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 the number one show watched by

families together. >> why do you think it is? >> if you have an eight-year-old, 12 year old and they are sitting there at home on a friday night saying i like this idea or do not like this idea, i wouldn't pay as much of the evaluation, understand what equity is an approximate gross margin. parents, you will be proud of your kid when their top by that instead of was number one on the charts and tell me about our rio -- arianna grande's latest hit. it is to them being an entrepreneur and being excited about business. you can call it a new age lemonade stand. >> and there's a theater for a -- entrepreneurship and we see that with techcrunch and you are involved.

we have had companies grow up and blow up. switching gears and we'll wrap it up shortly, you recently talked about companies moving overseas to avoid u.s. taxes. what's wrong with trying to make your company more profitable? >> absolutely nothing with making your company more profitable, but who owns your company? shareholders. there is a misconception. the ultimate goal is to see the price of the stock go up and that is wrong. you buy a stock and you want a company to increase your net worth. they are not necessarily the same. i am buying stock, picking another of the inversion companies, all of a sudden, they are moving overseas to avoid the taxes they would be paying.

when one company doesn't into companies and do it, maybe not so much. and that is the trend and companies are buying the little startups in england or some other country and we are losing the revenue. who is making up the difference? we are making up the difference and the marginal cost of our taxes go up 1%, 3%. now because this company is trying to increase their bottom line, my net worth goes down because we have to compensate for that. on the flip side, let's work on changing the tax rate here and come up with solutions. improving profitability is efficient and accountants and cpa's and lawyers will find ways to work around things. it starts as anecdotal and turns

into a flood. i like investing in companies and another part of that. when a company moves overseas and take that tax revenue, there's some impact on services. something has to give until the revenue is made up. it negatively impacts customers. there are tax rates are going up and they may not have as much money available especially a walgreens that do not move overseas and can have a negative impact on their business. we are in this together. >> last question. as the owner of the mavericks, any advice to the owner of the clippers, mr. steve ballmer? >> i e-mailed steve using cyber dust and told him that he shouldn't be so shy. he's got to have a lot of catching up to do. you want to be yourself.

fans want to see an owner that eats, sleep, and breathe the team. one thing to be at microsoft when you are the ceo and maybe a tape of your speech gets leaked and a whole another thing when one of the big differences between running a microsoft or any company is there is no beat reporters that have to write about you every day. there are not 20 blogs happened to come up with something everyday like for the mavericks or clippers. everything he does will be recorded. it will be interesting to see how he is on the sidelines whether he becomes aware of the camera or stays himself. i hope he is crazy. it will give me a sidekick. i do not give a shit. it will be 15 years in january

and you have not seen me mellow or slow down. if you do not like it, that is your problem. >> will the mavericks make it to the playoffs? >> i am ready to go. >> mark, thank you for your time. >> i appreciate it. [applause] >> all right. how did you feel about that? oh, come on, we are working hard up here. how did you feel? our next panel is really the main question of disrupt if you are an entrepreneur or investor -- what will we be funding? we have amazing investors that will join us. omar from sequoia, cowboy ventures, greylock, and danny and our moderator. clap. ♪

the microphone will work eventually. is it working now? i skipped over the disrupt vine thing. we are doing three competitions. how many people still use vine? it is like six of you. you have great shots at winning. please disrupt the vine and will be doing one maybe around instagram and maybe one around twitter. look for that, we have cool prizes. does anybody have a question? no? okay. why is it so gold so? cold?

there are like one billion bodies and if we do not keep it cold, you would come plane. -- complain. yes, you would. you would rather it be warmer? ok, i will spend my time negotiating and see what i can do for you and come back and let you know where we are with the a/c. do you have an optimal temperature? 75? 73? 75, i will aim at 75. the a/c is the most important thing but let's focus on the investors. you want to hear their names again? susan said yeah.

omar from sequoia, cowboy ventures, james from greylock, danny from index ventures and our co-editor, matthew. [applause] >> all right. my microphone is live this time. welcome, welcome to the stage for the stage. you know what i will do? i will do this. that way i can see everybody. ok. a lot of things we could talk about. one of the things interesting right now is the issue we have with hiring engineers in the valley. it is becoming so easy, i use "easy," for people to get funded

and do their thing and the tools are available. what happens when it is easier to start a company and get funding than it is to hire an engineer? >> so, i will take it. look, i think, the paradoxical but important for a ceo running a company in this environment is you have to recognize the people working for you, the best people probably will at some point want to start their own companies. you have to actually be focus on how you help them to accomplish their goal and be great as opposed to filling a role in your company. i have a story on this.

i recently, on a board, and the ceo asked me to give a talk at the company to the engineer and product team about how to start a company. like the initial thoughts on having somebody doing that for your team as asking someone train your girlfriend how to meet guys in a bar, right? the paradoxical part if you want to attract and keep awesome people who are entrepreneurial you have to make them feel and back up you are going to support them to accomplish what they want to accomplish in their careers. >> if you will look at the companies out there, maybe a grouping, what do think the dream job for not engineers? you can answer with one of your portfolio companies. if you had to pick one, what would you pick? the engineer that would want to work at a company, where would it be? >> what i would say is it

depends on what the engineering is looking for. i mean, a lot of jobs of a venture capitalist is to be a recruiter and be a headhunter. in many different cases, it depends on how early and how much responsibility the engineer wants and are they going to be thinking about having more of a specific role in a more mature company? or do they want a more not impactful or more defining role in terms of culture by joining an earlier company? if you are joining a company like essy, very different from joining a company like goodx. but you are going to have different priorities. >> let's shift the topic. a lot of the attention that

comes from the press side of things is based on the founders of companies acting like the mini tyrants. sometimes they say things that are pretty insensitive or deemed insensitive or have a calm place about the way they handle their business life every mercenary and out there. these kind of sounders, does it matter when you're talking to an investor whether you choose to put your money there? it will be a problem down the road or it doesn't matter? is it a factor? >> the person you are investing in or the teams you are looking to invest is one of the key factors in making a decision. this is not just you were trying to put your money somewhere and walk away and see what happens. you are joining the team and trying to partner and work with this person.

their demeanor, the way they run the business and if you think they are ethical and accomplish goals, all of those things factor. those are primary topics of conversation. >> there's a distinction between somebody who might be difficult to work with or somebody who is perceived as difficult and some by the unethical. i have met many great entrepreneurs can be difficult to work with. this incredible conviction or force to make something happen and i find working with people can be challenging to work with. that is an important distinction. the other quality is most entrepreneurs who are successful are doing that for the first time so you cannot look and say where they successful and the other company they started? you can understand if somebody is self-aware and open to

feedback and will have a compounded daily learning rate that enables the entrepreneur to scale. >> that scenario where investors and the board can help where a lot of these companies especially companies for a long time do not have a head of hr. some of the bad behavior maybe because they are not really getting coached. first-time ceos would've nowhere to professional organizations in the past and coaches or investors or members are not given them input on the kind of environment that they should be running, professional that will attract the best talent. that is probably an opportunity for the investment community to do a better job of setting expectations for some of the teams like the best way to run a company? >> you have young entrepreneurs and they have this promotion that people are difficult to work with and you can create a situation where somebody is not

difficult and maybe i should be more of a jerk and more aggressive. at your first question of how hard it is to hire and retain people, it is not that hard to be a decent leader and we should all look for that. there are some people harder than others. in general, it is important. easy to work for. >> that cultural front, when it comes time to invest in a company, do you consider social good components of a company? whether it contributes to the populace or a positive impact on carbon footprint? do you count that as a factor? one of your major checkpoints when considering investing in a company? >> i guess what we have come to

realize is it is actually from a generational standpoint, we are seeing millennials expect a social commitment and are looking for businesses that have social responsibility being integral to their business model to actually being interested in the business. and we would say is we do not need them as being mutually exclusive but in the businesses that have social responsibility as far as the business model are likely to be the more successful in their space. i was mentioning etsy before and the reason it has hit a nerve because of the customer wants to be able to help that made her make their vocation their career. and their passion but comes the vocation. similarly with farmers and patrion.

