WEBVTT - Dell CEO Michael Dell Talks Donation To Fund 'Trump Accounts' For Kids 0:00:02.520 --> 0:00:07.400 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:07.760 --> 0:00:08.160 One of the. 0:00:08.080 --> 0:00:10.960 Biggest news that we had this morning was learning that 0:00:11.000 --> 0:00:13.680 Michael and Susan Dell are making a six point twenty 0:00:13.760 --> 0:00:17.040 five billion dollar donation to jumpstart investment accounts for twenty 0:00:17.120 --> 0:00:20.400 five million US children. The act of philanthropy from the 0:00:20.440 --> 0:00:22.520 co founder of Dell and his wife will apply to 0:00:22.600 --> 0:00:26.600 children ten and under who aren't already eligible for government money, 0:00:27.200 --> 0:00:30.680 with Dell saying she expects to reach eighty percent of 0:00:30.800 --> 0:00:33.479 US children in that age range. The move builds on 0:00:33.520 --> 0:00:35.960 the Investor America initiative out of the White House, which 0:00:36.920 --> 0:00:39.360 made me know as the President push to financially cushion 0:00:39.440 --> 0:00:42.440 young Americans. Joining us right now around the desk is 0:00:42.680 --> 0:00:45.280 Caroline Hidge. She is the co host of Bloomberg Tech, 0:00:45.560 --> 0:00:48.760 and she brings us right now the CEO of Dell, Michael. 0:00:48.479 --> 0:00:53.479 Dell, a historic moment. Michael, Welcome to Bloomberg Compound. Interest 0:00:53.520 --> 0:00:55.520 the eighth one of the world, some would say, and 0:00:55.560 --> 0:00:58.720 you're giving it with two hundred and fifty million US 0:00:58.840 --> 0:01:00.960 kids each getting a job start of two hundred and 0:01:00.960 --> 0:01:03.960 fifty dollars, Why is this the right act of philanthropy 0:01:04.000 --> 0:01:04.200 for you? 0:01:04.600 --> 0:01:04.880 Well? 0:01:05.200 --> 0:01:08.160 You know, our foundation has been focused on children since 0:01:08.200 --> 0:01:12.679 the beginning, and when this Investment America Act was passed 0:01:13.600 --> 0:01:17.360 earlier this year, you know, we saw it as a 0:01:17.440 --> 0:01:23.120 platform for companies and families and communities and philanthropists to 0:01:23.240 --> 0:01:26.640 contribute to these accounts. And as you probably know, you know, 0:01:26.680 --> 0:01:29.600 the government is giving one thousand dollars to every newborn 0:01:30.200 --> 0:01:30.600 in an. 0:01:30.520 --> 0:01:32.959 Account that will essentially go in the S and P. 0:01:33.080 --> 0:01:36.520 Five hundred and compound over time, and when they're you know, 0:01:36.560 --> 0:01:39.800 the child's eighteen, it becomes like an IRA can be 0:01:39.880 --> 0:01:44.360 used for education, to start a business, to start a family, 0:01:45.400 --> 0:01:48.480 for continued savings, to buy a home. And so what 0:01:48.520 --> 0:01:52.040 Susan and I wanted to do was help out some 0:01:52.080 --> 0:01:56.680 of the kids that weren't included in the government program. 0:01:57.040 --> 0:02:00.400 And so the kids that are tended under that live 0:02:00.440 --> 0:02:03.440 in zip codes where the median income is one hundred 0:02:03.440 --> 0:02:05.920 and fifty thousand dollars or less that aren't in the 0:02:05.920 --> 0:02:09.280 government program. So I think ages two to ten, we're 0:02:09.320 --> 0:02:12.880 going to give twenty five million of those children two 0:02:12.960 --> 0:02:16.720 hundred and fifty dollars each in their account. And we 0:02:16.800 --> 0:02:22.680 hope that you know this, you know, it inspires them 0:02:22.840 --> 0:02:27.560 and gives them hope and opportunity and prosperity. I've spoken 0:02:27.600 --> 0:02:29.920 with a number of other philanthropists. I believe you'll see 0:02:29.919 --> 0:02:33.680 some other significant gifts, and we know many companies are 0:02:33.720 --> 0:02:37.320 going to match the government's contribution, as Dell Technologies is 0:02:37.360 --> 0:02:39.680 certainly doing, and a number of companies. 0:02:39.320 --> 0:02:40.120 Have already announced. 