[inaudible] just going out on a limb. have a wonderful weekend. one in three american jobs will be replaced by robots. >> will i lose my job. i will take your job, john. >> will my industry disappear. >> block buster video is no more. >> but so far, innovation has been mostly good. >> annie, here we go. >> will we take this too far? >> the latest have -- >> the music industry felt threatened. >> free and it's easy and it's wrong, yeah. but a lot of people do it. >> but maybe school will be

better. >> school would not be some place you are forced to go but want to go. >> this may replace credit cards. >> that's next. >> change, creative destruction, is mostly good. that's our show tonight. >> and now, john stossel. >> life now changes faster than ever. i struggle to keep up. in some ways the changes are good. >> robots like baxter are growing jobs quickly. they take away the back-breaking tasks and allows the workers to do the high-end jobs. >> that's good if the worker finds a high-end job but what if most jobs disappear. >> companies planning to replace home jobs with machines is growing. are we looking at more job losses here?

>> human instinct tells us if no one ever lost a job. politicians and unions demand that jobs be protected but america would not be better off if telephone operators and clerks at video stores had their jobs protected. america is richer because money once paid them is put to better use. but we in the media never tell that story. it's partly because we can only report on what we easily see. we can see and interview the people who get fired and take pictures as they leave their jobs on that last day when the factory closes and hear about the hardship to their family. hard to tell the flip side of the story, the cool new jobs those workers may find because the exciting new products they will produce and the new jobs we can't see that yet. sarah squire tries to explain that to people. you go to colleges and talk

about creative destruction? >> sometimes. and we have conferences on those topics with my foundation, liberty fund. >> and creative destruction is a phrase from an economist marxist said capitalism is destruction. >> and along with that destruction is the creativity that pushes capitalism and a capitalist system forward. >> one person who understood this is an economist in france more than 100 years ago. shopkeepers objected to food imports from outside france. these cheap imports are unfair competition and government should stop the imports. in response, the economist wrote a satire he entitled the candle makers petition. the manufacturers of candles street lamps and generally everything connected with lighting petition the

government. we suffer from the unfair competition of a foreign rival. it has such an advantage over us that he floods our markets wisconsin product and offers it at a fantastically low price. as a result an entire domestic industry is rendered stagnant. the foreign manufacturer competes against us without mercy. of course the foreign manufacturer they're upset about is the sun. and today it's who? >> the taxi drivers protesting against uber. it's the hospitality industry protesting against airbnb. >> they want protection. and he went on to say here's our petition, pass a law ordering the closing of all windows, skylights, curtains gratitude demand that our country not abandon us to this unequal competition.

like what the taxi drivers and hotel industry say. >> we have been here so long, it's working just fine the way it is work. why do we want to bring in the competition. >> what jobs are gone that we maybe don't think about? >> jobs creatively destroyed over the years? telephone operators travel agents who have been replaced by online book. we have a grocery stores with automated checkouts now. we have a lot of fast food restaurants using automated checkouts. >> no more ice deliveries. elevator operators. >> coal guys delivering coal. >> during the industrial revolution some people came into the factories in england and destroyed them. destroyed the machines. >> the ludits, smashing the frames for weaving cloth protesting it needed to be done by hand to protect their way of

life and their industry. >> we are buy logically programmed to fear this change. >> change is scary, risk is scary. you know, when the caveman ogg is happily situated in his little cave with his family and able to gather enough food to take care of his family even if there is a better hunting ground he might not move because he has just enough for what he needs that taking the risk of getting lost, getting eaten by a predator or finding worse hunting is not the risk. when you living day-to-day, being risk averse makes sense. >> and today they don't resist it themselves. they hire lobbyists to manipulate politicians. thank you sarah squire. i believe in creative destruction but we get squeamish when our own jobs are at stake. more jobs are threatened with

robots, including mine. i'm john stossel 2.0. i retain more research, ask better more charismatic than john stossel 1.0. >> the current issue of "reason" says robots come bearing coffee and sex. we should welcome them. peter suitorman welcomes it. but emerging technology specialist john haven says we should not welcome our robot overlords. >> humans have finite capabilities. for work in automation we can only work 60, 70 hours a week. we have to decide, are we going to choose human workers or machines. >> that does scare people. the robots are better now. when the stossel 2.0 robot i and a lot of others will have nothing to do. >> i don't think it is something