i suspect that this question is going to be less and less relevant over time and going to be part of the business models. >> if you're talking about cultural things and in the valley, something we need to talk about. there seems to the an abundance of mail founders versus female. i do not and we need to belabor that, it is a fact. we do not need to tell but if it is true. the important question is how to make the environment more inviting or what is responsible for that disparity and how do we change that? not asking you to fix it on stage but it would be nice if you could. it is important to think about why. any ideas about how it might be fixed? >> i think -- there's a number of issues that contribute to it.

fundamentally, it starts with education around technology and engineering. it has to do with the framing of the problem. a lot of the times the problem is find as we need to do this good thing by bringing more women alike into some kind of -- something as a favor instead of necessary. we are all going to -- there are business outcomes that happen that are negative by not having more women in these positions and started these companies. a whole society. by looking at a real problem like a favor, it will change the perception of people and what they are willing to do to fix it. >> i've talked about this for a long time.

there is a broad spectrum of stuff happening in companies from the extreme like gender pay gap which are illegal. some people do not realize those things are illegal and put your company as a legal risk. and the softer on the spectrum around culture and people feeling like they are not supported or favoritism or things people say that our unintended consequences of feeling uncomfortable or not knowing the right things to say. i feel like there's an opportunity for a training program or something to go into companies to help audit where they are in terms of do they have a fair environment and how to unpack the bias stuff that happens every day. but i feel like we do not have the schools we need what i am

hoping that it is coming out because every day there feels like there's a new article or or example of bad stuff happening. as a community, clomid together for systemic change instead of an ice bucket challenge that does not create systemic change. >> yeah, the only thing i will say to that point is, to go point of auditing. we do a regular audit of how many of our companies of the 140 companies we have have women as leaders or founders. we are at 15% which is surprisingly high but a massive issue. further amplified by looking at my portfolio and most of my customers are women. this massive disconnect.

part of it is thinking, ok, can we find a partner that obviously could complement the work we are doing? there are a lot of characters and the other is creating, using those founders to soap or to new founders and entrepreneurs we speak to. it is clearly something that has to be increasingly address. >> i -- one observation since i've been a great lot and web been around for 50 years, a long time. if you look at apartments of greylock several decades ago, it was mostly white, protestant men in blue blazers. when you look at how the industry has evolved, most of my partners are asian, indian, and

jewish which mirrors what has happened in terms. but still male. we have talked about this issue a lot internally and i think the proportion of women who are founders and proportion of women who are venture capitalist, they are linked. the point that danny touched on, having a generation of companies where there are women ceo's and founders and a large, successful outcomes which are coming with higher percentage is going to have contribute. it is a real issue. >> i hope james is right. i feel like a power move will be for a high profile top vc firm to announce 2 new female vc's and i feel like that's what happened and hope it will happen and who will do it? i think they will basically get

the most attention and kudos for making the biggest change sooner rather than later. >> i think we have fixed all of that so should be all good for tomorrow. if you -- how do you tell somebody they are not a good founder? somebody walks in a give you their pitch and hear them out and they leave a little to themselves, they are not the right person. this is a sensitive situation and they come with hopes and dreams. how do you tell them, do not do this? >> i would be good at delivering that message? [laughter] what i would say is that typically what we see is that the most successful founders are product oriented and very

instinctual around the market opportunities they are going after. tim from pandora, playing at the piano bar is struggling. we are looking for a product experience that emanates from an experience. that is one thing that's potential disconnect. there are companies that have been started by folks who on paper do not look like they're are out of central casting who are successful companies. several folks invest in marketplace businesses. you look at some the most successful marketplace businesses and they have founders who have not done it before and not out of central casting. they are incredibly resilient, scrappy, aggressive in making it happen. the marketplace, it is hard to get liquidity.

once you do, it can be hard to kill your business. our reflexes, this instinctual founder with the right background. there are plenty of exceptions. >> like the pivot? i believe this person is scrappy enough but i would tell them no about this product but i like them so much i want them? >> i'm not saying the pivot but domain experience or situations where somebody isn't out of central casting but they are working. ma be better than appears on the surface or the right grit and determination and focus to make the business work. >> i guess, i would say, you should be able to tell someone you are meeting with who is the founder and not a good founder in the meeting. you should not have to do a

follow-up. if you cannot help them in that meeting, something is wrong. in a lot of ways, in my case and probably in other folks' cases there is no central casting for a founder. you are looking for people crazy enough to go with an entrepreneurial venture that has more chances not to succeed. it is difficult to find the pattern recognition. if they are not clearly going to be successful as a founder, it obvious pretty quickly. the idea is not enough to actually make a business succeed. all of a sudden in my head, if the person is clearly of high caliber, high intellect of an not a founder, i'm going back to my headhunting database of all the companies i am thinking through and pitching them. yeah, maybe you need a little more experience working with

another company and maybe you would like to do that before you start on this arena here are the five reasons why this is not a great idea or you are not ready. >> it is dangerous to be that categorical to think somebody is not a good founder forever. things change, people change. from my own experience, i was probably not a good founder by my first or second in my fifth worked out. if along the way somebody told me i was not a good founder, maybe i would've stopped trying. you might want to say not now or try doing this and maybe one more job erie not a good founder forever. >> i agree. it is rare. i'm trying to think of a founder that has not had bombs in a road and there will be multiple step functions. -- bumps in the road. they should be up to have that

conversation so it's not out of the blue. not what you walk in and they say you are doing a bad job but a constant dialogue. do you have a good enough team to complement you and how are we going to help you develop? there are lots of examples of folks i've worked with who have not always been deemed to be great founders but to build great companies. it does not happen miraculously, you have to work on it. >> excellent. we have 40 seconds left. what is the top 2 most interesting companies you're not invested in? >> i would say uber is one of them.

and -- i will think about the second. >> luber and -- uber and seranos. >> i would say -- and know me. >> i would probably say, airbnb and what another one? docker. quick got another one? very good. i appreciate it. >> i have breaking. super important. the a/c has been turned down. i know. i went down there with an iron fist. my audience is serious.

the sun is coming out. feedback if you get too hot. quick announcement. i know you some, there are 400 startups and that is just today. start up allie is super important and all really cool. you have the opportunity to vote on who could be plucked from start up alley and participate today. voting closes at 3:00 and i encourage you, head out there and figure out who is your favorite". the website is along. we'll have it up on the screen soon. -- the website is long. i think it is -- i do not know why they gave it to me to memorize. we will bring out our next guest, elizabeth holmes. give her a warm welcome.

