tv Steamboat Institute Freedom Conference Discussion on Regulations and... CSPAN October 17, 2015 10:00am-11:16am EDT
[captions copyright national cable satellite corp. 2015] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> next, on c-span, a discussion on the impact of government regulations on business. reaganormer administration official talks about the future of capitalism. after that, the president of the york federal reserve explains the policies and the role of the fed. >> now, entrepreneurs and ceos discuss the effect of government regulations and the tax code on businesses in america.
speakers include peter coors .rom miller coors this is about one hour and 15 minutes. [applause] we have a very distinguished panel. let me first introduced peter coors. pete is chairman of miller coors native, welorado like that. and, i probably think the most recognizable colorado native that we have a colorado right now. [applause] the course name has become synonymous with colorado.
i think you and the family with that. coors doing is a tradition that stretches over five generations of family now. it was started by pete's great-grandfather, adolph coors, in 1973. in addition to his corporate responsibilities, pete has positions in the american enterprise institute, the national western stock show, the denver art museum, and is president of the adolph coors foundation. i want to mention one other great thing about pete and that family is the amount of philanthropy and support that they give to our state, nation, and the american culture. i think it is pretty much unmatched. [applause]
i will mention one award that i think is particularly appropriate, and that is in 2010, when he was named citizen of the west. peter coors, thank you for being with us. [applause] panelist is paul dietzel. paul dietzel is an entrepreneur extraordinary. he founded a company called anedot. is a technology company located in baton rouge, louisiana. he was also 2014 candidate for the louisiana congressional seat in louisiana district six. years later, 3- is the leading software platform in the u.s.
more members of both parties use anedot than any other system for financial resolutions. religious organizations, individuals, and nonprofits the ability to securely collect -- in three years, they have collected donations in all 50 states and from 23 foreign nations. it is a pretty amazing record. seems familiar to you for somehow, it is with good reason. his grandfather was the atendary coach paul dietzel ellis seo, later coached to west point. welcome, paul dietzel. [applause] ganahl,friend, heidi has a good story. she is founder and ceo of camp , the largest pet care
franchise in all of north america. path towas not an easy success. she lost her first husband and her tragic plane crash when he was just 25 years old, in fact, on his 25th are they. close to being out of money and out of hope, not too many years after that, heidi opened her very first franchise facility in 2000 in denver. she now has over 200 franchises. wow is now one of the largest women led franchises in the country, one of the fastest-growing brands in the pet care industry, and a hundred million dollar leader in the pet care sector. she was recently recognized as one of the 10 most promising entrepreneurs at the fortune summit.erful women su she is an advisory on the advisory board for the
leadership program of the rockies. she also founded something unique, a nonprofit that she back," tos fight empower moms to make social change. she is a mother of four children herself. welcome, heidi ganahl. [applause] nyman is the vice president and ceo of neiman enterprises, a third-generation forest products company founded in 1936. with two facilities and south dakota, one in wyoming, and one in colorado, the family is also in the ranching business, and wyoming.lf club in marcus is the fourth
generation to work in the company. congratulations to get another family business. jim and the family have been recognized by the small business association as small business person of the year from the better business bureau, the united states forest service for their stewardship award, and as the company of the year. positions, both past and present, on the wyoming health and safety commission, the stabilization board, independent forest products association, president of the university of wyoming board of trustees, chairman of the diversity of wyoming school of environmental resources, on and last, but certainly not least, jim is also on the economic advisory board for the federal reserve bank of kansas city. ladies and gentlemen, i think you would agree, you have an exceptional panel here today.
[applause] i am going to invite each of our four panelist to make a brief opening remark about the state of affairs, whatever they think is important to say to you today. pete, do you want to go first? oors: thank you for the unnecessary introduction. bob said, when you prefer this, why don't you say something about yourself in the introduction. i can save a lot of time because you already did it. the one thing you left out is i had the privilege of being a candidate for the united states senate in 2004. many of you were helpful in that. [applause] have something in common up here, we all lost our last elections. [laughter] .nfortunately i think we will get into some of
the details of the business as we go through the day. i will pass it on to all. -- to paul. : it is humbling to be on the stage with such business leaders. i look to them for what i can 10-20 yearse next of my life. looking at the business climate in our country, it is really fascinating to me -- even just 3-5 years ago, it was easier than it is today to start businesses. pagesok at the amount of and the tax code, the amount of regulations that make it harder for entrepreneurs to jump in and create a business. you look at every day that the government is taking on -- picking on businesses. s think one of the thing that we have to do is unlock the next generation.
