[captions copyright national cable satellite corp. 2012] [captioning performed by national captioning institute] >> this is the last full day of campaigning beauport florida's republican primary tomorrow. mitt romney and newt gingrich begin in jacksonville. after that rally, romney goes to the villages. newt gingrich is campaigning with ronald reagan's son michael. rick santorum is skipping

florida, and he s speech is scheduled in missouri and minnesota today. ron paul has no campaign events planned for today. we will have live at coverage of the two campaign advance today. newt gingrich's rally with michael reagan and herman cain at 2:00 eastern. and then at mitt romney's campaign rally at the villages this evening. live from the campaign trail on c-span. we will bring you coverage of the florida presidential primary results and your calls and tweets and candid reaction to the results in the evening -- candidate reaction to the results and the evening. tonight on "the communicators," commissioners minyan clyburn and robert mcdowell as they toward

the consumer electronics show in las vegas. "the communicators," tonight at 8:00 eastern on c-span2 gu. of the world economic forum has wrapped up its five-day meeting in davos, switzerland. treasury secretary tim geithner spoke about the state of the u.s. economy and the impact of the european debt crisis. it is about 30 minutes. >> ladies and gentlemen, welcome to a very special session with a very special person, tim geithner. he is, of course, the secretary of the treasury of the united states. this will be on television as well in a slightly different

format, where we will have a conversation and then open it up to questions. if you could just -- for those of you watched the republican debates, hold your applause and your boos. if he says some particularly controversial, don't boo. it is a great pleasure to have timothy geithner, the secretary of the treasury. let me start with an easy question -- what is the united states economy going to grow at this year? >> it is is still a pretty uncertain world, but the conventional view of the u.s. now is that we're growing between 2% and 3%. i think that is a realistic outcome, as long as we see more progress in europe and as long as we don't see a lot of risks from iran on the oil front. >> does that scenario of two%-3%

growth -- it seems a little different from what ben bernanke thinks growth is going to look like. if you read the statement that said put out, it was a very bearish statement, and to guarantee that rates would be kept where they are until the end of 2014 suggests that they don't see any robust growth for some time. art they wrong? >> i am not a forecaster, but i think if you look at both the fed and's forecast and the consensus of private forecasters, the business community among economists, people are closely clustered in that area. but it is still very dependent on how the world unfolds. we have to recognize that we still face tremendous challenges as a country. we are still repairing the damage caused by a devastating financial crisis. it still has huge lasting impact

on the fortunes of most americans. unemployment is still very high, housing is very weak, construction is weak. people having too much in debt, and they are bringing that down. it will take awhile to repair. that crisis came on top of a decade where we saw virtually no growth in median income, very high levels of poverty in this country, very high level of inequality, and an erosion in people's confidence in their mobility, their prospects over time. on top of that, we face a more challenging world did just last year, the combined effects of oil, japan, the crisis in europe, and the damage the debt limit debate cause in the united states to confidence, those things were very damaging and at a time one of the world was still healing. we have a lot of challenges

ahead in the united states and we're working very hard at trying to lay the foundation for the political consensus that is going to make progress in those things possible. >> there is a very well established narrative, the business community of the united states, that there would be a much more robust recovery, the u.s. economy would be growing more vigorously, if there were greater certainty and businesses could invest, and the reason they are not is a tsunami of regulation, uncertainty about tax policy, uncertainty about the deficit, but perhaps above all, the sense that the economy is being thrown -this huge new wave of regulations, and that is what is keeping the economy back. >> i don't think there is much basis for that view, although it it is it true that we are putting in place very tough reforms in the financial sector, we are trying to

improve upon the health care system works, and we're trying to change how americans use energy. those are necessary, desirable long-term reforms for the united states. if we look at the evidence we have about how the economy and the business community is doing in particular, the reality does not justify that sense. look at the things you can use to measure basic business health. profitability is very, very high. profits are higher than the pre- crissis peak. if you look at investment, private investment in equipment and software is up more than 30% since the trough in the first half of 2009. exports are up 22%. there is broad base strike in energy, the -- broadbased strength and energy, agriculture. i was at a plant in north

carolina this week, building steam and gas turbines and generators for export. they are doing that because they see in the basic fundamentals in the united states, even though there are challenges, pretty compelling advantages to other areas of the world to produce. if you look at basic health of the american business sector, it is much stronger than anybody would have thought at the peak of our crisis and stronger than many of us hoped. what is holding the u.s. economy back still is the echoes an aftershock of the financial crisis, the damage that has done to the housing sector, housing, construction, and the fiscal pressures on state and local governments in particular. that, combined with shocks we saw globally, is why growth has not been stronger than it has been. i really don't think you can

realistically deliver a better outcome for the american business sector than has happened. although we recognize that these reforms are tough and will change the economics of business in this case, we think the overall effect on the economy is still going to be positive long- term, and i don't think there's any basis or evidence that the effect of those things are hurting growth now. just give you an example -- the heritage foundation, a republican and think tank, one of the strongest critics of the impact of regulations so far, estimates the cost could be $20 billion over time. that is a dramatic exaggeration of the potential costs. remember, we are $14 trillion economy. on the evidence we have, profitability, what the markets think about future profit growth at how companies are behaving, i don't think there is any merit to that argument. >> business profitability is up,

productivity is up. unemployment still remains a huge challenge. many businesses have become more productive because they have taken costs out of the system and manage efficiently. how do you get the american jobs machine going again? >> the biggest driver ois how fast we grow. the biggest determinant of how fast we grow now is going to depend on of these two phenomena factors. one is what happens in the world, meaning europe and in the gulf, because of oil, and just to be direct about it, whether republicans in congress decide they want to legislate things that are good for growth in the short term. what we think the right economic agenda for the country is is for us to legislate a set of investment incentives, investments in things that matter for long-term growth, rebuilding america's infrastructure, more education,

more spending on innovation- based science and research, better skills for americans, tied to long-term fiscal reform. if we were able to legislate progress in those things in the short term, that would make a big difference for confidence, it would make a difference for the rate of growth of the american economy in the short run. but to be realistic, it is going to take a long time still for us to fully repair the damage, particularly unemployment, that came as a result of the crisis. it is pretty strong job growth in the private sector compared to the last two recovers, and pretty strong given the aftershocks of the crisis. we all want it to be stronger, though. the fundamental realities of fast growth is dependent on those two factors, is you're successful in stabilizing the crisis in europe -- is europe

successful in stabilizing the crisis in europe, and can we build a political foundation in the united states for pro-growth investments that are the obvious imperative for our future? >> you negotiated with the republicans did to you think there is a chance they would pass any of the things the president talked about in the state of the union? >> they are talking a little bit about infrastructure for the first time. positive but modest impact on income, which is important. we feel there is a case for targeted pro-investment incentives, which would improve the economics of building in the united states. those typically have not been partisan issues, have had broad support among republicans in the past. our view is that there is nothing standing in the way of progress in those things, even if it is good to take time to work out a bigger fights on tax reform entitlements.