>> ok, i will. i am john cheaper. the woman i will be interviewing needs no introduction. we are going to have her first here for a techcrunch disrupt event in which i will do to my blood drawn live on stage right now so you can see what the theranos office looks like. we have a phlebotomist who will come out. if anybody is squeamish him i would urge you to look away while the magic happens, if the magic happens. if you can come out. no. move that up here. get that right there. i am sorry very -- i am sorry. we will get to the meat of the interview. what does this entail?

all right. there are vials, for those of you who cannot see what is happening. a traditional process, i would be rolling up my sleeves and people would be tapping my same and a process -- my vein and a process. this the best way to go about it. how many times have you had it done? >> probably tens of thousands. all of the time. >> when was the first time you did it? i understand you are a little squeamish about bloody yourself, so you may be the first chemophobia to start a -- hemaphobe to start a bloody business. how did you prep the first time?

>> needles is the only thing i've ever been scared of. i figured the first time i did and i had to do it in front of a group of clients and investors so no matter what it would look painless but that i would have to make it painless. and i did. it is psychological once you do a you learn it does not hurt. and exactly what you are doing here, the process we developed replaces traditional phlebotomy or practice of getting big tubes of blood from the arm with these tiny nanos, which collect a few drops. >> we are ready and i am about to get poked. we will see what happens. >> tell us if you think it is painless. >> oh, good god.

it is not started yet. there it goes and there it is. it was done quick and painless. i have had more pain her parents for this interview and then getting my blood drawn right now. there we go. i appreciate it. you were installed -- in stealh mode for 11 years. how did no information leak? while you were doing this development and you cannot say anything? >> we had a lot of work to do. this is a very big mission and goal. we wanted to build out the solution before we talked about it and as a result, we do not have a website. the clients we did have were

under nondisclosure so we do not have to talk about what we working on before we finished it. and so, for about 10 years there was no press release or anything in the media. and the last fall when we reached a point where we can make it accessible directly, we began to talk about it. it was very simple. do not talk about it. >> the first will is do not talk about theranos. when you approached customers while in stealth mode and tell them about your vision and your business, is that it? fantastic. >> you want to see it? >> do you want to see it? these are the amount to draw a test.

we will see you later. thank you so much. you are trying to get these customers, how do you get them to sort of commit with sight unseen to a technology that you are still developing? >> it is at a point now in which is directly available to people as an alternative to having big needles stuck in their arms. and in the approach we took was to have people try it out and see how it performed and if it performed well and work with them. and lots of our work was for pharmaceutical companies and there are not that many pharmaceutical companies are as the book and relationships, we had the opportunity to deploy our system and build our infrastructure.

>> you have raised $400 million and eight $9 billion valuation. how much revenue are you generating and did you start generating as the money was coming in and when did the first cash come in and where are you are with profitability and the need for additional? >> we have been growing for some time. we first started generating cash operation store our work with pharmaceutical companies a year or two after i started the company. and that has been the platform on which we build the business. i have tried early to get away from what i called the equity on the local court redo not really have -- umbilical cord where you do not really have the business and that's been the foundation for growth. we are a private company.

>> you can talk a little bit about it and give me a ballpark. on a 9 billion valuation, we will get back to that. so many companies have tilted at his windmill of driving down costs of testing at making them more accessible. how happy i'll managed to do it? my blood is just drawn and i want to get tested for different elements that i think i may have because i am paranoid about all of that stuff. what happens next in the process? can you walk me through what my blood would go through as it gets tested? >> absolutely. we've redevelop the laboratory from end to end to make it

possible. one element is the tiny samples and the cost. the infrastructure we have built, we have begun opening what we call our wellness centers which are our locations located inside of walgreens pharmacies. we have announced our national partnership with walgreens and in the context of our expansion across the u.s. when somebody comes into the wellness center, we will scan their insurance card and their identification and build an electronic infrastructure to do real-time eligibility for labs. when you clue me in, you knowledge of the testing will cost you and what your deductible is. >> how much is a typical test for a normal sword -- sort of array of blood test? >> when we announce our infrastructure last year, we

began pricing our tests at 50% off of medicare reimbursement thresholds to exactly change the cost in terms of testing costs. system then, where further reduced the rate at which we make those tests available in many cases, 90% off of medicare reimbursement. >> 90%? what does that mean for someone who in a minimal wage and job or may not have insurance or the bare minimum? >> it means you can get a test for $1.99. >> and act now? >> and that is now? >> today. >> it is pretty cool.

when you started off with this vision, i am sorry -- i jumped ahead. that's the insurance component and pricing. on the back end with the lab what is happening with this miniscule amount of blood that is enabling you? >> from the time you're in the wellness center, once the price point has been identified for someone so they know that how the deductible and how much it will cost and they can decide whether they want to purchase the service as opposed to getting a bill in the mail three months later for some unknown amount, the little nanotainer tracks the simple. when they go to our labs, we redevelop all of the chemistry associated with running these past on traditional forms to make it possible to run any laboratory test from a tiny

droplet of luck. what will happen is it will be run through and we have built out analytical systems on which to run the chemistry and traditional instrumentation requires a much larger tubes of blood. it will be electronically sent to the ordering physician and integrated into their emr systems. >> when we spoke you mentioned you had done work with the military on this. what are the applications there and how do you see sort of the mrs. extending beyond wellness centers at a walgreens -- the sort of business extending beyond wellness centers at walgreens? >> there is a huge opportunity in decentralizing the testing infrastructure to make

comprehensive laboratory information and information is important because it drives 70% of clinical decisions accessible as the time it matters. and the trauma context, the ability to get close to real-time data in the context of being able to stabilize someone in the field, for example, can make a difference in terms of lives saved something we are inspired by. and the context of remote areas where there is no central laboratory infrastructure, the ability to put in place a decentralized infrastructure leapfrogging over the last unconventional infrastructure similar to what cell phones and digital landmines and china.

it is significant. if you can put a decentralized effort structure in place, you can lay the foundation for decentralizing delivery because you have what you need. you lay your -- >> you layer remote health care consultations on top of a remote testing and you have an ability to provide rudimentary health care globally. >> exactly. >> do you want to on the other piece, remote consultation -- own the other piece, remote consultation? >> we have built in software and web been talking about one of our favorite quotes software will eat the world every the communication piece is there. we are a laboratory company, what we do is make it

accessible and a time and place that matters. there is the opportunity to link in. >> have you talked to the folks doing remote care now? we will give you five cents every time somebody says software is the world. that makes sense. back to what we were talking about, have you been in conversation with folks doing this type of remote consultation already? >> we have been in contact with people attempting to provide care in rural areas and struggling because they do not have access to laboratory data and comprehensive data to be up to provide the kind of care needed. that's going to be an important area. >> you have what is perhaps the

most accomplished aboard i have ever seen. dam, bill -- sam, bill, former senators for you have an actual. you have david boys as your lawyer. why stack the deck so much with so many people? and kissinger is on your board. why do you need all of these guys? what is it about the industry that makes you collect civil servants of the highest caliber? >> we have never thought about as stacking the deck. but we do believe that technology has an incredible role to play in enabling resolution of policy issues. in health care, the ability to use technology, what we are

doing and pricing, the way we are for medicare and medicaid is saving medicare and medicaid hundreds of billions of dollars on an annual basis. with the opportunity to leverage what this country does so well in terms of creativity and innovation to facilitate policy change, we have been very lucky to be able to get people who really understand what it means to be able to make a systemic change in the world and to be able to advise us as we work to do that in reducing health care costs and changing outcomes. >> we have both spent time in china and china is very big on five-year plans. when you look out for the next five years, where do you see the company? what is the goal for the next five years? where are you all going to be?

