A new economic era: from profit-driven to purpose-driven; by Jeremy Rifkin (Documentary)

A new economic era: from ownership to sharing, from profit-driven to purpose-driven. From economy to ecology....by Jeremy Rifkin (#GeniusSpeech)

This article includes the full transcript produced and spoken by Jeremy Rifkin (which I spent hours typing the speech); based on YouTube video above. What is surprising to me is that I wasn't able to find the full transcript of this video, which I loved, on the internet. Therefore, I decided to type it all here on LinkedIn, so you can learn the way I did. (my promise to you)...In addition to that, where the transcript provides examples of companies, new terminology, or executions of a certain phenomenon, I have provided links to the news from the internet.

This video, in my opinion, deserves full attention. I have heard this video over 25 times, again and again, and I have personally learned, relearned, and learned again.

This video is published on Feb 13, 2018, by VICE production.

About the Author: Jeremy Rifkin is an economic and social theorist and the author of over twenty books including The Zero Marginal Cost Society, The Third Industrial Revolution and The Empathic Civilization. He is an advisor to the European Union and The People's Republic of China, and a principal architect of their Third Industrial Revolution plans.

You can order: "The Third Industrial Revolution" book, via Amazon. Click here.

The Third Industrial Revolution: A Radical New Sharing Economy

The global economy is in crisis. The exponential exhaustion of natural resources, declining productivity, slow growth, rising unemployment, and steep inequality, forces us to rethink our economic models. Where do we go from here? In this feature-length documentary, social and economic theorist Jeremy Rifkin lays out a road map to usher in a new economic system. A Third Industrial Revolution is unfolding with the convergence of three pivotal technologies: an ultra-fast 5G communication internet, a renewable energy internet, and a driverless mobility internet, all connected to the Internet of Things embedded across society and the environment. This 21st-century smart digital infrastructure is giving rise to a radical new sharing economy that is transforming the way we manage, power, and move economic life.

With the Internet of Things infrastructure, Big Data and analytics can be used to develop algorithms that increase productivity and dramatically lower the marginal cost to near zero in the production and distribution of an increasing array of goods and services. Today, millions of people around the world are producing and sharing things like videos, music, contributions to Wikipedia, renewable energy, homes, and automobiles.

In the sharing economy, ownership gives way to access, sellers and buyers are replaced by providers and users, social capital becomes as important as market capital, consumerism is upended by sustainability, and quality of life indicators become more important than GDP. The sharing economy can become a circular economy in which goods and services are redistributed among multiple users, dramatically reducing society’s ecological footprint.

But with climate change now ravaging the planet, the transition to a new economic era has to happen fast. Change of this magnitude requires political will and a profound ideological shift

The Economic Downturn is fuelling growing discontent toward governing institutions and spawning extreme political movements around the world.

Watch this video and I hope you learn from the Transcript below...

Transcript...by Jeremy Rifkin:

[Applause]

3:20 Let me start on a very somber note. I hope it will end up being a liberating reflection. You'll have to judge.

3:37 GDP is slowing all over the world everywhere. And the reason is productivity has been declining or twenty years all over the world.

3:52 The result: Unemployment is very high everywhere. And nowhere is it more pronounced than among the Millennial Generation coming into the workforce. Our economists tell us that we can look forward to slow productivity and slow growth for the next 20 years. And let me do the math for you: At the end of two industrial revolutions, in the 19th and 20th century, here's the equation:

4:26 We have to admit that half the human race is far better off today than our ancestors were before we began the industrial experiment.

4:29 Granted? Also, we need to acknowledge that 40% of the human race are making $2 a day or less. And arguably they are worse off than their ancestors were before industrial experiment.??

4:48 The final equation: The industrial era, while it's benefited half the human race in detriment to the other half of the human race, the well-off, the very wealthy have done quite well. Today, 62 wealthiest human beings in the world today (we could put them in this little section of the room) their combined wealth equals the accumulated wealth of one half?the human population living on Earth. Three and a half billion people...

Notes: The world population was estimated to have reached 7.5 billion in April 2017. The United Nations estimates it will further increase to 11.2 billion in the year 2100.)

5:19 There's something really dysfunctional about the way the human family is organizing its economic relationships on this Earth. It's clear we're in a long-term structural economic crisis at the end of the 2nd Industrial Revolution. But now this is industrial air has given rise to a much more profound crisis- an environmental crisis.

5:49 We have spewed massive amounts of CO2 and methane and Nitrous oxide into the atmosphere of this planet, to create this industrial way of life. And now we have so much C02, methane, and nitrous oxide in the atmosphere that is blocking the sun's heat from getting off the Earth. We are in real-time climate change.

6:02 This is no longer a theory. This is no longer looming on the horizon. This is no longer imminent. Climate change is now at the house, in the door. What's terrifying about climate change and unfortunately it's never explained, before if it were explained, our human family would be justifiable terrified and motivated and driven to begin to transform this planet. Climate change changes the water cycles on Earth. This is what is all about and it never explained. We're the watery planet our satellite probes go to other planets and what's the first thing we look for?... Water... No water? Not interested!

6:44 Recently they discovered what they think is dirty water on Mars and everybody is thrilled. Our ecosystems on Earth have developed over millions of years based on the water cycles, the cloud cycles that traverse them across the Earth. For every one degree that the temperature of the planet goes up ( because of industrial induced CO2 emissions), the atmosphere is actually sucking up 7% more prediction from the ground; the heat is forcing the precipitation into the clouds, so we're getting more concentrated precipitation, more violent water events, but they're more infrequent, throwing the entire water cycle of the Earth off-kilter.

7:37 More blockbuster winter falls of snow. Eight feet in Boston last season? My gosh! More dramatic spring floods- that flood in the Carolinas, remember? They said this flood only will occur once every thousand years. It's the new normal... More prolonged summer droughts. My wife and I were in British Columbia and we're coming into Vancouver. The pilot says, "We have some smoke coming in." I turned to my wife and I said, "You mean smog?" No, he meant smoke. Wildfires from British Columbia to California. Summer droughts and wildfire. We have Category 3, 4, and 5 hurricanes now - so dramatic that they're destroying infrastructure and killing people all over the world. That hurricane that hit the Philippines- This was the most powerful hurricane ever recorded. This is the new normal...What I'm saying here, is that climate change, is dramatically changing the water cycles, they're on an exponential. They're on an exponential curve. This is absolutely frightening. It's terrifying. And, if you are a young millennial about the start a family, If you're a parent here or a grandparent; I want you to listen to this: "Our scientists now tell us that we are in the sixth extinction event of life on Earth. It doesn't even make the headlines."

9:19 This is the most dramatic story a human family has ever faced. There have been five mass extinction events on Earth, in 1450 million years. And each time the chemistry of the planet shifts very quickly (there's what we call a turning point) and massive out of life, it takes upwards of 10 million years, to get new life back on Earth.

