Interesting People #1208 “Neil E. Harl, Ph.D.”


LETS LISTEN IN AS ED VISITS WITH NEIL HARL, PROFESSOR, AUTHOR, AND LECTURER.>>NEARBY I RECALL THE STORY WHERE YOU WERE AWARDED THE SCHOLARSHIP, $300 SCHOLARSHIP, DO YOU REMEMBER THAT?>>YES.>>YOU LEFT THE FARM, AND YOU WENT TO IOWA STATE.>>WENT TO OHIO STATE.>>YOU BECAME DISENCHANTED, YOU WERE HOMESICK.>>I WAS.>>UNTIL WHAT HAPPENED.>>I VOWED I WOULD STAY IN. I HAD NO WAY TO GO HOME EXCEPT HITCHHIKE. I WASN’T SURE I WANTED TO COME UP THERE ANYWAY. BUT ON THE WAY UP THE HILL TO MY APARTMENT, MY DAD WHO DIDN’T WANT ME TO GO TO COLLEGE, AND MY MOTHER DIDN’T. THEY WANTED ME TO STAY ON THE FARM. MY DAD TURNED AROUND, I WAS IN THE BACK SEAT. NEIL, I WOULDN’T HAVE AMOUNTED TO NOTHING IF YOU CAME UP HERE.>>I WALKED DOWN THE HILL, TO THE UNION, SATURDAY AT THERE FROM 3:30 TO DARK, SITTING THINKING THROUGH WHAT I WANTED TO O WITH MY LIFE SAYING I WILL STAY A YEAR I DIDN’T, MY DAD HAD HIS APPENDIX OUT.>>YOUR BROTHER WAS IN THE SERVICE.>>BROTHER WAS IN THE SERVICE. I LEFT BRIEFLY, BUT THAT WAS A LONG SUMMER, A LOT CORN ROWS. WE HAD A JOHN DEERE. I LOVED THAT TRACTOR. BECAUSE MY DAD WAS DISABLED THAT SUMMER, AND I FINALLY DECIDED, NEIL, YOU HAVE TO GET YOURSELF BACK UP TO AMES. I MADE UP A QUARTER– WE WERE ON THE QUARTER SYSTEM. I GRADUATED RIGHT ON SCHEDULE. BUT IT WAS A REAL TRANSFORMATION.>>BUT, NEIL, UNDERGRAD DEGREE IN ECON.>>NO.>>WHAT WAS THE OTHER?>>AGRICULTURE.>>AGRICULTURE.>>WELL, TECHNICAL, EDUCATION, I JUST WANTED A DEGREE TO DO SOMETHING IF I BECAME DISABLED OR I COULDN’T FARM. I WAS STILL PLANNING ON FARMING.>>BUT THEN LAW SCHOOL?>>WELL–>>AND PH.D.>>RIGHT. I WAS IN THE MILITARY FOR TWO YEARS. I CAME HOME, TO MEET WITH THE OWNER OF 320ACRES MY DAD WAS HOLDING ONTO FOR ME. I WAS PLANNING ON LEAVING SERVICE AND START FARMING. I LAID OUT WHAT I HAD IN MIND. HE SAID, NEIL, IT FRIGHTENS ME THE RISK YOU POSE HERE WITH THE LIVESTOCK SHARE LEASE, IT IS TOO GREAT. BESIDES, HE SAID, IF YOU ARE HALF SUCCESSFUL, I COULDN’T AFFORD TO PAY MY INCOME TAX. HE SAID I WILL RENT TOUR DAD, AND IF HE WANTS TO HE CAN WORK SOMETHING OUT WITH YOU. I DON’T FEEL COMFORTABLE RENTING TO YOU. I WAS SO DISAPPOINTED. I HOPPED IN A CAR AND WENT TO INDIANAPOLIS, I HAD ASSURANCE FROM GENERAL MILLS, WHEN I GOT OUT OF THE MILITARY, THEY HAD EXECUTIVE TRAINING PROGRAM, BICYCLE ME AROUND THE GENERAL MILLS DOMAIN. MY COUSIN JUST RETIRED FROM A FARMER, WHICH WAS LATER BOUGHT BY PRAIRIE FARMER, AND COLUMN, HAD NEW EDITOR FROM ILLINOIS, WAS WITH PRAIRIE FOR A LONG TIME. HE