1
99:59:59,999 --> 99:59:59,999
So this is the first and the last slide
each of my 6400 students

2
99:59:59,999 --> 99:59:59,999
for the last 15 years have seen.

3
99:59:59,999 --> 99:59:59,999
I do no believe you can build
a multimillion dollar organization

4
99:59:59,999 --> 99:59:59,999
unless you are clear on which instinct
or organ you are targeting.

5
99:59:59,999 --> 99:59:59,999
Our species has a need for a "super bing"

6
99:59:59,999 --> 99:59:59,999
our competitive advantage
as a species is our brain,

7
99:59:59,999 --> 99:59:59,999
our brain in robust enough to ask
these really difficult questions,

8
99:59:59,999 --> 99:59:59,999
but unfortunately it doesn't have
the processesing power to answer them,

9
99:59:59,999 --> 99:59:59,999
which creates a need for a super bing
that we can pray to

10
99:59:59,999 --> 99:59:59,999
and look to for answers.

11
99:59:59,999 --> 99:59:59,999
What is prayer?

12
99:59:59,999 --> 99:59:59,999
Sending a query into the universe,

13
99:59:59,999 --> 99:59:59,999
and hopefully there's some sort of
divine internvention,

14
99:59:59,999 --> 99:59:59,999
we don't need to understand
what's going on

15
99:59:59,999 --> 99:59:59,999
from an all-knowing, all-seeing superbeing

16
99:59:59,999 --> 99:59:59,999
that gives us authority

17
99:59:59,999 --> 99:59:59,999
that this is the right answer.

18
99:59:59,999 --> 99:59:59,999
Will my kid be all right?

19
99:59:59,999 --> 99:59:59,999
You have your planet of stuff,

20
99:59:59,999 --> 99:59:59,999
you have your planet of work,

21
99:59:59,999 --> 99:59:59,999
you have your planet of friends;

22
99:59:59,999 --> 99:59:59,999
if you have kids,

23
99:59:59,999 --> 99:59:59,999
you know that once something
comes off the rails with your kids,

24
99:59:59,999 --> 99:59:59,999
everything melts,

25
99:59:59,999 --> 99:59:59,999
and your universe
to the summit is your kids,

26
99:59:59,999 --> 99:59:59,999
will my kid be all right?

27
99:59:59,999 --> 99:59:59,999
Symptoms and treatment of croupe
in the Google query box.

28
99:59:59,999 --> 99:59:59,999
One in six queries to Google
have never been asked before

29
99:59:59,999 --> 99:59:59,999
in the history of mankind.

30
99:59:59,999 --> 99:59:59,999
What priest, teacher, rabbi,
scholar, mentor, boss

31
99:59:59,999 --> 99:59:59,999
has so much credibility

32
99:59:59,999 --> 99:59:59,999
that one in six questions
posed to that person

33
99:59:59,999 --> 99:59:59,999
have never been askied before?

34
99:59:59,999 --> 99:59:59,999
Google is our modern man's god.

35
99:59:59,999 --> 99:59:59,999
Imagine your face and your name
above everything you put into that box

36
99:59:59,999 --> 99:59:59,999
and you're going to realize you trust
Google more than any entitity

37
99:59:59,999 --> 99:59:59,999
in your history.

38
99:59:59,999 --> 99:59:59,999
Let's move further down the torso.

39
99:59:59,999 --> 99:59:59,999
(Laughter)

40
99:59:59,999 --> 99:59:59,999
One of the other wonderful things
about our species

41
99:59:59,999 --> 99:59:59,999
is we not only need to be loved
but we need to love others.

42
99:59:59,999 --> 99:59:59,999
Children with poor nutrition
but a lot of affection

43
99:59:59,999 --> 99:59:59,999
have better outcomes than children
with good nutrition and poor affection.

44
99:59:59,999 --> 99:59:59,999
However, the best signal
that you might make it to be

45
99:59:59,999 --> 99:59:59,999
part of the number-one fastest
growing demographic in the world,

46
99:59:59,999 --> 99:59:59,999
centenarians,

47
99:59:59,999 --> 99:59:59,999
people who live to triple digits,

48
99:59:59,999 --> 99:59:59,999
their are three signals.

49
99:59:59,999 --> 99:59:59,999
In reverse order,

50
99:59:59,999 --> 99:59:59,999
their genetics,

51
99:59:59,999 --> 99:59:59,999
not as important as you'd like to think,

52
99:59:59,999 --> 99:59:59,999
so you can continue to treat
your body like shit,

53
99:59:59,999 --> 99:59:59,999
think that, "Oh, Uncle Joe lived
to 95 to die at the ... ]

54
99:59:59,999 --> 99:59:59,999
it's less important than you think.

55
99:59:59,999 --> 99:59:59,999
Number two is lifestyle.

56
99:59:59,999 --> 99:59:59,999
Don't smoke,

57
99:59:59,999 --> 99:59:59,999
don't be obsese,

58
99:59:59,999 --> 99:59:59,999
pre-screen,

59
99:59:59,999 --> 99:59:59,999
get rid of about two-thirds
of early cancers

60
99:59:59,999 --> 99:59:59,999
and cardiovascular disease.

