A New Economic Era: From Profit-Driven To Purpose-Driven by Jeremy Rifkin (Documentary)

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A new economic era: from profit-

driven to purpose-driven; by Jeremy
Rifkin(Documentary)
Published on July 28, 2019
Mirela Xhota
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A new economic era: from ownership to sharing, from profit-driven to purpose-driven. From
economy to ecology....by Jeremy Rifkin (#GeniusSpeech)
The Third Industrial Revolution: A Radical New Sharing Economy
This article includes the full transcript produced and spoken by Jeremy Rifkin
(which I spent hours in typing the speech); based on You Tube video above. What is
surprising to me is that, I wasn't able to find the full transcript of this video,Messaging
which I
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loved, on the internet. Therefore, I decided to type it all here3on LinkedIn,
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learn the way I did. (my promise to you)...In addition to that, where the transcript
provides examples of companies, new terminology or executions of certain
phenomenon , I have provided links to the news from the internet.
This video, in my opinion, deserves full attention. I have heard this video over 25 times,
again and again and I have personally learned, relearned and learned again.
This video is published on Feb 13, 2018 by VICE production.
About the Author: Jeremy Rifkin is an economic and social theorist and the author of over
twenty books including The Zero Marginal Cost Society, The Third Industrial Revolution
and The Empathic Civilization. He is an advisor to the European Union and The People's
Republic of China, and a principal architect of their Third Industrial Revolution plans.
You can order: "The Third Industrial Revolution" book, via Amazon. Click here.
The Third Industrial Revolution: A

Radical New Sharing Economy
The global economy is in crisis. The exponential exhaustion of natural resources, declining
productivity, slow growth, rising unemployment, and steep inequality, forces us to rethink
our economic models. Where do we go from here? In this feature-length documentary, social
and economic theorist Jeremy Rifkin lays out a road map to usher in a new economic
system. A Third Industrial Revolution is unfolding with the convergence of three pivotal
technologies: an ultra-fast 5G communication internet, a renewable energy internet, and a
driverless mobility internet, all connected to the Internet of Things embedded across society
and the environment. This 21st century smart digital infrastructure is giving rise to a radical
new sharing economy that is transforming the way we manage, power and move economic
life.
With the Internet of Things infrastructure, Big Data and analytics can be used to develop
algorithms that increase productivity and dramatically lower the marginal cost to near zero
in the production and distribution of an increasing array of goods and services. Today,
millions of people around the world are producing and sharing things like videos, music,
contributions to Wikipedia, renewable energy, homes, and automobiles.
In the sharing economy, ownership gives way to access, sellers and buyers are
replaced by providers and users, social capital becomes as important as market
capital, consumerism is upended by sustainability, and quality of life indicators
become more important than GDP. The sharing economy can become a circular
economy in which goods and services are redistributed among multiple users, dramatically
reducing society’s ecological footprint.
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But with climate change now ravaging the planet, the transition to3 a new economic
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to happen fast. Change of this magnitude requires political will and a profound ideological
shift
The Economic Downturn is fuelling growing discontent toward governing

institutions and spawning extreme political movements around the world.
Watch this video and I hope you learn from the Transcript below...
Transcript...by Jeremy Rifkin:
[Applause]
3:20 Let me start on a very sombre note. I hope it well end up being a liberating
reflection. You'll have to judge.
3:37 GDP is slowing all over the world everywhere. And the reason is productivity
has been declining or twenty years all over the world.
3:52 The result: Unemployment is very high everywhere. And nowhere is it more
pronounced than among the Millennial Generation coming into workforce. Our
economists tells us that we can look forward to slow productivity and slow growth
for the next 20 years. And let me do the math for you: At the end of two industrial
revolutions, in the 19th and 20th century, here's the equation:
4:26 We have to admit that half the human race is far better off today than our
ancestors were before we began the industrial experiment.
4:29 Granted? Also we need to acknowledge that 40% of the human race are making
$2 a day or less. And arguably they are worse off than their ancestors were before
industrial experiment.
4:48 The final equation: The industrial era, while it's benefited half the human
race in detriment to other half of the human race, the well-off, the very wealthy have
done quite well. Today, 62 wealthiest human beings in the world today (we could put
them in this little section of the room) their combined wealth equals the accumulated
wealth of one half the human population living on Earth. Three and a half billion
people...
Notes: The world population was estimated to have reached 7.5 billion in
April 2017. The United Nations estimates it will further increase to 11.2
billion in the year 2100.)
5:19 There's something really dysfunctional about the way the human family is
organizing its economic relationships on this Earth. It's clear we're in a long-term
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structural economic crisis at the end of the 2nd Industrial Revolution.
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industrial air has given rise to a much more profound crisis- an environmental
crisis.
5:49 We have spewed massive amounts of CO2 and methane and Nitrous oxide into
the atmosphere of this planet, to create this industrial way of life. And now we have
so much C02, methane and nitrous oxide in the atmosphere that is blocking the sun's
heat from getting off the Earth. We are in a real time climate change.
6:02 This is no longer a theory. This is no longer looming on the horizon. This is no
longer imminent. Climate change is now at the house, in the door. What's terrifying
about climate change and unfortunately it's never explained, before if it were
explained, our human family would be justifiable terrified and motivated and driven
to begin to transform this planet. Climate change, changes the water cycles
on the Earth. This is what is all about and its never explained. We're the
watery planet our satellite probes go to other planets and what's the first thing we
look for?... Water... No water? Not interested!
6:44 Recently they discovered what they think is dirty water on Mars and everybody
is thrilled. Our ecosystems on Earth have developed over millions of years based on
the water cycles, the cloud cycles that traverse them across the Earth. For every one
degree that the temperature of the planet goes up ( because of industrial induced
CO2 emissions), the atmosphere is actually sucking up 7% more prediction
from the ground; the heat is forcing the precipitation into the clouds, so we're
getting more concentrated precipitation, more violent water events, but they're more
infrequent, throwing the entire water cycle of the Earth off kilter.
7:37 More blockbuster winter snows. Eight feet in Boston at last season? My gosh!
More dramatic spring floods- that flood in the Carolinas, remember? They said this
flood only will occur once every thousand years. It's the new normal.... More
prolonged summer droughts. My wife and I were in British Columbia and we're
coming into Vancouver. The pilot says, "We have some smoke coming in." I turned to
my wife and I said, "You mean smog?" No, he meant smoke. Wildfires from British
Columbia to California. Summer droughts and wildfire. We have Category 3, 4, and
5 hurricanes now - so dramatic that they're destroying infrastructure and killing
people all over the world. That hurricane that hit the Philippines- This was the most
powerful hurricane ever recorded. This is the new normal...What I'm saying here, is
that climate change, is dramatically changing the water cycles, they're on an
exponential . They're on an exponential curve. This is absolutely frightening. It's
terrifying. And, if you are a young millennial about the start a family, If you're a
parent here or a grandparent; I want you to listen to this: "Our scientists
now tell us that we are in the sixth extinction event of life on Earth. It
doesn't even make the headlines."
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9:19 This is the most dramatic story a human family has ever
3 faced. There
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five mass extinction events on Earth, in 1450 million years. And each time the
chemistry of the planet shifts very quickly (there's what we call a turning point) and
massive out of life, it takes upwards of 10 million years, to get new life back on
Earth.
9:41 Our scientists now tell us: "we are in the sixth extinction event". This is not a
model- we're chronicling it in real time. And what they're saying is that over the next
seven decades (and many of you will be around for a lot of that, and your children
will), we could lose over half the species of life, that now inhabits this little oasis in
the universe. As my wife says, we just are not grasping the enormity of this moment.
We might acknowledge climate change, but we're going on as business as usual, with
a little green washing.
10:23 99.5% of all the species that ever been on this planet have come and gone.
Those are not good odds. And what's interesting is, human beings... We're the actual
youngest species, we're the babies. Anatomically modern humans have only been
here about 200,000 years.
10:47 There's no guarantee we're gonna make this. And the new studies that have
just come out, they're even more terrifying because...They're seeing the
freshwater melts in the Artic, now in Greenland and now in Antarctica, much
quicker than we expected changing the ocean currents. And they're talking about
storms that are beyond anything we can imagine, that we've ever seen in human
history by the end of this century.
The Third Industrial Revolution: A Radical New Sharing Economy
11:47 Talking about the major coastal cities, where much of our urban population
is... underwater. This is not a century from now. This is in the lifetime of many
people, (who are four and fine now and will be my age)when we're in full steam into
this new era, this abyss. So what do we do?....
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11:43 We need a new Economic Vision for the World...
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11:55 It has to be compelling. We needed a game plan to deploy that vision into and it
needs to be quick. It needs to move as quickly in the developing countries; as in the
industrialized nations. If we have any chance of arresting the worst of this climate
change.. we're gone have to be off carbon in four decades everywhere. This is
beyond anything we're talking about at global conferences. How do we
begin to tackle something of this magnitude?
12:21 We need to step back and reflect on how the great economic paradigm shifts in
history occur. If we know how they occur, we're gonna get a compass that allow us
to navigate a new journey to completely transform the way we handle life on Earth.
Chapter One: The Great Economic Revolution in History
12:46 There have been at least seven major economic paradigm shifts in history, and
they're very interesting anthropologically because they share a common
denominator. And that is at a certain moment of time, three technologies emerge and
converge to create what we call in engineering "a general- purpose technology
platform." That's a fancy way of saying ..."a new infrastructure."
It fundamentally changes the way we manage power and move economic life.
13:11 What are those three technologies? First, new communication

