progressivism is not new. the idea of a small elite people ruling everybody else and parsing out little garbage i phones and transportation to keep them happy so they keep them in power is ancient and goes back to the romans and predates the romans and empires and shaws and all this other stuff. limited government and large people. large individual people. so i don't call them liberals anymore because they're not. i just don't call them liberals. they're not. why are you conservative they'll say to me? i'll say because my commitment to diversity. you republicans with diversity. no no, no. how can you be the party of diversity. look at us. african-americans for obama and asians for obama and women for obama. lochness monsters for obama and little website in a place to

donate. we're the party of diversity and i say no, you're not. no, you're not. you're the party of tribes. you're the party of interest groups. you're the party of one part of america set against another part of america and the party that says if you don't tow the line for abortion we won't be your friend. when i say i'm in favor of the diversity i'm talking about real diversity. nobody in this room agrees on everything. when you get down to brass tax, every single one of us is a political party of 1st the diversity that i celebrate as a con conservative is the diversity of individual person and that's what real diversity. i don't think if a black person disagrees about spending he's not black anymore. if a woman is against an abortion she's an woman anymore. i'm not the person who is telling you your entire identity as human being, forget about

your political identity is depends on what put you in power. i believe that people should disagree on everything. forget unity. it's about disagreement and argument. you are a collectivist. we can use words like republican and democrat and conservative and liberal until the cows come home. if we're talking about abortion let's not say pro life or pro choice. these are advertising terms. these are terms that we use to wrap our idea in advertising so if i'm pro life that means you must be pro death. if i'm pro choice that means you're pro slavery. let's talk about abortion in a way that makes sense. are you pro abortion or anti-abortion? it's the procedure, so let's just speak on honestly about what we're talking about and get rid of these advertising terms. so i don't say republican and

democrat or liberal or con serve active. i say are you an individualist or collectivist. if you think we have to pay for everybody's health kay that's collectivism. i believe we should be responsible for our own needs with assistance for a limited periods of time but we have responsibility to do for our selz. that's my position. when you get down to this sort of thing we get into positions of real clarity. because i'll say, for example, i am 100% in favor of free length care being given to everyone. 100%. what kind of a jerk would i have to be to deny people free healthcare? what kind of a monster would i have to be to deny people free healthcare? i'd have to a republican conservative monster to be mean

enough. i'm 100% of free healthcare to everybody. the problem is healthcare isn't free. if it were free i'd be in favor of giving it to everybody, but it's not. it costs money. it costs a lot of money. cardiac surgery is not free. when you're talking about four of the most experienced highly educated people in the world surrounded by a team of specialists and enough equipment to buy an entire village anywhere else in the world this is not only not free and this is very expensive. since it's not free why don't we talk about who is going to pay for it and once we talk about it we are no longer fighting on their grounds. now we're fighting on their grounds. now we are talking about what is most efficient way and most responsive way and what is the value of competition applied to health care because we see what happens with competition applied to electronics and now since we're not talking about free healthcare anymore because there is no such thing as free healthcare now we'll win the

argument because now the question isn't about whether it's free or not, the argument is about what's the best way to deliver it but we don't get there until we say to them if it were free of course i'd be in favor of giving it to people. if you can print cadillacs and no cost for raw materials and labor and energy and nothing, of course i'd be in favor of everybody having a cadillac. of course i would be. but they can't so you can't. so let's talk about what we actually can do. and when you get people out of those trenches you start to win arguments because cadillacs aren't free. somebody's going have to pay for them. and somebody's gonna have to pay for healthcare which means some people have to take money from some people and give it to somebody else and now we have the core of the argument and that we can win. because we didn't walk into their mine field. there is no free healthcare.

i'd like to be able to fly through the room too. that would be lovely. i'm in favor of anyone who can do it, do it. but if you can't, you have to deal with the fact that we have to walk stkpaoeuplzometimes and now we're getting down to the brass tax. one final thing i think i'll say before i close and that is this. one thing you have to understand about the left the left has one krur ensy. they don't have history because the history of collectivism is history of between 100 and 200 million people killed by their own big governments. people call us nazis. they call us the small government gun control -- sorry, the small government, they call us nazis. it it basically means national socialist german workers party.

you can't spell it without saying that. it's a big state solution that killed 12 million people at least. you have the soviet union which was called the union of socialists. the chinese communist starved 50 million people to death for their ideology. and 7 to 10 in cambodia and all the people who castro killed and you got between 100 and 200 million actual people who have died because of collectivism and you don't get to say that was a bad guy and didn't do did right.

how many hundred million people do we have to kill before you get it right. maybe the problem isn't they do it right. maybe the problem if you believe that certain people should have absolute power over the collective it's going to automatically bring the worst most brutal and most violent murderous people to the top. how many people will he have to kill before we realize maybe this isn't the best idea after all? the third rail of american politics and i'm going right there is this race issue. this idea that we're race skpeuft republicans and conservatives are racists. this entire population of black americans for four generations has been enslaved you don't have to work except we want you to work for one hour every two years. that's all we want. crap food and crap transportation and crap cell phones and all we want is one hour's work every two years to keep us in power.

let's do a little history. they don't like history. after the civil war was over, which was launched by republicans and republican party was founded to eliminate slavery in america and the democrat candidate in both 1860 and 1864 said why don't we call civil war a draw. we'll see it never happened. all those protestors turns though hoses on the people, the people who were the governers were democrats. they were democrats. all of them were democrats. the jim crow laws were written by democrats. but let's get down to brass tax about race in america. at the turn of the 1900's, the previous century there was a gigantic debate and enormous debate about the future of black americans in this country and it was headed by two people.

d.b. d.b.. we should demand from them a series of economic benefits and they would be distributed by the talented ten and the educated tenth black population that would distribute to the rest of the black population. we would demand it through threats and all these things. the tenth, the smart tenth would give it to the rest of the black population. on the other side was booker t. washington. he said no. we have to go back to the people we used to for and we have to be farmers because we have to develop our own resources and be farmers so that our sons can be mechanics and their sons can be doctors. we don't have a right to ask for or demand respect. we'll earn respect. and booker t. washington at his tuskegee institute produced g.p.

a.'s of blacks with a higher tess test scores. they're the best fighter pie lots of the war and never lost a bomber because he realized the way to eliminate racism and prejudice is not through demands but through excellence and through the unassailable excellence of their performance. that's the america we could have had and should have had and deserve to have. it was the america one of the greatest americans we ever had. booker t. washington who said if we become victims we'll stay victims. we are their betters. we will enter the society as he quills&america made a choice and we have it front of us today. i don't want to hear about republicans are racist. we believe that black americans should have the same right as any other individual in this

country. the right to determine your own destiny and be a person who determines the course of his own life through his own actions, his or her own ability to work or not work and not just sit there for the rest of your life and wait for the government to send you a check so that you can just be a piece of wood that floats down a river. that's the choice that was made in this country and that's the choice we're facing today and i will not hear it. i will not hear it. that is the racism, the racism of the left that looks at black americans as the voting plantation. i won't hear it. [applause] >> i know my history. i know what booker t. washington was saying and i saw it work. i saw his test scores and out of wedlock rates and fighter pilots in world war ii. i won't hear it. and if you take away their unearned moral superiority all they have evidence policies and that is murder and failure.

it's over. so, let me close with this, we have to get in this fight, we have to make movies. we have to give people something they can connect to. young people have to see pictures and movies where the good guy has our values. it's just a good guy who has our values. it's got to be galling for the left. matt damon makes his living by shooting guns at people. has got to be annoying for them. matt damon is a leftist who says things like this, i'm a movie star. i'm very rich. i think we should raise taxes on the american people. i'm going to get hit worse of everybody. wow, matt, you are an incredibly spiritually magnificent noble man. however you unfortunately match, i work in show business as welt. let me just point out, first of all if you go home with a $7 million paycheck instead of nine that's the kind of sacrifice i could find a way to

live with. that's number one. number two, i know and you know they don't know but we know that when mgm makes a movie starring matt damon they don't write a check directly to you, write a check to the order of m.d. productions $9 million and every single part of your life is owned by the production company. your production company writes a check that is enough to write a pack of gum you and get paid the minimum amount because all of it is tax free and at the end of the day you and the rest of you limousine liberals do the same thing that the knuckle dragging conservatives what is the least i can pay and not break the law. you can't tell me you're a better person than me by being the kind of hypocrite that does everything we do and still wants to wear this badge of

