[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:09.78,0:00:11.40,Default,,0000,0000,0000,,Thank you very much.
Dialogue: 0,0:00:11.40,0:00:15.84,Default,,0000,0000,0000,,It's a difficult act to follow\Nsomeone such as Diogo Costa,
Dialogue: 0,0:00:15.84,0:00:17.100,Default,,0000,0000,0000,,but I will do my best.
Dialogue: 0,0:00:17.100,0:00:22.09,Default,,0000,0000,0000,,I want to address the question\Nof creative destruction
Dialogue: 0,0:00:22.09,0:00:24.87,Default,,0000,0000,0000,,in a somewhat different context.
Dialogue: 0,0:00:24.87,0:00:27.55,Default,,0000,0000,0000,,There's a lot of data\Nthat's been presented,
Dialogue: 0,0:00:27.55,0:00:29.73,Default,,0000,0000,0000,,I'll talk about that very briefly,
Dialogue: 0,0:00:29.73,0:00:33.30,Default,,0000,0000,0000,,but I want to look at it\Nin the context of globalization,
Dialogue: 0,0:00:33.30,0:00:36.32,Default,,0000,0000,0000,,just another controversial issue.
Dialogue: 0,0:00:36.32,0:00:39.43,Default,,0000,0000,0000,,Many people start\Nthe discussion by assuming
Dialogue: 0,0:00:39.43,0:00:43.10,Default,,0000,0000,0000,,that the term "globalization"\Nhas a negative meaning.
Dialogue: 0,0:00:43.10,0:00:45.63,Default,,0000,0000,0000,,I don't think that's good social science.
Dialogue: 0,0:00:45.63,0:00:50.33,Default,,0000,0000,0000,,We should start with a neutral meaning,\Nand then, investigate, in the world,
Dialogue: 0,0:00:50.33,0:00:54.67,Default,,0000,0000,0000,,whether something is having\Na positive or a negative impact.
Dialogue: 0,0:00:54.67,0:00:58.72,Default,,0000,0000,0000,,So, one common approach\Nto understanding globalization,
Dialogue: 0,0:00:58.72,0:01:02.23,Default,,0000,0000,0000,,that does not tell you\Nif it's a good or a bad thing,
Dialogue: 0,0:01:02.23,0:01:06.19,Default,,0000,0000,0000,,is to refer to the diminution\Nor elimination
Dialogue: 0,0:01:06.79,0:01:12.01,Default,,0000,0000,0000,,of state-enforced restrictions\Non exchange across political borders -
Dialogue: 0,0:01:12.01,0:01:14.49,Default,,0000,0000,0000,,so between, for instance,\NBrazil and Argentina,
Dialogue: 0,0:01:14.49,0:01:16.37,Default,,0000,0000,0000,,or the United States and Canada,
Dialogue: 0,0:01:16.37,0:01:20.72,Default,,0000,0000,0000,,or Japan and Kenya -
Dialogue: 0,0:01:20.72,0:01:25.63,Default,,0000,0000,0000,,and then, the increasingly integrated\Nand complex global system of exchange,
Dialogue: 0,0:01:25.63,0:01:29.68,Default,,0000,0000,0000,,commerce, and production\Nthat has emerged as a result.
Dialogue: 0,0:01:29.68,0:01:32.92,Default,,0000,0000,0000,,So, this doesn't tell us if it's\Na good thing or if it's a bad thing,
Dialogue: 0,0:01:32.92,0:01:36.84,Default,,0000,0000,0000,,but it is a trend that we can\Nidentify in the world.
Dialogue: 0,0:01:36.84,0:01:38.45,Default,,0000,0000,0000,,It's not a new thing.
Dialogue: 0,0:01:38.45,0:01:42.20,Default,,0000,0000,0000,,People have been talking\Nabout globalization for a very long time.
Dialogue: 0,0:01:42.20,0:01:45.79,Default,,0000,0000,0000,,The philosopher\NDemocritus of Abdera told us,
Dialogue: 0,0:01:45.79,0:01:49.01,Default,,0000,0000,0000,,"To a wise man, the whole earth is open,
Dialogue: 0,0:01:49.01,0:01:54.27,Default,,0000,0000,0000,,and for the native land\Nof a good soul is the entire earth."
Dialogue: 0,0:01:54.27,0:01:57.41,Default,,0000,0000,0000,,Now, we can ask, "Is it accelerating?"
Dialogue: 0,0:01:57.41,0:02:00.22,Default,,0000,0000,0000,,And rather than presenting you with data,
Dialogue: 0,0:02:00.22,0:02:03.45,Default,,0000,0000,0000,,I'm going to suggest\Nyou can find out on your own.
Dialogue: 0,0:02:03.45,0:02:06.26,Default,,0000,0000,0000,,You can go to the global internet.
Dialogue: 0,0:02:06.26,0:02:08.45,Default,,0000,0000,0000,,For the first time\Nin the history of humanity,
Dialogue: 0,0:02:08.45,0:02:12.25,Default,,0000,0000,0000,,we have an entirely globalized\Ninformation system.
Dialogue: 0,0:02:12.25,0:02:15.24,Default,,0000,0000,0000,,And here are some of the things\Nyou could check through Google,
Dialogue: 0,0:02:15.24,0:02:18.15,Default,,0000,0000,0000,,or other search engines.
