Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown
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0:08 - 0:10I try and make anything I do as relevant
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0:10 - 0:14to the people who are listening
to me at that moment, -
0:14 - 0:15so where are you guys?
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0:15 - 0:17How many of you are undergrads?
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0:17 - 0:18Show of hands.
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0:18 - 0:19Virtually everyone, oh my God.
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0:19 - 0:20Let's do that again.
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0:20 - 0:22How many of you are seniors?
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0:23 - 0:24Juniors?
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0:24 - 0:25(Cheering)
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0:25 - 0:26Sophomores?
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0:26 - 0:27(Cheering)
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0:27 - 0:28And freshmen?
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0:28 - 0:31All right. Good stuff.
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0:31 - 0:34I'm going to talk to you
as if you're juniors. -
0:34 - 0:37I'm just going to land
in the middle somewhere. -
0:37 - 0:38It's all good.
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0:38 - 0:41So, the theme is going to be
the flow of talent. -
0:44 - 0:47The graphic that kicks us off,
if I can get this thing to go - -
0:49 - 0:51Hey, Mike, where do I point this thing?
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0:53 - 0:54Sorry.
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0:55 - 0:56Thank you.
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0:57 - 0:59Or should I click this thing?
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1:00 - 1:03This is the graphic we're going to use
to kick off the discussion. -
1:03 - 1:05For those of you who are seniors,
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1:05 - 1:08this might be more familiar
than if you're a freshmen. -
1:08 - 1:10So what this graphic represents
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1:10 - 1:13is that it's a lot easier
for a young, smart person right now -
1:13 - 1:15to become a banker, consultant, or lawyer
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1:15 - 1:18than it is to do just about anything else.
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1:18 - 1:19I resemble this.
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1:19 - 1:22I graduated from Brown in '96,
and did not know what I wanted to do. -
1:22 - 1:25So I went to law school,
which clarifies absolutely nothing. -
1:25 - 1:26(Laughter)
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1:26 - 1:29For those of you who are thinking
about law school, -
1:29 - 1:32you should know that awaits
if you do that. -
1:32 - 1:34(Laughter)
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1:34 - 1:38I graduated from law school and,
not knowing what I wanted to do still, -
1:38 - 1:40I became an M&A and banking
attorney in New York, -
1:40 - 1:42because that's what you did
out of Columbia -
1:42 - 1:44if you didn't know what to do.
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1:44 - 1:46I was there for about five months.
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1:46 - 1:49I went home dispirited
that Thanksgiving, to my parents. -
1:50 - 1:52I said, "You know, Mom and Dad,
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1:52 - 1:55when I was young, I didn't dream
about being the scribe. -
1:55 - 1:58I dreamt about going in the woods
and killing something." -
1:59 - 2:01They, of course, didn't know
what I was talking about. -
2:01 - 2:03I then went back to my job and said,
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2:03 - 2:07"You know what, I feel like I'd like
to try and build something, -
2:07 - 2:09but I don't know if I have wherewithal."
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2:09 - 2:13So I took a week off from work,
and then tried to start this company. -
2:13 - 2:16Made enough of what felt like progress
so that I then went and quit my job, -
2:16 - 2:18and then started a dot-com.
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2:18 - 2:19This was around 2000.
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2:19 - 2:21Had its mini rise and maximum fall.
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2:21 - 2:23We raised about a quarter
of a million, got some press, -
2:23 - 2:25but then the bubble burst.
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2:25 - 2:27How old were you guys
when the bubble burst in 2001? -
2:28 - 2:29(Audience) Eight.
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2:29 - 2:31Eight, nine.
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2:31 - 2:32(Laughter)
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2:32 - 2:35So, do you guys have
any recollection of that time? -
2:35 - 2:38Maybe your parents watching CNBC,
very sad for a little while, -
2:38 - 2:39or something like that.
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2:39 - 2:40Anything like that?
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2:40 - 2:42There are adults among you
who remember this stuff. -
2:42 - 2:43When it burst,
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2:43 - 2:46it was like a giant hand
went through the streets of New York -
2:46 - 2:49and swept away any company
that was not nailed down, -
2:49 - 2:50including my little outfit.
