>> we actually built it and implemented it. they said that's great, let's take this code and push it live. >> many people here wanted to improve college education, but they learned that the university resists new ideas. >> i would go and pitch them to my professors. they're like, those are great ideas. but good luck with the red tape. >> technologies are evolving so rapidly and schools can't keep up. >> you're never going to get there with all this bureaucracy. >> so it's the people my age who are in charge, holding you people back. >> it's the mentality, this is how we've always done it. this is how we're going to continue to do it. they don't have this start-up mentality. >> higher education is powerful because it owns the power of credential. but today, most graduates don't get jobs that require a degree. >> the best i do is working for $10 an hour at a grocery store. >> david morris got top grades

at a top college, and then got a masters degree. >> i'm still living with my parents. >> after paying $100,000 to signal others, i have a college degree. >> why this expensive plumage? why this expensive signaling mechanism? >> zack dropped out of college to create something better. he started praxis, a company that finds students actual work. >> they're practically handing out good jobs and they can't find good, hard working, talented young people with college degrees to fill them. >> praxis got mitch a job. ten months later, he's making more than $100,000 a year. >> i'm creating very real value for this company. >> a lot of our business partners do offer full-time positions. >> even if they don't, the students don't drown in loans. it's just one college disrupted. a company called labster offers a virtual alternative. >> our students gather evidence and analyze it in the lab in

order to solve the case. >> and every day on the web, there's another new alternative. >> do people still need a college degree? >> if you want to be a doctor, a lawyer, a professor. some of the fields are highly credentialed. you're going to have to need one. if you want to run a business, if you want to take control of your own life, build your own career, you really don't need one. >> that's a good thing. it gives us more choices. next, the best way to predict who will be the next president. will it be him, her, him? later i

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call 1-800-cdc-info. and happiness♪ ♪but above all this i wish you love♪ ♪and i will always love you, i..♪ who will be our next president? the media turned to poll. >> donald trump is in first place at 39%, but how likely is it that polls will predict who will win?

in the last republican primary, rick perry led the polls. then herman cain. then newt. but they didn't win. >> i accept your nomination for president. >> maybe instead of polls, we should pay more attention to pundits. >> we're going to win by a landslide. >> pundits get things wrong constantly, too. >> romney big, not even close. >> turns out pundits are not terribly accurate. >> economist robin hanson studies an alternative. there's something about putting money on the line that cuts through. people often make bold statements. >> you're talking. you're pontificating. something challenges you and says you want to bet on that? all of us. as soon as somebody says you want to bet on that? you pause and go, do i really believe that? if you put your money where your mouth is, you are more careful. and when lots of people put their mouth on the line, on sites called prediction markets, like this one in the united states, this one in europe, the resulting odds are more accurate

than anything else. unfortunately, they post these odds in confusing gambling formulas. so my producer and i created this site. electi electionbettingodds.com that states the odds more clearly. and who's winning? >> we're going to win. we're going to win. >> despite donald trump's confidence and lead in all national polls for the republican nomination, marco rubio is well ahead in the betting. trump is second. ted cruz third. for the democratic nomination. the betters say hillary is the overwhelming favorite and she's also favored to become president. if you think these odds are wrong, you can make money by being right. this was the debate-watching party hosted by political prediction site predict it. people bet on candidates during the debate. it's like a stock market. and like stocks, candidates' chances change constantly.

>> we get traders who are tweeting back and forth about who's making the most money. >> i put in rubio. i was making my bets before i got here. >> i'm a junky. political junky. so i love it. >> this is my fantasy baseball. >> if you can play. if you think trump is more likely than this to become president, place a bet. if he wins, you'll make about $10 for every dollar you bet. >> yeah, i'm actually doing pretty well. maybe tripled or quadrupled what i put in. >> it literally pays to be right. >> it turns out that competitive prediction markets like this are much more accurate than polls. >> consistently, test after test, the markets forecasted elections more accurately than polls. >> in november, ben carson surged to first place in polls. but the betters knew better. the odds had him at just 9%. now he's below 1%. in 2012, when these candidates surged to first place in polls, the prediction markets correctly said no. romney will win. it also correctly predicted results in most every state.

in 2012, every state but one. >> the market is consistently as accurate or more accurate than the other sources. you can take that to the bank. >> bets on the prediction market in trade even predicted when saddam husse saddam hussein would be captured. the odds on that date tripled in price. >> when saddam hussein was found hiding at the bottom of the hole. >> in-trade accurately predicted "american idol" winners, and oscar winners. >> thank you so much. thank you. >> part of what makes prediction markets work is the wisdom in crowds. some people betting here may be fools making bad bets, but the crowd of people probably won't. you see that on the tv show "who wants to be a millionaire." >> can i ask the audience? >> you want to ask the audience? >> contestants can ask the audience, or an expert. >> the experts do pretty well. they get the answer right 65% of the time. but the audience gets it right 91% of the time.