61
99:59:59,999 --> 99:59:59,999
The number one indicator or signal
that you'll make it to triple digits:

62
99:59:59,999 --> 99:59:59,999
how many people do you love?

63
99:59:59,999 --> 99:59:59,999
Caretaking is the security camera,

64
99:59:59,999 --> 99:59:59,999
what we call the low-resolution
security camera in our brain,

65
99:59:59,999 --> 99:59:59,999
deciding whether or not
you are adding value.

66
99:59:59,999 --> 99:59:59,999
Facebook taps into our instinctive need

67
99:59:59,999 --> 99:59:59,999
not only to be loved,

68
99:59:59,999 --> 99:59:59,999
but to love others,

69
99:59:59,999 --> 99:59:59,999
mostly through pictures
that create empathy,

70
99:59:59,999 --> 99:59:59,999
catalyze,

71
99:59:59,999 --> 99:59:59,999
and reinforce our relationships.

72
99:59:59,999 --> 99:59:59,999
Let's continue our journey down the torso.

73
99:59:59,999 --> 99:59:59,999
Amazon is our consumptive gut.

74
99:59:59,999 --> 99:59:59,999
The instinct of more is hardwired into us.

75
99:59:59,999 --> 99:59:59,999
The penalty for too little
is starvation and malnurtition.

76
99:59:59,999 --> 99:59:59,999
Open your cupboards,

77
99:59:59,999 --> 99:59:59,999
open your closets,

78
99:59:59,999 --> 99:59:59,999
you have 10 to 100 x times
what you need.

79
99:59:59,999 --> 99:59:59,999
Why?

80
99:59:59,999 --> 99:59:59,999
Because the penalty for too little

81
99:59:59,999 --> 99:59:59,999
is much greater than
the penalty for too much.

82
99:59:59,999 --> 99:59:59,999
So more for less is a business strategy
that never goes out of style.

83
99:59:59,999 --> 99:59:59,999
It's the strategy of China,

84
99:59:59,999 --> 99:59:59,999
it's a the strategy of Wal-Mart,

85
99:59:59,999 --> 99:59:59,999
and now it's the strategy of the most
successful company in the world,

86
99:59:59,999 --> 99:59:59,999
Amazon.

87
99:59:59,999 --> 99:59:59,999
You get more for less into your gut,

88
99:59:59,999 --> 99:59:59,999
digest,

89
99:59:59,999 --> 99:59:59,999
send it to your muscular
and skeletal system of consumption.

90
99:59:59,999 --> 99:59:59,999
Moving further,

91
99:59:59,999 --> 99:59:59,999
once we know we will survive,

92
99:59:59,999 --> 99:59:59,999
the basic instinct,

93
99:59:59,999 --> 99:59:59,999
we move to the second
most powerful instinct,

94
99:59:59,999 --> 99:59:59,999
and that is to spread and select

95
99:59:59,999 --> 99:59:59,999
the strongest, smartest
and fastest seat

96
99:59:59,999 --> 99:59:59,999
to the four corners of the earth,

97
99:59:59,999 --> 99:59:59,999
or pick the best seat.

98
99:59:59,999 --> 99:59:59,999
This is not a timepiece.

99
99:59:59,999 --> 99:59:59,999
I haven't wound it in five years.

100
99:59:59,999 --> 99:59:59,999
It's my vain attempt to say to people
if you mate with me,

101
99:59:59,999 --> 99:59:59,999
your children are more likely to survive

102
99:59:59,999 --> 99:59:59,999
than if you mate with somebody
wearing a Swatch watch.

103
99:59:59,999 --> 99:59:59,999
(Laughter)

104
99:59:59,999 --> 99:59:59,999
The key to business is tapping into
the irrational organs.

105
99:59:59,999 --> 99:59:59,999
Irrational is Harvard Business School
and New York Business School's term

106
99:59:59,999 --> 99:59:59,999
for fat profit margins

107
99:59:59,999 --> 99:59:59,999
and shareholder value.

108
99:59:59,999 --> 99:59:59,999
High caloric [paste] for your children,

109
99:59:59,999 --> 99:59:59,999
no?

110
99:59:59,999 --> 99:59:59,999
You love your choosey mom.

111
99:59:59,999 --> 99:59:59,999
Why choosey moms choose JIF,

112
99:59:59,999 --> 99:59:59,999
you love your kids more,

113
99:59:59,999 --> 99:59:59,999
the greatest algorithm for shareholder
creation from World War II

114
99:59:59,999 --> 99:59:59,999
to the advent of Google

115
99:59:59,999 --> 99:59:59,999
was taking an average product
and appealing to people's hearts.

116
99:59:59,999 --> 99:59:59,999
Your a better a mom,

117
99:59:59,999 --> 99:59:59,999
a better person,

118
99:59:59,999 --> 99:59:59,999
a better patriot

119
99:59:59,999 --> 99:59:59,999
if you buy this average soap
versus this average soap.

120
99:59:59,999 --> 99:59:59,999
Now the number one algorithm
for shareholder value isn't technology.