Dialogue: 0,0:02:18.15,0:02:23.13,Default,,0000,0000,0000,,International trade in goods,\Nas a percentage of economic output:
Dialogue: 0,0:02:23.13,0:02:25.42,Default,,0000,0000,0000,,has it been rising or falling?
Dialogue: 0,0:02:25.42,0:02:28.24,Default,,0000,0000,0000,,Hint: rising, quite dramatically.
Dialogue: 0,0:02:28.24,0:02:31.02,Default,,0000,0000,0000,,International trade in services?
Dialogue: 0,0:02:31.02,0:02:34.62,Default,,0000,0000,0000,,That's an interesting one\Nbecause, for most of human history,
Dialogue: 0,0:02:34.62,0:02:37.74,Default,,0000,0000,0000,,services could not be traded\Ninternationally.
Dialogue: 0,0:02:37.74,0:02:41.89,Default,,0000,0000,0000,,You could not have your hair cut\Nin a different country, for example,
Dialogue: 0,0:02:41.89,0:02:45.14,Default,,0000,0000,0000,,or get a massage on a different continent,
Dialogue: 0,0:02:45.14,0:02:51.40,Default,,0000,0000,0000,,but now, services increasingly can be\Ntraded across international borders.
Dialogue: 0,0:02:51.40,0:02:54.26,Default,,0000,0000,0000,,We can look at cross-border investment,
Dialogue: 0,0:02:54.26,0:02:56.74,Default,,0000,0000,0000,,that is to say, investors in one country
Dialogue: 0,0:02:56.74,0:03:01.80,Default,,0000,0000,0000,,who own assets or businesses\Nin other countries.
Dialogue: 0,0:03:02.67,0:03:04.69,Default,,0000,0000,0000,,International tourist arrivals.
Dialogue: 0,0:03:04.69,0:03:08.27,Default,,0000,0000,0000,,That's one that is rarely talked about\Nin the economic context,
Dialogue: 0,0:03:08.27,0:03:12.03,Default,,0000,0000,0000,,but you'd find an incredibly\Nsteep upward curve
Dialogue: 0,0:03:12.03,0:03:15.57,Default,,0000,0000,0000,,in the amount of people\Ntraveling around the world.
Dialogue: 0,0:03:15.57,0:03:18.31,Default,,0000,0000,0000,,When I was young,\Nyou never saw a Chinese tourist,
Dialogue: 0,0:03:18.31,0:03:21.04,Default,,0000,0000,0000,,unless they were from Taiwan or Hong Kong.
Dialogue: 0,0:03:21.04,0:03:25.61,Default,,0000,0000,0000,,Now, people from the mainland can be seen\Nas tourists all around the world,
Dialogue: 0,0:03:25.61,0:03:29.29,Default,,0000,0000,0000,,a huge increase in international travel.
Dialogue: 0,0:03:29.29,0:03:32.63,Default,,0000,0000,0000,,And then, finally,\Ninternational telephone calls,
Dialogue: 0,0:03:32.63,0:03:36.50,Default,,0000,0000,0000,,more people connecting with friends,\Nneighbors, families,
Dialogue: 0,0:03:36.50,0:03:39.29,Default,,0000,0000,0000,,all around the planet.
Dialogue: 0,0:03:39.29,0:03:44.42,Default,,0000,0000,0000,,I was just at a conference like this,\Nin Kenya, in Nairobi,
Dialogue: 0,0:03:44.42,0:03:47.01,Default,,0000,0000,0000,,and one of the speakers asked something.
Dialogue: 0,0:03:47.01,0:03:53.07,Default,,0000,0000,0000,,He said, "How many of you here have\Nfriends who live in other countries?"
Dialogue: 0,0:03:53.61,0:03:57.43,Default,,0000,0000,0000,,And the majority of their hands went up,\Nof East African students.
Dialogue: 0,0:03:57.43,0:04:02.24,Default,,0000,0000,0000,,He said, "You are the first generation\Nof whom that could be said.
Dialogue: 0,0:04:02.24,0:04:08.07,Default,,0000,0000,0000,,You have friends in Canada, and Korea,\Nand South Africa, and Germany.
Dialogue: 0,0:04:08.07,0:04:10.54,Default,,0000,0000,0000,,That has never happened before."
Dialogue: 0,0:04:10.54,0:04:13.61,Default,,0000,0000,0000,,It's an enormous change in the world,
Dialogue: 0,0:04:13.61,0:04:16.26,Default,,0000,0000,0000,,and we can go and measure it.
Dialogue: 0,0:04:17.32,0:04:20.77,Default,,0000,0000,0000,,Now, I want to put it\Nin a cultural context, though;
Dialogue: 0,0:04:20.77,0:04:25.90,Default,,0000,0000,0000,,not so much about economic data\Nand how this is raising living standards,
Dialogue: 0,0:04:25.90,0:04:30.03,Default,,0000,0000,0000,,but often we hear it said\Nthat this is harmful to culture.
Dialogue: 0,0:04:30.03,0:04:34.30,Default,,0000,0000,0000,,I want to tell a little story\Nabout Guatemalan women
Dialogue: 0,0:04:34.30,0:04:38.48,Default,,0000,0000,0000,,and the clothes that they wear,\Nthe traditional Huipil and Corté.
Dialogue: 0,0:04:38.48,0:04:43.92,Default,,0000,0000,0000,,Huipil is a kind of a shirt\Nfor the top part of her body,
Dialogue: 0,0:04:43.92,0:04:48.78,Default,,0000,0000,0000,,and the Corté is a skirt which she wraps\Naround herself and folds over.