we should be worrying about. i don't siro -- see robots as overlords. the industrial age freed us up to do things that could not be imagined 200 years ago. 200 years ago 70% of the united states were farmers. >> and before that, 90%. >> right. and now it's 2%. >> people could not imagine the jobs we have now 200 years ago, 100 years ago and we cannot imagine the jobs 100 or 200 years from now. and many will be possible because of robot automation. >> here's how the philosophers from "the simpsons" cover the situation. >> these are robots. you will train them and they will replace you. i give you permission to shake

your fists in anger twice. >> this will happen to plenty of people and not all will find jobs. >> what you have seen is more jobs have been ultimately created in the economy and the number of jobs expands with the number of people because people are creative and inventive. they find things to do. >> a lot of the leading economists are saying this is a different era. the gdp for the past couple years has said the wages are not increasing. the second thing -- >> a lot of people are saying this time it's different. >> a lot is lost. accelerating returns with computer technology. the fact we replace so many jobs with machines and to say there will be more jobs created. >> and nbc claims pharmacists lawyers, drivers, astronauts, store clerks, soldiers, babysitters, sports writers. >> who is going to pay me. when stossel 2.0 takes over who

writes your check. how do you have a sense of purpose to fill your day. >> people find ways to make themselves productive. if they are not finding ways to make themselves productive somebody else will provide this opportunity. if you have 1,000 people not doing something many will try to do something, a few of those ideas will be good and a small number of them will be so good that lots of other people see that and start doing the same thing. >> and john you want more welfare people for the people thrown out of work and government to step in? >> the government question -- the income question and the welfare we were talking about. it's multifaceted. there's not an easy solution. but what is the other alternative? these 1,000 people are without jobs. and -- >> when government steps in they make busy work that wastes money and makes everyone miserable. >> there are models in copenhagen and denmark.

>> let's look at couple of clips that shows how hollywood images the robot dominated future. will smith argues with a robot about the value of people. >> can a robot write a symphony? can a robot turn a canvas into a beautiful masterpiece? >> can you? >> and this tv series images a future where sex bots are popular. >> they can expense your moves and respond accordingly. >> and you know, that's fiction but the issue of reason points out that these sex dolls are popular and real and this stuff is coming. >> it is. it's coming. people should be prepared for it. some people will think it's creepy. that's their right. i don't think it is and i don't think their receptions should guide how we think about it.

how humans will interact emotionally with robots? >> they interact with pets and computers. i have a relationship with my phone. i yell at it sometimes and it makes me happy in other cases. sex bots will bring pleasure. not something to worry about. >> to join this debate about the future, follow me on twitter. use the #innovation or like my facebook page and post on my wall. coming up the dozens of things that have been creatively destroyed and now fit inside my tiny cell phone. plus creative destruction in music, education and selling a home. the average agent processes eight deals a year. we have an agent that can do that every week. >> we have an agent

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you want to sell your home? real estate brokers offer to help you but charge a 6% commission. 6%? average american home sells for about $200,000. that's a $12,000 fee. $60,000 on a $1 million home. it's a lot of money for showing

one house and, yet, so far the 6% real estate commission has resisted creative destruction. some buyers and sellers negotiate with agents and the average commission that is actually paid is down to 5.4%. but it's still a lot. increasingly, however, people have found new ways to buy and sell homes. "60 minutes" featured a couple who sold online. >> how much did you save? >> $26,000. >> they saved $26,000 by buying their home through a real estate brokerage called redfin. how does it work? how do they save? >> people save because we built the best dang real estate website and the world has beat a path to our door. >> everybody says that. >> we have 10 million people

using the site every month. we use the technology to make things better faster more efficient. we save people 10 to $15,000 when they buy and sell a home through us. >> there are companies like zillow and trulio which list things. but you use agents. you have 1000 agents. >> all the efficiency that the website and mobile tools create to us we pass on to the consumer. if the agent and software work together that's the way to attack the 6% commission and make real estate better for consumers. >> a year after his company began, they caught a break when "60 minutes" interviewed glen. >> we referred over $3 million in commissions to our customers. >> refunded? >> yeah when we are the buyers agent we take our 3% commission, we keep one-third of it and give two-thirds of it back to the buyer. >> and i would think you would