0:02:40.160 --> 0:02:44.400 So we're super excited about what this can become over 0:02:44.480 --> 0:02:49.520 time as these accounts grow to be something significant. 0:02:49.720 --> 0:02:50.480 Tell us about that. 0:02:50.520 --> 0:02:53.600 Tell us about how you are calling on companies like 0:02:53.720 --> 0:02:56.799 you to match what many are calling the Trump accounts, 0:02:57.040 --> 0:02:59.560 but also will those match what you're now doing for 0:02:59.560 --> 0:03:01.280 two to ten ten year olds, maybe ten year olds 0:03:01.280 --> 0:03:02.920 and above. Have you filled it many calls? 0:03:05.520 --> 0:03:08.960 Well, you know, we just announced this this morning. 0:03:09.000 --> 0:03:12.760 I did speak with a number of philanthropists in the 0:03:12.960 --> 0:03:16.840 weeks leading up to our announcement, and you know, well, 0:03:16.880 --> 0:03:19.320 I won't speak for them. We'll let them make their 0:03:19.360 --> 0:03:23.240 own announcements and then they could be designed in a 0:03:23.240 --> 0:03:26.600 different way. I think you'll see some people adopting particular 0:03:26.639 --> 0:03:31.480 states or you know, particular communities. And in fact, we 0:03:31.600 --> 0:03:34.840 started with the idea of doing this only in the 0:03:34.880 --> 0:03:38.720 state of Texas, but then we decided to do it nationally, 0:03:39.160 --> 0:03:43.960 So there can be many varieties and alternatives here, but 0:03:44.600 --> 0:03:48.480 we do think that this will be catalytic and that 0:03:49.560 --> 0:03:53.680 more philanthropists and companies will will join us over time. 0:03:54.520 --> 0:03:59.320 And again, this is a platform for the future of 0:03:59.320 --> 0:04:00.120 these children. 0:04:00.560 --> 0:04:04.280 Is it a platform for more giving from philanthropies or 0:04:04.320 --> 0:04:09.240 from billionaires such as yourself via government. It's extraordinary turn 0:04:09.280 --> 0:04:12.480 of events that here you work working directly with the Treasury, Michael. 0:04:12.680 --> 0:04:15.320 We've also seen Timothy Mellon at one point offering to 0:04:15.360 --> 0:04:18.040 help cover the costs of US troops during the government shutdown. 0:04:18.200 --> 0:04:20.880 Will more people be pushed and think it's right to 0:04:20.920 --> 0:04:22.440 work through the federal government. 0:04:24.400 --> 0:04:28.479 Well, I would say, we're not working through the federal government. 0:04:29.600 --> 0:04:34.080 We are giving two hundred fifty dollars directly to twenty 0:04:34.080 --> 0:04:35.360 five million children. 0:04:36.520 --> 0:04:39.680 And this is being executed. I think we've just had 0:04:39.720 --> 0:04:42.840 a technolog knowledgy issue there. But Michael, this are being 0:04:42.880 --> 0:04:45.960 executed by the Treasury. When you think about how the 0:04:45.960 --> 0:04:48.520 process has been, you hope that I understand going to 0:04:48.560 --> 0:04:50.400 be seamless. It's going to be process is going to 0:04:50.440 --> 0:04:52.039 be swift. How quickly do you think it'll be in 0:04:52.040 --> 0:04:55.240 the hands of those children and indeed will it be 0:04:55.240 --> 0:04:58.200 in alignment with the Trump accounts? So July of next. 0:04:58.080 --> 0:05:00.840 Year, Yeah, so. 0:05:03.000 --> 0:05:06.839 On July fourth or I think fifth, actually because the 0:05:06.880 --> 0:05:11.960 fourth is a holiday of next year, every parent will 0:05:12.000 --> 0:05:16.440 be able to claim the account for their child that's 0:05:16.480 --> 0:05:17.280 eighteen and under. 0:05:18.120 --> 0:05:21.200 And originally those those accounts will be. 0:05:21.520 --> 0:05:24.680 You know, held in custody by a custody bank, and 0:05:24.680 --> 0:05:28.120 then eventually you'll be able to choose your bank or 0:05:28.160 --> 0:05:32.080 your you know brokerage that you know holds the account 0:05:32.200 --> 0:05:34.360 for you and it's the property of the child. 