Dialogue: 0,0:04:49.38,0:04:52.78,Default,,0000,0000,0000,,I had a tremendous\Nopportunity in Guatemala.
Dialogue: 0,0:04:52.78,0:04:57.59,Default,,0000,0000,0000,,I was teaching at the\NFrancisco Marroquín University,
Dialogue: 0,0:04:57.59,0:05:00.78,Default,,0000,0000,0000,,and one of the professors there\Nis an anthropologist.
Dialogue: 0,0:05:00.78,0:05:03.60,Default,,0000,0000,0000,,He made a great offer, and he said,\N"You know, next weekend,
Dialogue: 0,0:05:03.60,0:05:06.80,Default,,0000,0000,0000,,I'm going to go visit my family\Nin the Mayan Highlands."
Dialogue: 0,0:05:06.80,0:05:09.73,Default,,0000,0000,0000,,He's an indigenous person, and he's Mayan.
Dialogue: 0,0:05:09.73,0:05:11.95,Default,,0000,0000,0000,,He said, "Would you like to come with?"
Dialogue: 0,0:05:11.95,0:05:14.30,Default,,0000,0000,0000,,And I am really glad I said yes,
Dialogue: 0,0:05:14.30,0:05:18.43,Default,,0000,0000,0000,,because I saw a part of the country\NI never would have seen otherwise.
Dialogue: 0,0:05:18.43,0:05:24.46,Default,,0000,0000,0000,,I got to see a different way\Nof understanding that complicated country.
Dialogue: 0,0:05:25.79,0:05:30.13,Default,,0000,0000,0000,,It's told me, as we were driving,\Nhe takes many foreigners
Dialogue: 0,0:05:30.13,0:05:31.90,Default,,0000,0000,0000,,because he's an anthropologist,
Dialogue: 0,0:05:31.90,0:05:36.55,Default,,0000,0000,0000,,so he has visitors from universities\Nin France, England, America and elsewhere,
Dialogue: 0,0:05:36.55,0:05:39.16,Default,,0000,0000,0000,,who want to go "study" the Indians,
Dialogue: 0,0:05:39.16,0:05:43.99,Default,,0000,0000,0000,,and he speaks the Mayan languages,\Nas well as Spanish and English.
Dialogue: 0,0:05:43.99,0:05:48.84,Default,,0000,0000,0000,,And he said, "Consistently,\Nthey complain about one thing,"
Dialogue: 0,0:05:48.84,0:05:52.76,Default,,0000,0000,0000,,which is the Mayan women\Nare wearing their Cortés and Huipils
Dialogue: 0,0:05:52.76,0:05:55.24,Default,,0000,0000,0000,,less often than they used to.
Dialogue: 0,0:05:55.83,0:05:58.95,Default,,0000,0000,0000,,They say, "I was here ten years ago,\Nand all the women had them.
Dialogue: 0,0:05:58.95,0:06:00.90,Default,,0000,0000,0000,,Now, not so many."
Dialogue: 0,0:06:02.82,0:06:07.43,Default,,0000,0000,0000,,They concluded that the Guatemalan women\Nwere being robbed of their culture,
Dialogue: 0,0:06:07.43,0:06:10.24,Default,,0000,0000,0000,,that they were victims of globalization.
Dialogue: 0,0:06:11.54,0:06:13.99,Default,,0000,0000,0000,,But what was interesting, he said,
Dialogue: 0,0:06:13.99,0:06:20.71,Default,,0000,0000,0000,,not once had he ever heard a foreigner\Nask a Guatemalan woman a question,
Dialogue: 0,0:06:21.34,0:06:26.03,Default,,0000,0000,0000,,the simple question: "Why are you\Nnot dressed like your grandmother?"
Dialogue: 0,0:06:26.88,0:06:30.00,Default,,0000,0000,0000,,That seems a little strange,\Nand maybe rude,
Dialogue: 0,0:06:30.00,0:06:34.89,Default,,0000,0000,0000,,but increasingly, the indigenous women\Nare wearing clothes for everyday purpose
Dialogue: 0,0:06:34.89,0:06:38.73,Default,,0000,0000,0000,,like the women you would see\Nin Brazilian cities,
Dialogue: 0,0:06:39.31,0:06:43.44,Default,,0000,0000,0000,,and they reserve their Corté\Nfor special occasions:
Dialogue: 0,0:06:43.44,0:06:49.31,Default,,0000,0000,0000,,weddings, for going to church,\Nfor special family occasions.
Dialogue: 0,0:06:51.20,0:06:55.95,Default,,0000,0000,0000,,He, however, is a scientist,\Nand he speaks the local language.
Dialogue: 0,0:06:55.95,0:06:57.74,Default,,0000,0000,0000,,So, he asked them,
Dialogue: 0,0:06:58.45,0:07:00.72,Default,,0000,0000,0000,,"Why do you not wear the Corté?"
Dialogue: 0,0:07:01.15,0:07:04.50,Default,,0000,0000,0000,,And he said, "I always get\Nthe same answer, in one form or another.
Dialogue: 0,0:07:04.50,0:07:08.09,Default,,0000,0000,0000,,They say this has become too expensive.
Dialogue: 0,0:07:08.70,0:07:10.82,Default,,0000,0000,0000,,These are too expensive."