but that is the calculation at they have to make. >> most peopler look at the american -- most people look at the american tax code, one of the most complicated in the world -- the key to reforming the tax code is broaden the base, eliminate deductions and loopholes, lower rates. isn't the proposal in the state of the union at taking up the exact opposite direction? >> not at all. the president's proposals, which are focused on a set of investment-a favorable reforms in the corporate tax system, manufacturing and investment, and on a modest but necessary increase in the effective tax rate paid by the richest americans, those two things are only going to come realistically in the context of broader reform. what we are trying to do is lay the foundation for tax reform so

that we can produce a more simple, the rate -- >> why not just proposed tax reform? >> what we are trying to do is be specific about what should dominate the debate. the basic crude at fiscal reality in the united states right now, and we have to govern within those limits, means that when we do tax reform, we are going to have to be helping contra boot to get as a production. we don't have the ability of offering the american people or business people a net tax cut, beyond the capacity of anybody realistic about our constraints. it is also true that fundamental to any resolution of those long- term fiscal problems is going to have to be a modest increase in the effective tax rate on the richest americans. the balance of pain and

adjustment burden that is going to have to come is going to come with those tax reforms on individuals, and with the substantial changes in the trajectory of growth and benefits that will affect many middle-class americans. realistically, that is what is going to come over time, but it is not going to come without change thet how otto basic constraint republicans have put on the economic policy debate. if you look carefully, it is starting to change gu. polls on not reliable as a guide to economic policy, but a majority of republicans, independents, strong majorities, support the long-term fiscal package and increasing the tax rate on the richest americans. that helps a lot. uc democrats showing more pragmatism and realism and

thattivity in releaalizing long-term entitlement commitments are unsustainable. you need both. we will have a big debate on those basic forces. it is unlikely we will make significant progress on those things out of the election. it is not going to go way d. the impact of the automatic cuts in spending are going to be a big motivator to try to make progress on the fiscal front going forward. just to put it in perspective, our fiscal problems are daunting for us in the long run, but they are much more manageable problems that faced by almost any major economy wrapping the world -- any major economy around the world. it is important not to lose sight of the fact that given unemployment, given the very bad outcomes for the united

states the last 30 years, 20 years, 10 years, given the just appallingly high rates of poverty in the united states, given the competitiveness challenges we face that is going to require a pretty significant investment in infrastructure, education, innovation, you ought to take a much broader approach. and not going to solve the problems of the country by thinking they are essentially about how we restore fiscal sustainability. that is part of it. it is not the dominant challenge we face as a country guestwe hae luxury, because we are in evidence of a strong position -- we are in a relatively strong position, of doing this over a period of years, not months. >> mr. secretary, you look at the growth projections that are coming out, and they and other than what were projected, which means that the deficits are larger, which means that the

debt-to-gdp is larger. it looks like in almost every case, not because in debt has gone up but because ge has gone down -- because gdp has gone down. does that suggest that austerity is not a path to growth? >> the debate about austerity and stimulus is mostly divorced from a much more practical reality. the proponents of stimulus, i think, today are realistic -- probably exaggerate its power and reach now. the people will talk about economic problems as most the problems you can solve with austerity get the big things wrong. it is true that for parts of europe, for a long period of time, there is going to be no alternative to very substantial

adjustments in budget deficits in the size of the commitments governments make. there is no alternatives to that. for those who work, however, they need support and financing, and they need to be complemented by reforms that are helpful for growth and competitiveness over time. but they will not work if there is not a stronger commitment of financial resources standing behind the european endeavor. without that, those reforms will never work. countries will face the risk that growth will be met with austerity that will feed the decline. that is a cycle you have to arrest to solve a financial crisis. i think over the last two months in particular, they are laying the foundations for in t -- for a more credible framework,

changing institutions in europe, having three new verynments doing some tough things, have an ec be doing what central banks have to do, you see the move to strengthen the financial sector. i think europeans recognize the unfinished piece of the framework is building a stronger, more credible fire wall. without that, you will be caught in that trap you referred to. >> at the end of the day, there are only so many funds. one proposal is to get the imf more involved and to have them draw up lines of credit from existing members, particularly, obviously, the united states, but also china, $3 trillion of foreign exchange. the news reports say that the united states is not in these asked about the proposal. is that true? -- is not enthusiastic about the proposal.

is that true? >> let me describe the basic position, which has support in europe. our view is that the only way europe is going to be successful in holding this together, making a monetary union work over the long run, is to build a stronger fire wall. that is going to require a bigger commitment of resources. my sense is that the europeans recognize that and they know that the unfinished piece at the moment, and they are going to have to fix that. if europe is able to do that, we believe the imf can play a supportive, constructive role. it cannot substitute for the absence of the european command in. -- of the european commitment. if europe is able to find the political will to build a more effective firewall, you will see the imf and the emerging economies there are supportive of trying to reinforce those efforts.

but not as a substitute for a more effective european response. >> you were in china recently. i'm guessing you talked about many things, but among them, chinese support for sanctions on iran. it seems as though the chinese are willing to cooperate much more than and a half in the past on this issue. is it your sense that in the next year there will be a tightening noose on iran? >> i absolutely think so. even though the last six months, eight months, at two weeks, you are seeing a substantial intensification of not just the financial section -- not just the financial sanctions, but a broader effort to wean the world of dependence on iranian oil, and my sense is that china wants to be part of that effort, because it is very much in china's interest not to see iran undo the delicate

balance of power in the gulf. we are still at this early stage of this next wave of intensified financial pressure, and we are seeing -- i am encouraged by the extent of the support we're getting. from europe, europe has been excellent on this. major emerging economies -- japan, i think china, as far as we can tell now, want to be part of the effort and don't want to undermine it. >> if the price of oil goes up and iran does not make significant concessions, wouldn't it be fair to say that the policy has failed? you have created a situation that strengthens iran with higher oil prices, and at the end of the day, they have not made concessions. >> this is an international effort with very broad support, to maximize incentives for iran

to alter their nuclear ambitions, to deter them from their nuclear ambitions. that is the most important thing, not just for the broad strategic interests we have in stability in the region, but also for security of energy, important to summit countries around the world. that is why we find so much support in building pressure. >> when in china, did you talk about u.s.-china trade in a way that you think you'll see results? the president in his state of the union was pretty tough on china. do you think there is a constructive path forward? >> we will have to see. we measure people by their actions. china does present a pretty unique and formidable challenge in the global trading system, because the structure of its economy, even though it has more of a market economy now, is still overwhelmingly dominated by the state.

china systematically subsidizes the cost of the imports, energy, access to credit capital, and has kept its exchange rate below funnels for some time on all but eight is appreciate -- although it is appreciating gradually. it has a world-class manufacturing sector is supporting that ambition with a set of policies that are very damaging, not just to the commercial and economic interests of trading partners, but the critical support around the world for supporting a more open trading system. that is why it is important to get china to move comprehensively on that front, not just on the exchange rate, but on dialing back the set of subsidies and distortions. they will have to do it. we will have to do it faster and harder, in a more compelling way. they are moving on some fronts. .e will just have to see g

i think china believes it is in its interest to make a broader system work. it depends a lot on access to markets back in the world, and that provides incentive for them to make progress in these reforms. >> we have a little time for questions. let's take time for questions. if you could put your hand way out so i can see it. sir. >> do you believe -- what is your view on the tension between the society of currencies, with all central banks engaging in quantitative easing, between yen, euro, dollar, basically there is a race to the bottom,

and does that place more uncertainty globally on fiat currencies and paper currencies? >> i am not sure it is the total response, but it is basically right. if you look at the conflicts in exchange rates, there is really one big compelling reality, which is that china's currency and the currencies of a bunch of countries that have tied themselves to the dollar and china's currency, is below all measures about fundamentals. over time, those currencies are going to have to continue to rise significantly against major currencies -- against the dollar, the euro, and the yen. it is not principally dollar think it is about as currencies against major currencies.

