tv CGI America Denver Bloomberg August 9, 2015 6:30am-7:01am EDT
>> turning ideas into action, the clinton global initiative attracts some of the world's most influential people, leaders in business, politics, and philanthropy. the goal -- find solutions to economic problems and establish commitments that improve lives. on this bloomberg television special, we take you to the cgi america meeting in denver, colorado, where a discussion of the nation's growing wealth gap featured the housing and urban development secretary julian castro. secretary castro: we want folks to live comfortably in a decent, safe place. >> a panel of visionaries
explore diversity and vision in technology. kay: this is the new economy, and we are all going to love it if we just learned to participate in it. >> this year, questions on over over the clintons of how they fund the initiative. bill clinton addressed these questions head on with bloomberg's betty liu. betty: i want to get to some of the commitments you are excited to talk about today, that i also want to talk about some of the topics that have overshadowed some of the good work that cgi has done. bill clinton: have added. have at it. betty: you have something like 200,000 plus sponsors that have supported cgi since 2001. a few of them have begun to
reassess their sponsorship of the clinton global initiative. exxon mobil said they will not sponsor you this year. is this because of the funding controversy? mr. clinton: i think they don't want to be involved in politics. they don't think we were ever political. there has never been a foundation with a more prominent political person involved. i have had george and laura bush here, mitt romney, john mccain and sarah palin came. i've got all these. rupert murdoch and his son and his foundation giving money to us along with mayor bloomberg. we just solve problems. but, a line of -- there are people who just don't like bad press, and you cannot be involved in american politics without somebody attacking you, and i think the fact there are so many other channels like bloomberg and social media, if someone wants to go negative -- it is sort of a tribute to my wife that it all happened now. [laughter] and we have got all this social
media and the alternative ways of communicating. in the end, the foundation will stand or fall on the work it does. betty: knowing the outcome now, is there anything you would have done differently with the foundation? mr. clinton: there may be a thing or two i would change, but the basic idea i still believe is the right thing to do. to solve as many problems as possible through cooperative networks that are inclusive across political party lines and business and government and nongovernmental groups. >> chelsea clinton moderated the meeting's opening panel. the map of making it in america. she asked secretary castro how he assesses the nation's progress in creating affordable housing. secretary castro: this is h.u.d.'s 50th anniversary. president lyndon johnson
inaugurated it in 1965. we have made tremendous progress on things like child poverty in that time. we still have tremendous challenges. every couple of years, there is something h.u.d. does called the worst case housing needs assessment. the last one we did found there are 7.7 million families out there who are either paying 50% or more of their income in rent, or living in substandard housing, or both of those things. just last week, the national low-income housing coalition put out a report that folks may have seen in the news that has a really eye-opening analysis that said that nowhere in the united states can you afford a two-bedroom apartment or home to rent on a minimum wage salary. with the exception of a few
communities in the pacific northwest, folks cannot even afford a one-bedroom apartment on minimum wage. you get a sense of the gravity of challenge out there. we want to address that affordable housing component so that more folks can live comfortably in a decent, safe place. the second thing we're working with communities in is not just stopping at four walls and a roof. going beyond that. what i mean by that is breaking through the silos of understanding that it is housing and education, housing and having a good job where you can make a living wage that you can support your family on, it is housing and including everybody in upward mobility. i think the number one thing that local leaders can do is to organize themselves across those silos. when i was mayor of san antonio, that meant we sat down at the table with the head of the local community college district, the head of the local public utility, the head of the local transit agency,
universities, housing authorities -- where the decision-makers have the maps on the table and the list of resources and plans for the future and think about improving those communities. if folks can organize themselves in that way, the leverage they can get from the federal government, nonprofits, private sector, i think goes up exponentially, and we are encouraging folks to do that. chelsea clinton: how do you know when that starts to work? do you still judge that from an affordable housing perspective? do you judge that from unemployment perspective -- from an employment perspective? how do you start to know when you are like "we are in this
city at this point in time"? mr. castro: that is something we have begun to get our arms around. i think it is fair to say generally, the way we measure success is, does the family have a roof over their head? that is still the primary way we are going to measure outcomes at h.u.d. are we doing our job of ensuring that people have housing opportunities? we are also getting better about measuring outcomes in terms of the young people in the public housing communities. how many of those young people do well on their third grade reading or math exams? how many go on to graduate high school and have higher education opportunities? how many of the people because we do something like jobs plus or family self-sufficiency that are meant to create more economic opportunity for folks, how many of those working age adults are able to get job training and actually get employed, or if they are already employed, are able to go up a notch in terms of their position? we have not always been great about measuring those outcomes, and over the next 20 months, that is what we want to accomplish. >> still to come on this bloomberg cgi special, how technology can provide tools for inclusion -- a provocative panel discussion next. more with former president bill clinton on his foundation and his family. mr. clinton: that would be not
>> welcome back to this bloomberg television special from cgi america in denver, colorado. can technology and innovation be forces for expanding opportunity and enhancing diversity in the workplace? bloomberg television's betty liu discussed that topic with a panel of innovative thinkers and doers from the world of tech. betty: when people talk about technology and the labor force, they think about it mostly in a negative way. they think about robots taking over the labor force and we will see lower wages and fewer jobs. give me a sense of how you are deploying technology for the greater good. aneesh, do you want to start on that? aneesh: sure, and maybe i will put some context. last thursday, a report by mckinsey was issued that suggested if we applied those
same technologies that might be modernizing our manufacturing operations or addressing how we shop on the internet but put them more to connect us to the jobs and opportunities, we could boost the gdp by $2.7 trillion globally. but on human capital, we are still stuck in a decades-old approach at the job title at -- approach, which is what was your job title at your last place of employment and where might you have a similar job title for the next place? if we have the same sophisticated analytic capability, we could identify that, while i was performing a function like this in the economy, the skills i have that allowed me to do that would also be applied in this job i never thought i could do. kay: this is the new economy and we will all love it if we learn to participate in it. i am optimistic and i think there is improvement with our health care system, more information, more predictive analytics. we are very active in the retail sector. with predictive analytics. it's huge.