Dialogue: 0,0:07:11.59,0:07:15.72,Default,,0000,0000,0000,,Now, they're handmade,\Nmade generally by women,
Dialogue: 0,0:07:15.72,0:07:18.60,Default,,0000,0000,0000,,it's traditionally\Nconsidered "women's work,"
Dialogue: 0,0:07:19.48,0:07:22.36,Default,,0000,0000,0000,,and they take a long time to make.
Dialogue: 0,0:07:22.36,0:07:24.100,Default,,0000,0000,0000,,They're very elaborate works of art.
Dialogue: 0,0:07:26.67,0:07:32.37,Default,,0000,0000,0000,,What does it mean for her to say\Nthese have become too expensive?
Dialogue: 0,0:07:32.37,0:07:34.17,Default,,0000,0000,0000,,Well, what does "expensive" mean?
Dialogue: 0,0:07:34.17,0:07:37.28,Default,,0000,0000,0000,,It means you have to give up\Nmore to get it.
Dialogue: 0,0:07:37.96,0:07:42.18,Default,,0000,0000,0000,,Well, it's labors what she has\Nto give up. To get what?
Dialogue: 0,0:07:43.25,0:07:47.60,Default,,0000,0000,0000,,In economic terms, what it means is,\Nfor the first time in their history,
Dialogue: 0,0:07:47.60,0:07:52.94,Default,,0000,0000,0000,,the value of the labor\Nof an indigenous woman is rising.
Dialogue: 0,0:07:52.94,0:07:54.58,Default,,0000,0000,0000,,That's what it means.
Dialogue: 0,0:07:54.58,0:07:57.66,Default,,0000,0000,0000,,The value of her labor is rising.
Dialogue: 0,0:07:57.66,0:08:04.13,Default,,0000,0000,0000,,So, she could make a Corté for herself,\Nand wear it, every day.
Dialogue: 0,0:08:04.13,0:08:06.72,Default,,0000,0000,0000,,working in the field, doing her work,
Dialogue: 0,0:08:06.72,0:08:11.34,Default,,0000,0000,0000,,or she could make it\Nand sell it to a lady in France.
Dialogue: 0,0:08:11.34,0:08:13.55,Default,,0000,0000,0000,,They're very expensive.
Dialogue: 0,0:08:13.55,0:08:18.28,Default,,0000,0000,0000,,And with the money she earns,\Nshe could by five or six outfits
Dialogue: 0,0:08:18.28,0:08:20.77,Default,,0000,0000,0000,,like Brazilian women wear,
Dialogue: 0,0:08:20.77,0:08:24.21,Default,,0000,0000,0000,,and have enough money\Nalso to buy eyeglasses,
Dialogue: 0,0:08:24.21,0:08:26.26,Default,,0000,0000,0000,,so she can see at a distance,
Dialogue: 0,0:08:26.26,0:08:30.85,Default,,0000,0000,0000,,and to buy shoes and school books\Nfor her daughter,
Dialogue: 0,0:08:30.85,0:08:34.72,Default,,0000,0000,0000,,so she can go to school\Nand learn to read and write,
Dialogue: 0,0:08:34.72,0:08:37.56,Default,,0000,0000,0000,,so she can buy medicine\Nagainst dengue fever,
Dialogue: 0,0:08:37.56,0:08:40.01,Default,,0000,0000,0000,,which they don't have\Nin France and America,
Dialogue: 0,0:08:40.01,0:08:42.54,Default,,0000,0000,0000,,where they complain about these things.
Dialogue: 0,0:08:43.62,0:08:45.61,Default,,0000,0000,0000,,So, the question is:
Dialogue: 0,0:08:47.23,0:08:50.59,Default,,0000,0000,0000,,was her life made worse off
Dialogue: 0,0:08:50.59,0:08:56.98,Default,,0000,0000,0000,,by the opportunity to trade with people\Nin France, in the United States,
Dialogue: 0,0:08:56.98,0:09:00.05,Default,,0000,0000,0000,,in Germany, and elsewhere?
Dialogue: 0,0:09:00.85,0:09:04.26,Default,,0000,0000,0000,,She now can buy more with her labor,
Dialogue: 0,0:09:04.26,0:09:07.13,Default,,0000,0000,0000,,and she reserves the Corté\Nfor going to church,
Dialogue: 0,0:09:07.13,0:09:09.26,Default,,0000,0000,0000,,not for everyday work.
Dialogue: 0,0:09:09.100,0:09:11.73,Default,,0000,0000,0000,,And the other question is:
Dialogue: 0,0:09:11.73,0:09:16.75,Default,,0000,0000,0000,,from whose perspective\Nhas her life been made better or worse?
Dialogue: 0,0:09:16.75,0:09:20.29,Default,,0000,0000,0000,,From the perspective\Nof the foreign tourist, it's worse,
Dialogue: 0,0:09:20.29,0:09:23.76,Default,,0000,0000,0000,,you don't see colorful\Nnative people as often,
Dialogue: 0,0:09:23.76,0:09:27.09,Default,,0000,0000,0000,,but maybe, from her perspective,\Nit's an improvement.
Dialogue: 0,0:09:27.09,0:09:31.04,Default,,0000,0000,0000,,I personally have heard,\Nsaid by foreigners in Guatemala,
Dialogue: 0,0:09:31.04,0:09:36.31,Default,,0000,0000,0000,,complaints when they see indigenous people\Ntake out mobile telephones.