WAS THE FIRST MANAGER OF THE PROGRESS SHOWS, FARM PROGRESS SHOWS. DICK ALBRECHT. NEXT MORNING, I SAID I AM NOT A JOURNALIST. I HAD ONE COURSE IN JOURNALISM. YEAH, THAT’S RIGHT, ONLY ONE JOURNALIST ON THE STAFF. I WENT TO WORK FOR HIM, AND THEN I FELL INTO THE SPELL OF JOHN O’BEIRNE OVER AT IOWA CITY WORKING ON ARTICLES. I DROVE OVER THERE IN JUNE OF ’58, HALF DAY IN DISCUSSION. O’BEIRNE WAS VERY KIND, AND HE HELPED ME WITH MY ARTICLES, ON THE FARMER STATE.>>THEN LAW SCHOOL. YES. THEN WHEN I WALKED OUT OF HIS OFFICE, LIFE CHANGING EXPERIENCE, I APPLIED AND GOT INTO LAW SCHOOL. DIDN’T TAKE THE LSAT’S, THEN YOU DIDN’T TAKE THEM INTO YOU GOT INTO LAW SCHOOL.>>AFTER THAT.>>HE SOLD ME ON A JOINT PROGRAM. HE WAS WORKING WITH JOHN TIMONS OHIO STATE, HE WAS ECONOMIST. THEY WERE PROPOSING AGAIN I PIG TO GET PH.D. IN ECONOMICS. THAT WAS STILL PRETTY NEW.>>YOU WERE THE–>>I WAS THE GUINEA PIG. IT WORKED. TODAY, TODAY YOU HAD LECTURED THROUGHOUT THE WORLD.>>UH-HUH.>>3,300 PLUS TIMES. DO YOU REALIZE THAT, NEIL? YOU HAD HAD 29 BOOKS.>>YES.>>400 ARTICLES IN TWO VOL UP SET AND 15 VOLUME SET OF MATH YOU BENDER. I HAVE BEEN ON TV, SIX ADVISORY BOARDS.>>(LAUGHING).>>AWARDS, AND YOU LIKE THIS INTERNAL REVENUE CODE STUFF! (LAUGHING).>>I WENT BACK INTO THAT, WHERE I KEEP MY APPOINTMENT BOOK. IT IS FULL, FULL OF STUFF. I WAS TRYING TO THE OTHER DAY FIGURE OUT HOW DID I DO ALL THIS BACK WHEN WE HAD SO MANY THINGS GOING. I WAS PRESIDENT OF THE GROUP THAT FOUGHT FOR THE TELEVISION STATION, AND THAT TOOK A LOT OF TIME. I WAS IN THE FARM CRISIS AND WROTE A BOOK ABOUT THAT. TODAY WHEN I GO BACK, I REALLY WONDER HOW I GOT IT ALL IN.>>3,300 PLUS LECTURES THROUGHOUT THE WORLD.>>YES. YOU ARE NO YOUNG CHICKEN ARE YOU?>>NO. I WILL BE 81 IN THE FALL.>>YET, YOU ARE ABLE TO DO THESE EIGHT HOUR SESSIONS WITHOUT WILTING. (LAUGHING) HOW? NEIL, REVENUE CODE, THIS IS NOT FIRESIDE READING.>>NO. IT IS NOT.>>THESE ARE TWO YEARBOOKS.>>MANUALS. I DON’T COUNT THEM AS PUBLISHED BOOKS BECAUSE THEY ARE MANUALS. I PUT A LOT OF TIME INTO THESE BECAUSE IT IS CONSTANTLY CHANGING, AS YOU KNOW.>>HOW DO YOU HANDLE IT? HOW DO YOU DO THIS?>>FIRST OF ALL, YOU LEARN TO MANAGE YOUR TIME PRETTY CLOSELY. I STARTED WORKING 80 HOURS A WEEK WHEN I WAS JUST A KID, YOUNG KID. AS I SAID, I WAS BOUND AND DETERMINED. I WOULD NEVER BE VULNERABLE AGAIN. I WORKED 70, 80 HOURS A WEEK, MY WHOLE LIFE. AND I DON’T MIND THAT.>>YOU DON’T MIND THAT.>>NO. IT IS REWARDING. IT IS REWARDING.>>INTELLECTUALLY SATISFYING, LEAVE.>>LEAVING SOMETHING BEHIND IS LIFE’S GREATEST PLEASURE?