. >> you have access to the top quartile of pe firms.curiosity, if somebody does not, is the asset class worth a lot? >> it is. interestingly, if you went back a few years ago, everyone said, if it is not top quartile, the asset class is not worthwhile. they have not been terrific over the last five or 10 years. >> investors have been searching. quest they have to. if you are a pension fund today, life is hard. they are underfunded. it is really hard to actually exist in today's his world and it has been driving them to alternatives. bigate equity has been a beneficiary. quest fundraising wise, this year, it is one of the four best on record, which i find interesting when the s&p 500 is up 25%. what is driving that? >> a few things. if it willre weary last. it has been a good couple of quarters, but they have been seeing the volatility has been so extraordinaire i am not sure investors have totally bought into, this is it for the long haul. private equity has been delivering more consistent rates of return over those time frames. people

we divided them into quartiles. we would meet with 14 or 15 at a time. i would speak to them without their assistants, just 14 or 15 men. i said, look, you are very corrupt -- many of you. >> did you really say that? >> i said to them, you may think it is ridiculous. you are corrupt, and it has been a practice here. what if we establish a date? between now and then, you can steal anything you want. i'm speaking to -- i said, steal everything you want. we can't stop you. but let's set a date when you are going to go honest. together, we can establish a practice that would remove the corruption. you will all be rich. you will be living in europe. but let's set a date when the country has to move -- a clear- cut attack on corruption. some of them said, that is an interesting idea. i said, can you get in touch with me? i heard from nobody. we went to the countries and tried very hard. i even took with me on one these trips the gentleman who became president of germany. he thought this was unusual approach. but we tried this. i thought this was at least an ho

them into quartiles. e would meet with 14 or 15 at a time. i would speak to them without just 14 or 15 men. i said, look, you are very corrupt -- many of you. >> did you really say that? them, you may think it is ridiculous. it is corrupt, and it has been a practice here. -- you are corrupt, and it has been a practice here. what we establish a date. from now and then, you can steal anything you want. -- i said, steal everything you want. we can't stop you. but let's set a date when you are going to go honest. together, we can establish a practice that would remove the corruption. you will all be rich. you will be living in europe. but let's set a date when the -- a clear-to move cut attack on corruption. some of them said, that is an interesting idea. i said, can you get in touch with me? i heard from nobody. we went to the countries and tried very hard. i even took with me on one these trips the gentleman who became president of germany. he thought this was unusual wholapproach. we tried this. i thought this was at least an honest approach.

if you look at the performance of students by income quartile, the top quartile of american at 26ts still among industrialized countries. our top income students are not doing well either. host: anything to add to that? guest: there are a lot of ways to look at the question. --re are some questions countries where the correlation between poverty and academic outcomes is higher. that is not universal. there are examples to the contrary. it is true for the first time and we have seen data here, that the gap between the performance -- thehighest quartile 25% and the bottom 25% is the same. as you break things down, there is not as much inequity in the u.s. at all. host: -- guest: we did an analysis looking at the top performers. student to perform at the top levels. states, although the average has been relatively flat, the performance has been declining. the gap closing might be part of the result on down. you have to draw a distinction between kids. it is measured by sales. host: here's an e-mail from steve. the wall street journal said in an editorial that only 30% of china's students are

the interesting thing about that was that the bottom two quartiles, wages were raising faster than thepeople at the top. organized labor represented 35- 40% of the workforce. >> what is the figure? >> we are 12%. >> we were driving wages of the entire industry. we negotiated wages read from 73, wages have stagnated. the difference between those figures, it is gone to the top one percent because we represent 12% of the workforce. you push for full employment. as full employment comes, it will create more demand for the middle class and allow them to be purchasing and create more jobs. >> full employment. >> four percent would be the goal to shoot for. >> what about the people who are underemployed? that is what hits me when i read stories. people who are trying to live on the jobs that they once would've thought they would get when they get out of school. people whose ambitions have been curtailed. >> they are the underreported about people. they are unemployed. they don't work 40 hours. they do not make enough wages. more and more that is young people. people under 30 years old. more a

we divided them into quartiles. we would meet with 14 or 15 at a time. i would speak to them without assistance, just 14 or 15 men. i said, look, you are very corrupt -- many of you. >> did you really say that? >> i said to them, you may think it is ridiculous. you are corrupt, and it has been a practice here. what if we establish a date? between now and then, you can steal anything you want. i'm speaking to -- i said, steal everything you want. we can't stop you. but let's set a date when you are going to go honest. together, we can establish a practice that would remove the corruption. you will all be rich. you will be living in europe. but let's set a date when the country has to move -- a clear- cut attack on corruption. some of them said, that is an interesting idea. i said, can you get in touch with me? i heard from nobody. we went to the countries and tried very hard. i even took with me on one these trips the gentleman who became president of germany. he thought this was unusual approach. we tried this. i thought this was at least an honest appro

