Good morning, everyone. Im scott mcgrew. We have been thinking a lot lately about the future of work. Certainly how robots will replace many of us at work. But a very smart fellow points out we may have been ignoring something called augmented work. Technology working with us, not against us to make us the worker more effective. This is video from microsoft, but there are any number of Companies Developing these sorts of ideas. Headsets and holograms, giving us very new views of work. Tim oreilly is famous for something called his oreilly radar. The ability to predict the next big thing. I can tell you that tims ability not magical. Its because hes a voracious listener and a good learner. Tim oreilly is the founder of oreilly media. Hes the leading intellectual. So leading intellectual is a lot to live up to over the next few minutes. I like to say my reputation precedes me. Augmented work. This is wearing the goggles. What else with might we see in the future that were still getting employed and drawing a paycheck, but doing something better. I think its important to think that augmentation doesnt mean augmented work. Uber driver is an augmented work. In what way . Could a taxi driver find you on a random Street Corner . No, theyre augmented by the smartphone. Could a random person step into the job and find any address in the city . No, theyre augmented by waze and google map. Uber and lyft, all of those things is because beuse technology to augment the workers. There are more people working in the industry than there were before. Because its better. You can do things that you could not do more. Are there Certain Industries that lend themselves more toward augmented industry . That helps them rather than replaces them . I think there are certainly some industries where this is going to be the case. But i think its super important to realize that the opportunity that is afforded us by technology is to discover how we can use people to do things that were previously impossible. So often because of all of the financial incentives that drive us in the opposite direction, people think first only of how can we use machines to put people out of work . But great fortunes are made when you figure out how to use machines to do things that were previously impossible and create new industry. One or two examples that youre following really closely . For me, when google glass came out, whether its medicine or architecture or elsewhere well, absolutely. The industrial applications of augmented reality are enormous. And i think google made a massive mistake with the First Release of glass by trying to make it this cool consumer device. I think it was a famous misstatement by a google executive that said if u. P. S. Drivers are wearing it, will it fail . No, if they had been wearing it, you would have succeeded. So very clearly, you know, augmented reality and architecture is going to be huge. When you even in the office setting. I was up there with della at microsoft recently. He said i do a lot of my work on the lens. I have a bigger workplace. I put my xcel and my web browser over here and then you look around and there it is. You mentioned google glass taking a consumer first approach and then trying to go into enterprise later on. But were seeing the sort of same thing happening right know when it comes to playstation and the playstation headset. More for recreation. Right. More for recreation, exactly. Is that the right approach . First off, the approach 0 of those devices is more towards Virtual Reality than augmented reality. Virtual reality is entertainment at the present. There are entertainment in augmented reality as we saw with pokemon go. It was unexpected. Youre looking at Artificial Intelligence as well. What are you some are very concerned. I mean, some Fairly Famous names are concerned about it. What are you thinking about it entering the workplace . Well, the first thing i would say is theres a lot of fear mongering about a. I. And if you actually talk to practitioners in the field, as opposed to famous people in tech who are not practitioners in the field you will find that the practitioners say that the fears of sky net and, you know its the first thing they the intelligence are just overblown. But that being said, you know, narrow Artificial Intelligence is around us everywhere. Its a continuum between algorithms, you know, big data. And a. I. I mean, what we used to call a. I. Today we just say its a programming technique. And political campaigns are getting involved in big data. Not necessarily a. I. The way you and i would think of it, big data. I think the thing thats most interesting to think about is the way that algorithms are increasingly ruling our lives. And, you know, theres been a discussion of that in media, for example. Focused on consumer. Where you say, hmm, you know, the filter bubble of people are being fed news stories that already match what theyre looking for and that changes what consumers read and see. But its important to realize that it shapes what people produce. You know, as a Business Model of newspapers for example, its increasingly driven by Online Advertising rather than subscription. That is fundamentally changed their independence. Youre saying that writers or tv would follow what their customers want as opposed to what they should be writing . Thats correct. Look at the coverage of the president ial election for example, its clearly been driven by chasing page views. Or chasing views of video views or social media mentions rather than whats the real story here . I know you have a followup question. Fit it in before the commercial. Its interesting you talk about how the media is covering this election in particular. It is in a sense chasing where the algorithms is and its like a shot clock era really. We have a shot clock going down to the next event. Just wondering which of the candidates do you think in terms of we talk about their use of this data is better i