9:41 Our scientists now tell us: "we are in the sixth extinction event". This is not a model- we're chronicling it in real-time. And what they're saying is that over the next seven decades (and many of you will be around for a lot of that, and your children will), we could lose over half the species of life, that now inhabits this little oasis in the universe. As my wife says, we just are not grasping the enormity of this moment. We might acknowledge climate change, but we're going on as business as usual, with a little greenwashing.

10:23 99.5% of all the species that ever been on this planet have come and gone. Those are not good odds. And what's interesting is, human beings... We're the actual youngest species, we're the babies. Anatomically modern humans have only been here about 200,000 years.

10:47 There's no guarantee we're gonna make this. And the new studies that have just come out, they're even more terrifying because...They're seeing the freshwater?melts in the Arctic, now in Greenland and now in Antarctica, much quicker than we expected to change the ocean currents. And they're talking about storms that are beyond anything we can imagine, that we've ever seen in human history by the end of this century.

11:47 Talking about the major coastal cities, where much of our urban population is... underwater. This is not a century from now. This is in the lifetime of many people, (who are four and fine now and will be my age)when we're in full steam into this new era, this abyss. So what do we do?....

11:43 We need a new Economic Vision for the World...

11:55 It has to be compelling. We needed a game plan to deploy that vision into and it needs to be quick. It needs to move as quickly in the developing countries; as in the industrialized nations. If we have any chance of arresting the worst of this climate change.. we're gone have to be off carbon in four decades everywhere. This is beyond anything we're talking about at global conferences. How do we begin to tackle something of this magnitude?

12:21 We need to step back and reflect on how the great economic paradigm shifts in history occur. If we know how they occur, we're gonna get a compass that allows us to navigate a new journey to completely transform the way we handle life on Earth.

Chapter One: The Great Economic Revolution in History

12:46 There have been at least seven major economic paradigm shifts in history, and they're very interesting anthropologically because they share a common denominator. And that is at a certain moment of time, three technologies emerge and converge to create what we call in engineering "a general-purpose technology platform." That's a fancy way of saying ..." a new infrastructure."

It?fundamentally changes the way we manage power and move economic life.

13:11 What are those three technologies? First, new communication technologies; allow us to more efficiently manage our economic activity. Second, new sources of energy; to allow us to more efficiently power our economic activity And third, new modes of mobility- transportation logistics- to allow us more efficiently to move the economic activity.

13:37 So when communication revolutions join with new energy regimes, and new modes of transportation, it does change the way we manage power and move economic life. It changes temporal-spatial orientation. It changes our habitats. It allows us to integrate into larger units. It actually even changes consciousness and governance.

14:02 Let me give you two examples: First Industrial Revolution, 19th century; second industrial revolution 20th century. The Brits took us into the first Industrial Revolution and first there was a communication revolution. They invented steam power printing. No more manual print presses. Steam power printing was a big leap forward because it allowed us to mass produce very cheap print quickly.

Then, in the second half of the 19th century.... The Brits layout a telegraph system across the British Isles. Steam power printing and the telegraph: those communication technologies then converged with a completely new source of energy in Britain called: coal.

14:42 But how are they gonna take the coal and harvest it? They invented the steam engine. This is ingenious. They figured out that they should put the steam engine on rails for locomotives, national transport, and logistics. Urban life...the Industrial Revolution... steam power.

15:10 Second Industrial Revolution: The United States.?Centralized electricity and especially the telephone. I know we think the internet's a big deal but the telephone was a really big deal. All of a sudden people could communicate at vast distances at the speed of light.....later radio and television; these communication technologies converge in the United States with a completely new energy source. Cheap Texas oil. Then, Henry Ford put everybody on the road with cars, buses, and trucks. The second Industrial Revolution changed the way we manage power and move economic life.

That second Industrial Revolution took us through the 20th century. It took the whole world through the 20th century. It took the whole world through the 20th Century; and it peaked in July 2008.

16:17 Oil went to $147... Remember that month? In that month, Brent crude oil had a record price of $147 dollars on world markets, and, when it hit that record price, the global economy shut down. Silence...Completely gone. That was the economic earthquake.

16:51 The collapse of the financial markets 60 days later was the aftershock. Mayhem, carnage, and bloodbath. Also called Black Monday on Wall Street. Because it was perhaps the worst financial collapse since the Great Depression. Our policy leaders are still dealing with the aftershock, not the Earthquake. Why was it the Earthquake? Because the entire Industrial Revolution; that we've gone through is all dependent on carbon deposits of a previous period in history. You know, if we look back let's say that make it through this next period of history... I always wonder what will future generations think of us, maybe in a hundred thousand years from now. They'll say, " Oh, yes, we remember them."

17:45 There was the Bronze Age, the Iron Age. These were the fossil people. They dug up the burial grounds of the Carboniferous era and created a short-lived dramatic and very dangerous civilization. t's all about fossil fuels. Our fertilizers and pesticides are made out of fossil fuels.

18:07 Most of our pharmaceutical products are made out of fossil fuels. Our synthetic fiber, our power, our transport, our heating lights- all made out of moving by fossil fuels. When the price of oil goes over ground $95 a barrel, all the other prices go up. When we get into the zone of around $115 a barrel, price becomes so high, the purchasing power slows. This is the sunset of a great industrial era. In 2009 oil went down to 50 a barrel, because the economy had shut down. There was no activity. In 2010 we tried to regrow inventories, so oil prices started to go up, all the other prices go up.

18:50 In 2014 we hit a new peak of $114 or $115 a barrel, purchasing power slowed down again. This is a convulsion of growth-shutdown, growth-shutdown. And the only reason oil went down in the last few years to $30 a barrel; is now the fossil fuel industry is fighting among themselves; In the sunset. OPEC said, "We're gonna keep the oil spigot open."

19:16 "We're gonna flood the world with oil." And that's gonna take the price down the $30 a barrel and wipe out our new competitors; the more exotic fossil fuels: shale gas in the US, tar sands in Canada. "Guess what? They wiped them out- only took a year and a half.

19:31 Bankruptcies across the USA in the shale gas industry. And now tar sands in Canada. The pipeline's not happening. And do you hear anybody talking about energy independent right now? It's over! And, as soon as the bankruptcies complete themselves, the oil prices are now starting to go back up. But now we have failed states where there's oil production. We have failed States. So this is a volatile convulsive sunset over the next 40 to 50 years- an unstable world.

Where do we head from here?

20:32: Let me share an anecdote. When Angela Merkel become Chancellor of Germany, she asked me to come to Berlin, in the first couple of weeks of her new government, to help her address the question of how to grow the Germany economy on her watch. Now, remember: In terms of per capita, Germany is the most robust capitalist market economy in the world. When I got to Berlin, the first question I asked the new chancellor- I said, "Madam Chancellor how we are you gonna grow the German economy when your businesses are plugged in to a platform, an infrastructure of centralized telecommunication, fossil fuel nuclear power, internal combustion, road rail water, and air transport- and that infrastructure peaked in its productivity in Germany, years ago?

20:53 Let me talk about productivity. This is Crucial

The?Science of Productivity

21:04 Our economist are lamenting. They're asking, " Why is productivity been declining for 20 years? "We have all these new killer products coming out of Silicon Valley."?Why is productivity declining? I am gonna share with you a dirty little secret, in economics that economists don't like to talk about.