>>WHY.>>NO DOUBT IN MY MIND ABOUT DOING THAT. I WILL DO IT UNTIL I BREATHE MY LAST.>>WHY?>>WHY? THE REWARD IS IN HELPING PEOPLE SEE AROUND CORNERS WHERE THEY HAVE A NEED TO LEARN SOMETHING, AND THE FACT THAT YOU CAN OPEN UP THEIR VISION, SPREAD THEIR VISION AND SEE A SOLUTION. THAT IS INTENSELY REWARDING TO ME. AND IT IS VERY POWERFUL, VERY POWERFUL. PEOPLE ASK MOO WHY DON’T YOU QUIT WORKING? MY RESPONSE, I WOULD IF WORK. IT IS NOT WORK. I HAVE PEOPLE AROUND ME, INCLUDING MY WIFE WHO THINK I SHOULD START EASING BACK. PROBLEM IS, YOU CAN’T EASE BACK. YOU EITHER GO FOR MORE AND KEEP UP-TO-DATE WITH WHAT GOING ON OR YOU GET OUT OF THE BUSINESS BECAUSE THE MINUTE YOU APPEAR NOT TO BE THE AT THE LEADING EDGE OF WHAT IS GOING ON, YOU ARE DEAD.>>THE TEXT, THE CODE, THE REGULATION, REVENUE PROCEDURES, PRONOUNCEMENTS, THAT’S EVERY DAY.>>EVERY DAY, THE FIRST THING I DO IS PULL UP MY MENU FROM THE DAY BEFORE. I DID IT THIS MORNING IN INDIANAPOLIS. AND I NOTE WHAT HAPPENED YESTERDAY. I MAKE NOTES OF THAT. I E-MAIL OFF TO MY MANAGING EDITOR IN WASHINGTON STATE WHO COLLECTS ALL THAT AND PUTS IT WHERE I TELL HIM DO, IN MY PUBLICATIONS. THAT’S A DAILY RITUAL. I WOULDN’T MISSIT.>>WHAT TIME OF THE DAY DOES THAT BEGIN?>>THIS MORNING, I WAS A LITTLE LATER, BUT THE FIRST FOUR DAYS OF THE WEEK, I WAS UP AT 4:00 BECAUSE I WOULD HAVE TO ALLOCATE ENOUGH TIME TO BE SURE I HAVE COVERED– I DON’T WANT ANYBODY IN THAT AUDIENCE TO ASK ME SOMETHING IN THE MORNING MENU, SO WHATEVER I AM DOING, I WANT TO BE SURE I START THE DAY, I HAVE GOT EVERYTHING POSSIBLE. BECAUSE THAT’S YOUR CREDIBILITY.>>NEIL, LECTURING IN THE UNITED STATES VERSUS IN THE UKRAINE, THE DIFFERENCES, SIMILARITIES?>>GREAT DIFFERENCE.>>WHAT IS THE DIFFERENCE?>>THE BIG THING IS, OF COURSE, THE LANGUAGE AND THE CULTURE, AND THE LANGUAGE, I SOLVED THAT WHEN MY SLIDES, I HAD TWO SETS OF SLIDES. AND ONE SET OF SLIDE WAS IN RUSSIAN OR WHATEVER THE LANGUAGE WAS. I HAD TRANSLATED, I HAD TRANSLATED THE CONTENT. SO I’D HAVE ONE PROJECTOR SHOWING IN ENGLISH AND IN RUSSIAN, AND I HAD NO PROJECTOR SHOWING SLIDES HOW IT IS DONE IN THIS COUNTRY, LIKE UCC ONE, I WOULD HAVE UCC ONE FORM AND EXPLAIN UNIVERSAL COMMERCIAL CODE BECAUSE THEY NEEDED TO SET IN PLACE LEGAL SYSTEM. UKRAINE NEVER HAD–>>YOU ARE CONTRIBUTING TO THE CREATION OF A LEGAL SYSTEM.