technologies; to allow us to more efficiently manage our economic activity.
Second, new sources of energy; to allow us to more efficiently power our
economic activity And third, new modes of mobility- transportation
logistics- to allow us more efficiently move the economic activity.
13:37 So when communication revolutions join with new energy regimes, and new
modes of transportation, it does change the way we manage power and move
economic life. It changes temporal spatial orientation. It changes our habitats. It
allows us to integrate in larger units.It actually even changes consciousness and
governance.
14:02 Let me give you two examples: First Industrial Revolution, 19th century;
second industrial revolution 20th century. The Brits took us into the first Industrial
Revolution and first there was a communication revolution. They invented steam
power printing. No more manual print presses. Steam power printing was a big leap
forward, because it allowed us to mass produce very cheap print quickly.
Then, in the second half of the 19th century.... The Brits lay out a telegraph system
across the British Isles. Steam power printing and the telegraph: those
communication technologies then converged with a completely new source of energy
in Britain called: coal.
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14:42 But how are they gonna take the coal and harvest it? They
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engine. This is ingenious. They figured out that they should put the steam engine on
rails for locomotives, national transport and logistics. Urban life...the Industrial
Revolution... steam power.
15:10 Second Industrial Revolution: The United States. Centralized

electricity and especially the telephone. I know we think the internet's a big deal but
telephone was a really big deal. All of a sudden people could communicate at vast
distances at the speed of light.....later radio and television; these communication
technologies converge in the United States with a completely new energy source.
Cheap Texas oil. Then, Henry Ford put everybody on the road with cars, buses and
trucks.Second Industrial Revolution changed the way we manage power and more
economic life.
That second Industrial Revolution took us through the 20th century. It took the
whole world through the 20th century. It took the whole world through the 20th
Century; and it peaked in July 2008.
16:17 Oil went to $147... Remember that month? In that month, Brent crude oil
had a record price of $147 dollars on world markets, and, when it hit that
record price, the global economy shut down. Silence...Completely gone. That was the
economic earthquake.
16:51 The collapse of the financial markets 60 days later was the aftershock.
Mayhem, carnage, and bloodbath. Also called Black Monday on Wall Street. Because
it was perhaps the worst financial collapse since the Great Depression. Our policy
leaders are still dealing with the aftershock, not the Earthquake. Why was it the
Earthquake? Because the entire Industrial Revolution; that we've gone through is all
dependent on a carbon deposits of a previous period in history. You know, if we look
back let's say that make it through this next period of history... I always wonder
what will future generations think of us, maybe in a hundred thousand years from
now. They'll say, " Oh, yes, we remember them."
17:45 There was the Bronze Age, the Iron Age. These were the fossil people. They dug
up the burial grounds of the Carboniferous era and created a short-lived dramatic
and very dangerous civilization. t's all about fossil fuels. Our fertilizers and
pesticides are made out of fossil fuels.
18:07 Most of our pharmaceuticals products are made out of fossil fuels. Our
synthetic fibre, our power, our transport, our heating lights- all made out of moved
by fossil fuels. When the price of oil goes over ground $95 a barrel, all the other
prices go up. When we get into the zone of around $115 a barrel, price become so
high, the purchasing power slows. This is the sunset of a great industrial era. In
2009 oil went down to 50 a barrel, because the economy had shut down. There was
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no activity. In 2010 we tried to regrow inventories, so oil prices
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the other prices go up.
18:50 In 2014 we hit a new peak of $114 or $115 a barrel, purchasing power slowed
down again. This is a convulsion of growth-shutdown, growth-shutdown. And the
only reason oil went down in the last few years to $30 a barrel; is now the fossil fuel
industry is fighting among themselves; In the sunset. OPEC said, "We're gonna keep
the oil spigot open."
19:16 "We're gonna flood the world with oil." And that's gonna take the price down
the $30 a barrel and wipe out our new competitors; the more exotic fossil fuels: shale
gas in the US, tar sands in Canada. "Guess what? They wiped them out- only took a
year and a half.
19:31 Bankruptcies across the USA in the shale gas industry. And now tar sands in
Canada. The pipeline's not happening. And do you hear anybody talking about
energy independent right now? It's over! And, as soon as the bankruptcies complete
themselves, the oil prices are now starting to go back up. But now we have failed
states where there's oil production. We have failed States. So this is a volatile
convulsive sunset over the next 40 to 50 years- an unstable world.
Where do we head from here?
20:32: Let me share an anecdote. When Angela Merkel become Chancellor of