121
99:59:59,999 --> 99:59:59,999
Look at the Forbes 400,

122
99:59:59,999 --> 99:59:59,999
take out inherited wealth,

123
99:59:59,999 --> 99:59:59,999
take out finance,

124
99:59:59,999 --> 99:59:59,999
the number one source of wealth creation:

125
99:59:59,999 --> 99:59:59,999
appealing to your reproductive organs.

126
99:59:59,999 --> 99:59:59,999
The [lauders?]

127
99:59:59,999 --> 99:59:59,999
the wealthiest man in Europe,

128
99:59:59,999 --> 99:59:59,999
LVMH,

129
99:59:59,999 --> 99:59:59,999
numbers two and three H&M
and Indotechs.

130
99:59:59,999 --> 99:59:59,999
You want to target the most
irrational organs for shareholder value.

131
99:59:59,999 --> 99:59:59,999
As a result,

132
99:59:59,999 --> 99:59:59,999
these four companies --

133
99:59:59,999 --> 99:59:59,999
Apple, Amazon, Facebook and Google
have disarticulated who we are.

134
99:59:59,999 --> 99:59:59,999
God love consumption sex.

135
99:59:59,999 --> 99:59:59,999
The proportion in your approach
to those things is who you are

136
99:59:59,999 --> 99:59:59,999
and they have re-assembeled who we are
in the form of for-profit companies

137
99:59:59,999 --> 99:59:59,999
at the end of the Great recession,

138
99:59:59,999 --> 99:59:59,999
the market capital of these companies
was a equivalent to the GDP of Niger,

139
99:59:59,999 --> 99:59:59,999
now it is equivalent to the GDP of India,

140
99:59:59,999 --> 99:59:59,999
having blown past Russia and Canada

141
99:59:59,999 --> 99:59:59,999
in '13 and '14,

142
99:59:59,999 --> 99:59:59,999
there are only five nations

143
99:59:59,999 --> 99:59:59,999
that have a GDP greater than the combined
capital of these four firms.

144
99:59:59,999 --> 99:59:59,999
Something is happening though.

145
99:59:59,999 --> 99:59:59,999
The conversation just a year ago
was which CEO was more Jesus-like,

146
99:59:59,999 --> 99:59:59,999
who was running for president.

147
99:59:59,999 --> 99:59:59,999
Now the worm has turned.

148
99:59:59,999 --> 99:59:59,999
Everything they're doing is bothering us.

149
99:59:59,999 --> 99:59:59,999
We're worried they're tax avoiders.

150
99:59:59,999 --> 99:59:59,999
Wal-mart, since the great recession,
has paid 64 billion dollars

151
99:59:59,999 --> 99:59:59,999
in corporate income tax.

152
99:59:59,999 --> 99:59:59,999
Amazon has paid 1.4.

153
99:59:59,999 --> 99:59:59,999
How do we pay our firefighters,
our soldiers and our social workers

154
99:59:59,999 --> 99:59:59,999
if the most successful
companies in the world

155
99:59:59,999 --> 99:59:59,999
don't pay their fair share?

156
99:59:59,999 --> 99:59:59,999
Pretty easy.

157
99:59:59,999 --> 99:59:59,999
That means the less successful companies
have to pay more than their fair share.

158
99:59:59,999 --> 99:59:59,999
Alexa, is this a good thing?

159
99:59:59,999 --> 99:59:59,999
(Laughter)

160
99:59:59,999 --> 99:59:59,999
This is despite the fact

161
99:59:59,999 --> 99:59:59,999
that Amazon has added the entire
market capitalization of Wal-Mart

162
99:59:59,999 --> 99:59:59,999
to its market cap in the last 19 months.

163
99:59:59,999 --> 99:59:59,999
Whose fault is it?

164
99:59:59,999 --> 99:59:59,999
It's our fault.

165
99:59:59,999 --> 99:59:59,999
We're electing regulators
who don't have the backbone

166
99:59:59,999 --> 99:59:59,999
to actually go after these companies.

167
99:59:59,999 --> 99:59:59,999
Facebook lies to [regulators]

168
99:59:59,999 --> 99:59:59,999
and says, "It would be impossible

169
99:59:59,999 --> 99:59:59,999
for us to share the data between
our core platform

170
99:59:59,999 --> 99:59:59,999
and our proposed acquisition of Whatsapp.

171
99:59:59,999 --> 99:59:59,999
Approve the merger."

172
99:59:59,999 --> 99:59:59,999
They approved the merger and then --

173
99:59:59,999 --> 99:59:59,999
spoiler alert --

174
99:59:59,999 --> 99:59:59,999
they figure it out.

175
99:59:59,999 --> 99:59:59,999
And the EU says, "I feel lied to,

176
99:59:59,999 --> 99:59:59,999
we're fining you 120 billion dollars,

177
99:59:59,999 --> 99:59:59,999
about .6 percent of the acquisition price
of 19 billion dollars.