Dialogue: 0,0:09:36.31,0:09:40.70,Default,,0000,0000,0000,,"Oh, it ruined the whole experience!\NIt wasn't authentic!"
Dialogue: 0,0:09:40.70,0:09:43.34,Default,,0000,0000,0000,,They're supposed to have\N"smoke signals," or something.
Dialogue: 0,0:09:43.34,0:09:44.50,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:09:44.50,0:09:47.47,Default,,0000,0000,0000,,They didn't like it, but they didn't think\Nfrom the perspective
Dialogue: 0,0:09:47.47,0:09:49.35,Default,,0000,0000,0000,,of that indigenous person.
Dialogue: 0,0:09:49.35,0:09:51.73,Default,,0000,0000,0000,,What does it mean\Nto have a mobile telephone?
Dialogue: 0,0:09:51.73,0:09:55.71,Default,,0000,0000,0000,,It means you can call your parents\Nand talk to them.
Dialogue: 0,0:09:55.71,0:10:00.19,Default,,0000,0000,0000,,You don't learn two weeks later\Nthat your mother got sick,
Dialogue: 0,0:10:00.19,0:10:02.68,Default,,0000,0000,0000,,and you didn't have time to visit her.
Dialogue: 0,0:10:02.68,0:10:07.42,Default,,0000,0000,0000,,You get a phone call from your dad,\Nsaying, "Momma is sick, come home."
Dialogue: 0,0:10:07.42,0:10:10.38,Default,,0000,0000,0000,,Is that a positive thing\Nfor your life or not,
Dialogue: 0,0:10:10.38,0:10:13.29,Default,,0000,0000,0000,,from the perspective of that person?
Dialogue: 0,0:10:14.20,0:10:16.35,Default,,0000,0000,0000,,Now, if we want to look at it,
Dialogue: 0,0:10:16.35,0:10:21.49,Default,,0000,0000,0000,,what's happening in the world\Nis this process of creative destruction,
Dialogue: 0,0:10:21.49,0:10:23.68,Default,,0000,0000,0000,,from an economic perspective.
Dialogue: 0,0:10:23.68,0:10:28.19,Default,,0000,0000,0000,,Joseph Schumpeter is one of the most\Nimportant economists of the last century.
Dialogue: 0,0:10:28.19,0:10:30.30,Default,,0000,0000,0000,,He was really a great genius,
Dialogue: 0,0:10:30.30,0:10:35.94,Default,,0000,0000,0000,,and these are some of the most intelligent\Nwords ever written in economics.
Dialogue: 0,0:10:35.94,0:10:40.47,Default,,0000,0000,0000,,It's about a dynamic perspective,\Nnot a static perspective,
Dialogue: 0,0:10:40.92,0:10:44.08,Default,,0000,0000,0000,,"The problem that is usually\Nbeing visualized
Dialogue: 0,0:10:44.08,0:10:48.30,Default,,0000,0000,0000,,is how capitalism\Nadministers existing structures,
Dialogue: 0,0:10:48.30,0:10:53.86,Default,,0000,0000,0000,,whereas the relevant problem\Nis how it creates and destroys them,"
Dialogue: 0,0:10:53.86,0:10:57.74,Default,,0000,0000,0000,,a constant process \Nof creative destruction.
Dialogue: 0,0:10:57.74,0:10:59.50,Default,,0000,0000,0000,,It's happening in the economy.
Dialogue: 0,0:10:59.50,0:11:04.99,Default,,0000,0000,0000,,It's also happening in the context\Nof cultural life, artistic life, as well.
Dialogue: 0,0:11:05.83,0:11:10.69,Default,,0000,0000,0000,,If you want to visualize it,\Nlet's think first about technology.
Dialogue: 0,0:11:10.69,0:11:13.26,Default,,0000,0000,0000,,Here's something that is disappearing:
Dialogue: 0,0:11:16.00,0:11:17.61,Default,,0000,0000,0000,,phone boxes.
Dialogue: 0,0:11:17.61,0:11:19.65,Default,,0000,0000,0000,,There are a few outside here,
Dialogue: 0,0:11:19.65,0:11:22.13,Default,,0000,0000,0000,,but they're disappearing\Nfrom Brazilian cities.
Dialogue: 0,0:11:22.13,0:11:26.22,Default,,0000,0000,0000,,You cannot find them anymore\Nin North America,
Dialogue: 0,0:11:26.22,0:11:28.85,Default,,0000,0000,0000,,or Western Europe, or Japan.
Dialogue: 0,0:11:28.85,0:11:33.24,Default,,0000,0000,0000,,The first time I noticed, I was at a hotel\NI frequently go to, for conference.
Dialogue: 0,0:11:33.24,0:11:35.06,Default,,0000,0000,0000,,Someone who worked at the hotel said,
Dialogue: 0,0:11:35.06,0:11:37.13,Default,,0000,0000,0000,,"Look at that wall.\NDoes it look different?"
Dialogue: 0,0:11:37.13,0:11:41.18,Default,,0000,0000,0000,,It took me a moment.\NThere were no telephones on it.
Dialogue: 0,0:11:41.18,0:11:44.85,Default,,0000,0000,0000,,Why? Everyone has a telephone now.
Dialogue: 0,0:11:44.85,0:11:49.13,Default,,0000,0000,0000,,They have it in their pocket,\Nso why should they invest in these?
