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Penny Pritzker

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106
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2018-05-30
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2018-05-30
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  1. To be in school longer, and I may want to earn my BA later. But I need to be employable. I want to be start taking courses in high school that maybe are offered to community college. You need to be able to change laws that allow for that. So you see states like Delaware or Colorado or South Carolina that have done this. And it creates greater opportunity for folks.

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  2. Exactly. And the thesis that we put forward is one that really we have a lot of faith in business leaders being much clearer about what is that their need in their workforce. And the second is local, state, and local leadership. Coming together, business leadership with government leadership, with the educational institutions, K-12 all the way through universities, especially including the community colleges, to be part of the solution. What you're finding in certain states, laws have to be changed to create the flexibility. So if I want to be on a certain pathway where let's say I go K through 14 and I need to be work ready, I cannot afford.

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  3. They're portable and they're also you can earn maybe partial benefits in different jobs and that becomes more normal. We also have to help displaced workers. We're displacing workers fast. We have a flexible workforce. But then we owe those people something greater than trade adjustment assistance, which is what we offer the people who are displaced by trade But technology is displacing as many jobs, if not more.

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  4. In your lifetime, yes, exactly. It used to be one. But some even have multiple jobs at the same time, things they're doing. I've got this, and then I've got my gig on the side, if you will. But how are you earning your benefits? We need to modernize that so that portable.

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  5. Transparency is a big issue. And that's one of the biggest challenges we have, which is making it easier to understand those pathways. And we can harness data. And there are both companies. And part of what we tried to do at the Department of Commerce was to make more of this available to help people understand the other challenge is benefits. If you think about it, many people earn their benefits through their job, through their full-time job. Healthcare. Exactly. Healthcare, workers comp, retirement benefits. You can go on and on. And sick leave, et cetera. If I'm part of the gig economy or I'm a contract worker or I have a portfolio of jobs, more and more young people have a portfolio of jobs. They're doing a series of things. They're entrepreneurial.

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  6. Whether you're an Uber driver or you want to be a cybersecurity expert, you want to be somebody who specializes in machine learning. You're doing the kind of diagnosis that's going on with new types of biotechnology. I mean, it requires different kinds of training. Not all of it also requires that you go and have four years of college and graduate school, et cetera, et cetera. And so, you know.

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  7. So, part of the challenge is identifying, think of this many of these careers, they didn't exist a decade ago, forget when I came out of school. They didn't exist 10 years ago.

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  8. It kind of reminds me, I was thinking if you were back in the before cars showed up, just before cars showed up, or just as they did, being the person to say, I don't think you should shoe horses anymore. I feel like you shouldn't cheat your children to shoe horses, perhaps, because this car thing looks like it might replace horses. Like that's the kind of thing you can see, you know, job after job after job like that.

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  9. Go ahead. You go through what you think the problem is. Well, I mean, the challenges that you see are, as I said, one of the technologies that exists that are creating disruption in jobs. They're also creating new jobs.

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  10. In a manufacturing economy, both domestically and globally. We're not doing any of this. And I do have faith, though, in governors and in mayors, big city mayors. I think that they get it and they see because they're all in a competition to attract jobs that they've got there for adopt policies that prepare their workforce. So you're seeing all kinds of innovative things going on around the United States, but you're not seeing them go to scale. All right. That's some of the issues.

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  11. Piece of advice. But imagine you don't have parents of means and you're really trying, you're just trying to navigate the system and the system is, there's nobody to really to help you. And so this is why I say we need a systems change. Like what you mentioned when we went from the agricultural age to the industrial age, at that time the United States government made major policy. We made public high school mandatory. We made certain courses mandatory. We said here's what we're going to do in order to

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  12. Her grandmother Because I didn't do that. Yeah, I was in a parent meeting yesterday in a very elite school. Same thing. And we started to bring up this issue around coding. We weren't trying to say everybody has to code, although that's been a big push, that it was beyond just learning how to code. It's how to understand the next society. And all the parents, educated parents, very wealthy parents, just were besides themselves too. They're like, I don't know what to tell my kids. Exactly.