that is going to happen a matter what. china has the interest of making sure that happens less through higher inflation over time. that is why to let the exchange rate move gradually, not just over 18 months, but to go back five years, is higher against the dollar, but it has some ways to go. it would be better about the stability -- better for the stability of the system to let that happen more gradually. you are right that for the major economies with high unemployment and large unused capacity, for a long period of time the basic thrust of macro policy where people had room to maneuver should be at strengthening growth and demand. that is true in the united states, and it is drew a large parts of the continent. not everybody has room to do

that, but the people who have room to do that should do. it is necessary and desirable and help the for the broad interests of emerging economies, too, because their strength and their future is still substantially dependent on how fast the rest of the world gross. >> one more question here, gentlemen in the front. -- gentleman in the front. >> you talked quite a lot about unemployment. are you concerned in the long run about the growth of protectionism as countries try to protect their markets and shield their people? >> absolutely. anybody who sits in positions of policy at a time when there is that much basic damage needs to worry about that, and the political pressures out and that are very high.

i think we have been very successful and very fortunate that not just through the 1930's, but even into the 1980's, the last time the u.s. had a pretty deep recession, we have been able to prevent pressure from translating into increased protectionism around the world. you look at the 1980's in that context, it is a good thing for the united states, but there is huge pressure out there. in the united states, it is pretty bipartisan, a unified democrats and republicans, and that is why it is so important to demonstrate not just to china that countries are playing by the same rules, because it goes to the heart of what drives a lot of the political pressure. >> fun a -- question -- final question -- you were surprised when he made news a couple of days ago that you would not serve in a second term of the

obama administration. >> generally, anybody who takes these jobs serves at the pleasure of the president. at a time when we face so much challenge, so much pressure, if the president asks you to do these things, you have to do them. when he asked me to stay, what i thought it was the right time to leave, i agreed i would stay through the balance of his term. he accepted that aspiration of mine. that is where it it is going to come out, i think. >> what are you going to do next? >> that seems like a long way away. we are living with a terribly challenging and consequential economic policy choices. we have a lot of unfinished business on the financial reform

side. a lot of a foundation-laying for better policy outcomes, things that are good for growth and investment in the united states. i feel like we have a long year of hard work. i know i.t. is a political moment in the united states, and people are skeptical about whether we can do anything. our judgment is that we still have a chance in some of these areas to make progress. >> tim geithner, pleasure to have you. >> nice to see you, fareed. >> canadian prime minister stephen harper was also at the forum in davos. he talked about the nation's economy and the upcoming g-20 summit. >> prime minister harper, i'd

kiss my great pleasure to welcome you back -- it is my great pleasure to welcome you back to davos for your second participation here. it comes months after your resounding victory in national elections. national much of the envy of many leaders in the audience and elsewhere, you managed actually to increase your standing in parliament, passing from a minority to a majority government for the next several years. can it is recognized for having abdicated the waters of the international -- having navigated the waters of the international financial crisis in an impressive matter. your leadership in this regard, together with the sound realtor in business contacts for w hich canada is so well known, have served the country very

well. prime minister, we look forward to hearing your impressions of the current state of the global economy, and in particular, the role and contributions of what many people call the canadian model can make to improve the current economic challenges facing much of the industrial world. it isn't uncommon, please welcome -- ladies and gentlemen, please welcome prime minister harper of canada. >> [applause] >> merci beaucoup. thank you for that kind introduction. i want to thank you particularly for the invitation to speak here that he extended earlier this year. more than that, professor, you have made the world economic forum an indispensable part of the global conversation on

leaders in politics, business, and civil society. in the face of continuing global economic instability, but the opportunity that this gathering provides is more valuable than ever. i know that everyone here joins me in thanking you for coming in the service of the common good, and your leadership and your vision [captioning performed by national captioning institute] [applause] my greetings to the ambassador, the governor of the bank of canada, chairman of the international stability board, the minister of international trade, and the best finance minister on the planet, jim of cflaherty. an official title, he tells me. [laughter] i am proud to see some any outstanding canadian business leaders making their presence felt in davos. i will use my time today to highlight can it get past

economic strengths and to frame the choices are -- we face -- to economict canada's strengths and to frame the crisis we face. in the difficult global environment -- it is likely to remain with us. [speaking french] "forbes" magazine rates canada and the best place in the planet for businesses to grow and create jobs. we will be among the leaders of the industrialized world over the next two years. one more tourist acolyte, of course, is that for the fourth year in a row, the world economic forum says that our banks are the sound is in the world -- soundest in the world.

canada has the lowest overall tax rate on new business and investment. our debt-to-gdp ratio remains the lowest in the g-7. while we remain concerned about the number of canadians who are still out of work, canada is one of only two g-7 countries to have recouped all the jobs lost during the global recession. more canadians are now working than before the downturn. how was this a chief? -- how was this achieved? [speaking french] we made historic investments in infrastructure, we encourage businesses to invest and help them avoid layoffs, we put substantial funding into skills training, and we extended support for workers who lost jobs. these things we did on a timely,

targeted, a temporary basis. we did not create permanent new programs for government bureaucracy. as a consequence, our deficit is now falling, our debt-to-gdp ratio has peace, and we do not need to raise taxes going forward. we did not reduce immigration or did it in to protectionism. instead, we have maintained high levels of immigration that our aging labor force of the future will require. we have continued as well to agreementsue new trade and have taken action to make canada, among the g-20 countries, the first tariff-free zone for manufacturers.

[speaking french] we have pursued these policies, ladies and gents,, once again, because our number one priority as the government is prosperity -- economic growth and job creation. now, that may sound obvious, almost a cliche. but is it really? as i look around to will, as a the particularly developed countries, and i worry, i wonder, i ask whether the accretion of economic growth, and therefore jobs, really is the number one policy priority everywhere. or is it the case that in the developed world, too many of us have become complacent about prosperity, taking wealth as a given, assuming it is somehow the natural order of things, leaving us instead to focus primarily on our services and entitlements? is it a coincidence that as the

veil falls on the financial crisis, it reveals the need is not just too much bank debt, but too much a sovereign debt? to much general willingness to have standards and benefits beyond our ability or willingness to pay for them? i don't know, but what i do know is this -- [speaking french] first, that the wealth of western economies is no more inevitable than the poverty of emerging once, and that the wealth we enjoy today has been based on an only on good gross-oriented policies and hard work done in the past. second, regardless of what direction other western nations may choose, under our

government, canada will not make the transformation necessary to sustain economic growth, job creation, and prosperity now and for the next generation. [speaking french] that further means two things -- making better economic choices now and preparing ourselves for the democratic pressures -- demographic pressures, excuse me -- that the canadian economy faces. on what we must do now, first we will, of course, continue to keep tax rates down. that is essential to our government's economic position. but we will do much more.

in the months to come, the government will undertake major transformations to position canada for growth in the future. we will continue to make the investments in science and technology necessary to sustain a modern competitive economy. we believe that canada's less than optimal results in those investments is a significant problem for our country. we recently received a report on this, and we will soon act on the problems the report identifies. we will continue to advance our trade linkages, we will pass agreements signed particularly in our own hemisphere, and we will work to conclude major deals beyond it. [speaking french] we expect to complete negotiations on a free-trade agreement this year. we will work to complete negotiations on a free-trade

agreement with india and 2013. and we will begin entry talks with the task is of a partnership --. with the trans-pacific partnership. i will be making another official visit to china very shortly. we will also continue working with the obama administration to implement a joint beyond-the- border initiative, are planned to deepen our economic and security links to our most important partner. at the same time, we will make an national priority to ensure we have the capacity to export our energy products beyond the united states, and specifically to asia. in this regard, we will soon take action to ensure that major energy and mining projects are not subject to unnecessary regulatory delays -- that is, delay merely for the

sake of delay. this conference work we are already doing and we will move forward on the canadian federation of independent business to cut the burden of red tape for entrepreneurs. we will undertake significant reform of our immigration system. we will ensure that while we respect our to manager an obligation and our family reunification objectives, we will make our economic and labor force needs the central goal of our immigration efforts in the future. as i said earlier, one of the backdrops for my concern is canada's aging population. if not addressed properly, this has the capacity to undermine canada's economic position and, for that matter, all western nations well beyond the current economic crisis. immigration does help us address that and will even more so in the future. [speaking french]

our demographics also constitute a threat to the social programs and services that canadians cherish. for this reason, we will be taking measures in the coming months not just to return to a balanced budget over the medium term, but also to ensure the sustainability of our social programs and our fiscal position over the next generation. we have already taken steps to limit the growth of our health- care spending over that period. we must do the same for our retirement income system. fortunately, the centerpiece of that system, the canada pension plan's key, is fully funded, actuarially sound, and does not need to be changed. for those elements of the system that are not funded, we will make the changes necessary to be entered sustainability for the next generation.