Dialogue: 0,0:11:49.13,0:11:52.16,Default,,0000,0000,0000,,So, here we have what's replaced it.
Dialogue: 0,0:11:52.16,0:11:56.16,Default,,0000,0000,0000,,My first mobile telephone\Nwas the one on the end.
Dialogue: 0,0:11:56.16,0:11:58.72,Default,,0000,0000,0000,,It was like talking into a giant shoe.
Dialogue: 0,0:11:58.72,0:11:59.80,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:11:59.80,0:12:05.88,Default,,0000,0000,0000,,It was huge and very, very expensive,\Na gigantic device.
Dialogue: 0,0:12:05.88,0:12:08.74,Default,,0000,0000,0000,,I had to have this put\Ninto a special briefcase.
Dialogue: 0,0:12:08.74,0:12:12.61,Default,,0000,0000,0000,,Now, they've become so tiny\Nyou can put it in your ear.
Dialogue: 0,0:12:13.78,0:12:16.50,Default,,0000,0000,0000,,This has transformed the world.
Dialogue: 0,0:12:17.20,0:12:21.50,Default,,0000,0000,0000,,Well, here's another one.\NSome of you may not have ever used these.
Dialogue: 0,0:12:21.50,0:12:25.45,Default,,0000,0000,0000,,When I first started writing,\NI wrote with a pen on paper,
Dialogue: 0,0:12:25.45,0:12:28.100,Default,,0000,0000,0000,,and then I would type them\Nwith one of these.
Dialogue: 0,0:12:28.100,0:12:30.91,Default,,0000,0000,0000,,I had an Underwood 5.
Dialogue: 0,0:12:32.20,0:12:35.86,Default,,0000,0000,0000,,Many people don't know\Nhow to use these anymore.
Dialogue: 0,0:12:35.86,0:12:40.03,Default,,0000,0000,0000,,A good friend of mine told me his son,\Nwhen he was five, came to him, and said,
Dialogue: 0,0:12:40.03,0:12:42.70,Default,,0000,0000,0000,,"Daddy, there's something strange.\NI want to show you."
Dialogue: 0,0:12:42.70,0:12:44.34,Default,,0000,0000,0000,,He said, "What is it?"
Dialogue: 0,0:12:44.34,0:12:46.88,Default,,0000,0000,0000,,He said, "It's a computer,\Nbut there is no screen!"
Dialogue: 0,0:12:46.88,0:12:48.25,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:12:48.25,0:12:50.19,Default,,0000,0000,0000,,He didn't understand;\Nhe went and looked,
Dialogue: 0,0:12:50.19,0:12:53.11,Default,,0000,0000,0000,,"Oh, I see, yes. It's a typewriter."
Dialogue: 0,0:12:53.11,0:12:55.84,Default,,0000,0000,0000,,These are now found mainly in museums.
Dialogue: 0,0:12:56.34,0:12:59.86,Default,,0000,0000,0000,,I'll show you a big improvement\Nin my personal life:
Dialogue: 0,0:12:59.86,0:13:03.59,Default,,0000,0000,0000,,my first IBM Correcting Selectric tool.
Dialogue: 0,0:13:03.59,0:13:05.87,Default,,0000,0000,0000,,It could correct your mistakes.
Dialogue: 0,0:13:05.87,0:13:10.96,Default,,0000,0000,0000,,You had to type backwards,\Nand it would take the type off the page.
Dialogue: 0,0:13:10.96,0:13:15.98,Default,,0000,0000,0000,,You have no idea what an improvement\Nthis was for people who type a lot.
Dialogue: 0,0:13:15.98,0:13:22.01,Default,,0000,0000,0000,,And, talk about sexy,\Nyou could change the type font,
Dialogue: 0,0:13:22.66,0:13:24.06,Default,,0000,0000,0000,,the kind of letters you used.
Dialogue: 0,0:13:24.06,0:13:26.44,Default,,0000,0000,0000,,You bought these expensive little things.
Dialogue: 0,0:13:26.44,0:13:28.76,Default,,0000,0000,0000,,You had to take it out,\Nand put in the other one,
Dialogue: 0,0:13:28.76,0:13:32.18,Default,,0000,0000,0000,,and snap it shut, and then type with it.
Dialogue: 0,0:13:32.89,0:13:38.31,Default,,0000,0000,0000,,So, that's how we got by,\Nbut now, I have a Macbook Pro,
Dialogue: 0,0:13:39.15,0:13:42.71,Default,,0000,0000,0000,,and this is better than my typewriter.
Dialogue: 0,0:13:43.27,0:13:46.22,Default,,0000,0000,0000,,Now remember, something was destroyed.
Dialogue: 0,0:13:46.22,0:13:49.01,Default,,0000,0000,0000,,There are no more typewriter factories.
Dialogue: 0,0:13:49.01,0:13:52.12,Default,,0000,0000,0000,,In every town, there were\Ntypewriter repair shops.
Dialogue: 0,0:13:52.12,0:13:56.75,Default,,0000,0000,0000,,They're all gone. I haven't seen\Na typewriter repair shop in years.
Dialogue: 0,0:13:56.75,0:14:01.01,Default,,0000,0000,0000,,When I was a boy, I thought I wanted\Nto become a typewriter repairman.
Dialogue: 0,0:14:01.01,0:14:03.64,Default,,0000,0000,0000,,I thought, "You'll always have work."