21:15 We used to believe that there are two factors that drive productivity in standard economic theory: Better machines and better performing workers. But when Robert Solow won the Nobel Prize for economic growth theory in the mid-1980s, he actually let the little secret out. He said, "we've got a problem here." When we trace every single year of the Industrial Revolution, these two factor- better machines, better workers ; it only accounts for about 14% of the productivity. So Robert Solow asked the big question: "Where does the other 86% of productivity come from?" Don't know...?

21:54 Moses Abramowitz, the former head of the American Economic Association said: "This is a measure of our ignorance in motion unless disrupted."

22:02 Now wouldn't you think economists would know where productivity comes from, because that's the basis of the discipline? Here's what they don't know...When classical economic theory was penned in the late seventeen hundreds, the Vogue was Newton's physics. Newton was the big guy in town. Everybody wanted to use Newton's metaphor, so they could be more scientific, because he has discovered the laws that run the universe- supposedly. The economists also fell in line. For example, you know Newton's Law: "For every action there's an equal and opposite reaction"; Adam Smith borrowed that metaphor for his invisible hand of supply and demand. "For every action on the supply side there's an equal and opposite reaction on the demand side."

22:42 Newton's law: "A body in motion stays in motion unless disrupted."

22:45 Baptiste Say borrowed that metaphor- the French economist. And he suggested that: "well supply will stimulate demand, which will generate supply, which will stimulate demand - unless disrupted."

22:55 All of our economic theory, if you go back and take a look at it- it's all based on Newton's metaphors in physics. There's only one problem with this: Newton's physics has absolutely nothing to do with economics. Nothing. Nothing....

23:14 Economics is governed by the same laws that govern the universe, the solar systems, the biosphere on Earth,?and every single thing you and I do in our economic life while we're here on this planet.

23:28 Here are the two laws that govern everything in the universe, including our economy. The first law of Energy says: "All the energy in the universe is constant." Since the Big Bang, no new energy has been created. No energy has been destroyed since the Big Bang.?That's the conservation law.

23: 45 The second law of energy says that's true that the energy isn't created or destroyed, but is always changes form, but only in one direction, from concentrated (The Big Bang) to dispersed through the galaxies. From hot to cooled off through the galaxies. From order to disorder...From available to unavailable...Entropy is a measure of the energy that's still there, but not available to do useful work. There are three systems that we can talk about in thermodynamics:

• An open system that exchanges matter and energy with the outside world;
• A closed system, which exchanges energy with the outside world, but does an exchange matter
• And an isolated system, which doesn't exchange matter or energy with the outside world.

24: 32 The Earth in relation to the solar system and sun is B. We get plenty of energy from the sun. We don't have to worry about this for billions of years.

24: 41 But in terms of the fixed matter on this planet, we don't have a lot of additional matter coming down here. We get a few meteorites a little cosmic dust, but whatever we have in terms of fixed matter (which is a form of energy); has been here since we blew off the Sun and cooled off. All of you have Smartphones on you right now and there are little granules of rare Earths in those phones. They've been here since the Earth has been here. That's a form of energy as a material form. So here's what economics is all about: We extract low entropy available energy in nature (a rare Earth, a metallic ore, a fossil fuel); we extract it and then, through our value chains, we store it, we ship it, we produce goods and services from it, we consume it, we recycle it back to nature. Those are value chains.

25: 29 At every step of conversion (when we take nature's resources and move it through society), at every step of conversion we have to embed energy into that good or service to get it to the next stage of what it becomes. But we lose some energy in the process of that conversion. This is called "aggregate efficiency" in economics.

25: 52 Aggregate efficiency is the ratio of the potential work?versus the actual useful work you actually embed in the good or service. Let me give you an example. Nature has the same economic conditions that we have in our human economy. If a lion chases down an antelope in the wild, then kills it, about 10-20% of the total energy that's in that antelope?gets embedded into the lion. The rest is heat lost in the conversion. That's the aggregate efficiency.

26: 24 What does this have to do with my conversation with the Chancellor of Germany? She's a physicist by background. So here's what I said to her.

26: 34 We started the 2nd Industrial Revolution in 1905 in the USA with 3% aggregate efficiency. At every conversion of nature's resources through the value chain, we lost about 97%, it didn't get into the product or service. By 1990, the US got up about 14% aggregate efficiency. That was our ceiling; nothing's changed since then. And I reported to the Chancellor that Germany got up to about 18.5% aggregate efficiency. That was their ceiling. Nothing is changed. Anybody wanna guess which country led the world in aggregate efficiency??Japan!?20% aggregate efficiency. 1990s, reached its ceiling.

27:21 What I'm saying to the Chancellor is this: "You can have market reforms, labour reforms, monetary reforms. You can create incentives for?killer new products. You can try to create a million Steve Jobs; it won't make a dam bit of difference. If your businesses are still plugged in to a 2nd Industrial Revolution Infrastructure you can't above the ceiling of 20% aggregate efficiency anywhere in the world."

27:48 Why is this important? A new generation of economists who happen to study physics have gone back and looked at the industrial record and they added a third factor to productivity: Better machines, better workers, aggregate efficiency. The ratio- yes, it's so obvious. The ratio of potential to useful work. When they put in that third factor, it accounts for much of the rest of productivity. HENRY FORD could have told you this. In fact every engineer could have told you this, every architect could have told you this. Every biologist could have told you this. Every chemist could have told you this. They all have to start their training in school by learning these two laws of energy that govern the universe.

28:28 I teach on the oldest Business School in the world. I taught the advanced management program at the Wharton School for 15 years. Not a single business school in the world, today, right now, requires that you learn about the 1st and end laws of thermodynamics, that govern economic activity. How shameful is this?...

28:47 So, in that first day with the Chancellor we discussed a 3rd Industrial Revolution: a new convergence of communication, energy and transportation to manage power and move Germany. At the end of the day, in a private session, the Chancellor said, "Mr. Rifkin, we will have this 3rd Industrial Revolution here in Germany.

29:15 Chapter 3: A new Smart Infrastructure

29:16 The communication Internet is now mature....It's been 25 years since, the World Wide Web. We have digitalized communication. Now this communication internet is converging with a nascent, digitalized renewable- energy internet.

29:42 Now both those Internets, are converging with a fledgling, automated, GPS and very soon driverless road, rail, water and air transport internet to create three Internets: Communication Internet; Renewable energy Internet and Automated Transportation- Logistic Internet. One super internet: to manage, power, and more economic life. These three internets ride on top of a platform called the "Internet of Things."

29: 56 We're embedding sensor in all of our devices, as you know, so they can monitor real-time activity and then talk to other machines and talk to us. So we have sensors now in the agricultural fields and they're actually monitoring the growth of crops, the soil salinity, the moisture in the crops, etc. They're sending that data. we have sensors now in the factories that are monitoring our economic data.?We have sensors in smart homes, monitoring how the energy is used in our buildings. We have sensors in smart vehicles, warehouses, smart roads. We have sensors in smart vehicles, warehouses, smart roads. All of them collecting data.

