and the monuments around, all of those are grounding points to establish the context for the museum. there is a visual connection made to each of those. a window over here that looks at the white house. this window is looking at the washington monument grounds. of the you the context lincoln memorial and also world war ii memorial and the washington monument. as you move around come he will see other viewpoints. >> you grew up in the segregated south. .> i grew up in memphis i lived there until i went to college. time in the 50's and 60's that there was a great deal of change. i grew up, went to school and segregated schools.

you go to a department store and as a young person you're not afraid to ask questions of your parents. i would say, why is there a colored restroom, why is there a white restroom? why do signs there for, and water fountains and white water fountains? i was told that that was the way his. i said, why? arts we all people -- aren't we all people? i did not go to school with any african-american or other ethnic groups. that has greatly changed. much to my delight. i went to undergraduate school at clemson university. i went there for architecture school and they were one of the first to admit an thecan-american into african and -- architecture

school. it has been a wonderful experience for me personally to see the change that is happened. i first worked with the native american community, we did a cultural resource center for the smithsonian. over 12 years, you learn a lot. you learn a lot about the culture that is different than yours. hoping that will be the case when people come to this museum. we've all learned definitely something different by being involved in this museum and i'm hoping it will have the same change affect on the people. >> where are we standing? >> 30 feet below grade the museum. look at history gallery. the history dollars our collection of 50,000 square foot

dollars on three different levels. the lust for in the museum. what you're seeing is a chronological sequence of dollars that basically tell the story of african-american history for the middle passage all the way to modern times as you extend outward. >> what design elements will visitors find here? >> and it is the lower space here. the space is expanding and contracting inside the mezzanine levels. the seasons -- ceilings are not .5 feet. with intimate relationship things in the lower levels. whereas if you step out of the main timber, your experience of the 65 foot room. i think there's an interesting dichotomy of space. >> your company as part of the

design team involved in the construction. tells a little bit about this. , by the time the museum opens next week, we will have worked on the project for close to 10 years. the dean of african american architects and late partner who passed away during the competition, he and the fremont group, they had altered the pre-design and programming studies two years prior to when the competition was announced. was in competition paper about a year. several along with other groups came up with this theme that won the contest. what you see here today is 400,000 square foot of museum

where 60% of the building is actually below grade. one of the things you'll notice about the competition is the relationship and it is inverted. as we started to study the building, we found that we had a much more intimate relationship with the monument grounds by pushing more of the program below grade and that makes sense. history galleries do not want natural light. interesting relationship from top to bottom. >> lonnie bunch of talk about them all as being like america's front yard. what was behind the conception of the history gallery and how it connects not only to the mall but the exterior? >> the main thing that you see as the atrium. the reason that it's addition on the north side is we can physically except light. it is nice to see that into the chamber. as you move lower end loader, you are going further and

further back in time. that is one of the unique sequences into the building is there is a sentient into the light. ascension into the light. >> talk to me about the symbolism. narratives will you -- give credit to ralph applebaum. our job is for the base building package within the history gallery which describes the volumes. some of the more interesting pieces that you see, the segregated railcar, we had to go down there and catalog that and put civil things in it like sprinklers, electricity, mechanical systems within it. there are some pieces that had to go into the building before the roof was on. that was critical to the completion of the project. 60% of this is low-grade, it is

-- a race to get ground level so we can move upwards. >> what do you hope visitors will take away from the galleries? >> we get this question a lot. often in comparison to the 9/11 museum. i think that this museum benefits from is the advantage of time. the 9/11 museum is a story that has been told over 15 years where we have centuries to discuss here. fors a different barometer how we are doing as a society. >> here's a snapshot of that history behind you. tell us a little bit about the choice for this design element? >> what you are seeing here is from top to bottom, and introduction to what you will see through the history galleries.

tomorrow, the smithsonian national museum of after american history and culture opens its doors to the public. c-span will be live from the national mall with the 10:00 a.m. outdoor dedication ceremony. speakers include president obama and county museum director lonnie bunch. hankis georgia congressman johnson talking about the significance of the museum. to him and the country. can you give us your views on the importance of the new african-american museum for the country? >> it means so much to be collective psyche of african-american people who throughout the history of this country have been beleaguered by a lack of knowledge about our history. when you don't know how great , thenorefathers have been

it is hard for you to capture in the present moment how great you are and what your future potential is. do is to museum will restore the ability of african americans to reach back into history and see how great we have been, how our forebears able and strong and accomplished. as each successive generation use those accomplishments which , it doesding to daily nothing but strengthen our people and strengthen our culture and it strengthens the fabric of america which is comprised of a multitude of threads. african-americans being a major thread in the history of this great nation.

>> the founding director of the that he seesid this as being the american story through african american lines. -- lense. >> that is a great observation. i would add that it enables african-americans to peer into our own unique background and to a proud of our competence -- compass minerals -- a congressman's -- a comp was -- accomplishments. the present moment is the most , to bent phase of living able to look back onto the past provides us with a clear hope and even guideline for our future. we have accomplished so much in the past, there is no reason we cannot continue to cut through

all of the challenges that we face uniquely as african-americans and continue to build a tremendous, positive history as demonstrated by the election of the first american -- african-american president eight years ago. he has been elected twice and has served two terms and is leaving office with a very positive popularity rating or favorability rating. about what he is a representative of us, what we have been able to accomplish despite the obstacles that were thrown in our way since it of the color of our skin. >> can you tell us what the museum means to you personally? >> it means i have a home. it means i have the ability to

go and savor the compliments of my past -- accomplishments of my past. we have cut off part of our challenge, part of our challenge is that we have been deprived of our history. it has been a systematic, calculated approach to handling the african-american is to cut ,hem off from the history forbid them from learning from the history and what history there has been has been skewed so as to not be accurate. museum has the opportunity ouread past -- re cast history from a long time in the past, restore a knowledge base about our culture that then creates a collective psyche that is much more healthy than the

one that we have now. our collective psyche of the people is damaged right now. this museum will go a long way towards our ability to heal ourselves. it also shows others who decide to come to find out about our history were not african-americans, gives them a greater appreciation of our role in making our country the great nation that it is today. >> thank you very much. >> thank you. the smithsonian national museum of african american history and culture opens its doors to the public the first time saturday and c-span will be live from the national mall starting that connect lock amu can for the outdoor dedication certainly. speakers include president obama and found amusing director lonnie bunch. certainly --ning ceremony live on saturday at

live a.m. eastern watch anytime on c-span.org and listen live on the c-span radio rep. -- app. leading up to the debates between hillary clinton at donald trump, we look at past presidential debates on saturday at 8:00 p.m. eastern. this saturday, the 1976 debate between gerald ford and former georgia governor jimmy carter. >> we were faced with heavy inflation, over 12%, faced with substantial unemployment, in the last 24 months, we have turned the economy around, we have --,000 more americans >> since he has been in office, we have had a 50% increase in unemployment. the 1980 debate with ronald reagan and president jimmy carter.

