Intersection and union of sets

WEBVTT
Kind: captions
Language: en

00:00:00.740 --> 00:00:03.750
What I want to do in this
video is familiarize ourselves

00:00:03.750 --> 00:00:06.540
with the notion
of a set and also

00:00:06.540 --> 00:00:09.380
perform some operations on sets.

00:00:09.380 --> 00:00:13.320
So a set is really just a
collection of distinct objects.

00:00:13.320 --> 00:00:18.420
So for example, I could have
a set-- let's call this set X.

00:00:18.420 --> 00:00:20.205
And I'll deal with
numbers right now.

00:00:20.205 --> 00:00:21.580
But a set could
contain anything.

00:00:21.580 --> 00:00:22.990
It could contain colors.

00:00:22.990 --> 00:00:24.150
It could contain people.

00:00:24.150 --> 00:00:25.410
It could contain other sets.

00:00:25.410 --> 00:00:26.370
It could contain cars.

00:00:26.370 --> 00:00:28.374
It could contain farm animals.

00:00:28.374 --> 00:00:30.290
But the numbers will be
easy to deal with just

00:00:30.290 --> 00:00:32.710
because-- well, they're numbers.

00:00:32.710 --> 00:00:34.720
So let's say I have
a set X, and it

00:00:34.720 --> 00:00:40.830
has the distinct objects in it,
the number 3, the number 12,

00:00:40.830 --> 00:00:44.810
the number 5, and the number 13.

00:00:44.810 --> 00:00:46.780
That right there is a set.

00:00:46.780 --> 00:00:48.450
I could have another set.

00:00:48.450 --> 00:00:50.850
Let's call that set Y.
I didn't have to call it

00:00:50.850 --> 00:00:53.230
Y. I could have called it A.
I could have called it Sal.

00:00:53.230 --> 00:00:55.354
I could have called it a
bunch of different things.

00:00:55.354 --> 00:00:56.490
But I'll just call it Y.

00:00:56.490 --> 00:00:59.130
And let's say that set
Y-- it's a collection

00:00:59.130 --> 00:01:04.810
of the distinct objects, the
number 14, the number 15,

00:01:04.810 --> 00:01:08.700
the number 6, and the number 3.

00:01:08.700 --> 00:01:11.680
So fair enough, those are
just two set definitions.

00:01:11.680 --> 00:01:14.540
The way that we typically
do it in mathematics

00:01:14.540 --> 00:01:16.360
is we put these
little curly brackets

00:01:16.360 --> 00:01:19.870
around the objects that
are separated by commas.

00:01:19.870 --> 00:01:23.040
Now let's do some basic
operations on sets.

00:01:23.040 --> 00:01:28.160
And the first operation that I
will do is called intersection.

00:01:28.160 --> 00:01:33.840
And so we would
say X intersect--

00:01:33.840 --> 00:01:40.330
the intersection of X
and Y-- X intersect Y.

00:01:40.330 --> 00:01:41.860
And the way that I
think about this,

00:01:41.860 --> 00:01:46.280
this is going to
yield another set that

00:01:46.280 --> 00:01:51.040
contains the elements
that are in both X and Y.

00:01:51.040 --> 00:01:54.630
So I often view this
intersection symbol

00:01:54.630 --> 00:01:57.180
right here as "and."

00:01:57.180 --> 00:02:01.460
So all of the things that
are in X and in Y. So what

00:02:01.460 --> 00:02:03.680
are those things going to be?

00:02:03.680 --> 00:02:06.730
Well, let's look at
both sets X and Y.

00:02:06.730 --> 00:02:11.870
So the number 3 is in set
X. Is it in set Y as well?

00:02:11.870 --> 00:02:12.550
Well, sure.

00:02:12.550 --> 00:02:15.210
It's in both.

00:02:15.210 --> 00:02:20.050
So it will be in the
intersection of X and Y.

00:02:20.050 --> 00:02:24.490
Now, the number 12, that's
in set X but it isn't at Y.

00:02:24.490 --> 00:02:26.130
So we're not going
to include that.

00:02:26.130 --> 00:02:28.440
The number 5, it's
in X, but it's not

00:02:28.440 --> 00:02:34.400
in Y. And then we have
the number 13 is in X,

00:02:34.400 --> 00:02:39.140
but it's not in Y. And so over
here, the intersection of X

00:02:39.140 --> 00:02:42.470
and Y, is the set that
only has one object in it.

00:02:42.470 --> 00:02:45.660
It only has the number
3 So we are done.

00:02:45.660 --> 00:02:50.530
The intersection
of X and Y is 3.

00:02:50.530 --> 00:02:54.390
Now, another common
operation on sets is union.

00:02:54.390 --> 00:03:00.840
So you could have
the union of X and Y.

00:03:00.840 --> 00:03:05.320
And the union I often view--
or people often view-- as "or."

00:03:05.320 --> 00:03:07.550
So we're thinking about
all of the elements that

00:03:07.550 --> 00:03:10.729
are in X or Y. So
in some ways you

00:03:10.729 --> 00:03:12.770
can kind of imagine that
we're bringing these two

00:03:12.770 --> 00:03:14.170
sets together.

00:03:14.170 --> 00:03:18.530
So this is going to
be-- and the key here

00:03:18.530 --> 00:03:21.740
is that we care-- a set is a
collection of distinct objects.

00:03:21.740 --> 00:03:24.240
And the way we're
conceptualizing things

00:03:24.240 --> 00:03:25.920
right here, this
is the number 3.

00:03:25.920 --> 00:03:28.020
This isn't like
somebody's score on a test

00:03:28.020 --> 00:03:29.480
or the number of
apples they have.

00:03:29.480 --> 00:03:31.890
So there you could
have multiple people

00:03:31.890 --> 00:03:33.230
with the same number of apples.

00:03:33.230 --> 00:03:35.860
Here we're talking about
the object, the number 3,

00:03:35.860 --> 00:03:37.730
so we can only have a 3 once.

00:03:37.730 --> 00:03:43.160
But a 3 is in X or Y,
so I'll put a 3 there.

00:03:43.160 --> 00:03:50.187
A 12 is in X or Y. A 5 is in
X or Y. The 13 is in X or Y.

00:03:50.187 --> 00:03:51.770
And just to simplify
things, we really

00:03:51.770 --> 00:03:54.530
don't care about order if
we're just talking about a set.

00:03:54.530 --> 00:03:57.040
I've just put all of the
things that are in set X here.

00:03:57.040 --> 00:03:59.500
And now let's see what we
have to add from set Y.

00:03:59.500 --> 00:04:01.140
So we haven't put a 14 yet.

00:04:01.140 --> 00:04:03.090
So let's put a 14.

00:04:03.090 --> 00:04:05.880
We haven't put a 15 yet.

00:04:05.880 --> 00:04:07.870
We haven't put the 6 yet.

00:04:07.870 --> 00:04:09.800
And we already have
a 3 in our set.

00:04:09.800 --> 00:04:10.660
So there you go.

00:04:10.660 --> 00:04:13.370
You have the union of X and Y.

00:04:13.370 --> 00:04:16.959
And one way to visualize sets
and visualize intersections

00:04:16.959 --> 00:04:19.100
and unions and more
complicated things,

00:04:19.100 --> 00:04:22.150
is using a Venn diagram.

00:04:22.150 --> 00:04:25.310
So let's say this whole box
is-- you could view that

00:04:25.310 --> 00:04:27.650
as the set of all numbers.

00:04:27.650 --> 00:04:29.840
So that's all the
numbers right over there.

00:04:29.840 --> 00:04:35.320
We have set X-- I'll just draw
as circle right over here.

00:04:35.320 --> 00:04:38.190
And I could even draw
the elements of set X.

00:04:38.190 --> 00:04:46.190
So you have 3 and
5 and 12 and 13.

00:04:46.190 --> 00:04:51.000
And then we can draw
set Y. And notice,

00:04:51.000 --> 00:04:54.055
I drew a little overlapping
here because they overlap at 3.