have had more of an effect. i am amazed that the average commission is 6%. brokerage commissions came down. travel agents have been killed. car dealers now with the information out there they struggle to get as much. why do you think that is? >> real estate is a local business. and it takes time to penetrate every market. so redfin has hundreds of millions of dollars in revenue coming in at this pint and yet we have 3 or 4 market share in our most established markets. and so what you have is an industry that is very large, that's very slow to change and you have a company taking market share hand over fist. we are growing 40, 50% every year and we still only have a small fraction of the market. so i'll -- >> i think you would grow faster if you hadn't named your company

so badly. redfin. what does that mean? urban compass find well, what does that mean? >> redfin is real estate redefined. >> okay. >> we can only grow so fast without having a bozo explosion. we have to hire real estate agents by the truckload every spring and every one has to be very good. the business grows at a steady rate but can't grow faster without compromising customer service. >> and sometimes governments stand in your way. missouri, oregon and tennessee have laws preventing refunds. >> right. there are laws on the books in a dozen states that prevent us from giving money back. we would like to give 4 or $5,000 back to the consumer and states like oregon just don't

allow it. we don't see how on earth that could be in the consumer's best interest. it's something we lobbied a overturn without much effect. >> good luck to you thank you. coming up can i get rid of these credit cards? i'm told there is a new, better, cheaper way to pay for things. >> that's next. way to pay for things coming up hey buddy, you're squashing me! liquid wart remover? could take weeks to treat. embarrassing wart? dr. scholl's freeze away wipes 'em out fast with as few as one treatment. freeze away! dr. scholl's. the #1 selling freeze brand.

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when i buy something i'm kind of primitive. i often use this stuff. it's called cash. a few other people know what this is. i also use plastic. i like the convenience and i get a bill at the end of the month. but i'm behind the times. creative destruction is happening all around me and i rarely notice it until young people tell me credit cards are so primitive compared to paypal,

square cash with a "k." and what's next? the ceo of america's most valuable company says he knows. >> our vision is to replace this 200 million times that we scramble for our credit card and go through what is a fairly antiquated payment process. it looks something like this. >> i sped this up because the stossel show goes faster than happening presentations. using a credit card can be a pain in the neck. >> so we created an entirely new payment process. and we call it apple pay. >> it is quicker. >> that's next. >> so will apple pay replace cash and put credit card companies out of business?

if it does max borders says that's fine, great. max is editors of "the freeman" magazine. why great? >> i think it's great but it might not be me who decides but the sovereign marketplace. the kids may decide it's time for a change taken they're the ones to decide. >> why would it be good? >> for example if i can consolidate this -- i have this big thing in my -- >> he has his wallet. he can't get it out of his pocket. >> it's cumbersome. >> you are using paypal and all these new things? >> sure. >> you are still using credit cards. >> i am. but just downloaded apple pay on to my phone. people are using google wallet and other transaction methods. these are new and digital natives are used to do everything on the phones. >> why is it better? >> it's convenient and the transactions are faster and we

might see transaction fees coming down and you will feel that in your pocketbook. >> i wouldn't get apple pay. people got ripped off. >> well, listen, there may be misstarts and stumbles. when paypal started they had similar problems but they fixed it and now paypal is second nature for paying for stuff online. >> all these alternatives are promising but they use the u.s. dollar which is useful but since i was born this has lost 90% of its value. what this buys today i could have bought with this dime back then. and that's the reason i'm not put all my eggs into the dollar. i hedge with bitcoins. >> bitcoin is the first digital courtesy. bitcoins are digital coins you send through the internet. without going through a bank or clearinghouse. >> so max, this is what you're