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  13. Families, I saw this when I was Secretary of Commerce, we did something called manufacturing day. We were promoting advanced manufacturing trying to show kids that advanced manufacturing is not your father, your grandfather, or grandmother's manufacturing. Families came to this. The last one we did, we had a half a million young people in their families go to manufacturing plants all over the country. And what was so interesting, and I talked with a number of the parents, they said, help me help my child. I don't know how to teach them how to do advanced manufacturing or what do they need to learn because I didn't do that. Because it didn't exist.

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  14. We have college counselors. We do not have career counselors. We do not have, and that's why I talk about the tools that are available online. We need to rein. One of the things our report calls for is we need to reinsert career counseling back into the education system. And we need to support those people with tools that create greater transparency so that you can help people who, and this is dealing with the young person, it's not dealing with the mid-career person who finds themselves out of work. There's a different set of tools that need to be created there. But we need to acknowledge this is a reality, and Americans are resourceful. If you help them help themselves, they're going to do great. And so our report, but that's a fundamental thesis, but we're not making this easy. As you said, we're basically saying to someone, figure it out on your own.

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  15. Absolutely, I think about young people. And you have young people who make it through high school. And for one reason or another need to work and college is not something they're going to pursue at that moment. What are we doing to prepare that person? And what are their options?

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  16. Much more transparent. Let's talk about how we think about work in the US before this, because this is the 24, you're talking about we're in the 21st century, but the way I think work has been done in this country is not planned at all. It's sort of like get out there and just you're just, they just loose you on society loose you on the workforce.

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  17. Engine. You go online and it tells you if you have certain credentials, what does that prepare you for? We need to make all of that much more transparent.

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  18. I may not even understand what AI is, but how do I get there? What's that path? We don't have the counselors available to do that. What's the technology tools that can help? There are some that exist. I met this fabulous group out of San Diego called Journeys, and they have mapped across the United States. You say, here's where I am today, both physically and let's say what stage I am in my education. And you say, I want to become a cybersecurity expert. And they will, and the tool will map for you where within your geography, first, what are the paths? Almost like, you know, a mapping function for driving your car. What's the path you need to take in order to achieve your objectives? What are the courses you need to take? Where you might be able to take them within your region. We need more tools like that. The business roundtable has created something called credentials.

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  19. We need a system change. In terms of the workforce, basically our thesis is that lifelong learning has got to be available to every American. We've got to make Pell Grants more flexible, map grants more flexible. We need to make it more transparent for individuals to understand how do I get from where I'm at? I'm in 10th grade. I want to become somebody who works in AI.

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  20. And many of those folks are people who are working for American companies that are having to locate in Canada because of the immigration policy.

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  21. I think we're in the change, and what we haven't done is acknowledge that and said we need a systems change. We need a cultural change. First of all, lifelong learning has got to be available to everyone. And we also have to better connect and better link both your education and your skills training to jobs. Right. There are new jobs. There are all kinds of jobs being created. I haven't spoken to a CEO in this country, and I spoke to probably 2,500 when I was in commerce who didn't tell me I can't find the skilled workforce I need. And yet you've got people who are unhappy with the opportunity in front of them. And then the third thing you've got is I was just in Toronto this past week, and Toronto is growing at 1% a year.

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  22. Parts of that, and then the general feeling that some of these jobs are just not going to be there in the future, that the way it's as if we're going to farming, as we did from farming to manufacturing, something is about to change really significantly.

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  23. Right. And I think what's interesting is this past election, I think, was all about work. I mean, you can point to racism, you can point to fear mongering, but this is a candidate who took advantage of the fears. And then another group of people that didn't have solutions to those fears didn't have answers, enough answers about where work was going. And I think if you could boil it down, there's all kinds of issues around an interesting candidate, but ultimately it was about... Work as far as I could tell, like people worried about where it's going, and the topics I think you just alluded to, one was automation and robotics. I think you put those together. Yes. The changes in transportation, self-driving, infrastructure, AI and all the machine learning and all the out.

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  24. They revamp the plant, he loses his job. He can't find work for a year. Part of his challenge was he didn't know how to explain if he'd been a supervisor, he was a manager, he had technical skills, he didn't know how to present himself. And on social media, on Facebook, he found And how do we as help Americans manage the change in the workplace, whether it's in manufacturing or it's in accounting or it's in white-collar work? It's happening to all of us. Right.