dont think its the candidates use of the data that im concerned about. I think theres no question in my mind in terms of a sort of Data Infrastructure for, you know, electioneering, clinton and trump has an innate feel for social media. What i was talking about really was the fact that in the same way that kennedy understood t t that, you know, television was going to be Game Changing i think trump does understand that this is a massive loophole in the intelligence of our media which can be exploited. And that if you just make news, make crazy statements, you will get coverage. And he works it and works it and works it and, you know, i have to say, i am incredibly disappointed by our media. The very, very little of what we used to think of as the legitimate role as the Fourth Estate is just not there. Well, i saw a sound bite and we ran it in which trump said, you know, open borders. Thats all shes going to have, folks, is open borders, then we talked about something else. No fault to the person running the sound bite, wait, thats not true. We have to go back and say, that isnt true. You mentioned the shot clock. I have a shot clock and that is a commercial break. Well do that. Well be back with tim oreilly in a moment. Welcome back to press here. We are talking with tim oreilly and John Schwartz has been itching to a ask a question. We have talk about how trump has used social media so adroitly, kind of manipulated the press conference which has fallen behind him lock, stock and barrel. But what precludes a cnn or a network from showing a live speech and then revisiting it a day or two later with the fact check. So that when he or Hillary Clinton said something, a bubble would burst or something would dispute what they said or correcting what they say . I think the algorithms. Because in the end its not news anymore. And so its going to get less coverage and so they would go, well, its not worth our while. Even taking Something Like matt lauers now notorious interview this past week . Yes, absolutely. You can in fact, you know, media can do a good job and in fact individuals do it always the time, finding something and then turning it into say an animated gyf or little posterized image and they get recirculated on social media. But you have to understand that when the Business Model is advertising, it changes the coverage. Were wondering if the audience would buy into the idea of Fact Checking the reporter. Like when they asked a question or failed to ask the followup question, what he or she should have done we are seeing that on twitter. I mean but i mean its keeping us honest which it certainly did in the instances you spoke of. Let me change the subject slightly. I said in the beginning that you were voraciously curious. You have a next economy summit coming up in october. One of your keynote is called what problem are we trying to solve . I think its a great question. So many of these conferences and discussions begin with all right, heres what well talk about. Your question at the beginning of the next economy summit is, what should we try to solve . Well, im really trying to wrestle with the question of technology and the future of work. It seems to me that we we as a society are facing a lot of really wicked problems. You know, we have growing income inequality. We dont know what causes it. We have lots of theories but we havent figured that out. We have fears of technology which may in fact be the solution. We have massive problems like Climate Change or the demographics of ageing populations. Are you going to solve all of these its two days. Were not going to try to solve all of these, but what well talk about is how to think about these things. Because thats the real problem that we face, that we dont actually have a sort of the right mindset for tackling problems. So for me, one of the things that im focused on is in an odd way, the more i thought about the question of technology and the future of work, the algorithms that i become concerned about are not the algorithms of a. I. But some of the broader algorithms that we have encoded into this machine that we call the market. You know . People think that the market is sort of like a fact of nature when in fact its a set of rules that we build up. And four years, for example, we put in place this bad rule which the program has been executing ever since which is if corporation only focuses on making money for itself Everything Else will work out fine. And it has not turned out very well. You know . Now we have to actually rewrite the rules of business and the focus is really to ask ourselves how should we be rewriting those rules . Jump in, we have about 30 seconds. Okay. Do you think [ indiscernible ] like homelessness or income disparity or or is it just too concerned with profits . You know, its interesting because there are a lot of people in tech who are trying to solve big problems. And, you know, theres no question in my mind that if you look in general at the track record of tech versus the track record of say wall street, you know, wall street is a heck of a lot more selfserving. A lot of tech entrepreneurs who are going, yeah, lets really tackle a real problem. Of course, there are also tech entrepreneurs who are really kind of playing in the financial betting markets. Many startups are just Financial Instruments just like wall street, you know, cbo. Tim oreilly is head of oreilly media. The summit starts october 10th in San Francisco. Yeah. Through the 11th. Well, up next, Silicon Valley mayor says we have too many jobs. Press here will be back soon. Welcome back to press here. In the news business, every once in a while a perfect symbol just drops into your lap. In the case of high house prices thats kate downing. She posted an open letter to the internet announcing her resignation because she said she couldnt afford to live in palo alto despite the fact shes a corporate lawyer. Are we building enough homes, can we make them more