>> the depole is access for every person no matter how much money they have or where they live. and access for us in part means these tiny samples because 40 to 60% of people in our country don't get tested because they're scared of needles or they can't afford it. it also means operating in the location that are closest to where people live or where they get care. and that's both in our country as well as in other places throughout the world. and that's what we want to do. >> so do you start selling these, the technology to people or licensing it out to set up these centers anywhere? or do you yourself man and operate centers at a low cost around the country, around the world? >> right now we're operating these centers inside of walgreen's in the u.s. outside of the u.s., it will be a different model and it really

depends on where you are. and so we're looking at that sort of systemically based on which location we go first and what local infrastructure is already in place. or whether we need to actually develop that infrastructure ourselves. >> are there any other partners other than walgreens that you are going to market with? >> well, we've announced our relationships with hospital systems. and that's something that is really important in the context of being able to change the inpatient process in terms of the amount of blood and transfusions associated with the amount of blood that people have to get taken in the hospital settings. but also as these hospitals increasingly become accountable care organizations, the need to save money and therefore keep people out of the hospital. and that's something we're very focused on through our retail work. >> what is the biggest obstacle to the adoption of this stuff? when you think about the

problems that you have scaling, what is the thing that sort of worries you the most? >> well, i think as we build our company, making sure we have the right people is what it's all about. and as we get the right people we can make sure that the service we provide person by person is excellent. and we have an extremely long-term mindset with respect to the opportunity to realize this mission so what we care most about is literally person by person have we created a wonderful experience. and pacing our growth around that. so people in excellence and service. >> i think we are actually out of times. i appreciate it very much. thank you. [applause]

>> now that i solved your first world problems, i am going to bring up the preern in ren dense at the united nations. she also has some fun news to share with us. >> hey everybody. thank you for coming out. thank you for coming to make your announcement today. >> hi, everybody. >> first off, she is not related to al gore so stop asking if her dad invented the internet. >> my dad in texas did. no. >> so up until today what have you been working on? >> so it's been amazing with the united nations foundation. i've actually been working with all of you to really understand how your companies can save lives, whether they be profitable solutions social

solutions, and the u.n. has been open for business to talk innovation scale innovation. but my favorite is what's going on in emerging economies that are disrupting everything. >> again, that's becoming a huge area for startups. facebook today announced that it has 100 million users in africa 50% of the population connected there, everyone trying to work on these issues. it seems like there's a lot to be done to bring tech to the developing world. but you're going to be working on something new. today you are announcing that you are the new entrepreneur in residence at del computer. >> that's right. >> that's awesome. >> yeah. [applause] >> so what does that mean? >> i'll let you know. i'm going to have a baby and then i'm going to go figure that out. no. really excited. my first conversation with michael dell was that technology truly is the only force that is positively enabling and enhancing the human potential.

and so the united nations and dell are not that far apart when it comes to understanding that if we don't advance technology, make it accessible for all -- and i mean everyone -- that we are not going to succeed. and the second area is just all of you as entrepreneurs, we need 500 million jobs by 2020 for the eligible workforce and they're coming from entrepreneurs. 70% of jobs are coming from entrepreneurs globally. 90% in emerging economies. so we're collectively going to be pushing for the policies that are needed to support entrepreneurs. >> so it makes it why dell would want to have your help with those kind of things if they're trying to bring their technologies to the world. but why did you pick dell? >> well, we picked each other. we are really proud that michael dell became the first global advocate for entrepreneurship for the united nations foundation and we developed a relationship and just understood that if we don't work with entrepreneurs globally to give them capital,

to help them access technology better talents reduce regulations, that we're not going to get the job creation that we need we're not going to get to the policies that we need. so i think we stood on common ground there pretty quickly. >> you talked a lot about global solutions. like china created these big fixes. that seems like a buzz word straight out of the enterprise world that i can't say i don't expect from dell. but what does that mean? what's an example of a global solution? >> if you look at down on your phone, we have more phones than people by the end of the year. the mobile phone in my mind has been a global solution that's changing everything. if you look at how we use it now for data collection to reduce the traction of disease, for example. with ebola happening right now there's no way without the technology that we have, for example, to track and compartment lies that and try and stop it. so it can also be something

completely innovative. there's some great companies out here that all of you have. drones, for example, have such a bad name. but we're using them for disemination of vaccines and tracking refugees and a lot of very positive things in the world. so solutions can be profitable and save lives. >> silicon valley's tech eco system sometimes gets a bad rap about being a bunch of people making money to make money or making money to make themselves rich. what have you learned at your time in the u.n. that can help us to understand what we can do more to contribute. i know you worked with bill and melinda gates and they signed the giving pledge to give away most of their money in their lifetime. but what about like the average tech worker? well off but not super rich? like the people in our audience. what can they do? what can we be expecting these ranks of tech workers to be able to do to donate and volunteer and help? >> all of you can very quickly

look at your triple bottom line. it's something i talk about a lot. that the day you start your company you can understand, yes, how it's going to be profitable but also how does it impact the people on the planet? most entrepreneurs are going to be a long time before they can write a check and that's ok. but their technology might have an application that can save a life, that can advance the work of a community around them whether it's here in san francisco or it's in a refugee camp. and you would be surprised about all the solutions from unicef to agencies that everyone is looking for in these startup communities. so it is not just about writing checks. it's about understanding how your technology can save lives. >> but sometimes there has to be a trade-off where you allocate your resources if you're trying to make a difference or not. if you're a big public company that means answering to shareholders who constantly want more profit. and if you're assertive you've got to make the next milestones so companies want to keep

investing in you. how do you find that balance? >> i think this generation entrepreneurs are looking at it from the day they open their business. so it's part of a business plan. we understand that consumers want that in companies that they are investing in, they are actually looking at the world around them. the reason i was so attracted to dell is they were private, public private again. but they've always maintained this commitment to entrepreneurship, to their sustainability their profitability. but most of all -- and this is what's important -- that they provided their enterprise level solutions to companies whether they were with fen people or it was a multibillion dollar company. that type of thinking that we really need to support everyone for job creation, for the policies that we need. that's going to fuel all of these businesses to be successful. >> personally i hope the investors start to step up and say we're a social returns focused firm or this is something that matters to us.

not just about profits. we like a lot of profit but even more social good than just more profit. i would love to see more come forward and talk about that. i think you are going to have a better time to recruit companies to become part of your portfolio if you are legitimately trying to make a better impact in the world. when it comes to dell, they do a lot of humanitarian efforts. but there's a lot of talk about when is it ok to make money saving a life? and how does dell -- how do they handle that? how do they decide what their margins are? do we make more money or save more lives? >> i hope for everyone that the debate on can you be profitable and save lives? actually dies -- no pun intended -- very soon. because you can be a profitable company and look at the technology you're using with life-saving applications. multiple examples are look what

dell's doing with economics. they have thousands of units of data looking at kids who have cancer and trying to make very tough life-saving decisions. dell goes in uses their clout and data and everything in their analytics and shortens that from years down to minutes. i'm ok if my little girl's life is being saved. right? most entrepreneurs 90% or so in companies are actually solving problems with their profitable companies. they're going to be around a lot longer than charitable donations are going to be. so i think it's fine to be profitable and saving a life. >> they're funding more nonprofit companies, that can simultaneously make money while investing in others. i really like some of the companies that -- for instance, there's one that will educate families in india about how to care for people that would normally need to be in the

hospital but how to give them home medical care. and they fund that by selling that same service in the bay area and teaching richer western families how to be able to do that same care at home and taking that service giving it away for free in the developing world. that sounds like a cushy job to me you get to be an entrepreneur without having to worry about it. >> i have feel like i have a lot of pressure on. >> you really do right now. >> i have a lot of pressure. i'm actually due this afternoon. so we've got to wrap this up. no. >> i take that -- >> ok. >> no. dell is an incredible company. and the pressure i feel is that michael dell and the whole company have made a huge commitment to entrepreneurs that they're providing technology but they're also going to work on policy objectives that take this 8 out of 10 entrepreneur fail rates

down and help create 500 million jobs through the entrepreneurs that they work with. that's a lot of worning to do. i don't think there's any cushion in that at all. but they're committed to it. i'm committed to it. we're excited about it. and if technology is the fabric that binds all of us, i think this is a good company to work for. >> i'm really excited to talk with somebody whose heart is so aligned with helping the world and not just working for a company. thanks for coming and making your announcement here. >> thank you. >> thank you, everyone.