let me summarize, ladies and gentlemen, by saying this, that notwithstanding canada at's many advantages, we remain very concerned about the good to doing instability of the global economy for which we are very much apart. the problems afflicting europe and, for that matter, the united states, on not only challenging today, but in my judgment, threaten even greater problems in the future. [speaking french] each nation has a choice to make. western nations in particular face a choice of whether to create conditions for growth and prosperity or to risk long-term economic decline. in every decision or failure to decide, we are choosing our future right now, as we all know both from the global crises of the past few years and from past experience in our own country,

easy choices now mean fewer choices later. [speaking french] canada's choice will be with clarity and urgency. we will master our future to be a model of confidence, growth, and prosperity in the 21st century economy. thank you, ladies and gentlemen, for your kind attention. [applause] >> prime minister, you have talked about all your reforms in canada. maybe i will come back. but if i take the context, which is so important, that as a g-20

country, what, and having listened to president calderon -- [speaking french] >> major objectives which you are looking at for the meeting this year under the presidency of mexico -- what are your wishes? >> that is always a good question. as you know very well, the g-20 , despite having certain constraints, is really the only genuine forum for international governance of this global economy. i would hope that two things -- firstly, that we discuss -- we will not, at that point,

discussing the crisis in europe. i hope we have found a solution by then, and i hope it will be oriented to real economic objectives, real issues. i hope that the subjects will be too num -- won't be too numerous, the approach will be focused, and the work will coordinate the international response to the crises, and we continue to implement the campaign of action. >> when you were last year here, you propose, and i was very impressed, a fresh approach to international relations, based on the notion of enlightened serenity. i like very much of this definition. you define it as the natural extension of the enlightened self-interest, which is "less

about lofty promises and about real results, less about self interest in serenity's name, an expanded view of mutual interest in which there is no room to assist and only room to grow and prosper." if you look back, is the world moving into this direction? >> i think that through the g-20 process, it is. it is slow and in perfect, but i do think that broadly speaking, there is a realization that we are all in this boat together. i go back to the great crisis of late 2008, early 2009, when we had this torrance, this avalanche of -- flood of bad

news and prices, and we found that it was affecting all of us. the solutions have been to engage all of us. i am not suggesting for a second that countries want and don't and should pursue self-interest -- >won't and don't and shouldn't pursue self-interest, what are the choices we are making and approaches we are taking compatible with everyone else same or similar things? i think if any one of us, in particular big players, take a course of action that can only work for them, that renders the entire system that we are all part of an unstable and uncertain. i do see some signs incrementally at all of these various g-20 conferences that we're moving to that understanding. but i don't want to exaggerate. the new world is not completely at our doorstep. >> when we listen to president

calderon just half an hour ago, many people were impressed, including myself, to see how high a member -- number of people turned out by the universities, particularly in those areas dedicated to innovation. you spoke about innovation, but how do you want to enact innovation? >> there is two things. in canada, and since we came to office, we have tried to effect a bit of a shift. the reality in canada is this, that we actually have a very high levels of spending of the canadian public sector on science and technology, research and innovation. the fact of the matter is that we don't have the private level of spending that would match that, and we have not seen the

kind of private sector results and results in commercialization that we've been seeking. one of the first things we did when we announced our first signs and technology policy was putting a substantial and this is on commercialization and the encouragement of partnerships between researchers and private sector. to be frank, that initially caused pushback in the academic community, but our experience has been that the academic community acted very quickly that, and we saw the changes we want there. we have not seen the changes we want to see on the private sector side. this is, of course, our great generalization, because there are canadian companies that are cutting edge innovators, but broadly speaking, the canadian business side of the economy is not as innovative as. -- as it needs to be. we have done a report on that

and it looks at expenditure and tax policies and government structure and has given sweeping recommendations. while we don't necessarily subscribe to all the recommendations, we certainly subscribe to the diagnosis of the problem and the nature of the kind of changes that have to be made. we will be making those. i will say this -- we are not under any illusion that is a longer-term culture shift that has to happen in many sectors of the canadian economy. we are prepared to work with businesses to see that happen, because it is necessary for advanced economies in the future to continue to work hard, invest well, and make good decisions. the nature of our economy is that we have to be innovative, we have to be at the high-end of the value chain, and innovation will be critical. >> can you export -- if i call it the canadian model, and i should tell you, prime minister, you know in our competitiveness report which we publish every

year, the canadian banks rank usually as the soundest banking system. we have at seldom some many reference to a statement which we are making compared to this one. you have a kind of model. can it be exported to other countries? >> i think some aspects are more easily exported than others. let me give you a couple of examples. the one you asked, the banking system -- through the g-20, basel-3, the work we have been co-chairing with india on international financial regulatory reform, the work that mark is doing for the financial stability board, we are trying to encourage international practices and forms of regulation that looked

very canadian, that i think our strong -- are strong, prudential, comprehensive, but at the same time not excessive or punitive or attempt to micromanage institutions. that is what we are trying to do. i think we are having some success. the part of the model that is more difficult to export is the fact that the canadian financial sector has a particular structure, with the banking side and the insurance side are dominated by a relatively small number of players, and that enables comprehensive interaction of independent government regulators with the people they regulating. keeping that independence, but also the interaction and flow of information and understanding of the real world is something that would be difficult to replicate in europe writ large or in the

united states. there are limits, but broadly speaking, we can do that. another aspect of the canadian model is that i do think, and certainly developed countries we really have been for a very long time on the cutting edge of incorporating, accepting, and incorporating and benefiting from great cultural diversity. i am not sure that we have made full use of that in terms of international trade that we really should be making of it, but we certainly have for the most but created a society where cultural diversity has led to greater mutual understanding among people rather than the ghettoization of the population. that is obviously a model that is developed because of canada's unique history at practices over a long period of time. while it is essential in all parts of the world, especially

developed economies, it is obviously not something that is easily learned or exported overnight. >> prime minister, you have here in the room some of the most common canadian -- some of the most prominent canadian business leaders put i. if you had a wish for your business leaders, what would it be? >> a wish before my business leaders? well, we always call on them to support the government. [laughter] actually, canadian business has been very good about supporting in its that are helpful for the economy. -- supporting initiatives that are helpful for the economy. our biggest which with the canadian business is just a sector that is more innovative, looking broader at opportunities beyond merely our own market and that of the united states. in fairness, prof., the business leaders represented here are probably already in that

category. our work is really with the broader business community. >> so you can be proud of our business community? >> we are very proud. >> i hope they are proud of their prime minister. thank you very much. >> thank you. appreciate the time. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> the world economic forum ended yesterday. leaders from the largest 20 countries will meet in june for the g-20 summit in mexico. billed as an informal discussion of economic and financial issues. florida's republican primaries tomorrow, and mitt romney and newt gingrich are on the campaign trail there today. the former massachusetts gov. will be just east of tampa. after that rally, he will go to