0:05:35.200 --> 0:05:37.800 What banks, what asset managements have you been talking to? 0:05:37.960 --> 0:05:40.320 How do you think from an infrastructure perspective this would work? 0:05:40.360 --> 0:05:45.000 Michael right. I have not been having the conversations with 0:05:45.080 --> 0:05:46.760 the banks. I actually a number of. 0:05:46.800 --> 0:05:49.400 Them have told me that they're interested in being the 0:05:49.440 --> 0:05:54.000 banks to hold these accounts. I think it'll be you know, 0:05:54.040 --> 0:05:58.520 all the major banks, and you know, the parents will 0:05:58.560 --> 0:06:01.560 be able to choose which ever their favorite bank or 0:06:03.000 --> 0:06:04.960 you know stock brokerages. 0:06:05.600 --> 0:06:08.560 What's so interesting is this has bipartisan supporters. We understand 0:06:08.600 --> 0:06:12.640 from Netta's being met just yesterday, asking Cory Booker as 0:06:12.680 --> 0:06:15.839 well as Ted Cruz asking those to come alongside you 0:06:16.000 --> 0:06:16.880 for corporates too. 0:06:17.040 --> 0:06:19.920 That's right. I've spoken with that's right. 0:06:19.960 --> 0:06:23.279 I spoke with Senator Booker last night about this. I 0:06:23.320 --> 0:06:28.159 spoke with Senator Cruz about this earlier today, and there 0:06:28.240 --> 0:06:30.760 is completely bipartisan support. 0:06:30.480 --> 0:06:33.080 For this idea. It's not a political initiative. 0:06:33.839 --> 0:06:36.960 This is about investing in children, and we think that's 0:06:37.000 --> 0:06:38.920 the smartest investment that we can make. 0:06:39.400 --> 0:06:41.920 Michael, why do you think it wasn't picked up earlier 0:06:41.960 --> 0:06:44.480 than this since twenty twenty one shout out to Brad 0:06:44.520 --> 0:06:48.919 Gerstner is almost his idea, this initiative. Why did it 0:06:48.960 --> 0:06:50.599 take this administration this time? 0:06:52.240 --> 0:06:53.120 It's a great question. 0:06:53.200 --> 0:06:55.719 Brad did tell me about this in twenty twenty one. 0:06:55.880 --> 0:06:58.560 We talked to the prior administration about it. I think 0:06:58.560 --> 0:07:01.960 it's hard to get legislative action like this done, but 0:07:02.440 --> 0:07:05.000 now it's the law, and so here we are, and 0:07:05.040 --> 0:07:07.800 so we have a great opportunity for the future to 0:07:08.320 --> 0:07:10.280 build on this platform. 0:07:10.960 --> 0:07:14.440 You really have been focused on education and on kids, 0:07:14.560 --> 0:07:17.720 Michael in your philanthropic work. You're also a man very 0:07:17.720 --> 0:07:19.720 focused on the world of artificial intelligence. 0:07:20.040 --> 0:07:20.880 What's the life going to. 0:07:20.800 --> 0:07:23.240 Be like for these kids going forward? Do you think 0:07:23.280 --> 0:07:25.880 how much will they be allocating their money, how much 0:07:25.920 --> 0:07:27.320 will they be allocating their time? 0:07:27.480 --> 0:07:29.200 What does the work we look like do you. 0:07:29.160 --> 0:07:34.320 Think, Well, there could be lots of you know, debates 0:07:34.320 --> 0:07:35.640 about that. 0:07:36.200 --> 0:07:36.440 You know. 0:07:36.480 --> 0:07:40.600 What I would say is that I would encourage kids 0:07:40.640 --> 0:07:44.480 and parents and educators to focus on the critical thinking 0:07:44.520 --> 0:07:48.400 skills and being able to analyze problems without the assistance 0:07:48.440 --> 0:07:52.280 of technology, but also use technology as a as a 0:07:52.360 --> 0:07:54.880 resource and as a tool. You know. At the heart 0:07:54.920 --> 0:07:58.680 of this debate really is as we get new and 0:07:58.760 --> 0:08:05.320 better tools, are we doing more work and solving more problems, 0:08:06.160 --> 0:08:10.960 you know, and discovering new science and progressing further in 0:08:11.000 --> 0:08:14.080 the world, growing the economy, or are we doing the 0:08:14.120 --> 0:08:16.600 same amount of work with just fewer people because we 0:08:16.640 --> 0:08:20.040 have the tools you can put me down for economic 0:08:20.080 --> 0:08:25.160 growth and prosperity as a result of these tools. Certainly 0:08:25.200 --> 0:08:29.920 there will be challenges and dislocations, and retraining is certainly required. 