towhen i made my decision stop all trade with iran as a result of the taking of hostages, announced that and i have consistently made sense -- maintained that if they are released safely, we would make delivery on those items which iran owns. >> we had adequate warning that there was a threat to our embassy and we could have done what other embassies did my the strength and security or remove our personnel. before the kidnapping takeover took place. >> and the 2000 present a debate between george to be bush and vice president -- incumbent vice president al gore. >> balanced the budget every up. pay down the national debt. put medicare and social security in a lockbox and protect. >> i'm going to take one half of the surplus to social security. one quarter of the surplus for important project. i want to send one quarter of the surplus back to the people

who pay the bills. >> watch past presidential debates on saturday night at 8:00 eastern. watch anytime at c-span.org and watched -- listen on the radio app. >> russian foreign minister spoke at the united nations general assembly in your city. he discussed russia's military efforts in syria and criticized u.s. intervention in the middle east. --s is almost administered almost 20 minutes. >> ladies and gentlemen, at the anniversary century -- session, a good number of processes were heard at this turning point in the development of the world.

the keynote was acknowledgment of the fact that humanity in its transition from a bipolar world order to developing polycentric and democratic systems have faced challenges and threats, to us all. we can only overcome by working jointly together. it was rightly stressed that there is a need to change the very philosophy of interstate communication by excluding attempt to interfere or imposed development models two countries. unfortunately, the idea of mentoring, supremacy, exclusiveness realization of one's own interest by any means which has been deeply rooted in the minds of political elites of western countries, the detriment of our efforts to promote cooperation, the outcome of arrogant attitudes and feelings

-- pushing for unilateral and reckless solutions, we see this in the middle east and north africa as a result, the foundation of the world stability is being destroyed. it is time to learn the lessons. nearly think to russia's military assistance, the syrian legitimate government, it became possible to prevent the collapse of the of that country. our engagement provided impetus to the establishment of international syrian support groups and start a meaningful pluggable process so that they could determine the future of the country themselves through an inclusive dialogue of all ethnic and religious groups. and sat down to the u.s. security resolution and was embodied in recent agreement between russia and united states as cochairs of the international accord group.

it is essential to prevent the destruction of these agreements and to carry out unbiased and impartial investigation of the incident and to live -- especially since there are quite a few people wishing to sabotage these agreements. it is important to fulfill the demands of the un security council to separate the so-called moderate opposition from terrorism. and the response ability in this regard rely to the u.s. and members of the us-led coalition. the syrian crisis cannot be resolved and the current situation cannot be rectified without the deletion of isis and associated groups. we will not be able to have a human 10 situation -- humanitarian situation that will

improve without reaching out the terrorist groups in order to need to strengthen and start negotiations without preconditions in line with the resolution to sabotage the process with a specific people abroad with their mentors and supporters has been a negative impact on the un's reputation and leads us to believe that the reason lies in an attempt to try to change the regime. game, wethe zero-sum have seen this in ukraine. anti-constitutional attempt to overthrow the government and that the refusal of the ukraine to facilitate mixed agreement -- the agreement.

using these complex for one's goals has been great to all. the last meeting of the group gives us a cautious basis for optimism. it is only through the on a simple mentation of all agreements that we will be able to have any opportunity in the area to have equal and security as with statehood in the oecd 20 years ago. cannot substitute a truly collective communication of efforts without any winners or losers. acceptable toon use sports to make hostages of clinical ambitions which has always brought people together to strengthen friendship and

confidence to usurp the right to predetermined outcomes. not honor those who flaunt their allegiance to fair competition but are flouting the principles of independence and autonomy of using sporting competition in this way. we cannot use the philosophy of antihero or animal farm where are all animals are equal and some are more equal than others. in the 21st century, it is indecent to play mentor to everyone around. or launch unilateral ventures to conduct geological experience that cost millions of lives. or engage in active territorial blackmail. ownncial profits for one's at play or establish the criteria deems one country great.

this is unworthy of the principles of freedom and equality on this great nations build and grew. we will mark the 70th anniversary of the nuremberg trial decision. this cautions us against for granting the lessons of world war ii. reminds of of the catastrophic consequences of attempts to determine the fate of the world by suppressing the legitimate interests of other states and peoples. the freedom of expression and assembly as an excuse of condoning radical movements that express not the ideology and glorify not these and our conferences. accomplices. dictate the need for consistent effort to put a solid barrier in the way of neo-nazis and strengthen international agreements and rally the young generations around the idea of justice and equality. we want everyone to take part in

the world of -- that the full of youth and humanism. if you want to be a future that is just and give all people the opportunity to choose their own development, this implies the need to learn to respect one's partners and respect the cultural and diversity of the modern world. this means we need to come back to our origin and norms and principles. approachtment to that thereaffirmed in russia-china declaration on increasing the role of international law. the observance of the principles of sovereign equality, monitor. should be common measure -- noninterference of foreign affairs should be common measure. if we don't put an end to this not be ableosophy,

to counter international terrorism, proliferation of weapons of mass destruction and other threats. fighting terrorism, we cannot use double standards. we need true universal pooling of our interests in order to put together a broad anti-terrorism front as proposed by president putin from the stage a year ago. the tragedy of iraq, libya, syria, yemen has proven the need to stop opportunistic attempt to advancing political power. terrorism ideology. it holds use hostage in many regions of the world. adopting a security council resolution in order to mobilize the effort to illuminate -- limit this evil. -- eliminate this evil. radicalism,hing out

we can also look at settling the palestinian conflict. we need to get it out of the stalemate which we are focusing on from the meeting from the first of july. also worried about the nonproliferation -- it is important to support strategic stability. some are trying to replace this zero and weclear see that many countries that have nuclear arsenals are taking part in these agreements. we also put into the test the nonproliferation treaty. some parties can find a common language. at compromises to start negotiations to establish a free weapons of mass destruction zone

and means of -- russia has supported the liberation of humanity from the threat of nuclear weapons. however, the advancement towards nuclear disarmament must be made but the full consideration of the set of factors. including the creation of unilateral missile defense systems. the placement of strategic non-nuclear weapons, placement andeapons in outer space inability to ensure the entry of warts as well as the -- ports. the growing support of our initiative to draft an international convention for suppressing chemicals and biological terrorism to start a serious negotiation on behalf of the russia-china turkey.

it could help us move forward for the multilateral disarmament mechanism. we also call for a successful examination of our proposals on the improvement of the convention on the prohibition of biological and toxic weapons. armsht the conventional control in europe to a deadlock. our attempts to salvage it saved a tough ideologically driven counteraction. to return to this issue now could only be meaningful if the north atlantic alliance would recognize the futility of using ultimatums and at achieving unilateral advantage. we continue to be open for equitable and mutually respectful dialogue with nato including through the use of the cft also to strengthen

stability. in other parts of the world. it would be necessary. especially the asia specific reason -- asia-pacific region. them to abandon the nuclear missile program and return to the nonproliferation treaty regime. however, it is inadmissible to use the situation as a pretext for massive missile is asian of northeast asia and deploy another area for the u.s. global missile defense system. both sides must refrain from further escalation to embark on the way towards political and diplomatic settlement of the nuclear problem of the cream peninsula -- korean principle -- peninsula. establishing the area, regional security cooperation architecture of the foundation.

a number of participant countries, russia, india, china and india have submitted their consideration between by countries of the region to agree on the way to implement the initiative to establish an extended partnership with the participation of the economic union as well as other members other group as well as interested states. i would like to this initiative is open and fully in line with the earlier to create a trade investment blog between the russian in european union and it would be working on the m.inciples of the nor we will continue to promote the unification agenda in berries international form with the u.n.