magnificence. i'm the person who suffers the most. raise taxes on everybody. project headstart is being under funded. if you really like them, why don't you write them a check for $9 million. why don't you write them a check. they'll take the money. why don't you write the check. why are you making a gun put to the head of everybody else in the audience and country making them pay for it. why don't you just write a check. these people won't have a college education fund or not going to build that extension to that house. they don't get to go to home with $7 million. i'm one of you. i know what kind of people you are. i am a vampire that walks in the daylight and my job is to slay other vampires because i know how the system works. you do not get this unearned moral superiority. you do not get the unearned moral superiority of saying free tibet by having a bumper sticker

on your prius. if you have a bumper sticker that says free tibet on your prius doesn't free tibet. if you want to really free tibet and i do, maybe you off to take it off and says united states marine corps. because if you really want to free tibet, that's how it's going to get done. pull away this unearned moral superiority. here's the good news and bad news. i know we've been through a rough five years and will get worse before it gets better. people like you have to hold elections and stay out there and do the ground game and get out the vote and all that stuff. that's holding the line. i'm tired of losing territory. i don't want to hold the line. i want to get some ground back. i want a special forces of cultural warriors that blow up it

up and say what the hell is that and converge on that interest get now of a sudden a bridge goes into the river on the other side of the map. i want to be back there messing up their headquarters and make conservativism cool and sexy because it is. we believe in loud guns and fast cars and hot women and believe that everyone should have five houses if you work hard enough and six flags on the moon. if you want to do something you should be able to do it so long as it doesn't hurt anybody else. what's their vision for america's future? a bunch of people sitting around thatched huts pulling parasites around each other around a burning cow pie raising money for the guatemala water snake? are these equal visions we can sell to the american people? stop it. i've had enough.

i'm done. i'm done. the cultural board in this country is so heavily tilted. the landscape, the mass media landscape is tilted so heavily and the thing we don't understand is it's tilted in our favor. it's not tilted in their favor. they have to control everything. they have to own all of the movies and academia and colleges and comedy and own all of it to get a 50/50 election nationally. this country is so conservative they have no idea. they have to paper up the windows and make sure a single ray of light comes in. because if a truth comes in a dark room it's not dark anymore. that's our great advantage. that is our tremendous advantage is the power of truth. but there is bad news in here and this is what you need to go home with tonight. you need to understand the bad news about our position and i can explain our position to you very susccinctlysuccinctly.

they can be beat us but we can never beat them ever. ever. we can never beat them. ever. ever. and the reason that we can never beat them is because rust never sleeps. rust never sleeps. if you want a nicely man cured regard with roses and a beautiful lawn, you don't get to go out and mow the lawn and say, well i've mowed the lawn. problem solved. the second you put that lawn mower away the grass is growing again. those weeds are starting to spread. we can never defeat them because they are on the side of easiness. they're on the side of dependancy as opposed to responsibility. we're on the side of saying, no it takes a lot of work to be the master of your own destiny and you'll have to get up and do

that work. we can never beat them. they can only beat us. we have to wake up every day and roll that rock up the hill and reward for rolling the boulder up the hill we go to bed at night and wake up in the morning and the boulder is at the bottom of the hill again. if you don't understand it it's time to get out. all we can do is fight them. then you're going to get really discouraged and i know many of you. i know many of you don't know the point of it and you don't know why am i going to go out and do this again? why? why? why? we wake up and get more and more outnumbered. why am i going to do it? why? well, you do it because it's our job. you do it because you want the rock on the top of the hill and you want the boulder on the top of the hill and not on the bottom. you rather live in a man cured rose garden than a bunch of weeds, period. that requires constant perpetual on going work.

we don't have to tell that to the men and woman who are not in the room tonight because they're in cold and deadly places. they understand this very well. they understand that sacrifice and that commitment has to be made every single day. we understand it too. the beautiful thing is this, if you understand that rock has to be rolled up every day and rust never sleeps and if you understand that you're never, ever done mowing the lawn not ever then it will become clear to you eventually that your job is ton make sure that the lawn is mowed together and that the rock stays up on the top of the hill forever and not to save the country for 100 years and not to save the country for ten years and not to save the country for the next five years. your job is to just save the country today. just that simple really. just to save it today. that's all you have to do. just today. and tomorrow when you wake up it's going to be worse. tomorrow when you wake up it's going to be more depressing.

when you go to drudge or fox news or any of these hate filled sites that we frequent to get the actual truth it's going to be worse and it's going to be more depressing and you'll have to make the same decision that the same little fat made in 1940. winston churchill sat in the back benningches of parliament for ten years saying to his countrymen, this guy's not joking. this adolf hitler, he'll conquer the world. he's not joking. he's building an air force and aim army and navy. they're getting stronger every single second and they did it for ten years. they called him a war monger and idiot and delusional. when he was called in by king george to be prime minister

winston churchill became prime minister of great britain within 48 hours of france surrendering of the germans. he thought he was going to do it with the french. he thought when he said we have to fight these nazis that he would do it with the french and that the germans would be on the border of belgium 200 miles away. when he took office there was nothing but wreckage. nothing but burned out tangs and the germans weren't 200 miles away, they were 20 miles away. he could see the air fields the german bombers were coming from. they were a nine minute flight away. they were nine minutes away. winston churchill was advised by every single member of his government, they said, hitler likes britain and he admires us and he thinks errwe're arians. he's promised us a future. he just wants the continent. we can keep our empire.

and winston churchill heard this is and all his advisors said make the best

it of course they want you to believe you're the laft people in the world who think these things and that faux news is not really news and believe that your ideas are old and dinosaurs and young people -- of course they want you to believe this. they want you to give up and they don't have to work. we have to work. if we give up they win. if they give up, we still have to mow the grass. don't give up. thanks for having me. [applause]

>> thank you very much. very, very kind. thank you. please sit down. we set aside some time. but we do -- we are definitely going to do some q&a and i've got to be out of the building in about 10 minutes and make my flight to mordor where the giant red eye -- joe has it handled? we have a mic? so questions are over there where joel is. that's where -- are people going to come over there, joel? >> what's going to happen is our ushers are going to hand out index cards and walking the aisles now. >> index cards. >> raze your hand. and this is a conservative group so they came prepared. they have their own pens. >> i'll try and get through these. q&a is my favorite part. >> while we're waiting for questions to trickle in i want to thank you very much for your appearance on behalf of the rebel alliance of silicon valley. [laughter]

[applause] alliance of silicon valley. >> am i audible? >> yes, barely. here we go. >> we've got our best person on the job. >> folks can adjust it a little bit. got some coming in. all right. >> there's one advantage to taking questions on index cards, we know how to write. >> following up on one of the topics. churchill's arguments about nature stkeus applies to islamists today. any thoughts? >> when you have thoughts on a subject like this it's important to put the most important thing first. the huge minority, the huge, huge majority of the muslims in

america are peaceful, good americans who contribute a great deal to this country. i've been in any number of situations and met them, seriously hard working american citizens who have much a right to be here anywhere else and if you think that's platitudes that wrong. if don't start from this position you'll fall in serious era. that is a that and. there is in fact a state of war that has been going on with the united states of america since 1979. 1979 islamic republic of iran was formulated with the overthrow of the shaw. you had both parts of the islamic world, the shiites and the sunnis united in a cause of war against everything that the west stands for. so, you have to understand if you don't understand this at all, the united states has been

at war with these elements of islam since 1979. we're not at war with them but they're at war with us. they're very clear about this. just as a small percentage of the german population were actual honest to god nature stkeus we have to understand the power of an evil philosophy run amuck. the reason germany was able to become so awful and allow this to happen is not because they started out evil but the atmosphere gave room for the most base instincts to arrive. and we're seeing the same thing now. the same way millions and hims of germans had no knowledge of the death camps and were clueless of it statement they knew something was wrong. and they didn't say anything.