most excited about. why? >> i'm over the moon about bitcoin and cryptocurrencies. >> people use them to buy illegal things. >> people use cars to do bank robberies. but we don't want to ban cars, do we? >> people use cash to buy illegal things. >> absolutely. >> the other thing is the price of bitcoins went to $1,000 and now it's 250. >> you get a lot of enthusiasm in the beginning and people chill out and we figure out how to use it. sometimes there is an exuberance at the beginning but we sort it out. >> and you're most excited about it in poor parts of the world? >> millions of people around the world -- billions in fact in what they call system "d," people who have no land titles or property all they might have

is a phone, if they have a phone they are empowered. >> with a phone and bitcoins they can buy things without worrying as much about someone ripping them off? >> like the predatory governments they live under. >> in zimbabwe they have billion dollar bills because of inflation. >> exactly. the central banks are far, far worse than our central bank which is not the best. but, look, even if we use it here at home and find it is disruptive here, if the government is not scared of competition, let's see what these currencies can do. >> give the individual control. thank you max borders of the wonderful "freeman," here it is. next, better ways to learn things. >> school shouldn't be some place you are forced to go. it should be some place that you want to go. something for pain? i have bayer aspirin. i'm not having a heart attack, it's my back.

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>> i hated school when i was a kid. it was so boring. we just sat there lined up sitting at desks right next to each other. each kid a few feet away from me. but we're told don't interact with each other. it's so unnatural. education has barely improved because it is dominated by government. sometimes unions today. and unions and governments fight change. today kids have more choices. many learn math and science while playing video games. i think their brains work much faster and better than i did when i was bored sitting in class. education finally is getting some creative destruction. >> it absolutely is. there's never been a better time than to be in education whether you are a teacher or student or

you're a parent and you have so many options. >> the teachers worry this computer is going to replace me. >> the technology is not meant to replace teachers. it's making their job so much easier and better. do you remember when you were in school and you would listen to the classes and go do homework? so many of these models are flipping that around so you go home and listen to the boring lectures and are doing homework with the teacher getting one-on-one attention. >> one of the first innovations happened because of youtube. sal khan made a video to tutor his cousin. >> i started tutoring her brothers and all the rest. i had a friend who said why don't you put your lectures on youtube? i decided to give at shot. >> welcome to basic addition. >> soon thousands watched his

lectures. >> what sal has done is amazing. >> now he is funded by bill gates and offers lectures on history and computer science. his videos are viewed millions of times and now in a regular school some kids watch khan's videos where they learn more listening to their teacher lectures. >> it is helping. >> it's exciting he gets kids so excited about math. >> when i'm at home and i have time i log on. it's way more fun to do math. >> this is really working making a difference? >> it's working, making a difference. khan academy has 10 million users and 6500 videos. it's someone who maybe is 65 years old who didn't finish school who can go back and have that education and maybe get their ged and go back to college. >> at less cost.

>> free, actually. >> a few private schools are now based on personalized computer learning. >> at my old school everybody has to learn the same thing at the same time. and here you get to learn at your own level. >> school shouldn't be some place you are forced to go. it should be some place you want to go. we have a play list which is our work cloud. i got one on debate to learn about that. while other kids may be into coding. >> and this is blossomed. they started with 15 kids and went to 500. >> absolutely. the school in brooklyn they have 650 applications just for 60 slots. it's a personalized approach to learning. every kid doesn't learn the same way. and there are finally systems to allow them to learn at their pace. >> they get so into the video

games. >> school is cool. can you believe that? >> for older people she is excited about a company that teaches all kinds of school. >> who do you do you want to be? a mobile developer? a better photographer? how are you going to learn what you need to know? spend thousands of dollars to attend a workship or read a book? what if there is a better way? >> and i don't get it. what is the better way? >> it is really cool. it will let anybody be a teacher or student. >> you academy? >> and you know, you can make your own courses. for example if i wanted to learn how to be a journalist right now, i could take a class from you and you could teach a class on how to be a world-class journalist. >> and apparently i could make money. >> you could. >> one new grad made $65,000 in

a month. >> make money from what you do best. >> the student pays you? >> the student pay use and they take a cut. >> but this is cheaper than going to college and trade school? >> if you want the knowledge and accreditation, this will not put the note on the wall. but if there is a skill, design baking, it's something that gives real life skills this is a great platform. >> does the establishment resist this? >> there are services allowing the current institution to self destruction? >> they want to? >> they have to if they want to make money. >> i love when the boy said school should be interesting. >> a novel concept. >> thank you. coming up, creative destruction in the music business. >> hi. >> whoa. >> hello. >> what are you doing on my