the villages, a retirement community in central florida. newt gingrich is campaigning with ronald reagan's son michael this morning, wrapping up in pensacola and will fly to fort myers this afternoon. rick santorum is skipping florida altogether. he has speeches in missouri and minnesota today. ron has no campaign events planned today we will have live coverage of newt gingrich's rally at the timber -- with herman cain at about 2:00 for it meant romney's campaign rally at the villages this evening at 6:00 in eastern, live coverage of both from the campaign trail here on c-span. tomorrow, we'll bring you live coverage of the florida primary results. your calls and tweets and candidate reaction. campaign coverage will continue on saturday when nv holds caucuses next week after maine and colorado, minnesota,

missouri, arizona, and michigan. >> for more resources in the presidential race, use our campaign 2012 recent --w website. read the latest. >> from the hispanic edition of networks inspiring action conference in miami, look at issues facing a presidential candidates. we begin with jobs in the economy. the hispanic leadership network is an advocacy action network. this discussion is about an hour. >> and just a minute, we will begin our first panel discussion. before we do that, i want to encourage you to visit the hispanic leadership networks facebook page. before i do that, i want to ask pablo chavez from google, we

need to. please, come backstage. i apologize. if you have not done so already, please "like" our facebook page could take a moment to look through our photos from last night and go ahead and tag yourself so your friends can see pictures of you during the debate watching party last night and can be really jealous. i am going to go ahead and introduce our distinguished panel. four are hispanic community, as for the rest of the nation, these are tough economic times. among latinos, the unemployment rate is over 11% higher than the national average up 8.5%. the unemployment rate in our community is over 11% higher

than the national average of 8.5%. that is unacceptable. for young hispanic adults, the situation is even more precarious. with a staggering 35% unemployment rate, they are hurting more than any other group. our first panel, industries driving american economy, the engine for success, features individuals who know what it takes to have an environment conducive to job creation in america. please, join me in welcoming our distinguished panel of experts. i am going to start with the illustrious -- stay right there. i will start with the illustrious cari dominguez. if corporate share of the u.s. equal employment opportunity commission eeoc.

she served for both president bush 41 and 43. welcome. [applause] next come pablo chavez is director of public policy for google. in that capacity, he leads the company's u.s. federal policy team. he advises, develops, and advocates for a range of public issues including privacy, content regulation, and online free expression. welcome. it is great to have you here. [applause] i said it was a distinguished panel, and it continues with the next lady i am presenting. the 24 to a secretary of labor. she is the first woman, american

women of asian descent to be appointed to the president's cabinet and our nation's history. having served from 2001-2009, she is the longest tenured secretary of labor since world war ii. as the first u.s. secretary of labor and the tone for centric, she focused on improving the competitiveness of america's work force a restructuring department programs to empower workers and modernizing regulations to respond to realities of our 21st century workplace. a round of applause for the hon. elaine chou. [applause] you have lights and everything. -- flags and everything.

it is my privilege to introduce someone that he and i used to sit on the board to gather in washington when he was a dozen it for puerto rico and d.c., great to welcome him to my home town. his top priority has been to revitalize the puerto rican economy by putting the fiscal house in order and pushing for a series of major reforms instead of the art infrastructure projects that supports sustained economic growth on the island. welcome to miami. i should say he is also currently the president of the council of state government and chairman of the southern governors' association. very impressive. thank you for being here. [applause] our panel discussions today will be moderated by our very own and the very great, the guy is just

a wonderful human being, our very own doug holtz egan. he has a distinguished record. he currently serves as president of the american action forum. his former chief economist of the president's council of economic advisers and was the sixth director of the nonpartisan congressional budget office. which provides budgetary and policy analysis to the u.s. congress. we are incredibly lucky to have him and called him a friend. take it away. [applause] >> thank you very much for coming, thank you for the chance to be here today and the privilege of sitting with such an illustrious panel. let me take the moderator's perot to to say two things. the first is, for me, this is just the most fun i could ever

have. i was raised in western pennsylvania by scotch irish parents, which means i am dull. [laughter] i am a ph.d. economist, which means i am boring. [laughter] this crowd is never dull or boring. the hispanic leadership network is the most enjoyable project of ever had the privilege to work on, and this conference is simply a spectacular testament. i'm delighted to be here. thank you. [applause] the second thing is the staff dragooned me last reducing twitter. i know you probably think i am hip and contemporary, but it turns out i am not. then dragooned me into encouraging you to tweet your share about -- your feelings about the conference.

use the hash tag hln12. if you really want to be and interest, you can tweet to me. >> very well done. >> last that we heard about the importance of the rule of law, there's also the role of panel and i will enforce it. we want a good conversation about the outlook of the u.s. economy, important driving sectors. we will go through for opening thoughts on this topic. we'll have a conversation for a few minutes. with about 20 minutes left, we will open it up to questions from the audience and those that come in over twitter, we will take a few of those as well. if you're watching normally, we in that way. without further ado, i am delighted to open with governor fortuño. >> it is an honor to be here.

i want to thank the hispanic leadership north for inviting me and allowing me to share with this excellent group. i was able to join the first conference in miami and i'm glad i could make it again. terry briefly, i am convinced the basic economy is ready to go. in order to do that, we need to accomplish a number of things. first our educational system. we have to get our act together. as you know for hispanics, it is key. in puerto rico, we are keen and making sure we emphasize science, math, being fully bilingual, being able to utilize tools. that is key. in our case, manufacturing is

extremely important, but i'm understand that will be from one sector to another of the country. however, regardless of the industry, if we do not get our act together, if our fiscal situation continues the way it is today, we will not be competitive. simply put. if our tax policy is not changed dramatically, we will not be competitive. to me, that is key in this discussion because we can talk about what the industry's future may look like if we do not have the proper basis for which to launch that economy, we will not be able to compete. look at europe right now. i believe the fundamentals must be there and they are not there right now. with that, i will stick to your rule. i am sure we will have a lively panel >> thank you, the

governor. >> i am just delighted to be here with the governor. we have for together in the past and i think the world of what he is doing. how soon we forget there is some relevancy to looking at history. from 2001 to 2009, our country experienced an unemployment rate on average 5.2%. it just saddens me so much that we are asked to get used to a new normal of unemployment, which is over 8%. when i was in office, the average unemployment rate for our country was 5.2%. at that time, we looked toward your with askance. because they have these really high unemployment rates of over 8%. well, we find ourselves in a similar situation. in august of this past year,

2011, there was no job creation in the economy. last month, it was reported even amidst all of the holiday season, retail trade was still weak. 200,000 jobs were created. that was cause for great celebration. while 200,000 new jobs created every month is nearly necessarily to keep pace with their population growth. we forget two-thirds of the net new jobs being created these days are greeted by small- business is. i think the hispanic american community, especially the young people, understands that. as was mentioned by our wonderful emcee, the current unemployment rate is 8.5%. among hispanic population, well over 11%. over 24% for young hispanic americans.

if we took in people who wanted to work full time but cannot find jobs, the marginal an unemployment rate in our country is really 16%. i have a colleague who used to work with me at the department of labor and colorado conway. he started a new group called generation opportunity. it is a new non-profit, non- partisan organization dedicated to educating, engaging, and mobilizing young americans between the ages of 18 and 29. they just did a survey of young hispanic americans. listen to what they say. young hispanic americans ages 18 to 29 years old want to see less government interference, lower taxes on business profits, reduce federal spending in general, specifically for for more cuts in federal spending over raising new taxes to get the economy back on track. because they know that we cannot

tax our way to prosperity. i think we have a lot to learn from these hispanic young people. [applause] >> thank you. >> first of all, thank you for inviting me to join. i'm in the awkward position of having been left a little speechless by senator rubio's speech. as a first-generation american, it was an amazing talk. it really struck a chord. i will move on, though. let me go over a little bit on the theme of opportunity and optimism that he was touching on. i work in the internet space and have done so for about 15 years. it remains one of the very bright spots in the economy. the secretary is correct about the numbers.