we have to get the next generation of leaders and anmators active and involves engaged. that is why i am excited to see so many millennial's speaking at this. of vincent, and a handful others. it is a pleasure to be here with you. thank you. ganahl: i know about of you in this room, and i think those that know me know how passionate i am about entrepreneurship and innovation, and how i think that is the key to unlocking potential and our country. to youth need the kurds start new businesses and be excited about it. i spent a lot of time talking to college and high school kids about the beauty of starting your own business. nowadays, they can do it with the click of a mouse or their phone. thatnk, it is unfortunate
the business environment is not very good for starting your own business anymore. it is a lot different from when i started camp bow wow. government overreach, taxes -- it is so complicated to start a business these days. my husband, jason, is starting a new barbecue restaurant. starting a single unit restaurant in westminster has been mindnumbing. that is my passion. my other passion is mom and kids, and keeping our country great for our kids, which is why i started "mom fight back," and i really encourage moms to get involved and be the courage they want to see in politics and the world. i think we can really listen up and give them a voice. i think they are the swing vote in colorado. let's see how that goes. [applause]
mr. neiman: what an honor to be part of this group. it is a humbling honor. i am blessed to be part of it. thank you for the great introduction. i want to go back one step that was missed. my granddad was a corn farmer in the great depression in east colorado, and had to sell out. my granddad then went north and started making grain doors for the railroad business. that is how he got started in 1936. children, well, my dad, who was 6 years old then. he is now 85. we have him to halftime, which, in his view, 12 hours a day. i am proud of my children. my daughter is working for
organization in dallas, the halftime institute, which some of you may know about. my son just got deployed. he is heading over seas here pretty soon. rep. beauprez: god bless him and you. [applause] when i started, we had 15 employees. 480, and 380 other independent contractors that our lawyer to us -- loyal to us on top of the employee base. our company is 80% dependent on the four services. we look uniquely at the four services as a partner. they are our business partner, but their hands are tied.
we have stressed the four withces -- forest services regulation after regulation. endangered species drives me protectsee that we will millions and millions of acres for one species at the expense of many other species. ?ow about humans particularly, in our industry, most of our sawmills are in small communities. that is the lifeblood for agriculture and the timber industry. they could be destroyed. when our business is destroyed, it could destroy a whole community. note, our forests are clearly overstocked. they are not healthy right now.
that is why we have a bug epidemic. there are a lot of reasons that people look to. with those dead trees, the fires. my next challenge that strikes me currently is the exchange rate. the exchange rate, currency exchange rate, between us and canada -- canada has gained close to 30%, or $.30 on the dollar in the last 18 months. guess what, lumber prices have toppled 25%-30% with that fromionship from imports canada, where they would formally send them to china. i believe in free trade, by believe in fair trade. the third biggest issue that i getting a good quality education for our kids, for
employees. trying to find good educators and students to come to work for us has been a real challenge for us. on top of that, to find those students that want to move to a small community is really a challenge. we are short for stores -- foresters, management, and really good electricians, and high-tech. we have computers that cut .round the curve of a tree all of our equipment is very high-tech. i was on the board of trustees and constantly for 12 years try to talk the university to say, this generation is the smartest generation ever, but this education system wants to tilt a surge auction. if we teach these kids a balanced education, they are smart enough to choose which way to go. give them both sides of the view, and they will come along.
i have confidence they will come up with the right decision. wyoming,his represents , thisiversity of wyoming is steamboat. institution here which is steamboat, i would love to have this represented down here. i don't know if there's any issues with that. i'm so proud to be part of the steamboat institute and speak to you. god bless. [applause] rep. beauprez: you have all opened the door. i wanted to address of oureneurial part economy, that has always been so important to us. i want to talk about tax codes, regulation, and i'm sure we will have a number of other questions from the audience. pete, let me start with you first. you and jim come from more long-term companies. heidi and paul are more recent
entrepreneurs. i know you all have an opinion. entrepreneurship, again, the key to the american dream, that so many of us cherish and have experienced -- many think it is threatened right now. tell me, yes or no, do you think , thepreneurship opportunity to enter into the business world, start your own business, live the american dream, is a getting easier or more difficult than it historically has been in america? whether your answer is yes or no, tell me briefly why you came to that conclusion? a. coors: i think it is combination of yes and no. it depends a little bit. how many know my competitors -- craft brewers?
this has blossomed in the last 10-15 years from nothing to a relative ease of entry into the marketplace. it it is a gripe about that they are not held to the that we are.s from that perspective, certainly there is an opportunity for all numerous to get in our kind of business. as they get bigger, they have more more challenges here it the regulatory reach -- the only the feds, but state and local governments -- will impact them. two.uick story, maybe we have a retailer in boulder, colorado that bagged ice for his customers for a long time. he got a letter from the local health department that he had to ice a health license to bag
. he called them up and said, what does that entail? they said, a 20 page application, and the $400 fee, renewable every year. he said, i had 20 employees, i now have seven, and i probably have to let one go with this. he said, who reads these things? bureaucracy. even at the local 11, this bureaucracy is making it more more difficult for small businesses. i guess there is a combination of opportunity and real challenge to succeed as entrepreneurs. rep. beauprez: a mixed bag. mr. coors: a mixed bag. mr. dietzel: i think the greatest challenge for other technology standpoint -- from the technologies tha standpoint is the government does not understand innovation.