rather than mourn for what was, let us celebrate what we can be because i am totally optimistic about our future. betty: how about you, jake? jake: our vision is to build a global community of consumers empowered to do work they love. i think our job is really to help all of the upcoming generation of college graduates and people in their 20's and 30's who actually feel that optimism and to be able to embrace what their career and potential would be. the reality is that technology is no longer a sector in and of itself. technology is in every industry, every nook and cranny of the economy. one of the reasons we need diversity in the tech sector is because it has stopped being just a sector.
it has become our entire economy. we all know that a diverse economy is more healthy and will perform better in the future. our job in that process is to help bridge education and employment. betty: there was a comment recently by governor mark warner. he says congress should be more attuned to it. you are all familiar with this. he talks about the gig economy. rather than sign on to a company for a full-time job, people collect a bunch of gigs to create a full-time income. however, that does not come with health insurance, a 401(k). what happens when the economy turns south and all of those gig laborers find those jobs no longer exist? who picks up the bill? aneesh: this is an area of great passion for me. senator warner is my mentor. i would suggest the following. the conversation needs to begin in washington and with the
public and private sectors together on how we move forward. one of the most powerful secondary effects of improving access to health insurance was the creation of these marketplaces that decoupled what was a traditional employer in the last 50 years -- not buried in our dna, but to decouple that from the employer, that once individuals can be free to choose their own health insurance plans, then they can make better choices. to take that analogy further, you can start to ask yourself the question -- might there be a marketplace for workmen's comp, or a marketplace for paid maternity leave? how do these insurance companies and other stakeholders design and organize said marketprices? only after that may you have a conversation to say who should pay what share. betty: you saw the study about entrepreneurship in the u.s. we hear somewhat about technology companies and startups, and it seems like every other day there is
another 22-year-old with a big idea that will be a unicorn. [laughter] however, according to this study, entrepreneurship is on a 10-year decline and at pre-recession lows. are we creating an economy where there are much greater haves and have-nots? jake: the devil is in the detail on those statistics. my guess is what you would see is if you look in there, there are a lot of headline grabbing entrepreneurships. small businesses are not being started at the same level, and you see some of these software platforms eat up some of the world of small businesses and what used to be mom and pop operations. i think that's something we should be mindful of. kay: in the financial meltdown, there was no lending from the banks. the banks quit lending to small businesses across the country, almost without exception. it was really starving these organically-grown small businesses. peer-to-peer lending where other people are lending money to grow businesses is a growth aspect in our economy, and i
think it will have a big impact on the small businesses. they can get loans from individuals willing to support them and get a return on their investment. it is different from the banks, but i think it will bring up investment at the local level that has been missing since the downturn, since the financial collapse of the marketplace. i think there are some solutions that are coming on board. aneesh: i am bullish that we will see more entrepreneurs, more women led companies, more minority-led companies in different geographies than just silicon valley.