this is an industry that is demonstrating a tremendous amount of course power could then be given a couple of examples. -- >> powepower. let me give you a couple of examples. over the last couple of years, we have started to see some data, in terms of economic growth, the internet in the u.s. committed about 15% of gdp growth over the last five years. that is a significant price spot in the economy and something we firmly believe we should be building upon. just with a small picture from google, the chief economist running the numbers about our own companies' economic outlook. the numbers are available for the last year, we generated about $64 billion in economic activity in the u.s. that is money being generated

for business partners. in florida alone, that number was about $3.6 billion. 130,000 partners here in this state. it is a tremendous success story. google is a small picture of a much bigger, much brighter picture that i think this industry is drawn. a second quick point on job creation, again, the figures are very positive. about 3.1 million american jobs are based today on the advertising support of the internet but a small sliver of the broader picture. when you think about it, their jobs that did not exist 10 or 15 years ago. internet advertising. brand new. facebook has released numbers about the number of apps developed for its platform. 130,000 to 180,000 jobs depend on the facebook platform. that is fantastic news. those who down whether the

internet has accretive impact on jobs or deleted in fact, a new study indicates for every job from the internet, 2.6 art critic -- for every job lost to the internet, 2.6 are created. bil'in on your point, governor, about information. thank you. >> wonderful. >> thank you. i want to add my thanks to the hispanic leadership network. what an awesome event we're having. i felt privileged to be part of this panel of impressive leaders. and to be was a man like minded hispanics and fellow believers in what makes our country so great, which is freedom to rise

and far as high as our talents and abilities allow. [applause] the world of work is changing. we are seeing all kinds of work force consolidation. betweeneing huge gaps supply and demand. i think hispanics have an important role to fill with respect to that we know approximately 15% of our u.s. population is made up of hispanics. this population is forecasted to grow as 7% over the next three years, compared to the national growth which is only going to be 2%. two% national, 7% hispanic. that means a lot of the growth will be fuelled by the hispanic population.

we have to be prepared, ready to face the challenge. unfortunately, 38% of our hispanics have less than a high- school diploma compared to 10% of non-hispanics and whites. we have 19% of hispanics with college degrees compared to 39% of white, non-hispanics. we know there is direct relationship between being prepared in the unemployment rate. secretary chao mention the high unemployment rate. hispanics without a high-school degree, let's say if the national unemployment rate is 8.5%, hispanics with less than a high-school degree have a 13% unemployment rate we have to address that. we have to fix that. we also know education leads to better pay and better jobs. a couple of statistics i am

fortunate to serve on the board of manpower, a global corporation the places about 3.5 million workers annually all over the world. they have, i believe, 400,000 companies they work with. this is what they have to say. they have their fingers on the pulse of employment and sectors that are important but in terms of industry trends, we see a growth in the health and education sectors. in the professional and business sectors. a downturn in manufacturing. we see stagnant growth and agriculture, utilities, and financial-services. according to manpower, the hardest jobs to fill, the number one hardest job to fill in the united states -- does anyone know what it is? field trades. we cannot get enough individuals in the field trades profession. this is unfortunate because skilled trades leads to business ownership.

if you have an electrician and she cannot get enough workers, so she hires another electrician. then she has a van with a small business. small business is the engine that drives our economy. we have to make sure that we really change the mindset and the positive attitude about the value of skilled trades in our profession. we need to get people redirected in those areas. we also have shortages and occupations like sales representatives, engineers, i t staff, accounting, teachers, a machine operators. where are hispanics concentrated? unfortunately, farming, construction, production, and services. professional occupations. we have some work to do.

we have to make sure we redirect our hispanic talent in those areas where we have growth opportunities, that we tutor them, coach, and guide them so they can also enter the economic benefits that this wonderful nation provides. i look forward to interacting with you. thank you. [applause] >> one of the objectives is to build further on these trends in manpower and industries. first, i think it is worth noting that we're in a situation where growth is abysmal in the u.s., and it is not an unprecedented even for country have dual problems of that growth and big debt. that is the u.s. problem. it has happened before. if we look at the lessons of history, the best solution to that problem is to keep taxes low and reform them. the pro-growth, cut spending in order to bring down the debt and deficit, and this constitutes a

softball there's a person on this panel who has done that in puerto rico. if you expect a couple of minutes talking about that. [applause] >> what we have accomplished in puerto rico is doable on the national level. when i came into office three years ago, our budget deficit was the worst in the country. it was 44% of revenues. it was so bad that i had to fly up to new york to meet with agencies but not everyone in america knows what they do after a downgrade. -- now everyone in america knows what they do after a downgrade. we should have been america's greece. when i was sworn in, we realized we did not have enough money to meet our first peril. we had to rush to get a loan from the legislature. my wife asked me if we could ask for a recount. [laughter] what did we do?

we cut expenses. not washington talk, if you know, when you cut expenses in washington, it is you cut back the way everyone does at home or in your business. we cut expenses by 20%. it was not easy. cutting expenses allowed us to cut taxes our interior revenue code is similar to the federal code in the territories. what we did was -- is very doable. my predecessors, not only had they spent too much, but they had raised rates. the corporate tax rate was 41%. today, it is 30%. in two years, it will be 25%. [applause]

believe it or not, they created all the different tax brackets at the corporate level and we made it a much simpler and flatter system, lower rates. we streamlined the process, contrary to what is going on in washington nowadays. we used to be forced to go to 20 different agencies to obtain permits for projects. nowadays, you just get online and give your permit. >> wow. [applause] >> it has not been easy. i will tell you a few numbers. some statistics will show you what can be done in just three years. our state budget deficit, which was 44% of revenues is now 6%. we work 51 of the 50 states and

puerto rico in terms of our size of budget deficit, and today we're 15. we got our first reading increase in 27 years. [applause] -- we got our first reading increase in 27 years. home sales are up. i was reading the journal this morning. for 2011, they are down nationally. wholesales are up by 35% for new homes in puerto rican for 2011, and you say, how could that happen? tax policy works. if you buy a home in puerto rico, first of all, you not pay any property taxes for five years. no transfer fee. notop of that, there'll be federal gains tax is the day you sell your home or business. [applause]

properties are selling for the first time in a long, long time. car sales are up. retail sales are up. for the first time in six years, we are creating jobs print net gain jobs. our employment has been coming down after a long time, which it was unacceptably high. it is still high, but it has been high. we finally have the fundamentals to grow. we just got the numbers yesterday for our exports. it is the highest number in our history for 2011 as well. [applause] we are dependent 7% on foreign oil to produce our energy. -- 70% reliant on foreign oil. but we are on the right track read only wish washington

would take a few chapters from our boat. >> the theme is, how can hispanics succeed christopher another is hispanic leadership. i cannot imagine a better condition. >> it takes courage. i was not planning on running for reelection. i was planning on doing the right thing, which is not easy. >> well done. congratulations. >> one of the things that comes up all the time is, what can we do right now to improve the labour market performance, to improve the prospects for hispanic communities in particular? given your experience when you look at what is going on, what are the two or three things you would recommend? >> i think one of the biggest problems with our economy is lack of economic growth and job creation. you can basically tell people, yet to go and get a job and hear

all the promising industries, but the problems we are not seeing job creation. the average unemployment rate, the average unemployment period now is over two and half years. 44% of our unemployed, the 14 million from an unemployed, have been unemployed for longer than what is traditionally defined as long-term unemployed. do you know what washington is doing? they are redefining what it means to be long-term unemployed. [laughter] i think the governor has shown by practical example of what needs to be done. he knows it -- it is really very simple. you have to keep your taxes low, to rid of the excess, unnecessary regulations, and then make sure we're spending within our means. those are very tough issues.