30:35 But where does that big data go? It goes to communication, energy, and transport Internets to manage, power, and move economic life. As this new system comes in, it's gonna be ubiquitous by 2030, connecting everything with everything with everyone.

30: 51 We are essentially creating an external prosthesis - a distributed nervous system- that's gonna allow everyone on this planet, at very low cost, to begin directly engaging each other on a global Internet of Things and bypassing a lot of the vertical integrated organization and the middlemen that kept us away from each other.

31: 17 We can have direct engagement now. This is the revolution. This evens the playing field. There's been a long discussion among the Millennials- You started this: Occupy movements. Saying, what about the 1%,? The 99% ?

31: 29: Now we have an new platform. The Internet of Things Platform is of a different nature than the platform in the 1st and the and Industrial Revolution. The new platform is really radical, because this 3rd Industrial Revolution platform is designed to be distributed, not centralized. It works best when it's collaborative, and open and transparent, rather than closed and proprietary.

31:57 And the benefits come when more and more people join the network and each of us contributes our talent, which benefits the network and then benefits us. It's designed to be laterally scaled not vertically integrated. And this is what moves us from the 1% of the 99% to?a vast expansion of social entrepreneurialism and global networks. That's the upside. On the other hand, how do we deal with network neutrality? How do we ensure that everyone has equal access to this new, Internet of Things platform, this 3rd Industrial Revolution??How do we make sure governments don't purloin thi platform for political purposes....- It's already beginning.

• How do we make sure that giant monopoly companies (some of them on the internet) don't use that data for their own commerical purposes at our expense?
• How do we ensure privacy when everyone's connected?
• How do we ensure data security when everyone's connected?
• How do we prevent cyber crime and cyber terrorism that could disrupt the system and take it down when everyone's connected?

33:06 This is the darknet... What I'm saying to you today is that darknet is as impressive as the opportunity of the bright net. I would say that the next three generations beginning with you, your children and grandchildren, you're gonna be heavily engaged in a new political movement; and that movement is going to be to ensure against the darknet prevailing and making sure that we all have equal access so that the human family can engage in a distributed nervous system and began to have a vast expansion of social entrepreneurialism. This is the political struggle that starts with the Millennials, your children, and grandchildren. This is an uphill battle, this is not a cakewalk. I am not a technological determinist and I am not a utopian. Technology just enables.. Then the question is how will that journey end... Its a big question mark right now...Let us assume for the sake of this afternoon, that we're gonna be able to deal with all the complexities of the darknet, and its a big challenge.

34:02 Here's what the internet of things platform provides. Let's say here at Brooklyn you're an SME small and medium-sized enterprise or cooperative, or non-profit. You can go up on this nascent Internet of Things platform that's already emerging. It's not Theoretical... and you can have a transparent picture of all the economic data flowing through the world if it stays network neutral. The power here is enormous. Do we think Snowden was a big deal? Now all the economic data is gonna be open to everyone, not just a few government secrets. But in a network-neutral world, you will be able to go up on this platform and have a completely transparent picture of all the data. You can go on the platform and cut your big data on your value chain out of the noise. Then you can mine your big data with analytics. Then you can create your own algorithms and apps it will allow you to dramatically increase your aggregate efficiency at every step of the conversion on your value chain and as you do that dramatically increase your productivity; dramatically reduce your ecological footprint and dramatically plunge your marginal cost. Some of these marginal costs are gonna get sold all they had to zero marginal cost. And when they hit near marginal cost it gives rise to a new economic system.

Chapter 4: Zero marginal cost and the Rise of the sharing economy

35: 28 In economic theory the optimum market is where you sell at marginal cost. The marginal cost is after fixed costs. Once you pay for whatever the technology is. The marginal cost is what it costs to produce a unit. Classical economic theory, we've always said that the most optimum market is where you sell at marginal cost. Here's the problem we never expected?a technology revolution "digital revolution" that would be so powerful in its potential productivity, they could actually reduce the marginal cost for some goods and services to near zero. Meaning there's no longer a profit margin and you can produce goods and services for each other beyond the market in the sharing economy for nearly free.

36: 05 This sharing economy didn't come out of the blue. Capitalism gave birth to the sharing economy.

36:10 Let me clear, as muddy as the sharing economy is, it's the first new economic system to enter onto the world's stage, since capitalism and socialism in the 19th century. It's a remarkable historical event. This is already happening. Zero marginal cost phenomena it's been how many years since Napster (the file-sharing service)? 17 years... Well, this little file-sharing service started a revolution.

36:33 We have 3 billion people right now on the internet - and now the -Internet of Things- who are actually producing and sharing virtual goods at near-zero marginal costs beyond the market, disrupting entire industries. We have young people that are producing their own music. And what does it cost to have a little technology, a little machine that allows you studio-quality music when you wanna record in your home? And then, whether you send that music to one person on the web or a billion - It's zero marginal costs. You just need a service provider to keep your power-up.

37: 08 I was surprised when that South Korean performance artist (Psy) a couple of years ago: A billion people went to his website. PSY- Gangnam Style Zero marginal cost ....

37: 17 We have millions of young people any given day, who are producing their own YouTube Videos. Take a little video, put it up on the web, A billion people can see it, Zero marginal cost. We have people producing their own news blogs and social media. New Zero marginal cost. We have millions of people contributing to Wikipedia and constructing the knowledge of the world on a non- profit website for free. This is the most improbable experiment I could ever imagine. I don't know how Jimmy Wales came up with this. I would have said, "This cannot succeed "

37: 55 Adam Smith said: "Each Individual pursues their own self-interest and never cares about the public good". But in pursuing their self-interest and not giving a damn about the public good...By pursuing their self-interest, society is better off. I always thought it was a little dubious but that's how we grew up. But apparently, none of the Millennials have read Adam Smith. Because, for example, in Wikipedia you're all freely giving your talent, putting things up on Wikipedia, constructing the knowledge of the world. You've democratized knowledge in less than 15 years and the accuracy is good...

38: 32 Book publishing ...What's happening, people are creating their own free eBooks. My new book came out on the Pirate Bays before we could publish in our languages and they were ranking it before Amazon could even touch it. We have 6 million college students taking massive online college courses taught by the best professors?at the best universities. They're getting college credits. It's free. You Millennials have won. Unless we outlaw all the technology,?we've got to find a way to live with it and find value with it. Entire industries have been disrupted in the 17 years since Napster. The music industry has shrunk. Television has declined because everyone's producing their own YouTube videos. You're all producers sharing with each other. Newspapers and magazines have gone out of business will social blogs. But thousand new enterprises have emerged. Not just Google, Facebook and Twitter, all of these are new, but thousands of start-up enterprises; profit and non-profit, they're creating the platforms, they're creating the apps, they're creating the connectivity, they're using the analytics and the data. It's a revolution! Well, we thought there'd be a firewall here. And certainly we could understand how zero marginal cost brought on by digitalization would affect the virtual world, ut we didn't think It would move over the firewall to physical world.