and that led to serious problems. so if you want to compare islamists with nazis this is my position on it. i wasn't kidding what i said about honest hard working islamic americans. the left will never identify terrorist attack as a muslim attack we know who launched this attack and we know the last words spoken on everyone of those planes. when those planes hit the pentagon and the two towers we know for an absolute moral certainty what the last two words issued in those airplanes were. they know what they were shouted at the top of their lungs were. we didn't murder all the muslims in america. if you remain silent as a muslim american or as a civilized

muslim anywhere in the world in the face of this barbarism you're bringing upon your head the same exact doom that befelled the nazis and there is an interesting counterpoint that makes this case. after the beginning of world war ii for america on december 8th of 1941, america was attacked by the empire of japan and many americans were filled with the burning rage towards japanese americans for no reason whatsoever. but the point i'm trying to make is this japanese americans in the days and weeks and months after world war ii enlisted in record numbers for the military of the they had to be sent to europe because if they deployed these japanese americans to the pacific they were worried our own soldiers who were correctly enraged by the empire of japan would take it out on their own citizens. but these japanese units were deployed to europe and fought

with bravery and distinction because they had something to prove. they had something to prove. what they had to prove is they were americans first and americans who came from japan. i don't see anything like this among american muslims today and that makes me angry. it makes me worried. it's telling me you're not earning your place here. when america was attacked by japan, japanese americans fought with remarkable heroism and distinction and i don't see that today with muslim america. by them remaining silent. not only do they bring this judgment down on their own heads, they're allowing these barbarian savage animals to think they're going to get away it. and the end result of this will be what always happens, they think we're fat lazy, stupid

and cowards and we'll continue to be passive and take it until we don't take it anymore. ladies and gentlemen, the world has not seen america angry truly angry since 1945. this country's not been truly angry since 1945. and these american muslims who are remaining silent because they're terrorized by their own jihad i did move. i understand the power of fear over people's minds. i've studied communism. but if american muslims remain silent because of the fear they have against these skwreu had i did animals they'll face the same. it's time to stand up for this country. when these cartoons were first published back in 2003 or 'four and the "new york times" decided ton run them and the l.a. times

decided ton run them. we don't want to cause any agitation. we don't want to engage. they're saying our core belief the first amendment, the right to free speech is more important than hurting these people's feelings, they're sending a signal to these people that he are cowards. we aren't cowards just the editors of large newspapers are cowards. they thought any were going to get a bunch of hot tub lovers sipping sipping sipping sipping shard do not nay we understand that this is a small percentage of this religion but also understand they are operating among impune impunity impunity. and if you don't stand up and say something you'll entail the out come and deserve the same outcome as the citizens of germany when they had a chance

to speak up against murder and terrorism and tyranny. the reason they're not is because they're afraid. you know why? they're afraid because they don't think there's anybody in the united states who has got their back they don't see americans believing. if i had seen that decapitate that man on the video i would have ten megatons of the bright light of freedom right over the spot right now! why? this kind of fear, the kind of fear endangered by islamic radicals or communists that kind of fear only operates in the vacuum to defend the weak, so defend it! make them believe it! don't just say well, we're going to send you a sternly worded

letter. find everyone of these animals and murders and kill them. kill them and kill their bases and kill their armor and kill their armies in the field. because if you say to them that we're not willing to stand up for the innocent people that you have murdered, then why would we be willing to stand up for ourselves? why? it's not just paris. what was the latest outrage in africa? they murdered 2,000 people. muse hrupl muse /* as long as we keep doing nothing we're going to get what happens when free people do nothing. and i saw this happen not very long ago in history books. my mom saw it with her own eyes. she's a british subject. i don't want to see it. i would rather stop them now than later. until they realize we're serious they're going to do more and more and more and more and then they'll make angry really angry.

i heard a stand-up comedian say this. you really don't want to make america genuinely angry you'll know they're really angry because instead of dropping 10,000 bombs on us they'll drop two. then you'll know they're really angry. it's funny but it's not. so that's what i would say about that. yes, sir. thank you. [applause] >> i'll change the subject here. this is the 50th anniversary of johnson's great society. the welfare state. how would you translate this to disaster during the 2016 election campaign. how do you make it cool to wean half the population from basic support? >> i have enormous respect for mitt romney. i think he's one of the best characters one of the best men who ever lived, but if mitt romney can say to the american people that we are going to lose 47% of the country because they're on benefits then mitt

with all due respect you're not going to be president but you don't deserve to be. if you don't have a plan to win every single vote in this country you probably don't deserve to be president. if you're going to run for president of the united states you better have a sellable plan to win every single vote in this country. it doesn't mean you'll get every vote but you better have a plan for single vote. if you are ready to say half of america is off the table you don't deserve to be president. you're the president of all the united states. so the way i'd answer this question is this way, if it were me dealing with your issue and i'd be been mitt romney i wopt have campaigned in the western coal countries i would have gone to south philadelphia and all black african-american church in south philadelphia.

i would have had c-span there and gotten up on stage and first thing i would have done i would have endured the hatred and the jeers and the outrage and the anger. i would have stood up and i would have taken it. because if you're not toward take it, this job is not for you. that's the first thing i would have done. and then i would have done this i would have said, listen, let me tell you why i'm here today. first of all, i'm here as matter of personal self respect. a large number of lies have been told about me and it it offends me personally that i'm lied to. i may not win your vote about i'm not i at least not get your vote for the thing actually i don't believe in than what i was told. for the second reason i'm here is this, i'm not running for president of half the country. i'm running for president of all the country. and if i didn't believe my policies were better for every single american then i would change my policies. i believe my policies are better for every single american. and then i would have looked out in the audience and would have

tried to find the angriest face i would have found. i would say it's not a trick or anything. just out of genuine curiosity. my name is mitt romney and i come from utah and hopefully he'd tell me his name. i would say i'm a republican because i think it's in myself interest and i imagine you vote democrat because you think it's in yourself interest to vote democrat. would you agree. probably he would agree. we have that in common, right? we have that in common. we have in common the fact that i vote a certain way because i think it's in my interest and you vote because it's in your interest. just man-to-man, do you think that you are living the best life that you could be living right now? is this the best life you imagine for yourself, right now, is this the best life you can imagine for yourself? i can't imagine that you would say yes to that.

but if you do, i would say it's not the best life i can imagine for you. you perceive it to be in your best interest to vote for democrats because you get housing and you get obama phones and you get transportation. but we all know the food is crap and we know the housing is crap and we know that the phone is crap. we all know that all the stuff is crap. they give you just enough to get you to work for them one hour every two years. never more than you need just barely enough. so, you may perceive it's in your best interest to vote democrat because you get a free phone but it's a crap phone. i'm here to tell you if you give us a chance you will have so many economic opportunities to provide for yourself and your family that when the iphone seven comes out you'll be the first person in line to get the best phone on the planet because

you will have earned the money in order to do that if in fact that's your priority. if it's not, then you'll have the ability to do something else. it's harder. it's not easier. it's harder but it's better life and better life for you and we both know this is true. we both know so much of this anger is coming not from a sense of focused hatred but unfocused range and it's generated by the fact that you know and i know you're not master of your own destiny and i am. it's not because of my birth. i have a small inheritance and i gave it away. i believe i'm the master of my own destiny and you don't. you and don't believe you're not because it's been in other people's interests for 50 years to tell you that you're powerless and hopeless and a victim of forces much larger than your control but i'm here to tell you it's not true. i'm here to tell you if you give

us one opportunity to create the opportunities we believe we can create you will be able to be the master of your own life. if you want more, we'll show you how you can do it. we're goning to do it for you. our main job is get out of your way. we believe that every single one of you has a dream that is somehow been buried by the absolute certainty it's never going to happen. and we both know it's not going to happen. we're going to get out of your way and provide an opportunity for those of you to work as hard as you want to and as long. but if you decide to pick up that little golden nugget it will put you in charge of your own destiny. i would vote exactly the same way you would too but there is a boater life for you out there. you know it's true and i know it's true.

anyway my name is mitt romney i'd like to have your vote and if i don't get it i do. i wanted to tell i respect all of you to come here in person and endure the rage and hatred and all the jeers because i want to be president of the people of the united states of america and i can't do my job if i don't hear what you're angry about. how can i do my job if i don't know what you're so enraged about. how can we sofl the problems if i don't know what they are. if mitt romney had given that speech one time that giant who cares about you most, would have been another category he would have won and we would have won with 80% of the vote. yes, sir. >> speaking of mitt romney how did the media convince that a liberal republican is the only one who can win?