, the shanghai cooperation organization, and the g 20. we think the chinese chairmanship for their effort to efficiently use the representative platform to exchange views on the issues of global economy and policy. the signing of the paris agreement on the prevention of climate change has become an important event in the u.n. activities. the communication of intended not only determined contributions on a voluntary basis for the objectives of the .greement now we need clear procedures and provisions in order for the paris agreement to be fully implemented considering everyone's interest. of articleimportant

intermission of greenhouse gases. crucially be important in preventing a violation of the competitive theronment and transfer dirty production from one country to another, which hampers the achievement of sustainable development goals. today, this covers all areas of international life and communication from political and military protection, conflict settlement, peacekeeping, sustainable development in regulation of information technology. and of course the u.n. must

support pluralism, cultures, tradition. in essence, we are talking about preserving humanity and all of is richest diversity in this the goal that should constitute the basis for our collective efforts and become an imperative for global development and incentive for a proven global governance and a true democrat's agent event international relations. i would like to express our to the enormous efforts to renew the united nations regard to the time constraints. we believe the new general secretary general will make a valid and valuable contribution. thank you for your attention. [applause] >> north korea's foreign minister also spoke at the

united nations general assembly. he denounced south korea's recent military exercises and blamed the u.s. for the existence of all nuclear weapons. this is 15 minutes. i now give the floor to his excellency, the minister of foreign affairs for the democratic people's republic of korea. >> mr. president, allow me to ,ongratulate your excellency mr. peter thompson, on your election of president as a 71st session of the u.n. general assembly. hope this session under the

theme of sustainable development goals and a universal push to transform our world will make a contribution to promoting peaceful procurement. mr. president, peace and security are the permanent theme of the united nations. even at this very moment when the u.n. -- the world is besieged with terrorism, sleeping refugees crisis, a war, and increasing global hotspots. among them, the koreans have ventured into the world's most standard hotspot. peaceful environment is the

foremost prerequisite for the democratic people's republic of korea. as the international committee witnesses every year, the situation on the peninsula is often engulfed in a state that goes out of control, whose root cause clearly lies in the united states who does not abandon its hostile policy and holds aggressive war exercises one the koreaner in peninsula. the larger joint military exercises come -- backed by the united states from march to april this year were extremely massive military maneuvers involving troops of over half a million and strategic assets including strategic nuclear bombers and nuclear submarines, more than enough to wage an all-out war. these exercises are thoroughly offensive and aggressive nuclear

war exercises in their nature is in operation of high precision strike. nowhere in the world there are now such large-scale joint military exercises as those. of suchthere wargames an effective nature. there's never been such a disguised military threat and exercises as those conducted under the nose of the adversary. via korean peninsula is the with no operational peace. 1950's meanse either side feels no need to make a declaration of war in case at once to begin fighting again.

whereh, it is the place military acts like the large-scale drug military drug exercise can easily infuriate the other side. incidental accident can easily lead to a conflict and ,scalate into an all out war voices of concern are increasing about the aggravation i tensions resulting from the large-scale joint military exercises not only in the neighboring countries but in many countries of the region and even in the u.s. and south korea. the respected leader kim jong-il noted that the

united states should abandon its and replace the agreement with a peace agreement . he also clarified that there is betweenor negotiations the military of the north and south of korea to ensure peace .n the peninsula without any positive response, the large-scale military arecises targeting the dr k becoming more aggressive. mr. president, in the international arena, the principles of international relations are often ignored by the u.s. in their outrageous ,chemes for domination

criminalized as injustice dependent on the interest of the powers. ,n lieu of safeguarding international justice must be realized without fail. article one of the u.n. charter refers to any about by peaceful means and confirming with the principles of justice and international law settlement of international disputes or situation that might lead to a breach of peace. in dealing with this issue of the peninsula, the un security council is playing the role of arbitrariness of the united states in the name of the united nations. the dr k made of a request to the un security council on several occasions for an emergency meeting on the international peace and security being threatened by the large-scale military exercises of the was on the can ramp

enough to love. this year alone, the dr k made such request to the un security council in march and respectively, turn them away every time. council takesy issue with the righteous self-defense of measures taken by the dr k to safeguard the sovereignty, dignity, national security. have no other choice but to go nuclear and inevitably after it has done everything possible to defend our national security from the constant we are threat from the u.s., which has continued over a century from the 1950's. our position to strengthen nuclear armament is a righteous self-defense measure to protect ourselves from the constant we are threat of the united states. nevertheless, the un security council declares that the ongoing nuclear activities are a

clear threat to your national peace and security. even in resolution 2270, which was fabricated most recently. as for the legal basis of the resolution, there is no provision in the u.n. charter or -- ny other international in practice, those countries begun have never been called into question at the security council. cannot but ask on what ground and with what authority the security council adopted a resolution prohibiting nuclear .nd ballistic rockets if the security council has such ground, why is it that it does not take issue with those countries which conduct same rockets?nd ballistic we presented an official questionnaire to the human secretary in this regard but the

secretary is not answering those questions. the answer is clear -- it is because the un security council is the place where the guilty are not decided on the basis of has thebut whether one power or not. the united states has no more equality qualifications -- heldweek, the summit was in marguerite in venezuela. in its final document, they have state and government expressed concern that in recent years, the security council has been too quick to threaten or authorize enforcement, action in some cases while being silent and inactive in others. under a line that sanctions only whenimposed

there exists a threat to international peace and security or an act of aggression in accordance with the charter of the united nations. declaration,rite the heads of state and government expressed their application of unilateral course measures against countries of the movement and violations of the charter of the united nations and international law. particularly, the principles of non--- this is the composition of the countries that take up nearly two thirds of the you one membership and this is the true voice of the international community. international justice never comes by itself. armed is the policy of our state. as long as there exists a

nuclear weapon state in hospital relations, our national security can be defended only with reliable nuclear deterrence. the reason why we have no other option but to strengthen our nuclear deterrent may not be easily understood by the european countries who security has become less sensitive after a quarter of a century since the end of the cold war or those countries that have never experienced the nuclear weapons of a host of power of hearing at their doorstep and around their airspace. the successful nuclear warhead explosion test that we have conducted recently is part of particle counter measure to the threat of the hostile forces including the united states. demonstrates the strongest ever will of our people that have been ready to

make a counter attack upon enemy provocation. only a couple days ago, the u.s. again has threatened by it on the granombers peninsula and landing and south korea. the united states will have to face tremendous consequences beyond imagination. bd prk will continue to take measures to strengthen its national nuclear armed cases in order to defend the dprk. in order to safeguard global peace and security and to ordere the international prevails against the disguise of justice should be destroyed to give way to a new international order of justice. the blockade imposed on cuba and justly by the united states for the past several decades is a

