Drops the material off, goes back into the mine. The truck does 24 7 minus maintenance and filling it up with diesel fuel. Different world. The armys actually in oshkosh, wisconsin, working with a manufacturer to design army trucks that would be selfof driving because then if you have a roadside bomb, you dont hurt anybody. And its just one more effort to try to figure out how can we risk fewer americans on the battlefield. But these things are coming down the road. On energy, of course, with the breakthrough in hydraulic temporarying and in horizontal drilling, you take a place like north dakota which went from 800 Million Barrels of reserve in 2002 to over 24 billion today and rising. North dakota has such a high employment rate, wages have gone up 50 in the last eight years. And mcdonalds now pays a bonus if you will sign up to work. Now, that actually should be the conservative answer to income inequality. We would like everybody to rise up. Were not in the business of tearing down. But we should be in the business of helping every person rise up. And north dakotas a pretty good case study. And if the federal government were actually encouraging it, we would be astonished how many additional jobs youd be creating right now. We will, we are this year the largest gas producer in the world, by 2015 well be the Largest Oil Producer in the world. Thats an enormous shift of power away from russia and the middle east, and it increases our National Security but also creates hundreds of thousands of new jobs. Natural gas today is three times as expensive in china as it is in the United States. And that just effects all of our manufacturing costs. You just see all sorts of ripple effects that are pretty remarkable. Theres a system called Regenerative Medicine which is almost like science fiction. Regenerative medicine is when they take your cells and they grow a large number of them. And they then take 3d printing in the most recent version, and they print out the organ you need. So if you need a kidney, they can print out a kidney. If you need a heart, they can print out a heart. The texas Regenerative Medicine institute is headed by a woman doctor whose specialty is growing hearts. And youll see in a few years remember the young lady who had a hard time getting a Lung Transplant because she was too young and the bureaucratic rules didnt work . Ten years from now, if were smart, if we encourage this, ten years from now therell be no waiting lines, because you wont transplant. You will replant yourself. And it turns out you dont reject you. So the net effect this is very important. What it means is you dont take any of those antirejection medicines. So you radically lower the cost, you dramatically increase the likelihood of success, you eliminate waiting lists. Its a different world. Number one problem, food and drug administration. [laughter] virtually every regenerative scientist i talk to says theyre almost certainly going to take tear products to singapore or china or japan or india or europe because the food and drug administrations hopeless. This gives you a sense of what we talk about is pioneers of the future, and then we talk about Prison Guards of the past. And imagine it was the 1840s and we had government in its modern form. The stagecoaches would hire lobbyists to pass a law to say that railroads could not go faster than a horse. [laughter] because its an unfair competitive advantage. [laughter] you may think im exaggerating. In the 1920s the newspapers got congress to pass a law that made it illegal to have radio news. [laughter] broke down in the 1930s, but there was a brief period when you could not legally have radio news. Because, you know, people protect their own selfinterest is. Very few people go out voluntarily, give up their interest for the greater good. And thats why you have this constant tension between pioneers of the to future and the Prison Guards of the past. Now, one of the areas thats going to become the most fascinating is online learning. This is being streamed on youtube, for example, tonight. Well, one of my favorite examples is right here in california. Theres a and, again, when you talk about pioneers of the to future, just as henry ford was amazing and edison was amazing, the Wright Brothers were amazing, there are people wandering around today who are amazing. Sebastian thrun was german, but hes now american because he wanted to come to an entrepreneurial, open society where you could do exciting thing things that he thought you couldnt do in germany, too conservative, too closed to new ideas. So he started working on Artificial Intelligence at car megy melon. He participated in the earliest experiments of building a selfdriving car as a project that the projects agency set up a prize. And the early cars didnt go very far. They didnt go very far, and they werent very reliable. They got better every single year. He then moved to google, he was the head of their selfdriving car project. He then decided he would teach a course on advanced computing, and heed and Vice President he and the Vice President of research for google announced they were going to jointly teach a course at stanford, and they were going to make it available online. They had 400 students in the classroom, they had 151,000 sign up. It drove the Stanford Administration crazy because how do you regulate it . And how do you know theyre getting a stanfordquality course . And why respect they paying tuition if. [laughter] they had i dont know the exact number, i think it was 43,000 completed the course. On the final exam be, the highest rated student in the course in the stanford class was number 441. That is, 440 people who were not in the class got a higher score on the final than the best student at stanford in the class. I saw sebastian after this experience was over, and he said it was very humbling. He said he always thought he was a great lecturer, and hed always loved his lectures. And he suddenly discovered that if you