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  25. First of all, you're doing, I love your interviews that you're doing on this. It's really important. Look, the Pew Research has said 75% of Americans are really, they have enormous angst about their job that they have today. And about the future of their family. And I always like to make this personal. I like to think about who are the people that we're talking about. And I think about, you know, Corey Powell from the South Side. Here's a guy who had in Chicago, south side of Chicago. He had been worked for an architectural steel manufacturer, was a production supervisor.

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  26. Absolutely. The point of the work ahead is that we have seismic forces that are changing the very nature of work, the kind of innovation we've got, automation, globalization, artificial intelligence. And Americans are struggling to adjust and thrive in this environment. So the Council on Foreign Relations asked John Engler and I to lead a task force of 20 experts to put together a menu of options for federal leaders, state and local leaders, business leaders, and NGOs.

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  27. He's fabulous. And he's been a great thought partner and leader when I was in the Department of Commerce in terms of issues of privacy and the digital agenda. And so for me, it was a company that I thought would help keep me on the leading edge of what's happening in technology. And I feel that's extremely important as a business person.

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  28. Well, I have no information about that. But what I would say about Microsoft is I really, I think Sacha's a terrifically transformational leader. I think the culture, I really agree with what they're trying to do, what he's trying to do, and where the leadership of that company is going culturally. And I believe in the products that they're have created are creating and are delivering, but it is a vertical learning curve for me. I am the first person to tell both Satcha and Brad Smith, who's the president. He's coming to Code.

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  29. Well, I wanted to join the board of Microsoft. I was really interested in joining the board of one of our leading technology companies.

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  30. Exactly. But then on the more corporate and tech side, we're also focused on bringing technology to establish businesses or the data revolution. So I'll give you a couple examples there. For example, we're investing a company called Wire Wheel, which is creating a solution to help companies know where is their sensitive data at any time so that they can be compliant with GDPR. Or we own a company called Beachfront Media that is a technology advertising business. So we're trying to be in areas of the economy that we think have growth. We like to work with entrepreneurs and business founders to build businesses and to help them grow their enterprises.

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  31. Yeah, so I came back to create PSP partners and we really do a couple of things. In the corporate area, we're focused on what we've always been is building businesses. And we invest across the spectrum in venture growth and more established businesses. And what we're trying to do is take advantage of global trends. So whether it's urbanization, so in our real estate effort, we're developing and own a whole portfolio of multifamily apartment buildings in the United States and Mexico. Or logistics are changing. We create industrial product, industrial buildings, and try to solve problems for companies trying to get their goods to market.

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  32. It's very hard to understand, and when I listen to the officials, our officials talk, they're very opaque about what we got in return or what were the promises that were made, you know, agricultural access is very challenging. It's been the number of negotiations that Secretary Vilsack and I and Ambassador Froman engaged in on agricultural access. It's just not something that happens overnight. And so It'll be interesting to see if somehow out of this chaos

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  33. No, I just think it's just utterances. You know, you go from very threatening remarks to then, oh, we're going to help the Chinese company, which I think most intelligence officials are disturbed by, to this, to that, to that. And it looks like nothing's been gotten in the end from it.

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  34. You've created impediments, whether it's intellectual property, protection, or we don't have access to certain markets or things like that, and say that's not helping you, nor is it helping us. And let's find places where it's in everyone's best interest to make change.

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  35. My question is the approach, which is I think that this threatening and very Vitriolic kind of conversation that is hoping then that someone's going to say, oh, I've been wrong all this time and I'm going to back off. That's not how governments relate to one night. My thesis has always been the way to work with another government, let's say on the economic issues, is to help them understand why it's in their best interest to make it easier for American companies to have access to their market. And the approach that we took was to say, you know, Here are the rules that you've got that are impediment to foreign direct investment. You have a public statement you want our investment in your country. And we want yours here.

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  36. Well, I think China, look, there's no doubt there's a challenge with market access in China. I've said this to the Chinese. It's not like this is news from me. And certainly this administration is attacking that issue. There's no doubt there's challenges about intellectual property protection.