00:04:54.055 --> 00:04:58.160
3 is an element in
both set X and set Y.

00:04:58.160 --> 00:05:04.470
But set Y also has the
numbers 14, 15, and 6.

00:05:04.470 --> 00:05:07.040
And so when we're talking
about X intersect Y,

00:05:07.040 --> 00:05:10.480
we're talking about where
the two sets overlap.

00:05:10.480 --> 00:05:13.134
So we're talking about this
region right over here.

00:05:13.134 --> 00:05:15.550
And the only place that they
overlap the way I've drawn it

00:05:15.550 --> 00:05:17.100
is at the number 3.

00:05:17.100 --> 00:05:22.300
So this is X
intersect Y. And then

00:05:22.300 --> 00:05:25.700
X union Y is the combination
of these two sets.

00:05:25.700 --> 00:05:30.370
So X union Y is
literally everything

00:05:30.370 --> 00:05:33.140
right here that
we are combining.

00:05:33.140 --> 00:05:34.580
Let's do one more
example, just so

00:05:34.580 --> 00:05:38.710
that we make sure we understand
intersection and union.

00:05:38.710 --> 00:05:43.660
So let's say that I have set
A. And set A has the numbers

00:05:43.660 --> 00:05:48.380
11, 4, 12, and 7 in it.

00:05:48.380 --> 00:06:01.570
And I have set B, and it has
the numbers 13, 4, 12, 10, and 3

00:06:01.570 --> 00:06:02.680
in it.

00:06:02.680 --> 00:06:05.160
So first of all,
let's think about what

00:06:05.160 --> 00:06:08.240
A-- let me do that in A's color.

00:06:08.240 --> 00:06:15.120
Let's think about
what A intersect

00:06:15.120 --> 00:06:18.830
B is going to be equal to.

00:06:18.830 --> 00:06:21.700
Well, it's the things
that are in both sets.

00:06:21.700 --> 00:06:22.590
So I have 11 here.

00:06:22.590 --> 00:06:24.160
I don't have an 11 there.

00:06:24.160 --> 00:06:26.460
So that doesn't make
the intersection.

00:06:26.460 --> 00:06:27.990
I have a 4 here.

00:06:27.990 --> 00:06:29.210
I also have a 4 here.

00:06:29.210 --> 00:06:34.300
So 4 is in A and B. It's in A
and B. So I'll put a 4 here.

00:06:34.300 --> 00:06:39.040
The number 12, it's in A and
B. So I'll put a 12 here.

00:06:39.040 --> 00:06:41.780
The number 7 is only in A.

00:06:41.780 --> 00:06:44.850
And the number, I
guess, 13, 10 and 3

00:06:44.850 --> 00:06:47.690
is only in B, so we're done.

00:06:47.690 --> 00:06:52.706
The set of 4 and 12 is the
intersection of sets A and B.

00:06:52.706 --> 00:06:54.080
And we could even,
if we want to,

00:06:54.080 --> 00:06:55.663
we could even label
this as a new set.

00:06:55.663 --> 00:06:58.640
We could say set C is the
intersection of A and B,

00:06:58.640 --> 00:07:01.290
and it's this set
right over here.

00:07:01.290 --> 00:07:02.810
Now let's think about union.

00:07:02.810 --> 00:07:08.210
Let's think about A-- I
want to do that in orange.

00:07:08.210 --> 00:07:14.200
Let's think about
A union B. What

00:07:14.200 --> 00:07:16.810
are all the elements
that are in A or B?

00:07:19.450 --> 00:07:23.580
Well, we can just literally put
all the elements in A, 11, 4,

00:07:23.580 --> 00:07:25.740
12, 7.

00:07:25.740 --> 00:07:29.290
And then put the things in
B that aren't already in A.

00:07:29.290 --> 00:07:30.850
So let's see, 13.

00:07:30.850 --> 00:07:35.820
We already put the 4 and
the 12, a 10 and a 3.

00:07:35.820 --> 00:07:37.840
And I could write this
in any order I want.

00:07:37.840 --> 00:07:40.440
We don't care about order if
we're thinking about a set.

00:07:40.440 --> 00:07:42.992
So this right here is the union.


Married taxes clarification

WEBVTT
Kind: captions
Language: en

00:00:00.492 --> 00:00:02.157
Want to make a few clarifications

00:00:02.157 --> 00:00:04.827
on the video on the marriage penalty.

00:00:04.827 --> 00:00:08.603
The first is to point out
a minor arithmetic error

00:00:08.603 --> 00:00:11.004
is that when I calculated
the amount of taxes

00:00:11.004 --> 00:00:12.470
to pay on this bracket,

00:00:12.470 --> 00:00:17.603
so the 15% of the increment
between 17,850 and 72,500,

00:00:17.603 --> 00:00:21.136
that is actually 8,198

00:00:21.136 --> 00:00:24.074
and since that was 8,198
this right over here

00:00:24.074 --> 00:00:25.741
would have been $10 higher.

00:00:25.741 --> 00:00:29.137
So it's 43,466.

00:00:29.137 --> 00:00:30.671
It doesn't change at all the ideas.

00:00:30.671 --> 00:00:31.907
It's actually a small amount of money

00:00:31.907 --> 00:00:32.963
in the whole context of things,

00:00:32.963 --> 00:00:36.074
but I just wanted to get the
math a little bit more correct,

00:00:36.074 --> 00:00:38.407
but you still see that you
have a marriage penalty.

00:00:38.407 --> 00:00:40.408
But the more important
thing that I want to clarify

00:00:40.408 --> 00:00:43.137
is I saw in the discussion on
the marriage penalty videos,

00:00:43.137 --> 00:00:43.734
some people saying,

00:00:43.734 --> 00:00:48.363
"Okay, fine. If it costs more
to file married jointly,"

00:00:48.363 --> 00:00:51.055
"well, why don't those people
just opt to file as individuals"

00:00:51.055 --> 00:00:53.227
"and then they'd just have
to pay this right over here"

00:00:53.227 --> 00:00:55.857
"and they could essentially opt
out of the marriage penalty."

00:00:55.870 --> 00:00:59.242
And I want to clarify is
that is not an option.

00:00:59.242 --> 00:01:03.468
If you are married, you
don't use the pure individual

00:01:03.468 --> 00:01:05.908
tax schedule. You don't
use this over here.

00:01:05.908 --> 00:01:08.824
Instead, if you are married
but you want to file separate,

00:01:08.824 --> 00:01:13.243
you use the married filing
separate tax schedule

00:01:13.243 --> 00:01:16.347
and you see in this, that this
is ... this is exactly ...

00:01:16.347 --> 00:01:19.005
it's different ... It's the same
as the individual tax schedule

00:01:19.005 --> 00:01:21.870
up until in these first three brackets,

00:01:21.870 --> 00:01:23.804
but then as we go above that bracket,

00:01:23.804 --> 00:01:25.907
it gets into the higher tax rates

00:01:25.907 --> 00:01:27.937
faster than the individual ones

00:01:27.937 --> 00:01:30.407
and it does it ... If you
look at these brackets here,

00:01:30.407 --> 00:01:32.908
you see that they're
exactly half the brackets

00:01:32.908 --> 00:01:35.270
of the married filing jointly

00:01:35.270 --> 00:01:38.004
and that's because, at least
for this couple right over here,

00:01:38.004 --> 00:01:39.908
that's making identical incomes,

00:01:39.908 --> 00:01:42.005
they're going to pay
the exact same amount,

00:01:42.005 --> 00:01:44.074
taking into account some roundoff error,

00:01:44.074 --> 00:01:48.537
for married filing separate as
they are married filing jointly.

00:01:48.537 --> 00:01:50.538
And we can go through that exercise.

00:01:50.538 --> 00:01:52.992
So each of them had
100,000 in taxable income

00:01:52.992 --> 00:01:55.562
and in Couple A example that I gave

00:01:55.562 --> 00:01:59.137
and so the first 10 per or the first 8,925

00:01:59.137 --> 00:02:00.271
they're going to pay 10%.

