energy is burned right here. they say everything is bigger in texas but sometimes bigger isn't better. >> we've subsidized oil companies for a century. that's long enough. with only 2% of the world's oil reserves. oil isn't enough. >> we know every problem is also a job. so what if we took this energy, raw power, and a fierce desire to change the world and matched our troops returning home to solve our energy independence problem. match people and problems with solutions. that's how you create jobs. we've got our boots on and we're ready to ride as the next leg of the 30 million jobs tour rolls through america today. live. february 8th, from austin, texas. well a delightful wednesday afternoon to you. nice to see you live from the

bob bullets texas state museum in the capital city of texas, austin. we're here to play a little match game. not that match game. in order to create the 30 million jobs this country needs -- that was cute. in order to create the 30 million jobs this country needs we know we must match the problems we face with the money we have to the people that we have looking for work. if you marry them together guess what happens. you end up with a solution and a job. we will also have complete coverage of course of the rick santorum trifecta wins last night in colorado, missouri, minnesota to say the least a wrinkle in the gop presidential ball game. >> i don't stand here to claim to be the conservative alternative to mitt romney. i stand here to be the conservative alternative to barack obama. >> washington will never be reformed by those who have been

compromised by the culture of washington. this is a clear choice. i'm the only person in this race republican or democrat who has never served a day of time in washington. >> well, mr. romney, many more nights like last night and you will not have to worry about serving in washington. before you get too excited newt you were fourth in minnesota, third in colorado and not even on the ballot in missouri. our megapanel will be along in a second with full analysis but back now to energy independence and our match game. what are the greatest challenges no matter who is in the white house is america's lack of energy independence and our gross energy inefficiency. so today we're excited to unveil the defense energy project. here in austin, texas two simple, powerful goals of this product. number one, create a jobs program that helps veterans

returning from wars fought over foreign oil such that they can get work in america, creating clean energy and energy efficiency and independence. that's what it is. more on that later in the show. the second component of the defense energy project is this. expose the true cost of hydro carbons including the cost of the wars that we fight and the environmental toll in order to restore the necessary price integrity to our so-called free markets with the discussion of a plan called fee and dividend. in short, fossil fuel producing companies would pay a fee, which would be pooled into a national fund that would be that directly distributed, equally to each of us, 311 million americans. we would effectively be taxing energy waste and rewarding with a dividend energy efficiency.

joining us now to learn more is an advocate of the program i just described and brian merchant who has been taking the lead on advocating a broader understanding of the breach in price integrity. explain your understanding, brian, of why the breach of price integrity and the real cost of our fuel sources is such a problem. >> well, most americans have no idea how rigged the market is in favor of fossil fuels. it is no secret we dump tens of billions of dollars directly into the pockets of big oil every year in the form of subsidies, tax breaks, direct from our pockets to theirs. that is a small fraction of the cost. even though it amounts to billions of dollars and totaled as many as $500 billion over the last 50 years or so, the real

costs are the indirect ones i know you've illuminated in your work, too. in other words, the u.s. military pays, i mean, the oil industry can't operate without the u.s. military providing security presence. >> $7.3 trillion just for aircraft carriers in the persian gulf over the past couple decades. >> right. that is not a cost a lot of people recognize that, of the american taxpayer footing the bill for but the oil company gets a huge deal. they get to use that as their own personal security detail. it's a huge cost for american taxpayers. >> so, dr. hanson, as we come to better understand the free market can only function if there is actual integrity in the prices, actual integrity if we man up if you will and deal with the actual cost of the energy sources that we're choosing, how is it that the proposal that you have been discussing and are introducing effectively more broadly now to restore price integrity works, how do we fix

this problem? >> let me first say and i'm speaking as a private citizen not representing the government even though i'm a nasa employee. also, let me point out that there are other costs to fossil fuels. the human health damage from air and water pollution from fossil fuels is huge. it sits on hundreds of billions of dollars per year. and in addition, there is the cost of climate change, which is going to be borne mainly by our children and grandchildren. the climate is already beginning to change. the way we should deal with this is by putting a price on the fossil fuel emissions by collecting a flat fee on oil, gas, coal, at the source, the domestic port of entry. that money should then be distributed uniformly to legal residents of the country. i would give one share to each legal adult resident of the