>> yes! $50,000! >> political prediction markets have a long history. 100 years ago, they were popular. >> they weren't really legal for the most part, but they reported. newspapers reported on them because it's what they had to report on them. these were bookies, i guess. >> yes. >> in fact, there was more money trading back and forth in the election markets, and the stock markets around 1900, so this was a big deal. >> and the predictions were pretty accurate. >> of course. >> they correctly predicted fdr's lix. and melection. and mckinley's. and many more. but sadly, our government often bans gambling. here officials take an axe to casino equipment. >> turns out that all of our familiar financial institutions were once banned as illegal gambling. stock markets were banned. commodity markets were banned. insurance was banned. so we have a long history of having things banned. >> in-trade was banned, too. the world no longer benefits from its predictions. >> recently, however, the government granted a few

exceptions to its bans. >> how come these guys got a yes and the rest got a no? >> we don't know. >> the bureaucrats keep changing their minds. 12 years ago, they asked hanson to create a market. >> the department of defense heard that prediction markets were interesting. that they were doing powerful thing. and they said show us. show us it work for stuff we do. >> we were going to predict events in the middle east. so immediately people started to bet on -- we never got that far. >> it is ridiculous and it's grotesque. >> the idea of people betting on when there might be terrorism horrified politicians. >> i think this is unbelievably stupid. >> it needs to be stopped immediately. >> and it was. the very next day. >> the secretary of defense in front of congress declares the project dead. >> so the pentagon is deprived of predictions that might save lives. >> people are so wary of what if we bet on death? >> so politicians protect us from truth. >> politicians are very adept at

watching out for things that might bother voters, and just keeping them away. >> what might they keep away next? coming up, the robot car. this will save lives. when you think about success, what does it look like? is it becoming a better professor by being a more adventurous student? is it one day giving your daughter the opportunity she deserves? is it finally witnessing all the artistic wonders of the natural world? whatever your definition of success is, helping you pursue it, is ours. t-i-a-a.

look, ma. no hands. are you ready for the driverless car? i got to try one. this is exciting. and scary. scary because it's not natural to just sit here and let the car drive. this car is the tesla s, the closest thing to a totally driverless car that consumers can buy now. i had to leave my state to test it. new york's archaic laws forbid taking both hands off the wheel. but once we were out of new york, the tesla rep had me turn on the autopilot. so i'm doing nothing. the car is driving itself. and this truck is coming. i'm scared! it takes time to get comfortable with having the car make decisions. in this tunnel, i was especially nervous. >> terrifying. breathing heavily here. it turned out i was right to be scared. [ bleep ] now, what happened there? the car drifted left.

my left wheel hit the side of the tunnel. >> when you pulled the wheel, you disengaged the autopilot. >> you've got to tell me that. >> touching the brake or wheel takes the car out of autopilot. but once i learned how the car works, i found not driving is pretty cool. though weird. >> th this is not natural, but it does work. it drives itself. and it's safer than me. >> safety is the big reason we should welcome these cars. 94% killed in car crashes are killed because of human error. the computer in this car would prevent many of those deaths. here, the sensors see that i'm coming up on another car. i will run into this car. it will slow me down. it already has. if i want to change lanes, just signal. >> it will change lanes without me. yes, it just does! and it stays in the lane. then we sped up to 65 miles per hour and the road turned sharply.

that was scary! i didn't think it would turn, but it does! this car is only partly driverless. it can't go on and off highways, for example. but soon, it will do everything. people are going to be reading the paper. >> actually, not a good idea, john. i'd appreciate it if you take it off. >> he stopped me because state laws say the driver must always be in control. what if i go to sleep? >> you'd be breaking the law. you need to remain in control of the vehicle at all times. >> but soon, if regulators allow it, technology will let us relax in our cars, and that could change our lives. it will save lives. and create more relaxing commutes. >> now i'm in stop and go traffic and the car will go without my -- yes, it will. also, there will be fewer traffic jams, because robots react quickly to danger. cars will be able to drive closer together. so more cars will fit on the same road. it will be great, says economist