178
99:59:59,999 --> 99:59:59,999
If Mark Zuckerberg could take out
and insurance policy

179
99:59:59,999 --> 99:59:59,999
that the acquisition would
go through for .6 percent,

180
99:59:59,999 --> 99:59:59,999
wouldn't he do it?

181
99:59:59,999 --> 99:59:59,999
Anti-competitive behavior.

182
99:59:59,999 --> 99:59:59,999
A two and half billion dollar fine,

183
99:59:59,999 --> 99:59:59,999
three billion of the cash flow,

184
99:59:59,999 --> 99:59:59,999
three percent of the cash
on Google's balance sheet.

185
99:59:59,999 --> 99:59:59,999
We are telling these companies

186
99:59:59,999 --> 99:59:59,999
the smart thing to do,

187
99:59:59,999 --> 99:59:59,999
the shareholder-driven thing to do,

188
99:59:59,999 --> 99:59:59,999
is to lie and to cheat.

189
99:59:59,999 --> 99:59:59,999
We are issuing 25 cent parking tickets
on a meter that costs $100 an hour.

190
99:59:59,999 --> 99:59:59,999
The smart thing to do is like,
"job destruction!"

191
99:59:59,999 --> 99:59:59,999
Amazon only needs one person
for two at Macy's.

192
99:59:59,999 --> 99:59:59,999
If they grow their business
20 billion dollars this year,

193
99:59:59,999 --> 99:59:59,999
which they will,

194
99:59:59,999 --> 99:59:59,999
we will lose 53,000 cashiers and clerks.

195
99:59:59,999 --> 99:59:59,999
This is nothing unusual,

196
99:59:59,999 --> 99:59:59,999
this has happened all through our economy,

197
99:59:59,999 --> 99:59:59,999
we've just never seen
companies this good at it.

198
99:59:59,999 --> 99:59:59,999
That's one Yankee stadium of workers.

199
99:59:59,999 --> 99:59:59,999
It's even worse in media.

200
99:59:59,999 --> 99:59:59,999
Facebook and Google grow their business
22 billion dollars this year,

201
99:59:59,999 --> 99:59:59,999
which they will,

202
99:59:59,999 --> 99:59:59,999
we're going to lose approximately
150,000 creative directors,

203
99:59:59,999 --> 99:59:59,999
planners and copywriters.

204
99:59:59,999 --> 99:59:59,999
Or we can fill up two-and-a-half
Yankee stadiums

205
99:59:59,999 --> 99:59:59,999
and say, "You are out of work
courtesy of Amazon."

206
99:59:59,999 --> 99:59:59,999
We now get the majority of our news
from our social media feeds,

207
99:59:59,999 --> 99:59:59,999
and the majority of our news
coming off of social media feeds

208
99:59:59,999 --> 99:59:59,999
is fake news.

209
99:59:59,999 --> 99:59:59,999
(Laughter)

210
99:59:59,999 --> 99:59:59,999
I am not allowed to be politcal
or use curse words,

211
99:59:59,999 --> 99:59:59,999
or talk about religion in class,

212
99:59:59,999 --> 99:59:59,999
so I can definitely not say,

213
99:59:59,999 --> 99:59:59,999
"Zuckerberg has become Putin's bitch."

214
99:59:59,999 --> 99:59:59,999
Definitely cannot say that.

215
99:59:59,999 --> 99:59:59,999
(Laughter)

216
99:59:59,999 --> 99:59:59,999
Their defense:

217
99:59:59,999 --> 99:59:59,999
"Facebook is not a media company,

218
99:59:59,999 --> 99:59:59,999
it's a technology company."

219
99:59:59,999 --> 99:59:59,999
You create original content,

220
99:59:59,999 --> 99:59:59,999
you pay sports leagues
to give you original content,

221
99:59:59,999 --> 99:59:59,999
you run advertising against it --

222
99:59:59,999 --> 99:59:59,999
boom, you're a media company.

223
99:59:59,999 --> 99:59:59,999
Just in the last few days,

224
99:59:59,999 --> 99:59:59,999
Sheryl Sandberg has repeated this lie,

225
99:59:59,999 --> 99:59:59,999
that "we are not a media company."

226
99:59:59,999 --> 99:59:59,999
Facebook has openly embraced
the margins of celebrity

227
99:59:59,999 --> 99:59:59,999
and the influence of a media company,

228
99:59:59,999 --> 99:59:59,999
yet seems to be allergic
to the responsibilities

229
99:59:59,999 --> 99:59:59,999
of a media company.

230
99:59:59,999 --> 99:59:59,999
Imagine McDonald's.

231
99:59:59,999 --> 99:59:59,999
We find 80 percent of their beef is fake,

232
99:59:59,999 --> 99:59:59,999
and its giving us [insephalitis],

233
99:59:59,999 --> 99:59:59,999
and we're making terrible decisions.

234
99:59:59,999 --> 99:59:59,999
And we say, "McDonald's,

235
99:59:59,999 --> 99:59:59,999
we're pissed off."

236
99:59:59,999 --> 99:59:59,999
And they say, "Wait,

237
99:59:59,999 --> 99:59:59,999
we're not a fast-food restaurant,

238
99:59:59,999 --> 99:59:59,999
we're a fast-food platform."