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>> the guard towers are gone but the memories comb flooding back for the people who had lost such a big part of their childhood. for many released after the war, some buried the memories. and with it the history of this

camp. now more than 60 years later -- >> tonight on q&a. >> the government comes to the fathers and says we have a deal for you. we will reunite you and your families in the family internment camp if you will agreed to go voluntarily. and then i discovered what the real secret of the camp was. they also had to agree to voluntarily repatriate to germany and to japan if the government decided they needed to be repatriated. so the truth of the matter is that the crystal city camp was humanely administered by the ins. but the special war divisions of the department of states used it as roosevelt ds primary

prisoner exchange. it was the center of his prisoner exchange program. >> tonight at 8:00 eastern and pacific.

>> thank you for being here as we kick off the national governors association 2015 winter meeting. i'm standing here with my

colleague and good friend from utah who is the vice chair of m.g.a. and chairs the m.g.a. center for best practices. as you probably know gary and i have -- you number of you were here for the annual state address and we have welcomed 12 new governors. we all share the ambitious agenda to making sure our states keep moving forward. we also recognize as this country moves forward states are leading the way. states are navigating through the partisan gridlock, we are developing solutions where testing one solution against another. i think in many wayse have become the primary places of action to a large part because we don't have the luxury of inaction. just last month our layoff counter counterparticipants were sworn in with the 114th congress and we hope the new congress will provide clean

slate to address the challenges facing our states and facing the country. we certainly look forward to this fresh start with federal partners and we encourage them to look to our states as they put together their agendas. we recognize the difficulty of the conversations right now and the passes and intensity of emotions sometimes make gridlock unavoidable. but again when you are the governor of a state you don't have that luxury. what we hold true is that we continue to embrace what we call flexible federalism which is the ability to give states enough flexibility to improve programs and policies and to -- the federal government should

support those efforts toward improvement. the winter meeting for the m.g.a. always provides us an opportunity to discuss a number of important issues with members of congress and with the president and his administration. we are also going to spend a certain amount of time discussing the chair's initiative which this year is called delivering results. we spent a lot of time working on this. i know i spent a lot of time thinking about it. government touches many different people's lives and our goal is to make sure the governor can work with the most effective and ever way possible to deliver end results. people can argue about whether government should be larger or smaller but government needs to work. delivering results has three areas of focus for governors of states to make sure we hire, develop the best and celebratest team and we arable

to retain that talent. how to develop innovative performance improvement, practices that use data and evidence to enhance results that create systems that really emphasize continuous improvement. and lastly how to improve regulations and requirements that protect the public but at the same time make it easy to work with state government and don't hinder economic growth and make sure the process of creating resumes and regulations is lean and simple as possible and at the same time protect the public and maintain a level playing field. in april i will host governors in colorado for a summit on these three issues. how we hire, how we have continuous improvement and how we create appropriate regulation. and we will then sum up the progress of that year and make that information hopefully

available it all gives. today we will focus our opening session on how to deliver results. we will be joined by one of the great restaurateurs in the history of the united states danny meyer who will discuss his ability to create innovation in a restaurant setting and to maintain quality and customer service as it affected his restaurant. it is very similar to what governors all offense the country deal with on a daily basis. that is the ability to take systemic improvements and transform them into a higher level of service and create a culture in the state workforce that will improve the quality of lives of citizens is one thing danny myers a nationally respected expert on. we will participate in the special session about where the economy is headed. it will be moderated by maria anchor from

fox business network and fox news channel. tomorrow the economic development commerce committee will continue with the theme of growth. governors will talk about state opportunities presented from manufacturing and precision manufacturing revolution. economic development and job creation is critical to the future of every state. it is in the list of any top priorities of any governor. earlier this month we announced m.g.a. will host the first ever summit of north american governors to discuss economic development and trade through improvements and innovation in infrastructure, through innovation in supply chain management and discussing education, energy, technology and culture.

this will be the first time we have gotten all the governors from mexico and united states and premiers from canada together in one place. also on saturday morning the educational workforce -- sunday morning -- will discuss federal k-12 policies and work for students and states. gives believe the policy should build on state policies to support effective teachers and leaders and should work toward accelerating ongoing state led innovation. we have long called for reauthorization of the elementary and secondary education act that recognizes the need for maximum flexibility as states meet the goals and really work hard to make sure they are putting a great teacher in front of every classroom. health and human services will talk about driving better value

in healthcare. governors are always focused around healthcare one way or another especially the last few years. governors are increasingly pushing to align economic incentives on public and private papers and move away from the fee for service models toward value based pods more focused on keeping people healthy. many governors are starting that with medicaid. the alabama governor will join the committee and talk about their efforts. this weekend we will have a chance to discuss the emerging healthcare landscape with the health and human services secretary sylvia burwell who has been open and flexible to governors trying to work with in their healthcare. last year the healthcare task force gave the president a series of recommendations including streamlining process

for medicaid allowing to share in state driven efforts and delivering a pathway to permanency they were not just temporary but they could become permanent. governors have been working with the department to make these recommendations a reality and we will make sure we continue that conversation in the governors only session. monday we vote on the policies and guides and advocacy of the association and wrap up the weekend with the annual meeting with the president. as you can see we've got plenty to do and we have gotten a lot done but there is plenty more to do and we have a lot of work. we have a very busy weekend ahead of us. now i would like to introduce my cohort in all of this our vice chair of m.g.a. and very able governor gary herbert of utah. >> thank you.

i hope people appreciate the great leadership of john and his common sense approach to governance. as a former businessman and former mayor, he understands the bottom up nature of getting good results and the business principles that we try to employ as much as we can in government to give us good results. so, i appreciate and applaud his listen and his ambition here to help us come together in a bipartisan way with the national governors association. from the great state of colorado who we in utah refer to as eastern utah, doing some â >> there it goes. >> and they call us western colorado, too, i'm sure. we are looking forward to a very productive few days with the governors. i would just say there seems to

be a growing awareness in a congress and others here in this town we need to look to the states and governors for some resource, for some experience. we are the laboratories of democracy and experimenting things and i believe that there's an opportunity for us maybe more so than in past years to really work in concert with the congress and getting things done on many different fronts. there's a number of issues that john already touched upon but there are opportunities. if you will recall in the vein of become in governor tommy thompson's day in wisconsin and golf angler in michigan and governor levitt in utah working in a bipartisan way had welfare reform. and was eventually we had legislation that was created by the states and governors and passed and signed into law by president bill clinton. that is the way it should work.