the interesting thing about that was that the bottom to quartiles , wages were raising faster than the people at the top. represented 35- 40% of the workforce. >> what is the figure? >> we are 12%. >> we were driving wages of the entire industry. fromgotiated wages read 73, wages have stagnated. the difference between those figures, it is gone to the top one percent because we represent 12% of the workforce. you push for full employment. for polemic comes -- it will create more demand for the middle class and allow them to be purchasing and create more jobs. >> full employment. >> four percent would be the goal to shoot for. >> what about the people who are underemployed? that is what hits me when i read stories. to live onare trying the jobs that they once would've thought they would get when they get out of school. whose ambitions have been curtailed. >> they are the underreported about people. they are unemployed. they don't work 40 hours. they do not make enough wages. more and more that is young people. people under 30 years old. more and more with women. those groups of americans

we divided them into quartiles. you would meet with 14 or 15 presidents at a time.tablished the principle that i could speak to them without their assistance, just 14 men or women. i got them into a room and i said, look, a large number of you are very corrupt. [laughter] >> did you really say that to their faces? >> i'm telling you exactly -- >> and wanted their faces do -- what did their faces do when you said that? >> tell them the family values story, jim. >> i said to them -- you might think it is because come but i said to them, "you are corrupt and it has been a practice here. 2y don't we establish a date or 3 years hence emma and between now and then you could steal anything you want?" [laughter] >> did everybody here that? "stilluly said this -- anything you want, because we can't stop you, but let's set a date when you are going to go honest, and together we can establish a practice that would wille the corruption, you all be rich, your families will be living in europe, here, whatever you want, but let's set a date when the country has to profit from a cl

and it is something about that point in time was the bottom to quartiles, wages are rising faster than the people at the top. during that period of time organized labor represent about 35-40% of the workforce so we were -- >> what is the feeding of? >> about 12. so we were driving wages in an entire in just. nonunion workers would get a raise because we negotiated wages. from 73 to date productivity is continued up but wages stagnated and the differences, the difference between those two figures, it's all gone to the top one or 2% because we represent as i said about 12% of the workforce. the other thing is he push for full employment. asphalt when it comes it will have a tug on wages, create more demand for the middle class, allow them to do purchasing and create more jobs. >> tell us what you mean by full employment. >> you're looking at 4%. that would be the goal to shoot for. >> what about all the people who are underemployed? like that's what i really, like it's been one of read the stories, people are either are trying to live on the kind of job today once would've thought they h

and the interesting thing about that point in time was that the bottom two quartiles' wages were risingter than people at the top. during that period of time organized labor represented about 35-40% of the work force, so we were -- >> what's the figure knockout -- now? >> we're about 12. so we were driving wages in an entire industry. nonunion workers would get a raise because we negotiated raises. from '73 to date, productivity's continued up, but wages have stagnated, and the difference is all of -- the difference between those two figures, it's all going to the top 1 or 2% because we represent, as i said, about 12% of the work force. so that's one thing. the other thing is you push for full employment. as full employment comes, it'll actually have a tug on wages, create more demand for the middle class, allow them to do purchasing and create more jobs. >> and tell us what you mean by full employment. >> you're looking at 4%. yeah, that would be the goal to shoot for. >> and what about all the people who are underemployed? like, that's what i really, like, hits me when i read the stor

what we've done is built pipelines with schools that are providing opportunity in the fourth quartileowest socioeconomic status. the new exciting set of schools, 25 across the nation, first one established in chicago in 1996. we have 51 students at georgetown right now. we do a summer institute for rising seniors. we're doing the same with kipp schools, we have theater programs within the state itself. it's very institution by institution building those relationships for feeding the institution. but your story's an american story. >> yeah. >> and one of the things i'd say about innovation and disruption and the like, understand that the elements of higher education, if you begin with the community college, the liberal arts college, the university, then the public land grant. these are all american inventions. >> you were in barcelona on this symphony orchestra. >> college education, right up there. right up there with the minimum wage. something we've got to talk about forever. >>> coming up, more on the passing of nelson mandela. it is jobs friday. we're getting ready for the numbers