>>YES, WE WERE TEACHING LEGAL SYSTEM, FREE MARKET ECONOMICS, CENTRAL BANKING, BANKING CREDIT AND FINANCE, PRETTY MUCH THE WHOLE SEGMENT OF WHAT THEY NEEDED. SEE, I WAS ASKED TO BE ON FIRST U.S. WORKING GROUP TO POLAND IN EARLY 1990. THERE WERE SEVEN OF US. WE WERE ADVISING ADMINISTRATION AS TO WHAT THE U.S. SHOULD BE DOING TO HELP THOSE COUNTRIES. WALL HAD FALLEN PRIOR NOVEMBER9, AND BUSH, PRESIDENT BUSH HAD BEEN OVER THERE IN AUGUST, AND THE SECRETARIES AGREED TO HAVE THESE TASK FORCES. I WAS ON THE TASK FORCE. I WAS CONVINCED WHAT THEY NEEDED, MARKETS, HOW ECONOMICS WORKED.>>YOU BLENDED INTEREST IN ECON WITH INTEREST IN LAW, BUT MORE SPECIFICALLY THE TAX PORTIONS OF THE LAW.>>YEAH. THE CODE AND REGULATIONS, OCCUPY 24INCHES, TWO FEET, PUTTING IT ANOTHER WAY R CAN YOU GET TWO SUBWAY ONE FOOTERS AS THE LENGTH OF THIS STUFF BECAUSE EVERY SIX MONTHS, THEY HAVE A NEW VERSION.>>JOHN O’BEIRNE TAUGHT TAX, AND HE REALLY INOCULATED ME WELL. I LOVE TAX.>>WHY?>>IT CHANGES. IT IS ONE OF THE FEW AREAS IN LAW THAT CHANGES ALMOST EVERY DAY, AND YOU HAVE THE FEELING THEY COULD REPEAL HALF OF WHAT I KNEE IN TEN MINUTES. IT IS A CHALLENGE TO STAY ON TOP OF IT.>>I WANT TO TALK A LITTLE BIT–>>PLUS, IT IS LOGICAL LINK BETWEEN LAW AND ECONOMICS, ANTITRUST ANOTHER AREA, PROPERTY LAW, COMMERCIAL LAW. I AM NOT MUCH INTERESTED IN FAMILY LAW BECAUSE IT DOESN’T RELATE QUITE THE SAME WAY TO ME. SO THAT’S WHY I HAVE NEVER GONE INTO PRACTICE. I LOVE THE AREAS I WORK IN, BUT I DON’T WANT TO HAVE TO WORK IN THE WHOLE WATER FRONT, IF YOU WILL.>>YOU WANT TO BE INVOLVED DIRECTLY IN THE PSYCHOLOGY OF GETTING A CLIENT TO DO SOMETHING.>>RIGHT.>>THAT’S DIFFICULT I AM TOLD.>>THAT’S RIGHT BUT, I HAVE TO TELL YOU I DON’T THINK I COULD HAVE HAD A CAREER THAT IS MORE REWARDING THAN THIS HAS BEEN. I FEEL THAT HONESTLY. I COULD NOT HAVE DONE ANYTHING DIFFERENTLY, THAN WOULD HAVE GIVEN MORE SATISFACTION, WAY THAT ANY MORE HUMAN BEING IS ENTITLED TO HAVE. IN LIFE, YOU COME TO A CROSSROADS AND MAKE A DECISION. WHAT I DIDN’T UNDERSTAND AS I WAS GOING THROUGH ALL THESE STEPS WAS THAT THOSE DECISIONS ARE VITAL, AND AS I LOOK BACK, I WAS LUCKY IN MAKING THE RIGHT DECISION. SO I MOVED IN THE DIRECTION THAT PROVED TO BE VERY UPLIFTING. I DIDN’T GO BACK TO THE FARM. I NOW OWN– MY WIFE AND I OWN A THOUSAND ACRES. WE ENJOY THAT. BUT I WOULD HAVE NOT BEEN VERY LONG FARMING BEFORE I WOULD HAVE BEEN RESTLESS.>>TALKING ABOUT FARMING SPECIFICALLY, THE VALUE OF ALL THE FARMLAND IN IOWA.>>YES.>>AND I RECALL IN 1940, IT WAS ABOUT $80.>>88 AN ACRE. NOW 8,000.>>8,716.>>WHAT IS THE AGGREGATE VALUE?>>ABOUT 267 OR 268BILLION. BILLION?>>BILLION.>>NOW, THE RATIO OF DEBT TO EQUITY, A LOT BORROW A LOT OF MONEY OR NOT?