A Political and Economic Basis for Innovation

America 3.0

New Reality 1

Food Crises & Revolution

Third Shock in 4 years

Population Explosion

The Coming Water Crisis

Ethnic Tensions

Starvation=Migration

European Muslim Tension

Chinese Dissent

According to the New York Times authorities recorded 127,000 so-called mass incidents in 2010

Balance of Power

New Reality 2

Gun Control Laws

Blue subsidizes Red

California paid $318,000,000,000 in Federal Taxes in 2010

Rural Power

215,000 citizens

18,000,000 citizens

Today, with the filibuster, 21 of the 50 states, representing 11 percent of the population, can muster the 41 votes to stop a majority in the Senate.

Gridlock

This does not have to be our future.

“Congress has largely been reduced from a lawmaking entity to a political operation.”-New York Times, July 12, 2013

Progressive Federalism

“It is one of the happy incidents of the federal system that a single courageous state may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.” –Justice Brandeis

False Narratives

America 3.0

Energy independent Reduced carbon

footprint Highly educated

public Reduced Inequality Fiscal Sanity

How do we get there?

America 1.0

“We shall be as a city on a hill. The eyes of the world will be upon us…we must be willing to abridge our selves of our superfluities, for the supply of others necessities”-John Winthrop

America 1.0 We hold these truths to be

self-evident, that all Men are created equal, that they are endowed by their creator with certain unalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness

Thomas Jefferson It will be our policy to

cultivate tranquility at home and abroad and extend our commerce as far as possible

George Washington

1776-1915

Federalism

“The true theory of our Constitution is that the states are independent as to everything within themselves, and united as to everything respecting foreign nations.”-Thomas Jefferson

Abandoning Federalism and Anti-imperialism

If America were a company

“We must lower the center of gravity at IBM”-Sam Palmisano, former CEO

America’s Advantage

Freedom and Equality

Tranquility and Trade

Federalism and Experimentation

The Public Good

LocalFederal

America 1.0America 1.0

It worked pretty well

The Inventive Society

America 2.0-Making the World Safe for Democracy

1917-2012

The Neoconservative Gospel

The twin poles of the Neoconservative philosophy first elucidated by Irving Kristol in The Public Interest in 1965: In domestic affairs the

national government should shrink (by cutting taxes and business regulations)

In foreign affairs the government should grow (by becoming the world’s sole military superpower).

Reagan & Bush’s Legacy

Budget Priorities

The Free Rider Problem

The National Security State

Rise of the Plutocracy

Savage Capitalism

The Crash of 2008

Productivity & Wages

“There appears to be a new tendency to substitute against labor. It’s permanent, as long as there are alternatives like outsourcing and robotics.”-Allen Sinai

The Outsourcing Revolution

Robots & Jobs

Labor vs. Capital

“Only 30% of the American workforce is actively engaged in their work”-Gallup

Oligopoly

Number and Percentage of U.S. Manufacturing Industries in which Largest Four Companies Accounted for at Least 50 Percent of Shipment Value in Their Industries

How the Other Half Lives

Bottom 2 Quintiles (40% U.S. Population)

Recovery without employment

4 million fewer workers

Fiscal Cliff or Sanity?

Reduce our Military Footprint

Declining Foreign Oil Dependence

Renewable Energy

That’s enough for 600 Million lightbulbs

The Soft Power Era

Scale and Fragmentation Coexist

Proctor & Gamble, Coca Cola, WalMart, Pepsico, Colgate Palmolive, Kimberly Clark. General Mills, Kraft, Kellogg, Costco, Whole Foods, Altria, Mondelez

VDC

Jobs, Sustainability and Education

Progressive Federalism

Reversal of Fortunes

Energy Technology Efficiency

Invest, Divest & Prosper

Plug-In Hybrids

Modern Nuclear Power

Sustainable Agriculture

Steinbeck Innovation Cluster

Transportation and Walkable Cities

LA-San Francisco in 2 hours with minimal pollution

Federalist Health Care

California Lifestyle

Health Behavior

Schools

Education

Double Teacher Salaries U.S. High School

Teacher-$36,000 (1.2x average income)

Korean High School Teacher-2.5x average income

Cut State University Tuition•1978 tuition cost for a California Resident-$400•2012 tuition cost for a California Resident-$21,000

The Virtuous Circle

A Cambrian Moment

Cloud Computing Graphic Processing Chips/systems-

GPU’s Social Networks Big Data Analytic Engines Sentiment Analysis 2nd Screen-ubiquitous computing Transmedia 5D-building immersive worlds

The Imagination Economy

The Magic of Innovation

The Return of the Golden State