>> i guess the same way that a hen house guarded by wolves convinces the farmer that wolves are the perfect guard for a hen house. look, we have evidence you know. i mean this is an important part of our philosophy. our philosophy is very simple really. we see -- we try to discover what's objectively true ask we try to move to where the truth is and we don't try to drag the truth to a pre dug trench. the truth won't move from me and doesn't move for anybody. the truth doesn't care about what i think. but the acceleration rate of gravity is the same. i'm on the truth or the truth is somewhere other than where i am. i want to be on the truth. so in answer to your question, we have some evidence about this. for example, in 1980, we had a guy who ran for office on a

platform of conservativism and miserably he only won 45 states. he only won 45 states in that election of 1980, but after four years of track record, after four years of evidence of these policies, he ran again and that time he only won 49 states and came 5,000 votes short of winning every state because he believed in these values and knew how to explain these values and loved these values and wasn't a nasty man. he was a happy warrior. you couldn't hate ronald reagan because he was such a nice guy. but if i'm talking to conservatives i say, well, we had a conservative run in 1980. he won 45 states. he ran after a four year record in '84 and he won 49 states. that's 49 out of 57 states,

obama, that's impressive. if you want to say those days are over and say those days are over they did a survey not long ago. they said who would you vote for ronald reagan or obama and reagan won 2-1. we came out the tea party and came out against obamacare and enormous victory. 2012 you can't attack obama you have to attack his policies. remember i told you about the villain in star wars it's like ob one says to luke, tell me about this darth vader character and luke says well, darth's not a bad man, luke. it's just that his policies are not good for the empire. he wants a 12% tax and we think it's 7%. now you'll get in one of these star fighters and risk your life?

no, no. bar obama is destructive to this country. so attack him for it. don't lie. but hit back. then you've got two villains, right? then it's which villain makes more sense to me. people will not vote for darth vader under any circumstances, they won't. let's have two darth vaders and see which one we like best. the evidence is there and 2014 we ran an ideological conservative election and we won gigantic. we're telling me doesn't make any sense because we'll lose the soccer moms. if we're saying we have to walk the moderates the definition is someone who hasn't made up their mind. maybe we should think about why they haven't made up their mind. why don't we just eliminate moderates as a political force completely by turning them into conservatives and making what an

obvious case for everybody's benefit. if we did that we haven't be having these discussions anymore. i have time for one more and then i'll have to go like barack obama at tea time. i'm sorry if i didn't get a chance to talk but i'll be back next year. i'll do one more. >> how often do you speak to college audiences and do you have any evidence that you've been successful in converting the attendees to your way of thinking? >> i have spoken as much as i would like. i have some evidence i'm converting. i have evidence because i can see people thinking and you can see the smoke coming out of their ears. all i do is i'm just barely young enough and i'm 55, i'm just barely young enough to share the pop culture. i was a space age kid and apollo kid and no one connects to that. simpsons have been on 25 years.

the last 15 years has been like a cancer patient die and it's just not funny. i know what "game of thrones" is and i know what "hunger games" is and what these things are. i speak the language of these people. i understand it. when a young person hear's somebody who can talk about star wars and these things in a language that they understand, they are able to hear the ideas behind them for the first time ever. so i love to tell you all these people come and sign up but i will tell you one thing in the times i have had one on one conversations it is astonishing how easy it is to flip these people. tammy bruce pointed that out to me once. she's a current lesbian. she saw the light and started asking questions. we were at an event not together, but at the same event, and she asked me once, he shpd, do you ever realize how easy it

is 20 minutes of talking to these people and they're solidly converted. because they don't know what they believe because their ideas don't stand up to scrutiny. they believe what they believe for the same reason the empire has no clues. everybody agrees if you don't see the magnificent blue vest that's only the stupid don't see the magnificence of the embroidery. all it takes one little boy to say he's not wearing any clothes and the whole thing falls down. now i have to start thinking about things. it's just that easy to convince these people. it's really just that easy. and it's time for me to go to the airport. but i'll tell you this last thing. when i went to the university of toronto and to oberlin back to back a couple of years ago i thought my mission there was to present conservative values in an understandable way and

enthusiastic passionate way using language people could connect to. but after i got there i realized i was wrong about that. that was a mistake. i got interviewed by a reporter from the toronto sun before i even did the toronto show and oberlin was after that and she said to me after the interview over, she said i never met a conservative before and i said i'm not surprised. [laughter] >> but what she meant by that was, you seem so nice. and she is right. i had a friend of mine, a good friend of mine, when i hear you really speak i hope you don't take this the wrong way you kind of sound like a liberal. i sound like a liberal because i genuinely care about these things. i just want to do it right. i don't want to do what feels good i want to know what does good. sometimes the things that feel the most good do the most harm and the feels that do the worst do the most good. when i went to these college

campuses and my job was not to convey conservative principals my primary mission was to convince these kids that i was an actual my has an being with real feel skpeugz cared just as much as they did and further more the solutions i had in mind did actual real good and theirs didn't. who is the real compassionate person here. if you feel good about something that does harm and i does something that does good that may not be attractive politically who is the real person? who has got the real virtue? once you start talking to people they think maybe there is something to this after all. and they start thinking about the arguments and it's game over. i couldn't flip the whole country. i could flip 97%. there are 3% that are the true believers that understand these ideas destroy freedom and prosperity. they want to rule over the ruins. those people we cannot flip but the rest of them we could and we have to do it by being honest

and by being emotional and connecting to the emotional argument. we have obamacare. as a national law today not because of the benefits of obamacare. we later found out just a few weeks or months ago, the entire purpose of the stack of documents was so make it so obtuse that no one could understand it. that was the mission. make it un-intel i thinkable. why do we have it? not because of the brilliant argument because barack obama would stand on the floor of the house of representatives clouded in the glory of america, surrounded by the podium, the flags, the dome, everything, all of america power and prestige is focused on this one individual standing there and he didn't say if we have socialized healthcare this 14% reduction or 9% or 8% coverage, no, he said, ladies and gentlemen, i'd like to you meet miss bernice johnson.

would you stand up for a minute. little old lady stands up and waives. she said she had a preexisting condition. she was burned through her life savings and husband former veteran and preexisting condition bankrupted her. but due to this legislation which we signed she's expected to visit her grandchildren and live a full and loving life. we're happy to have you here this evening and every single person who watched it, me included me included conservatives, super gladiator warrior myself, looked at that woman and said, i don't want that woman to die. i don't want her to die. i don't. i don't want her to die. so, okay, whatever. yeah of. let's do it. but what we didn't see wen't it see the millions of people who will die because of healthcare that eventually gets rationed and the nightmares of the

national healthcare system in great britain and all the people who were going to be taken off of healthcare with these ridiculous mandates. my personal coverage includes mammograms and birth control. it costs money and i have it. thank you mr. obama and all the consequences are not discernible because they're not real. but that woman is. and the person who understood this most fully was the most evil man who ever lived. he understood this without the slightest hesitation. joseph stalin said a single death is a tragedy a million deaths a statistic. right? it's a statistic. we are argue statistics. they put a face on what they're trying to do and most of us and even all of us would say i don't want anything bad to happen to that woman and we lose the ability to think rationally. if we don't understand the language and we need to start

showing people whose lives have been ruined by socialized held care and over here is a person's who life is saved by private healthcare we're going to lose to these weenies. i'm done. i'm done with losing to these losers. i got to get on the airplane. thank you so much for having me. [applause] >> on the next washington journal daniel halp esm r

discusses how foreign policy issues are affecting potential 2016 presidential candidates. then adam green of the progressive change campaign committee looks at the political and legislative agenda for progressives and the 114th congress. after that, william branive of the national consortium for the study of terrorism talks about this past week's white house summit on encountering -- countering violent extremism. phone calls, facebook comments and tweets. washington journal live at k a.m. eastern on c-span. -- at 7:00 a.m. eastern on c-span. news makers, gary her better on issues facing states on "newsmakers." he will talk about health care law, budgets imgriggs, and common core education standards. see it at -- on espn c-span. the nationas governors have gathered in washington for their annual winter meeting. tomorrow's meeting starts at 11:00 a.m. eastern with remarks

from homeland security secretary jeh johnson on cyber security efforts at the federal and local levels. and at 3:00 eastern e.p.a. administrator jeana mccarthy discusses energy and water security. see both events here on c-span. the academy awards are sunday. and here on c-span we're taking a look at some of their real-life stories about people featured in this year's nominated films. remarks from georgia congressman john lewis on his involvement with the civil rights movement. something that's portrayed in the film "selma." then former navy seal chris kyle zutches his autobiography "american sniper" which was turned into a film by the same name. and after that, a discussion with stephen hawking whose early adult life is portrayed in the film "the theory of everything." see all those events tomorrow at 12:30 p.m. eastern on c-span.

the c-span cities tour takes book tv and american history tv on the road. traveling to u.s. cities to learn about their history and literary life. this weekend we've partnered with time-warner cable for a visit to greensboro, north carolina. >> most of the seats were empty. i remember when i got there except for college students. except for a&t and bennett college most everybody else, you know, was like i'm not going down there. because, you know, anything might happen. so there's these empty seats. and it's quiet. and we go and sit down. and wait. you know to see what's going to happen. a waitress came by with a tray of knives. that were -- she was so nervous that they -- the knives were rattling. i was so nervous that i didn't know what she might be doing with those knives. but i could tell that she was scared. she was as scared as i was, you know. we sat there with our

textbooks. trying to study. i remember her saying we can't serve you all or we don't serve colored. i'm going to ask you to leave. and so we had distance -- this destruction that just don't say anything. just keep sitting. don't say anything. and if they ask you what it was like, and you asked for a cup of coffee, they never asked us what we wanted. because they knew they weren't going to serve us. >> ask about these events on book tv. and sunday afternoon at 2:00 on american history tv. on c-span 3. next part of the annual tech crunch disrupt. san francisco conference. with silicon valley tech c.e.o.'s and venture capitalists on current and future innovations. we'll hear about uber's startup

struggles with competing cab drivers and remarks from dallas mavericks owner and investor mark cuban. on his new messaging app. this is two hours. >> if you're the little guy, if you're the little guy, that's -- that's cheered. that's lauded. that's the heroic sort of startup story. like i turned something -- turned nothing into something on my last company. and for most people they call it a walk or maybe a single for me and felt like a home run. >> right. >> but again as you get to a place where people perceive you as the big guy or the man, you have to approach things differently. and you have to communicate differently.