Germany, she asked me to come to Berlin, in the first couple of weeks of her new
government, to help her address the question of how to grow the Germany economy
on her watch. Now, remember: In terms of per capita, Germany is the most robust
capitalist market economy in the world. When I got to Berlin, the first question I
asked the new chancellor- I said, "Madam Chancellor how we are you gonna grow
the German economy when your businesses are plugged in to a platform, an
infrastructure of centralized telecommunication, fossil fuel nuclear power, internal
combustion, road rail water, and air transport- and that infrastructure peaked in its
productivity in Germany, years ago?
20:53 Let me talk about productivity. This is Crucial
The Science of Productivity
21:04 Our economist are lamenting. They're asking, " Why is productivity been
declining for 20 years? "We have all these new killer products coming out of Silicon
Valley." Why is productivity declining? I am gonna share with you a dirty little
secret, in economics that economists don't like to talk about.
21:15 We used to believe that there are two factors that drive productivity in
standard economic theory: Better machines and better performing workers. But
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when Robert Solow won the Nobel Prize for economic growth
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1980s, he actually let the little secret out. He said, "we've got a problem here." When
we trace every single year of the Industrial Revolution, these two factor- better
machines, better workers ; it only accounts for about 14% of the productivity. So
Robert Solow asked the big question: "Where does the other 86% of productivity
come from?" Don't know...?
21:54 Moses Abramowitz, the former head of the American Economic Association
said: "This is a measure of our ignorance in motion unless disrupted."
22:02 Now wouldn't you think economists would know where productivity comes
from, because that's the basis of the discipline? Here's what they don't know...When
classical economic theory was penned in the late seventeen hundreds, the Vogue was
Newton's physics. Newton was the big guy in town. Everybody wanted to use
Newton's metaphor, so they could be more scientific, because he has discovered the
laws that run the universe- supposedly. The economists also fell in line. For example,
you know Newton's Law: "For every action there's an equal and opposite reaction";
Adam Smith borrowed that metaphor for his invisible hand of supply and demand.
"For every action on the supply side there's an equal and opposite reaction on the
demand side."
22:42 Newton's law: "A body in motion stays in motion unless

disrupted."
22:45 Baptiste Say borrowed that metaphor- the French economist. And he suggested that:
"well supply will stimulate demand, which will generate supply, which
will stimulate demand - unless disrupted."
22:55 All of our economic theory, if you go back and take a look at it- it's all based on
Newton's metaphors in physics. There's only one problem with this: Newton's
physics has absolutely nothing to do with economics. Nothing. Nothing....
23:14 Economics is governed by the same laws that govern the universe, the solar
systems, the biosphere on Earth, and every single thing you and I do in our economic
life while we're here on this planet.
23:28 Here are the two laws that govern everything in the universe, including our
economy. The first law of Energy says: "All the energy in the universe is constant."
Since the Big Bang, no new energy has been created. No energy has been destroyed
since the Big Bang. That's the conservation law.
23: 45 The second law of energy says that's true that the energy isn't created or
destroyed, but is always changes form, but only in one direction, from concentrated
(The Big Bang) to dispersed through the galaxies. From hot to cooled off through the
galaxies. From order to disorder...From available to unavailable...Entropy is a
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measure of the energy that's still there, but not available to do
3 useful work.
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three systems that we can talk about in thermodynamics:
An open system that exchanges matter and energy with the outside
world;
A closed system, which exchanges energy with the outside world, but
does an exchange matter
And an isolated system, which doesn't exchange matter or energy

with the outside world.
24: 32 The Earth in relation to the solar system and sun is B. We get plenty of energy
from the sun. We don't have to worry about this for billions of years.
24: 41 But in terms of the fixed matter on this planet, we don't have a lot of
additional matter coming down here. We get a few meteorites a little cosmic dust,
but whatever we have in terms of fixed matter (which is a form of energy); has been
here since we blew off the Sun and cooled off. All of you have Smartphones on you
right now and there are little granules of rare Earths in those phones. They've been
here since the Earth has been here. That's a form of energy as a material form. So
here's what economics is all about: We extract low entropy available energy in
nature (a rare Earth, a metallic ore, a fossil fuel); we extract it and then, through our
value chains, we store it, we ship it, we produce goods and services from it, we
consume it, we recycle it back to nature. Those are value chains.
25: 29 At every step of conversion (when we take nature's resources and move it
through society), at every step of conversion we have to embed energy into that good
or service to get it to the next stage of what it becomes. But we lose some energy in
the process of that conversion. This is called "aggregate efficiency" in economics.
25: 52 Aggregate efficiency is the ratio of the potential work versus the actual useful
work you actually embed in the good or service. Let me give you an example. Nature
has the same economic conditions that we have in our human economy. If a lion
chases down an antelope in the wild, then kills it, about 10-20% of the total energy
that's in that antelope gets embedded into the lion. The rest is heat lost in the
conversion. That's the aggregate efficiency.
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26: 24 What does this have to do with my conversation with the Chancellor of
Germany? She's a physicist by background. So here's what I said to her.
26: 34 We started the 2nd Industrial Revolution in 1905 in the USA with 3%
aggregate efficiency. At every conversion of nature's resources through the value
chain, we lost about 97%, it didn't get into the product or service. By 1990, the US got
up about 14% aggregate efficiency. That was our ceiling; nothing's changed since
then. And I reported to the Chancellor that Germany got up to about 18.5%
aggregate efficiency. That was their ceiling. Nothing is changed. Anybody wanna
guess which country led the world in aggregate efficiency? Japan! 20% aggregate
efficiency. 1990s, reached its ceiling.
27:21 What I'm saying to the Chancellor is this: "You can have market reforms,
labour reforms, monetary reforms. You can create incentives for killer new products.
You can try to create a million Steve Jobs; it won't make a dam bit of difference. If
your businesses are still plugged in to a 2nd Industrial Revolution Infrastructure you
can't above the ceiling of 20% aggregate efficiency anywhere in the world."
27:48 Why is this important? A new generation of economists who happen to

study physics have gone back and looked at the industrial record and they added a
third factor to productivity: Better machines, better workers, aggregate
efficiency. The ratio- yes, it's so obvious. The ratio of potential to useful work.
When they put in that third factor, it accounts for much of the rest of productivity.
HENRY FORD could have told you this. In fact every engineer could have told you
this, every architect could have told you this. Every biologist could have told
you this. Every chemist could have told you this. They all have to start
their training in school by learning these two laws of energy that govern
the universe.
28:28 I teach on the oldest Business School in the world. I taught the advanced
management program at the Wharton School for 15 years. Not a single business
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school in the world, today, right now, requires that you learn
3 about the
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laws of thermodynamics, that govern economic activity. How shameful is this?...
28:47 So, in that first day with the Chancellor we discussed a 3rd Industrial
Revolution: a new convergence of communication, energy and transportation to
manage power and move Germany. At the end of the day, in a private session, the
Chancellor
Like said, "Mr. Rifkin,
Comment Share we will have this 3rd Industrial Revolution here in
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Germany.
29:15 Chapter 3: A new Smart Infrastructure
29:16 The communication Internet is now mature....It's been 25 years since, the
World Wide Web. We have digitalized communication. Now this communication
internet is converging with a nascent, digitalized renewable- energy internet.
29:42 Now both those Internets, are converging with a fledgling, automated, GPS and very
soon driverless road, rail, water and air transport internet to create three Internets:
Communication Internet; Renewable energy Internet and Automated Transportation-
Logistic Internet. One super internet: to manage, power, and more economic life. These
three internets ride on top of a platform called the "Internet of Things."
29: 56 We're embedding sensor in all of our devices, as you know, so they can
monitor real-time activity and then talk to other machines and talk to us. So we have
sensors now in the agricultural fields and they're actually monitoring the growth of
crops, the soil salinity, the moisture in the crops, etc. They're sending that data. we
have sensors now in the factories that are monitoring our economic data. We have
sensors in smart homes, monitoring how the energy is used in our buildings. We
have sensors in smart vehicles, warehouses, smart roads. We have sensors in smart
vehicles, warehouses, smart roads. All of them collecting data.
30:35 But where does that big data go? It goes to communication, energy, and
transport Internets to manage, power, and move economic life. As this new system
comes in, it's gonna be ubiquitous by 2030, connecting everything with everything
with everyone.
30: 51 We are essentially creating an external prosthesis - a distributed nervous