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2:50 - 2:51At this point, I'm 25.
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2:51 - 2:53I've just lost investors about $0.25M.
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2:53 - 2:56I still own $100,000 in law school debt.
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2:56 - 2:59My parents are like, "What happened?
You used to be smart." -
2:59 - 3:01(Laughter)
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3:02 - 3:04At this point,
I had been bitten by the bug -
3:04 - 3:06and said, "You know what,
I think I really want to do this. -
3:06 - 3:09I want to learn how to build
a business, a company." -
3:09 - 3:10I'm going to submit this you.
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3:10 - 3:12What should young Andrew do now, 25,
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3:12 - 3:14lying on his floor,
looking up at the ceiling? -
3:15 - 3:16What's the next step?
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3:17 - 3:18(Audience) Try again?
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3:18 - 3:21Try again, but how to try again,
given that I just raised money and lost, -
3:21 - 3:25and it's like 2001, 2002
when no one wants to invest in anything? -
3:28 - 3:30(Audience) Getting them to believe in you.
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3:30 - 3:32Wow, I don't know what that means.
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3:32 - 3:34(Laughter)
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3:34 - 3:37Okay, so I'm going to submit
something else to you. -
3:37 - 3:40Let's say you wanted
to become a chef, really bad. -
3:40 - 3:41What might you do?
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3:41 - 3:43(Audience) Chef school.
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3:43 - 3:44Chef school. Another possibility?
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3:44 - 3:45(Audience) Get a job.
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3:45 - 3:46Get a job where?
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3:46 - 3:48(Audience) As a chef at a cafe.
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3:48 - 3:50Right, you would take your chef knife out,
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3:50 - 3:52and you would go down on one knee.
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3:52 - 3:55You would go to someone
and say, "Be my master." Right? -
3:55 - 3:58You'd find someone who's a better chef.
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3:58 - 4:01So that's what I did:
I found an experienced entrepreneur. -
4:01 - 4:05And I became his lieutenant,
his VP of something or other. -
4:05 - 4:08And so for four years, I supported him
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4:08 - 4:10as that company raised
about seven million dollars -
4:10 - 4:12and three million in revenue.
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4:12 - 4:14Then I became the CEO
of a company called Manhattan GMAT. -
4:14 - 4:15Has anyone heard of it?
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4:15 - 4:17Juniors, seniors, maybe?
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4:18 - 4:21Manhattan GMAT grew from being
a relatively small GMAT boutique -
4:21 - 4:24to number one in the US
over the next five or six years, -
4:24 - 4:27to the point where we were acquired
by The Washington Post in 2009 -
4:27 - 4:29because we were number one in the US.
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4:29 - 4:30Washington Post owns Kaplan.
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4:30 - 4:32We were beating the tar out of Kaplan.
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4:32 - 4:35Kaplan got tired of it,
so the CEO calls me and says, -
4:35 - 4:36"Hey, let's talk."
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4:36 - 4:40We have a little bidding process,
and the company gets acquired. -
4:40 - 4:43It's one of the reasons I'm very familiar
with this particular picture; -
4:43 - 4:46many of the people my company started
in Manhattan GMAT -
4:46 - 4:47were bankers and consultants
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4:47 - 4:50who weren't really finding
what they were looking for -
4:50 - 4:51as 20-something year olds,
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4:51 - 4:54so they would take the GMAT,
apply to business school, -
4:54 - 4:55and then go to business school.
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4:55 - 4:57So, I'm going to continue with this.
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4:57 - 5:00Let's take a look
at what the actual numbers are. -
5:00 - 5:02Let's take Harvard's class of 2011.
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5:02 - 5:05What were the most common things
to do out of Harvard a year ago? -
5:05 - 5:06Shout them out.
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5:06 - 5:08(Crosstalk)
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5:10 - 5:12Yes, finance.
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5:12 - 5:13(Audience) Doctor.
A.Y.: Consulting. -
5:13 - 5:16Law. Not accounting.