typical example of total absence of international justice. the delegation of the dprk extends. for it and solidarity to the government and people of cuba in their struggle to safeguard the dignity of the nation and realize justice. should benal justice relies us in his possible and in iraq,regions like syria, libya, which faced disturbances. the political attempt of the u.s. and western countries to defend upon the sovereignty of dependent african countries should be checked. double standards of the united states and its forces should be rejected as they politicize human rights issues to demonize the independent countries and use them as a two -- tool of

revolution. any country targeted for regime change by the united states is automatically categorized as a country with human rights problems without exception. is the predicament taking place in today's u.n. forum. the dprk is one of them. the united states raises the issue of human rights of the dprk. a loss andlf at human rights issues and will take up another issue to continue to attempt. the united states will never deprive our people of their own choice in a system of absolute service for the people themselves. pushovernment of the dprk

ahead with it struggled to remove the cause of war by the united states, will seek these insecurity in the peninsula, and asia, and the world at large and to denuclearize the world. thank you. [applause] ofi think the minister foreign affairs of the democratic people's republic of korea for his statement. tomorrow, the smithsonian national museum of african american history and culture opens a doors to the public. from thell be live national mall with a 10:00 a.m. dedication ceremony. acres include president obama and founding museum director lonnie bond. here's illinois representative robin kelly talking about the significance of the museum to her and the country.

>> 50 years after the passage of the civil rights act, what do think is the significance of the new african-american museum to the country? >> the word that comes to my mind is pride and appreciation for the african-american experience and the united states of america. >> and to you personally? >> again, pride. i think that the world will be educated about our contributions . i will be educated about our contributions and i think that particularly for african-american young people, they will see all of the contributions that african-americans have made to this country and we have helped make this country the great country that it is. >> lonnie bunch says this resume is about understanding the through thery african-american lens. what are your own thoughts? >> i agree with them but also we are the american story. i think we have been left out of the american story a little too

much. people know about martin luther king, mohamed a leak, but there are so many people that have contributed to what makes this country the country it is and doctors, lawyers, on and on. in everynterpreted aspect you can think of. >> is there any specific store you hope to see reflected in the museum? >> not really. i haven't seen it yet so i'm just looking forward to the whole experience and i guess i'm looking forward to the things i don't know about, like i know thee will be things about president or mohamed ali or liken luther king, things that but i'm looking to learn about the experiences i don't know about or i thought i knew about and can learn more about. >> the effort to build this

museum is more than a century in the making. do you have a sense in congress today for the support of the museum. i really haven't heard many people speaking about it besides members of the congressional black caucus but that's not to say other people are not interested because this museum is for everybody. so everyone can learn, not just african-americans, it's for the whole country and the whole world because it's not just going to be american citizens visiting the museum. i have heard great things about it. i also think that because of who our president is, that brings some popularity to the museum. >> congresswoman kelly, thank you very much.

>> the smithsonian national museum of african american history and cultures opens its doors to the public for the first time saturday and c-span will be live in the national mall for the outdoor dedication ceremony. speakers include president obama and lonnie bunch. watch the opening ceremony for the smithsonian national museum of african american history and culture live saturday at 10:00 a.m. eastern on c-span. watch live and anytime at c-span.org and listen live on the radio app. once more, we will have a government of, by, for the people. >> we are stronger together and no matter what, remember this -- love trumps hate. campaign 2016 continues on the road to the white house with the first presidential debate monday night live in hempstead, new york.

aginning at 7:30 eastern with preview of the debate. then at 8:30, the predebate briefing and 9:00 p.m., live coverage of the debate followed by viewer reaction. the 2016 presidential debate on c-span. watch anytime on-demand at c-span.org or listen live on the free c-span radio app. now, treasury secretary jack lew talks about closing the so-called racial wealth gap and the importance of financial literacy. this is about an hour and 40 minutes. morning. thank you, everyone, so much for being here, for joining us. i am the acting assistant secretary for financial institutions and it's my honor to help host and organize the event this morning.

i want to start just by thanking everyone for coming and were laying just how proud we are to host this event, to host it in honor of the freedman's bank, of to honor the legacy african american history and coulter, which is getting such national recognition on the mall this weekend. it gives us such a proud backdrop to talk about how that history and legacy to today's agenda a real solution and how we think about jobs, growth, opportunity and financial empowerment in low income communities and communities of color across this country. we are also deeply honored to be joined today by a large number .f notable guests

members of congress, representative karen brown, is a real testament to our speakers and the power of this event and this history to have such a tremendous list of speakers and tremendous audience that will join in this conversation. let me start first by introducing our first conversation. 6thant introduce the 7 secretary of the treasury, jacob lew. under his leadership, the this edfhas expanded five program to serve more individuals, small businesses, communities. we hosted a financial inclusion forum last year and brought together hundreds of leaders across the globe to remote access to safe and affordable financial products. a, and affordable

retirement account for millions of americans whose needs were not being met by their employer or by the market. byare also glad to be joined derek dingell, the editor in chief of black enterprise magazine, a national correspondent, a leading editor and award-winning writer and a voice about how entrepreneurship and enterprise can provide jobs and growth and opportunity. with that, let me thank them both for being here and hopefully will join me in a round of applause. thank you. [applause] >> thank you, secretary, for agreeing to be part of this interview and also i would like to commend you and your staff for holding this event, especially during such a momentous weekend as the

unveiling of the national museum of african american history and culture. i would also be remiss if i didn't take an opportunity to thank john hope bryant of operation hope who served as one of the catalysts to get this conference together. i think that this is a prime opportunity to talk about where we stand in terms of financial inclusion and before we delve into what this means for african-americans and people of color, i want you to define financial inclusion. whendoes it mean and financial inclusion is effectively working, what does that look like? >> thank you, derek. let me start by thanking you and a tremendous group we have gathered here today for being part of this. we are very proud to be able to

be part of this weekend and to do it in a way that is a continuation of things we have been working on for a very longtime. it ties together our real-time policy and our reflection on our history in a way they gives us the ability to look forward. i think the financial inclusion is really about looking to the future and how do you make sure every person has the opportunity to be part of our economy and grow and develop their own capabilities. if you are not part of the financial system, the likelihood of being able to buy your own home, being able to get a small business loan, of having a credit history where the financial system know you are there, if you are not part of the system, the odds of that working go down. it means that your ability to grow as an individual is reduced and it means your ability to contribute to the economy is reduced. this isn't something we just do because it's the right thing to

do for millions of people who deserve a fair opportunity, it's something we need to do to have a healthy economy. we have worked with our partners at usaid to be part of a conversation around the world on how did we get more people connected to the financial system because that is the way to get more global growth and more stability. here at home, we are proud, a few months ago, to post an event were renamed our annex building the free mix banks building. the bank started by a charter from president lincoln and frederick douglass to do exactly what i'm describing today, to give free slaves, after americans their first opportunity to be part of the formal financial system. it also cut us a lesson that you pay attention to strong financial standards because people can put their money away