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john: when i grew up here is how i played music. i'm not that old. when i was a kid i played

records on a machine much like this one. and the sound was often scratchy and easy to dangmage the records and you had to get up to change the record. the next invention the cassette player was a great thing and these were easier to handle. and people got excited about 8-track tapes. i invested in that technology and lost money. cds were better and the way we listen to music has continued to change. the biggest change came 16 years ago when napster appeared and freaked the establishment out. >> the latest software makes it too easy for students to access their favorite tune. >> the consumer realized they could get the music they wanted to hear for free. >> free music, record companies and musicians were upset. >> napster hijacked our music. >> the free music service was

ordered to stop the music. >> this political class thinks when they order people to do something it happens. they got napster declared illegal but that didn't stop people from downloading from other sites. >> how many mp 2s3s do you have? >> 600. everybody does it. >> that caused creative destruction in the music business. >> you don't have to go do a store. >> tower records closed its doors forever. >> son there will not be a record company at all. >> but there is still a record industry and music industry. the business just changed. emily white of white smith entertainment says the change is a good thing. why good? >> it's absolutely good. it's the music industry finally embracing technology instead of fight it and suing fans.

>> that was a bad thing. but you're an agent so you get paid a share of what the musician gets. i assume they get less now. >> no destruction has cracked the industry wide open. artists can record anywhere and description distribute at the touch of a button. >> they had to be recognized -- >> a deal basically. >> and more people can make their own deals. >> you can build up a fan base on youtube and get your music on itunes instantly. it's exciting. >> still albums sold in america in 1999 755 million. that includes cds, cassettes, vinyl. today about 150 million. and they were charging 18 bucks a cd. so -- that's much less money available. where is the money coming from? >> traditional music sales is

ultimately dead for sure. >> tower records out of business in 2006. starbucks was selling cds and is going to stop. money is lost. >> how did you feel as a consumer paying $18 a cd? there is a reason why people want to napster. if we would have legalized that in the 2000s we wouldn't be at this culture of free we are at now. >> streaming music goes up. 106 billion to 164 billion. but the musician gets something like .007 cents per play. how do you make money. >> that is the current revenue model. what is exciting is more and more people are going to provide alternatives. but we have fox stevenson whose number two revenue stream is spotify. the more people listening the more revenue. >> which helps them find new

listeners. >> exactly. >> and makes it more accessible. pandora will let fans interact with musicians. suppose you are listening to nick jonas. if you click thumb's up it is possible that jonas will appear on your screen and interact with you. >> hi. >> whoa. >> hello. >> what are you doing on my phone? >> in this case, he sang and invited his fans to dance along. ♪ i still get jealous. >> i loved your moves. >> thank you. love you. >> i assume most big stars will not do this but a lot of smaller acts? >> more and more are. it doesn't matter the size. creating that connection can now happen because of streaming and data and knowing who the fans are and where they are. >> thank you emily white.

next, until i researched this show i didn't realize how many things it has destroyed. destroyed let me talk to you about retirement. a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable professional. would you trust me as your financial advisor? i would. i would indeed. well, let's be clear here. i'm actually a dj. [ dance music plays ] [laughs] no way! i have no financial experience at all. that really is you? if they're not a cfp pro you just don't know. find a certified financial planner professional who's thoroughly vetted at letsmakeaplan.org. cfp -- work with the highest standard.