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5:16 - 5:17(Laughter)
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5:17 - 5:19And the fourth is med school.
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5:19 - 5:20The question is,
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5:20 - 5:23what proportion of Harvard students
did one of those four things? -
5:23 - 5:26(Audience responses)
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5:27 - 5:29All right, so I've got
between 40 and 90 percent. -
5:29 - 5:32And as usual, the wisdom of crowds,
the truth is exactly in the middle. -
5:32 - 5:34It's 65 percent.
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5:36 - 5:39Then you have the potpourri category,
which is a little bit of everything. -
5:39 - 5:43It's grad school, nonprofits,
industry, government, IT, military. -
5:43 - 5:45Then you have its own line item,
Teach for America. -
5:45 - 5:4618 percent apply.
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5:46 - 5:50Four percent actually become
Teach for America corps members. -
5:50 - 5:51Then, undecided;
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5:51 - 5:5410 percent went to Europe,
and then became consultants. -
5:54 - 5:56(Laughter)
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5:57 - 6:02So this is the picture
from Harvard, a year ago. -
6:02 - 6:03Let me get some feedback.
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6:03 - 6:05It this surprising, unsurprising?
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6:06 - 6:07Not surprising.
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6:07 - 6:09Now, I throw the normative question.
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6:09 - 6:12Is this a good thing,
a bad thing, or neutral? -
6:13 - 6:16(Audience) Bad. Neutral.
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6:16 - 6:19Wow, that one's fraught, right?
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6:19 - 6:22Let's keep on going.
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6:22 - 6:25If you take a look at other top schools,
the picture's the same. -
6:25 - 6:27The picture is the same
here at Georgetown. -
6:27 - 6:30I didn't pull the Georgetown stats,
but they're quite similar. -
6:30 - 6:32You can see that it's not
just a Harvard thing. -
6:32 - 6:35It's really a "any top school" thing.
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6:35 - 6:38I've spoken at 40 universities
around the country, -
6:38 - 6:40and they all say the same thing.
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6:40 - 6:42So what does that mean
in terms of our country, -
6:42 - 6:43let's say, "regionally"?
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6:43 - 6:45If you have half your smart kids
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6:45 - 6:47becoming bankers,
consultants, and lawyers, -
6:47 - 6:49where are they going to live?
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6:49 - 6:50(Audience responds)
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6:53 - 6:56New York, DC, maybe Chicago.
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6:56 - 6:58(Audience) Boston.
A.Y.: Boston. -
6:59 - 7:02San Francisco, LA, those are the top six.
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7:02 - 7:05We just listed the top four.
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7:05 - 7:07So then you have the rest of the country,
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7:07 - 7:11much of which is struggling
with job growth and economic development. -
7:11 - 7:14One of the things we think
this graphic represents -
7:14 - 7:16is that if you're a smart kid
from, let's say, Florida, -
7:16 - 7:18who comes to Georgetown,
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7:18 - 7:20the odds of you becoming
a banker, consultant, or lawyer -
7:20 - 7:23and living in New York,
Boston, DC are very high. -
7:23 - 7:24Odds of you going back to Florida,
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7:24 - 7:26starting a business,
creating jobs: very low. -
7:26 - 7:29You end up with a systematic talent drain
on most of the country -
7:29 - 7:33if they happen to get identified
by a national university. -
7:34 - 7:35This is the picture you end up with.
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7:35 - 7:37What do you guys think, empirically true?
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7:37 - 7:38(Audience) Yeah.
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7:38 - 7:42Absolutely. Wow, all right.
We're starting to get something. -
7:42 - 7:45Good stuff. Why is this the case?
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7:45 - 7:48Those of you who are freshmen,
raise your hands again. -
7:48 - 7:51How many of you who have
your hands up, keep them up, -
7:51 - 7:53know what management consulting is?
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7:53 - 7:55(Laughter)
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7:55 - 7:59So how is it that that world
goes from that -
7:59 - 8:03to, let's say, 20 percent of the class
at least applying for consulting jobs -
8:03 - 8:04and maybe even converting?