and it does not necessarily build a sound that they get the institutions are not sound. encourage that at the institutional level. we are trying to give individuals a chance to get connected. their host of things we're doing from people getting their first bank account to working people starting to save two institutional- presence of capital in the neighborhood. as part of something that we need to do even more of. to unpack that and look at this moment and one i want you to further address the significance of the naming of bank,ilding, the friedman as well as naming this conference that appeared in that tradition and in terms of the spirit of friedman's bank, how can we ensure that after americans and people of color can gain that financial

inclusion that can be part of the wealth building process? >> there are many parts to the answer. i will start with the history. i think that the history of the friedman bank underscores that it is not a new idea or a novel idea to have a strong economic future, he up to part of the economic system. the intervening history has been mixed. it is provided access to some but not too enough. with ourre doing agenda and by looking back at the history, work is not done. we still have think that we have to do and there are things we can do in the treasury department and working with our colleagues across government and private sector to make a real difference. the challenges personal. i see some friends have worked

with us on financial inclusion and financial education. when kids get their first summer job, we try to help them open a bank account so that with the first paycheck comes the connection to the financial system. the alternative is the money system in a pocket or show box. -- shoebox. it gives you the ability to have a financial history and the other thing is likely to lead to you spending the money or losing the money. we honor that if you put the money in the bank, it is different than if you are treating it as something more casual. when people get their first job, but it usually start thinking about saving for retirement. they should. it is very hard to catch up if you wait 10-30 years and don't start saving early. what is one of the challenges that people have come at their a lot of banks our money managers

who want $30 deposits and accounts that don't have dollars. is not economically attractive because of the cost of managing accounts. we created myra which is still in the ascendancy stage it is becoming established. to give people an opportunity to have safe, affordable and simple ways to save for retirement. it does all of those things. investing in u.s. treasury bills. putting any amount with no minimum balance. all you have to do is fill out a simple form or if your employer is giving the option. why are people not signing up? that is something we are working on. part of it is to get the message out. we have reached out to many of our friends in the community and financial institutions and amongst employers to get the

word out there. needof it is that people to understand that putting five dollars and $10 away makes a difference. it accumulate over time into savings. it accumulate into having more your future.ntrol that is something we are pushing and we will continue to. >> that also goes to the viability of institutions. talk about the friedman bank historically, african american banks have been anchors of the communities. they have been responsible for home loans and mortgages, starting businesses. in the 60's, we saw 60 african american banks. declined and it continues to decline. in fact, black enterprise has an banks.list of tanks --

at one time he had 25 topics and that we have 10. what is being done to strengthen african american banks and community banks that are going to be essential for doing what you are talking about? there has been a hard 30 years for a small financial institutions. the pressure to reduce costs has led to consolidations. economic turmoil of the financial crisis has put stress on institutions. we have worked to try and help make the pathway towards becoming a cdf i easier to manage. with thed to deal legacy of the financial crisis, help institutions work there tore -- their way out control their own futures. athink that we have to look

the challenge of having community financial institutions remain strong but the larger and regional national banks be open as well. a mistake to think of it as the only pathway through the community. it is important. in many contingencies, it is the strongest one. we also have to make sure that thevalues are reflected in way national and regional institutions make their services available and open their doors and that has a two edged sword. you open the door to full opportunity and competition and it makes it more challenging for the community and financial institution. we need to strengthen -- strength of both levels. i don't think it would be a good outcome if the old place for african american banks would be at the kennedy bank of a other

hand, you do have the community bank and have access to the regional. >> can that be done through partnership. ? liberty bank and trust is number three on the list. they partnered with chase bank to create rehab loans in detroit to open up the opportunity for homeownership. is that the model? for a national banking partner with a community bank is an excellent way to provide strength and make their broader financial platform available even while preserving the strength of the community organization. when i go through communities in our country and i see a strong, local financial institution and size that there is a project being funded by a large national institution, i think that is the way you get the maximum amount of economic access and capital

into a community. it is a challenge because you can think of these as purely competitive institutions or you can think of it as a possibility of partnerships and working in harmony and ecosystem with room for both. ,> when you look at retirement has treasury looked at in listing partnerships with african american asset managers? we have a number of asset managers. one of the major thrust of these asset managers are to manage pension funds, government funds with thes to partner slate of financial services for major corporations. i would like you to touch on that and address that. i know that treasure has looked

at working with african-american and financial services firms. how do you bring them to be part of the equation for retirement management? there are relatively limited places where the federal government is actively investing. where we invest, we have to make some choices. downyou break the policies , he realized that some things unintentionally have an effect of driving things towards large entities. if you are managing a portfolio you could look purely at the history of return or what the most cost-effective way is to manage your money. is cheapercontract than having 10 contracts. but if you only go to one contract, you're only going to go to the largest firm. if you do your investment by looking at to return, you get more diversity of asset

management advisors into the mix. we have pushed to have a more flexible standard so it is not rigidly driven towards consolidation. it has to be based on performance history. you can choose to invest funds and a fund with a history of poor performance. performance histories were not that different. >> we found -- better performance than larger asset managers that have more of of assets under management government and private institutions. worked ony who has trying to manage our government efficiently for a big chunk of my career, i understand the desire to reduce the that theative costs

administrators in a funds would have. you could see that that would and havingo go home one staff and oversee one relationship. we have tried to break that apart. we are try to say, look at performance. sure the doors open to more competition. i think there is more work to do. a deep sense of history that has not led to a broad opportunity here. i think there has been an inflection point in how we think about it that we could change. >> financial inclusion, i thought it was important to talk about the institution that have been instrumental in getting many african americans on the path to wealth building. the greatophy -- recession wiped out a great deal

of african-american wealth. reveal was that african-americans who had wealth were tied up to property. when you look at african-american wealth versus is 141,000et worth for what families. 11,000 for african-american families. and --ng on the measures it is worse than that. from your standpoint, what can be done to close this racial wealth gap? grown and has become worse in the last 25 years. how can we reverse the trend? >> urinalysis analysis of the impact of the financial crisis and where we stand today in terms of disparate levels of wealth are very much on our

minds as something that is a challenge we have to deal with. there is no question that a lot of african american families have their personal wealth tied up in homes. there is also been a disproportionate number of committed to that of not bounce back in terms of bodies were a lot of the properties in size can be found. i think diversified investment practices would help. it also starts with how much access you have to invest in the first place. if you only have a down payment for a house, there is nothing left if you want to have a house to have diversified holdings. starting small ends up leaving you in a place where you are more exposed. how do you accuse more assets in the first place? -- accumulate more assets in the

first place? it starts with understanding the needs at the staging early. you can't wait until you are 50. you just can't. 111 ursus 11 is retirement -- versus 11 is retirement saving. auto ira, getting people over the hurdle to get started. say, can'tople afford to say. [indiscernible] will buy magazine or video without thinking about it. >> hopefully black enterprise. [laughter] >> if you take the achingly to

decisions that people make -- a keenly did decisions that people -- by kimberly did -- accumulated decisions that people may, let the five dollars and $10 buildup. financial education, financial literacy is about understanding. for some people, buying a home may not be the right decision. it might be better off getting started with a ira. or better off having diversified -- if you invest with treasuries and you $10,000, he would still have $10,000 because they are solid. this could you a way to get your first $10,000 into something you can't lose. people have to make these decisions based on where they are in life. when i bought my first time, i did not have a lot of savings. i think every i could to get my first home and i'm not sorry i did.