the government does not understand jobs. the government does not have any money to create jobs, it is our money. i think the government spends more time tried to regulate, and they spend less time trying to figure out how to open the door and create opportunity for new companies. i think people agree, it is all right to open the door and create more competition, but don't come out of the other side of your mouth, make it harder once you do succeed, and are becoming the american dream. rather is like, what i go out and succeed, or would i rather punch the clock, fit in, not be out of the ordinary, not try to innovate, or worse, stay-at-home and punch the remote? rep. beauprez: heidi, you are certainly an entrepreneur.
tell us what you have been through. ms. ganahl: it goes back to my earlier, about how easy it could , but thent a phone they have to go through all the crazy stuff that happens around starting a business. it could be so simple and easy to get so many more people into owning their own business, and , and they could do that very easily with the technology that is out there, but then you hit the wall of government overreach to the point where, i don't know if you know this, but in colorado, the department of agriculture tells us how many people we need to toe in the dog play yard monitor the dogs. we have to me a ratio of one to 15. that is almost as strict as childcare. in other present the country, it is 1-25.
it cuts profitability for our colorado franchisees. that is a lot less franchisees that will enter because of her regulation. i have sat with the department agriculture and said, how did you come up with this rule? she said, we just have a feeling. [laughter] would he mean you have a feeling, i will show you this data that will prove it that we can do it 1-25. she said, that is not your job, go run your business, and we will tell you how to operate. i will remember that conversation. rep. beauprez: i bet you will. business, what is the problem? mr. neiman: we are getting it we are ganahl:
getting it from all angles. they're going after mcdonald's first, but what they're trying door is tie the franchise .o the franchisee they are saying that we are now responsible for the 3500 employees, and if one person makes a bad hiring decision, often in another state, all of the franchisees have to pay for that mistake. what they're try to do is unionize the restaurant industry. they have not been able to do it because it is so heavy in the franchise. they are independently owned and operated businesses. we do not control the employee at the franchise unit. it is a terrible day for franchises yesterday, as it is today. that decision was made by five unelected bureaucrats that obama elected, three of which are his bouds. rep. beauprez: jen, the
entrepreneurial opportunities, good, bad, a little bit of both? mr. neiman: if someone came to me, and said they want to get into the sawmill business today, looking back over the 80 years that got us here to where we are today, i would first talk to them -- i have some pride in the manufacturing side. if you look of this country, we are founded on the manufacturing side. it is new money. i have a certain pride in creating new money. i would try to encourage him. i would not do this, but, if he asked, are there other opportunities? i would say, go to canada. they will give you all the timber you want, they will give it to you for free, almost, they labor,bsidize the give you loans, and put you in business.
and they would say, don't you do it down here, no, it is a different concept. i was try to think of what regulations, when you're dealing doug isrest services -- , i think we do with immigration, to some of the ones i mentioned from for est services, epa. i have people dealing with regulations day in and day out, even on the export side. rep. beauprez: paul? i was thinking about this, if there is more opportunity to date than in the past. in thinking about it, i think there is more opportunity in america now than any other time in history because technology has opened the door for that. at the same time
it is not the case is because the government has placed itself between the innovators and opportunity. when my grandfather got in the farming business, he became a farmer. it became a lot more complicated up. when i showed ms. ganahl: it throttled financing. the small community banks are disappearing. those are what fund franchises and create jobs. rep. beauprez: every politician, democratic and republican, wherever they come from on the political spectrum will say, i'm for small business, for progrowth economic policy, but the burden of government seems to keep getting heavier and capital seems to be
more difficult to access. job creation seems to be a little bit out there. today, we have a smaller percentage of our workforce eligible population actually working or looking for work that we have had in a generation. focus first on the tax code, then i want to ask you specifically even more about the regulation problem. is the tax code -- again, politicians will profess, we want to incentivize capital investment, economic growth, and job creation -- is the tax code friend or foe? thinking i might know the answer, tommy's cynically what you would like to see changed in the tax code. they talk about in washington every election cycle, but if you could tell congress and the president what to do about the tax code, what would it be? let me start with paul this time. mr. dietzel: the real answer is
not whether or not congress knows what to do, it is whether or not congress will act on it. they have all of these different invisible players out there that incentivize them to not act on it. you hear about it on tv every night. they talk about lowering the tax rates, broadening the base, getting rid of loopholes. you know all of the words that they use on tv. they all do it. both parties. they know that historically that is what works and deregulation works. that is what they tell us, then they go back with their buddies and d.c., and don't do anything. i don't think it is necessarily whether or not they know what to do, i think it is they are comfortable with how it is. rep. beauprez: what would you tell them to fix? mr. dietzel: specifically, there's a handful of different things. i would simplify. i like to simpnd mlify ae things easy. as you know, from using our software, we like to make things easy for people.