system- that's gonna allow everyone on this planet, at very low cost, to begin directly
engaging each other on a global Internet of Things and bypassing a lot of the vertical
integrated organization and the middlemen that kept us away from each other.
31: 17 We can have direct engagement now. This is the revolution. This evens the
playing field. There's been a long discussion among the Millennials- You started this:
Occupy movements. Saying, what about the 1%,? The 99% ?
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31: 29: Now we have an new platform. The Internet of Things
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different nature than the platform in the 1st and the and Industrial Revolution. The
new platform is really radical, because this 3rd Industrial Revolution platform is
designed to be distributed, not centralized. It works best when it's collaborative, and
open and transparent, rather than closed and proprietary.
31:57 And the benefits come when more and more people join the network and each
of us contributes our talent, which benefits the network and then benefits us. It's
designed to be laterally scaled not vertically integrated. And this is what moves us
from the 1% of the 99% to a vast expansion of social entrepreneurialism and global
networks. That's the upside. On the other hand, how do we deal with network
neutrality? How do we ensure that everyone has equal access to this new, Internet of
Things platform, this 3rd Industrial Revolution? How do we make sure governments
don't purloin thi platform for political purposes....- It's already beginning.
How do we make sure that giant monopoly companies (some of them on the
internet) don't use that data for their own commerical purposes at our expense?
How do we ensure privacy when everyone's connected?
How do we ensure data security when everyone's connected?
How do we prevent cyber crime and cyber terrorism that could disrupt the
system and take it down when everyone's connected?
33:06 This is the darknet... What I'm saying to you today is that darknet is as
impressive as the opportunity of the bright net. I would say that the next three
generations beginning with you, your children and grandchildren, you're gonna be
heavily engaged in a new political movement; and that movement is going to be to
ensure against the darknet prevailing and making sure that we all have equal
access, so that the human family can engage in a distributed nervous system and
began to have a vast expansion of social entrepreneurialism. This is the political
struggle that starts with the Millennials, your children and grandchildren. This is an
uphill battle, this is not a cakewalk. I am not a technological determinist and I am
not a utopian. Technology just enables.. Then the question is how will that journey
end... Its a big question mark right now...Lets assume for the sake of this afternoon,
that we're gonna be able to deal with all the complexities of the darknet and its a big
challenge.
34:02 Here's what the internet of things platform provides. Let's say here at
Brooklyn you're a SME small and medium-sized enterprise or cooperative, or non-
profit. You can go up on this nascent Internet of Things platform that's already
emerging. Its not Theoretical... and you can have a transparent picture of all the
economic data flowing through the world if it stays network neutral. The power here
is enormous. We think Snowden was a big deal? Now all the economic data is gonna
be open to everyone not just a few government secrets. But in a network neutral
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world, you will be able to go up on this platform and have a 3completely
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picture of all the data. You can go on the platform and cut your big data on your
value chain out from the noise. Then you can mine your big data with analytics.
Than you can create your own algorithms and apps it will allow you to dramatically
increase your aggregate efficiency at every step of the conversion on your value
chain and as you do that dramatically increase your productivity; dramatically
reduce your ecological footprint and dramatically plunge your marginal cost. Some
of these marginal costs are gonna get sold all they had to zero marginal cost. And
when they hit near marginal cost it gives rise to a new economic system .
Chapter 4: Zero marginal cost and the Rise of the sharing economy
35: 28 In economic theory the optimum market is where you sell at marginal cost.
Marginal cost is after fixed costs. Once you pay for whatever the technology is. The
marginal cost is what is costs to produce a unit. Classical economic theory, we've
always said that the most optimum market is where you sell at marginal cost. Here's
the problem we never expected a technology revolution "digital revolution" that
would be so powerful in it's potential productivity, they could actually reduce the
marginal cost for some goods and services to near zero. Meaning there's no longer a
profit margin and you can produce goods and services for each other beyond the
market in the sharing economy for nearly free.
36: 05 This sharing economy didn't come out of the blue. Capitalism gave birth to the
sharing economy.
36:10 Let me clear, as muddy as the sharing economy is, it's the first new economic
system to enter onto the worlds stage, since capitalism and socialism in the 19th
century. It's the remarkable historical event. This is already happening. Zero
marginal cost phenomena it's been how many years since Napster (the file-sharing
service)? 17 years... Well, this little file-sharing service started a revolution.
36:33 We have 3 billion people right now on the internet - and now the -Internet of
Things- who are actually producing and sharing virtual good at near zero marginal
costs beyond the market, disrupting entire industries. We have young people that are
producing their own music. And what does it cost to have a little technology, a little
machine that allows you studio-quality music when you wanna record in your
home? And then, whether you send that music to one person on the web or a billion -
It's a zero marginal costs. You just need a service provider to keep your power up.
37: 08 I was surprised when that South Korean performance artist (Psy) a couple of
years ago: A billion people went to his website. PSY- Gangnam Style Zero marginal
cost ....
37: 17 We have millions of young people any given day, who are producing their own
YouTube Videos. Take a little video, put it up on the web, A billion people can see it,
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Zero marginal cost. We have people producing their own news
3 blogs and
1 social
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media. New Zero marginal cost. We have millions of people contributing to
Wikipedia and constructing the knowledge of the world on a non- profit website for
free. This is the most improbable experiment I could ever image. I don't know how
Jimmy Wales came up with this. I would have said, "This cannot succeed "
37: 55 Adam Smith said: "Each Individual pursues their own self-interest
and never cares about the public good". But in pursuing their self-interest and
not giving a damn about the public good...By pursuing their self-interest, the society
is better off. I always thought it was a little dubious but that's how we grew up. But
apparently, none of the Millennials have read Adam Smith. Because, for example, in
Wikipedia you're all freely giving your talent, putting things up on Wikipedia,
constructing the knowledge of the world. You've democratized knowledge in less
than 15 years and the accuracy is good...
38: 32 Book publishing ...What's happening, people are creating their own free
eBooks. My new book came out on the Pirate Bays before we could publish in our
languages and they were ranking it before Amazon could even touch it. We have 6
million college students taking massive online college courses taught by the best
professors at the best universities. They're getting college credits. It's free. You
Millennials have won. Unless we outlaw all the technology, we've got to find a way
to live with it and find value with it. Entire industries have been disrupted in the 17
years since Napster. The music industry has shrunk. Television has declined
because everyone's producing their own YouTube videos. You're all producers
sharing with each other. Newspapers and magazines have gone out of business
will social blogs. But thousand new enterprises have emerged. Not just Google,
Facebook and Twitter, all of these are new, but thousands of start-up enterprises;
profit and non-profit, they're creating the platforms, they're creating the apps,
they're creating the connectivity, they're using the analytics and the data. It's a
revolution! Well, we thought there'd be a firewall here. And certainly we could
understand how zero marginal cost brought on by digitalization would affect the
virtual world, ut we didn't think It would move over the firewall to physical world.
39: 51 What I'm saying, with zero marginal cost society is that firewall is broken
now- it's called the Internet of Things, completely gone. We have millions of people
now producing their own renewable energy, right now, at near zero marginal cost.
Free! And now, as we move to car sharing, and as we move to driverless
transportation, we're gonna see the marginal cost plunge toward near zero in
transport logistics in the next 20 years. Let's go bank to Germany. What's happened
in the 10 years since that first conversation with the Chancellor? We are now in
Germany at 32% of all electricity power in Germany now is solar and wind, right
now. In ten years. And this is a northern country, doesn't have a lot of Sun. We're
gonna be 35% of the electricity, solar and wind, by 2020. We're gonna be 100%
renewable energy by 2040. Absolutely!
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40:48 What's interesting is the fixed cost of introducing
3 the solar
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technology and the wind turbines and the geothermal heat pumps- solar
and wind are on an exponential curve, just like computers! When I was a
kid in the 1940s and 50s, there's only a few computers. They cost millions of dollars.
And the chairman of IBM at the time said, "We probably will need a total of seven
computers." Maybe seven...It was just an optimistic forecast. We did not anticipate
exponential curves in computer chips. Moore's Law ...So all of a sudden, Intel
figures out that their engineers are doubling the capacity on that chip every two
years. This is still going on. So, even if you're making $2 (dollars) a day, everyone's
going to be connected to the Internet of Things within less than 15 to 20
years. An the cost- the fixed costs are gonna be as cheap as your cell phones in 20
years.
Everyone's gonna produce their own green electricity.
41: 44 Those exponential curves are not going away. You know how much
as solar watt used to cost? $78 dollars to generate one watt solar in 1978.
You know how much It costs to generate

