Good evening everyone i am president and ceo we are happy you are here tonight we have a very special event and we officially kicked off the foundation for entrepreneurship earlier this year to be possible by the dedication of the generosity of the foundation to provide the next generation of entrepreneurs of mentorship and guidance through a variety of fields and programming geared towards programming a deeper understanding of innovation and entrepreneurship. This Initiative Includes the entrepreneur in Residence Program that provides workshop and a public Speaker Series recognizes entrepreneurs like nancy are students and team members are given the tools to succeed is really at the core of our mission and this helps us to connect these entrepreneurs with professionals to help inspire those on their journey some of our team members are here this morning and fortunately sheridan cannot be here with us tonight we are thrilled to include him as part of the Initiative Initiative and is best known as the cofounder and chief which is a software and it Consulting Firm and it is the inspiration of the business that he runs with the influence on culture of every infectious personality before we interview our speaker but nancy was featured on season two and already in season six i dont know if you remember back that far but this is pretty cool to watch because its been four years and we made a lot of progress. There is no i in team. It takes a village. It seems to be tossed around a lot these days in the last two years and to help launch innovators. The online social fundraising the fundraising to use Online Fundraising platforms and then becomes visible to people worldwide and anyone can get support. Without question the most wellknown are kick starter and indeed go go. In new york i met up with the founder of kick starter starting the company in 2009 since then more than 2 billion for 100,000 projects. After launching and said if you give me five dollars i will draw you a picture and then there was 35. Since then there are rules about what can be on kick starter they cannot pay for their rent or buy groceries this is for people making something new. Confidence in june to kickstart future startups. That is pretty cool being a nonprofit that is cool to have something fun we are so happy to have nancy with us tonight the first book this could be our future manifesto and to be available to purchase signing copies. Thank you to Nancy Strickler cap [applause] thanks for being so kind and welcome today. What an amazing place. Would like to start by asking you to picture your commute to work you walk out of your house write a bike, 30 minutes to one hour later you get to the office. Now think back what stores do you see on the righthand side of the road cracks we live in a residential area on the right hand side you will see coffee shops and banks and gas stations on the way to work the things that you need in the morning from the office back to neighborhood on the righthand side you will see restaurants and Shopping Centers and Grocery Stores and the things you need after work that is called the no left turn rule. It is very simple its way easier to turn right to they are left if you turn left its oncoming traffic it is more dangerous to go as the default the no left turn rule is structured even Shopping Centers in her neighborhood. But what we call a hidden default the way the choices are made without us being aware. This sounds like a bad thing but it doesnt have to be. One example is Organ Donation rates. And without the afterlife in reality what kind of form you have to fill out almost everybody chooses to donate their organs if you have to manually decide very few people do it and we tend to go along with the default whatever that happens to be. It has never been less than 70 or 80 percent reelected every year. If you show the Approval Rating over the same time it has gone down. When 11 percent of Approval Rating but those number one members were reelected we go along with the default whatever it happens to be. A 15 minute walk of the same corner. As someone who lived in the neighborhood i was so confused was there a virus infecting storefronts overnight turning them into banks . How does this make sense . Added up researching this to discover this is not just happening to my neighborhood, across all of new york city a number of Bank Branches skyrocketed in the 2000 and 2000 teens. Up 1000 Bank Branches in 10 years. So the atm as if it were never invented. I realize when i saw every one of these Bank Branches it wasnt just the bank i was seeing i was also seeing what had once been a small business. New yorkers serving fellow new yorkers. Those places were being pushed away because of change. Today in new york city theres almost as many subway stations as there are subway restaurants. After there being no chains in new york up until the 1990s the city had been remade by them in the Lower Eastside now has the highest concentration of chain stores and the whole city. This is not just an urban story, the growth in chains has happened in suburbia suburban areas or rural areas like ran from. Walmart bigbox stores push smaller businesses out because they cant compete with Selection Convenience or prices they offer. But while this has been happening we been told a story about this being this glory age of entrepreneurship everyone is disrupting or being disrupted but if you actually look at the data it isnt true. Since 1977 the entrepreneurship rate in america adjusted per capita has dropped in half. The same decline as the decline in smoking rates over the same time span. If you think about how many more people used to smoke in the 1970s then today come out similarly greater proportion of people used to be on to paris. Used to start their own