39: 51 What I'm saying, with zero marginal cost society is that firewall is broken now- it's called the Internet of Things, completely gone. We have millions of people now producing their own renewable energy, right now, at near zero marginal cost. Free! And now, as we move to car sharing, and as we move to driverless transportation, we're gonna see the marginal cost plunge toward near zero in transport logistics in the next 20 years. Let's go back to Germany. What's happened in the 10 years since that first conversation with the Chancellor? We are now in Germany at 32% of all electrical power in Germany now is solar and wind, right now. In ten years. And this is a northern country, it doesn't have a lot of Sun. We're gonna be 35% of the electricity, solar and wind, by 2020. We're gonna be 100% renewable energy by 2040. Absolutely!

40:48 What's interesting is the fixed cost of introducing the solar technology and the wind turbines and the geothermal heat pumps- solar and wind are on an exponential curve, just like computers! When I was a kid in the 1940s and 50s, there are only a few computers. They cost millions of dollars. And the chairman of IBM at the time said, "We probably will need a total of seven computers." Maybe seven...It was just an optimistic forecast. We did not anticipate exponential curves in computer chips. Moore's Law ...So all of a sudden, Intel figures out that their engineers are doubling the capacity on that chip every two years. This is still going on. So, even if you're making $2 (dollars) a day, everyone's going to be connected to the Internet of Things within less than 15 to 20 years. The cost- the fixed costs are gonna be as cheap as your cell phones in 20 years.

Everyone's gonna produce their own green electricity.

41: 44 Those exponential curves are not going away. You know how much as solar watt used to cost? $78 dollars to generate one watt solar in 1978.

You know how much It costs to generate one watt solar today? Not $78 dollars... 50 cents. It's gonna be 35 cents in 18 months from now.

42:02 This is really moving quickly. And this is what you're not told here in the United States by energy companies. We have power and utility companies- some of them in my group, Global Group - and they're quietly, right now, buying long-term 20-year contracts for solar and wind electricity in Europe and America, quietly right now, for 4 cents a kilowatt-hour. And the Berkeley National Labs, government labs just announced they're generating wind and solar- I think it's somewhere between 2.9 and 3.5 cents a kilowatt-hour. It's over actually for fossil fuel and nuclear. And the next big bubble -?I will tell you now- is gonna be the 100 trillion dollars in stranded assets in the fossil fuel industry. This is gonna make the subprime mortgage look like the small-time game. Because we're moving toward parity and then solar and wind are getting cheaper and cheaper. That's what's going on behind the scenes, right now.

42: 58 But what's interesting in Germany, one you pay your fixed cost for your solar panel and wind turbine.. The marginal cost of producing energy in Germany today? It's Zero.

43: 09 The Sun has not set us a bill in Germany. The wind hasn't invoiced us. The geothermal heat has not come to us with a bill. It's free! So what happens when German businesses can plug into a communication internet that then converges with an energy internet and we digitalize the electricity grid, so everyone can produce their own solar and wind, and either use it off-grid or sell it back to the grid? What happens when companies plug in to an energy internet where the cost of the energy is near zero marginal cost? Think about when they have to move across their value chain, and at each step of conversion on their value chain, their energy cost is near zero. How does any 2nd Industrial Revolution country compete with that? And it's not big Germany only - little Denmark's done this. Anybody can do this. Who's producing all the energy?

44: 05 In Germany, there are four major power companies: EnBW Energie Baden-Württemberg AG, or simply EnBW, RWE, E.On, and Vattenfall; these are giant, global, vertically integrated companies. And, frankly, we thought they were invincible. What's?happened to them in 10 years, is what happened to the music industry, television, newspapers, magazine, and book publishing. Thousand of small players have come together in electric cooperatives. Farmers, small businesses, neighborhood associations. All of them went to the banks and got loans - these electricity cooperatives and every bank were completely fine about giving them the loans. Why? Because they knew that the energy they generated would get a premium price when they sell it back to the market. Nobody was turned down. They're creating all the new energy. This is the power to the people - literally and figuratively- the power to the people. What happened to the big 4 power companies? They're producing less than 7% of the new power. And they acknowledge they're out of the game. Why? To their credit, they were the most efficient means to produce and distribute centralized power - fossil fuel and nuclear power, vertical integration. But the new energies..They require millions of small players connecting whether they are in collecting. You have to collect the Sun everywhere in little amounts. And the wind everywhere where you are. And the geothermal heat everywhere where it is. And we reward cooperatives who laterally scale and join together in networks.

45:34 Big companies can't put all these players together. The players come together in their own regions of cooperation, and they join together. It is the power to the people. Does this mean this is the end of the energy companies? Not necessarily. Many will go out of business. Some will not. About seven years ago, the E.ON - one of the giant four companies- they asked if I would debate their Chairman, Mr. Tyson, but in a neutral country, the Netherlands. We had a three-hour debate....And I said to him, "Look, you're not leaving the 2nd Industrial Revolution tomorrow morning. But you also have to be in the 3rd Industrial Revolution tomorrow morning,?because you have a 25, 30- year transition to get from the end to the 3rd and find new value. And I said in the new system, it operated quite differently than the old system.

In the new 3rd Industrial Revolution you make more money by selling less and less and less electricity.

45: 50 I said, what you do is, you set up partnerships with thousands of enterprises. And you help manage the energy flow through their value chains. You help them with their big data. You help them mine that big data with the analytics. You help them with their algorithms and apps. Dramatically increase their productivity. In return, those thousands of enterprises will share their gains back with the power companies. It's called "performance contracts. "We're now doing it, and guess what??Last year, the chairman of E.on - took him 7 years-they're moving to renewable energies and they want to help manage part of the energy internet with emergy services.

47:06 EDF, the great nuclear power in France has joined our group. We're doing the whole build-out of the 3rd Industrial Revolution in parts of Europe and in northern France, the Netherlands, Luxemburg...and EDF said, "we're with you". They're on the ground helping lay this out. They're not leaving nuclear tomorrow, but they see that the handwriting is on the wall. So the companies that don't go there; we don't need them. It's not just Europe; now China. When President?Xi came into power with Premier Li- Premier Li announced that he (and I was pleased he announced he'd read my book) "The Third Industrial Revolution". He put out a public announcement...I'd never met him. I never even been to China. And he instructed the central government of China to begin looking at these themes that I 'm laying out to you, to move China to a 3rd Industrial Revolution. There mindful in China. They lost the whole 1st Industrial Revolution. They missed almost all the 2nd Industrial Revolution and came it in the trail in the last 10 years. And they said, "We're not gonna lose the 3rd Industrial Revolution." We wanna collaborate with the 3rd Industrial Revolution. And they said, "Be among the leaders."

48:11 To show you how fast they move, I've been shuttling back and forth, but after the first visit (it was about eleven weeks later). The chairman of the State Grid Corporation (which is the largest electricity grid in the world) announced an $82 billion dollar four-year commitment to digitalize the Chinese grid so the millions of Chinese people could produce their own solar and wind in their local communities and share it back on an energy internet. That started this year, yeah. Watch Europe, Watch China.