i would lower rates all across the board, and get rid of a handful of them. it baffles me, maybe because i'm 29 and don't understand such complex subjects, but tax boggles my mind. i don't understand how it works for people. rep. beauprez: it is criminal. mr. dietzel: it is. it goes back to the previous question, at the end of the day, it is about money, about control. that is what it is about. they can say they are for the middle-class, jobs, but at the end of the day, the government is about control. how do you get control? breed dependence on the system. rep. beauprez: you look like you are ready to go. pardon me. when i was campaigning, i had a conversation about the death
tax. a bunch of contractors in the ken got up and said, we are talking about maybe $5 million per person as an exemption. said, certainly everybody in the room would go along with $10 million. i got up and said, how many of you in this room between you and your wife have $10 million? went up.w hands i said, how many would like to? i got the whole crowd. [applause] look, if you get rid of the death tax, one of two things will happen. either the kids will spend it, in which placed the money gets back in the marketplace, or they will be invested and bill jobs and the economy. there's nothing bad that can
happen. rep. beauprez: heidi, friend or foe? ms. ganahl: i love to talk about capitalism, and how capitalism is not a curse word. if you look at the last 200 years of history, there are fewer people in poverty, fewer people that are hungry, all around the world, not just in the u.s.. there has never been more innovation than in the last 200 years. what happened? america, free markets, industry. if we are a lot of potential, it is not just about making money, it is about solving all of the problems.rse if we can let loose entrepreneurs and innovation. if we can get rid of the irs. i like a fair tax. [applause] camp bow wo tw to
thesvca. i'm still executive director for little while. to 50%.ye i want to start another company right now? no. i have all of these worktunities, but will go on my nonprofit and try to make a change that way. it's terrible. rep. beauprez: it is a major disincentive. something we have not talked about, the highest corporate tax rate in the world. it does baffle me because i have sat in the halls of congress and heard these proclaims -- proclamations that we are incentivizing capital formation, business investment, those
risktakers. are we incentivizing them or is the tax code holding us back? mr. neiman: the tax code definitely is holding us back. we have to find a way to simplify it. if we could abolish the irs, that would be good. i know we won't. , in my company, a few hundred thousand dollars just to accountants. it would simplify and reduce my cost there just to figure out what our taxes are. a simple tax code would be good across the country. we like pete -- why are rich -- tilizing the penalizing the rich? let's stop the fight and let everybody get the chance to get there, like those who have $10
million. an death tax, i helped start organization 15 years ago working on the death tax. that is double taxation, triple if you are a corporation. you have already paid at the corporate level, the personal level, and then you lose your father and mother, and paid again. from my end, there should be no death tax. it should be abolished altogether. i do care how wealthy you are. i know i won't get elected either if i take that tone forward, but that is my view. rep. beauprez: it is certainly a big piece of how government regulates our every move. i have had economist say that if we were in a position -- a big and business people were making their business decisions on what made business sense, instead of what the tax code told him to do, we would probably immediately add $2 trillion of economic activity to
our gdp. simple fine, flattening, or making fair the tax code makes a lot of sense. let me move on to regulation. to put it in context, by the government own calculation, coming out of the business of administration, the cost of regulation on an annual business, just federal regular should, not state and local, is about $2 trillion per year. about $2 trillion. 8-10 toeeds a factor of one the cost of paying all of these taxes that we already said is a big disincentive. it baffles my mind when we have all kinds of people, people in the business world, like a. , as well as major economists that say that certain pieces of pluslation, an 800
trillion dollar package, obamacare, dodd frank, and on and on -- we impose anti-job, anti-capital investment regulation that compounds the problem. and not surprisingly, job creation and getting the economy moving again -- i will be the light -- has been a little sluggish. i would like to hear from each of you, and you have artie said that regulation is a problem, some civics. specific toions your business are most problematic? if you could, if you were in a witness chair in front of congress, and they said, what should we do? what one or two things should we do to fix the problem? what would have a big macro
affect to get the economy moving, not to percent, or so, but 4.5%-5%? what would you tell congress? let me start with heidi this time. ms. ganahl: i have a lot to say about this, so i will try to keep it brief. i'm a firm believer in vote with your dollar. i think society would be a much better place if people had the choice to decide which companies to give their dollars to. sitting inif i was front of congress and asked them to do one thing, i keep thinking about when you were campaigning, your first day in office, and going through all the regulations in colorado, and saying, no, no, no. someone has to swipe the
slate clean. i don't think that will happen, go in toed someone to office with that attitude. rep. beauprez: count me in. jim? mr. neiman: i will go back to one of my first comments on yu epa. it takes the forest service about 5-10 years to complete a years.sale, and 2-3 the forest services hands are tied. guess what happens. they file a suit, and find one deal wrong, and the government reimburses the environmental , inunity for their fees some cases $700 per hour for the legal fees.