one watt solar today? Not $78 dollars...
50 cents. It's gonna be 35 cents in 18
months from now.
42:02 This is really moving quick. And this is what you're not told here in the United
States by energy companies. We have power and utility companies- some of them in
my group, Global Group - and they're quietly, right now, buying long-term 20 year
contracts for solar and wind electricity in Europe and America, quietly right now,
for 4 cents a kilowatt hour. And the Berkeley National Labs, government labs just
announced they're generating wind and solar- I think it's somewhere between 2.9
and 3.5 cents a kilowatt hour. It's over actually for fossil fuel and nuclear. And the
next big bubble - I will tell you now- is gonna be the 100 trillion dollars in stranded
assets in the fossil fuel industry. This is gonna make the subprime mortgage look like
the small-time game. Because we're moving toward parity and then solar and wind
are getting cheaper and cheaper. That's what's going on behind the scenes, right
now.
42: 58 But what's interesting in Germany, one you pay your fixed cost for your solar
panel and wind turbine.. The marginal cost of producing the energy in Germany
today? It's Zero.
43: 09 The Sun has not set us a bill in Germany. The wind hasn't invoiced
us. The geothermal heat has not come to us with a bill. It's free! So what
happens when German businesses can plug in to a communication internet that then
converges with an energy internet and we digitalize the electricity grid, so everyone
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can produce their own solar and wind, and either use it off-grid
3 or sell1 it back
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grid? What happens when companies plug in to an energy internet where the cost of
the energy is near zero marginal cost? Think about when they have to move across
their value chain, and at each step of conversion on their value chain, their energy
cost is near zero. How does any 2nd Industrial Revolution country compete with
that? And it's not big Germany only - little Denmark's done this. Anybody can do
this. Who's producing all the energy?
44: 05 In Germany, there are four major power companies: EnBW Energie
Baden-Württemberg AG, or simply EnBW, RWE, E.On and Vattenfall; these are
giant, global, vertically integrated companies. And, frankly, we thought they were
invincible. What's happened to them in 10 years, is what happened to the music
industry, television, newspapers, magazine, and book publishing. Thousand of small
players have come together in electricity cooperatives. Farmers, small businesses,
neighbourhood associations. All of them went to the banks and got loans - these
electricity cooperatives and every bank was completely fine about giving them the
loans. Why? Because they knew that the energy they generated would get a premium
price when they sell it back to the market. Nobody was turned down. They're
creating all the new energy. This is power to the people - literally and figuratively-
power to the people. What happened to the big 4 power companies? They're
producing less than 7% of the new power. And they acknowledge they're out of the
game. Why? To their credit, they were the most efficient means to produce and
distribute centralized power - fossil fuel and nuclear power, vertical integration. But
the new energies..They require millions of small players connecting whether they are
in collecting. You have to collect the Sun everywhere in little amounts. And the wind
everywhere where you are. And the geothermal heat everywhere where it is. And we
reward cooperatives who laterally scale and join together in networks.
45:34 Big companies can't put all these players together. The players come together
in their own regions of cooperation, and they join together. It is power to the people.
Does this mean this is the end of the energy companies? Not necessarily. Many will go
out of business. Some will not. About seven years ago, the E.ON - one of the giant
four companies- they asked if I would debate their Chairman, Mr. Tyson, but in a
neutral country, the Netherlands. We had a three-hour debate....And I said to him,
"Look, you're not leaving the 2nd Industrial Revolution tomorrow morning. But you
also have to be in the 3rd Industrial Revolution tomorrow morning, because you
have a 25, 30- year transition to get from the end to the 3rd and find new value. And
I said in the new system, it operated quite differently than the old system.
In the new 3rd Industrial Revolution you make