00:02:00.271 --> 00:02:04.997
That's just rounding. That's 890 ... 893,

00:02:04.997 --> 00:02:09.825
actually I could even say 892.5
if I want. 892.5 is 10% of that.

00:02:09.825 --> 00:02:12.491
Then on the next bracket,
they're going to pay 15%.

00:02:12.491 --> 00:02:16.936
So that is $4,099 ... $4,099.

00:02:16.936 --> 00:02:21.491
And then on the next bracket,
they're going to pay 25%.

00:02:21.491 --> 00:02:24.991
So 25% of this right over here,
actually I think I rounded

00:02:24.991 --> 00:02:27.337
this number, but we'll take
into consideration a little

00:02:27.337 --> 00:02:32.658
round off error. So 9, 238
and then they're going to pay

00:02:32.658 --> 00:02:38.158
28% ... 28% on the
increment ... The increment

00:02:38.158 --> 00:02:43.658
above 73,200. So they each
have 100,000 ... 1,2,3

00:02:43.658 --> 00:02:49.242
in taxable income. Subtract
73,000, 200 from that

00:02:49.242 --> 00:02:52.671
and they're paying 28%
on it and this gets us,

00:02:52.671 --> 00:02:54.741
each of them having to spend 20

00:02:54.741 --> 00:02:58.741
or have to pay 21,733.5 in taxes.

00:02:58.741 --> 00:03:02.492
If we combine the two for
both parties to the couple,

00:03:02.492 --> 00:03:10.575
we have 43,467 ... 43,467
which is essentially the same

00:03:10.575 --> 00:03:12.137
as if they would have had to file jointly,

00:03:12.137 --> 00:03:13.670
the difference between the 6 or the 7

00:03:13.670 --> 00:03:16.604
that's just because of some of
the round off right over here,

00:03:16.604 --> 00:03:19.158
but they had to pay the
functionally equivalent tax rate.

00:03:19.158 --> 00:03:22.736
So just to be clear, if you are
married you either have to do

00:03:22.736 --> 00:03:26.004
married filing jointly,
married filing separate.

00:03:26.004 --> 00:03:27.670
There's also a separate head of household,

00:03:27.670 --> 00:03:30.671
but you do not have the option
of filing under an individual,

00:03:30.671 --> 00:03:32.915
so you can't just opt out
of the marriage penalty,

00:03:32.915 --> 00:03:35.660
if it happens to exist for the scenario

00:03:35.660 --> 00:03:39.660
that you happen to fall into.


Marriage penalty

WEBVTT
Kind: captions
Language: en

00:00:00.960 --> 00:00:02.668
Voiceover: In Couple A, right over here,

00:00:02.668 --> 00:00:07.038
I have 2 individuals
who make $100,000 each

00:00:07.038 --> 00:00:09.072
in taxable income.

00:00:09.072 --> 00:00:10.614
The first thing I want to think about

00:00:10.614 --> 00:00:12.200
is how much they would pay

00:00:12.200 --> 00:00:14.960
if they were taxed as individuals.

00:00:14.960 --> 00:00:17.533
Let's look at the individual
tax brackets here,

00:00:17.533 --> 00:00:20.457
and get our calculator to
figure out what that would be.

00:00:20.457 --> 00:00:24.619
For each of them, the first
8,925 of taxable income

00:00:24.619 --> 00:00:26.291
is going to be taxed at 10%,

00:00:26.291 --> 00:00:29.074
and if we round, that's $893.

00:00:29.074 --> 00:00:31.125
$893.

00:00:31.125 --> 00:00:35.621
Then the next increment,
from 8,925 to 36,250,

00:00:35.621 --> 00:00:37.676
is going to be taxed at 15%.

00:00:37.676 --> 00:00:40.205
I pre-calculated what that is.

00:00:40.205 --> 00:00:42.889
That's $4,099, rounding a bit.

00:00:42.889 --> 00:00:44.534
4,099.

00:00:44.534 --> 00:00:48.002
Then the increment up to $87,850

00:00:48.002 --> 00:00:49.789
is going to be taxed at 25%,

00:00:49.789 --> 00:00:54.076
and that gets us $12,900.

00:00:54.076 --> 00:00:56.808
Then the increment above 87,850,

00:00:56.808 --> 00:00:58.713
this is essentially the
bracket they fall into,

00:00:58.713 --> 00:01:02.404
because they make less than $183,250,

00:01:02.404 --> 00:01:04.737
that's going to be taxed at 28%.

00:01:04.737 --> 00:01:11.225
It's going to be + .28 x the increment

00:01:11.225 --> 00:01:17.472
above 87,850, so we have
100,000 of taxable income.

00:01:17.472 --> 00:01:18.737
Do I have the right number of zeros?

00:01:18.737 --> 00:01:20.139
Let me see; 1 ...

00:01:20.139 --> 00:01:22.211
That's 100; that's 10,000 right now.

00:01:22.211 --> 00:01:24.666
That is 100,000; did I do that?

00:01:24.666 --> 00:01:29.484
Yeah, 100,000 - 87,850.

00:01:29.484 --> 00:01:36.114
87,850, gets us to $21,294.

00:01:36.114 --> 00:01:38.338
This is what they would
each pay as individuals,

00:01:38.338 --> 00:01:39.468
but we're going to look
at them as a couple,

00:01:39.468 --> 00:01:41.341
so as a couple, both of them combined,

00:01:41.341 --> 00:01:44.333
if we multiply by 2, both
of them are combined,

00:01:44.333 --> 00:01:46.117
if they were taxed as individuals,

00:01:46.117 --> 00:01:47.290
or if they had never got married,

00:01:47.290 --> 00:01:48.804
and, I don't know, they
just lived together,

00:01:48.804 --> 00:01:53.934
what their combined taxes
would be, is $42,588.

00:01:53.934 --> 00:01:59.410
So $42,588, combined,
if they're not married.

00:01:59.410 --> 00:02:00.956
Now let's think about
how much they would pay

00:02:00.956 --> 00:02:04.139
as a married couple,
where they have $200,000

00:02:04.139 --> 00:02:05.984
of combined taxable income.

00:02:05.984 --> 00:02:10.370
Now we would look at the filing
jointly married brackets,

00:02:10.370 --> 00:02:13.753
and even if you're married
and you file as individuals,

00:02:13.753 --> 00:02:15.541
your brackets are essentially going to be

00:02:15.541 --> 00:02:17.471
half of these brackets right over here,

00:02:17.471 --> 00:02:19.338
so it comes out economically equivalent,

00:02:19.338 --> 00:02:21.756
or it comes out economically equivalent

00:02:21.756 --> 00:02:23.612
if you make the same incomes.

00:02:23.612 --> 00:02:25.289
We're going to talk about
that a little bit more.

00:02:25.289 --> 00:02:26.423
Let's look at this married,

00:02:26.423 --> 00:02:29.469
filing jointly, scenario for Couple A.

00:02:29.469 --> 00:02:31.806
Let's get the calculator back out.

00:02:31.806 --> 00:02:33.941
Now we'll look at the married brackets.

00:02:33.941 --> 00:02:39.604
So the first 17,850 is
going to be taxed at 10%.

00:02:39.604 --> 00:02:40.672
You might already notice that,

00:02:40.672 --> 00:02:42.341
at least these first few brackets

00:02:42.341 --> 00:02:44.091
are exactly twice the numbers

00:02:44.091 --> 00:02:45.517
as these brackets right over here,

00:02:45.517 --> 00:02:47.877
and the general idea is
you now have 2 people,

00:02:47.877 --> 00:02:49.952
so they can essentially
have twice the income

00:02:49.952 --> 00:02:52.139
before they fall into another bracket.

00:02:52.139 --> 00:02:53.164
But that keeps on going

00:02:53.164 --> 00:02:55.336
until you get to this
point right over here,

00:02:55.336 --> 00:02:56.812
and that's actually the
whole point of this video;

00:02:56.812 --> 00:02:58.674
to explore whether this results in

00:02:58.674 --> 00:03:03.168
married couples paying
larger or smaller taxes.