and we're not there yet. we want to be there. and we're going to get better. but those are the things -- those are the challenges that we're facing. and those are the things we're improving on. >> it sounds like -- you recently hired david plouffe. a former obama advisor. the political war. and you put it differently. you say you're -- it's a campaign that you're running. >> yeah. >> is bringing him on part of this creating a kinder, gentler -- >> he doesn't start until the end of accept. we're obviously -- he was obama's 2008 campaign manager. >> yeah. >> and he was an advisor, sort of in between the campaign. and the white house in 2012. he's -- he's a pretty incredible guy. but the context is that we view -- we view where we're at, and i said this a couple of times before. as there was a political

campaign that was happening. we didn't really realize it. but there was a political campaign that was happening in uber was the candidate. the opposition was the taxi cartels. they were the opponent. maybe there's a primary going on in the ride sharing space etc. but the big opponent was essentially the taxi cartel. and they were out there they have been giving political donations for dozens of years. tens of years. decades. they've been lobbying folks for those same decades. >> they own local politicianings. right? >> they have created situations where there's a monopoly in every single city. for taxis. >> yeah. >> and that -- that causes problems for people who want to get around that city efficiently. it causes problems for creating jobs. it's not only that riders don't have options, the drivers also get stuck. because there's no other

options for a job. and so then what happens is you have a situation like you have like -- let's say like in new york. where a driver leases a car for $40,000 a year. >> yeah. >> that's the taxi. he leases a taxi for $40,000 a year. it should be a bentley. or something. >> right. >> instead it's just a taxi. and for that, for that privilege of leasing that car for $40,000 a year, he can -- he gets to be impoverished. >> yeah. >> and that's because he didn't have optionings. >> and people can't get rides. >> and of course -- you know, that medallion the license to own and operate a single taxi, is worth $1 million. why? because of the artificial scarcity at 13,250 taxis in new york today. there are 13,250 taxis in new york in the early 1950's. and so -- >> what does plouffe do? does he go in and grease the

wheel? and did he bribe people? pour -- is he a hammer? like you're going to do this because i know people or -- how does he get stuff done? >> the way to think about it is -- he's the uber campaign manager. >> right. >> right. and so that means policy. communication. branding. and strategy. >> ok. so -- >> that together. >> branding, communications, policy and strategy. and which of those four are you inserting cash into the process? in some way? >> you'll go to a city and you say look, you guys have the wrong policy. like for instance, miami. if you push a button to get -- sorry. if you call to get a town car -- >> yeah. >> there's a law there that said -- if in a car comes in 15 minutes you have to wait for 45 minutes more before you're legally allowed to enter that vehicle. and if you enter that vehicle before an hour has passed, that driver can be arrested. >> so --

>> that's not good. >> you're trying to fix that. >> so -- you say oh, we want to fix that and you want to meet with a city council person or meet with a deputy mayor or something, they literally say you -- there's no meeting unless you go through this guy. >> and this guy is -- >> this guy is a lobbyist. >> that's where the cash is inserted into the lobbyist. >> in the big scheme of things -- >> dirty business. >> it's terrible. >> i'm glad you hired a professional to handle that for you. what -- how much of uber do you personally own at this point? >> i own a lot. >> is it -- do you own more than 50% personally? >> i don't think it's appropriate to talk about that here. >> you think it's inappropriate to talk about it here? >> yes. >> on stage at a technology conference? >> yes. >> a site that's famous for breaking news about people's personal net worth? >> i mean, we could talk about it later. >> when you -- when you interviews yourself, do you say i'm a billionaire? do you feel like that yet or is it sort of still paper for you?

>> look, it's kind of funny. i think a lot of the people who know me know that i'm pretty much the same today as i was when i was -- >> i know you and you're the same. >> ok. so then you know the answer to that question. >> yeah. [laughter] you used to be -- >> are those taxi socks? >> you used to be one of the poor -- poor estrich people i knew? does that make sense? >> what does that mean? >> you had made a few million dollars but immediately invested it all in new startups and all in. and now you're worth some number of billions of dollars i think. based on your last valuation. and i just -- i want to see a little bit of arrogance or something that i can make fun of but i'm not really getting it. >> i'll work on that. >> all right. so two days ago i was in palo

alto. and i called for an uber. and uber came. on its way i get a call from the driver. and the driver said where are you going? and i said oh, a couple of miles. and he hung up and he canceled the route. son of a bitch. so -- first of all, i assume he's been fired at this point, right? from my point of view, the thing i loved about uber way back in the day, is it never -- i would never have that shit pulled where you don't take credit cards and uber changed all of that. are you growing so fast that now some of those old taxi problems are coming into the system? >> if were you to wave down a taxi in manhattan and say i'm going to brooklyn -- >> yeah. >> he's going to say hello. and that's just normal. and there's nobody for you to complain to. >> yeah. >> in the uber model, we're not -- we're not perfect. we really strive to be. and so when that thing happens,

we encourage the feedback. >> yeah. >> and folks who do this, drivers, partners that are doing this don't last on the system. >> so it isn't gent the rules to engage in old taxi-like behavior? >> of course. >> the idea is they have to take anybody? >> this is the tricky balance of this kind of business. right? is that we have two sets of customers. the riders of course. but there's the drivers, too. and any policy that we have, a cancellation policy or any of these things minimum fare and things like this, in many cases it's good for one side and bad for the other. >> yeah. >> you do something good for the riders but the drivers are upset. or you do something good for the drivers, and then the riders are upset. and finding that sort of principled balance is actually quite tricky. >> yeah. >> and it's why any time there's a little policy tweak that we do, it kind of makes news and it's -- somebody is

upset. >> yeah. >> but we really try to find that principled middle ground. it's the right thing to do to take feedback from riders when there's a trip that didn't quite meet expectations or meet our standards. and ultimately folks who aren't meeting those standards shouldn't be on the system because then you can't offer a high quality service. but there's also a driver constituency that you also have to be mindful of. and i'm not saying in this case that hit that line. but it's just part of the nuance of our business. >> you have been trained, son. >> i have not. >> you -- >> look at any -- >> you're smooth all of a sudden. you're like -- you got it down. like -- >> that's not true. >> not talking and nodding and -- that guy, that was fired -- >> have you seen some of the things i say? >> yeah. yes, i have.

>> i had oatmeal this morning. so i'm a little calmer. >> ok. well, that's good. i'm -- nice balanced breakfast is -- >> good. >> that's a good way to start the day. you -- how many drivers does uber have now? >> so we're in the hundreds of thousands. >> you have hundreds of thousands. >> hundreds of thousands of partners connected to our system. right? so -- >> how many are you bringing on every month? >> we're in the many tens of thousands. so like right now you know, we're -- we're in the neck of the woods of about 50,000 new jobs a month that are being created. >> and how many do you deactivate every month for poor performance? >> i don't have that number handy. but there's some number. i don't know what that is right now. >> so you have a competitor lift which is -- it's annoying because you have to sit in the front and talk. and they have these mustache things.

i heard some people -- some people apparently have. they seem to be constantly whining that you're beating them. that you're trying to take their drivers by offering them incentives. i don't hear a whole lot about their business. but i hear a lot of whining. so my question is would you consider buying them just to shut them up? [laughter] that's a valid m&a, strategy isn't it? shut up or we'll buy you? >> you know, i like -- this is an interesting question. so i like to use the -- i like to take that political analogy a little bit further and say that of course the opponent is the taxi cartel. but there's a primary race going on right now. and there's some scrapping that happens in that primary race. i think that's part of it. in terms of m&a and how uber thinks about it, uber hasn't

acquired a single company. we sort of are just really focused on the product, on building the business. we're in a couple hundred cities. we're in 45 countries. and we're -- we're proud of that. proud of doing that in the time frame we've done it. we haven't spent time on the m&a side of things. it's just how -- >> that was approaching an answer. that's fine. >> what was the -- how did i not approach it? >> i said would you buy them to shut them up and your answer was you haven't bought companies and that's not the way we think about it so indirectly you got there. >> we're not in acquisition mode right now. >> tell me about -- what do you call this where it's like a city bus? pool? >> uber pool. >> so you get a bunch of people and drive them and make stops. and somehow this is not a city bus that you've duplicated. it's something independent of that, right? i don't get how that works and why anyone would use it. >> so here's the idea. >> ok. >> the idea is you push a

button, the car comes and picks you up just like normal. >> ok. >> and while you're on your way to your destination, somebody else is going along the same route. >> right. >> at the same time. and with less than -- let's call it two minutes or less deviation from your route -- >> yeah. >> you go and pick somebody else up along the way. >> and they get in my car with me. >> they get in the same car as you. that's correct. >> ok. >> what happens then is -- >> it sounds a lot like a bus so far. >> understood. the difference is a bus is you go to a corner that's like half a mile away from you. >> yeah. >> and you wait 15 minutes and sometimes it's on time and sometimes it's not. >> yeah. >> this one comes just like the uber that you know. you push the button and it's there. it's there when you want it, exactly where you want it. >> ok. >> and that -- that's the uber magic. and then what happens is you're still getting the benefit of a bus. you're still getting the benefit of car pooling.