the national governors association provides us with an opportunity of governors to come together have healthy discussion and see where we can unite to help influence policy here in washington, d.c. with the congress. and whether that is involvement with our economic development and commerce committee which will meet today as mentioned government bentley and shemlen from alabama and vermont respectively have been called upon to testify before the senate committee on environment and public works to discuss some long-term fixes on our transportation reauthorization for example. as mentioned, we were talking about flexible federalism. there needs to be the opportunity for us in states the common theme you will hear and most everything we discuss is give the states more autonomy and be flexibility to do what we need to do in our own back yards and try to stay

away of one size fits all solution that doesn't necessarily fit with all the respective states. a new and emerging issue that is growing concern i see the state department some of the hacking taking place and not being able to solve that but cybersecurity is a significant issue. this new frontier of how people steal information and money online and through hacking cybersecurity is a big issue. we would ask the congress to work, and federal government to work with states as we try to find solutions to that issue. our national guard, we have a lot of expertise from the private sector that are available to help in this issue and i am working together we can find some solutions. we will be having speaking with us the u.s. department homeland security secretary jeh johnson will come to have that discussion with us and see what we can do in partnership. we will have experts from the

public and private sectors. we will able to address a very significant and growing problem here in our communities. we are also concerned -- i mentioned the national guard -- aware concerned about as the federal government tries to balance their budget which we applaud we have to live within our means and we don't have the luxury of printing money so we applaud the effort to be fiscally prudent but don't overlook the opportunities to have a more efficient national defense by utilizing the national guards of our states. we are in fact a very good bang for the taxpayer's dollars and the intent and approach we have from the pentagon to take away some of our air capability some of our apache helicopters and things and replace them

with blackhawks probably doesn't make a lot of fiscal sense when it comes to having a ready army so we are concerned about that. we have said no, we will say no again. we hope the congress will listen to us as they go about budgeting recognizing the cost effectiveness we get with the national guard in our respective states. it would be probably a move backwards i think if they don't understand the blessing that we have with our national guards. also areas that are of concern, energy, environmental things and how they dovetail together. we recognize that what the public wants is sustainable energy. and they also want cleaner energy. but they also want it to be affordable. sometimes those butt up against each other but the states are doing a great job as far as developing their resources within their boundaries and doing them in responsible ways that respect

the environment but understand the need to develop more energy for use of consumers not just here but around the world in the demands of energy that there are. so we will discuss the natural resources committee sunday in fact i think we have the director -- the administrator from the e.p.a. will come and we will talk about some of those issues and rule 11-d some states that are really involved with a lot of coal development and question of how we go forward and respect the need and demand for energy and affordable way and understand the need for cleaning up the environment and making sure we are doing it in a responsible way as we develop our energy resources. we also want to talk about along with that some regulatory climate. in states we are leading the way in trying to have regulation reform. again, sometimes we have regulations

that are well intended but so cumbersome that they become counterproductive to the economy and don't do anything to really help in leveling playing fields or protecting the public so we will talk about that on this issue and others when it comes to environment and business community. one such issue is the water the u.s. rule that has the potential to change who has oversight on water and whether it fallsen the state regulation which is historically the case or shifted to federal regulation. and maybe cause some problems for the private sector and doesn't benefit the public. we will work with our coordination efforts with the e.p.a. and other federal regulations. last but not least one that is past due we ought to resolve and have an opportunity this year with the states working with the leadership in the house and senate on both sides of the aisle and that is what we refer to as the market street fairness act. this is an

issue of remote sales where we are not collecting taxes that are owed but can't collect because of online and remote sales. i spent 15 years of discussion and debate and we said it is time to act. we have some proposals out there and i think as states the congress i should think will listen to with all the partisanship that you hear about particularly here in washington, d.c. it is nice to see the states and congress coming together on this issue. so, in a bipartisan effort and i think there is strong support on both sides of the aisle we should get this passed hopefully this congress. so, i'm looking forward to as states and m.g.a. working with congress to get that done. we have an ambitious agenda. we have as he mentioned some summits that are coming up in april in the governor's initiative on making government

work and don't we all wish that could happen, that government could work and be more ever. and clearly there is room for improvement. we ought not be afraid of trying new things and finding new opportunities and ways to make government more efficient. clearly in this town nobody believes that washington is at maximum efficiency. there are ways we can cut some of the expense to get better results from the taxpayer dollar and have more efficiency. we think states need to take on more of the role of providing services and not have the overreach of the federal government into our back yards. it requires us working together. this north america opportunity that we have coming up where we will bring premiers from canada governors of america, governors of mexico, together again the north american block. we have great opportunities for improving the lives of the people we represent and having

significant ability to improve the economic communities for us here in america. again we have great opportunities. again, i thank our leadership from the governor and all the members of the m.g.a. of the 50 states and territories. as we work together our success is assured. there is reason to be optimistic because of the work in the states and we look forward to as utah being part of that. thank you for being here today and i will turn it back to the chairman. >> thank you, gary. questions? yes. >> [inaudible].

>> it is so controversial it is not anything i'm proposing. i think we need to have the opportunity to grow the economy. i'm a big believer that the private sector has tremendous muscle. sometimes government gets in the way of the private sector's being able to innovate and create new opportunities and our free market, free enterprise system has been remarkable in its history. never in the history of the

world have we had anything that provided better goods and services for the most amount of people for the lowest cost. sometimes government gets in the way. so, part fof our efforts is to streamline government to make it more efficient which means to empower the private sector. venture capital and whether it comes from americans or comes from outside sources around the country that is taking place. whether we need a bank to have that to deposit and distribute the money is something i haven't really thought about. i have to look at information and make a decision and judgment on that but i'm not prepared to do that today. >> it sounds like an ambitious agenda you have for this conference. to what extent has in been sort of altered or impacted by some of the governors are running for president? >> more on his side than mine.

i theuink we are very focused and i theuink pretty much all the governors recognize that when we work together we can function in a nonpartisan way and take on some of the more difficult issues often times more divisive issues and make real progress. there are obviously races going on whether the re-election the presidential primaries will be coming around and it is a distraction, no question. i don't think it's a big distraction and i think most governors interested in taking that step, i've been trying to nominate governor herbert for quite some time without much success, i'm disappointed to say. most governors are able to keep their focus and look at things from a national perspective

without losing focus. >> let me say too, there are always elections going on so people can make things partisan for their own agenda for political gain. i've had people ask you, how is it you gary, you were able to be elected the vice chairman of the governor's association and then chairman of this significant election year. the answer is simple i am the only governor not running for president. and so i'm available. again, i think we're going to be honest brokers for the n.g.a. we understand people can actually separate their political agenda if they are going to take advantage of running for president but yet understand the need to work together as states so i think the bipartisan effort we have here, there are a lot of things we have in common and this

organization more than most is more bipartisan and i think we have an opportunity in spite of elections that come periodically to get some good things done. >> thank you governor, and congratulations on your re-election, john gizzy with news max. in his decision on the president's executive order on immigration, judge hannan pointed out several increases in the cost to the states, medicare welfare education that would come about. and i want to ask, number one, do you think if the president's orders were implemented it would be a bigger cost to the states already? and two, how the states deal with that order and resulting court decision going to be on any agenda today. >> well, it's already being discussed. it's not on the specific agenda but it is something every

governor is aware of and i think how -- again, one of the points governor herbert made, justice brandise said the states are the laboratories are democracies and each state is handling this a different way and some of those costs are being accepted. in other states they are not. each state is navigating them i think independently. >> that's true. and i suspect there's different demographics and different economic analysis with specific states. one thing i think we share in common, governor hicken loper and others, that we do something on immigration. we've had the debate and it's very emotional and sometimes so emotional rational thought is thrown out the window but it's time for congress to react and do something and there's probably five or six different