country and half a share to children up to two per family. if you did that, then more than 60% of the people would get more in their dividend than they'd pay in increased energy prices. those people who pay special attention trying to minimize their fossil fuel use, using clean energies, energy efficiency, they would do very well. >> brian, if we were able to restore hydro carbon price integrity or move in that direction, is it even possible to anticipate the rate of adaptation and the effect it would have on the rate of transition to both more efficient fossil fuel use and alternative use? >> it would be amazing. i mean, the advantages of the fossil fuel industry are enormous. they're enormous and, you know, politicians complain about a little tiny subsidy for a solar company. they're not seeing the whole picture. if there is even a modicum of

price integrity restored to this scenario we would see american innovation unleashed. we would see clean tech solutions. we would see a whole new outpouring of funding into a new sector, you know. this would be a job creator. this would unleash american innovation. this would do kind of all of the things that need to happen in this sector so america can get a foot forward. >> it would come from the coal companies, natural gas companies and oil companies. we know they are very effective with our government. is there anything in addition to the stick that you create for them with this tax that says listen, burn less, be more efficient or you're going to have to pay, is there any way to create the carrot for the 5% or 10% of our population that really will bear a disproportionate portion of this tax? is there a way to create an incentive for those that would, you see the rewards.

we will get the dividends, 60% would get more money. we'd burn less energy. how do you mitigate the most acute political resistance from the biggest payor? >> well, the incentive is for everybody. let me give a quantitative example to the question you had just asked. if we put a fee that we collected at a rate of $15 a ton of carbon monoxide the first year, and increasing $10 a ton each year, at the end of ten years, that would be $115 a ton and the amount collected would be close to $600 billion a year. if you distribute that among the legal residents it would be between $2,000 and $3,000 per legal resident. so a family with two or more children would get between $6,000 and $9,000. they would get it monthly. electronically to their bank account or if they don't have one to their debit card. this would reduce our fossil

fuel dependence 30% in ten years. that's been run through economic models. and that reduction is equivalent to more than ten times the amount of oil that would be carried by the keystone xl pipeline. so we wouldn't need that pipeline. we would be using -- >> so, dr. hanson, i need you to repeat what you just said. because it was very significant. people like to think about the costs. i want you to repeat what you just said about the fuel savings and the comparative analysis of the fuel savings of a proposal like this relative to what we're currently debating. >> it's huge. >> what you just said was very significant. >> the carbon tax center in washington has run this through economic models and finds that it would reduce our fuel use by 30% in ten years. that is ten times more than the keystone xl pipeline would carry

and would make our industry more competitive. that's what we need to do. in order for the economy to work most efficiently, you need to have the true costs for the fuels that are being used. you don't want to subsidize them because all of those subsidies are coming out of the taxpayers' pockets. >> yeah. dr. hanson, you have, again, your exertion of rational thought is remarkably admired and if i could send it through signal transfer into the brains of our policy makers i would magically do so. if nothing else it is an honor to be able to give you a louder voice. brian, the same is true, tremendous work with tree hugger and your reporting. we both know all of us this is a beginning of a conversation not an end. once you understand the breach of price integrity then you can begin the conversation about the most intelligent ways to restore that that is the most respectful to our incumbent business but at the same time gets us where we need to go. be sure to check out brian

merchant's incredible blog right now at treehugger.com as well as dylan ratigan.com. look for more on this in the months to come. coming up from austin, texas how we can channel human power to energy independence. a navy net putting returning troops to work in clean energy. is this the eisenhower plan if you will for the 21st century? plus, ripped from the pages of "greedy basterds" we're connecting the dots on energy and talking about how we can break the oil pushers' grip. next, what does rick's trifecta do to the gop race? the megapanel joins us from a state where size matters. we've got a big show in this the fourth leg of our 30 million jobs tour live from the texas state museum. when you have tough pain, do you want fast relief?