by literally taking cars off the road. right? there's a significant efficiency in doing this. right? >> but it seems like to make this work, and you've just started with it but to make it work you have to have a massive number of users for the network effect to kick in and make this viable. otherwise i think -- it seems like it wouldn't work at all. >> so if you are just -- if we were just starting out in a particular city and we're launching cities all the time you just can't do it. because there has to be -- there has to be a large number of people going from -- basically having routes that overlay each other. >> right. >> at the same time. and you can't do small ones in cities where you're not big but if you are big, you can start to make that work. and i think one part is liquidity. the other part, the other part is product. that product has to be just right. because there's a lot that can go wrong from the moment -- especially if there's a second user. from pushing the button and making this all work. >> so do you think you have

enough liquidity as you call it to make this work in san francisco and new york and -- >> i think we do. i think it's right on that edge. of liquidity to make this work at scale. >> so others are doing copycat products. you're saying they're not going to be able to -- they're not going to be able to make it work because they're so much smaller? >> well, first, you know, maybe there's a little bit of a hat tip. but i don't think that lift -- lift copycat this particular feature. companies are often working on features at the same time and roll them out. but at the end of the day, liquidity is going to matter on this. and it's going to -- you have to be very very large to make it work. at least that's our sense of things. >> all right. we'll see how that goes. i refuse to use that service personally. >> fair enough. >> it's -- >> we're seeing good pickup. but again, not -- >> not for me. >> fair much. -- enough. i can't wait to do an uber pool

and see you in the car and got you. >> i'm stuck in this thing and i pressed a button and i'm stuck in a bus with like unwashed masses. i don't know who these people are. i don't want tok out of might have way to pick up yet another person. i want to go where i want to go. >> interesting ideas where like they drop you off. because -- i can't wait to see in you an uber pool. then they drop -- then i'm the only person in the car and then somebody else can come in the car. you could literally have a perpetual ride. for the driver. and what's interesting about that is you think about the driver income side of this. right? utilizing that car and getting that income up. >> yes. >> and also how that can affect prices and really help to bring them down. it's a big deal. >> it's -- >> our whole thing is about bringing -- bringing the cost of taking an uber below the cost of owning a car. and right now, we're like -- >> the car manufacturers must love you talking about. >> if you have -- who else -- >> who aren't you fighting? the car manufacturers are going

to freak out when they see that car sales in big cities are going to go down. the taxis want you dead. and they're like -- actually, probably would be the kinds of guys to hire someone to hurt you. [laughter] and you got the ankle biters here that are trying to compete with you. who aren't you fighting with? >> who am i not fighting with? the nature of this business is that it is so disruptive. like it's so insanely disruptive. that there's a lot of incumbents and a lot of places that we've got to -- we've got to persuade to come over to the other side. >> so the answer is almost no one. to this point. tell me about the wins? it's unbelievable to me. when i saw all the battle was all the cities, you won all those battles it seems to me. so how -- -- >> states we're in a very good spot and starting to see the things happen in the u.s. we're starting to see that in

europe. and we're working through it. like i still have -- we still have -- we still have a decent assist from the city of san francisco from october of 2010. but there was a law passed three weeks ago in california that reaffirmed what the public utilities commission already said. i don't know a. year and a half ago or more. two years ago. something like that. >> you feel good about california. >> california is good. >> colorado, illinois. new york. d.c. are there any real trouble spots still -- >> we're not in vegas. >> yep. >> we're not -- we're not -- there's a few cities like that. vegas is a big one as an example. >> then there's europe. where it's just a train wreck right? and you're sludging through that. >> our -- our business in europe is growing pretty good clip. it's growing faster than the u.s. at this point. but -- >> and banned in germany and ignored the ban and growing mugely but aren't you subject to $250,000 euro a ride

penalties or something? >> there was a case in hamburg, the cord originally decided that we were breaking some rule. >> yeah. >> that case then got suspended. >> yeah. >> there was another case in frankfurt. which said that we're basically charging too much. >> ok. i thought it was charging too little. >> well, they'll get you one way or the other. and we're like just tell us what the price is. >> yeah. >> and they won't tell us what that price should be. >> yeah. >> and that's on appeal right now. that's what's happening in germany. >> in china things are going well, right? >> china, we're in five cities. and beijing is our -- the fastest city, either number two or number one, the fastest growth we've seen from a city at its age. >> you said beijing has 07,000 cabs today, right? -- 70,000 cabs today, right? >> 07,000 cabs in beijing.

>> how many does new york? >> 13,000. >> orders of magnitude larger. >> it's huge. china and a lot of folks maybe in america don't know all of the stuff that's going on. we're in -- we're obviously in north asia south asia. you know, europe. middle east. there's a lot of interesting stuff going on in china specifically. 70,000 drivers in beijing. i don't know. 60,000, 07,000 drivers in shanghai. and there's 200 cities in china that are over a million people. >> yeah. >> so there's a lot going on there. you got two big taxi companies out there. or taxi apps. one called gotcha and the other called qadi. that are in an all-out war. one of them partnered with 10 cent. the other partnered with ali babba. hundreds of millions of dollars being subsidized on each side by the big companies 10 cent

and ali babba for these respective companies to grow and win. so there's this big chinese war going on out there. >> when you say that stay away from that market. two huge players with half a billion spent on subsidies to underprice from where the market should be and you come rolling in. how does that work? how do you win in that environment? >> what's -- what's really fun and awesome about what's going on in china for us and maybe me specifically is we get to be the little can i. >> you got to be the little guy. >> for me that's like homecoming. i can -- we can be the little guy and see what happens. and for me, like why not try? >> yeah. >> like yes, i think you're right. there's a lot of challenges. and a lot of things there. but how much fun is it to try and see and if you can persevere and make that work, that's really awesome. >> let's get down and dirty. how are you going to make it work? are you going to be subsidizing -- >> what we see between these

guys is like i think gotcha got a little bit of a head start. these subsidies, qadi and ali babba pushes money into the qadi, into qadi and they are giving rides away for free. in exchange creating payment accounts on ali pay or 10 pay. so what happens is like if you're smaller, like if qadi is smaller they'll do subsidies and going to be more expensive for didi who is bigger to retain market share. in that world. >> ok. >> and so there's a lot of really interesting sort of economic competitive things that are going on. and when you're the small guy there's a lot of things that a small guy can do that a big guy -- >> you're a small guy in the sense you just arrived but a pretty large balance sheet. how much of that balance sheet have you earmarked toward fighting this price war in shanghai and beijing? will you put hundreds of millions of dollars to work

there? >> we're so small right now that it's not going to cost us a lot to get in the game. and so -- >> every dollar you spend costs them much more because they're so much bigger? >> right now, what we're doing is we're doing ride sharing in a couple of -- actually one city at this point. and we're just finding ways to make those economics work. uber starts. we always start with like how do we make a sustainable business? it's part of our culture. >> yeah. >> the competitive dynamic can push you down sometimes. but ultimately, you have to have a sustainable business. and that's kind of part of our culture. but at the end of the day, we're going to -- we're going to try to offer the cheapest most reliable rides in china. and we think on the product side there's some benefits to how uber rolls versus these other guys. and i think it's going to be interesting for us to be in that market. against those two guys that are -- that are going big. >> all right. last question because we're -- i think we're double over time. >> oh, wow. >> complete disregard for

everyone else's like time. and i apologize to everyone. but i want to ask this one question. if uber fails -- >> yeah. >> let's say in five years it's just gone. what -- if you had to guess what is it that will kill you? the politics? the competitors? >> that's an interesting question. >> what is it? what's your biggest threat? >> that's an interesting one. i think the stress will kill me. i think it will be the stress. so like, you know, look the last company was crazy because i didn't have any money and i was always trying to make it work and i got 100 nodes -- notes a day which is hundreds of thousands of notes andness a different kind of stress. four years in at this point. a little over four years. and so you have to find ways to find that center, to find balance. and to find sanity. because again, we're the bigger