steps that can be debated but let's get step one done. if that's to secure the border, secure the border, and move on to other steps we need to. doing nothing doesn't seem to be working and yet that is what congress is best at, doing nothing. we need to give them encouragement and say we expect you as americans and certainly as governors to take initiative and get things done in resolving the immigration issue. >> i want to ask you about the issues as far as marijuana is concerned. you mentioned in january that perhaps legalizing marijuana in your state recreationally may not have been a good idea. as far as this particular conference is concerned, how are you going to talk about this issue going forward and how it may go forward in other states and with a will you tell your fellow governors as far as legalization is concerned and how it will affect their

states. >> when the voters voted on it there was risk and just saw the old system that was something that wasn't working and in many cases a set of laws that weren't being obeyed at any level. again, i oppose legalizing recreational marijuana but our voters passed it 55-45 and we worked hard to implement a robust set of regulations to see if we can, through appropriate taxation, eliminate the black market and because kids legalized it, kids would think it would be ok. every brain scientist we talked to is they said they're convinced this high probability of the intent t.c.h. in marijuana today, if teenagers smoke or ingest the high t.h.c. marijuana there is a possibility they'll reduce their long-term memory.

>> [inaudible question] >> we're doing everything we can in the state of colorado to make sure we're limiting the black market and marijuana sold is being sold easily. and we haven't changed any laws and if people are delivering it illegally we'll throw the books at them. we want to make sure there's no none of it getting to other states. there's been drug traffic in and out different states. part of our goal in regulating this is make sure it diminishes. drug dealers don't care who they sell marijuana to. if we can eliminate the black market and get the drug dealers out of it, it will be a lot harder to hand drugs to kids. >> about your point of innovation and states being laboratories. governor nixon of missouri will lead a delegation to cuba first governor in a long time,

yet getting criticism from people of his party and home state including senator blunt saying there should be no regulations with cuba as long as the castros are in power and they don't have a good record of paying their bills anyway. is this a place states will be seeing a lot of opportunity or should they be adhering to what senator blunt said? >> i think there are arguments on both sides of the issue that are legitimate as far as trying to open up and have more normalized relations with cuba. it is a concern because of the human rights violations and black of openness and how they treated their own people, you know, you don't want to warn bad behavior. as a parent, i had the experience of saying sometimes you just need a spanking and regard -- rewarding bad

behavior often gets you more bad behavior. and it's something the president should be debating and discussing and i would not criticize governor nixon if he thinks that's ropet for missouri to be engaged with and a trade mission there, that's a decision to call and don't see you in utah doing that any time soon. i appreciate the govenorship of governor hickenlooper. and we bring in those from canada and the governors of the united states together with the governors of mexico. again, that north america alliance has tremendous potential for us economically and the potential for mexico is one where i should not overlook and concentrate my efforts where i think we can do some really good things. >> how concerned are you about

not forming homeland security at the end of this week and will it have any or given the short term nature of the funding have any impact on individual states? >> certainly will have an effect on our states and it's a classic case of congress, and i'm not criticizing one part or the other. government has to work, especially homeland security, there's not a governor here who doesn't want them to figure this out. the grants of a continuing resolution there's some question the grants they make will continue. we're talking about people's paychecks and people's lives. as governor it's frustrating to see the partisan politics. instead of sitting down and rolling up their sleeves and thinking of the right complex, not realizing people will get what they want, it's the way our system works there's both sides pushing each other to this brinksmanship.

it is going to affect our states and every state in the country. again, i'm not blaming one party or the other but they need to figure it out. >> what he said. >> can you talk about what the challenges are someone might be facing beginning that new role and what you hope they take out of this weekend? >> sure. we do an orientation, governor herbert and i both strongly participate but the two weekends after the election, we get all the new governors that aren't even sworn in and get experienced governors and then the newspaperies and spend a couple days -- and newbies and spend a couple days together that start with, be prepared if you have a disaster. that's the first thing. know how to get in touch with

the national guard and know how those systems in a time of emergency works. that's the one place you won't have any sympathy if you have the misfortune to have a natural disaster the second week on the job, doesn't matter whether you're new or not your citizens will expect to you get stuff done but goes down the list of how do you work with the federal governor around these complex issues in health care and what does education reform look like. and i think entrepreneurs and high level managers from both parties that join the ranks of governors will have a real impact not just on the n.g.a. but the country and are talking much less partisan ways and

saying let's put away the partisan stuff and see how states find solutions which is what n.g.a. stands for. >> we were talking about this is a little earlier and it reminded me of my neighbor who lives up the street, i talk about the guy who lives up the canyon, his name is >> earth red ford. most of you know he made a movie called "the candidate." and at the very end of that movie he finally gets elected. he sits down in his hotel room and says now what? the n.g.a. is designed to help new governors in the now what. for some it's the first elected office and others, it's not. but the now what do we do is really what n.g.a. is about, to help us learn, understand issues, fill in the gaps we may have on our resume so as we move forward we can do the right thing and be half of our

constituency. it doesn't mean every state has the same challenges. they're not. they're different. 50 different states out there have their own uniqueness and challenge they face. the n.g.a. is designed to help with the uniqueness of our state. as i went through new governor association, it made me learn about the issues that are dealt with on the west. and our n.g.a. staff help us as governors navigate some of the challenges as we gain experience and the opportunity we have as veterans, we're part of a faculty now, john and i, to share what we've learned with those coming in with new opportunity and new responsibility. that continuity we have as an organization really benefits all the states and really the country.

[inaudible] >> can you tell us a also built what's going on behind the scenes, is everyone trying to take you out to dinner, how is that going? >> no, i haven't had an invite today so if there's somewhere we can go. we have governor only meetings and it's disappointing for you in the press that you're not invited but very with have an opportunity to have frank and open discussions and debate issues in a respectful way. we don't always agree. you can probably appreciate that. and that's not just republican versus democrat or sometimes is within the republican party or democrat party. we have regional differences. a good example where we have

differences is the energy policy not necessarily along policy lines but in regional areas week at kentucky or west virginia is big into coal. pennsylvania, utah has a lot of coal. wyoming, the largest exporter of b.d.u.'s. and people coming together and saying what's the common sense way forward for energy production in our state and particularly as we see with the price of oil the barrel is down to $51 something a barrel now. the changing dynamics out there. these opportunities to learn from each other are significantly important. it's not just the veterans teaching the rookies but sometimes it's the rookies coming in with fresh eyes and ears teaching the veterans and saying this is what i learned in my campaign and what's happening in my state and that benefits me in my state. it's a great system.