it was at a time where i knew my income was something that permitted me to do that. i was not making the decision not knowing where was the next month and i had a plan to go ick to being able to have -- did not draw that my ira to do it. some people don't have any retirement account left after they buy their first home. it is a question of getting the pieces together and making the choices. you have to start out with enough to work with. make sensible decisions and i n an adequate job teaching people about managing their financial life. >> it is interesting you say that. how do you incorporate that as part of the education system? you have student that graduate and the one area that isn't a

mandatory focus is financial management. >> we have worked to reach into the schools to develop curriculum materials that are friendly and not offputting. ametimes they look more like video app than they do an economic textbook. yet to get the people in a way that takes the subject matter and makes it accessible. you have to have opportunities. things like having your first paycheck go to a bank account makes it different. if your first summer job goes into a bank account, you are good. having somebody come to a job and make the decision to put that first five dollars-$10 into a retirement account, once you start, people tend to continue. you knock it is all the problem with one simple step. efforts andto take

partnerships in schools and the financial communities. government and private sector working together. that is something we put a lot of energy into. we are going to do our best to make sure he continues. >> and it has to extend beyond that in terms of lifelong learning and lifelong financial education. , a survey ong retirement, we're finding out that many people are running out of money during retirement. how do you and how does the treasury work with organizations to make sure that does not happen? >> it is a long topic. years after they retire is more than it used to be.

with longevity, people have to plan on not having a year or two but a couple of decades. you need a better nest egg. you may need to find ways to work longer. you need to make sure that you have liquidity at the point you retire. that is a complicated puzzle for people to put together. we can help. the something that our schools can help. financial institutions can help. it is something that is going to make all the difference in the world in terms of people having those golden years. we are doing a lot of work but we need to do more. >> one last question. going back to history. treasury department has been extremely progressive naming the building friedman bank. what was the significance of

placing harry tubman on the $20 bill? >> of all the complicated and deported things we work on in this building, more people are aware of the decision to put harriet tubman on the $20 bill and everything else we have done combined. that is a good thing. it is why we have taken it so seriously. we set out years ago asking the question, how do we make our currency reflect our history more completely? we had no women on currency. we need to have the other half of our population see themselves when they look at the money and those of us who are men need to see the women in our history when the look after money. we have looked at hundreds of possible candidates. as i went to the process of listening to the millions of comments, the forms we had, the

private conversations, i increasingly came to see the story of harry tubman -- harriet tubman being a similar story and also being the american story at another level. a story of independence, current as one person in a system that made it almost impossible to achieve. a reminder that each of us has a part to play. it contains the system. it is something i will always be and lookbe part of forward to finding the -- >> this has been a pleasure to have this conversation and the talk to youu -- about financial inclusion and moving financial education

forward. >> fetches a much. [applause] -- thank you so much. [applause] >> thank you again, mr. secretary. this is been terrific. it is my pleasure to move us forward and to introduce roger ferguson junior. his illustrious career and a competence -- accomplishments speak for himself. federal reserve system employee. he served on the president's economic recovery advisory board and council on jobs and repetitiveness. -- competitiveness. ceo of piab. allows them to have unique authority on issues of wealth building and had to provide financial services. his contribution to our country and the private sector have been

recognized many times. he's recognized more time. [applause] -- one more time. [applause] >> thank you for that kind introduction and good morning, everyone. the sun is to be here. i commend the secretary and the department for hosting this forum. and for paying tribute to friedman's bank. all of you know that friedman's bank was founded to create opportunities for african-americans to build financial security. color communities of continue to face the range of challenges that hinder their ability to achieve this important goal. my organization has been focused on helping people prepare for secure retirements for nearly a century. believe strongly that it is achievable for all americans.

we also know it can be harder than ever to reach into demographics, economic and other trends that are reshaping our world. in my brief remarks come i want to outline some of the challenges all americans face in achieving a secure retirement and highlight some of the unique challenges and difficult experiences. i will discuss why financial literacy is so important. weally, i will share what have learned about the best way to get to and through a secure tyrant. -- retirement. landscape. the challenges we face here and financial security generally are driven by three factors. talked about, or lack of adequate savings by all individuals. i will talk about that separately. secondly, the decline in

traditional insurance plans of the private sector. and already touched on, the aging of the american population. the u.s. alone, the federal reserve has estimated that one third of american workers have literally nothing at all save for retirement. that is concerning. the average life expectancy has hit an all-time tie -- hig meaning many americans will spend longer in retirement than previous generations. theifespans have risen, earth rate has fallen. together, these two trends have produced a steadily aging population. it is predicted that the elderly will make up nearly 22% of the population by 2040. the resulting strains are already well-documented. statistic, in 1950, they were seeking .5 workers for each

retiree, there are only 2.8 workers. shoretel three. -- short of three. the ratio is forecasted to drop 2-1. the second challenge is that individuals bear much more individual responsibility for ensuring their financial security. were able to rely on company pensions, but since 1980, the share of private sector workers drawn solely on company pensions for retirement has fallen from 62% down to 17%. what is happening is that the 401k and defined contribution plans nominate in the private sector with more than two thirds of workers relying on them. able evident that the current retirement model is not getting the job done in terms of

preparing workers. distance six -- statistics. over 67 million americans lack access to a retirement plan at work and those who do, many choose not to participate and even when employees to participate, they and their employers often don't contribute enough to their investment accounts. ze of thete on the si balance without considering income flow. other thing that we will touch on is that many feel to preserve their assets for retirement, rather they borrow. you heard the secretary much his story about how he was sure not to touch his ira. that the overall landscape. given the topic of the day, let's focus on communities of color.

challenges number of of community of color. one is that the unemployment rate for black americans is nearly double that of whites. the median income of african american households is behind white house holds by nearly $24,000. the wealth gap. to give some statistics.

no assets in a retirement account. among those who do have retirement accounts, the amount saved is far lower among households of color and white house holds. the working age population, three out of four black fiveholds and four out of latino households have less than $10,000 in retirement savings. you can understand what the secretary put such weight on saving early. among households, one out of to have savings. thatrchers also showed african-american workers are less likely to invest in stocks.

a situation that may limit the long-term growth potential for their account since stocks have historically been the highest yielding investments over the long-term. there is volatility. people ofow that color are more likely to take him on from their 401(k) account and more than twice as likely to take a hardship withdrawal. hispanics also borrow their account from harwich. it is both black and hispanic. all of these factors lead african-americans and hispanic workers less. a financially>> secure future. another area of challenges financial literacy. you are you artie heard that touched on. far too many americans lack financial knowledge that they need to make a saving decisions that will get them safely through retirement.

