real hot shots in there and they only want to be a part of something that's exciting. so you got to put together something exciting and then they join it. dave really shows up. i really show up. our cfo, coo, president of the university really shows up. it is a very special thing. that's what they need, not capital. >> thank you for all your information. >> by the way, she's from oklahoma. >> yes. i think we probably have eaten

up the rest of that year so -- we appreciate you coming today. i was intrigued by your statistics talking about the 6 million businesses and how many of them were actually looking to expand or not expand and then the last question that we just had about certainty and uncertainty in the market place. i just recently did a survey of all of our businesses in oklahoma. and we're a relatively small state, 3.8 million people. so we surveyed our businesses. we asked 44 questions. we asked about our tax structure, work force, education. are you planning to add more jobs not add more jobs. in oklahoma we found over 60% of our businesses that responded said they were going to add jobs, which is interesting compared to your statistic about how many were actually looking to expand their businesses and then the other thing that's a little different in my state is we actually have employers that can't find the workers they need

in oklahoma which we started a new program called jobs match.com to match employers with employees who are out there in the work force looking for jobs. so it's interesting how what you're saying nationally is a little bit different than what i'm seeing in my state. i think it goes back to the last question is creating that certainty in the market place versus the uncertainty that we see nationally. so as governors, what would you recommend to us that we can do to further create certainty in our states versus what you're seeing nationally and what do we need to do nationally with the uncertainty in the market place? >> by the way, i really -- if you take the -- if you want to do 9% unemployment or 10% unemployment, you're right. the variation of performances in this country are unbelievable especially by city. i mean, if you take omaha, i think omaha's unemployment is like 4.9 and gdp is growing.

i always look at the, i think this is okay, but if you look at austin, texas and albany i love comparing those two. both big states. both cities, capital cities. no porch, no nothing. for some reason, austin, texas has created unbelievable energy. you know, people -- the changes, migration patterns and start-ups and where albany can't really get -- the only thing you can really point to are local leadership teams. where they get together and make some kind of a strategy. you know, looking in nashville. of course they got the music thing. i don't know if it's much gdp or not. they've made that into a health care center. my gosh. there is so much white collar health care there. but there is enormous differences. the most -- the best thing that we can do is the 1.5 million small businesses. by the way, it's kind of the same number as soldiers we have. but if we worked as hard at

developing them like we did our military, i love the military by the way, but if we got as good at that science then i think -- i think that's the best chance to come up. we've got to get free enterprise. obviously i'm a capitalist. but those kids coming out of high school, they better be in the state of mind of free enterprise or we won't have the start-ups that we need. i think those are the two big places to focus on, the 25% of the businesses in your state that really want to grow, get some engineering for them that encourages them and dave and i can help you and tell you about our experiment. and the other one is, get a metric. by the way, gallup just gave it as a gift to the country. if you go on gallup.com you have a thing that your schools can just plug in right there to measure how much innovation, energy, and how much entrepreneur energy and then how many are in internships. whatever your internship number three or five e, it's too low.

times. >> governor, go ahead. >> let's say we solve the issue on having -- teaching folks how to be entrepreneurs. and then we solve the issue on regulation so we have governments that have found ways to make it much more easier to do business. now, the statement you made, there are certain successful communities, 4.9% unemployment, something like that, and then of course places, small communities like guam, 13% or some other areas where again over 9. the question i have is there, in fact, it's a two-part question. you need a customer. it ultimately comes to you need a customer. and is there enough to, let's