try bayer advanced aspirin. it's not the bayer aspirin you know. it's different. first...it's been re-engineered with micro-particles. second, it enters the bloodstream fast, and rushes relief to the site of your tough pain. the best part? it's proven to relieve pain twice as fast as before. bayer advanced aspirin. test how fast it works for you. love it, or get your money back.

the next time you're driving around this country think about the fact that the -- all right. welcome back to texas. our 30 million jobs tour, our next journey through the state of texas and at the top of the show we showed you a little of last night's action from election 2012. rick santorum took the triple crown sweeping through all three contests -- missouri, minnesota, and colorado. but is the santorum spike simply a romney rejection? remember, we still don't get an against line on our ballots so you're forced to pick somebody else if you don't like the first

character. with us here in texas jonathan capehart, refusing to leave their urban dom cyle imogene webber and robert cox. nice to see all three of you. your interpretation of yesterday's events and how offended are you by their refusal to join us? >> i am extremely offended. dylan? >> yes. we can ignore them now. >> it was expected that santorum would do very well if not win minnesota. when it came across he won missouri, it was like oh. but to win colorado as well a. state that mitt romney won in 2008, and to do so by five points, i think, we were talking about newt gingrich being the comeback kid twice over. now here is rick santorum. i think it leads into what you said in your intro. folks don't like mitt romney. they don't like him. they're showing it by having santorum and newt gingrich win states. but they also are showing it by

turning out in lesser numbers in a lot of these contests -- nevada, colorado, and other places. mitt romney is not getting nearly as many votes as he did the last go round. >> rob, if there was an against line on the ballot so you could vote for mitt romney or against mitt romney, you could vote for newt gingrich or against, you get the point right? you have two choices with every candidate as opposed to one. >> yeah. >> you think any of these candidates would still be in the race? >> i do. i actually have a different line than jonathan. my sense is because as jonathan points out there is such a low voter turnout. i think you're getting a lot of energized voters that actually turn out and of course they then make the decision with a very low number. the problem is, these are -- or the problem let me just say i think that this is a more ideologically charged up wing of the party and i think there is a certain amount of enthusiasm for santorum on a lot of social conservative issues. so i guess my concern really about this is he's going to come in there and now going to get a

lot of money and mitt romney has to respond on issues that are different than how do we solve a terrible tax code? how do we fix our deficit problems? how do we get more competitive in this country? you'll see them fighting on things like abortion and other conservative issues. i guess that is my concern here. >> that's a great point. we talk on this show all the time about wanting the debate america deserves on tax reform, on bank reform, on trade reform just to pick up where rob said. how much does it hurt our ability to resolve the jobs crisis in this country if we continue to have these political parties drawing us into these wedge issue based debates for power? it's a great way for them to exchange power but prevents any of us from being able to work on our collective problems. >> it hurts america big time, dylan. fundamentally this is 2012. rick santorum would have been an amazing candidate a hundred years ago. this is an america which quite frankly came out basically in

favor of same sex marriage last year according to polling data. 98% of catholic women in america use birth control who are in a sexual relationship. fundamentally it's crazy we're talking about these social issues. very interestingly absolutely as rob and jonathan pointed out it is about voter turnout. that is the story. let's face it. republicans are looking at the people who are running for the nomination and thinking really? is this it? >> it's interesting, though. as we look at the jobs crisis in this country, 30 million jobs we have to create. look at the housing crisis and the need to resolve that debt. look at the trade agreements with china in which we're being hugely taken advantage of. you look at the energy conversation. how do you explain, what is wrong with our political system i guess is my question that in the presidential debate with these core issues that what we're seeing develop is not a debate around how to solve those

problems but an exchange of power between men manipulating the lizard brain of the electorate on their fear of some other thing. >> well, look. what we're seeing now in the republican contest is the lifeblood of the republican party, the energy of the republican party, the ones who come out and right. the far right, the conservative wing of the republican party. >> social conservatives. >> they care about choice and same sex marriage. >> they don't care about jobs? >> they do. but these are the issues that really motivate them cycle after cycle to get them to come out and vote. on the democratic side the far left and super progressives in the democratic party who energize the base. we won't have that conversation that you're looking for until there is a nominee of the republican party in september and then you go from september to november to have a real conversation about the issues that are facing this country. that's not enough time. that is not enough time for anyone to talk in any kind of detail about the issues everyone