48:37 The coming together of the communication Internet, with the renewable energy internet, gives rise to the automated, GPS, driverless, transportation logistics internet. We built the whole global economy in the 2nd Industrial revolution around car ownership. That's what this all about. You've thrown us a curve. you really have. Apparently you don't wanna own cars anymore.?This is Grandma and Grandpa. They got two cars sitting in the driveway cleaning and waxing them every few weeks, and they've never used it. Or they're at the office 90% of the day never used. You don't wanna own cars. you want access to mobility and car-sharing networks, not ownership?of cars in markets, correct? So there's a problem here...

49: 21 The problem is for every car shared in car sharing, in the sharing economy, we're eliminating 15 cars. This is both the problem and the opportunity. Larry Burns was the former VP of General Motors until a few years ago, now he's a professor at the University of Michigan. So Larry just did a study...very revealing. He studied at Ann Arbor, in Michigan. He said: We can eliminate 80% of vehicles with better mobility, cheaper. Now let's extrapolate Larry's study. We've got a billion cars, buses, and trucks choking us in traffic around the world. The 3rd major cause of global warming emissions. The number 1 cause of global warming emissions is buildings. But in Europe, we're now retrofitting those buildings, transforming into micro power plants and big data centers off carbon.

50:21 Does anybody know what is the number 2 cause of climate change? Global warming emissions are through industrial activity...Number 1 is buildings- we always talk about it. Number 3 is: Transport. What's number 2? Consumption of meat- Meat, Meat, meat.....

50:37 We have 1.3 billion cows. They take up about 23% of the landmass of the Earth. I love cows, but the methane they produce is a major contributor to global warming (much more powerful than CO2) and then... when we pasture those animals, we have the fertilizers that emit nitrous oxide. And it goes on and on. And I should say that (without mentioning names) even some of the prophetic voices in the climate change debate will never mention this.

51:00 Because they do not want to antagonize people and even suggest that we may wanna change our diet and move down the food chain so that we can live healthily, respect our fellow creatures, and at the same time mitigate climate change. So, you never hear this in the debate. Never! Number 3 is : Transport. So, if Larry Burns is right: "we're gonna eliminate probably 80% of the vehicles in the world in the next two generations, because the Millennials, your children, and grandchildren are never going to own cars again." This I know...

51:33 The remaining 200 million vehicles...They're gonna be electric. They're gonna be fuel-cell driven. They're gonna be operated by new zero marginal cost renewable energy. This is already happening. They're gonna be 3D printed, with composite recycled materials at low marginal cost. They're gonna be driverless. This is already happening. This gets to the question of, "is this the end of the world for transportation companies?" Not necessarily. But they have to change their business model while they're still in the 2nd Industrial Revolution, selling cars, buses, and trucks. They have to move to the 3rd Industrial Revolution, where they help manage vast networks along with all the other players. This is a very cool thing that happened about six (x) weeks ago. Daimler asked me to join them (Daimler invented the internal combustion engine. So I'm always mindful they're a step ahead)... And the chairman of Daimler Trucks brought together 350 journalists from around the world in Germany, asked me to come in...I laid out the same story we're talking about here. And then the chairman of Daimler Trucks - he's one of the eight board of directors. He announced that Daimler is in new business. And that is logistics, on the transportation Internet.He announced that Daimler has equipped, in the last three years, 300,000 trucks full of sensors. 300,000 vehicles and they're on the roads now. These are what I call "big data," "mobile big data centers."

52: 59 These Daimler trucks are collecting data all across the transport corridors of Europe, on traffic flows, weather conditions, availability of warehouses... All of the data you would need if you're a small business, a large business, or just a homeowner, to be able to increase your aggregate efficiencies and productivity, reduce your ecological footprint, and any time you're involved in moving shipments from A to B. He dimes the lights and they went to a helicopter feed, live on the German Expressway.

53:33 This gets interesting. They went to a helicopter feet fly (live) on the German Expressway. And the helicopter zooms in on these three trucks on the German Expressway, and then they went right into the cab of the trucks, and the drivers are waving and talking to everybody in the rooms. And the chairman of Daimler Trucks said, " Okay, gentlemen. Take your hands off the wheel. Take your feet off the pedals. All of a sudden, the drivers became software analysts. No longer drivers. They were software analysts monitoring the data. The trucks then started to platoon together, automated, into mobile data, almost a train going down the highways, collecting data. So they're providing the data, and then the analytics so that you will have apps, to increase your aggregate efficiency and be a player in the system. Smart...

Chapter 5 : Financing the Transition

54:27 How do we finance this? How do we pay for this? We are laying out a plan in Europe called Digital Europe - Smart Europe. And working with the European Commission, we're building this out over the next 10 years. But the big question is, "How do we pay for the infrastructure, region after region across all of Europe to connect us in a digital world. Where we can begin to enjoy the new opportunities?

54:48 So the question came up in Brussels and I said, "We've got all the money we need." The problem's not the money; it's what we're doing with the money."

55:02 I'll give you an example- In America, it is the same situation. In Europe, we spent 741 billion equivalent US dollars on infrastructure in 2012. One year alone. That's just a bad recession year, typical. The problem is what we spent it on. We spent the money on an old 2nd industrial revolution platform. Remember what I said to Chancellor Merkel? ...and we picked in the productivity; 20 years ago at 20% ceiling and we can't get anything more out of it. We're stalled...which stalls the economy, stalls the smart start-ups, stalls the entrepreneurial expansion. So I said, if we simply reprioritize our investments, spend some of it patching up the old infrastructure - we don't want it to collapse- but we prioritize, so part of those funds each year go to each region so that they can begin to build out and scale up a 3rd Industrial Revolution Infrastructure; with an Internet of Things Platform, we will be there in 30 years. This year, we reprioritized our funding at the EU and beginning in January of next year, regions across the EU will secure EU funding, leverage against private equity, and each region will customize and build-out, like WI-FI, their plan and then connect up region to region to region. We call it "Digital Europe". We have a similar plan called "China Internet Plus" across the regions of China.

Where's the US here?

Chapter Six: Two generations of Mass employment

56: 30 The coming together of this revolution will involve every industry: telecom, cable, ICT, Consumer electronics, transport, logistics, construction, and real estate- (all the retrofitting), all the industries are involved. And it means work... What I am suggesting here. What I'm suggesting here is that we have one last surge of massive employment involving semi-skilled, unskilled professionals, and conceptual labor. We have to build out this smart infrastructure. Robots aren't gonna do this. We have to take the entire energy complex of the United States. Think of all the infrastructure and all the technology, all those stranded assets. We have to convert all of that infrastructure from fossil fuel, nuclear to distributed renewable energy.?

57: 20 We have to retrofit every building in the USA. That's what we're gonna do in Europe. Because you can't install renewable technologies until the buildings are efficient. That means huge jobs for energy service companies and for the construction and real estate industry.