that is incriminating. there are some bills to help that regulation be diminished and untie the hands of the forest service. rep. beauprez: in your business specifically, litigation has become a weapon of the war. mr. neiman: it has, yeah. richoors: how many filthy liberals are there in the room? [laughter] look, all those filthy rich liberals will be worried that someone will get hurt. i think dr. carson hit it right on the head. by reducing the size of the government, we are 60,000 pages of new regulations each year. who writes those regulations? little underlings they get
government jobs that pay nicely, and they can retire when they are 40 years old. if we can reduce the size of government, we will reduce the size of regulation, and eventually we can begin to repeal some of the stuff. as long as we have regulators, having the opportunity to keep writing regulations, they will keep writing regulations because .t is job security it is true of the federal level, the state level, and the local level. with somerez: hesitancy, i will challenge my friend, pete. it is more like 80,000 pages out andhe federal government another 20,000 out of our state government. 100,000 pages of rules propagated every year to control, as dr. carson said, everything we do. mr. coors: dodd frank is a great example. we put community banks out of
business. we have not started a new community bank -- rep. beauprez: since the recession started, i think there has been one charter in colorado. mr. coors: and we have lost a whole lot of them. rep. beauprez: the imagination is working well. paul, i want to ask you, maybe even more specifically, since you volunteered that you are still under 30. [laughter] is it amazing what he has accomplished? [applause] you are inspiring, my friend. your generation, sometimes i see petepolling data, and charged on it, one that heidi mentioned in the last campaign, . kept talking about regulation
some statistics i have seen more recently, just in the last month or so, suggested especially among young adults, they have a very different attitude. they think they really need government to control those nasty big corporate executives eyingare out there pr on them, and government will somehow save them from themselves. if that is prevalent among the younger adult age group, and i think it probably is, how did that happen, and what we do about it to go i think it is anti-capitalism, anti-america, anti-free market. i think it goes to the point that government has done a good job of one thing, making people dependen on it. lettinga debate on young people stay on their
parents' plans. who in the world would rather stay on their parents' plan, staying in their parents' house, or go out and have a good paying go out andthey can feel good about themselves, afford to go on dates -- it's a no-brainer. [applause] i think the reason you see that statistic is not that it is the optimal thought of young people, but what government has spread. you look at dodd frank -- it is also a lack of information being given to the young people. to a group ofke about 100 students at a university, while i was running for congress. i said, how many of you have heard about obamacare? everything oh percent raise their hand. i said, how many of you have a debit card, financial loan, something financial, everyone
raise their hand. i said, how we people know about dodd frank? to people. it was a misguided attempt to fix corruption in the financial market. i do you really think 20,000 pages of documents will fix corruption? know, all it did was make it more complicated, make it harder to find. that is what their intent is. they can say this all, "we the people," helping innovation, and all that, but it comes back to control. dominion to keep their of their adc, and keep us back here, where we belong. think, if you look at the numbers, talking about jobs, have the lowest employment in the history of our
country. if you look at the age r bracket, it hovers around 14%. in the african-american community, that number is 40%. that is unacceptable. night,ecause night after our government, and the people in congress, and not all people there are good people. for the people watching on c-span, there are good people in congress, just not all of them are good. [laughter] we live in a society that no , as my grandfather's generation and parents generation, no longer rewards success and hard work, and no longer rewards you to be loyal. in happened to loyalty our country and company?
would stay with companies .or 30-40 years, one of my business partners was actually working for a company 50 years ago, and he created the small little thing that actually saved his company hundreds of millions of dollars. he started at the very bottom, and worked his way all the way to the top after 40 years, and was ford's best manage ' best managedbes company in the 1990's. he knew his hard work would be rewarded. today, going back to the initial question, young people do not see the hard work is rewarded. it is just not fair that someone is successful. mr. dietzel: right.