00:03:03.168 --> 00:03:05.174
Let's think about how
much this couple's paying.

00:03:05.174 --> 00:03:13.264
The first 17,850, 10%; that's $1,785.

00:03:13.264 --> 00:03:16.628
Then the increment up to 72,500

00:03:16.628 --> 00:03:19.005
is going to be taxed at 15%.

00:03:19.005 --> 00:03:23.205
Pre-calculated, that is
$8,188, right over there.

00:03:23.205 --> 00:03:26.801
Then the increment up to 146,400

00:03:26.801 --> 00:03:29.137
is going to be taxed at 25%.

00:03:29.137 --> 00:03:36.537
Pre-calculated that as $18,475.

00:03:36.537 --> 00:03:38.342
Oh, I don't want to have that.

00:03:38.342 --> 00:03:41.300
Let me delete one of these plus signs.

00:03:41.300 --> 00:03:43.622
Then, finally, finally,

00:03:43.622 --> 00:03:45.629
we fall into this bracket right over here.

00:03:45.629 --> 00:03:47.737
It's going to be taxed at 20%.

00:03:47.737 --> 00:03:51.880
The increment above 146,400,

00:03:51.880 --> 00:03:53.135
the increment above that

00:03:53.135 --> 00:03:54.959
is going to be taxed at 28%,

00:03:54.959 --> 00:03:58.401
so it's 28% x 200,000.

00:03:58.401 --> 00:04:05.879
200, 1, 2, 3, - 146,400,

00:04:05.879 --> 00:04:13.141
and we get combined taxes of 43,456.

00:04:13.141 --> 00:04:17.070
43,456.

00:04:17.070 --> 00:04:19.608
Now, what immediately jumps out at you?

00:04:19.608 --> 00:04:22.406
Well, first, these are
not the same number.

00:04:22.406 --> 00:04:24.206
In particular, when they're married,

00:04:24.206 --> 00:04:26.583
they pay higher taxes,

00:04:26.583 --> 00:04:29.489
so this couple, that they
have fairly high income,

00:04:29.489 --> 00:04:31.002
and they both make the same amount,

00:04:31.002 --> 00:04:32.826
they would have actually paid fewer taxes

00:04:32.826 --> 00:04:34.337
if they never got married,

00:04:34.337 --> 00:04:36.168
and if they just filed as individuals.

00:04:36.168 --> 00:04:37.207
Now, when they're married,

00:04:37.207 --> 00:04:38.607
they're paying more taxes,

00:04:38.607 --> 00:04:40.841
and the main idea is, they
fall into this bracket,

00:04:40.841 --> 00:04:42.607
and this bracket came faster

00:04:42.607 --> 00:04:44.681
than twice the rate at
which this bracket came,

00:04:44.681 --> 00:04:46.739
when they were just filing individually,

00:04:46.739 --> 00:04:49.207
and so they fell into
the 28% bracket faster,

00:04:49.207 --> 00:04:52.446
so they had to pay 28% on
more of their combined income;

00:04:52.446 --> 00:04:54.805
they ended up having a bigger tax bill.

00:04:54.805 --> 00:04:56.947
When people talk about
the marriage penalty,

00:04:56.947 --> 00:04:58.409
this is what they're talking about.

00:04:58.409 --> 00:05:00.200
These people are essentially paying a tax

00:05:00.200 --> 00:05:01.945
because they got married.

00:05:01.945 --> 00:05:07.522
This is the marriage penalty.

00:05:07.522 --> 00:05:10.200
Now, let's explore if there's
always a marriage penalty.

00:05:10.200 --> 00:05:11.369
If there's always a case,

00:05:11.369 --> 00:05:12.474
that if by getting married,

00:05:12.474 --> 00:05:14.775
you're going to pay more by income taxes.

00:05:14.775 --> 00:05:17.692
Here we have Couple B, and
they have less equal income.

00:05:17.692 --> 00:05:21.136
They still have a combined
income of $200,000,

00:05:21.136 --> 00:05:25.204
so if you look at the
married filing jointly,

00:05:25.204 --> 00:05:28.536
they're still going to pay 43,456

00:05:28.536 --> 00:05:30.110
when they file jointly,

00:05:30.110 --> 00:05:31.472
but let's see how much they would pay

00:05:31.472 --> 00:05:33.201
if they were individuals;

00:05:33.201 --> 00:05:34.394
if they never got married,

00:05:34.394 --> 00:05:37.139
and we combine how much
they would have had to pay.

00:05:37.139 --> 00:05:39.113
Let's get the calculator back out.

00:05:39.113 --> 00:05:40.609
First we're going to think about

00:05:40.609 --> 00:05:42.704
the first member of the couple,

00:05:42.704 --> 00:05:45.474
who makes 180,000 in taxable income.

00:05:45.474 --> 00:05:46.806
They're going to pay 10%

00:05:46.806 --> 00:05:51.695
on the first 8,925, so that's 893,

00:05:51.695 --> 00:05:54.334
and then we can add that to 4,099;

00:05:54.334 --> 00:05:55.467
we've done this already.

00:05:55.467 --> 00:05:56.936
4,099.

00:05:56.936 --> 00:05:59.618
To that we could add 12,900.

00:05:59.618 --> 00:06:02.407
12,900.

00:06:02.407 --> 00:06:03.678
And then, to that,

00:06:03.678 --> 00:06:09.806
we're going to add 28% of
the increment above ...

00:06:09.806 --> 00:06:13.669
so he makes or she makes 180,000.

00:06:13.669 --> 00:06:20.208
180, 1, 2, 3, - 87,850.

00:06:20.208 --> 00:06:23.876
87,850.

00:06:23.876 --> 00:06:26.540
So that's the increment above 87,850,

00:06:26.540 --> 00:06:28.407
and we get this spouse,

00:06:28.407 --> 00:06:29.918
this member of the couple,

00:06:29.918 --> 00:06:34.733
is going to pay 43,694.

00:06:34.733 --> 00:06:36.554
Now, to that we're going to have to add

00:06:36.554 --> 00:06:39.281
the amount that the other
member that might pay.

00:06:39.281 --> 00:06:43.921
He is going to pay 893 on the first 8,925,

00:06:43.921 --> 00:06:48.936
so it's going to be 893 plus the 15%

00:06:48.936 --> 00:06:52.094
of the increment above 8,925.

00:06:52.094 --> 00:07:06.334
So, + .15 x 20,000; 1, 2, 3, - 8,925,

00:07:06.334 --> 00:07:09.343
gets us to, this member of the couple

00:07:09.343 --> 00:07:14.138
is going to pay, let's
see, 2,554 in taxes.

00:07:14.138 --> 00:07:16.146
If we add it to the other
member of the couple,

00:07:16.146 --> 00:07:21.010
so we add that answer + 43,694,

00:07:21.010 --> 00:07:22.177
that's what the larger earner

00:07:22.177 --> 00:07:24.271
is going to have to pay in taxes,

00:07:24.271 --> 00:07:28.096
we get 46,248; we'll just round to that.

00:07:28.096 --> 00:07:33.093
46,248.

00:07:33.093 --> 00:07:34.937
So here, all of a
sudden, we see a scenario

00:07:34.937 --> 00:07:36.169
where the opposite thing;

00:07:36.169 --> 00:07:38.937
the higher value is if
they don't get married.

00:07:38.937 --> 00:07:43.208
In this situation, they
actually got a marriage benefit.

00:07:43.208 --> 00:07:47.602
They got a marriage benefit.

00:07:47.602 --> 00:07:49.873
Now, why did this happen?