affordable . In palo alto theres an interesting reversal, are there too many jobs . Is there way to slow the number of Companies Moving in . Can city hall fight a good economy . The mayor of palo alto said the greatest prob right now is the bay problem right now is the massive job growth. Hes also a hightech ceo in his own. Can you clarify that for me . I understand you want everyone to have a job but i can kind of see what you mean. Its the rate of the job growth in the region. We have been growing for the last five years or more, six years at a rate that is really u. N. Unsustainable for the region. Healthy base, to keep enwith the housing growth and transportation transformation is a good thing. And its disruptive in a negative way. It really damages the social fabric. It damages the opportunity for people who arent in those 200,000 a year hightech jobs to be able to live and survive here. Youre doing that in part by saying no, you may not build New Buildings or make buildings a certain height downtown. You are were moderating. Moderating, okay. Big difference. Between controlling and moderating. Yeah. Were trying to have some degree of metering on the rate of growth. I mean, we think thats a strange concept. We look to the Federal Reserve to very carefully look at how to affect our economy in ways that will not overheat it or underheat it. Even if question do in i kind of government do any kind of government boundaries its an odd thing. Is it working or too early to tell . Well, were having some benefits. Were beginning to slow the rate of job growth as were also taking that those same developments that would have been to new office, were changing our zoning and our incentives to have them emphasize new housing in those areas. In fact, in the downtown areas and the transit corridors. So thats a transformation that begins to try to address this problem. Not going to solve it, but improve it or mitigate the problem. What kind of too much job growth, what kind of a strain does it put on the city . In terms of services, does it become a major inconvenience because there are too many people in this one area . Certainly congestion is a big issue. We throughout the valley are hitting a lot of areas where were in virtual gridlock. Thats not good, its not good for commuters, not good for people who just are trying to go to deal with their kids activities or any of those things. So thats one thing. The other is frankly the astronomical cost of housing. And my point wasnt that we shouldnt address the housing needs, its that we cant possibly keep one this rate of job like an issue in San Francisco. So there was so much construction, so not enough housing so you have this consequently a strange dichotomy, you have the housing going up and people homeless in the same block. We saw it during the dotcom bust and maybe you can speak to, mr. Mayor, in San Francisco, all the buildings going up. We know there will be a cycle. Now, it may not be as devastating as the dotcom bust. San Francisco May not be prepared for the down cycle. You can hire too Many Police Officers basically and then all of a sudden, couldnt afford to pay them when we got into the down cycle, right . Its both that and its also the need to continue to have some diversity to our economy. So to the extent that we are emphasizing one economic sector and not just tech, but more software than ever, as we get those big ebbs and flows, those of us who have been in this economy a long time know this is a boom and bust economy. When we have a bust, it becomes even more disruptive. Whereas if were a more diverse economy its less impact. Mayor, are you seeing a softening at all with regards to the rental market . John, you bring up that influx of luxurious apartments permeating throughout. And are you seeing something on that end as well . Not really yet. Ill give you a figure, i know youre talking about residential, but office space i read somewhere that palo alto, 103 per square foot. Its more expensive to open up in palo alto as in San Francisco. As you try to moderate people as they as palo alto grows, if i had my job at apple or cupertino, id still want to live in palo alto because its a livable and wonderful city. That you cant control because those jobs are not in your in your city limits. Thats right. Twothirds of the people who live in palo alto work in outside of palo alto. Most of our people who work in tech dont work in palo alto and vice versa. We wont change that, that ratio very much as we build more housing. So its not a panacea, but it does have to be part of a balance. Youve got a cloud theyre moving from one to another. But its the largest i think real estate so far, so what percentage of downtown is palantir . Well, theyre theyre around 200,000 square feet out of 1. 3 million. Amazon is very big downtown. Thats one of our sub issues is that our downtown area had been a general Business Environment and had morphed into having a lot of startup environment. But we have a couple of Large Companies who decided to grow and expand and essentially take over major portions of our downtown. So were relooking at frankly the zoning code thats currently there. Doesnt appear to have permitted big r d companies. Youll have trouble keeping the cute little sidewalk cafe if somebody is willing to pay a ton of money for that well, we have retail protection ordinances but were losing the business startups downtown. Theyre being squeezed out. The thing that makes downtown different from Sanford Research park, this incredible ecosystem whereas you go into a cafe and you might have ten startups being deals being discussed as youre surrounded. Thats were losing. Pat burt is the may yosh of mayor of palo alto with a problem that most mayors would love to have. Thank you for being here. Press here will be back in a moment. Welcome back to press here. We have a veteran of this tv show, but for other organizations, now youre with yahoo finance. How is that going .