more money by selling less and less and less
electricity.
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45: 50 I said, what you do is, you set up partnerships with thousands
3 of
1 enterprises.
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And you help manage the energy flow through their value chains. You help them
with their big data. You help them mine that big data with the analytics. You help
them with their algorithms and apps. Dramatically increase their productivity. In
return, those thousands of enterprises will share their gains back with the power
companies. It's called "performance contracts. "We're now doing it, and guess
what? Last year, the chairman of E.on - took him 7 years-they're moving to
renewable energies and they want to help manage part of the energy internet with
emergy services.
47:06 EDF, the great nuclear power in France has joined our group. We're doing the
whole build- out of the 3rd Industrial Revolution in parts of Europe and in
northern France, the Netherlands, Luxemburg...and EDF said, "we're with you".
They're on the ground helping lay this out. They're not leaving nuclear tomorrow,
but they see that the handwriting is on the wall. So the companies that don't go
there; we don't need them. It's not just Europe; now China. When president Xi
came in to power with Premier Li- Premier Li announced that he (and I was pleased
he announced he'd read my book) "The Third Industrial Revolution". He put out a
public announcement...I'd never met him. I never even been to China. And he
instructed the central government of China to begin looking at these themes that I 'm
laying out to you, to move China to a 3rd Industrial Revolution. There mindful in
China. They lost the whole 1st Industrial Revolution. They missed almost all the 2nd
Industrial Revolution, and came it in the trail in the last 10 year. And they said,
"We're not gonna lose the 3rd Industrial Revolution." We wanna collaborate with the
3rd Industrial Revolution. And they said, "Be among the leaders."
48:11 To show you how fast they move, I've been shuttling back and fourth, but after the
first visit (it was about eleven weeks later). The chairman of the State Grid Corporation
(which is the largest electricity grid in the world) announced an $82 billion dollar four-year
commitment to digitalize the Chinese grid so the millions of Chinese people could produce
their own solar and wind in their local communities and share it back on an energy internet.
That started this year, yeah. Watch Europe, Watch China.
48:37 The coming together of the communication Internet, with the renewable
energy internet, gives rise to the automated, GPS, driverless, transportation logistics
internet. We built the whole global economy in the 2nd Industrial revolution around
car ownership. That's what this all about. You've thrown us a curve. you really have.
Apparently you don't wanna own cars anymore. This is Grandma and Grandpa.
They got two cars sitting in the driveway cleaning and waxing them every few
weeks, and they're never used. Or they're at the office 90% of the day never used.
You don't wanna own cars. you want access to mobility and car sharing
networks, not ownership of cars in markets, correct? So there's a
problem here....
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49: 21 The problem is for every car shared in car sharing, in3the sharing
1 economy,
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we're eliminating 15 cars. This is both the problem and the opportunity. Larry Burns
was the former VP of General Motors until a few years ago, now he's a professor at
the University of Michigan. So Larry just did a study...very revealing. He studied at
Ann Arbor, in Michigan. He said: We can eliminate 80% of vehicles with better
mobility, cheaper. Now lets extrapolate Larry's study. We've got a billion cars, buses,
and trucks choking us in traffic around the world. The 3rd major cause of global
warming emissions. The number 1 cause of global warming emissions is
buildings. But in Europe, we're now retrofitting those buildings, transforming into
micro power plants and big data centres off carbon.
50:21 Does anybody know what is the number 2 cause of climate change? Global
warming emissions are by industrial activity...Number 1 is buildings- we
always talk about it. Number 3 is transport. What's number 2?
Consumption of meat- Meat, Meat, meat.....
50:37 We have 1.3 billions cows. They take up about 23% of the land mass of the
Earth. I love cows, but the methane they produce is a major contributor to global
warming (much more powerful than CO2) and then... when we pasture those
animals, we have the fertilizers that emit nitrous oxide. And it goes on
and on. And I should say that (without mentioning names) even some of
the prophetic voices in the climate change debate will never mention
this.
51:00 Because they do not want to antagonize people and even suggest
that we may wanna change our diet and move down the food chain so
that we can live healthy, respect our fellow creatures, and at the same
time mitigate climate change. So, you never hear this in the debate.
Never! Number 3 is transport. So, if Larry Burns is right : "we're gonna eliminate
probably 80% of the vehicles in the world in the next two generations,
because the Millennials, your children, and grandchildren are never
going to own cars again." This I know...
51:33 The remaining 200 million vehicles...They're gonna be electric. They're gonna
be fuel-cell driven. They're gonna be operated by new zero marginal cost renewable
energy. This is already happening. They're gonna be 3D printed, with composite
recycled materials at low marginal cost. They're gonna be driverless. This is already
happening. This gets to the question of, "is this the end of the world for
transportation companies?" Not necessarily. But they have to change
their business model while they're still in the 2nd Industrial Revolution,
selling cars, buses, and trucks. They have to move to the 3rd Industrial
Revolution, where they help manage vast networks along with all the
other players. This is a very cool thing that happened about six (x) weeks ago.
Daimler asked me to join them (Daimler invested the internal combustion engine.
So I'm always mindful they're a step ahead).... And the chairman of Daimler Trucks
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brought together 350 journalists from around the world in Germany,
3 asked6 me to
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come in...I laid out the same story we're talking about here. And then the chairman
of Daimler Trucks - he's one of the eight board of directors. He announced that
Daimler is in a new business. And that is logistics, on the transportation Internet.He
announced that Daimler has equipped, in the last three years, 300,000 trucks full of
sensors. 300,000 vehicles, and they're on the roads now. These are what I call "big
data," "mobile big data centres."
52: 59 These Daimler trucks are collecting data all across the transport corridors of Europe,
on traffic flows, weather conditions, availability of warehouses... All of the data you would
need if you're a small business, a large business, or just a home owner, to be able to increase
your aggregate efficiencies and productivity, reduce your ecological footprint, and any time
you're involved in moving shipments from A to B. He dimes the lights and they went to a
helicopter feed, live on the German Express way.
53:33 This gets interesting. They went to a helicopter feet fly (live) on the German
Express way. And the helicopter zooms in on these three trucks on the German
Express way, and then they went right into the cab of the trucks and the drivers are
waving and talking to everybody in the rooms. And the chairman of Daimler Trucks
said, " Okay, gentlemen. Take your hands off the wheel. Take your feet off the pedals.
All of a sudden, the drivers became software analysts. No longer drivers. They were
software analysts monitoring the data. The trucks then started to platoon together,
automated, into a mobile data, almost a train going down the highways, collecting
data. So they're providing the data, and then the analytics, so that you will have
apps, to increase your aggregate efficiency and be a player in the system. Smart....
Chapter 5 : Financing the Transition
54:27 How do we finance this? How do we pay for this? We are laying out a plan in
Europe called Digital Europe - Smart Europe. And working with the European
Commission, we're building this out over the next 10 years. But the big question is,
"How do we pay for the infrastructure, region after region across all of Europe to
connect us in a digital world. Where we can begin to enjoy the new opportunities?
54:48 So the question came up in Brussels and I said, "We've got all the money we
need." Problem's not the money; it's what we're doing with the money."
55:02 I'll give you an example- In America is the same situation. In Europe, we spent
741 billion equivalent US dollars on infrastructure in 2012. One year alone. That's
just a bad recession year, typical. The problem is what we spent it on. We spent the
money on an old 2nd industrial revolution platform. Remember what I said to
Chancellor Merkel? ...and we picked in the productivity; 20 years ago at 20% ceiling
and we cant get anything more out of it. We're stalled...which stalls the economy,
stalls the smart start-ups, stalls the entrepreneurial expansion. So I said, if we
simply reprioritize our investments, spend some of it patching up the old
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infrastructure - we don't want it to collapse- but we prioritize,
3 so part 1of those
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each year go to each region, so that they can begin to build out and scale up a 3rd
Industrial Revolution Infrastructure; with an Internet of Things Platform, we will be
there in 30 years. This year, we reprioritized our funding at the EU and beginning in
January of next year, regions across the EU will secure EU funding, leverage against
private equity, and each region will customize and build out, like WI-FI, their plan
and then connect up region to region to region. We call it "Digital Europe". We
have a similar plan called "China Internet Plus" across the regions of China.
Where's the US here?
Chapter Six: Two generations of Mass employment
56: 30 The coming together of this revolution will involve every industry: telecom,
cable, ICT, Consumer electronics, transport, logistics, construction and real estate-
(all the retrofitting), all the industries are involved. And it means work... What I am
suggesting here. What I'm suggesting here is that we have one last surge of massive
employment involving semi-skilled, unskilled professionals and conceptual labour.
We have to build out this smart infrastructure. Robots aren't gonna do this. We have
to take the entire energy complex of the United States. Think of all the infrastructure
and all teh technology, all those stranded assets. We have to convert all of that
infrastructure from fossil fuel, nuclear to distributed renewable energy.
57: 20 We have to retrofit every building in the USA. That's what we're gonna do in
Europe. Because you can't install the renewable technologies until the buildings are
efficient. That means huge jobs for energy service companies and for the
construction and real estate industry.
57:37 Robots won't put in the insulation, and the new windows, and the doors. And
then we have to install all the renewable energy technology. Human beings have to
install that technology, and all the smart technologies that monitors the equipment,
and puts in the digital advanced meters. We have to take the entire electricity grid of
the USA (which is dumb), its servo mechanical, embarrassing - it's 60 ears old;
barely functions.
58:05 We have to take the entire transportation grid to smart digital so that we can
manage these three internet's; this is gonna require professional talent and unskilled
and skilled labour for two generations. We have to take the entire transportation
grid of the USA and turn it from dump to smart, road, rail, water and air.
58:27 Who's going to install the thousands of charging stations in all the buildings?
Fuel cell outlets? Smart sensors? This Requires human beings. This means two
generations of work and guess what? It's financed by the payback of the energy
savings. You don't have to have huge government involvement here. You simply have
to have the enablement; so energy services companies can be set up, and we
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transform every building in the USA to a node. These nodes 3then connect,
1 and
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are the big data centres. They are the micro powers plants. They are the transport
hubs with electric charging stations. The nodes connect like WI-FI and all those
nodes, those building, homes, offices, factory- that's your Internet of Things. That's a
huge job for the construction industry and you can pay back the energy savings. You
can't default on the loans. But the technology doesn't do it alone. We have to change
consciousness.
59:20 I'm only guardedly hopeful. You know, I'm not naive; I'm guardedly hopeful...
I think that what I've said is really a tough challenge. But I'm guardedly hopeful
because human beings are the most social creature on this planet. When we get the
story right, we move quickly. I am always amazed when I fly and I see
electricity grids across continents and highways and urban centres. And I think,
That was all done in 50, 60 years?" It's amazing. When we get the story, we move
quick. We're a very social creature.
59: 53 The coming together, these three Internet's - communication, energy and
transport internet on top of an Internet of Things platform...It changes the way we
think about life....
Chapter 7: A new consciousness for a New Era
1:00:07 Let me give you the best example. We've got millennial parents that are
sharing toys on these millennial websites where you go up and you pay a
subscription fee one time and you're in the system then you can get a toy and kind of
toy you want and by age category and give it to your child. This is creating the
real revolution. The parent traditionally brings home a toy and they say to the
daughter this is not Christmas Santa. Santa Claus didn't get you this toy. We bought
this toy at a store and we're giving this toy to you. This is your property. This is not
your brothers toy and this is not your sisters toy, this is your toy. you need to take
responsibility for it and take care of it. what did mum and dad just say to me? The
first thing I caught is this isn't my brother and sisters toy; that's pretty relevant...
1:00:54 Now status, power, negotiability; I'll never let my siblings ever use this
unless they pay the price. They're learning possession of property and markets,
there's nothing wrong with that...; but now I'm these toys sharing websites parents
are bringing home these toys and pretty soon you're gonna come in a driverless
drone at near zero marginal cost now the parents give me this toy and saying
another little child played with this toy and she has a lot of fun with it...and she
really took good care of it, because she knew that one day you'd want to play with
the toy; and we hope you take good care of it because one day another child want to
play with toy.
1:31:30 What the child is learning now is this toys not a possession, its not status, it's
not power, it's not negotiable, it's simply access to an experience for a moment of
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time than other child gets to using. They're learning how to be
3 part of 1
a circular
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economy where we distributed things in the sharing economy, over and over and
over; nothing goes to the landfill.
1:01:50 I like a system where you have both opportunities, there's nothing wrong
with property, there's nothing wrong with having possessions and some status;...but
it's also nice to have another option, where part of the life is being able to access an
experience in time and then share it with someone else.
1:02:07 I don't think capitalism is gonna disappear but I think it's gonna find value
by creating a relationship so that it finds value with the child that gave birth to the
sharing economy; and right here in this room, you are already in two economic
systems day to day right here, in Brooklyn...Part of the day you're in the market
your sellers , your buyers your owners, your workers, you're producing goods and
services for each other for a profit and in the marketplace and you have a property;
But part of the day you're in the sharing economy; you're sharing virtual goods,
entertainment, news, social blogs, Wikipedia and now energy and car sharing; and
while it has capitalist parts to it, it's also a sharing economy where you can reduce
the cost and by 2050 we will have two mature systems, part of the day capitalists
markets (with a profit margin producing and selling to each other) part of the day in
the sharing economy (beyond the market), freely producing goods and services for
each other. That's already started. That is not gonna go away.
1:03:02 Your generation is moving from ownership to access, from markets to