-- we're getting bigger. and people look at us that way. we have to find that new balance. and i think right now that's -- that's stressful. and we're working hard to find it. >> maybe you can do some like pilates or something. >> i'm down. i'm open to all suggestions. >> thanks very much. >> all right. thanks. [applause] >> awesome stuff. i think my mic is on. there we go. really quick announcement because a combination of michael arrington and electricity have really slowed us down this morning. we have a couple of contests going down over the course of disrupt. today's contest is called disrupt vine, the theme you're working on. if you can submit a vine we're going to be giving away a mini drone at 9:00 a.m. pacific time tomorrow. if you need more information, it's on the website. and use #tcdisrupt on any vine

you post and we'll get that sorted out for you. our next guest is a super genius do not confuse him with our tech crunch volunteers. he's wearing green but a huge deal. not that our volunteers aren't. they're also a big deal. we've got a serial entrepreneur who has had his hand in pay pal, slope, been developing for mobile years before any of us thought it was important and let's see what he can teach us today. let's welcome tech crunch. >> good morning. >> thank you. >> how is it going, max? >> great. >> so it's been a year sense you were here last time. and this exact same shirt. >> last time. >> i'm impressed by that. that's a long bit of dedication to the cause. >> this one is going to take about 100 years to build fully.

>> and mark cuban, who i here is on a television program is on next. and i had some quick math this morning and that makes you the poorest person that we're interviewing in this first block here. how does it make you feel? >> that's entirely accurate if you price my affirm shares correctly. >> how you would price those shares? >> the sky is the limit. 20% of g.d.p. here. >> what you want to do. before we get to affirm there's been a lot of talk recently in the market about e-bay potentially divesting -- -- should e-bay spin pay pal out? >> at some point, pay pal and at some point i mean in like the next 18 months for sure or earlier pay pal volume will outstrip e-bay's.

so for all intents and purposes. e-bay will be a division of pay pal. so spins e-bay in and got spun out. some other deal happens. e-bay remains a key market. for pay pal. but ultimately it's the faster growing of the >> would you buy shares in the new public paypal? >> it depends who the management team becomes. >> who would you want to run the company -- you cannot say you. >> i'm unavailable, i'm running my own financial services company. there are a bunch of people, probably the last person to run paypal after peter departed was david who recently became available. he ran something for microsoft for a while but he definitely knows paypal from the entrepreneurial age the best.

>> twitter had revenue of 312 million, do you think a pal by -- paypal by itself is worth more than twitter? >> that is asking someone who has not tracked paypal financials in a long time. i imagine it's at least comparable. >> say 35 million? >> i know better than to prognosticate about public markets. >> if you sold paypal under 2014 market conditions as opposed to 2002, would you have a more successful ipo or have sold or more money? how would it look differently from the current market? >> again, that's an experiment you can only run once, paypal today is the force to be reckoned with.

it has as good a brand as visa or mastercard -- perhaps better. hard to compare. it is an incredible company and i'm proud of what we accomplished. >> in light of current valuations, even among companies that are weaker and paypal was $1.5 billion feels small. >> sure. one decade has gone by and if anything, public markets and large-scale investors realize how permanent an impact on fundamental industries internet companies are. when it went public it was still in question whether these internet whippersnappers would be around forever. jpmorgan has been around for 200 years, what will happen to paypal? at this point it is safe to say it will be around for a while. >> you regret the price? >> i try hard to minimize

regret. >> you only had 2.6% when it went public. small number. >> it took a lot of money to build it out. >> there is been a lot of talk about the bubble, i think there has been a rise in asset prices that has been somewhat scary, do you see it crashing? >> hard to tell about the public markets because they are so beholden to global forces outside the valley, so any attempt to predict our tempest is silly. at a macro level we live in uncertain times, at any given time's there are three major macroeconomics affecting conflicts -- russia, ukraine israel-gaza, syria-isis.

>> will you see a correction in the price of companies in the next 12 months? >> selectively, yes. there are a bunch of companies that are solving big deal problems where the venture capital market pricing them at the very least, optimistically but correctly around the kind of impact it might have. there are a bunch of companies that are not solving big problems that are riding coattails. >> what are some of the companies now that you think are well price but are not solving problems? who are the superstars? >> travis just came him off the stage -- on the one hand eye-popping value in the other hand an opportunity to disrupt

market types, fedex, heinz -- [indiscernible] >> i have a very restrictive policy on buying shares or selling sells but i probably would invest. >> companies not as impactful -- do you see them getting a whack to generate more money? >> i think they will find themselves having a hard time raising money at the actual value proposition at the revenue revenue level -- series a leads the series b. >> the think square possible you wish and is in line with where it should be? >> i'm not nearly as familiar with their business as i'm not an investor as i perhaps should

be -- i think if they crack the small business pricing they are probably undervalued. i love financial services. >> apple is expected to introduce some payment offer for the phone and i watch. >> there so secretive so i have no idea who is running the amide ring -- for a long time it was rumored they were interviewing someone to run their division -- that seemed like an interesting step. they have the world's largest collection of credit cards on file and incidentally that database has never been cracked. they are giant targets that could do some really serious rearrangement of deck chairs. >> you think you would have to find some way to integrate your

firm into it? >> i would love to. from what i read so far, apple will release something like a container for a payment method and a firm is a source of credit so we would fit right in. >> so apple has not talked to you thus far? >> if they did i could not tell you and if they did not i couldn't tell you either. >> that is a boring answer. >> apple's secretive. >> has apple tried to buy you? >> apple has not. >> david said you would view that company in abject failure if it failed to sell for $1.5 billion -- do you have the same standard for a firm? >> number one, i am not speaking for david right now, but having said that i figured out around

the time of the slide journey that i really want to measure my success and failure by the number of people who use my products over a long period of time. at some point i had 100 million users and did not feel good about it i made some announcement about this is of the company and ultimately it did not survive, there is not a single slide product in a and that is a failure. i want a firm to be used by hundreds of millions of able long after i'm done -- i don't really care what it sells for. >> you don't really care about the price in the end? >> i don't want to put a dollar figure on it, i want a number of hopefully hundreds of millions of users. i would like to do whatever is best for my employees and investors when the time comes, but at the moment i'm unencumbered by either concern.

>> would talking about it but i think people don't know about it, can you do the rundown of how it works and what it does? >> a firm is an attempt to completely reinvent consumer banking -- we started with credit because one of the revelations made around paypal was that the internet was peeling off complexity and lack of information from every industry and finance was hard to figure out and not transparent and it still is today. when you get your credit card in the mail in their small print in some bank in london -- why does it have to be so difficult to understand? [indiscernible] 100% margin product in the world of banking is late fees and forms of hidden charges.

as you unbundle the complexity you wind up with a more profitable business model and no one has really done it for financing so we set off with a firm to try and do that. what we did that and started with was point-of-sale lending. when you go to the department store the person will say come apply for the in-store credit card and you know it will be a painful process and you probably not get approved and it is based on your fico score -- some magical scored no one understands and the fees will be bad and the interest rate horrible -- but it is a great boon to retailers. it increases sales and improves conversion.

so they say what if we provided a great alternative. >> but a firm is for consumers to make purchases at point-of-sale? >> that's what it is today. >> you're taking a one interest load, slightly high and then -- >> fairly low. compared your credit card, if you are carrying a balance like 6 out of 10 americans we will pay 700 -- several hundred dollars. >> what would you charge me on an affirm loan? >> somewhere between 60% and 17% and the average credit card, the millennial someone who is fresh of college with a psycho score -- probably $29.95 is what

you're looking at here in -- looking at. one of the things we do since we are a 21st century company we price every loan to the transaction to the person and these loans are not compounding interest so you know exactly what you are borrowing and what the payment will be each month. >> do consumers really want you to vet their credit when they buy? >> it takes less than half a second. >> how can you do that and look at me and my entire profile in less than half a second and decide the rate? that feels like a quick glance. >> so long as the rate i charge you is good for you -- we can access a bunch of databases and we have filled up good models that forecast your ability to repay and your propensity -- so

a lot of the same math we did at paypal to figure out who is a good guy and a bad guy. >> was do you look for? your algorithm sounds interesting. i don't think people will say they're getting a fair shake from you because they don't know what you're looking at. how do they know it is useful? >> they are not required to take it to the can always call back with whatever form of payment they have available and make a comparison right there and then because we will disclose the interest rate and the charges. the way we figure out who they are and what they are is several interesting ways. the most important thing true of today's generation, the social security number has been replaced with their mobile number, it is a key index to databases. anything from your social media to phone bill is a good way to

figure out who you are and what income you have and what debt you're likely to take on an service and the debt to income ratio is one of the best financial metrics that we can use to figure out how likely you are. >> how much have you loaned out right now? >> it is actually growing off the charts so i am terrified to give you a number. we have been testing various forms of products and various versions of the loan and we settled on the simple installment loan with explicitly disclosed charges upfront. at this point the merchants forcing something like 30% to 40% on the parts site and they are promoting us aggressively. >> how much loan debt right now? >> that i cannot tell you but it is in the millions. >> less than 10 million? >> it is less than 10 million. >> more than five?