00:07:49.873 --> 00:07:51.272
The thing that might
have jumped out to you,

00:07:51.272 --> 00:07:53.337
both of these people had high incomes,

00:07:53.337 --> 00:07:55.069
and they had very equal incomes,

00:07:55.069 --> 00:07:56.143
while both of these people,

00:07:56.143 --> 00:07:57.883
their combined income was the same,

00:07:57.883 --> 00:07:59.561
but there was less equal,

00:07:59.561 --> 00:08:01.091
and so essentially what happened here,

00:08:01.091 --> 00:08:03.013
this person filed by themselves;

00:08:03.013 --> 00:08:04.538
on the individual tax bracket,

00:08:04.538 --> 00:08:08.752
they go up the brackets very,
very, very, very quickly,

00:08:08.752 --> 00:08:09.884
and then this person,

00:08:09.884 --> 00:08:14.274
well, they're not paying much in taxes,

00:08:14.274 --> 00:08:16.226
but this person is paying the bulk of it.

00:08:16.226 --> 00:08:19.799
By becoming a couple, by getting married,

00:08:19.799 --> 00:08:21.469
as a combined entity,

00:08:21.469 --> 00:08:23.409
and pretty much this is
the main beneficiary,

00:08:23.409 --> 00:08:25.347
that 180,000 in taxable income,

00:08:25.347 --> 00:08:26.971
that's most of the 200,000,

00:08:26.971 --> 00:08:29.800
they're able to move up the
tax brackets a lot slower,

00:08:29.800 --> 00:08:32.550
so they're getting taxed at 28%

00:08:32.550 --> 00:08:34.467
on a much smaller
fraction of their income.

00:08:34.467 --> 00:08:35.801
They're getting taxed at 25%

00:08:35.801 --> 00:08:37.468
on a much smaller
fraction of their income.

00:08:37.468 --> 00:08:38.936
They're getting taxed at 10%

00:08:38.936 --> 00:08:40.739
on a larger fraction of the income

00:08:40.739 --> 00:08:43.536
than when, especially this
individual right over here,

00:08:43.536 --> 00:08:45.630
filed as an individual.

00:08:45.630 --> 00:08:47.378
In general, if you have a couple

00:08:47.378 --> 00:08:49.800
with very high taxable income,

00:08:49.800 --> 00:08:52.141
and they both make roughly equal,

00:08:52.141 --> 00:08:54.878
they both have very high
taxable incomes as individuals,

00:08:54.878 --> 00:08:58.044
they are likely to see a marriage penalty,

00:08:58.044 --> 00:08:59.467
like we saw in scenario 1.

00:08:59.467 --> 00:09:01.043
If you have a couple where their salaries

00:09:01.043 --> 00:09:03.204
are very unequal, even if
their combined salaries

00:09:03.204 --> 00:09:06.141
are quite high, you actually
might get a marriage benefit,

00:09:06.141 --> 00:09:09.467
because they move through
the tax brackets faster.

00:09:09.467 --> 00:09:10.739
Now let's think about Couple C,

00:09:10.739 --> 00:09:12.137
and I'll let you think
about it a little bit.

00:09:12.137 --> 00:09:15.670
You have equal taxable incomes here,

00:09:15.670 --> 00:09:17.803
so it's like Couple A,

00:09:17.803 --> 00:09:20.301
but their total taxable income isn't high.

00:09:20.301 --> 00:09:24.677
In fact, if you look at
the married filing jointly,

00:09:24.677 --> 00:09:27.563
they fall under this tax
bracket right over here.

00:09:27.563 --> 00:09:29.221
And, notice, up to this point,

00:09:29.221 --> 00:09:31.799
all the tax brackets are exactly double

00:09:31.799 --> 00:09:33.543
the individual tax bracket,

00:09:33.543 --> 00:09:35.416
so it goes exactly twice as slow.

00:09:35.416 --> 00:09:36.627
I guess you could think about it as

00:09:36.627 --> 00:09:38.009
a fraction of income,

00:09:38.009 --> 00:09:39.678
when you have 2 people making the same,

00:09:39.678 --> 00:09:41.137
you're having the same fraction taxed

00:09:41.137 --> 00:09:44.073
at 20% or at 15% or at 25%.

00:09:44.073 --> 00:09:45.536
I encourage you to do the math here.

00:09:45.536 --> 00:09:46.871
It's just good practice,

00:09:46.871 --> 00:09:47.624
but what you're going to see,

00:09:47.624 --> 00:09:50.058
is these people are going
to pay the same taxes.

00:09:50.058 --> 00:09:52.120
This is going to be the same

00:09:52.120 --> 00:09:54.945
whether or not they are
married or not married,

00:09:54.945 --> 00:09:56.855
because they're not making
enough combined income

00:09:56.855 --> 00:09:58.369
to get the penalty, where the brackets

00:09:58.369 --> 00:10:01.051
start accelerating a little bit faster.

00:10:01.051 --> 00:10:03.700
Anyway, hopefully that
clarifies things a little bit.


Short sale basics

WEBVTT
Kind: captions
Language: en

00:00:00.830 --> 00:00:05.460
You bought your house
recently for $200,000,

00:00:05.460 --> 00:00:08.340
and the way that you
were able to pay $200,000

00:00:08.340 --> 00:00:10.530
is you were able
to put 25% down.

00:00:10.530 --> 00:00:17.170
So you made a
$50,000 down payment.

00:00:17.170 --> 00:00:21.440
And the balance, the other 75%,
you borrowed from the bank.

00:00:21.440 --> 00:00:31.010
So $150,000 loan from
the bank, and you pay it

00:00:31.010 --> 00:00:33.027
off with your
monthly payments that

00:00:33.027 --> 00:00:36.130
include paying down the
loan and the interest.

00:00:36.130 --> 00:00:37.660
Now something
happened in your life.

00:00:37.660 --> 00:00:40.550
Maybe, unfortunately, you
lost your job or your spouse

00:00:40.550 --> 00:00:41.700
lost their job.

00:00:41.700 --> 00:00:44.310
Or maybe you just
overestimated your ability

00:00:44.310 --> 00:00:47.180
to pay off your
mortgage payments,

00:00:47.180 --> 00:00:50.120
and so you're having
difficulty making them.

00:00:50.120 --> 00:00:52.940
Frankly, you can't make your
mortgage payments anymore.

00:00:52.940 --> 00:00:57.110
So in this situation, you have
a couple of options for you.

00:00:57.110 --> 00:01:00.790
One option is you can
try to sell the house, so

00:01:00.790 --> 00:01:02.320
some type of a sale.

00:01:02.320 --> 00:01:05.370
Or the other option is you could
essentially give the house back

00:01:05.370 --> 00:01:08.320
to the bank, and that
we'll call foreclosure.

00:01:08.320 --> 00:01:09.970
In another video
we'll go more in depth

00:01:09.970 --> 00:01:11.290
of what happens in foreclosure.

00:01:11.290 --> 00:01:13.180
But the bank's going
to get the property,

00:01:13.180 --> 00:01:14.140
try to auction it off.

00:01:14.140 --> 00:01:16.470
If it can't auction it off, then
the bank will own the property.

00:01:16.470 --> 00:01:18.890
And then maybe they'll try
to sell it at a later date.

00:01:18.890 --> 00:01:21.260
And this is not a
good option for you.

00:01:21.260 --> 00:01:24.850
This will kill
your credit, which

00:01:24.850 --> 00:01:29.184
will make it very hard for
you to get a loan-- really

00:01:29.184 --> 00:01:31.100
of any type of loan, but
especially a mortgage

00:01:31.100 --> 00:01:33.480
loan-- anytime in
the near future,

00:01:33.480 --> 00:01:36.800
really over the next
several or many years.

00:01:36.800 --> 00:01:41.030
So you say, OK, I want
to do the sale option.

00:01:41.030 --> 00:01:44.140
Now unfortunately for
you, the housing market

00:01:44.140 --> 00:01:46.240
has deflated dramatically.

00:01:46.240 --> 00:01:48.460
And so when you
talk to a realtor,

00:01:48.460 --> 00:01:50.040
the realtor figures
out, well look,

00:01:50.040 --> 00:01:51.587
after all is said
and done-- I mean,

00:01:51.587 --> 00:01:53.670
you try to sell it for
more than your loan amount,

00:01:53.670 --> 00:01:54.628
but you're not able to.