this idea of federalism is a great system and the n.g.a. allows us to be laboratories of democracy and learn from each other. [inaudible question] >> usually pound the lectern when we do that. >> is there any sense this congress or administration is any worse in listening to the states in trying to get a compromise on the things that matter to you most? >> well, i think there's a normal dynamic, there's a tension between governors and congress that's just natural. it's just always there. i'm not sure this congress is going to -- how it's going to relate to the last congress but certainly we're at a point where the bitter partisanship in congress has restrained their ability to get things

done and solve some of these problems like immigration or having a national energy policy i don't think it's useful to compare how bad it's ever been, but it's not good. you go back to the level of bitterness that comes with the campaigns in the negativity and attack ads. you rarely, you do see it occasionally but rarely see attack ads in the private sector. you don't see pepsi doing attack ads against coke. and coke would attack pepsi and pepsi attack coke and you suppress the entire product category of soft drinks. to a certain extent what we're doing, our system is depressing the category of democracy and young people, especially young people, are turning off the news and not reading the newspaper and not going in depth in policy issues, and that's creating a situation in washington that's very problematic. we have -- some of that

bitterness in the states as well but it's nowhere near as intense. i think we're able after the elections to kind of move past the bitterness and sit down at the table and figure out what is the appropriate compromise. i think governors are committed to try and help congress and you know sit down and have discussions. in some cases, i talked to legislators in colorado about how can i -- by sitting down with a different interest group, help yet a congressional representative over the -- into the end zone on a particular issue and make sure they feel that there's enough backing for them in the state to take sometimes what is a difficult position. i think if that happens on a more frequent basis in all the states, maybe we can move past this kind of gridlock but it has been tough. >> hope springs eternal. and i actually have reason to

be optimistic and hopeful as we move forward to get past some of the partisan wrangling. partisanship itself is not necessarily a bad thing as we have debates on issues. it's not getting anything done and not being willing to compromise that sometimes gets in the way. i'm optimistic we move forward and that there's an new opportunity, a new beginning with new leadership and a new opportunity. i would also say this, one, governors get along well because we don't have to play the king of the hill game they play in washington. we have meetings and talk about issues and do what we can and then go back to our own hills. and that's a little different dynamic than what we find here in washington, d.c. where they play king of the hill here. just a different dynamic and we need to understand that and respect it. the thing that's the biggest concern for me is washington, d.c. and the congress, and the executive branch doesn't trust the states.

there's a lack of trust. we need to knock down that barrier. they don't think we'll do the right thing. they take the money, they bring it through washington and give it back to us with strings and regulation and parameters because they don't think we'll spend it right. and they think here's a program they don't have in the states and we ought to create one because we don't think they're doing it right in the states and really to me boils down to a lack of trust. i think our job as governors and certainly of leadership of the national governor's association, is to make sure we do everything we can to break down the barrier of nontrust. you can trust us. we're smart people in the states. doing some good things. in fact, much better individually than the collective work that comes out of washington, d.c. which is trying to do probably most of our views, too much. let the states struggle. we might fall down or trip or

skin our knee but will pick yourselves up again and find solutions and learn from each other in that process. we need to bring back some of the trust from the federal government to the states and if we can do that, i'm very opt pittsic -- they optimistic we can do that. >> what do you think of mayor giuliani? >> go ahead. >> he's a shoot from the hip guy and i think he speaks for mayor giuliani himself i know there's frustration that comes whether it's the executive branch or sometimes the congress and sometimes people use words that probably are ill-advised in the overall context of getting things done. that being said, i think he was a great mayor.

>> what he said. i want to thank you for coming. governor herbert, we both said we're optimists by nature, and i think every governor, every mayor, comes with the territory, like being entrepreneurs and you start things from scratch and build them up. governors already take over something going full speed but there is that sense of optimism that provides a context for so much of what we do. we appreciate the media always giving us the benefit of the doubt and always showing that same optimism and are grateful for your time and attention. >> thank you.

[captioning performed by the national captioning institute] [captions copyright national cable satellite corp.2015] >> including foreign investments, maria moderated this event. it's an hour and a half. >> if i had a gavel, i'd gavel this order. governor barber. governor barbour if you'd like to sit with the governors, i'm sure you'd be welcomed.

all right. let's get this session started. again, thanks for all of you making the time to be here, and joining us for this discussion of where is this economy headed? and i think obviously i don't know a single governor that doesn't have jobs in the economy at the very top of their priority list. we discussed earlier about delivering results in the chair's initiative and talked about states operating more effectively and efficiently but looking at the culture of hots my tallity as danny meyer talked about it, and looking at how we make our states more successful and i think part of that is better partners with business. i think the initiative, delivering results, is a large part about economic innovation, how we can techively apply

management tools from the private sector to state government and get dramatically improved benefits, i think we'll continue to speak about economic innovation and economy throughout this session. i'm sure one way or another we'll be coming back to it throughout the entire weekend. it's now my pleasure to introduce maria baltiromo and very grateful you could create time to can down here for the second annual economic roundtable. maria is a award-winning journalist and author, news anchor, certainly has been on a number of different networks and from different perspectives but is without question one of the leading journalists today in this country. we're honored you would take the time and those of you who weren't here last year, maria will work with us and create a

lively discussion him -- discussion from all perspectives. she has 25 years of experience. originally with cnbc, she was much of that time the face of cnbc and launched the squawk box, anchored "the closing bell." last year she joined fox business network as the global markets editor. she's the anchor of "opening bell" with maria and host of "sunday morning futures" on fox news channel. she has received many awards, two emmys and a gracie award and the first female journalist inducted in the cable hall of fame class of 2011 and was the first journalist to report live daily from the floor of the new york stock exchange, as if all that's not enough she's the nor of several books including the weekend that changed wall street and the 10 laws of

enduring success. so please help me in giving maria a warm welcome. [applause] >> you thank you, so much, governor, it's wonderful to be with you all today. thank you for joining us, you all in the audience as well. i'm thrilled to be here at this particular time for the economy and to get perspective from all of you about what you're seeing in terms of moving the needle on the economy. because it feels like we have emerged from the great recession of 2007, very successfully. however, we now face a new set of challenges, things like a 50% sell-off in the price of oil, which one would expect to be a positive though we've seen only negatives so far come from the dropoff in oil including cuts in jobs and spending as well as the strong dollar, as well as a brush stroke attitude when it comes to a number of

initiatives a number of you are working on when it comes from the federal government as opposed to what you can do on a state level. so let's get right into it and talk about where is the growth in the economy and what has worked so far. i'm hoping that all of you will be interactive with your colleagues to get this conversation going. governor herbert, i'd like to begin with you given that you have seen a big dropoff in unemployment in your state. can you give us a sense of what you've seen in terms of what has worked in that regard? >> well, thank you maria. we're honored to have you here with us. in my 10 years as governor, like governor hicken blooper said, the primary focus was to turn the economy around and turn around the economy and get out of the great recession. when i came in it was about 8.7% unemployment rate and today it's 3.7% and we've had a dramatic turn around and done it from the good old common sense in trying to create a environment inducive to the

entrepreneur and the private sector and the risk-takers. we've cut our taxes. we had regulation reform. we've got a great educated labor force and we have efficiency in government that doesn't get in the way of the entrepreneur. we set a goal in trying to compete with my colleagues here to be the best performing economy in america. and that's a high challenge and high goal. we also wanted to improve our opportunities internationally and be a premiere destination place for international trade and commerce and the results have been pretty remarkable in my perspective and as many publications have named us one of the best places in america to do business. >> you said that you lowered taxes. were there other things that were done in particular to get the business section hiring and creating jobs? what are the specifics that you can name? >> the motivation for most businesses is to make a profit and increase market share.

so creating a environment of competitive tax rates was part of it. we also went and did a significant review of our regulations. as i get around as i get around my state and the country, the most common complaint is the regulations that get in the way of them being able to be productive in their business efforts. we did a regulation reform where we counted our business regulations and had about 2,000 impacting business and getting input from the public and others out there, we found 368 of those 2,000 had no public purpose, meaning they didn't level the playing field or help the republic but a drag on the economy and did what any sensible person would do which is to modify those and sent a strong message to the private sector, we are open for business. we want you to be successful but if there are t