businesses. Now they dont, they cant because they are blocked out by bigger competitors. The default, the while this is happening is that he same hidden default making every movie thats sequel or remake of something made before. This is something we are imagining. You can actually chart out the number of movie prequel sequels and remix by year and you can see on the left side of the wrap it was hollywood was telling new stories in the past 30 years as one hollywood realized it was way more profitable to retell a story it already told before. Over the last five years the top 10 movies in the back box office every year are remix of something thats been made before. The past summer the center foxs work filled with nothing but sequels. Nothing but movies that had already run in the past. The same reason why this is happening is the same reason why taylor swift is on the cover of every magazine. At hidden default i call financial methylation. ai should believe that rational choice in any decision is whichever option makes the most money. This is the hidden default setting thats running our world. I can imagine that you might think, is this really a new thing . Isnt this just what capitalism is . In 1776 adam awrote in a well adaptation is not from the benevolence of the bush and that we expect to be fed but for the regards of their own self interest. He was saying a world where people were trusted to look out for what was best for them could function and even be a preferable way to operate things. On this front hes absolutely right. But adam smith did not go on to say that that busher must maximize their hogs lottery lower Safety Standards to a minimum and pay workers as little as possible to redistribute those profits to investors and said. Thats a Standard Operating Procedure for businesses today. We can pinpoint the moment when it happened when the switch began the end of the 1960s the United States were admired in the aba National Conversation that said young men are sacrificing their lives in vietnam their families are sacrificing on their behalf, what should companies be doing for the greater good . What kind of social responsibility they have . Into this debate stepped up very influential economist named Milton Friedman and he wrote an essay in the New York Times in 1970 said the idea that businesses have social responsibility putting in skeptical quote marks 23 times in the essay the idea that businesses have any social responsibility is absurd. Only people can have responsibility businesses arent people and furthermore, businesses already have a goal they have to fulfill. Thats to make as much money for their shareholders as possible. This today sounds like a very normal way of thinking but this is the new idea New York Times was presenting it as a big name making a new argument. Friedman was saying that businesses core constituency wasnt there police, wasnt the customers, wasnt the community that surrounded them it was the investors the people that put up the money. Once the switch happened the way business operated began to change. From 1948 to 1973 in the United States the wages of the average American Worker grew by more than 90 and the lowest paid worker that got the biggest raises of all. Starting in 1973 this change. Even though the productivity of workers continue to go up in the same rate they are paid did not. Since 1973 and justice for inflation the average American Workers pay has gone by about 10 this means that the high point for pay for the American Worker for the productivity was 1973 the same year pink floyd dark side of the moon came out. That was a long time ago. You might add, if workers had only got 10 raise in 50 years how did i world even function. That doesnt seem to add up. This is the crazy thing. At the same moment families stop getting raises, and new savior appeared call the credit card. Up until the end of the 1960s there were zero Credit Card Debt in america. It just wasnt how things were done. People got paid well enough to sustain their lifestyles. Once the pay raises stopped, people started turning to plastic instead. You can actually grab our Credit Card Debt by year and he could see a missing gap of pay it got turned into debt. Workers stop getting raises and started getting credit cards instead. If you think of this from people who have money on the top this makes perfect sense. Why give people raises when you can make them borrow the money with interest. Its the more financially maximizing choice. Thats what will grow the capital base over time. And now American Workers are trapped in 1 trillion of debt and without real raises in a long time. My favorite place where you can see the switch to financial mathematics nation comes in a study that ucla has been doing for 50 years. Im sorry, let me start that over, when i picture their macro effects of whats happening here, the change in pay theres an image that comes to my mind im sure the same energy were all thinking about it is of course the mullet. The mullet was the pinnacle of 80s here technology. Business in the front, party in the back. Modularity everything you need. What we are living through now is the mullen economy, for workers for 90 of people its business in front with decades of wage freezes, layoffs, more job insecurities and workers that have decades but for the top 1 to 10 it is a party in the back with stock buybacks, ceo bonuses and the same time the marriage average American Workers pay is 10 , the average american executive pay has grown a thousand percent. This gap in inequality thats happened over the last 40 years, this is the mullet. One groups earnings get caught in another group has a long luscious mullet growing down the back. Another place you can see the evidence of this switch to financial maximization comes in a