i have time for one more question and then the audience? we will do that. i want to talk about the workforce and workforce readiness specifically. jim, i will open with you. you have the experience as the university of wyoming board of trustees, and set in your opening comments that education is an important issue to you. colorado springs in particular, i was talking with an official of the economic development council, and he pointed out a paradox. i specifically went there because there unemployment rate at that point in time was among the highest in colorado. i asked how many people were unemployed -- i forget the exact number, but here is what i do remember -- he said we have
postings that outnumber the 2-1.r of unemployed by more jobs available to people who are unemployed. asaid, that seems to be paradox, what is the problem? he said, the job skills of those unemployed do not match the need, the skills needed for the job. i looked at a study, are they ready to work? this was an opening quote in the executive summary, "the u.s. workforce is woefully ill-prepared for the demands of today and tomorrow's workplace." of you hadhe four input into the study and said, yes, we need basic knowledge, academic skills, but what is more necessary in today's workforce is applied skills -- professionalism, work ethic,
ism, probleme abil solving. here is the question after the publication. -- pontification. [laughter] can you find the workforce that you need? if you could not, what do we need to do to fix it? , i have such ast strong passion for education, trying to help and have an influence on the education system from a business perspective. to forcees, we tried our kids on college because that is the right thing to do, what maybe a trade school, or something when be a better option for them. i was ever a little bit, if you do not mind, bob. i want to share with the crowd and experience that i had at montrose. almost three years ago, about a third of
our workforce -- we did a study, and none of them used unemployment, none of them used the medical services, and they were all qualified. under the social security we cannot look any deeper than that piece of paper that they gave us. it is illegal, we will get penalized. .e used e-verify we found out that 30 of the employees were illegal. i said, wow, some of them had been there 10-14 years, some of them had children graduating from high school in the community. we have to make the tough choice . i hired a really good legal firm
out of denver to consult us. the specialist said, this a administration hates you, they will not hurt the employees, those immigrants that are not they are after us, that this guy. the fine would have been $16,000 . i had to let 30 people go. that is one of the toughest situations i have ever been in. it was painful to see those good workers -- and they had skills. guess what we had to do? i just spent $8 million plus automating what you had a chance to look at. that was my alternative because i could not find skilled workers to fill in their. i have a passion for the hard-working ethics that come colorado.o to part of they have some of the passions
that i see in my dad and granddad, the work ethic and family valuesased that i had to let go. that really hurt. rep. beauprez: i do think they need to enforce the employer laws, but give you a system that is absolute, quick, and accurate , that you can live within the law. ,r. neiman: i followed the law but this is showing 20-30 years of broken laws, letting people come over the border, and not having a proper system. have anuprez: pete, you enormous workforce. retaining workers, how tough are easy is it? bag.oors: it is a mixed we have people who have been
there 30-40 years. the younger employees tend to be the best word i can use. i talked to a banker friend in colorado springs, about one year or so ago, and he said, i'm having a hard time keeping my cashiers. i said, that is a nice entry level job, probably high school education required, minimal amount of skills -- be able to count, have 10 fingers. they cannot make as much money wage rate, as they can if they go on unemployment. i don't know what the actual number is, but it is well in
excess of $50,000 of income. before you pay taxes compete with being on the government dole. went dr. carson was talking -- when dr. carson was talking about the hammock versus the safety net, we have way too many people in the hammock. if they were going to offer you that money, wouldn't you take it? the work ethic is something that is not being developed in our young people. we are saying this with our young people. we have to replace particularly technical people. it is very difficult to get people who want to take the time and be apprentices, learned the trade, and have a lifetime career. truckers, they are offering $90,000 to truck drivers. we cannot find enough truck haulers to take our beer into
the marketplace. i can be home and collect a check, why should i be in a truck, and be away from my family? these are the issues that we have to deal with. again, shrinking dependency on the government will go a long way towards developing talent. my great-grandfather came here, and your grandfather, and all of our ancestors came here. there was no safety net. there was no osha. there was no epa. there was no disability, no unemployment, none of this stuff. they do not have a choice. now there is too much choice. [applause] rep. beauprez: you have outlined a very well.