we know that financial knowledge makes a huge difference. with a high degree of financial literacy have a number of things in common. more likely to plan for retirement. in turn, any for retirement is a powerful predictor of what the chelation. a positive reinforcing cycle. there,e statistics people plan for retirement have more than doubled the wealth of people who do not plan. conversely, people with a lower degree of financial literacy tend to borrow more interestingly less wealth and select investments with higher peers. a downward spiral. folks with a lower degree of financial literacy are less likely to invest in stocks and more likely to experience difficulty with debt and less likely to know the terms of their mortgages and other loans. national jubilee study has shown

that financial literacy rates among americans are low with the but those lowest rates are african-americans and hispanics. the study showed that financial literacy is -- has declined slightly which is disturbing with americans having increasing responsibility to it secure their financial security. dour and sobering assessment of where we are today. about what we can do to make this a better story. possiblee that it is to prepare people at all income levels to achieve financial secure retirement. why do we believe that? in thisiction is rigid simple fact. we have been helping people of all incomes get to seek and secure retirement 1918.

that is when we were founded. that was 17 years before social security. today, we provide retirement plans they range -- and a range of other services for people in the nonprofit sector across all asset classes and incomes. we estimate that on average, which is a pence are on track to replace more than 90% of their income average -- at retirement. that figure covers a range of incomes. all races, income level, professor to doctors, to gardeners, custodians and ground folks on campus. what are some of the elements that work? there are number of them. first, employee participation is mandatory. you must get everybody participating. you heard the secretary talk about automatic enrollment.

employers and and -- and employees contribute to savings. joint effort. employees have access to an appropriate mix of diversified investment options. reflecting diversification being important. employees typically have access to a source of lifetime income. this is important. the defined benefit plan or an annuity that provides a level of guaranteed income. the risk of longevity is spread to the insurance company. finally, they provide access to a robust program. this is important. education and advice to support clients in this complicated set of financial decisions. this advice is available to everybody. the matter how much or how little they make. we think that this approach offers a strong model for the

nation as a consider how to strengthen our retirement system in the 21st century. as weespecially relevant consider the key challenges of the day which is lifetime income. you must assure that as americans live longer, they can retire with a piece of mind that comes from not worried about running out of money. you've heard a comment the black enterprise leader. i continue to believe that education is the key. the u.s.trengthen educational system so that communities of color have the same economic opportunities as their peers. the on that, we must strengthen financial education and enhance financial literacy among committees of color. we must ensure that they understand how to manage their financial lives in a way that prepares them for mitchell -- financial secure retirement. we must broaden access to

retirement plans across the community. we believe that everyone should have an opportunity to save for retirement at their workplace. these issues have a profound impact for economic progress as a nation and for the long-term well-being of all americans. we have a long way to go. we believe that we can overcome the challenges we face. we must make retirement and national priority. we have been heartened to see -- administration take number of members measures to enhance financial security. a rule which we think is important that will make putting customers first including the ira role decision. we think that is an important industry standard. we support the department of labor role. -- rule. the state-based retirement plans

are another good step forward. they will get many americans an opportunity to save for retirement. you artie heard the secretary talk about the myra -- already heard the secretary talk about the myra program. the importance of taking advantage of compound interest. are important initiatives. we applaud the government for doing that and recognize that both the government and business and not-for-profit sector have a .ole to play a couple things we have done, we are partnering with the council graduate schools on initiatives to boost financial literacy among college students of all colors and ethnicities. givene launched -- historically black colleges and universities, talking to many of those leaders and starting the process. advisinged hispanic

counsel to guide us in serving spanish-speaking participants. we offer counseling and education in spanish as well. letpite of the challenges, me close by saying we are challengeson the that i've outlined today. if we work together, we can make fearement a time not to that of financial security as it should be for communities of color as we can for all americans. let me close by thanking you for giving me this opportunity to speak. i hope you enjoy the rest of the form. -- for him. thank you very much -- forum. thank you very much. [applause] >> thank you again. it is my great pleasure to introduce our first panelist. let me bring them up to the stage. our panel will be moderated by deputy secretary raskin.

he has been a leader in our effort here and efforts of the federal reserve board and the state of maryland. we are pleased to have her engaged on this topic. soon be joined by professor rocksteady of stanford. blackan of the board, 100 men of america and john rogers junior. please join me in welcoming them to the stage. [applause] >> good morning. thank you for introducing this panel. today joiningfor us for this forum for what promises to be an enlightening discussion by the spinal.

we will be talking about building jobs and opportunities for communities of color. we know that the challenge of building jobs and opportunity for communities of color is related to the challenge of access to our financial system that is designed to foster inclusion. hence, the name of today's form. the freedmen's bank form. think about it, more than 150 years ago, the friedmans savings and trust company was founded at the direction of president lincoln next door to where we are gathered today. ofs company was born out recognition of the need for financial infrastructure that was inclusive of our newly emancipated people. place where the

poorest and most disappointed individuals -- disadvantaged individuals can access basic financial services. it was a door and served as a door into the formal economy and a pathway for people who had none. startowed people to getting credit, to start businesses and get opportunities to say. it was an early institutional response to the challenge of creating opportunity for the newly emancipated american. more than a century and a half later, i think it is fair to say that our nation has made enormous progress. the critical importance of financial inclusion the building jobs and opportunity for communities of color has not changed.

how we foster such financial inclusion so that it unlocks opportunity to participate in economic gains is what we are going to discuss on this panel. experiencedhas large improvements if we look at the macro in the comic -- economic indicators. nine years ago, the worst financial crisis since the great depression plunged our economy into a recession. we know that when president obama first took office, the economy was losing more than 700,000 jobs every month. since then, the administration progresstremendous rebuilding our economy. if you look at the macro indicators, the unemployment rate stands at 4.9%. u.s. businesses have added 15.1 million jobs since early 2010. showingensus data is

income growth between 2014 and 2015 as being the fastest on record. this is good news. what is encouraging is that household at the bottom of the income distribution are finally seeing some of the largest growth. specifically the bottom 10% of households saw their incomes increased nearly 8% over the past year. despite these gains, we know that there is a danger in focusing only on these macro indicators. they can often obscure whether underlying data points and trends that we know are important to understand and important to address for sustained economic growth. backyou pull the curtain over the aggregate macro data, you see what is at stake. of2013, the median net worth white households by some surveys

was $144,200. 13 times higher than the median net worth for black households. which was only 11,200. as we dig into the data, we see other things. for communities of color, many gains on the macro level are not being told. americans report that they could probably course of 20 not come up with $2000 in the next month for an unexpected expense. 34%. among african-americans, if you look just at african americans, it is higher. 48%. consumers which represent 50% of african-american our credit and physical me they have no records

et al. at the major credit bureau. they are unlikely to be able to access credit on good terms and more likely to have to turn to high cost wealth stripping lenders in an emergency or for day-to-day expenses like fixing a car to get to work. we know financial emergencies are often unpredictable and unavoidable. a market that have the income or financial access, they have to be forced into higher cost on x and making these impossible decisions like choosing between food and paying for rent. immediateling with expenses, when consumers don't have the income or financial access they need, they are put significantt -- disadvantage if they want is start a business or buy a home. if they want to do anything to begin creating a cushion for long-term financial security.