cares about including you. and so i think what we really need to do is, well, through the campaign talk about these issues but then ensure that these issues continue to be talked about either in the second term of an obama administration or the first term of the republican administration. i do think the can has been kicked down the road so long and so far that the next president will have no choice but to engage the conversation. >> rob, what is your greatest fear? when you look, you say okay. they have a shrinking electoral pool in this primary. more highly -- with your analysis, right, smaller pool, more motivated socially. all the things we talked about. what is your greatest fear that will do to the nature of the policy making debate as it pertains to trade, housing, tax code, jobs x, and the things we all are so anxious to debate even if we have differing opinions on how to solve them? >> i think they'll pander to that base. you're already seeing signs of it. we're seeing it through the whole circus. i think you'll see more. if you think about it we were at

the point where we could sort of see a light at the end of the tunnel where we had a few front-runners. they could start to debate some of the real issues. now you get pulled back again to use a godfather analogy. and they're pulled back into the social conservative issue. they're not going to be focusing on trade or tax policy. all of those things. i mean, that is my concern. will it happen? i mean, that is my worry but there is a chance, i mean, if it's, you know, part of it is making sure that people in the media and we do have a lot of debates and one thing that is good about all of these debates is people can throw questions in there and try to veer the conversation back to the important things so they can talk about, i don't know whether santorum has this idea about zero percent taxes for manufacturers in the united states. interesting idea. i'm not sure i agree but you can start to have that conversation. >> right. at least you can start a conversation from there. at this point i think our point of view is pretty well known having renamed our show 30 million jobs. but that doesn't -- that seems to be -- we need to rename all the shows 30 million jobs. then we'll see what happens. jonathan, it is a delight.

thank you so much for making the trip. >> great to see you, dylan, imogene, rob. can't see you but i know you're there. >> is you guys later. straight ahead who is keeping america hooked on oil? and what is preventing america for its energy independence. we're connecting the dots right after this. my wife and i have three wonderful children and they make my life just perfect. we were having too much fun, we weren't thinking about a will at that time. we were in denial. that's right. [ laughter ] we like our freedoms, but at the same time we have responsibilities to the kids and ourselves. we're the vargos and we created our wills on legalzoom. finally. [ laughter ] [ shapiro ] we created legalzoom to help you take care of the ones you love.

go to legalzoom.com today and complete your will in minutes. at legalzoom.com, we put the law on your side. it's real milk full of calcium and vitamin d. and tastes simply delicious. for those of us with lactose intolerance... lactaid® milk. the original 100% lactose-free milk. the day starts with arthritis pain... a load of new listings... and two pills. after a morning of walk-ups, it's back to more pain, back to more pills. the evening showings bring more pain and more pills. sealing the deal... when, hang on... her doctor recommended aleve. it can relieve pain all day with fewer pills than tylenol. this is lois...

who chose two aleve and fewer pills for a day free of pain. [ female announcer ] try aleve d for strong all day sinus and headache relief.

we're talking energy here in texas because without an energy plan, the numbers very simply do not add up and never will. 30 million jobs, which is how many jobs we need, but creating those 30 million jobs is being

held hostage by the sheiks and oil barons overseas. a bit of good news on that front. for the first time in two decades in our country a new report has found we have finally begun to reverse our dependency on foreign oil by producing more energy here at home. remember, we have the technology to free our nation from oil dependence. we simply need to break the greedy bastards' hold to make it happen. every recent effort toward energy dependence is being slowed and in many cases completely blocked by the misaligned interests and greedy bastard behavior in the system. this is nothing new. >> by the end of this decade, americans will not have to rely on any source of energy beyond our own. >> not the complete answer to energy independence but still a start. >> this intolerable dependence