57:37 Robots won't put in the insulation, and the new windows, and the doors. And then we have to install all the renewable energy technology.?Human beings have to install that technology and all the smart technologies that monitor the equipment and put in the digital advanced meters. We have to take the entire electricity grid of the USA (which is dumb), its servomechanical, embarrassing - it's 60 years old; barely functions.

58:05 We have to take the entire transportation grid to smart digital so that we can manage these three internet's; this is gonna require professional talent and unskilled and skilled labor for two generations. We have to take the entire transportation grid of the USA and turn it from the dump to smart, road, rail, water, and air.

58:27 Who's going to install the thousands of charging stations in all the buildings? Fuel cell outlets? Smart sensors? This Requires human beings. This means two generations of work, and guess what? It's financed by the payback of the energy savings. You don't have to have huge government involvement here. You simply have to have the enablement; so energy services companies can be set up, and we transform every building in the USA to a node. These nodes then connect, and they are the big data centers. They are the micro powers plants. They are the transport hubs with electric charging stations. The nodes connect like WI-FI and all those nodes, those building, homes, offices, and factories- that's your Internet of Things. That's a huge job for the construction industry?and you can pay back the energy savings. You can't default on the loans. But technology doesn't do it alone. We have to change consciousness.

59:20 I'm only guardedly hopeful. You know, I'm not naive; I'm guardedly hopeful... I think that what I've said is really a tough challenge. But I'm guardedly hopeful because human beings are the most social creature on this planet. When we get the story right, we move quickly. I am always amazed when I fly and I see electricity?grids across continents and highways and urban centers. And I think, That was all done in 50, 60 years?" It's amazing. When we get the story, we move quickly. We're a very social creature.

59: 53 The coming together, these three Internet's - communication, energy and transport internet on top of an Internet of Things platform...It changes the way we think about life....

Chapter 7: A new consciousness for a New Era

1:00:07 Let me give you the best example. We've got millennial parents that are sharing toys on these millennial websites where you go up and you pay a subscription fee one time and you're in the system then you can get a toy and kind of toy you want and by age category and give it to your child. This is creating a real revolution. The parent traditionally brings home a toy and they say to the daughter this is not Christmas Santa. Santa Claus didn't get you this toy. We bought this toy at a store and we're giving this toy to you. This is your property. This is not your brother's toy and this is not your sister's toy, this is your toy. you need to take responsibility for it and take care of it. what did mum and dad just say to me? The first thing I caught is this isn't my brother and sister's toy; that's pretty relevant...

1:00:54 Now status, power, negotiability; I'll never let my siblings ever use this unless they pay the price. They're learning possession of property and markets, there's nothing wrong with that...; but now I'm these toys sharing websites parents are bringing home these toys and pretty soon you're gonna come in a driverless drone at near-zero marginal cost now the parents give me this toy and saying another little child played with this toy and she has a lot of fun with it...and she really took good care of it, because she knew that one day you'd want to play with the toy; and we hope you take good care of it because one day another child wants to play with a toy.

1:31:30 What the child is learning now is these toys not a possession, it's not status, it's not power, it's not negotiable, it's simply access to experience for a moment of time than other child gets to use. They're learning how to be part of a circular economy where we distributed things in the sharing economy, over and over, and over; nothing goes to the landfill.

1:01:50 I like a system where you have both opportunities, there's nothing wrong with the property, there's nothing wrong with having possessions and some status;...but it's also nice to have another option, where part of the life is being able to access experience in time and then share it with someone else.

1:02:07 I don't think capitalism is gonna disappear but I think it's gonna find value by creating a relationship so that it finds value with the child that gave birth to the sharing economy; and right here in this room, you are already in two economic systems day to day right here, in Brooklyn...Part of the day you're in the market your sellers , your buyers your owners, your workers, you're producing goods and services for each other for a profit and in the marketplace and you have a property; But part of the day you're in the sharing economy; you're sharing virtual goods, entertainment, news, social blogs, Wikipedia and now energy and car sharing; and while it has capitalist parts to it, it's also a sharing economy where you can reduce the cost and by 2050 we will have two mature systems, part of the day capitalists markets (with a profit margin producing and selling to each other) part of the day in the sharing economy (beyond the market), freely producing goods and services for each other. That's already started. That is not gonna go away.

1:03:02 Your generation is moving from ownership to access, from markets to networks, from consumerism to sustainability, from market capital to social capital. Does this all sound familiar? It's a revolution. None of this is being taught in the schools, by the way. That's why this is really a revolution.

1:03:26 There are three things that I've noticed that give me some guarded hope. There's a basic change going on with you people in this room. It's strange to older people. There's a change in the way you define freedom. The way you define power. And the way you define the community. These changes really suggest the real revolution. For my generation (and generations before me), freedom was very simple, since the Enlightenment. To be free in an enlightenment perspective is to be an autonomous agent, to be self - sufficient, to be independent, to be not beholden to others, to be an island to oneself, so one can then can have freedom as exclusivity. For the millennial generation that grew up on internet autonomy is death. Being an island to oneself its death. Because of your generation, you asked the question of how can I flourish to the full extent of my possibilities here on the planet. It's clear that your answer to that is: I flourish to the extent that I'm embedded and network after network, after the network community. After community after community, I can share my talents and those talents can benefit and come back to benefit myself. I am free because I have access and for your freedom is not exclusivity. It's not being an autonomous agent, its inclusivity: access to others in networks. Do I have this right? This is very alien to our generation. We may have to change all the constitution in the world. This is a completely different idea about freedom. You have a different sensibility about power, which makes the older generation very nervous. We essentially believe that power always has to be a pyramid, it goes from the top down. There's no other way to define power, is a pyramid, from the one to the many. But young people that grow up in the internet is strange... because you grew up that power has to do with the networks you're engaged in. For your power is not vertical, its lateral. For you, power is being meshed in the network after network where you benefit each other.

1:05:42 Open source... This is so strange to our older generation. We do not have this notion of power. It makes no sense to us, actually ut it makes total sense to you.

1:05:43 Finally, I think most importantly, we're seeing a change in the way a younger generation perceives identity to the community. I grew up in a post-Westphalian world, the nation-state; we were very clear on the community. That is, each individual is born to be an autonomous agent and we're each sovereign. Each of us as a sovereign to ourselves. And each of us as a sovereign to ourselves, we compete with other sovereign individuals, in the marketplace, for scarce resources, in a zero-sum game. Our nations represent us because they are sovereign. And all represent all the millions of individual citizens, who are sovereigns against other nations. Each nation then competes with every other nation for scarce resources in the marketplace of the battlefield in a zero-sum game. That's the post-Westphalia nation-state world.

1:06: 34 Here's my question: Does anyone here believe?that we're gonna be able to address climate change and bring the human family together and take responsibility for our fellow creatures in the Earth we live in with that worldview? Anybody? ...

1:06: 51 What we're beginning to see with Millennials (and I don't wanna overstretched this), but I'm beginning to sense a shift from geopolitics to biosphere consciousness. Just beginning to see it. I hope it doesn't go away, I don't think it will.