networks, from consumerism to sustainability, from market capital to social capital.
Does this all sound familiar? It's a revolution. None of this is being taught in
the schools, by the way. That's why this is really a revolution.
1:03:26 There are three things that I've noticed that give me some guarded hope.
There's a basic change going on with you people in this room. It's strange to older
people. There's a change in the way you define freedom. The way you define power.
And the way you define community. This changes really suggest the real revolution.
For my generation (and generations before me), freedom was very simple, since the
Enlightenment. To be free in an enlightenment perspective is to be an autonomous
agent, to be self - sufficient, to be independent, to be not beholden to others, to be an
island to oneself, so one can than can have freedom as exclusivity. For the millennial
generation that grew up on the internet autonomy is death. Being an island to
oneself its death. Because to your generation you asked the question how can I
flourish to the full extend of my possibilities here on the planet. Its clear that your
answer to that is: I flourish to the extend that I'm embedded and network after
network, after network community. After community after community, I can share
my talents and those talents can benefit and come back to benefit myself. I am free
because I have access and for you freedom is not exclusivity. Its not being an
autonomous agent, its inclusivity: access to others in networks. Do I have this right?
This is very alien to our generation. We may have to change all the constitution in
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the world. This is a completely different idea about freedom.3 You have1a different
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sensibility about power, which makes the older generation very nervous. We
essentially believe that power always has to be a pyramid, it goes from the top down.
There's not other way to define power, is a pyramid, from the one to the many. But
young people that grow up in the internet, is strange... because you grew up that
power has to do with the networks you're engaged in. For you power is not vertical,
its lateral. For you, power is being a meshed in network after network where you
benefit each other.
1:05:42 Open source... This is so strange to our older generation. We do not have this
notion of power. It makes no sense to us, actually ut it makes total sense to you.
1:05:43 Finally, I think most importantly, we're seeing a change in the way a
younger generation perceives identify to community. I grew up in a post
Westphalian world, the nation-state; we were very clear on community. That is,
each individual is born to be an autonomous agent and we're each sovereign. Each of
us as a sovereign to ourselves. And each of us as a sovereign to ourselves, we
compete with other sovereign individuals, in the marketplace, for scarce resources,
in a zero-sum game. Our nations represent us because they are sovereign. And all
represent all the millions of individual citizens, who are sovereigns against other
nations. Each nation then competes with every other nation for scarce resources in
the marketplace of the battlefield in a zero-sum game. That's the post Westphalia
nation-state world.
1:06: 34 Here's my question: Does anyone here believe that we're gonna be able to
address climate change and bring the human family together and take responsibility
of our fellow creatures in the Earth we live in with that worldview? Anybody? ...
1:06: 51 What we're beginning to see with Millennials (and I don't wanna
overstretched this), but I'm beginning to sense a shift from geopolitics to biosphere
consciousness. Just beginning to see it. I hope it doesn't go away, I don't think it will.
1:07: 10 The biosphere is that 19km from the stratosphere to the ocean, where all life
and all chemicals on the planet interact to maintain the ecosystems; the biology of
the Earth. We're getting 14 years olds coming home with biosphere consciousness.
They're becoming the biosphere police. We got young people coming home and
saying to their father...Why are you using so much water here while you're shaving?
Can't we turn it off once in a while? We're wasting the water. Why is the little red
light on the TV? We haven't been in that room for three weeks! Wasting
electricity...Why are there two cars in the driveway? Why cant we at least car share
one?
1:08:16 They are saying to their parents. It brings a smile to me. We actually have
young people coming home and at dinner time, they're asking their parents where
the hamburger came from on the table....Yes, I'm sure some of you have this
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experience. Did that hamburger come from a rainforest? Did3 they have
1 to destroy
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the trees for four little inches of topsoil which only gives you three years of grazing,
so that that cow could become my hamburger?
10:08:25 When those trees are destroyed for the topsoil to graze the cow for the
hamburger, (the high school kids); they are smart enough to understand that those
trees harbour rare species of plant and animal life that only live in those canopies,
they go extinct. And they connect the dots... if the trees disappear, for the soil to graze
the cow for the hamburger, those trees are not there to absorb CO2 from industrial
emissions.... and that means the temperature the planet goes up... So then, a mother
cannot feed her children if she's on the farm, because she's getting spring floods,
summer droughts and wildfires because of the hamburger.
1:09:08 These kids are learning ecological footprint (Junior High school.) and they
are coming home... and they're beginning to understand that everything each of us
does...all day long (even when we're sleeping), intimately effects some other human
being, some other creature, and the planet we live in. This is so alien to the way your
previous generations grew up.
1:09:30 You're beginning to connect the dots and say, we live in an indivisible
biosphere community, there's no escape. This isn't just academic, our well-being
depends on the whole system and that all the creatures in it. We have young people
who are beginning to extend their empathic concern to the rest of the human family,
because you're all skyping on global classrooms. Heck- a billion of you on Facebook.
That's the largest fictional family in history!
1:09:51 What's promising to me is that part of this generation is also beginning to