Dialogue: 0,0:14:03.64,0:14:06.03,Default,,0000,0000,0000,,I'm glad I didn't choose that career path.
Dialogue: 0,0:14:06.03,0:14:07.65,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:14:07.65,0:14:11.70,Default,,0000,0000,0000,,I can do things with this\NI couldn't do with my typewriter,
Dialogue: 0,0:14:11.70,0:14:13.81,Default,,0000,0000,0000,,like watch movies.
Dialogue: 0,0:14:13.81,0:14:17.32,Default,,0000,0000,0000,,If I talked to my typewriter,\Npeople thought I was crazy.
Dialogue: 0,0:14:17.32,0:14:19.88,Default,,0000,0000,0000,,I talk to my computer all the time,
Dialogue: 0,0:14:19.88,0:14:23.90,Default,,0000,0000,0000,,and it talks back, with someone\Nwho's in another country.
Dialogue: 0,0:14:24.65,0:14:27.24,Default,,0000,0000,0000,,Now, we can look at another example.
Dialogue: 0,0:14:27.24,0:14:32.42,Default,,0000,0000,0000,,When I was a boy, I watched Star Trek\Nwith my father on television,
Dialogue: 0,0:14:32.42,0:14:34.88,Default,,0000,0000,0000,,the first Star Trek,
Dialogue: 0,0:14:34.88,0:14:39.64,Default,,0000,0000,0000,,and they had these amazing devices\Ncalled "communicators."
Dialogue: 0,0:14:39.64,0:14:45.16,Default,,0000,0000,0000,,You opened it and you could\Ntalk to one person. That's it.
Dialogue: 0,0:14:45.16,0:14:49.01,Default,,0000,0000,0000,,And that's all it could do,\Ntalk to one person.
Dialogue: 0,0:14:49.01,0:14:51.86,Default,,0000,0000,0000,,I thought, "Wow! That is so cool!
Dialogue: 0,0:14:51.86,0:14:55.67,Default,,0000,0000,0000,,In the distant future,\Nsomeone will have those."
Dialogue: 0,0:14:55.67,0:14:57.46,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:14:57.46,0:14:59.17,Default,,0000,0000,0000,,Well, I've got one,
Dialogue: 0,0:14:59.17,0:15:03.18,Default,,0000,0000,0000,,and it's a lot better than they had\Nin these science fiction movies,
Dialogue: 0,0:15:03.18,0:15:04.79,Default,,0000,0000,0000,,flying between the stars.
Dialogue: 0,0:15:04.79,0:15:08.98,Default,,0000,0000,0000,,I can watch movies, I can play music,\Npay my bills, convert currencies,
Dialogue: 0,0:15:08.98,0:15:12.07,Default,,0000,0000,0000,,I read the newspapers on it,
Dialogue: 0,0:15:12.07,0:15:15.11,Default,,0000,0000,0000,,I can do all kinds of things\Nyou could not do
Dialogue: 0,0:15:15.11,0:15:17.94,Default,,0000,0000,0000,,on a Star Trek communicator.
Dialogue: 0,0:15:18.61,0:15:21.92,Default,,0000,0000,0000,,It's not just products\Nthat are being replaced.
Dialogue: 0,0:15:21.92,0:15:24.75,Default,,0000,0000,0000,,It's also ways of doing business.
Dialogue: 0,0:15:24.75,0:15:28.92,Default,,0000,0000,0000,,Imagine, 20 years ago,\Nhaving a discussion of online banking.
Dialogue: 0,0:15:28.92,0:15:32.25,Default,,0000,0000,0000,,"What's that?" People would not\Nhave understood you.
Dialogue: 0,0:15:32.25,0:15:34.72,Default,,0000,0000,0000,,Live-streaming media:
Dialogue: 0,0:15:35.93,0:15:38.34,Default,,0000,0000,0000,,your grandparents\Nwouldn't have understood that.
Dialogue: 0,0:15:38.34,0:15:42.75,Default,,0000,0000,0000,,Hub-and-spoke airlines,\Nwhich have revolutionized travel:
Dialogue: 0,0:15:42.75,0:15:47.03,Default,,0000,0000,0000,,poor people can afford to fly\Nbecause of this tremendous innovation.
Dialogue: 0,0:15:47.03,0:15:49.36,Default,,0000,0000,0000,,And also firms:
Dialogue: 0,0:15:49.36,0:15:53.100,Default,,0000,0000,0000,,firms are also destroyed\Nand created, on a constant basis.
Dialogue: 0,0:15:53.100,0:15:57.32,Default,,0000,0000,0000,,Standard & Poors \Nmeasures the largest firms
Dialogue: 0,0:15:57.32,0:16:01.26,Default,,0000,0000,0000,,by "market-capitalization" value\Nof their shares.
Dialogue: 0,0:16:01.26,0:16:05.17,Default,,0000,0000,0000,,How many of those\Nthat were in the Top 100 in 1960
Dialogue: 0,0:16:05.17,0:16:08.38,Default,,0000,0000,0000,,were still on it in 2012?
Dialogue: 0,0:16:08.38,0:16:11.14,Default,,0000,0000,0000,,Ten. Only ten.
Dialogue: 0,0:16:11.14,0:16:17.77,Default,,0000,0000,0000,,And 25% of the Top 100\Nhad joined in just the last few years.