0:08:30.000 --> 0:08:34.400 But from what I'm seeing, I think this is largely 0:08:34.440 --> 0:08:39.840 going to result in some really great outcomes. But yeah, 0:08:40.040 --> 0:08:46.160 again it's it's not guaranteed success because of new technology that. 0:08:46.200 --> 0:08:50.840 Dissipation Michael, whose responsibility is that is that big text 0:08:50.960 --> 0:08:54.800 responsibility to retrain to reskill to help at least pay 0:08:54.800 --> 0:08:56.840 for it. Is it government's responsibility education? 0:08:59.480 --> 0:09:00.160 I think it's a. 0:09:00.200 --> 0:09:03.400 Collective responsibility that we all have. I think every company 0:09:03.559 --> 0:09:08.760 has to reskill its workforce. I think the education system 0:09:09.360 --> 0:09:15.200 has to adapt and build the new skills and capabilities, 0:09:15.400 --> 0:09:19.040 and you know there's a role for all of us 0:09:19.040 --> 0:09:20.040 to play in that. 0:09:20.840 --> 0:09:23.520 And excuse me for this pivot, Michael, but of course 0:09:23.600 --> 0:09:26.959 many want to understand. Of course the focus on infrastructure 0:09:26.960 --> 0:09:29.280 from a money perspective here to kids. There's also the 0:09:29.320 --> 0:09:31.960 focus on the fact that stocks have to go up 0:09:31.960 --> 0:09:33.880 into the right in the longer term for this to 0:09:33.920 --> 0:09:36.840 benefit those children. What do you think about a concern 0:09:36.840 --> 0:09:39.439 about an AI bubble and there's really reaping rewards from 0:09:39.440 --> 0:09:42.240 a productivity perspective, or are we in some sort of 0:09:42.520 --> 0:09:44.840 bubble or circular finance concern? 0:09:44.920 --> 0:09:51.360 For you, certainly markets do fluctuate, and you know that 0:09:51.400 --> 0:09:53.760 well on Blueberg as you report about it every every 0:09:53.800 --> 0:09:59.000 single day. Long term, we think, you know, you know, 0:09:59.559 --> 0:10:02.720 invests these accounts in the s and P. 0:10:02.880 --> 0:10:05.680 Five hundred is a very good way. 0:10:05.559 --> 0:10:10.920 To compound over time for these children. When I look 0:10:10.960 --> 0:10:16.520 at what's going on today in the enormous buildout in AI. 0:10:16.800 --> 0:10:20.000 What I see is a lot more demand than supply 0:10:20.720 --> 0:10:21.840 for the ingredients. 0:10:22.040 --> 0:10:23.840 And certainly, you know in our. 0:10:23.720 --> 0:10:27.840 Business and many of the companies in this enormous buildout 0:10:29.000 --> 0:10:32.840 business is very good because there's an enormous demand for 0:10:32.960 --> 0:10:36.120 what these models are creating, which effectively is intelligence. And 0:10:36.679 --> 0:10:39.880 if you now have a tool that you know causes 0:10:39.960 --> 0:10:43.120 everyone in your company to have fifteen more IQ points 0:10:43.160 --> 0:10:45.559 in their daily work, well that's something you probably want 0:10:46.120 --> 0:10:50.760 as much as you can get. And so there's enormous 0:10:50.760 --> 0:10:54.800 demand here. I think next year will be in a situation, 0:10:55.160 --> 0:11:00.280 very likely where the demand exceeds the supply in any 0:11:00.320 --> 0:11:04.280 of the critical ingredients that go into the most advanced 0:11:04.320 --> 0:11:05.880 systems that we're building. 0:11:06.720 --> 0:11:10.000 Well, you're certainly building something extraordinary. On this Giving Tuesday, 0:11:10.200 --> 0:11:12.880 twenty five million children two hundred and fifty dollars each 0:11:13.200 --> 0:11:16.079 six point twenty five billion dollars being philanthropically given by 0:11:16.080 --> 0:11:18.600 yourself and Susan Dell. We thank you so much, Michael 0:11:18.640 --> 0:11:19.680 dal for joining us today. 0:11:20.320 --> 0:11:21.200 Thank you, thank you. 0:11:21.640 --> 0:11:23.760 We think the smartest investment we could make is in 0:11:23.800 --> 0:11:24.800 our children.