00:01:54.628 --> 00:01:56.440
You're getting
really low offers.

00:01:56.440 --> 00:01:59.329
The offers are like
120,000, 130,000.

00:01:59.329 --> 00:02:01.120
And so when you really
sit with the realtor

00:02:01.120 --> 00:02:02.820
and you think about
what the market is

00:02:02.820 --> 00:02:04.640
willing to pay for
your house, you

00:02:04.640 --> 00:02:07.040
realize that the most you're
going to get for your house

00:02:07.040 --> 00:02:09.440
after you pay the real
estate commissions and all

00:02:09.440 --> 00:02:11.840
the other things that are
involved when you sell a house,

00:02:11.840 --> 00:02:19.670
you could get maybe
120,000 for the house.

00:02:19.670 --> 00:02:22.566
And let's say you still
owe pretty close to 150,000

00:02:22.566 --> 00:02:23.950
on the loan for the bank.

00:02:23.950 --> 00:02:26.270
Your loan might have even
been an interest-only loan,

00:02:26.270 --> 00:02:27.728
but even after a
year or two you're

00:02:27.728 --> 00:02:30.211
probably not going to pay down
the balance of your loan too

00:02:30.211 --> 00:02:30.710
much.

00:02:30.710 --> 00:02:34.070
It might be like
140,000 or 145,000.

00:02:34.070 --> 00:02:37.860
And you're only able to
get 120,000 for the house.

00:02:37.860 --> 00:02:38.652
So what do you do?

00:02:38.652 --> 00:02:40.110
You don't want to
go to a situation

00:02:40.110 --> 00:02:42.450
where you sell the
house for 120,000,

00:02:42.450 --> 00:02:45.590
you still owe
150,000 on the loan.

00:02:45.590 --> 00:02:49.380
And so you're still going to
have to pay $30,000 for a house

00:02:49.380 --> 00:02:51.560
that you don't
even have anymore.

00:02:51.560 --> 00:02:53.030
So what do you do?

00:02:53.030 --> 00:02:55.750
Well, one option--
and this is not always

00:02:55.750 --> 00:03:00.750
going to be an option-- is
to go to your bank and say,

00:03:00.750 --> 00:03:02.750
can I do a short sale.

00:03:05.400 --> 00:03:08.780
And a short sale is
essentially selling the house

00:03:08.780 --> 00:03:10.790
for less than you
owe on the loan.

00:03:10.790 --> 00:03:12.320
So let me write this down.

00:03:12.320 --> 00:03:18.030
Selling for less
than what you owe.

00:03:24.160 --> 00:03:26.525
And the bank doesn't
have to, but the bank

00:03:26.525 --> 00:03:27.900
might-- well, one,
the bank would

00:03:27.900 --> 00:03:31.030
have to agree to the short sale,
because their loan is secured

00:03:31.030 --> 00:03:32.860
by this property
that you're selling.

00:03:32.860 --> 00:03:34.282
And in most cases,
the reason why

00:03:34.282 --> 00:03:35.740
you would want to
do the short sale

00:03:35.740 --> 00:03:39.770
is that the bank may forgive
the balance of the loan.

00:03:39.770 --> 00:03:41.560
So you try to convince
a bank to forgive.

00:03:50.600 --> 00:03:52.330
So for example, you
could go to the bank.

00:03:52.330 --> 00:03:54.210
And you say, look,
I lost my job.

00:03:54.210 --> 00:03:57.160
We're having trouble
paying for this house now.

00:03:57.160 --> 00:03:59.590
After paying real estate
commissions and all the rest,

00:03:59.590 --> 00:04:01.620
I could only get
120,000 for this house.

00:04:01.620 --> 00:04:04.130
I know that I owe you 150,000.

00:04:04.130 --> 00:04:07.400
Can you forgive the
extra 30,000 that I owe?

00:04:07.400 --> 00:04:09.550
And the bank might
choose to do that.

00:04:09.550 --> 00:04:11.950
Now, even in this
situation, you have

00:04:11.950 --> 00:04:13.809
to be very, very, very,
very, very careful.

00:04:13.809 --> 00:04:15.600
And this has to be
negotiated with the bank

00:04:15.600 --> 00:04:18.810
and all the rest is because
the bank could still report you

00:04:18.810 --> 00:04:24.900
to credit agencies,
which is really not

00:04:24.900 --> 00:04:28.230
going to be a whole lot better
than getting a foreclosure.

00:04:28.230 --> 00:04:31.540
So in part of this negotiation
process-- and the bank

00:04:31.540 --> 00:04:34.340
is under no obligation to
either forgive your loan

00:04:34.340 --> 00:04:36.740
and let you go forth
with that short sale.

00:04:36.740 --> 00:04:39.104
And they're under no
obligation to hide it--

00:04:39.104 --> 00:04:40.520
I wouldn't say
hide it, but to not

00:04:40.520 --> 00:04:42.170
talk to the credit agencies.

00:04:42.170 --> 00:04:44.980
But part of that negotiation
you should try to convince them,

00:04:44.980 --> 00:04:47.200
or you would ideally
try to convince them,

00:04:47.200 --> 00:04:49.520
not to report it to
the credit agencies.

00:04:49.520 --> 00:04:52.330
The other issue with a
short sale-- and this

00:04:52.330 --> 00:04:55.580
is something that few people
think about-- is when you have,

00:04:55.580 --> 00:05:00.880
let's say, in this
case $30,000 forgiven,

00:05:00.880 --> 00:05:04.330
the IRS might consider
that to be income.

00:05:04.330 --> 00:05:09.199
So you might have to pay income
tax on this right over here.

00:05:09.199 --> 00:05:10.490
And people always ask me, wait.

00:05:10.490 --> 00:05:14.760
If someone forgives a loan,
why is that considered income?

00:05:14.760 --> 00:05:16.370
And the best way
to think about it

00:05:16.370 --> 00:05:18.980
is if the IRS did not
consider that income,

00:05:18.980 --> 00:05:21.150
it would be a huge
loophole in how

00:05:21.150 --> 00:05:22.720
someone could
compensate someone.

00:05:22.720 --> 00:05:26.260
If I wanted to pay someone,
I could give them--

00:05:26.260 --> 00:05:27.450
so this is me.

00:05:27.450 --> 00:05:30.020
This is the person
that I'm trying to pay.

00:05:30.020 --> 00:05:32.680
I could give them a loan.

00:05:32.680 --> 00:05:37.340
Let's say I could give
them $100,000 loan,

00:05:37.340 --> 00:05:39.100
and then I could
forgive the loan.

00:05:39.100 --> 00:05:42.350
And so it would essentially be
I gave them $100,000 maybe to do

00:05:42.350 --> 00:05:43.110
some work for me.

00:05:43.110 --> 00:05:45.412
It would be a transfer
of money by giving a loan

00:05:45.412 --> 00:05:47.370
and then keep forgiving
over and over and over.

00:05:47.370 --> 00:05:50.500
It would be completely
identical to giving someone

00:05:50.500 --> 00:05:52.680
a gift, which is taxed,
or giving someone

00:05:52.680 --> 00:05:54.510
some type of income.

00:05:54.510 --> 00:05:56.360
So a short sale,
you're not always

00:05:56.360 --> 00:05:58.690
going to be able to do
it in this scenario.

00:05:58.690 --> 00:06:01.750
But if your house is
selling less than the value

00:06:01.750 --> 00:06:05.130
of the loan, you might be able
to negotiate with the bank

00:06:05.130 --> 00:06:07.900
to allow you to sell the
house for less than the value

00:06:07.900 --> 00:06:08.520
of the loan.

00:06:08.520 --> 00:06:10.410
The bank's other
option is that they're

00:06:10.410 --> 00:06:12.270
going to have to go into
some type of a foreclosure

00:06:12.270 --> 00:06:14.550
proceeding and take
ownership of the house, which

00:06:14.550 --> 00:06:16.770
is expensive for
the bank as well.