james miller. i could imagine an ad saying computers crash, you're going to trust your life to a machine? >> people know that machines are better than people at a lot of tasks. >> still, the idea of some machine, trusting it with my life. >> well, our brains are basically machines. but optimized for going 50 miles an hour. >> the military is making all kinds of robots. they call this one the wild cat. they will deliver supplies or rescue soldiers. some robots will be used to kill. already robots have changed lives at some japanese hotels. >> welcome to the hotel. >> this dinosaur is a front desk clerk chosen to appeal to kids. they have all types. another robot stores your luggage for you. this one takes it to the room. when you get there there is no key it recognizes your face through facial recognition software. this says money. this hotel is cheaper than other

hotels nearby. it is cheaper because it employs fewer people. fewer receptionists will get jobs here. military robots will replace soldiers. driverless cars put truck drivers out of work. maybe i will lose my job to this guy. >> i will take your job, john. i am smarter than you. >> people are going to lose their jobs. they will have nothing to do. >> some people will miss their jobs but other people will get jobs. >> whenever there has been innovation experts predict employment will decline. but the experts can't image the new jobs. >> wal-mart will undoubtedly fire some truck drivers because the trucks drive themselves but it will cause wal-mart to lower their prices. >> those savings will bring new opportunity. don't believe it? remember 200 years ago most americans worked on farms. >> 90 percent used to work on farms now less than 2 percent. you think all of those people would be out of work.

>> a lot of people lost their jobs for a little bit of time but they found new jobs and found jobs doing things more productive. >> we forget how hard it was to produce food without tractors. farm work was long and dangerous. >> we saw the car displacing the horses buggies and we don't limit that passage. the black smiths of old probably had to figure out something else to do. they all found jobs. the economy evolved. it's an evolving ecosystem. >> but some don't want it to evolve. the cab drivers demand the government protect their jobs. >> what do we want? >> leg ratiregulations. >> plush fromming toilets and pluming take away my job. >> now we have inventory now what am i going to do with it? >> there are many who are taking our jobs. >> unfortunately in america

today there are people who want to do what he wants to do, stop progress. will they win? or will our future be faster, better, cheaper? that's

>> to close the show let's celebrate the much abused group, the people who lead the tech revolution. i am talking about nerds.

>> i am a nerd. i am here tonight to stand up for the rights of other nerds. >> it's about time. nerds make our world better. >> some people call you all nerds, and we hear that you claim that label with pride. >> this was at a stanford graduation where bill and melinda gates go. >> well, so do we. >> nerdy numbings is what she calls her baking show. >> why nerdy numb mes? >> i was called a nerd in high school. i wanted to give empowerment to the word and look at what we considered nerdy. math, science, video games. >> people who like those, they are not the cool kids at the party. >> now they are. >> there's a think well technology is the future. technology is now. when people's grandmothers are on facebook liking every one of our status updates.

technology is here today. >> new technology change is crippling. >> do you have a particularly useful app in your phone? >> every two weeks it changes. >> my apps don't change every two weeks? >> but you are not 13. these young people are previewing what we will use in a year. you and i aren't allowed to understand. we have to look at it and say, your music is too loud. technology and innovations will always prevail. it will change our society hopefully for the better. >> not if government stops them. the ride sharing service uber offers better service. but they had to over come that and government rules. >> it was legally questionable. but people did it anyway. life was better, faster, cheaper and cooler with these apps. >> but that success also shows the danger inpare -- inherent ir rules. uber was popular or rich before regulators noticed. by then uber had millions of customers and billions of

dollars so they could bully the politicians back. >> tell mayor don't strand new york. >> they defeated mayan tie progress mayor by telling customers no cars, blame the politicians. >> de blasio is backing off. >> it is good that uber won, but normal invasions, ones who must build big things and get government permission before they can build, they may be crushed by today's business rules. crushed before they can make our lives better. >> we don't need all of these politicians. >> without too many rules and politicians. >> the future is going to be full of surprises, full of awesome things that almost fall from the sky. we can't even image it today. >> look, ma, no hands. >> no ways to commute, to predict future events, to teach. >> a friendly mind reading robot tutor. >> discover music. >> the tech level luges will

make live -- >> better, cheaper, more abundant and available than before. >> i can't wait. and that's our show. thank you for lou dobbs. donald trump closer to securing the republican presidential nomination with impressive victories in three states last night. michigan, mississippi and hawaii. and trump pulled it off despite a barrage of attack ads from all quarters against him. >> this was an amazing evening and i don't think i've ever had so many horrible, horrible things said about me in one week. >> i think what this shows really more than anything else is that advertising is not as important. it really isn't as important as competence because t