>>IT VARIES BY AGE OF THE OWNER. LATEST DATA SHOW THOSE OVER 75 IT IS HEAVILY PAID FOR, AND OVER ALL 75% IS FREE OF DEBT. NOW, THAT WAS NOT TRUE IN THE 1980’S, WHEN WE HAD THE FARM DEBT CRISIS. THAT ENERGIZED PEOPLE INTO REDUCING THE DEBT LOADS. SO THEIR LOAD IS NOW REALLY QUITE MODEST COMPARED TO THE VALUE OF THE PROPERTY, PLUS THOSE OVER 75 OWN 30% OF THE LAND. SO WE WILL HAVE UNPRECEDENTED, ABSOLUTELY UNPRECEDENTED PERIOD THE NEXT 20 YEARS IN TERMS OF THE AMOUNT OF REAL ESTATE THAT WILL CHANGE HANDS ONE WAY OR ANOTHER. LET’S TALK ABOUT THAT, MY UNDERSTANDING FROM THE FEDERAL POINT OF VIEW, TAX RATE, 10,000,680.>>THAT’S RIGHT.>>WHAT ABOUT THE EXCESS. HOW DID SOMEONE PASS SIGNIFICANT NUMBER OF ACREAGE TO THE NEXT GENERATION WITHOUT THE GOVERNMENT TAKING A CHARGE EQUAL TO 40%?>>WELL, THERE ARE WAYS YOU CAN DO IT. ONE– PULL BACK AND LOOK AT THE BIGGER PICTURE, THE QUESTION IS WHAT IS THE PUBLIC INTEREST IN HAVING FARMS GET BIGGER AND BIGGER AND BIGGER? I HAVE GONE THROUGH APPEARED FROM THE 30S TO THE PRESENT TIME WHEN FARMLAND HAS GONE FROM AVERAGE OF 168 OR THEREABOUTS TO THE PRESENT TIME, VERY, VERY LARGE FARMS. THAT’S NOT EXACTLY A REAL PLUS FOR THE COMMUNITY. IN FACT, IT DESTROYED THE RURAL COMMUNITY BECAUSE YOU DON’T HAVE AS MANY HAIRCUTS. YOU DON’T HAVE MANY PEOPLE BUYING FOOD.>>OUR ACRES WAS HOMESTEADS, 19TH AND 20TH CENTURIES. THAT’S ONE. AND THAT ISN’T THE ONLY THING IS FARMING. THAT’S PROBABLY TWO-THIRDS OF WHAT HE IS FARMING. WE HAVE SEEN A CONSOLIDATION THAT HAS BEEN VERY HARMFUL FOR THE RURAL COMMUNITY IN MANY WAYS. SO ONCE IN AWHILE, I HAVE TO PULL BACK AND ASK WHAT IS THE PUBLIC INTEREST HERE? IS THE PUBLIC INTEREST ENCOURAGING FARMS TO GROW LARGER AND LARGER OR SHOULD EACH GENERATION HAVE SOME RESPONSIBILITY. BECAUSE ALL GREW UP IN THE 30S TENDING TO BELIEVE WE DON’T WANT OUR CHILDREN AND GRANDCHILDREN TO SUFFER WHAT WE DID IN THE 30S. BUT THAT HAD ITS PLUSES. I THINK THERE IS NO DOUBT WHAT BUSH DID TO ECONOMIC GROWTH RATE OF THE COUNTRY IMMENSELY BECAUSE CLIMBING AND CLAWING AND GETTING THEMSELVES UP OUT OF POVERTY. WE DON’T WANT TO GET TO THE POINT WHERE FULL TIME EMPLOYMENT ISN’T ABSOLUTELY ESSENTIAL FOR LIVING. WHETHER IT ISN’T PUBLIC INTEREST TO PASS THIS ALONG TO THE CHILDREN. THE CHILDREN NEED TO HAVE SOME OBLIGATION. I THINK WE NEED TO HAVE SOME INCENTIVE, AND NOT HAVE EVERYTHING JUST HANKED TO THEM. WE TOLD OUR TWO SONS IF WE END UP EVEN WITH BOARD THEY WILL BE SURPRISED WE THINK PLENTY OF THEM. BUT WE ARE ALSO CHARITABLE GIVING IN MAJOR WAYS BECAUSE WE BELIEVE IT IS NOT IN THE PUBLIC INTEREST TO PASS ALONG INCREASING AMOUNTS OF WEALTH TO THE CHILDREN. WE THINK THEY NEED TO HAVE SOME BURDEN TO BE PRODUCTIVE CITIZENS THEIR ENTIRE LIFE.