00:06:16.770 --> 00:06:19.200
But they keys here
are even if the bank

00:06:19.200 --> 00:06:22.060
is willing to let you
sell the house for less

00:06:22.060 --> 00:06:25.650
than the loan amount,
the owner really

00:06:25.650 --> 00:06:27.550
needs to make sure
that the bank is

00:06:27.550 --> 00:06:31.260
willing to forgive the
balance and ideally not report

00:06:31.260 --> 00:06:33.400
to credit agencies.


Calculating state taxes and take home pay

WEBVTT
Kind: captions
Language: en

00:00:00.572 --> 00:00:03.238
Now let's figure out how
much the single person

00:00:03.238 --> 00:00:07.402
making $50,000 a year would
pay in state income taxes,

00:00:07.402 --> 00:00:10.004
assuming that they're in a
state that has income taxes.

00:00:10.004 --> 00:00:12.870
And this right here are the
current tax brackets for my state

00:00:12.870 --> 00:00:15.535
and every state will have
different income tax brackets and

00:00:15.535 --> 00:00:18.270
they're likely to change year
after year, but the important

00:00:18.270 --> 00:00:21.291
thing to take away is just
how all of this is calculated.

00:00:21.291 --> 00:00:24.075
So at the state level, you
still get ... you still,

00:00:24.075 --> 00:00:26.292
or at least at the state I'm in,
there is a standard deduction.

00:00:26.292 --> 00:00:31.436
It's $3,769 for a single
filer, for a single person.

00:00:31.436 --> 00:00:33.403
And instead of having a personal exemption

00:00:33.403 --> 00:00:35.240
which reduces your taxable income,

00:00:35.240 --> 00:00:37.353
which is we saw at the federal level.

00:00:37.353 --> 00:00:40.070
They have a tax credit,
a personal tax credit

00:00:40.070 --> 00:00:42.337
which essentially just
a credit on your taxes.

00:00:42.337 --> 00:00:44.202
So this doesn't reduce
your taxable income.

00:00:44.202 --> 00:00:45.563
This can actually be used against

00:00:45.563 --> 00:00:48.004
the actual taxes that you owe.

00:00:48.004 --> 00:00:49.207
So first, let's think about what our

00:00:49.207 --> 00:00:51.896
taxable income is in my state.

00:00:51.896 --> 00:00:54.803
So I'm starting with $50,000.

00:00:54.803 --> 00:00:57.136
$50,000 is my gross income

00:00:57.136 --> 00:01:00.004
and then I have a standard
deduction in my state.

00:01:00.004 --> 00:01:06.896
A standard deduction in my
state of 3,769 ... $3,769

00:01:06.896 --> 00:01:14.971
gets me to taxable income in
my state of $46,231 or $46,231.

00:01:14.971 --> 00:01:16.070
Now if you look at these brackets,

00:01:16.070 --> 00:01:19.669
it looks like we are falling into
this 8% bracket right over here,

00:01:19.669 --> 00:01:21.670
but just as we've said in this
... in the federal example,

00:01:21.670 --> 00:01:27.480
that does not mean we pay 8%
on all 46,000 ... $46,231.

00:01:27.480 --> 00:01:29.563
It means we only pay
the 8% on the increment

00:01:29.563 --> 00:01:34.004
above $37,005. For the rest
of the brackets, we pay

00:01:34.004 --> 00:01:38.938
1% on the first 7,000 or for
$7,124, 2% on the increment

00:01:38.938 --> 00:01:42.737
up to 16,980. So on and so forth.

00:01:42.737 --> 00:01:45.004
So let's calculate what that is.

00:01:45.004 --> 00:01:50.269
So we're going to pay ...
We're going to pay 1% ... 1%

00:01:50.269 --> 00:01:58.313
on the first $7,124. Then to
that, we're going to pay 2%.

00:01:58.313 --> 00:02:05.069
We're going to pay 2% on
the increment up to $16,980

00:02:05.069 --> 00:02:12.812
and that increment is
$16,980 - $7,124 and then

00:02:12.812 --> 00:02:17.480
we are going to pay 4%
... We're going to pay 4%

00:02:17.480 --> 00:02:25.562
on the increment up to
$26,657 and so that's

00:02:25.562 --> 00:02:34.936
that number minus 16,890
and then we're going to pay

00:02:34.936 --> 00:02:38.774
6% ... We're going to pay 6%

00:02:38.774 --> 00:02:44.137
on the increment up to $37,005.

00:02:44.137 --> 00:02:50.238
So it's 37,005 - 26,657

00:02:50.238 --> 00:02:52.587
and then, we're in the home stretch here,

00:02:52.587 --> 00:02:56.812
we're going to pay ...
We're going to pay 8% on the

00:02:56.812 --> 00:03:01.480
increment ... on the
increment above $37,005.

00:03:01.480 --> 00:03:05.564
So our taxable income,
we already saw is 46,231.

00:03:05.564 --> 00:03:12.937
So it's 46,231 - 37,005.

00:03:12.937 --> 00:03:19.146
37,005 bring us to ... Did
I type all that in right?

00:03:19.146 --> 00:03:23.099
Let's see, 7 x 1% and then we have 2% x,

00:03:23.099 --> 00:03:25.515
yep that looks right and then we have 4%.

00:03:25.515 --> 00:03:28.008
I want to make sure I'm
typing all this in correctly.

00:03:28.008 --> 00:03:32.671
And then 37,000 - 26,657
and then that's 6% and then

00:03:32.671 --> 00:03:37.336
8% on that last increment.
Drum roll, please.

00:03:37.336 --> 00:03:42.813
We get to $2,018 just based on
the brackets right over here.

00:03:42.813 --> 00:03:47.671
So 2,000 ... So at the ... at the
state level ... At the state level,

00:03:47.671 --> 00:03:50.735
it looks like we have $2,018
just based on our taxable

00:03:50.735 --> 00:03:54.403
income, but now we have to
factor in this tax credit

00:03:54.403 --> 00:03:56.479
and a tax credit as opposed
to a deduction, remember,

00:03:56.479 --> 00:04:00.403
a deduction or an exemption
takes ... It reduces your taxable

00:04:00.403 --> 00:04:04.063
income. A credit goes
directly against your taxes.

00:04:04.063 --> 00:04:08.336
So we were going to pay
$2,018, but we get a credit

00:04:08.336 --> 00:04:12.337
of $102, which gets us to what?

00:04:12.337 --> 00:04:20.513
That gets us to 1,916 ...
$1,916 in state taxes.

00:04:20.513 --> 00:04:24.737
So our total taxes, $9,754
at the federal level.

00:04:24.737 --> 00:04:30.737
$1,916 at the state level and
so our actual take home pay

00:04:30.737 --> 00:04:33.738
is going to be ... Let's
see, $50,000 is what we're

00:04:33.738 --> 00:04:36.896
starting with. We're going
to pay ... We're going to pay

00:04:36.896 --> 00:04:38.197
at the federal level.

00:04:38.197 --> 00:04:39.730
I actually already figured
out in the last video

00:04:39.730 --> 00:04:41.403
what we're left with, but at
the federal level we're going to

00:04:41.403 --> 00:04:44.480
start off ... We're going to pay $9,754.

00:04:44.480 --> 00:04:50.146
Then at the state level, we're
going to pay $1,916 getting us

00:04:50.146 --> 00:04:58.404
to $38,330 take home pay.
$38,330 ... 330, is what I'm

00:04:58.404 --> 00:05:04.059
actually ... I'm actually
going to be able to spend.

00:05:04.059 --> 00:05:06.145
And so based on this, we can
figure out what an effective

00:05:06.145 --> 00:05:10.146
tax rate is, based on both the
federal and state income tax.

00:05:10.146 --> 00:05:14.671
So we are ... If we look at that
as a fraction of our original

00:05:14.671 --> 00:05:21.736
income, $50,000, we are left
with 76.6% or another way of

00:05:21.736 --> 00:05:28.729
thinking about it is, roughly
23.4 or 23⅓ % of your income

00:05:28.729 --> 00:05:31.813
gets taken for taxes. That
is your effective tax rate.