1:07: 10 The biosphere is that 19km from the stratosphere to the ocean, where all life and all chemicals on the planet interact to maintain the ecosystems; the biology of the Earth. We're getting 14 years olds coming home with biosphere consciousness. They're becoming the biosphere police. We got young people coming home and saying to their father...Why are you using so much water here while you're shaving? Can't we turn it off once in a while? We're wasting the water. Why is the little red light on the TV? We haven't been in that room for three weeks! Wasting electricity...Why are there two cars in the driveway? Why cant we at least car share one?

1:08:16 They are saying to their parents. It brings a smile to me. We actually have young people coming home and at dinner time, they're asking their parents where the hamburger came from on the table....Yes, I'm sure some of you have this experience. Did that hamburger come from a rainforest? Did they have to destroy the trees for four little inches of topsoil which only gives you three years of grazing, so that that cow could become my hamburger?

10:08:25 When those trees are destroyed for the topsoil to graze the cow for the hamburger, (the high school kids); they are smart enough to understand that those trees harbor rare species of plant and animal life that only live in those canopies, they go extinct. And they connect the dots... if the trees disappear, for the soil to graze the cow for the hamburger, those trees are not there to absorb CO2 from industrial emissions.... and that means the temperature the planet goes up... So then, a mother cannot feed her children if she's on the farm, because she's getting spring floods, summer droughts, and wildfires because of the hamburger.

1:09:08 These kids are learning ecological footprint (Junior High school.) and they are coming home... and they're beginning to understand that everything each of us does...all day long (even when we are sleeping), intimately affects some other human being, some other creature, and the planet we live in. This is so alien to the way your previous generations grew up.

1:09:30 You're beginning to connect the dots and say, we live in an indivisible biosphere community, there's no escape. This isn't just academic, our well-being depends on the whole system and that all the creatures in it. We have young people who are beginning to extend their empathic concern to the rest of the human family because you're all skyping on global classrooms. Heck- a billion of you on Facebook. That's the largest fictional family in history!

1:09:51 What's promising to me is that part of this generation is also beginning to empathize with our fellow creatures. Not just the polar bears and the penguins on the poles, but all of our fellow creatures. I got to tell you, my wife and I are into animal rights and animal protection. Our fellow creatures have a right to be here. We do not have a right to end existence for them. This is their planet as well as our planet.

1:10:15 So I think we're beginning to see a shift the notion of freedom. How we perceive power, our sense of community. We're heading to a biosphere frame.?This is all good. Let me be clear on why I've been doing this work. I'm terrified about climate change. I began working on energy issues..t was in 1973. And wrote a book, "Entropy on Climate Change", in 1980. I thought we had more time. I did not anticipate the feedback loops. We couldn't see them until they came, and then each feedback decreased ten more on an exponential curve. And we just didn't see it.We thought linearly. Now we're scared. I'm gonna tell you, we are really scared. Cause now we're in a runway exponential curve on the water cycles. We didn't see it. The fortunate thing is, we now have a new infrastructure paradigm - a 3rd Industrial Revolution. That can allow us to move off carbon quickly, in three decades. We have the technology that allows us to do this, because zero marginal cost is the ultimate metric for reducing the ecological footprint. If people equipped with a little technology are constantly finding new analytics and apps to increase their aggregate efficiency at whatever value chain they're in. It means we're using less of the Earth and getting more out of it. In other words, more of the energy and materials get into the product, less is lost. Then, if what we do produce is share...share the cars, share the homes, share the toys..we're distributing a circular economy over and over again. Nothing needs to go to landfill.

1:11:46 Every resource is always there for us. If we move to the energy internet, there's no reason why everyone on this planet shouldn't be producing their own green electricity, right where they are at least low cost in 25 years from now, on this exponential curve, and sharing across continental energy internets.

1:12:04 If we go to a car sharing, driverless transport grid, we can eliminate 80% of those vehicles that have taken a big hunk of the Earth to put online. This is a plan and what we've done( a lot of business are working with us around the world on this); We say to people : "if you have another plan, step forward and tell us what it might be to address climate change and move the economy." And I always get silence.. because the only other plan is to stay where we are and that's taking us to an economic crisis and an environmental abyss...

1:12:38 Here's what I'd like to do... I'm gonna turn it over to you... Let's think about your sensibility and find out if we can come to some common ground on how we can begin to move this from this little room out to all the largest communities and networks we're in. Is that a deal?

Who wants to start?

Questions and answers from the audience (video)

Q: Technological employment: What is your take on that?

A: We are moving to an automated world. There's no doubt about it. However, as I said during the talk, we've got two generations of massive employment, that's clear, to lay out this infrastructure. That's gonna require millions and millions of jobs. We know this on the ground as we're laying this out in Europe right now. It's a huge amount of jobs.

Robots can't do it, Artificial intelligence cant do it. This is an infrastructure shift. However, as this smart digital economy and society move in, it can be run by very small supervisory workforces.

It can be run by very small supervisory workforces with analytics, big data, algorithms, and apps- that's why we call it "smart world", "smart society", "smart economy." Then, what we can do once we have the smart society in and it's automated, running by analytics? We're not gonna pay people just to do anything. We already know where employment is going.

And that is, as we continue to automate the market economy, employment is shifting to the non-profit social economy and the sharing economy - we already know that. the non-profit sector is the fastest-growing employment sector right now in the world. It's about 9.5, 10% of the American employment- paid employments and non-profit. Why is it heading there? because, is the social economy, the non-profit economy, and large sections of the sharing economy, social capital is an important as market capital. And, in this realm- the non-profit realm, the social economy, the sharing economy it requires human beings engaged with other human beings.

Machines aren't only supplemental. We will never have a robot raising a child and interacting with them in a childcare center. raising a child and interacting with them in a childcare center. They may bring lunch to the kid- the robot- but its gonna require human beings working with those children. whether its in parts of healthcare and the knowledge industries in cultural areas, humans with humans. the only other question is, how does this sector survive financially?

Johns Hopkins University does a study of non-profits in 40 countries every few years. And guess what they found: Over half the income for non-profits which are one of the biggest employers now, comes with fees for services. If you're doing health research, you set up a health clinic. You get fees for services and then you can continue to do your non-profit research. If we get any of this transition right, we automate the market, we move to social capital where we can use our minds much more expansively, so we can learn to live as a human family and steward each steward our fellow creatures, steward the Earth. That's a much more noble mission.

Q: Statement from the audience: I believe that in order to create a better tomorrow, we also need to look at rehabilitating our psychology.

A: Yeah, I'm in agreement with you. You know, and I have to say our academic disciplines, - I'm gonna step on more toes. The academic disciplines in our school systems are so moribund. It's dysfunctional. Peer-to-peer education...We have an internet generation that lives one way of life in terms of their mind outside the classroom, and others inside the classroom.

In the classroom, for example, when we think about education, the first thing we realize is the classroom looks a little bit like a factory.

.............................The End...............................

Thank you, by Mirela Xhota!

27.07.2019

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