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8:04 - 8:06How does that happen?
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8:06 - 8:08Seniors, chime in, please?
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8:09 - 8:10(Audience) Salary.
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8:10 - 8:13Money's there. What else? Keep going.
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8:13 - 8:14(Audience) Creating new jobs.
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8:14 - 8:15Sorry?
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8:15 - 8:16(Audience) Security.
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8:16 - 8:18Security, fear.
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8:18 - 8:20(Laughter)
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8:21 - 8:23Keep going. Keep going.
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8:23 - 8:24(Audience) Diligent recruitment.
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8:24 - 8:27Yes, resources. This is not an accident.
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8:27 - 8:29People spend money and time
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8:29 - 8:33educating the market, that is all of you,
over your four years. -
8:33 - 8:35By the time you're a senior,
you'll know the names; -
8:35 - 8:38McKinsey, Bain, BCG, Deloitte, etc.
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8:39 - 8:41Let's take a look at how this list looks.
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8:41 - 8:46Prestige, easy to find, progress,
seek the next level, opens doors. -
8:46 - 8:50Money's on the list,
gain skills, community; -
8:50 - 8:51and then there's this last one,
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8:51 - 8:54which is something pro-social,
like change the world. -
8:54 - 8:57This even applies if you become
a banker or consultant, -
8:57 - 8:59because the theory is,
you must become a baller -
8:59 - 9:02before you can come back
and change the world. Right? -
9:04 - 9:07Then you can come back to the people
with loaves of bread. -
9:07 - 9:08(Laughter)
-
9:10 - 9:14Those of you who are seniors,
can I get a - yes, this is accurate? -
9:14 - 9:15(Audience) Yes.
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9:15 - 9:17All right, thank you.
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9:17 - 9:20Now, I usually talk to people
who are interested in startups, -
9:20 - 9:22so this is a little bit overly broad.
-
9:22 - 9:24But let's say you
were interested in startups. -
9:24 - 9:27Show of hands: how many of you
are interested in startups? -
9:27 - 9:28A significant subset.
-
9:28 - 9:31The seniors among you,
why is it that it's unlikely -
9:31 - 9:34you're actually going to go
work for a startup when you graduate? -
9:35 - 9:37Risky.
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9:37 - 9:38Money.
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9:38 - 9:39(Audience) Loans.
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9:39 - 9:40Loans.
-
9:41 - 9:42(Audience) It's scary.
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9:42 - 9:45It's pretty much the opposite
of the last slide. Right? -
9:45 - 9:46It's like you're not recruited.
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9:46 - 9:49It's hard to find.
There's no structured path. -
9:49 - 9:50There's no community or peer group.
-
9:50 - 9:53Unclear prospects for training,
advancement, or success. -
9:53 - 9:55No network, idea,
money, tech proficiency. -
9:55 - 9:58But a lot of you really want to,
and then you talk about doing it, -
9:58 - 10:01but first, you want to
"learn about business "and then come back. -
10:01 - 10:02Is this accurate?
-
10:02 - 10:03Am I - ?
-
10:03 - 10:05(Audience responds)
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10:05 - 10:07It's like I was one of you.
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10:07 - 10:09(Laughter)
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10:09 - 10:13So here's the big question
that Venture for America seeks to answer: -
10:13 - 10:15What would happen
if the same proportion of talent -
10:15 - 10:18that is currently flowing
to banking, consulting, and law school -
10:18 - 10:21were instead going to startups
around the country? -
10:21 - 10:22How long would that take
-
10:22 - 10:24to impact job growth
and innovation nationwide? -
10:24 - 10:26How many years?
Can I get an over/under on this? -
10:26 - 10:27(Audience) Five.
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10:27 - 10:29Five.
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10:29 - 10:30(Audience) One.
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10:30 - 10:31One, wow.
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10:31 - 10:32(Laughter)
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10:32 - 10:36That's belief. That's self-belief.
You should become an entrepreneur. -
10:37 - 10:39So between one and five years.