a follow-up question, can we get from here to there? mr. coors: people go to work out of necessity, they have to eat. if you take away their subsistence, they ought to be able to go get a job. all those jobs in colorado springs, they ought to figure out how to do those jobs. [applause] rep. beauprez: paul, you are in the high-tech is this. skilledt you need people. can you find them, and on a broader scale, how about the work was in america? and people entering the workforce, your age. mr. dietzel: a lot of it boils down to education. talking to a point that pete was talking about, the work ethic
that was instilled in previous generations has not been in mysically instilled generation. i think that is partially because the government got too big, and thought it could tell parents how to raise their kids. you are looking over your shoulder, and if you rebuke your child, think you might get thrown in jail for it. whatever, i don't have kids, i'm not married. in terms of the high-tech workforce, it is definitely a challenge to find people. there is a challenge, especially in the engineering type field. bu see, every day, it has red this transient shift of employees. news ofwhy you see lawsuits between google, facebook, and these others because they are stealing employees. that stems back to the fact --
going back to what jim was the government is pushing people to go to college, graduate school, in the name of seeing that are everybody needs to go get the .ame kind of degree the problem was that is when they graduate, and go to find a job, there's only so many of that type of job. quite frankly, they're more jobs these days that you can get without having a college degree. , or maybe employees half, had no background in what we do prior to coming to us. we train them. rep. beauprez: they have basic skills, and then you train them. mr. dietzel: exactly. we will teach them the rest. my cto has almost become my educator in chief, helping
employees develop and grow their skills. i think you see that across all industries. i do not think there is a job shortage. i think there is a worker but i don't think there is a people shortage, if that makes sense. mr. neiman: we could spend a lot of time -- mr. beauprez: we could spend a lot of time on this. i think the key is education reform. like ibm is doing. things like that where you get employers telling the education system what skills they need and offering apprenticeships and internships. i think it is switzerland or sweden, one of them has a graduation rate of 97.4%. that is because at the beginning of their sophomore year, they are partnered with a company so they graduate with wonderful skills and great jobs. mr. beauprez: excellent point.
a resurgence of what they are calling now career technical education. but actually teaching job ready skills to vast numbers of young people that maybe they can, after they get that degree -- >> a really good example with -- mr. beauprez: yes. >> if you get a chance, take a look. the success rate coming out of their is outstanding. mr. beauprez: and one day a week, they are doing just what heidi talked about. ms. ganahl: and they get to pick who they want to work with, so they get to pick their passion. mr. beauprez: excellent. education is really like technology in many ways. in the technology industry, if you don't innovate, you get left behind. we are educating the future for the 1960's. we've got to start educating the future for the future. [laughter]
mr. beauprez: very well said. very well said. >> [applause] we've got a: microphone over here, and gary has won over here. so, who do we -- kevin has a question. kevin, you've got a big enough booming voice could just let 'er rip. >> [indiscernible] i want c-span to hear this. no, i'm kidding. [laughter] i'm kidding. i have kind of a loaded question for you. i think education in america sucks. a rackethat -- it is by the government to get people to go, you know, they keep raising the rates and you put scholarship money and and it has become a farce. here's is my comment and kind of a question. i believe that a lot of the affirmative action and diversity programs that are being regulated you know essentially
forced on businesses is what is ruining your businesses. you talked about bringing people into the -- [indiscernible] i will saypeople -- it, black people, we don't want to come to towns and the in for a street. -- in forestry. you are dammed if you do, dammed if you don't. pardon my french. [laughter] so here is my question. you've got companies like the retailers, jcpenney and what have you, that have been forced to hire three-foot tall guatemalan women because they fit some profile. and they are all in triage going out of business. and then you got places like google and some of the high-tech people you're talking about that they say, hey, we will hire anybody. which i think is the american way. .et's bring the best
you bring me the best, i will hire them. i don't care if they are eight-foot, purple, from somalia. if they can code, i can hire them. from an hr perspective, do you feel like i feel that government social engineering of business is really what is the downfall of business? because when americans say bring us the best and brightest, that is what we want. we don't care about what your religion or creed or color is. do you feel that way? i will put you on the spot if you don't want to answer on public tv. mr. beauprez: who wants a shot at that? mr. neiman: boy, what a great question. i want to cheer you on. i have documents about this stick a have to monitor every month. thank you god the head of my construction visit, his daughter married someone from louisiana. you have to monitor what percentage in your area -- and
that one person got us up to speed, otherwise i would have been find. [laughter] >> [indiscernible] mr. neiman: [laughter] and he is still a great person and a great worker. and he is about four and half foot tall. [laughter] mr. beauprez: you've got some experience with this. mr. coors: i agree with you. our k-12 education system is really in trouble, and it is shameful. it is really shameful. and we are trying to deal with this and colorado and jefferson county now. i have a recall election because they are doing things right and the teachers union doesn't like that. teachers unions are all about -- about the union, and not at all about the kids. >> [applause] i think there is
places and reasons to have unions, what our kids need to get educated and they need to get educated well. when colorado succeeds -- assistantexecutive who sisters daughter goes to the school that has a "d" rating. when she found out, she said, well, why do you want your daughter to go to this school? so, we love the teacher. so parents have to get on top of this. those who have parents that care. but, you know, we are -- i don't think that -- you know -- minority hiring and all the stuff has been the cause of any real significant issues. in fact, i think it has helped us. our problem at higher management levels is finding -- we like
diversity. the problem is getting young people who are willing to work to start. and i give talks to employees and say, look, you have to start somewhere. everybody wants to be president. you've got to start. kids,e talk to college they say, well, i have this fancy education. i say, why don't you go be an apprentice and learn the business and pretty soon you will be the supervisor. and if you are a good supervisor, you will be the manager. and then you will be the depot guy. and that is how the system works. young people want instant gratification, and we have taught them that and they get it on their iphones with facebook. it is like a candy store. they don't understand. you have to start somewhere. the key.my, is i don't care what your race, religion, or anything else is. you've got to get started. can we get one more -- mr.