empathize with our fellow creatures. Not just the polar bears and the penguins on
the poles, but all of our fellow creatures. I got to tell you, my wife and I are into
animal rights and animal protection. Our fellow creatures have a right to be here.
We do not have a right to end existence for them. This is their planet as well as our
planet.
1:10:15 So I think we're beginning to see a shift the notion of freedom. How we
perceive power, our sense of community. We're heading to a biosphere frame. This is
all good. Let me be clear on why I've been doing this work. I'm terrified about
climate change. I began working on energy issues..t was in 1973. And wrote a book,
"Entropy on Climate Change", in 1980. I thought we had more time. I did not
anticipate the feedback loops. We couldn't see them until they came, and then each
feedback decreased ten more on an exponential curve. And we just didn't see it.We
thought linear. Now we're scared. I'm gonna tell you, we are really scared. Cause
now we're in a runway exponential curve on the water cycles. We didn't see it. The
fortunate thing is, we now have a new infrastructure paradigm - a 3rd Industrial
Revolution. That can allow us to move off carbon quickly, in three decades. We
have the technology that allows us to do this, because zero marginal cost is the
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ultimate metric for reducing ecological footprint. If3people equipped
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with a little technology are constantly finding new analytics and apps to
increase their aggregate efficiency at whatever value chain they're in. It
means we're using less of the Earth and getting more out of it. In other
words, more of the energy and materials gets into the product, less is lost. Then, if
what we do produce is share...share the cars, share the homes, share the toys..we're
distributing a circular economy over and over again. Nothing needs to go to landfill.
1:11:46 Every resource is always there for us. If we move to the energy internet,
there's no reason why everyone on this planet shouldn't be producing their own
green electricity, right where they are at least low cost in 25 years from now, on this
exponential curve, and sharing across continental energy internets.
1:12:04 If we go to a car sharing, driverless transport grid, we can eliminate 80% of

those vehicles that have taken a big hunk of the Earth to put online. This is a plan
and what we've done( a lot of business are working with us around the world on
this); We say to people : "if you have another plan, step forward and tell us what it
might be to address climate change and move the economy." And I always get
silence.. because the only other plan is to stay where we are and that's talking us to
an economic crisis and an environmental abyss...
1:12:38 Here's what I'd like to do... Im gonna turn it over to you... Lets think about
your sensibility and find out if we can come to some common ground on how we can
begin to move this from this little room out to all the largest communities and
networks we're in. Is that a deal?
Who wants to start?
Questions and answers from the audience (video)
Q: Technological employment: What is your take on that?
A: We are moving to an automated world. There's no doubt about it. However, as I

said during the talk, we've got two generations of massive employment, that's clear,
to lay out this infrastructure . That's gonna require millions and millions of jobs.We
know this on the ground as we're laying this out in Europe right now. It's huge
amount of jobs.
Robot's can't do it, AI cant do it. This is infrastructure shift. However, as this smart
digital economy and society moves in, it can be run by very small supervisory
workforces.
It can be run by very small supervisory workforces with analytics, big data,
algorithms and apps- that's why we call it "smart world", "smart society", "smart
economy." Then, what we can do once we have the smart society in and it's
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automated, running by analytics? We're not gonna pay people
3 just to do
1 nothing.
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already know where the employment is going.
And that is, as we continue to automate the market economy, employment is shifting
to the non-profit social economy and the sharing economy - we already know that.
the non-profit sector is the fastest growing employment sector right now in the
world. It's about 9.5, 10% of the American employment- paid employments and non-
profit. Why is it heading there? because, is the social economy, the non-profit
economy, and large sections of the sharing economy, social capital is an important
as market capital. And, in this realm- the non-profit realm, the social economy, the
sharing economy it requires human beings engaged with other human beings.
Machines aren't only supplemental. We will never have a robot raising a child and
interacting with them in a childcare centre. raising a child and interacting with them
in a childcare centre. They may bring the lunch to the kid- the robot- but its gonna
require human beings working with those children. whether its in parts of healthcare
and the knowledge industries in cultural areas, humans with humans. the only other
questions is , how does this sector survive financially?
Johns Hopkins University does a study of non-profits in 40 countries every few

years. And guess what they found: Over half the income for non-profits which are
one of the biggest employers now, comes with fees for services. If you're doing health
research, you set up a health clinic. You get fees for services and then you can
continue to do your non-profit research. If we get any of this transition right, we
automate the market, we move to social capital where we can use our minds much
more expansively, so we can learn to live as a human family and steward each
steward our fellow creatures, steward the Earth. That's a much more noble mission.
Q: Statement from the audience: I believe that in order to create a better tomorrow, we
also need to look at rehabilitating our psychology.
A: Yeah, I'm in agreement with you. You know, and I have to say, our academic
disciplines, - I'm gonna step on more toes. The academic disciplines in our school
systems are so moribund. Its dysfunctional. Peer-to-peer education...We have an
internet generation that lives one way of life in terms of their mind outside the
classroom, and other inside the classroom.
In the classroom, for example, when we think about education, the first thing we
realize is the classroom looks a little bit like a factory.
.............................The End...............................
Thank you, by Mirela Xhota!
27.07.2019
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Mirela Xhota 92 articles Follow

Helping companies to eliminate risk through hiring and retaining the best
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Published • 1yr
Shaping the next and very Third Industrial Revolution by Jeremy Rifkin
A new economic era: from ownership to sharing, from profit-driven to purpose-driven. From economy to ecology.
(Documentary Chapter 1-7
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Mirela Xhota • 2nd

Helping companies to eliminate risk through hiring and retaining the best talent. #FirstAdvantage; #BackgroundChecks
Every step of conversion (when we take nature's resources and move it through society), at every step 2mo
of conversion we have to embed energy into that good or service to get it to the next stage of what it
becomes. But we lose some energy in the process of that conversion. This is called "aggregate
efficiency" in economics.
…see more
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"We started the 2nd Industrial Revolution in 1905 in the USA with 3% aggregate efficiency. At 2mo
every conversion of nature's resources through the value chain, we lost about 97%, it didn't
get into the product or service. By 1990, the US got up about 14% aggregate efficiency. That
was our ceiling; nothing's changed since then. And I reported to the Chancellor that Germany
got up to about 18.5% aggregate efficiency. That was their ceiling. Nothing is changed.
…see more
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"You know how much It costs to generate one watt solar today? Not $78 dollars... 50 cents. It's gonna 2w
be 35 cents in 18 months from now.
.......
The Sun has not sent us a bill.The wind hasn't invoiced us. The geothermal heat has not come to us
with a bill. It's free!" …see more
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