239
99:59:59,999 --> 99:59:59,999
(Laughter)

240
99:59:59,999 --> 99:59:59,999
These companies and CEOs wrap themselves
in a neon-blue pink rainbow

241
99:59:59,999 --> 99:59:59,999
and blue blanket to create
and illusionist trick.

242
99:59:59,999 --> 99:59:59,999
From their behavior each day,

243
99:59:59,999 --> 99:59:59,999
which is more indicative
of the spawn of Darth Vader and Ayn Rand.

244
99:59:59,999 --> 99:59:59,999
Why?

245
99:59:59,999 --> 99:59:59,999
Because we as progressives
are seen as nice but weak.

246
99:59:59,999 --> 99:59:59,999
If Sheryl Sandberg had written
a book on gun rights,

247
99:59:59,999 --> 99:59:59,999
or on the pro-life movement,

248
99:59:59,999 --> 99:59:59,999
would they be flying Sheryl to Cannes?

249
99:59:59,999 --> 99:59:59,999
No.

250
99:59:59,999 --> 99:59:59,999
And I'm not doubting
their progressive values,

251
99:59:59,999 --> 99:59:59,999
but it foots to shareholder value,

252
99:59:59,999 --> 99:59:59,999
because we as progressives
are seen as weak.

253
99:59:59,999 --> 99:59:59,999
They're so nice --

254
99:59:59,999 --> 99:59:59,999
remember Microsoft?

255
99:59:59,999 --> 99:59:59,999
They didn't seem as nice,

256
99:59:59,999 --> 99:59:59,999
and regulators stepped in much earlier
than the regulators now

257
99:59:59,999 --> 99:59:59,999
who would never step in
on those nice, nice people.

258
99:59:59,999 --> 99:59:59,999
I'm about to get on a plane tonight,

259
99:59:59,999 --> 99:59:59,999
and I'm going to have a guy
named Roy from TSA molest me.

260
99:59:59,999 --> 99:59:59,999
if I am suspected
of a DUI on the way home,

261
99:59:59,999 --> 99:59:59,999
I can have blood taken from my person.

262
99:59:59,999 --> 99:59:59,999
But wait, don't tap into the iPhone,

263
99:59:59,999 --> 99:59:59,999
it's sacred.

264
99:59:59,999 --> 99:59:59,999
This is our new cross.

265
99:59:59,999 --> 99:59:59,999
It shouldn't be the iPhone X,

266
99:59:59,999 --> 99:59:59,999
it should be the iPhone cross.

267
99:59:59,999 --> 99:59:59,999
We have our religion;

268
99:59:59,999 --> 99:59:59,999
it's Apple.

269
99:59:59,999 --> 99:59:59,999
Our Jesus Christ is Steve Jobs,

270
99:59:59,999 --> 99:59:59,999
and we've decided this is holier
than our person, our house

271
99:59:59,999 --> 99:59:59,999
or our computer.

272
99:59:59,999 --> 99:59:59,999
We have become totally out of control
with the gross idolatry of innovation

273
99:59:59,999 --> 99:59:59,999
and of youth.

274
99:59:59,999 --> 99:59:59,999
We no longer worship
at the altar of character,

275
99:59:59,999 --> 99:59:59,999
of kindess,

276
99:59:59,999 --> 99:59:59,999
but of innovation and people
who create shareholder value.

277
99:59:59,999 --> 99:59:59,999
Amazon has become so powerful
in the marketplace

278
99:59:59,999 --> 99:59:59,999
it can conduct Jedi mind tricks.

279
99:59:59,999 --> 99:59:59,999
It can begin damaging other
industries just by looking at it.

280
99:59:59,999 --> 99:59:59,999
Nike announces they're
distributing on Amazon,

281
99:59:59,999 --> 99:59:59,999
their stock goes up,

282
99:59:59,999 --> 99:59:59,999
every other footwear stock goes down.

283
99:59:59,999 --> 99:59:59,999
When Amazon stock goes up
the rest of retail stocks go down

284
99:59:59,999 --> 99:59:59,999
because they assume what's good
for Amazon is bad for everybody else.

285
99:59:59,999 --> 99:59:59,999
They cut the cost on salmon 33 percent
when they acquired Whole Foods.

286
99:59:59,999 --> 99:59:59,999
Between the time they announced
the acquisition of Whole Foods

287
99:59:59,999 --> 99:59:59,999
and when it closed,

288
99:59:59,999 --> 99:59:59,999
[Kroger,] the largest [pure play]
grocer in America

289
99:59:59,999 --> 99:59:59,999
shed one-third of its value

290
99:59:59,999 --> 99:59:59,999
because Amazon purchased a grocer
one-eleventh the size of Kroger.

291
99:59:59,999 --> 99:59:59,999
I got very lucky.

292
99:59:59,999 --> 99:59:59,999
I predicted the acquisition
of Whole Foods by Amazon

293
99:59:59,999 --> 99:59:59,999
the week before it happened.

294
99:59:59,999 --> 99:59:59,999
This is me boasting.