>>I HAVE HEARD IT SAID THE OBJECTIVE IS PROVIDE THE DESCENDANTS WITH ENOUGH SO THAT THEY CAN DO WHAT THEY ARE PASSIONATE ABOUT, BUT NOT ENOUGH SO THEY CAN DO NOTHING.>>THAT’S EXACTLY RIGHT.>>DO NOTHING IS NOT GOOD.>>MY PARENTS TOLD ME WE ARE NOT GOING TO SUPPORT YOU IN COLLEGE. THEN I GOT MARRIED AND MY WIFE HELPED. PAID FOR ALL OF MY COLLEGE, WE DID SO, AND WE HAD NO DEBT WHEN WE LEFT BACHELOR’ DEGREE AND WIN THE TO THE MILITARY. BUT I WORKED 30 HOURS A WEEK, ALL THE WAY THROUGH COLLEGE. AND WE MANAGED TO DO THAT. I THINK THE CHALLENGE HERE NEEDS TO BE PLACED ON THE CHILDREN. I THINK GIVING THEM TOO MUCH TOO EARLY ISN’T HELPFUL TO THEM. WE HAVE TRIED TO DO THAT WITH YOUR SONS, BUT IT HAS BEEN MORE DIFFICULT BECAUSE THEY SEE ALL THEIR FRIENDS SAY “WELL, THEIR PARENTS ARE REALLY GIVING THEM A GOLDEN PATH FORWARD.” SO THEY HAVE NEVER REALLY COME OUT AND SAID WE THINK YOU SHOULD BE MORE GENEROUS. WE HAVE TOLD THEM THAT WE WILL INVEST AS MUCH IN THEM AS WE POSSIBLY CAN, BUT IF THEY END UP WITH NOTHING ELSE MORE, THEY SHOULD CONSIDER THEMSELVES LUCKY. WE ARE WILLING TO INVEST IN THEM WITHOUT LIMIT. BUT WE ARE RELUCTANT ABOUT ASSURING THEM THAT THERE IS ENOUGH THERE AT THE END OF THE ROAD THAT THEY DON’T NEED TO WORK TOO HARD. THAT’S THE LINE I THINK YOU NEED TO DRAW. I DON’T THINK IT IS GOOD FOR THE COUNTRY TO HAVE NO CHALLENGE TO PEOPLE COMING UP THROUGH THE RANKS, YOUNGER INDIVIDUALS. HOW DO YOU CORRELATE THAT WITH WHAT I AM HEARING, FREE CELL PHONE, FREE MEDICAL CARE PAID FOR, STUDENT LOANS FORGIVEN, AND I DON’T HAVE TO REALLY DO ANYTHING.>>THIS IS TROUBLING. WE HAVE TENDED TO REMOVE A LOT OF RISK IN LIFE. SOCIAL SECURITY HAS BEEN A MAJOR PART OF THAT. MEDICARE AND MEDICAID, PART OF THAT. WE HAVE OTHER PROGRAMS WHICH I SUPPORT PARTICULARLY FOR THOSE WHO HAVE SOME GRIEVE HANDICAP, WHETHER MENTAL, EMOTIONAL, PHYSICAL, OR WHATEVER IT IS. I WAS LUCKY. I WAS WHITE MALE, AND SO ALL THE ODDS WERE IN MY FAVOR, IF YOU WILL. BUT WE HAVE GOT TO KEEP IN MIND THERE ARE PEOPLE IN SOCIETY WHO DON’T HAVE THAT KIND OF–>>I THINK EVERYONE AGREES THAT– I WOULDN’T SAY SPECIAL NEEDS, BUT THE HANDICAP, SOFTER SIDE, WE HAVE A RESPONSIBILITY.>>RIGHT.>>AS CIVILIZATION TO TEND TO THOSE.>>EXACTLY.>>THE ISSUE IS, ARE YOU GOING TO HAVE GRANDCHILD WITH MASERATI! (LAUGHING) TAX IS DISTRIBUTION TOOL.