on foreign oil threatens our economic independence and the very security of our nation. >> we got a problem. we're addicted to oil. >> so today we're connecting the dots on energy. no matter what anyone says, the u.s. military is engaged across the middle east on the taxpayers' dime to secure our vital energy resources. iraq was the world's second largest oil producer when we invaded in '03. afghanistan, home to vital oil pipelines and we intervened in libya where they export 1.3 million barrels a day of oil. plus, history shows some of the cash we spend buying foreign oil has ended up in terrorist hands. osama bin laden rode a wave of saudi oil money into power. iran uses oil money to fund hezbollah and hamas not to mention the environmental costs. sometimes the damage as we know is massive. remember the gulf oil spill? in japan last year it was even

worse. we might be paying $4 a gallon for our gas but factor in these environmental and military costs to the free market, and the milkin institute says the real cost jumps to $14 a gallon. would you pay that at the pump? and our u.s. tax code is not helping to solve the problem. in fact, our tax code treats every fuel source differently which only reinforces the rigged energy market mentality. this reverse hot spotting pours money into fossil fuels instead of incentivizing the transition to cleaner, more efficient ones. making matters worse our bought government refuses to alter the tax code as the they have the oil and coal industry's greedy bastards whispering in their ears spending $871 on lobbying. our national efficiency standard for stationary power generation has been stuck at 34% since eisenhower was in the white house in the 1950s.

in 2010 alone disruptions in our inefficient power grid cost our country in excess of a hundred billion dollars. it is even worse when it comes to our cars. bob deans of the national resources defense council says for every ten gallons of gas you pump into our suvs only two gallons are actually used to move our cars. there are solutions that are already in place. germany and japan have efficiency ratios for their stationary power. 80% or better. the cars waste less, too. in order to start reforming our own energy sector we need to restore price integrity to the market place with a 5% annual gas tax that would more closely represent the true cost incurred for our dependence on oil. the markets need to start rewarding efficiency and punishing waste. think flat taxes and flat subsidies as a necessity to force washington to treat all fuel sources equally. talk to your own elective

leaders and demand an update to the eisenhower era of efficiency standards for the 21st century. if our generation can unify and reverse this greedy bastard behavior we, together, will make the u.s. richer for millions of jobs, safer in a way that could never be calculated, and overall more productive, more creative and more adaptive. you can learn more about the energy connect the dots by picking up a copy of our book "greedy bastards" now into its third week as a "new york times" best seller thanks to you for engaging in that conversation with us and all six of the books connect the dots are available as interactive maps online at greedy bastards.com. you can please take some time to check that out. next up here from securing our oil to securing our future the plan to create clean energy jobs for returning veterans. more on our defense energy project from austin right after this. the 30 million jobs tour, live

in texas. home to nearly 200,000 of america's troops. [ male announcer ] the draw of the past is a powerful thing.

but we couldn't simply repeat history. we had to create it. introducing the 2013 lexus gs, with leading-edge safety technology, like available blind spot monitor... [ tires screech ] ...night view... and heads-up display. [ engine revving ] the all-new 2013 lexus gs. there's no going back. you walk into a conventional mattress store, it's really not about you. they say, "well, if you want a firm bed you can lie on one of those, if you want a soft bed you can lie on one of those." we provide the exact individualization that your body needs. wow. that feels really good. it's about support where you find it most comfortable.

at the ultimate sleep number event, queen mattresses now start at just $599. and save an astonishing 50% on the final closeout of our innovative limited edition bed. only at the sleep number store. on december 21st, polar shifts will reverse the earth's gravitational pull and hurtle us all into space, which would render retirement planning unnecessary. but say the sun rises on december 22nd and you still need to retire, td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? the two trains and a bus rider. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be.

♪ because your moment is now. let nothing stand in your way. learn more at keller.edu. maximum aggression, dheen it again. and again. after each round of fighting, soldiers must carry each other a hundred yards around the pit. from the start they have a secret pledge. a ranger never leaves a man behind. next comes the bear crawl and then more of everything. >> let's go. >> nonstop for hours on end. five hours in.