295
99:59:59,999 --> 99:59:59,999
I said this publicly in the media

296
99:59:59,999 --> 99:59:59,999
that this was the largest
acquisition in their history,

297
99:59:59,999 --> 99:59:59,999
they'd never made an acquisition
over one billion,

298
99:59:59,999 --> 99:59:59,999
and people asked, "How did you know this?"

299
99:59:59,999 --> 99:59:59,999
So I'm letting this very impressive
audience in on the secret.

300
99:59:59,999 --> 99:59:59,999
How did I know this?

301
99:59:59,999 --> 99:59:59,999
I'm going to tell you how I knew.

302
99:59:59,999 --> 99:59:59,999
I bark at Alexa all day long

303
99:59:59,999 --> 99:59:59,999
and try to figure out what's going on.

304
99:59:59,999 --> 99:59:59,999
Alexa, buy whole milk.

305
99:59:59,999 --> 99:59:59,999
(Alexa} I couldn't find
anything for whole milk,

306
99:59:59,999 --> 99:59:59,999
so I've added whole milk
to your shopping list.

307
99:59:59,999 --> 99:59:59,999
Then I asked,

308
99:59:59,999 --> 99:59:59,999
"Alexa, buy organic foods."

309
99:59:59,999 --> 99:59:59,999
(Alexa) The top search result
for organic food

310
99:59:59,999 --> 99:59:59,999
is Plum Organic's baby food,

311
99:59:59,999 --> 99:59:59,999
banana and pumpkin.

312
99:59:59,999 --> 99:59:59,999
12 pack of four ounces each.

313
99:59:59,999 --> 99:59:59,999
It's 15 dollars total.

314
99:59:59,999 --> 99:59:59,999
Would you like to buy it?

315
99:59:59,999 --> 99:59:59,999
(Scott) And then, as often
happens at my age,

316
99:59:59,999 --> 99:59:59,999
I got confused.

317
99:59:59,999 --> 99:59:59,999
"Alexa, buy whole foods."

318
99:59:59,999 --> 99:59:59,999
(Alexa) I have purchased the outstanding
stock of Whole Foods Incorporated

319
99:59:59,999 --> 99:59:59,999
at 42 dollars per share.

320
99:59:59,999 --> 99:59:59,999
I have charged 13.7 billion
to your American Express card.

321
99:59:59,999 --> 99:59:59,999
(Laughter)

322
99:59:59,999 --> 99:59:59,999
I thought that'd be funnier.

323
99:59:59,999 --> 99:59:59,999
(Laughter)

324
99:59:59,999 --> 99:59:59,999
We've personified these companies,

325
99:59:59,999 --> 99:59:59,999
and just as when you're really angry
over every little thing someone does

326
99:59:59,999 --> 99:59:59,999
in your life and relationships,

327
99:59:59,999 --> 99:59:59,999
you've got to ask yourself,

328
99:59:59,999 --> 99:59:59,999
"What's going on here?

329
99:59:59,999 --> 99:59:59,999
Why are we so disappointed in technology?"

330
99:59:59,999 --> 99:59:59,999
And I believe it's because the ratio

331
99:59:59,999 --> 99:59:59,999
of one percent per suit
of shareholder value

332
99:59:59,999 --> 99:59:59,999
and 99 percent the betterment of humanity

333
99:59:59,999 --> 99:59:59,999
that techonolgy used to play

334
99:59:59,999 --> 99:59:59,999
has been flipped,

335
99:59:59,999 --> 99:59:59,999
and now we're totally focused
on shareholder value

336
99:59:59,999 --> 99:59:59,999
instead of humanity.

337
99:59:59,999 --> 99:59:59,999
100,000 people came together
for the Manhattan Project

338
99:59:59,999 --> 99:59:59,999
and literally saved the world.

339
99:59:59,999 --> 99:59:59,999
Technology saved the world.

340
99:59:59,999 --> 99:59:59,999
My mother was a four-year-old Jew
living in London at the outset of the war.

341
99:59:59,999 --> 99:59:59,999
If we had not formed the footrace
towards splitting the atom,

342
99:59:59,999 --> 99:59:59,999
would she have survived?

343
99:59:59,999 --> 99:59:59,999
It's unlikely.

344
99:59:59,999 --> 99:59:59,999
25 years later,

345
99:59:59,999 --> 99:59:59,999
the most impressive
accomplishment arguably

346
99:59:59,999 --> 99:59:59,999
ever in all of humankind,

347
99:59:59,999 --> 99:59:59,999
put a man on the moon.

348
99:59:59,999 --> 99:59:59,999
430,000 Canadians, Britsh
and Americans came together

349
99:59:59,999 --> 99:59:59,999
again with very basic technology

350
99:59:59,999 --> 99:59:59,999
and put a man on the moon.

351
99:59:59,999 --> 99:59:59,999
Now we have the 700,000
best and brightest,

352
99:59:59,999 --> 99:59:59,999
and these are the best and brightest
from the four corners of the earth.

353
99:59:59,999 --> 99:59:59,999
They are literally playing with lasers
relative to the slingshots,

354
99:59:59,999 --> 99:59:59,999
relative to the squirt gun.