-
10:39 - 10:44And so we see - "we,"
as in certain people - -
10:45 - 10:46(Laughter)
-
10:46 - 10:49we see that there are structural forces
-
10:49 - 10:52that make this reality
very difficult to achieve -
10:52 - 10:54because, if you think about
who can come get you -
10:54 - 10:59here in this collection
of intellectual capital, -
10:59 - 11:03it's high-resource organizations
from high-resource industries. -
11:03 - 11:06And so startups are actually
neither of those things. -
11:06 - 11:08Startups are generally low-resource.
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11:08 - 11:10And they also don't have the time horizon.
-
11:10 - 11:12They can't recruit you
eight months in advance. -
11:12 - 11:14They don't need 20 of you.
It's all real-time. -
11:14 - 11:17And if they came, they would have
a hard time competing. -
11:17 - 11:20So how would you go about
trying to fix this problem, -
11:20 - 11:23if you decided that this
is a vision worth achieving? -
11:23 - 11:24If you said, "You know what,
-
11:24 - 11:29this is actually potentially
a rosier picture"? -
11:29 - 11:30And speaking personally,
-
11:30 - 11:33I believe it's even a rosier picture
for the individual -
11:33 - 11:36because there's something
about what you do -
11:36 - 11:39that comes to define you
over a period of years. -
11:39 - 11:41You will actually become
a different person. -
11:42 - 11:45If there's one thing
you remember from this, -
11:45 - 11:48as a young person, you imagine
that you are a static self. -
11:48 - 11:50Like, I'm young Andrew, and I say,
-
11:50 - 11:53"Hey, I'm going to do X,
and then I'm still going to be Andrew, -
11:53 - 11:54I just will have done X."
-
11:54 - 11:57The truth is, Andrew changes
-
11:57 - 12:00if you have him go to law school
or be in a law firm, -
12:00 - 12:02look at contracts all day, or whatnot.
-
12:02 - 12:04We're all very adaptable.
-
12:04 - 12:05And so,
-
12:06 - 12:11in my view, the activities
that lead you down the startup road, -
12:11 - 12:14actually end up forming a different self
-
12:14 - 12:15that I'm going to go on a limb
-
12:15 - 12:19and say, for some of you,
would be more appealing. -
12:19 - 12:22If you were to want
to try and affect this change, -
12:22 - 12:24what would you do?
-
12:26 - 12:29(Audience) Think of it
as primary school for startups. -
12:29 - 12:33Maybe you'd tinker
with the educational system. -
12:35 - 12:37(Audience) [Inaudible]
just like what they do -
12:37 - 12:40to get psychologists to go
and practice in rural areas, -
12:40 - 12:42Yes.
-
12:42 - 12:46If you were me, what you would do is
you would go raise a million dollars, -
12:46 - 12:49and then start an organization
that does this. -
12:49 - 12:52(Laughter)
-
12:55 - 12:57So I started an organization
called "Venture for America." -
12:57 - 13:00And this is particularly relevant
for the seniors among you. -
13:01 - 13:03We recruit top college graduates
from around the country. -
13:03 - 13:06If you get into the program,
we bring you to a training camp -
13:06 - 13:10with, let's say, 80 other ass-kickers
who all want to be entrepreneurs. -
13:10 - 13:15We train you. McKinsey comes. IDEO comes.
Cambridge Leadership Academy comes. -
13:15 - 13:18David Tisch comes from Techstars.
-
13:18 - 13:20Everyone comes, trains you,
-
13:20 - 13:24and then you go in groups of 10 or so
to a city that needs talent, -
13:24 - 13:27and you work at a startup there
with an existing entrepreneur. -
13:27 - 13:29What we're doing here -
-
13:29 - 13:31and I'm going to do
something I shouldn't do; -
13:31 - 13:33but whatever, I'm going to do it.
-
13:33 - 13:35So what we're going to do is,
-
13:35 - 13:38we're going to give you
all of these things that you want, -
13:38 - 13:40because it's prestigious,
it's ultraselective. -
13:40 - 13:42All of these things, progress,
open the doors - -
13:42 - 13:44you get a community,
you get the whole thing. -
13:44 - 13:46Because we are adults.