i also believe in what caused the rise of the west. the next wave of economic growth powered by the internet will not be tech in and of itself. it will be tech-enabled, regulated sectors of the economy. modernizing the health, education, consumer financial products. i want to celebrate the president's tech hire initiative, his startup america initiative. sometimes, organizing and convening, not unlike cgi america, helps draw more attention. this summer, the white house will host demo day. borrowing a magical statement from the silicon valley crowd. where women and minority entrepreneurs will be able to present their story from the white house to the world. they will be celebrated, showcased, honored, inspiring others. that kind of trend -- us putting more focus and attention of giving people a shot -- will work. i am bullish. kay: we are participating in that day. crowdfunding for equity is only less than a year old. aneesh: there are not written rules yet. kay: there are more rules to come on it, but there is crowdfunding going on, and let me say women and minorities are able to stay on par with
everybody else, and women are raising 12% more than men are on crowdfunding. it is because it takes a great social networking program. >> when we come back, more of a betty liu's interview with bill clinton and the decision he may have to face between guiding his foundation and advising his wife. mr. clinton: she will have to decide how i can be of best use. ♪
>> welcome back to bloomberg television's special report from cgi 2015. here is betty liu with cgi president and founder bill clinton. betty: tell me the commitment you think will have the biggest impact that has been made so far at cgi america. mr. clinton: diverse people have a chance to grow with our partnership. some of them that are really exciting are those who have a chance to grow. there was a a fascinating commitment involving financial institutions putting in developmental funds to bring clean energy jobs to native americans. they are still the poorest group of americans. the native americans who live on tribal land who don't have casinos. that has gotten a chance to really blow up. there are several like that. the biggest one in terms of dollars and jobs by far is the continuation of the original
$10 billion for the american federation of teachers, infrastructure. to retrofit buildings. the first $5.6 billion of this commitment had been deployed and spent. they created 50,000 jobs. that's a lot of jobs. betty: mr. president, what happens to the foundation's work? the great work you have done -- you mentioned many times this year is different because your wife is running for president. what happens if she does win the election and enters the white house? what happens to the foundation's work? what happens to you?
[laughter] mr. clinton: i don't know. i will be almost grown by then. [laughter] i will give you -- my serious answer is this -- i believe if you have been president, and the current president of either party asks you to do anything, if in good conscience you can do it, you should do it. now that is the truth. part of being husband and wife -- that will not be an easy decision should she be elected. she will have to decide my best use, including being around to buck her up every morning. i mean really, if she wins, and i think it will be a good thing
for america if she did win. [applause] but -- betty: it will be a hard decision made on the foundation. mr. clinton: we will have to talk about it. but i do not know. but what i have tried to do -- you know, i never -- i always took all the money people gave us and put it into the work. the reason i finally went out and tried to raise the endowment is i thought there were so many lives riding on the work of both the foundation and the health access initiative, which is separate from the global initiative. it would be irresponsible for me not to have an endowment. before that, president bush opened his library with a $250 million endowment. i did not ever care if i had one at all. i figured if we were doing good work, people would support us, and if we were not, fine.
i decided in the end that my -- betty: but now you have to think about this. mr. clinton: well, i decided in the end that my successors and interests, including my daughter, she has decided to keep doing this -- they may or may not be able to raise the money to do the work, so i at least wanted to have a modest endowment. it's just not responsible to have something that has gotten as big as this is with no endowment. so we did do that. betty: will you still give paid speeches if your wife is in the white house? mr. clinton: i don't think so. i think that -- because once you get to be president, you are making a daily story. i will still give speeches on the subjects i am interested in. i have really enjoyed those things. [laughter] i get to go meet with smart people. i have met with oracle's major investors twice in the last year. they are fascinating. i learned so much. if someone told me in 2001 that people still wanted me to come talk, i would be stunned.
[laughter] i think it is because i spent a couple of hours a day studying what is going on in the world, and i don't just tell war stories. i do not talk about when i was president unless someone asks me a specific question. i think people want to live in the present and look to the future. betty: in a bloomberg politics poll if you feel, if hillary clinton were to be elected to the white house, 83% of those voters polled said it was mostly good for her to turn to you as a chief advisor. mr. clinton: well, that is nice. [laughter] i appreciate that. betty: what would you advise her? mr. clinton: i, you know, first of all, i -- if she gets
elected president, she will make good decisions. she works hard, she is on top of things. she will make good decisions. she will consult widely. she will be inclusive, which we need. if there is one thing she knows more about than anybody on earth, it's on what subject i should be listened to. [laughter] and what subject i shouldn't. let me say something serious. i hope that i will be asked to help support her main determination, which is to try to give the country a middle-class again and give poor people the chance to work into it and make it a dynamic and again inclusive society.
i think it is important -- the good news about all of this technological revolution is we have more options than ever before. the bad news is we can get silo'd. we get isolated from one another. one of the things that is heartbreaking about all of these horrible instances where young people have been killed by these encounters with law-enforcement. it has revealed almost a total lack of trust in neighborhood after neighborhood in america. somehow, if to succeed we have got to be able to create a sense of inclusion where people at least feel safe in their basic functions and safe expressing their opinions, safe to disagree, safe to argue. i think she will do that. if i can help, i would like to. but believe me, she has better judgment than anybody else. -- she has got better judgment about the use of me than anybody else. she has been stuck with it for 40 years. she is about to figure it out. [laughter] betty: on that note, i want to thank mr. president bill clinton for joining me on the stage and allowing me to be on the stage here at the g.i. america.
stephanie: stan druckenmiller has one of the best track records in the history of investment and now he is sitting down with me for an exclusive interview. what he is worried about, what he is betting on, and where does he see the markets heading. find out straight ahead on this special edition of "encore." stan: why does the economy need holding up now? it would be remarkable to me if the run in the euro is over. there is good debt growth and there's bad debt growth. stephanie: welcome to bloomberg "encore," i am stephanie ruhle. it is hard to find anyone with more insight in investing. he spent years working under george soros.