355
99:59:59,999 --> 99:59:59,999
They have the GDP of India to work at.

356
99:59:59,999 --> 99:59:59,999
And after studying
these companies for 10 years,

357
99:59:59,999 --> 99:59:59,999
I know what their mission is.

358
99:59:59,999 --> 99:59:59,999
Is it to organize the world's information?

359
99:59:59,999 --> 99:59:59,999
Is it to connect us?

360
99:59:59,999 --> 99:59:59,999
Is it to create greater commonty of man?

361
99:59:59,999 --> 99:59:59,999
It isn't.

362
99:59:59,999 --> 99:59:59,999
I know why we have brought together --

363
99:59:59,999 --> 99:59:59,999
I know that the greatest collection
of IQ capital and creativity

364
99:59:59,999 --> 99:59:59,999
that their soul mission is
to tell another fucking Nissan.

365
99:59:59,999 --> 99:59:59,999
My name is Scott Galloway,

366
99:59:59,999 --> 99:59:59,999
I teach at NYU

367
99:59:59,999 --> 99:59:59,999
and I appreciate your time.

368
99:59:59,999 --> 99:59:59,999
(Applause)

369
99:59:59,999 --> 99:59:59,999
Chris Anderson: Not planned,

370
99:59:59,999 --> 99:59:59,999
but you prompted
some questions in me, Scott.

371
99:59:59,999 --> 99:59:59,999
That was a spectacular rant.

372
99:59:59,999 --> 99:59:59,999
SG: Is this like Letterman

373
99:59:59,999 --> 99:59:59,999
when you do well,

374
99:59:59,999 --> 99:59:59,999
he calls you onto the couch?

375
99:59:59,999 --> 99:59:59,999
CA: No, no, you're going to the heart
of the conversation right now.

376
99:59:59,999 --> 99:59:59,999
Everyone's aware that after years
of worshipping Silicon Valley,

377
99:59:59,999 --> 99:59:59,999
suddenly the worm has turned,

378
99:59:59,999 --> 99:59:59,999
and in such a big way.

379
99:59:59,999 --> 99:59:59,999
To some people here,

380
99:59:59,999 --> 99:59:59,999
it will just feel like you're piling on,

381
99:59:59,999 --> 99:59:59,999
you're kicking the kids who've
already been kicked to pieces anyway.

382
99:59:59,999 --> 99:59:59,999
Don't you feel any empathy
for them at all?

383
99:59:59,999 --> 99:59:59,999
CG: None whatsoever.

384
99:59:59,999 --> 99:59:59,999
Look, this is the issue.

385
99:59:59,999 --> 99:59:59,999
It's not their fault, it's our fault.

386
99:59:59,999 --> 99:59:59,999
They're for-profit companies.

387
99:59:59,999 --> 99:59:59,999
They're not concerned
with the condition of our souls.

388
99:59:59,999 --> 99:59:59,999
They're not going to take care
of us when we get older.

389
99:59:59,999 --> 99:59:59,999
We have set up a society that values
shareholder value over everything,

390
99:59:59,999 --> 99:59:59,999
and they're doing what they're
supposed to be doing,

391
99:59:59,999 --> 99:59:59,999
but we need to elect people,

392
99:59:59,999 --> 99:59:59,999
and we need to force ourselves
to forece them to be subject

393
99:59:59,999 --> 99:59:59,999
to the same scrutiny that the rest
of business endures full-stop.

394
99:59:59,999 --> 99:59:59,999
CA: There's another narrative

395
99:59:59,999 --> 99:59:59,999
that is arguably equally
consistent with the facts,

396
99:59:59,999 --> 99:59:59,999
which is that there actually is good
intent in much of the leadership --

397
99:59:59,999 --> 99:59:59,999
I won't say everyone necessarily --

398
99:59:59,999 --> 99:59:59,999
many of the employees.

399
99:59:59,999 --> 99:59:59,999
We all know people who work
in those companies,

400
99:59:59,999 --> 99:59:59,999
and they still are pretty convincing

401
99:59:59,999 --> 99:59:59,999
that their mission is to do --

402
99:59:59,999 --> 99:59:59,999
so the alternative narrative

403
99:59:59,999 --> 99:59:59,999
is there have been
unintended consequences here,

404
99:59:59,999 --> 99:59:59,999
that the technologies
that we're unleashing,

405
99:59:59,999 --> 99:59:59,999
the algorithms that we're attempting
to personalize the internet,

406
99:59:59,999 --> 99:59:59,999
for example,

407
99:59:59,999 --> 99:59:59,999
have a) resulted in weird effects
that filter bubbles

408
99:59:59,999 --> 99:59:59,999
that we weren't expecting,

409
99:59:59,999 --> 99:59:59,999
and b) made themselves vulberable
to weird things like --

410
99:59:59,999 --> 99:59:59,999
oh, I don't know,

411
99:59:59,999 --> 99:59:59,999
Russian hackers creating accounts

412
99:59:59,999 --> 99:59:59,999
and doing things that we didn't expect.