took the online course, which was a problembased course, you did better than if you spent the same amount of time listening to his lectures. [laughter] now, he then took from that and founded a firm called udacity. This is a good example of a pioneer of the future. The stated goal of udacity is to provide Higher Education for 90 reduction in cost. And so recently they announced at georgia tech that u, the acity was now going to take a 70,000 residential masters degree in advanced computing, and they were going to offer the masters degree online for 7,000. First of all, think about what that does to student loans. Second, if youre an adult and this is a class you really need but you live in minnesota or you live in Southern California and youre not going to move to georgia tech, you can now take it in the mornings, on the weekends, while youre on vacation. All of a sudden weve begun to liberate you from the professors schedule. Most education is stunningly inefficient. The course will be offered from 10 20 to 11 40 at the convenience of the professor three days a week. Well, thats not thats the world thats going to rapidly disappear despite every effort of the Prison Guards at the University System to block it. The most famous example you can go look these things up yourself. Im not making any of this stuff up. Go look up duolingo. Duolingo is a free site that teaches seven different languages. Now, it raises a very interesting question about the future of language education. It also raises a question about the ability to start teaching literacy on your smartphone so that nobody whos today illiterate has an excuse. We had a huge problem, i think in detroit the literacy rates 47 . Its an enormous problem. And were never going to get it fixed by having literacy teachers from 57 two nights a week. But you can start to think about whole new structures of learning. The most famous example, this is the khan academy. Khan is a finance year whos doing financier whos doing very, very well, and he had some nephews who were not doing well in math, and so he began doing 68 minute youtube videos explaining one math problem at a time. One of the things i discovered early on very much like Sebastian Thrun is that if he talked directly to them live, they learned less than if he taped a video and sent it to them. Partially because of the pressure, partly because they could keep repeating it until they got it, which you cant its very hard to ask a human being three or four or five or six times because you get frustrated, they get frustrated, you get can embarrassed and they get angry. But if its taped, they dont care how often you watch it. This is all art of what duolingo does. Ive occasionally taken particular sections eight times because i cant quite get it. The computer never minds. It doesnt come back and say, boy, are you stupid. [laughter] there are today at the khan academy 3,000 hours of material, and they get ten million visitors a month. Now, im just suggesting to you were at the edge of breakthroughs. Very obvious example. Every state should adopt a law that says if you need unemployment compensation, you have to sign up for online learning, because we will pay to help you improve yourself. [applause] so think about it. This is a perfect example of what i mean by breakout. The morning you say we are no longer going to subsidize bass fishing and deer hunting [laughter] if you cant get a job, were not going and this isnt the old conservativism. The old conservativism said why dont we just abolish it . Well, youre not going to abolish it. Its not plausible. Youll never get the votes. In the process, you sound like you dont care what happens to these people. And if you do say i care enough about you that i want you to actually acquire new skills so you can get a better job, its also the answer to the crisis in the middle class. Unless you upgrade our skill level as a country, youre not going to upgrade our income level. Now, what i just did is i took 100 billion weve been throwing away, and i turned it into the Largest AdultJob Training Program in American History. Without spending any more of your money. I suspect, by the way, the morning they actually say you have to do something for it, youll see a stamm drop in the number a substantial drop in the number of people taking unemployment compensation. Because if they have to work, they might as well work. [laughter] and thatll leave you with a significant change in attitude. But it all goes back to some core questions. The towppedding fathers all the Founding Fathers all believed in work. If you look at calistas books, when you look at land of the pilgrims pride which is about the colonial period, captain john smith. If you dont work, you wont eat. He didnt say that to the poor, he said it to the rich. They paid their way over. He said to they said to him you cant make us work, after all, weve already paid for it. And he said, youre right, you dont have to work. We dont have any extra margin. Were a brand new colony, so if you dont work, there wont be any food for you. But dont worry about it, youre right. [laughter] luckily, there werent enough lawyers at that point for them to get an injunction [laughter] just a small part. Now, let me carry this to onere area which, frankly, drives me nuts. And aye been on this now ive been on in this now for almost 20 years. I will say to frame this for a second, i am the only speaker of the house in your lifetime to help create four consecutive balanced budgets. [applause] and i am adamant that we adopt a balanced budget as one of our goals. [applause] i think the National Conversation for 2014 and 2016 should be very simple. Its essentially three and a half topics. Is obamacare the best we can do, or can we develop a breakout to a genuinely personal Health System that uses all the modern capabilities weve got . Thats number one, because you cant avoid it. Two, is this economy the best we can do, or can we get a breakout to the pioneers of the future