>> i will plead the fifth. >> between one and 10. that's really big. >> looking ahead 12 months, do you hit 100 million? >> yes. >> 100 million in 12? i will hold you to that next year. what about people who don't pay you back? >> they have to not pass back roughly less than the combined interest rate charged because otherwise we would be unprofitable. we look at non-repayment rates -- so people with super prime credit, -- people who choose us because of our transparency and quality of service versus our prices give back 100% of the

time. people that are already living in the recession, go delinquent and sometimes default in the single digits to double-digit percentages and that is as it should be. >> last question, what is the next affirm project? >> that i can't broadcast, we like to surprise. >> thank you, matt. [applause] >> what is up? our next guest is special to me -- i grew up in dallas and i first learned about him at a mavericks game, he is so much more than the owner, please welcome mark cuban and our moderator. [applause] >> these are kind of comfy.

take off your shoes, get comfortable. welcome back. you are here in 2008 4 -- 2008 for techcruch. you went on to tv fame and everything. >> shocking. >> to us normal people your list of accomplishments reads like a bucket list. [laughter] >> i hope so. >> you built the company for millions, bought a sports team and won a championship, became a household name and you really dance with the stars. >> that was the best part. >> now you are a privacy expert. >> i wouldn't call anybody a privacy expert it is important. >> are you afraid that you are a public person that your

communication be hacked? >> the genesis was i had the fcc come after me and every message i sent they discovered it and turned it over when we went through discovery and they created their own context -- there was one part where i said i hate to lose talking about the mavericks and when we went to trial they brought that up and said he hates to lose and that's why he sold the stock and did not take a loss. it is crazy that anything you say can create context. from there -- thinking about it if you think of any e-mail or message you send -- the minute you send it you lose ownership but not responsibility. we see it over and again. with cyber dust when you hit send it goes to another user and never touches a hard drive and is never cached anywhere and cannot be recovered or erased and re-created in any way.

it can't be erased and re-created by the nsa or anybody. >> where do you see cyber dust fitting? >> we are all looking for an e-mail 3.0. as we look forward, people are trying to find a better way to filter. e-mail will evolve so if you have to reference and the future and cyber dust will be there to replace a lot of your texting and e-mailing. when i send you a message, you look at it and 30 seconds after you are done reading it, it is gone. in my personal experiences and others, it has increased my e-mail productivity from 25%-30%. a third application, a blast feature where you got all of the words, i have 80,000 followers and like my twitter but the difference when i blast something, the only people who see it are the people who follow me.

because it is in-lines everybody sees it. twitter kind of devolves into a scenario where there are so many trolls that before we tweet anything, we have to be careful and consider how somebody might look at something for it is fun to be a troll unless you are being trolled. with cyber dust, there are no trolls. i blast something else and the -- it is a 1-1. i blasted out a motivational quote and i can respond to each of those personally. on twitter, i do not know anybody will see it because it is a timeline. because there are so many people that are trolls looking for things that we say or looking for responses, people do not speak honestly and openly. you pull those things together and as a result, you shrink our digital footprints. as we go forward, cyber dust will look for ways to shrink and

it will be more important. there is so much out there we do not remember. i have a daughter about to turn 11. i trust her. she's more of an adult than ime a lot of times. she is going to send a very simple message to some idiot kid at some point something like he found my ipad and i sent a message that says i love you for that and that dumbass kid will show all of his buddies. and use it out of context. i will have her use the app and that message will be gone. it will not be something repurposed. if a kid tries to screenshot it, we know it and can deal with it. >> when we were prepared for this interview, you only talk to me on cyber dust which was kind of annoying because i had to remember what we had.

>> it's not annoying. some people are doing it wrong. you are doing it wrong. when you send a message and tap on it, it pins it and you will remember what you said. but for things that we have to remember, we use e-mail. for stuff like we'll be here at this time on this day, it is ok. >> where'd you see it going forward from here? >> you'll see us do a lot of privacy commerce. twitter announced they will do commerce and they did smart things with it. you do not want to be a position where trolls are saying you bought this or that and why didn't you buy this? there will be a lot more privacy involved with commerce as we move forward. you will see as grow as a nice complement for twitter.

twitter is a publication, a promotion but cyber dust is for 1:1 personal communication and extended to e-mail. anything that -- another application that cause -- and that is called get expire. what i use it for when you post a tweet right now, there's no expiration time. there's something about 20,000 30,000 tweets. i can tell you more about you from those tweets than your significant other can. just because we say so much about ourselves and over the years, we leave it there. with get expired, you can set expiration time so it expires in an hour, a minute, a day. you can do the same with facebook posts and tumblr posts. does anybody out here still have their myspace profile up? do you want people looking? and you are still friends with

what's his name. the whole point is over time your digital profile is so big that it has a set we have not began to consider. we will create tools and extending the cyber dust platform to shrink that footprint and let you gain more control of your privacy and protect you from who knows what. >> mr. cuban, switching gears. i called $.50, mr. cent one time. what cyber dust is company number what for you? >> i do not know. 30 plus. >> what drives you to keep founding new companies?

>> business is the ultimate sport to me. dealing with the mavericks, i will talk to our guys and talk about the 48 minutes of the nba game and practice in preparation. there is no sport as competitive as business. it is 24 by seven by 365 by forever. all of these young kids trying to kick your ass and i love to kick your ass. i am so competitive, i just want to win. that's in a nutshell. >> you are not in the valley. >> nobody smart is in the valley. there is a certain culture in the valley and a mini version in l.a. and a minier version in new york. i do not have a problem attracting smart people.

i can get people here. there are a lot of advantages. there's an incredible arbitrage available. we talk about it on "shark tank." if you are from stanford and you have a tech degree or mba or law degree or design and you do not get an $8 million valuation on your startup, you are an idiot. outside of these three areas that same startup may have a $1 million valuation. they're just as many smart people and great business opportunities in aggregate outside of the valley as inside. investing outside and sell it inside to me is the best arbitrage available and that has worked out very well for me. silicon valley as got a -- approach whether vc or angel. a fear of missing out where people throw money at everything because they want to find their

unicorn. hey, i invested in twitter and uber and facebook. what they do not tell you are the other 99% of their portfolio that has failed. that approach doesn't sit well for me. that has led to mistakes. travis was here. i invested in one of his earlier companies. he probably brought it to me first or second uber and we cannot agree on valuation and he found someone else. that's probably the one investment i wish i could get back. i invested in a company off of an e-mail. i got my money back and was thrilled to death. i have 20 other great exits as well. >> if i were to approach you for investment, what is something i should know about to you? to get your money? >> to get my money? i am very transparent with all

of my companies. you should know the companies i invested in and why i invested in what value you can bring to me and your company will be great. a lot of people -- particularly in the valley they sell themselves which is fine and the idea which is ok. but then they figure getting funding is the end all, be all. i got an angel. these people agree with me so it must be a great idea. i hate that approach. i want to know not what your a successful company. how you're going to be insanely cash positive because it makes it easier to continue. >> such a great answer. "shark tank" and these investments. what is something that will make your eyes glaze over instantly?

>> that is easy. when somebody says the market is x billion and basically implies if i get 1/10 of 1% of that x billion, it will be huge, it means nothing. we can all talk about pick an industry and say how big it is going to be it makes it seem so achievable if we get 1%. when in reality, it is no thought or intelligence. that is probably going to turn me off and have me say no. >> on the flip side, what is the best way to do it? >> tell me what your core competency is and why you are great and why it is protectable and to scale. that's it? >> pretty much. >> "shark tank" -- how did you get involved? >> mark burnett came to me when it was first comment on the air but that's when the fcc's assuming so abc would not let me on the show.

when the case got dismissed they came to me and said, it looks like it will be behind you and we know it is bullshit. i came on as a guest and did not think it will last. the show has blown up. i have heard the response that the show is not the business but aspiration, inspiration, telling the whole country the american dream is alive and well. people moved to the valley because they believe in the american dream. in middle america and places where there's not a lot of money, they want to see a family from iowa who came up with a screen protector and is doing one million in sales. or a number of different examples because they can project themselves. i have learned "shark tank" is