413
99:59:59,999 --> 99:59:59,999
Isn't the unintended consequence
a possibility here?

414
99:59:59,999 --> 99:59:59,999
SG: I don't think --

415
99:59:59,999 --> 99:59:59,999
so I'm pretty sure statistically

416
99:59:59,999 --> 99:59:59,999
they're no less or better people
than any other organization

417
99:59:59,999 --> 99:59:59,999
that has 100,000 or more poeple.

418
99:59:59,999 --> 99:59:59,999
I don't think they're bad people.

419
99:59:59,999 --> 99:59:59,999
As a matter of fact,

420
99:59:59,999 --> 99:59:59,999
I would argue that there's a lot
of very civic-minded, decent leadership,

421
99:59:59,999 --> 99:59:59,999
but this is the issue.

422
99:59:59,999 --> 99:59:59,999
When you control
90 percent points of share

423
99:59:59,999 --> 99:59:59,999
in a market search

424
99:59:59,999 --> 99:59:59,999
that is now bigger than the entire
advertising market of any nation,

425
99:59:59,999 --> 99:59:59,999
and you're primarily compensated
and trying to develop economic security

426
99:59:59,999 --> 99:59:59,999
for you and the families
of your employees,

427
99:59:59,999 --> 99:59:59,999
to increase that market share,

428
99:59:59,999 --> 99:59:59,999
you can't help but leverage
all the power at your disposal.

429
99:59:59,999 --> 99:59:59,999
And that is the basis for regulation,

430
99:59:59,999 --> 99:59:59,999
and it's the basis for [truism]
throughout history

431
99:59:59,999 --> 99:59:59,999
that power corrupts.

432
99:59:59,999 --> 99:59:59,999
They're not bad people,

433
99:59:59,999 --> 99:59:59,999
we've just let them get out of control.

434
99:59:59,999 --> 99:59:59,999
CA: So maybe the case
is slightly overstated?

435
99:59:59,999 --> 99:59:59,999
I know at least a bit --

436
99:59:59,999 --> 99:59:59,999
Larry Page for example,

437
99:59:59,999 --> 99:59:59,999
Jeff Bezos --

438
99:59:59,999 --> 99:59:59,999
I don't actually think
they wake up thinking,

439
99:59:59,999 --> 99:59:59,999
"I've got to sell a fucking Nissan."

440
99:59:59,999 --> 99:59:59,999
I don't think they think that.

441
99:59:59,999 --> 99:59:59,999
I think they are trying to build
something cool,

442
99:59:59,999 --> 99:59:59,999
and I probbaly,

443
99:59:59,999 --> 99:59:59,999
in moments of reflection,

444
99:59:59,999 --> 99:59:59,999
as horrified that some of the things
that have happened,

445
99:59:59,999 --> 99:59:59,999
as we might be,

446
99:59:59,999 --> 99:59:59,999
so is there a different way
of framing this?

447
99:59:59,999 --> 99:59:59,999
To say that when you're model
is advertising that there are dangers

448
99:59:59,999 --> 99:59:59,999
that you have to take on more explicitly?

449
99:59:59,999 --> 99:59:59,999
SG: I think it's very difficult
to set an organization up

450
99:59:59,999 --> 99:59:59,999
as we do,

451
99:59:59,999 --> 99:59:59,999
to pursue shareholder value
above all else.

452
99:59:59,999 --> 99:59:59,999
They're not non-profits.

453
99:59:59,999 --> 99:59:59,999
The reason people go to work there
is they want to create economic security

454
99:59:59,999 --> 99:59:59,999
for their familes,

455
99:59:59,999 --> 99:59:59,999
mostly first and foremost.

456
99:59:59,999 --> 99:59:59,999
And when you get to a point

457
99:59:59,999 --> 99:59:59,999
where you control so much
economic power,

458
99:59:59,999 --> 99:59:59,999
you use all the weapons at your disposal.

459
99:59:59,999 --> 99:59:59,999
I don't think they're bad people,

460
99:59:59,999 --> 99:59:59,999
but I think the role of government
and the role of us as consumers

461
99:59:59,999 --> 99:59:59,999
and people who elect our officials,

462
99:59:59,999 --> 99:59:59,999
is to ensure that there
are some checks here.

463
99:59:59,999 --> 99:59:59,999
And we have given
them the mother of all hall passes

464
99:59:59,999 --> 99:59:59,999
because we find them just so fascinating.

465
99:59:59,999 --> 99:59:59,999
CA: Scott, eloquently put,

466
99:59:59,999 --> 99:59:59,999
spectactularly put.

467
99:59:59,999 --> 99:59:59,999
Mark Zuckerberg, Jeff Bezos,
Larry Page, Tim Cook,

468
99:59:59,999 --> 99:59:59,999
if you're watching,

469
99:59:59,999 --> 99:59:59,999
you're welcome to come and make
the counter argument as well.

470
99:59:59,999 --> 99:59:59,999
CA: Scott, thank you so much.

471
99:59:59,999 --> 99:59:59,999
SG: Thanks very much.

472
99:59:59,999 --> 99:59:59,999
(Applause)