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  37. There seems to be, I'm not privy to that. But what I know from as someone who's a business person, it's very hard to sort out. It's very hard to figure out then where do I want to put my capital so that I can, you know, Create economic activity, which is, I think, frankly what everybody wants.

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  38. Yeah, I don't understand the strategy. I can't make sense of it. And it seems to be that the positioning changes day to day.

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  39. And that's all gonna just happen quickly. And so that's the challenge that I think we face is understanding what are the rules now.

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  40. And we're questioning what leverage do we have with China. Well, we threw out TPP. It took, I think, north of six, seven, eight years to get TPP put together. You can't just say, oh, okay, I want to do a new deal.

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  41. Wow, they seem very focused on the trade deficit, which was not a focus of ours. I mean, the factors that go into a trade deficit are much bigger than trade agreements. So what we were focused on was how do we open our markets so that we get more investment in the United States, which creates jobs and creates opportunity and economic benefit for Americans. We were focused on market access to other countries and working with other countries to be able to have easier access into their economies. And, you know, it wasn't always easy. We had a lot of success, but we ran into also a lot of challenges. You know, what I worry about is it takes a very sustained, consistent effort to make change across if you want in trade relations. If you think about TPP.

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  42. I think unemployment was around 8% when President Obama came in. It was north of 10%. So we were very focused on job creation, but we understood that's not the government doesn't create those jobs. And what we knew is that you needed to create also greater certainty so that companies had Conviction and clarity that they would take a business risk, but they didn't want to take a geopolitical risk, if you will, or a geoeconomic risk.

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  43. Well, and one thing we all know is certain businesses want certainty. They want to understand the playing field and they want to understand the rules. And then they're willing to operate within them and then they're willing to invest and then they're willing to create jobs. So we were very focused on job creation. But what we knew is the federal government doesn't create jobs, private sector creates jobs. So we had to create the conditions where the private sector would want to invest and grow and create jobs. And that was very much a focus of ours because remember, it's hard to remember. When we started, when I came in,

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  44. Well, the challenge, yes, many things have been stuck in a drawer. And the other thing is we have a lot of chaos. You know, certainly as Secretary of Commerce

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  45. A strong Mexico is good for the United States. A strong Canada is good for the United States. So I felt as a business person who spent, you know, had time in government for three and a half years that it was extraordinary. And it changed my view of the world. And I also felt that it was possible to work with across the aisle.

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  46. If it came to air infrastructure or our border crossings for goods and services were really antiquated. And we work closely, the vice president put me in charge of the high-level economic dialogue on his behalf. And we got enormous things done that to the benefit of American business and the American worker that made it much easier for goods and services to flow back and forth between our countries. It also strengthened the countries on our borders.

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  47. I loved it. I felt at first it was an honor to serve our country. And I felt like I had the privilege of bringing everything I'd ever learned in my life to try and help the American people. And I took that very seriously every single day, whether it was trying to bring more jobs here to the United States, maybe through travel and tourism policy. We were on a plan to have 100 million travelers to the United States. That's all gone awry now. I mean, but, you know, with travelers comes enormous job creation here. We were bringing factories from around the world to the United States. And so I felt that, you know, it was exciting. We were building bridges with Mexico because the supply chains of the United States very much extend into our partners in Canada and Mexico. But the infrastructure, both...

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  48. So we just kind of leapfrogged the bad technologies that we had and really pressed forward. The other thing we did is we created the Commerce Digital Service, where what we did is train people within the organization how to use our data, how to bring it to life, how to create APIs, how to code. We had over, we only ran the program for the last 18 months. We had over 3,000 people within the department go through our programs. And so it's sort of like we had trainers who helped train folks who could bring the department to life. It was exciting. Yeah.

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  49. Exactly, exactly. It was really amazing how far behind the department was when I arrived, our email didn't work, go out for four hours a day and people would tell me that was normal. And I said, no, that's not normal. It's not the way it works in the real world. No, it doesn't, yeah. And we really, we in fact took the department to the cloud.

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  50. The view was our customer was first the business community because they're the ones who are using our capabilities the most, but also was to help the rest of the government be more efficient.

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