beauprez: can we get one more question and? where? >> [indiscernible] i say that we -- thank you. we pay a lot of taxes for the public schools. of course, i used to go to public school. that wey that that -- pay money for a terrible purpose. number one, the teachers don't really -- they are, like, every lesson that i almost had in a public schools was probably a review lesson from kindergarten. number two, the kids were just -- the teachers never really cared what anyone did. so it was just -- and we are paying money so that they can get paid for doing absolutely nothing helpful in a kid upon education -- kid's education.
so, i just -- just what can we do to fix that? >> [laughter] [applause] >> what is your name? one of the things we will do to fix that is the next time you put a panel together like this, jack, you will be a peer. [laughter] mr. dietzel: thank you for the question. how many people were prepared for the job by the department of education? seeing there are none, we will move on. anybody in the tent? no, they are not because the department of education does not educate people. over the past 20 years, you have seen an increase in the amount of administrators that has doubled. it has double the rate of teachers and researchers, which
has increased at a higher rate than students. what is happening as we are increasing all the bureaucrats, and that is raising our costs. the costs of education are going up -- down, while the costs are going up. in no other world would that work except for education because the government has so deeply rooted its hands into our education. i think that is one of the first things we have to do is get rid of the department of education. >> [applause] mr. dietzel: we could each take a department and get rid of it. to talk about the money side, taxes -- so, education in america is not underfunded. it is not. $600 billion annually, and i don't know the exact number. somewhere around $600 billion a year. and, you know, you think about that -- we pay all these taxes.
why do we pay all these taxes? because the government is doing way more than it was ever intended to do. the biggest thing is to shrink the size of the government. i am not advocating for the government to give a $600 billion, but i do think we would probably run it better than the federal government. i think it is all about shrinking the government. it is about reducing the bureaucrats and getting back to rewarding educators because the more you increase the costs of the administrators and the bureaucrats and all these people, you are also having less money to pay the actual people that are educating our kids. if you have less money to pay the people that are educating our kids, then the next generation is going to say i can get a job better doing something else or i can just said at home. so they are not going to be educators. my mom was a teacher. and the education system that we had prior to the department of education, which wasn't all that long ago, with so much better
than when the the common of education came in and said, oh, listen, we need to take your of it. that fits directly into your question. we've got to continue the discussion and continue electing people that will reduce the size of government because the more that we increase government, the further the quality of education will go down. mr. neiman: i just want to answer jack on one thing. that is partly what is missing in america today. i have real issues with the education system, but we have lost the family value in so many kids. so many kids are raised by a single-parent. householdan family has to get back together and figure out and raise the standards themselves. and they go in and help the standards of those teachers back
up, like what used to happen when i was a kid. thank your parents for me and what they do. i want to give them a hand. >> [applause] mr. beauprez: do we have time for one more, jennifer? >> i am told we have time for one more question. mr. beauprez: here we go. >> can you hear me? it is really a statement. as an entrepreneur, i feel all the pain that you feel. i have had the exact same experience. but there is hope because from central illinois, we started a little class. 40 business people went together to pay for it. that was eight years ago. and we take high school seniors and each child has to start a real business. and the things that come out of that class are amazing. an example would be if i make any money, i'm going to give it all away because they think it
is evil if you make a lot of money. but that class has grown. we are now in four states. it takes about a year to put the class together to start it. we are not going to be in 45 communities. and i am hopeful after the meeting yesterday we will have one in steamboat. this will be our first one in colorado. and it is transformational what those kids are learning. they understand what it takes to start a business. and a 17-year-old said to me, i don't have to pay taxes, i am only 17. so they don't have a clue. but there is hope. i identified with everything you said. education is everything. thank you. >> [applause] panelists, thank you very much. this was better than i even expected. and i had high expectations. >> [applause] [applause] mr. beauprez: thank you, panelists.
thank you very much. >> [applause] >> enjoyed it. nice to meet you. announcer: also at the annual steamboat institute freedom conference in colorado, peter wallace and discussed the causes of the 2008 financial crisis and whether it could happen again. he served in the treasury department during the reagan administration. this is about 45 minutes. >> we have peter wallison, who has written a book called "hidden in plain sight" about the 2008 financial crisis and if it could happen again. this anybody believe that it could happen again? yeah, unfortunately. peter was here back in march. did a presentation at the strings pavilion that was very