night falls and the agony continues. >> where's your ranger buddy? >> nea behind-the-scenes look a the grit, power, and fearsome energy it takes to become an elite member of america's military. that from discovery channel's surviving the cut. it's worth a look. one goal of this defense energy project we're rolling out today is to take that same blazing passion, incredible capability, and devote it to american energy independence rather than war. joining us now is liz perez, a navy veteran herself and a founder of gc green which is an organization dedicated to finding clean energy jobs for troops returning home. officer perez, give us a sense of how well received your program is inside the military. standing outside of it looking at it seems very rational but i'm interested to know how it's

being received. >> well, you know, first off, dylan, thank you so much for having me on your show and it's actually a petty officer perez. i want to get that clear because there are some navy folks out there that -- >> thank you. my mistake. they'll yell at both of us. >> yes, yes. exactly. i started gc green about two years ago and we're a renewable energy and energy efficiency general contracting and consulting firm. we came in at a bit of a different angle and what that angle was is we focused on clean energy job training for veterans and people thought, well, you're a general contractor. why are you training veterans in clean energy? i thought, well definitely. exactly. it's needed. and i have been in the green build engineering field for about six years. during that time, you know, there is a lot of buzz about green jobs but what i really saw

which was upsetting me was you had the green job training and, yeah. there are actual jobs that are present so i wanted to come up more with a solution definitely and more focused on the veteran emphasis. >> give us a sense of the scale, petty officer perez. give us a sense of the scale. how many veterans are unemployed? i see the statistics. they look terrible compared to the average unemployment rates we report in this country. and how many jobs do you think could be created were we to enlist these returning veterans for a crusade for american energy independence? >> well, the numbers are quite alarming especially those ages from 18 to 24. i want to say it's somewhere between those ages and about 31%. even more so if you're a female veteran. i know there are programs out there to help veterans that are 35 to 60 age range so there are

a lot of programs to help veterans and i really think, you know, especially in these times in america's economy it is really more important to focus on veterans helping veterans and that's really what i'm trying to promote with gc green. we promote taking a -- solutions with energy, environment, and veterans. and i really think as a veteran and business owner that i can be a part of that solution in helping other fellow veterans. during my transition i had a bit of a tough time transitioning out of the military. i'm hoping that through my company and maybe other programs that i can direct them to we can create solutions, create more clean energy veteran entrepreneurs, and create a better america. >> we've -- the base premise of the 30 million jobs tour is if you have problems, and you have human beings, if you mix problems and people together, they tend to result in solutions

and jobs. we cannot think of a better problem, american energy dependency, a better goal, american independence, and better group of people to spearhead that effort, that america's returning veterans. does that logic resonate with you? >> absolutely. i am a second generation veteran. my dad served in the army nearly 20 years and i came out with that same kind of dna i call it. it's military dna and it's embedded in us. and i went in, volunteered to join the u.s. navy, and outside of uniform i think it's my job to continue service outside of uniform. and part of that service is to take care of our fellow veterans by creating and guiding them toward meaningful jobs. it's needed here in america. again, coming from as a san diego native, you know, we have a lot of clean tech, clean energy technology being

developed right here. and also being developed in texas and in college station, texas where i went to the entrepreneur boot camp for veterans program, texas a&m they're coming up with solutions right there in texas. and i really think it's important and california is one of the leaders and texas also together being the leaders in sustainability and creating solutions and that's going to come through education and why not do it with veterans? you know, red, white, and blue and why not green? >> and when you look at the capacity that you and your colleagues, the young and energetic and powerful and inspired really, particularly in the community that you share with one another and the loyalty and the commitment to help one another achieve really any mission that you're asked to pursue, i can't think of a better group of americans to point toward the mission of american energy independence. the question i think that a lot of us have is what can we do to

help people like you recruit more attention, recruit more investment, recruit more awareness such that you become less of an oasis in otherwise a desert of activity when it comes to american energy independence, that you become the rule as opposed to the exception? >> i agree. we do need help and we're still a small company. we've only been in business for two years and we're still a small company in san diego. so much of this needs to be spread and i'm hoping that our business model may be another veteran out there sees us and may be attracted to clean energy. i'm hoping there are other veterans that would like to even start their own clean tech, clean energy job and something ip or other hire veterans and don't know how. contact me. i have a lot of veterans we've trained statewide here in california from eureka to san diego in energy efficiency.