study ucla has been doing the past 50 years. Students are given about 15 different choices to either say essential, very important, kind of important or nonessential. Theres one of these questions that has to do with money being very well off financially. In 1970 the percentage of Incoming College freshmen who said being rich was essential or very important which is 28 percent just 28 percent of students said it was essential or very important. Number one afor students that year was develop meaningful philosophy on life. 86 percent of College Freshmen said it was essential or very important. The last year of the survey came out 2017 the percentage of Incoming College freshmen said being rich was essential or very important, 82 percent. The present as you say developing meaningful philosophy on life about 40 . But we can see what happens in 1970, 86 percent of students were looking for their meaning and today the same number of students know what their meaning is its to be rich. I dont think this is an example of millennial selfishness or grieve, i think there being practical. Right now in america, 43 percent of people cant afford their bills every month. A lot of these are college graduates. Of all the student debt outstanding, about half as delinquent or in forbearance. College students graduating now are merely trapped by the mullet economy. The cost of college increase 19 times since 1970 wages have grown by 10 . They are leaving school with massive amounts of debt. Of course they want to be wealthy its the only way they can imagine escaping where they are. If you look at business practice you can see the kind of mentality of our age look at the language on these covers, on the world, be paranoid, go to war for talent, this is not language about making a great product or building a great a this is language of violence and conquest and war. This is language that is teaching us how to play the game, the goal is it to cooperate, its to win. Its to take down somebody else. I was ceo of kick starter i remember standing in the checkout line at the Grocery Store when this magazine caught my eye. As a ceo you are never not worrying. You go to sleep to dream new things to worry about. Youre just constantly anxious about everything. Still when i saw this magazine cover and this language, be paranoid, go to war, disrupt yourself, i thought maybe thats my problem. Maybe im not paranoid enough. But this magazine, cofounder of a Successful Company about this magazine because it spoke to the fear that i had in me that i was wrong that this would tell me the answers. This magazine sat on my pocket abcoffee table for several days before had the guts to open it. You have to be ready for Something Like this. In the end the article was an essay by two consultants about how to increase profit margin. Just the same old story. This language touch this nerve that told me that what i was doing, how i thought about the world was all wrong and i needed to be like Something Like this instead. When i picture what financial a looks like thursday a symbol that comes to mind, like what and Silicon Valley is called the hockey stick graph. A chart where whatever your selfinterest is, units sold its going so fast the wind slows up into the right. This we think is the pinnacle of making it. But when you really look at this graph you can see that its actually just a smalls life a much Bigger Picture because the measuring time it keeps going from now into the future. From representing our self interest also keeps growing from me to us. The difference between single and having a family is enormous. Even solo and entrepreneur changes how you think. We can actually mark off four different spaces of our self interest we should really be thinking about. Its not just this now me space at the bottom lefthand corner with a hockey stat graph lives. What we want and need right now what i want is also future needs, the older gray or wrinkle version of myself that wants to live the life of the obituary that i wish to have. It is also in the top left, now us, to give that to people who i rely on and who rely on me. My family my friends my coworkers my neighbors. Finally, in the top right theres future us. Our children and everybody elses children too. Every decision we make impacts all of these bases we have footprints everywhere. All of these bases are in our rational self interest but today we believe only this now me space were hockey stick graphs are real this is the space where financial whats interesting about a bento boxes has a number of compartments which lets you carry a variety of dishes. The bento always offers balanced meal not too much of any one thing. The bento also honors japanese dieting philosophy which says the goal of the meal is to be 80 full, that way you are still hungry for tomorrow. I want to show you how the bento works. To do that i want to talk about the movie pulp fiction. In pulp fiction bruce willis plays an aging boxer named butch. He has one last fight in him which he juries to throw to the mob. At the last second bush doesnt do it he wins the fight, jumps up out the window and escape to a hotel room where his lever is waiting for him. The just about to go on the run when bush discovers they forgot to pack his gold watch. Not just any gold watch, his dad war hero fathers gold watch. The same gold watch that Christopher Watkins memorably describes hiding in a very uncomfortable place early in the movie. Despite the fact that gangsters are almost certainly waiting for him at his house butch decides to go back and get it. The question i want to ask, and from their experiences as he later says the single weirdest day of his life but the question i like to ask is, would butchs decision rational . Asking whether something in it will be as rational a