>>IT IS A DISTRIBUTION TOOL. I AM SUPPORTIVE OF CONTINUATION OF THE FEDERAL ESTATE TAX I THINK, A, IT GENERATES SOME REVENUE. AND, B, I THINK IT DOES PROVIDE SOMETHING FOR THOSE NOT QUITE AS FORTUNATE. I WILL DIE WITH A SMILE ON MY FACE, WHEN MY ESTATE HAS TO PAY ESTATE TAX BECAUSE I AM CONVINCED THAT’S A HEALTHY PART OF OUR ECONOMIC SYSTEM.>>BUT INFRASTRUCTURE CREATED TO AVOID–>>I KNOW THAT (LAUGHING).>>I AM A PART OF THAT. I HAVE A LITTLE TROUBLE ONCE IN AWHILE, WHEN I AM LAYING OUT WHAT OPTIONS THERE. SOME OF THOSE I HAD SOME GENUINE QUESTIONS ABOUT.>>NOW, I’D LIKE TO GO BACK TO THE DEDICATION ADDRESS OF THE HARL COMMONS, OCTOBER21? DO YOU REMEMBER THAT.>>YES.>>AT THAT POINT, YOU HAD THE MOST PRESSING GLOBAL CHALLENGE. WHAT IS IT?>>LOCAL CHALLENGE IS HUNGER, PEOPLE DYING OF STARVATION BECAUSE THAT FUELS THE ENERGY BECAUSE THEY LOOK AT US, AND THEY THINK WE ARE EXTREMELY WEALTHY IN THIS COUNTRY. AND THEY ARE NOT. THEY HAVE LITTLE FUTURE. THEY CAN’T EVEN FEED THEIR FAMILIES. THEY DON’T HAVE THE INCOME TO SEND THE CHILDREN OFF TO SCHOOL. SO, THE PROBLEM IS BASICALLY WE ARE APPROACHING THIS QUESTION OF FRIENDLINESS WITH OTHER COUNTRIES. WE HAVE GOT TO HELP THEM SO THEY HAVE A BETTER FUTURE THAN THEY HAVE RIGHT NOW. THREE MOST IMPORTANT THINGS IN TERMS OF DEALING WITH THE SITUATION, ESPECIALLY SOLVING HUNGER PROBLEM, THREE MOST IMPORTANT THINGS ARE INCOME, INCOME, AND INCOME, IN THAT ORDER. I HAVE BEEN PREACHING THAT BECAUSE YOU HEAR SO MUCH. WE HAVE GOT TO INCREASE FOOD PRODUCTION BY FIVE-FOLD OR SOMETHING LIKE THAT BY 2050. THERE IS ENOUGH ECONOMIC INCENTIVE. FARMERS WILL RESPOND TO ECONOMIC INCENTIVE, THAN THE WALL STREET JOURNAL TELLING THEM TO PRODUCE MORE FOOD. WHAT WE REALLY NEED TO FOCUS ON ARE THOSE FACTORS, THE PEOPLE IN THE POOREST PARTS OF THE WORLD, WITH JOB, WITH FUTURE, WITH ENOUGH OPPORTUNITY TO BE ABLE TO FEED THEIR FAMILY, HAVE A LIFE, LOOK FORWARD TO SOMETHING. THEY TEND TO VIEW THEM AS THEM SELVES IN A LOCKED SYSTEM WITH LITTLE FUTURE. SOMEONE COMES ALONG AND SAYS WE NEED RADICALS LIKE YOU TO FIGHT THE INFIDELS IN THE UNITED STATES. IT WE HAVE GOT TO TAKE A LONG TERM VIEW, WHICH IS TO WORK ON DEVELOPMENT. BIGGEST PROBLEM IS AFRICA. WE HAVE SEEN SOUTH KOREA. WE HAVE SEEN VIETNAM EVEN. WE HAVE SEEN CHINA NOW, AND BANGLADESH GO THROUGH THIS PROCESS. THEY HAVE COST LABOR. THEY ARE GAINING GROUND BECAUSE THEY ARE ATTRACTING JOBS FROM UNITED STATES. THAT HALFWAY– UPSETS SOME PEOPLE IN THE UNITED STATES BECAUSE THEY ARE LOSING JOBS. WELL, IT IS PART OF LONG-TERM PROCESS THAT IS RAISING THE REST OF THE WORLD. WE HAVE GOT TO REALIZE