and if you need a veteran that is in the green field i can provide you with one. i just think you know not just on the training realm, dollars need to be provided there. we're also working with san diego state on their green certificate program. the kaufman foundation. and, you know, there are folks involved to help us with the training but we need the jobs. we need the projects. i call for the government to help us out and make that more of a conduit for us. as a veteran business to be able to do that. >> and if you look to dwight eisenhower after world war ii, with all those returning world war ii veterans and the need and opportunity to build america's highway system, power grid, modern energy infrastructure circa 1950, we still have the eisenhower era energy infrastructure circa 1950. i can't think of a more admirable crusade for america's

returning veterans than this. you are clearly a leader in that regard. i would love for you to come to texas and join us. we have the ceo of shell joining us on friday. would you make the trip? >> absolutely. i love texas and i've been there a couple times. i was just in austin a couple months ago as a matter of fact. >> all right. we'll see you here on friday with a conversation this friday with petty officer liz perez, veteran navy logistics specialist and john hofmeister former chief executive of shell. next up here old texas versus new. how a little old music festival called south by southwest rocked this city and created not only identity that transcends the world now but a cradle of innovation for the community and the process. the 30 million jobs tour continues live from the live music capital of the world. plug your ears, nashville, after this. ♪ you and me and the big old tree ♪ ♪ side by side, one, two, three ♪

♪ count the birds in the big old tree ♪ ♪ la la la [ male announcer ] the inspiring story of how a shipping giant can befriend a forest may seem like the stuff of fairy tales. ♪ ♪ you and me and the big old tree side by side ♪ but if you take away the faces on the trees... take away the pixie dust. take away the singing animals, and the charming outfits. take away the sprites, and the storybook narrator... [ man ] you're left with more electric trucks. more recycled shipping materials... and a growing number of lower emissions planes... which still makes for a pretty enchanted tale. ♪ la la la whoops, forgot one... [ male announcer ] sustainable solutions. fedex. solutions that matter. nature valley trail mix bars are made with real ingredients you can see. like whole roasted nuts, chewy granola, and real fruit.

nature valley trail mix bars. 100% natural. 100% delicious.

if you took the top down on a crossover? if there were buttons for this? wouldn't it be cool if your car could handle the kids... ♪ ...and the nurburgring? or what if you built a car in tennessee that could change the world? yeah, that would be cool. nissan. innovation for today. innovation for tomorrow. innovation for all. ♪ get on e-trade. set up a real plan. frank! oh wow, you didn't win? i wanna show you something... it's my shocked face. [ gasps ] [ male announcer ] get a retirement plan that works... at e-trade.

♪ ♪ i heard you sang a good song i heard he had a style ♪ ♪ and so i came to see him >> there were bands like white stripes, the strokes, i mean, you had never, ever heard of them. they came to town, played a show. by the time they left they had a buzz. within a year they were selling a million records. >> 25 years ago very few people had ever heard of austin outside of texas. but because of what you just

saw, the south by southwest festival, this town has been changed forever. today south by southwest features big name acts. you heard some. katy perry, white stripes, the beastie boys. the list goes forever and a lot of big names are born here. 300,000 people, bigger than the daytona 500, ladies and gentlemen. 170 million smackers into the austin economy. that's real money in any town. and with us now is the film maker of outside industry, the story of south by southwest alan berg and hugh forest. one of the founders of austin south by southwest music festival, one of the first employees. and it's a pleasure to have both of you here. realize you're about a month out. why did you make the movie? what is your point? what are we supposed to take away? what do we learn about what you guys have done in this town? >> well i made the movie because i'm proud this event took place in the city that i love. and it illustrates just the entrepreneurial creativity.