a tax increase is definitely not the right policy. our economy cannot take an increase in taxes. it will only hurt our economy. [applause] >> if we got that right, your opening remarks suggest with a mismatch between where people are right now and where the growth is going to be. how do we bridge that divide? >> i think we need to redirect and make sure we provide a framing and the opportunity. we talked about small businesses. there's so much red tape to try to get access to capital. all of these things are huge business incentives. for the first time in history carnation, our credit rating has been dropped. employers? employers are saying, we're just waiting for different leadership before we start hiring again. so we're going to try to help them do that next election. [laughter] >> the governor mentioned this

well, the governor says weary and a knowledge economy. the -- says we are in a knowledge economy. of the jobs, the 200,000 jobs being created, the majority of net new jobs are higher skilled jobs. 20 years ago, a custodian at your school used to wear a heavy pelt and of something was wrong air-conditioning or the heating system, he would just -- i do not mean to insult them. he would take a tool and not something and it would be ok. nowadays, if you look at a custodian or with a call now stationary engineers, they do not have a built anymore. they have one little gadget, a computer. the air-conditioning of our facilities, the heating, it is all computerized. it speaks to what pablo was talking about, technology.

skilled trade is an area where we need workers. you did have information technology knowledge. all of our systems are computer- controlled. you need to know how to use computers. i think one of the first things we need to do is let people know we're in a higher skilled economy, in the old jobs of the past, even they're being moved in to hire skilled categories. we have to emphasize and persuade our young people to stay in school, get as much education and training as they can to position themselves to get these good paying future jobs, hopefully, that will develop sen. >> i just want to add, i think that is the key. when i look at the gap between the demands and the supply, the differences the technology that she is talking about. we depositions -- we do not have the -- the high unemployment

rate we're dealing with, a high percentage are less than high school degree because they do not have the knowledge. we have to redirect our people, our nation's workers into those areas. >> you in many ways are the bright spot of the panel. how do you think about the growth opportunities, what your products provide in the way of opportunities especially for hispanic communities and the skill sets? >> let me make one broader point and then respond more specifically to your question. all of the points that my fellow panelists are making are absolutely right on. if you look more broadly throughout the hemisphere, you realize the reduction of regulation, reduction of taxes and red tape and so forth, they

are so important. when you look at economies like mexico, there is a lot of entrepreneurial spirit. the red tape and a lack of access to capital, the venture capital, is really holding down the economy. argentina is another critic sample of a lot of entrepreneurship, but no access to capital. what we have here in this country is the foundational element, to your earlier point, we need to continue building upon. in terms of direct things we can do right now, encourage job creation and more entrepreneurs, two things to point out but one, a study came out about a year ago that indicates the job creation in the united states is not just small his description, but job creation by new small- business start-ups. -- is not just small

businesses, but job creation by new small business start-ups. the point about information technology and the internet, statistics show even a standard brick and mortar company, everyone who is using the internet is increasing the revenue 2x, employment 2x, so, again, i think everybody is talking about the same thing. we need to encourage the zero entrepreneurs, encourage the use of technology. -- we need to encourage the entrepreneurs, encourage the use of technology. it would achieve tremendous results but >> in the spirit of using technology, i have been given technology. with a question from twitter the says, what ideas to the panelists have to increase

public, private investment and labour training? >> could i answer that? we are incredibly compassionate nation. when we talked about the skills gap, there many attempts by the government and private sector to address increasing skills level of the workforce. the u.s. public taxpayers, you are already finding a $7 billion -- in washington, it is not such a big number -- [laughter] $7 billion to $9 billion, and i could explain why, but it is not worth it, the government engages in job training. there are over 1300 what is called local one-stop centers dispersed throughout our communities to help people with employment, to get jobs, and to provide training, whatever. these are good people who man is

one-stop career centers. there many in puerto rico. we must do more. we must meet -- but the trend in the government needs, relevant. the private sector does a lot of training already. the government does some. it is a good partnership. i would challenge the government run turning centers to provide more relevant training and to listen to the job creators, the employers within the community as to what types of training programs are best for that community. it does not make sense that a train program to reduce the say 1000 hairdressers for a community that only needs 13. -- it does not make sense for a training program for less a 1000 hairdressers for community that only needs 13. then they can get real jobs when they graduate from these

programs. >> this comes up again and again. there was a panel of the large foreign based manufacturers, the mercedes benz, folks were going to invest in siemens. the biggest complaint about building a plant in the u.s. is we did not have the skilled trade. how do we address that? >> i would say it starts k-12. that is a challenge i am facing now at the state level. if i may say so, we have too many lawyers. really. [applause] we a people trained in the wrong skills. we need more scientists. we need more technical people. we need more engineers. we have a lack of engineers, not

just a puerto rico, but across america. that is what we need to do, but we must commence k-12. that is what we're trying to do right now. we call it schools for the 21st century. it involves the use of technology. it entices the students to stay in school. and also to like math and science. >> i want to add, i think the public/private partnerships are key, contrary to what washington says, the private sector's are creating the jobs. the government does not create jobs. we need input from the private sector. secondly, there is a bias against skilled trade it is an honorable and important profession, so lot of times families will direct their children to college and in of dropping out because they really

want to be a welder or electrician or carpenter. we have to encourage a positive attitude about individuals with honorable work. we have to promote that. >> i think we will open up questions to the audience. raise your hand and someone will bring you a microphone. please, identify yourself and ask your question in the form of a question. >> get morning. manama's elizabeth. first of all, congratulations gov. fortuño. you are my hero. i am from the center of the island where you very well know we have a serious problem with unemployment, and our youth lived on the allen. we have a lot of land not being used. i'd like to see the land used with a partnership with florida that has citrus many times the

citrus and florida it is completely lost. we can make a partnership to make sure that part of economic empowerment can be a sister /brother kind of marriage we can have. we have to have the line open between -- and tampa. we would be bringing in thousands of new jobs. the economy in central florida would be in medicine. puerto rico would be incredible. will you help us to do that? >> i strongly believe in agro- business. we have seen a trend recently from the and regeneration getting into agro-business. and this makes a lot of sense. port facility and the southern part of puerto rico. it makes all the sense in the world that we should be fully

connected with florida [applause] . th>> question? we're going to give you a microphone. thank you. >> can morning. i want to address something that mr. mendes said. there is an attitude about skilled labor. you cannot claim a parent for one in their child to go to college, for aspiring for greater things. but there are plenty of kids that are not cut out for school, even at high school level. why not build up technical schools at that level so they can graduate from a trade school with a license so they can work in their area of interest right from the get go, instead of having high school dropouts then try to apply for jobs that may not be trained to do? but my real question was for mr. chavez. would you please address our

government recent attempt to sensor the internet considering how important internet is in job creation? thank you >> certainly. i think that as a reference maybe to the stuck online piracy act. it is somewhat controversial. [laughter] look, i agree with all four of the republican presidential candidates that that particular bill, though well intended, had elizabeth of an overreach. and the problem -- had a little bit of an overreach. and the problem is, the internet is american and some new ways. it was developed here. our businesses are the model for the world. the chinese, iranians, others look at what we're doing c and doing cues from us. the moment we start censoring the internet here, all those