-
13:46 - 13:48If we want you to do something,
-
13:48 - 13:50we shouldn't expect you
to have to somehow -
13:50 - 13:52swim against some
violent current to do it. -
13:52 - 13:55We should actually pave the path.
-
13:55 - 13:57That's what Venture for America's about.
-
13:57 - 13:58It's about giving you
-
13:58 - 14:01all of these things that you want,
that we know you want, -
14:01 - 14:04in order to do what you want to do
and what the country wants you to do. -
14:04 - 14:08That's build a business in Detroit,
New Orleans, New Haven, Baltimore, -
14:08 - 14:12Cleveland, Providence, etc., etc.
-
14:13 - 14:16Venture for America
is in the process of doing this. -
14:17 - 14:18If you come into the program,
-
14:18 - 14:21you agree to work for a startup
company for two years -
14:21 - 14:22with an existing entrepreneur
-
14:22 - 14:25at around, let's say,
$36 to a $38K a year, -
14:25 - 14:27which doesn't sound like a lot of money,
-
14:27 - 14:30but the guys in Detroit,
whom I'm visiting next week, -
14:30 - 14:32they're living in a fancy building
with a pool and a gym, -
14:32 - 14:34for 400 bucks a month.
-
14:35 - 14:37So you actually can live pretty well.
-
14:37 - 14:40Plus, they've got 11 buddies around,
they have little road trips, -
14:40 - 14:42and they have a good time.
-
14:42 - 14:43Then throughout the two years,
-
14:43 - 14:45we supply you with
programming and support. -
14:45 - 14:48At the end of the two years,
we give $100K in seed funding -
14:48 - 14:51to whoever's made it through the two years
and has done a good job. -
14:51 - 14:54It's like a combination of everything
you guys grew up watching, -
14:54 - 14:57"Real World," "Survivor," "Road Rules."
-
14:57 - 14:59(Laughter)
-
15:00 - 15:01So this is the plan.
-
15:01 - 15:04We're going to create
100,000 new US jobs by 2025. -
15:04 - 15:07I just want to bring it back to the theme.
-
15:07 - 15:09What you guys do is all important.
-
15:09 - 15:12Intellectual capital
attracts financial capital, -
15:12 - 15:13as well as the reverse.
-
15:13 - 15:16If you had enough talented people
heading in this direction, -
15:16 - 15:18then you would see the impact
that we're talking about, -
15:18 - 15:20in terms of job creation and innovation.
-
15:20 - 15:22So this is our goal as an organization,
-
15:22 - 15:26to revitalize American cities
and communities through entrepreneurship, -
15:26 - 15:28to enable our best and brightest,
that's all of you, -
15:28 - 15:31to create new opportunities
for themselves and others, -
15:31 - 15:32and restore the culture of achievement
-
15:32 - 15:35to include value-creation, risk,
and reward, and the common good. -
15:35 - 15:39I think I'm before my time,
but that's cool. That's all I had to say. -
15:39 - 15:40(Laughter)
-
15:40 - 15:42Thank you all.
-
15:42 - 15:43(Applause)
- Title:
- Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown
- Description:
-
From the TEDxGeorgetown stage, Venture for America founder Andrew Yang makes a compelling case for how the top university system affects the job distribution and the flow of professional skills across cities, and how a rediscovered sense of entrepreneurship, nurtured with a structured training, can fix that.
This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at http://ted.com/tedx
- Video Language:
- English
- Team:
- closed TED
- Project:
- TEDxTalks
- Duration:
- 15:48
Rhonda Jacobs approved English subtitles for Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown | ||
Rhonda Jacobs edited English subtitles for Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown | ||
Rhonda Jacobs edited English subtitles for Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown | ||
Rhonda Jacobs edited English subtitles for Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown | ||
Rhonda Jacobs edited English subtitles for Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown | ||
Rhonda Jacobs edited English subtitles for Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown | ||
Muriel de Meo accepted English subtitles for Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown | ||
Muriel de Meo edited English subtitles for Fixing the flow of human capital | Andrew Yang | TEDxGeorgetown |