Dialogue: 0,0:16:18.73,0:16:21.87,Default,,0000,0000,0000,,So, firms are coming and going,
Dialogue: 0,0:16:21.87,0:16:26.80,Default,,0000,0000,0000,,going out of business, being destroyed,\Nand being created to replace the others.
Dialogue: 0,0:16:26.80,0:16:29.76,Default,,0000,0000,0000,,Now, a lot of people focus\Non the destructive part
Dialogue: 0,0:16:29.76,0:16:33.29,Default,,0000,0000,0000,,of creative destruction,\Nbut how destructive is it?
Dialogue: 0,0:16:33.29,0:16:37.14,Default,,0000,0000,0000,,Is it destructive on balance?\NI don't think so.
Dialogue: 0,0:16:37.14,0:16:40.67,Default,,0000,0000,0000,,Some value is destroyed,\Nbut it's not pure destruction,
Dialogue: 0,0:16:40.67,0:16:43.67,Default,,0000,0000,0000,,because you get something else\Nthat adds more value.
Dialogue: 0,0:16:43.67,0:16:46.04,Default,,0000,0000,0000,,That's why it replaced it.
Dialogue: 0,0:16:46.04,0:16:49.74,Default,,0000,0000,0000,,My computer is more valuable\Nthan a big typewriter,
Dialogue: 0,0:16:49.74,0:16:55.39,Default,,0000,0000,0000,,it can do a lot more, and it cost less\Nthan I paid for my old typewriter.
Dialogue: 0,0:16:55.39,0:17:01.28,Default,,0000,0000,0000,,And I'll conclude: what makes possible\Nvalue-added creative destruction?
Dialogue: 0,0:17:01.28,0:17:03.87,Default,,0000,0000,0000,,And we have a pretty\Ngood idea what that is.
Dialogue: 0,0:17:03.87,0:17:06.32,Default,,0000,0000,0000,,It's entrepreneurial freedom.
Dialogue: 0,0:17:06.32,0:17:08.89,Default,,0000,0000,0000,,Now, what does entrepreneurial\Nfreedom mean, though?
Dialogue: 0,0:17:08.89,0:17:10.62,Default,,0000,0000,0000,,Something rather special.
Dialogue: 0,0:17:10.62,0:17:13.95,Default,,0000,0000,0000,,It's liberty for the unknown person;
Dialogue: 0,0:17:13.95,0:17:20.09,Default,,0000,0000,0000,,not for any known person, per se,\Nbut for weird people, strange people,
Dialogue: 0,0:17:20.09,0:17:22.60,Default,,0000,0000,0000,,who are called, in English, "geeks."
Dialogue: 0,0:17:23.29,0:17:26.63,Default,,0000,0000,0000,,The boys who created the computer industry
Dialogue: 0,0:17:26.63,0:17:30.74,Default,,0000,0000,0000,,were strange, socially\Nbadly-adjusted kids.
Dialogue: 0,0:17:30.74,0:17:34.04,Default,,0000,0000,0000,,They could not get any\Nof the girls to date them,
Dialogue: 0,0:17:34.04,0:17:38.13,Default,,0000,0000,0000,,because they were obsessed with radios,\Ncomputers, and working in their garage.
Dialogue: 0,0:17:38.13,0:17:39.98,Default,,0000,0000,0000,,This has changed.
Dialogue: 0,0:17:40.68,0:17:44.14,Default,,0000,0000,0000,,They all found that the girls\Nwere more interested in dating them
Dialogue: 0,0:17:44.14,0:17:46.21,Default,,0000,0000,0000,,after they became billionaires.
Dialogue: 0,0:17:46.21,0:17:47.46,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:17:47.46,0:17:49.76,Default,,0000,0000,0000,,Friedrich Hayek put it very neatly,
Dialogue: 0,0:17:49.76,0:17:54.07,Default,,0000,0000,0000,,"What is important is not the freedom\Nfor what I would personally like to do,
Dialogue: 0,0:17:54.76,0:17:58.65,Default,,0000,0000,0000,,but rather what freedom\Nsome person may need
Dialogue: 0,0:17:58.65,0:18:01.45,Default,,0000,0000,0000,,in order to do things\Nbeneficial to society.
Dialogue: 0,0:18:01.45,0:18:04.58,Default,,0000,0000,0000,,And this freedom we can assure\Nto the unknown person
Dialogue: 0,0:18:04.58,0:18:07.39,Default,,0000,0000,0000,,only by giving it to everyone."
Dialogue: 0,0:18:07.79,0:18:09.83,Default,,0000,0000,0000,,Now, that is in an economic context,
Dialogue: 0,0:18:09.83,0:18:15.50,Default,,0000,0000,0000,,but it has a deep root in your society.
Dialogue: 0,0:18:15.50,0:18:19.51,Default,,0000,0000,0000,,"Freedom is disruptive\Nbecause it's about freedom for everyone,"
Dialogue: 0,0:18:19.51,0:18:24.04,Default,,0000,0000,0000,,as Joaquim Nabuco put it very neatly\Nin his book on abolitionism.
Dialogue: 0,0:18:24.04,0:18:27.92,Default,,0000,0000,0000,,He says, "You should love\Nthe freedom of other people.
Dialogue: 0,0:18:27.92,0:18:32.73,Default,,0000,0000,0000,,When you love the freedom of other people,\Nyou'll live in a great society."
Dialogue: 0,0:18:32.73,0:18:33.97,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:18:33.97,0:18:36.26,Default,,0000,0000,0000,,(Applause)