people will start doing it, even worse than they are doing it today. with the personal experience with china, i will say that is not the environment you want to operate in. it is not morally or ethically correct. we agree piracy is a big problem, and we're very committed to finding the right solution. this particular bill was not the right way to go because of the censorship elements. >> i was going to go back to another point. were you going to wrap up? >> no, i was quite ask you to go back to another point. [laughter] >> this group is really non- partisan. talk about job creation, i think it was really disappointing to hear from the white house that the president had decided to veto the keystone pipeline issue. [applause]

i used to work with labor organizations. major swap of the labor wanted that project because it would of created hundreds of thousands of jobs. not only jobs, but skilled trades jobs as well. it was disappointing to see how politics can in and the president align himself -- we're all environmentalist. we all care about the environment. this is such a large project that could of been so much to promote our economy and jobs. it was very disappointing. >> we will take a question here and then wrapped up. >> thank you. as a canadian originally, i think canada is pretty disappointed the president vetoed that as well. this is a comet/question for governor fortuño. we're developing solar power projects on the island a puerto

rico. i can tell you in my 2 plus years working on the island of new york administration, the island has done a 180 as far -- working on the island under your administration, the island has done a 180. when i first interactive with the puerto rican electric power authority, they were frankly allergic paying more than a penny more. ofre talking about hundreds megawatts would be coming on line in solar and wind and waste energy, landfill gas. the legislation passed and approved had a huge impact on the mind set. i think -- it is heartening to see developers from not just other parts of the u.s., but other parts of the world, coming to the island. if only there were a microcosm of what would happen in the rest of the u.s. recede the opposite trend and there's outsourcing and elsewhere. i think if those trends continue, great for puerto rican

and those places that get it, but sad for the rest of the country. >> thank you. when you live on an island, you cannot connect to the national grid. you must act. being 70% dependent on foreign oil makes no sense, period. looking at what is happening in the strait of hormuz, we are crossing our fingers. in a fiscally responsible way we're looking to promote other sources of energy that will create actually the climate, a business climate in term mentioning. if i may, and other areas like toll roads, airports, schools, there is plenty of capital their that is waiting to be tapped. it makes no sense for us to try to build everything. for all of the engine structure -- the infrastructure needed to

run your state or city. i believe we have the most aggressive and public/private partnership in the country. we just closed the largest deal in six years in the country with the toll roads. it is a 40-year concession. in about two or three months, at the main airport, san with correctional facilities later this year. that applies to the energy production. we're trying to do it in a fiscally responsible way, but in a way creating thousands of jobs. thank you. [applause] >> i have been negotiating with management and bought us some mo first, and a rapid fire around, if you could do one thing in terms of federal policy to improve the outlook for jobs in hispanic communities, what would

it be? >> i would lower taxes. [applause] >> reduce the excess of percolations. since this administration began, the level of what is called significant role makings have increased more than 40%. that is not all rulemaking or regulation, just significant role makings over $100 billion and up critics shameless self- promotion. look at the regulation button. you'll see a catalog of the cost of regulations in recent history. it is staggering. >> for latinos and other americans, we think expanding trade and having a 20% treat trade agenda that includes free and open internet that is -- trade agenda that includes free and open internet. it would be really, really great for the economy and for latinos

and many others. >> i would encourage a balanced budget and try to reduce the deficit. i think that would give employers a sense of confidence and comfort that we just don't have. >> wonderful. we have time for more questions. right here. >> i am from oregon. i came out here to help with this election. i have children with disabilities that are of puerto rican heritage. one of my biggest peeves is when i was in school, a disabilities as well. they were telling me i should do english only emerson. we spend billions of dollars and cultural education at the expense of cutting speech pathology and special ed out of the budget. with billions of dollars for the state of oregon good to special

education, but none went to the kids. if we want a good work force, why would it be okay to fail my children that are legal citizens of this country at the expense of promoting culture for kids that are coming into the country illegally? therefore, leaving them behind in esl as well. there are some better sitting in the classroom that are getting no services at the expense of others getting help and all subjects. wenchow that needs the dish to help is not receiving it. as funding becomes an issue, i think of leaving a lot of our hispanic community behind whether they are illegal immigrants are that there are american citizens. i would like to see some of these issues being addressed. it is important to me. without the early help, i would not be here today. of a son that is the first latino american and hundreds of years and my family that is ever got a college degree.

i am so proud of that. this is not just the first generation minority, and it had many years of failure in this country. my son is the fourth generation a failure in this country, a young person with the disabilities. if you're really advocates for the latino community, how are we going to help our latinos when there's less funding than ever before in education that is going into other areas and not the kids in the schools? >> there is a genuine question of how we set priorities. we have an enormous deficit and debt, and we have needs. >> she brings a valid point. i will tell you how i am doing it. all governors are executives. they have to make choices. it is not always easy to make choices. in education, special education in puerto rico, we have failed for 30 years our children.

under both parties, it was wish to litigate against the parents and the children and not grant what should have been done. our team decided to do otherwise. it is a choice. you call -- cut elsewhere and devote resources to this. at the same time we're cutting our budget by 20%, reducing our payroll, i have added about 1500 additional employees just in special education. there are strict always been following up what they are doing. we're adding resources for the first time in 20 years, sporting events are open to special education kids and so on and so forth. it is a matter of choice of where are your priorities. >> i want to emphasize something.

cutting the budget by 20%. we're talking about over $700 billion a year. an enormous accomplishment. [applause] a biasedhere's been toward the front because i am blind by the light. let's go back there. >> this should be our last question. >> my name is bob. my question is for secretary chao. my grandfather came to this country from spain, left the depression as 17 years old to look for new horizons in this country. he built the largest hispanic food company in this nation, and did it without one single entitlement or occupying wall street. [laughter] [applause]

he built the business in 1936 in new york. my question is, and i'm concerned about the health of our nation and see ourselves going and a similar way to what is happening in europe. how we build jobs when we have a department of labor that works against businesses, makes it more difficult for us to create jobs and to be successful in this country? what is your suggestion to our candidates on how to improve our system, how to make it better? >> you get all the easy ones. [laughter] >> i love your story because it is a quintessential american story. senator rubio talked about it, the governor talked about it, the panel has talked about this is the land of opportunity. somehow there are people who believe we cannot get a fair shake in life if we look different or come from a

different background read there is nothing further from the truth. i have the story myself. i came as an 8-year-old immigrant. i did not speak english. i learned. i'm very concerned about what is happening not only in the labor department, but the administration. the department of labour represented one ever% of the work force when we were in office. -- the labor department represented 100% of the work force when we were in office. this seems to only represent 12%. only 7% of the workforce that is unionized in the private sector. the amount of regulation that is coming out of this administration not only in the labor department, is very anti- employer. they believe if you're making money, if you're an employer, you are up to no good. you have exploited their workers. you get up every morning and exploit workers. i think that is so wrong headed.

i think we need to let people know about these actions. you have to go on the american action form. the regulations it ever since a workplace in america. big and small. when you go down the list, you'll be amazed at what regulations touch upon your life. you'll find regulations in the energy department conflict with those from delivered apartment which conflicts with others. if you're a good, honest person tried to raise your family, take care of your children, you cannot meet all these regulations. many times, it is confusing and a conflict with one another. [applause] my last words, the have consequences. i want to point out my former colleagues in the front row, now vice chairman of citibank. [applause]

>> with that, final comments from the panelists. >> i just want to echo what everyone has said. i think employers are on the silence just waiting to see what is going to happen. we need to help them and get someone elected that will deal with the issues we have talked about. [applause] >> i work in an exceptional sector than has are really represents an exceptional country. we of such great opportunities to keep building on this, whether you work on the internet, technology or not, this is a wonderful, wonderful country to really build a future, build opportunities, and it is a great pleasure to be a part of this in delivering that message. thank you. [applause] >> i want to