liberating us once again to be the most dynamic, fullemployment, highincome society in the history of world . Three, are we, are we going to continue to steal from our children and grandchildren, or is it time to get to a balanced budget by fundamentally changing the government . And then the other issue which i list as a half issue because its not relevant right now every day, but it could bite us at any time, and that is is this, is the current policy of weakness, confusion really a very reliable National Security policy, or is the world dangerous, and do we need a much more coherent foreign and National Security policy . Thats not on the front burper right now. Unfortunately, the nature of the world as you remember 9 11, that can get on the front burner every morning. These are in refunds. This is the refund for your taxes. When i say crux, they send 585 checks to one address in singapore. They said over 850 checks to one address in lithuania. Now, at one level you have to ask yourself, how you ended up with a government so mindless and so incompetent that it could do this. 4 billion is an big money, but if you had to choose between giving it away to crooks or spending it at the National Institutes of health on research, i would argue it would probably be dramatically better to spend on research. I know this is a bold outside the box, unfair, you know what drives me crazy about congress is businesses effort to think this stuff through. And im writing a paper right now where im going to call foresight hearings. Is the difference. Oversight hearings are when a group of cant think it together and they pontificate for the opening our this is really bad i cant believe how bad this is, and im really embarrassed that this is a better than the bureaucrats come in and they all say, well, this is not quite as bad as it seems that it is pretty bad and we feel really bad about how bad it is amply want you to know we take full responsibility for how bad it is which is no mean because we all have lifetime jobs. But we are happy for you to beat up on us for a while if it means you feel better and we can then go back to continue to do whatever it was were doing which is totally stupid before we came down here. Nothing is going to change anyway. The congressman also a this has been a highly meaningful hearing and im confident isnt this what you watched for most of her life . Heres how a foresight hearing would go. You spend the first time of it describing what you can accomplish. For example, and iris system whose refund accuracy level is comparable to American Express visa or master charged. Not an outside the box these are three institutions are alive. You can measure them. The second part of the hearing you are bringing people who do it well. I list those three companies from the people who run security worldwide for automatic teller machines. I always tell people one of the great virtues of mcdonalds and Similar Institution is a trainer of very young people. Liberals were crazy to attack working mcdonalds. Its the first of young kids encounter the idea that the accuracy you have to have on your Cash Register is higher than 70 . [laughter] that 70 may be passing in school because it has no meaning in the real world, but in the real world that actually would like to be like, say, 100 . [laughter] this is an enormous shock and its become a bigger shock the worst our schools have gotten but all of a sudden these little kids are going, you mean everyday . [laughter] you mean the change has to be accurate for every customer . Wont you cut some slack . What if i only do nine out of 10 . Im sincere. Dont you like me . [laughter] and this is kind of the problem over the federal government is we know how to solve this. You solve it by replacing the current bureaucratic structure not by reforming it. This is a 130 year old model that doesnt work anymore. The main event worst but certainly doesnt work now. And its a model based on paper. So youve all these nice bureaucrats sitting around with her paper when all the crooks are sitting around with ipads. [laughter] your the second great virtue that the crooks work after five. [laughter] i first learned that my best friend in high school who is a favorite successful tax lawyer. And i said whats the key to what you do quick she said i work later. He said, the irs has a rule and its a fairly late game process to issue rule and the time that have the Comment Period and then finalize the rule, i will abound a new loophole for my client to get around the rule. I will stay late enough that night that i will figure it out and they youll been taken three years to discover the new loophole that ive already found about and issue the new rule, i will abound a new loophole. He said i make a lot of money because my client thinks this is cool. [laughter] omlts of immigran immigrant con believes nothing further is a good thing. Frankly, almost every american delays not being the federal government. Ive had very few people rush in and say i feel so bad. Could i give them more . [laughter] so the second phase would be to i shall bring people who do it well. The third phase would be in a very calm way to bring in the people currently in charge and just say, explain the system. This is a system this is what i learned from taking a tutorial from the father of the call the movie. This is not about bad people. These are decent people in a terrible system. And so you have to say tell me what the system is. And then you ought to bring in experts who can say, all right, here is a system that works and heres a system that fails. If you want to get to the system that works it means you have to have these changes. I think what would be very helpful for the country at the last stage of these countries would be members talking among themselves in public and saying given what we have now learned, what do we think the systems changes ought to be . This is endemic to the president the other day to his credit began to explain i dont thi