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e plane and thought... yeah! empty seat next to me. and then i saw him slowly coming down the aisle. one of those guys who just can't stop talking. i was downloading a movie. i was trying to download a movie. i have verizon. i don't. i get that little spinning wheel. download didn't finish. i finished the download. headphones on. and i'm safe. i didn't finish in time. so. many. stories. vo: join us and save without settling. verizon. we like our smartphones but did you ever think what this destroyed? these for one. landlight phones. now no longer tied to the cord, we can move around.

that's just the beginning. i don't need a printed newspaper anymore. talk about creative destruction of a business model papers used to make good money from classified ads. now i can get all of these free in my little phone, and craigslist updates instantly. not the classifieds. they're nor expensive, too. should there be a government program to help retrain people who once typed classified ads? surprised there wan a lobby for that and don't need enpsych droe ped encyclopedias, replacing dictionaries, notepads and calendars and heck, these fat phone books. >> when people want the nearest anything they check the ads in the neighborhood phone book. >> not today they don't. no longer such a big deal when mom says -- >> your brother's on the phone. he wants to talk to you. >> what? me? oh, boy!

♪ reach out ♪ >> hey, how you doing kid? >> what a far-away voice feels as close as you feel, reach oust and touch someone. at&t. >> much cheaper. a ten-minute phone call used cost $11 in today's dollaring. now basically free. replacing take-out menus address book, rolodexs. my phone elimb aints the need for snail mail. i don't miss it. elimon aipts fax machines, paper maps. don't need these anymore. gps units. compasses and let's not forget the music machines. >> if want a good, quality radio like this -- >> i was excited to buy this big thing when i was a kid. >> put on a new stereo record and listen. >> and if you wanted that new thing calmed astaire"stereo.

>> here the left side of the ork orchestra from the left, the right from the right. low as $129.95 at your rca victor dealers. >> that's $1,000 in today's money. in fact my smartphone essentially replaces everything in this radio shack ad and this stuff costs more than $5000. and even that was already an improvement, thanks to rapid creative destruction in the music industry. the stereo replaced the gramaphone and record players then came cassette players, boom boxes, smaller boom boxes and much smaller boxes. >> take a cassette out of its case and most see an empty pox. sony saw something quite different. ♪ sony introducesen the only

cassette player as small as a cassette case. incredible sounding simple walkman. >> that walkman was then replaced by mp3 players like ipods. and now it's all in my phone for a few hundred dollars. what bargain! my phone also replaces the old typewriter. and this model mostly eliminated by a great new invention. >> this is the best thing that's happened to typing since electricity. there's an ingenious printing element. it dances across the paper at incredible speed. >> incredible. a great invention. and it's gone, too. most of what it did i can do now just by talking into my phone. see? my phone replaces tape recorders and most cameras. even my old photo albums aren't necessary. all the pictures are in here. my phone does the work of vcrs and dvds.

>> just picked up four hours of sports, movie specials on one cassette. >> wow. >> the vhs -- >> my parents don't need me anymore. they got a panasonic vcr too. >> vcrs are gone and a lot of what they did i can do in here. my phone also has games that do more than what the bigger video game consoles once did. and because this has a video camera, i no longer need one of these things. i remember i got excited when they got this small. >> the sharp the smallest camcorder. the great new shape. >> now a camcorder is inside my phone, and not only is it cheaper, it's so small i can pull it out and record something a criminal does or what an abusive police officer might do turn it off. >> this is a security device. my phone also replaces my old

alarm clock. and -- my stopwatch. so i still like using this thing for timing tv segments. i asked one of the younger people on my staff if they knew where my stopwatch the other day and she said, what's a stopwatch? she couldn't imagine not using the one on her phone. the phone also replaces calculators. the flashlights. an app that does that. the egg timer. i can use my phone to change tv channels, replace the remote control. replaces the level. all inside my tiny phone. and i haven't even mentioned the things that the phone does that nothing did before. like music recognition. travel directions. updated for traffic. guides to the current, right now stars in the skies, and so on. who knows what's coming next that i can't even imagine. this is better and cheaper.

thank you, creative destruction. thank you, free enterprise, for allowing it to happen. that's our show. see you next week. next on "red eye." >> welcome to jedi. >> i was in jail, smells really dirty. >> i really can't relate to. >> does this surprise? >> okay. stuff happens. alities love muffin. >> it's not hard. >> that is 100% wrong. >> great point. let's move on. >> and now the thrilling conclusion -- hello everyone. i'm kennedy but you can call me keneday! welcome tonight's guest. so lit. you think? a '90s one-hit wonder band. here tonight with joanne nosuchinsky. >> you can't spell reviled, angry style-on