people finding a passion and pursuing it and creating something as wonderful as south by. i wanted to document that and share it with people. >> the interesting thing is as we travel around you see that there are all different cultures. it's completely, totally different but there is a commonality in how those are succeeding do things and the way that they work with each other and the way they embrace the local culture. they embrace the local identity. what do you think was so definitive as to how you guys chose to -- you didn't know what was going to happen but you must have chosen a certain way to work with each other, certain goal, certain culture. give us a sense of what the early culture and goals were that ultimately led to this sort of experiment that blew up to be so fabulous. >> i think south by southwest is very much a reflection of austin and the creative culture that's in austin as alan referenced. 25 years ago we were a very, very small organization and that was a good thing. we had the chance to kind of grow organically and, you know,

ten years, after ten, 15 years it began to get a lot of noise. a lot of -- create a lot of movement here. but i think the -- as much as we've grown the heart of the event has always been the same which is to focus on creativity whether in musicians or film makers or, you know, the interactive technology piece. >> what is your favorite part? >> it varies from year -- >> how do you explain it? how do you explain the secret sauce? >> ten days of chaos really. for ten days this is the center of the world for people who are doing interesting things in film, interactive, and music. every year the highlights are different. twitter was launched here in 2007. johnny cash when he came in '94. that was a big deal. and so every year is a different highlight. this year bruce springsteen is coming. >> sure. >> but there's obviously something that these people feel that they get whether it's bruce springsteen or somebody that's an established artist who is coming or somebody who has never -- who is a brilliant

artist from some other part of america who none of us have heard of but will emerge next month when they are here which also is guaranteed to happen if you look at your history. there's something that they're getting, something that gets them off the couch wherever they are that says it's worth my while to go down there. >> sure. >> what is it? >> well, we like to say that south by southwest for attendees is about taking your career to the next level. so if it's johnny cash wanting to break into the alternative market, great. he was able to do that. if it's a young musician just trying to make initial contacts you can do that also. on our end the stuff that i work on with web developers or wireless developers, that type of thing, it's a great way to meet other people doing the same thing. meet vcs, meet angel investors. creativity that comes to austin in march. >> it is interesting. you talk to people and there is an entrepreneurship program in south florida called launch pad on university of miami. obviously you can talk ad

nauseam with the folks in northern california. the common trait and i'm only a little bit into this is the community, that the community environment is what brings people. people feel they're going to meet other people that are going to either recognize their talent or help them solve a problem that they don't know how to solve. am i over simplifying it and really trying to identify the common trait of these -- this type of a thing as being -- the base necessity is an engaged community sure. i think you're exactly correct. on the one hand it's the austin community which has always been so creative. on the other hand it's this community that comes together around austin for what we do on the interactive end there is also this big component of a virtual community and that's one of the things that's helped us grow so much in recent years. it's people coming to austin, having a good time, blogging about it, tweeting about it, putting it on their facebook page. just creates more and more interest and more and more excitement and more and more enthusiasm. >> i have this theory that, you

know, this is a blue city in a red state and so this is where i came because i could breathe. if you're creative and you're in texas, they gathered all the weirdos in texas and put them all in one place. these are folks with strong personalities who say i'm going to do something and who can help me do that? it is that percent convenience and roland who helped start south by and his partners louis and nick, i mean, they had a certain vision that they were going to pursue to start the austin chronicle and south by. >> well, congratulations on a remarkably successful experiment shall we say and one that this. the xt festival is march 9th through 18th so next month. this of course just the beginning for us in austin. we'll give you a taste of what is on tap in the days ahead when we return. ♪ all my exes live in texas i had enough of feeling embarrassed about my skin.

[ designer ] enough of just covering up my moderate to severe plaque psoriasis. i decided enough is enough. ♪ [ spa lady ] i started enbrel. it's clinically proven to provide clearer skin. [ rv guy ] enbrel may not work for everyone -- and may not clear you completely, but for many, it gets skin clearer fast, within 2 months, and keeps it clearer up to 9 months. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal, events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness. if you've had enough, ask your dermatologist about enbrel.

the big issue? jobs. america has the money. we have the people. what we need to do is match people, ideas, and investments to create jobs and get millions of us back to work. as we finish up our first day here at the texas state museum in austin, really want to review just two things. one, we've got a big problem. energy independence doesn't exist in this country. we have a lot of people that want to help us solve it. our returning veterans. the defense energy project revolves around that core narrative and the need to restore price integrity in order to catalyze the market to pursue those things. i invite you to visit tree hugger and spend time inside the energy chapter of "greedy bastards" to understand our motivations in