THAT HAS A LINK TO OUR OWN SECURITY. THE WORLD IS NOT GOING TO BE A SECURE PLACE IF WE HAVE HIGH LEVELS OF WEALTH IN THIS COUNTRY AND POVERTY IN OTHER PARTS OF THE WORLD. WE JUST CAN’T EXPECT TO HAVE SECURITY IN THIS COUNTRY. SO MY ARGUMENT IS OUR PRIORITIES SHOULD BE PLACED ON DOING EVERYTHING CONCEIVABLY POSSIBLE TO HELP ELEVATE THE STANDARD OF LIVING IN THOSE COUNTRIES. THE FIRST THING IN AFRICA IS SYSTEM OF GOVERNANCE. IT IS INFRASTRUCTURE. IT IS HEALTH CARE. IT IS PROVIDING INCENTIVES FOR BUSINESSES TO LOCATE THERE, AND PROVIDE JOBS FOR THOSE PEOPLE. I THINK IT IS THE BIGGEST CHALLENGE OF OUR GENERATION, AND I THINK WE NEED TO REALLY BE VERY SUPPORTIVE OF THAT. AND HOPEFULLY MORE THAN JUST THE UNITED STATES WILL BE ALLIED TOWARDS THAT EFFORT. BUT I FEEL VERY STRONGLY ABOUT THAT.>>ROLE OF EDUCATION?>>ROLE OF EDUCATION IS CRITICAL. ABSOLUTELY CRITICAL. WE THOUGH IF WE DON’T FUND EDUCATION, THAT OUR PEOPLE ARE GOING TO BE COMPETING WITH MILLIONS AROUND THE WORLD WHO IS SIMILARLY EDUCATED WE ARE IN A GLOBAL MARKET NOW. IT WASN’T THE CASE WHEN I WAS A KID. BUT IT IS NOW. SO IF YOU DON’T ELEVATE YOURSELF WITH EDUCATION, YOU ARE BASICALLY GOING TO BE COMPENSATED ON THE BASIS OF WHAT EVERYBODY ELSE AROUND THE WORLD IS COMPENSATED AT WITH SIMILAR ABILITIES, SIMILAR SKILLS AND AMBITION. THAT SHOULD BE ENOUGH INCENTIVE TO GET PEOPLE GOING IN THE UNITED STATES. BEYOND THAT, IT MEANS WE SHOULD BE PLOWING MORE RESOURCES INTO EDUCATION, IN MY VIEW BECAUSE OUR FUTURE REALLY DEPENDS HEAVILY UPON IT UNLESS WE WANT TO BE COMPENSATED SAME WAY AS OTHER PEOPLE AROUND THE WORLD WITH SIMILAR EDUCATION. WE DON’T HAVE THE SHIELD OF OUR NATIONAL CHARACTER HERE AT THE BORDER. WE ARE OPENED UP AT BORDERS. NOW WE HAVE FREE TRADE, CLOSE TO FREE TRADE. WE ARE NOT THERE YET. BUT IT MEANS RETURNS TO LABOR AND RETURNS TO MANAGEMENT AND RETURNS TO LAND TREND TOWARD THE COMMON LEVEL WHEN YOU HAVE FREE TRADE. PART THAT HAVE IS THAT IS REALLY CRITICAL IS RETURNS OF LABOR. YOU CAN’T EXPECT IF YOU HAVE OPEN BORDERS, TOTALLY FREE TRADE. YOU CAN’T EXPECT WITH 8TH GRADE EDUCATE YOU WILL BE COMPENSATED MUCH DIFFERENTLY IN THIS COUNTRY THAN YOU IF YOU WERE IN AFRICA. ONE PROMISE, DON’T STOP. (LAUGHING) OKAY!>>YOU ARE ALMOST ALONE IN THAT. MOST OF THE PEOPLE AROUND ME SAY, HARL, WHY DON’T YOU QUIT WORK? MY RESPONSE; I WOULD IF IT WAS WORK. IT IS NOT. EVERYTHING I DO, IT IS FUN. I MEAN THAT GENUINELY. MEAN THAT GENUINELY. NEIL, THIS HAS BEEN FUN. THANK YOU. THANK YOU.

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