in other words, the very lubricants of opportunity began to evaporate. these barriers to an inclusive financial system are consequential for individuals and ultimately consequential for being able to be on a path to an economic growth that is sustained and not sporadic. usay, we have joined with three esteemed panelists who are going to help us address some of these questions. they're going to help us explore what factors within our economic and financial systems can help and a moreortunity inclusive economic growth. the panelists are going to help us understand these questions and think about what else we can be doing to build jobs and opportunities for communities of color.

thet, we're joined by professor of economics at stanford who combines comparative evidence in economic theory to design more effective policy. policy toenough for a sound good at meetings or forums like this, we need to be designing and implement an evidence-based solutions. -- he brings a suspected -- prospective to identify dissociative we will also hear from the chairman of the 100 black men of america to talk about his role in transforming the lives of youth and improving communities through their mentorship. he has boots on the ground experience and his expertise is relevant as we focus on policies that affect people at the individual level communities of color.

design a more successful financial infrastructure, we turn to curly for answers. aswill hear about his role president of the georgia pacific foundation and better understand how philanthropic investment can help build meaningful communities. in finally, john rogers. we'll hear his perspective as the chairman, ceo and chief investment officer of aerial investment. and his experience working in the south side of chicago. as you will help us better understand the role of the private sector as well as the critical role that education place in broad-based prosperity. he has been a great advisor to us at treasury, particularly in his role on the president's advisory council.

we are pleased to have you back here. turning to our questions, i will start with rahj, we're going to talk about some of the factors that foster economic mobility. economists model, they often 12 on labor, capital, natural resource endowment. there areso show that institutional factors at stake. things like accessible and affordable education, accessible and affordable say financial services. these are all critical as well as factors such as a fair legal system or appropriate regulation, sufficient government investment, vibrant private sector. i want to start by asking you what factors you look at? what do you see that helps

explain whether the engine for economic mobility are producing opportunity for all and what can we be doing to increase the mechanisms for social mobility, particularly for communities of color? >> the me say it is a pleasure to be a part of this event. let me start by describing data that we use to analyze this topic that comes from the treasury. we tracked the lives of about 10 million kids looking at where they grew up and how that affects their economic opportunity and when we look at that data set, what we find is that there is tremendous variation in economic opportunity across the communities. there are some parts of america that can be described as land of opportunity consistent with the traditional american ideals of kids being able to move up in if they werebution

part. there are many other committees in america that are better described as places a persistent poverty where did you grow up in a low-income family, you don't have very good chances of climbing the income ladder. some examples, parts of the west coast like the bay area or salt lake city offers americans tremendous opportunities for succeeding relative to places like atlanta, georgia or milwaukee, wisconsin or indianapolis. there are three or fourfold differences of your chance of the climbing the ladder. question, what are the systematic differences between places like the bay area or salt lake city in places like atlanta or charlotte? we have looked at a brightly of factors and i will describe some of the most strong patterns. we find that cities that are more segregated by race or

income from residential segregation, those types of cities have much lower rates of economic opportunity then more integrated communities. it incredibly segregated aires. cities that look like that in terms of residential structure tend to have much lower economic opportunity. second, we find that places with more social capital, places where some else is likely to help you out even if you are not doing well, salt lake city with the mormon church is a classic example of a city with a lot of social capital. those types of areas tend to have high levels of upward mobility. capitaladitional labor kind of factor but other types of factors that seem to affect economic assets. the third is the quality of public schools. places with better public schools seem to have

dramatically better incomes. let me relate this to our topic today thinking about opportunities for communities of color. what we find is that areas with inger african women -- american publishers have less economic opportunity. the examples given like atlanta or charlotte with large african american population, the city's tended to score worse on all of the factors that i have been describing. they have more segregation and weaker public schools and this amplifies racial gaps. we estimate that something like a quarter of the gaps in income between blacks and whites or gaps in wealth we have been talking about are due simply to the difference in the communities where blacks grow up and wear white girl. if we were able to get after americans the same opportunities

in terms of what we see in places like sully city and san francisco or if we were to move a child from a community that looks more segregated to a community that is more integrated, we will ultimately wipe out roughly a quarter of the black-white income gap. i do think we need to be thinking about the roots of these problems as going back to childhood and not just picking about differences in the labor market. think about factors like segregation, education, social capital. >> thank you. let's go down the education piece. john, i would like to hear from you. knownk one thing that we as a precondition for growth is having a perspective that is long-term. let me focus on education, we think of something that is going to be an investment where there

are some costs in terms of investing in the education of a child and moving them to the educational system. i know that you have an important perspective here. the role that educational institutions can play in cultivating a long-term perspective. what i think we would like to know is, what institutions you think are important to having at the committee level to foster financial inclusion and how is the private sector engaged at the committee level to foster a long-term perspective -- community level to foster a long-term perspective? >> i will try to blend two things. about the things i talked for young americans was the having financial

institutions and local businesses partner with urban public schools and get that professional expertise involved. that is what we have done with our community academy that is 20 years old. we started with arne duncan and we worked with young people who can get to our offices and learn to take stock and use real money . then he been exposed to the financial services career path. it was important. they are learning about how to save and invest and at the same models for's role them. they can go home and talk to their parents and aunts and uncles about how to save and the importance of this economically viable career they had not thought of. it is important.

they will be more likely to become entrepreneurs and start businesses that will last because they had this long-term financial curriculum they have been exposed to. education is a part of the solution and we need to get our financial summit solutions -- institutions into public schools. the second example is not far from the economy, the university of chicago. one of the things i talked about there is that the income institution in chicago where i've been a trustee for the last 17 years, they have been working with local minority owned businesses in a meaningful way and a particularly with professional services. over the last 8-9 years, they have gone from zero to have an relationship with 60 professional services. caterers,lk to local local photographers, small businesses and they are able to survive the financial crisis because the university of chicago.

you can talk to the head of the african-american registration where they made payroll because the chicago hospital was advertising. we need our income institutions to work with local minority businesses because the local minority businesses will hire local people of color. the people who have a chance. the university of shock cargo -- chicago has done that externally well. -- externally well. extraordinarily well. >> from your experience, what have you seen that makes the biggest impact on helping create economic opportunity for people in these communities? >> before answer that question, let me crazy topic that plays a role --. -- players-- raise a topic that

plays a role. we gathered honest conversation about race and history of that. the progress that we have made, but we also have not talked the way wealth was destroyed in communities. that is created and when you talk about cities like atlanta and others, it is not just the segregation, it is the poverty that goes along with it. that isirement necessary to impact those poverty neighborhoods requires a great deal of of the resources. we have to have those conversations to understand that it is more than just segregation . it is how we deal with the issues of poverty. least 80%obably at 80%-90% on