00:05:31.813 --> 00:05:33.736
So effective tax rate
... Let me write this.

00:05:33.736 --> 00:05:39.981
Effective ... Effective tax rate
and then we're including both

00:05:39.981 --> 00:05:45.032
federal ... federal +
state ... federal + state,

00:05:45.032 --> 00:05:46.205
just look at the number again.

00:05:46.205 --> 00:05:52.646
You're keeping 76.6, so you are
paying 23.4 ... 23., actually,

00:05:52.646 --> 00:06:00.204
it looks like 23.34. So
approximately 23, approximately 23%.

00:06:00.204 --> 00:06:02.737
If you want to think on a monthly basis,

00:06:02.737 --> 00:06:08.504
at $50,000 you thought ...
So $50,000, you thought

00:06:08.504 --> 00:06:13.069
that you would be taking
home $4,166 a month,

00:06:13.069 --> 00:06:16.562
but now you're actually going
to be taking home $3,000 ...

00:06:16.562 --> 00:06:23.758
38,330 / 12. You're only going
to bring home about $3,000,

00:06:23.758 --> 00:06:25.670
a little bit under $3,200 a month.

00:06:25.670 --> 00:06:29.670
So you have to plan accordingly.


Salman Khan on Charlie Rose 2/26/2013

WEBVTT
Kind: captions
Language: en

00:00:00.625 --> 00:00:02.282
Charlie: Salman Khan is here.

00:00:02.282 --> 00:00:03.789
He's the founder of Khan Academy,

00:00:03.789 --> 00:00:05.246
the online learning tube that has

00:00:05.246 --> 00:00:06.769
reached and taught millions.

00:00:06.769 --> 00:00:10.535
Forbes Magazine calls it the
largest school in the world.

00:00:10.535 --> 00:00:13.459
Bill Gates calls him a true pioneer.

00:00:13.459 --> 00:00:15.784
Khan Academy's goal is to provide a free

00:00:15.784 --> 00:00:19.422
world class education for anyone anywhere.

00:00:19.422 --> 00:00:21.092
Salman Khan has written a book describing

00:00:21.092 --> 00:00:23.554
how such a vision might be achieved.

00:00:23.554 --> 00:00:25.791
It is called The One World School House,

00:00:25.791 --> 00:00:27.388
Education Reimagined.

00:00:27.388 --> 00:00:29.558
I am pleased to have him
back on this program.

00:00:29.558 --> 00:00:30.166
Welcome.

00:00:30.166 --> 00:00:31.285
Sal: Great to be here.

00:00:31.285 --> 00:00:32.728
Charlie: When you were
here, we talked about

00:00:32.728 --> 00:00:34.577
how this whole thing started for you

00:00:34.577 --> 00:00:35.645
and the development with your niece

00:00:35.645 --> 00:00:38.007
who was down in Louisiana and you were

00:00:38.007 --> 00:00:41.707
teaching her and you used
YouTube and all of that.

00:00:41.707 --> 00:00:44.180
Where is it now?

00:00:44.180 --> 00:00:46.942
Sal: Yeah, I think when we last spoke,

00:00:46.942 --> 00:00:49.291
I think it was about 18 months ago,

00:00:49.291 --> 00:00:50.594
I think we were reaching on the order of

00:00:50.594 --> 00:00:52.528
about a million students every month.

00:00:52.528 --> 00:00:54.953
We're now at 6 million
students every month.

00:00:54.953 --> 00:00:56.755
The team is growing ... I
think when we last talked,

00:00:56.755 --> 00:01:00.626
it was a 5% team, we're
now approaching 40 people

00:01:00.626 --> 00:01:02.725
and it's really about not just the videos,

00:01:02.725 --> 00:01:04.793
although the videos are still
a big part of what we do,

00:01:04.793 --> 00:01:07.066
I'm not the only person
making videos anymore,

00:01:07.066 --> 00:01:09.001
we're now translating the videos into

00:01:09.001 --> 00:01:11.235
every major language in the world,

00:01:11.235 --> 00:01:14.787
our software platform is
being used in classrooms

00:01:14.787 --> 00:01:18.037
and outside of classrooms
around the world.

00:01:18.037 --> 00:01:23.024
It's just where it was before,
but maybe 10 times bigger.

00:01:23.024 --> 00:01:24.490
Charlie: You think you were born to teach?

00:01:26.320 --> 00:01:30.506
Sal: I enjoy it. (laughing)

00:01:30.506 --> 00:01:33.941
I wasn't born to play
basketball. (laughing)

00:01:33.941 --> 00:01:36.548
Charlie: Me neither. (laughing)

00:01:36.548 --> 00:01:39.048
But fact that you did
have a passion for it,

00:01:39.048 --> 00:01:42.699
you had a technique for it and you found

00:01:42.699 --> 00:01:45.760
more love for it than you did being,

00:01:45.760 --> 00:01:47.991
obviously because you left being in

00:01:47.991 --> 00:01:49.426
the hedge fund world.

00:01:49.426 --> 00:01:52.869
Sal: Most people don't
realize the commonality

00:01:52.869 --> 00:01:54.677
between what I was doing before and what

00:01:54.677 --> 00:01:56.386
I hope I'm doing now.

00:01:56.386 --> 00:01:58.881
Even at the hedge fund
world, it was actually

00:01:58.881 --> 00:02:01.134
an intellectually intriguing job.

00:02:01.134 --> 00:02:02.470
In some ways, it wasn't
different from what

00:02:02.470 --> 00:02:04.416
you're doing now.

00:02:04.416 --> 00:02:06.381
You have to context switch
from one space to another,

00:02:06.381 --> 00:02:07.720
you're constantly learning,

00:02:07.720 --> 00:02:10.279
you get to talk to a lot of
people to learn from them,

00:02:10.279 --> 00:02:12.433
and so for me, a big
fun part of that job was

00:02:12.433 --> 00:02:14.053
I always got to learn stuff.

00:02:14.053 --> 00:02:15.092
I couldn't communicate it as much

00:02:15.092 --> 00:02:17.218
as I might have wanted to.

00:02:17.218 --> 00:02:19.154
Now I get the chance to do both.

00:02:19.154 --> 00:02:21.569
Charlie: Where can you take this?

00:02:21.569 --> 00:02:23.467
Sal: A couple of things
that we're working on,

00:02:23.467 --> 00:02:25.296
I mentioned we're translating the videos,

00:02:25.296 --> 00:02:28.174
but we're also internationalizing
the entire site.

00:02:28.174 --> 00:02:30.712
We already have partners;
the Carlos Slim Foundation

00:02:30.712 --> 00:02:34.214
in Latin America, The
Lemon Foundation in Brazil,

00:02:34.214 --> 00:02:36.299
we recently took a trip down to Brazil

00:02:36.299 --> 00:02:38.648
and there's national interest,
the president had asked,

00:02:38.648 --> 00:02:40.556
"What are we going to
be able to do together?"

00:02:40.556 --> 00:02:41.141
Charlie: In Brazil?

00:02:41.141 --> 00:02:44.473
Sal: In Brazil. I think in the next year

00:02:44.473 --> 00:02:46.045
you're going to see Khan
Academy going global

00:02:46.045 --> 00:02:48.128
in a much more significant way.

00:02:48.128 --> 00:02:49.879
I think you're going to see,

00:02:49.879 --> 00:02:51.223
it started with videos,
we've had an online

00:02:51.223 --> 00:02:53.684
component exercises, we
can give people feedback

00:02:53.684 --> 00:02:55.069
on where they are, but we're going to make

00:02:55.069 --> 00:02:56.299
that much, much more serious.

00:02:56.299 --> 00:03:00.087
The 48 states have adopted
the common core standards.

00:03:00.087 --> 00:03:01.349
There aren't any assessments out.

00:03:01.349 --> 00:03:02.622
There are some groups out there that are

00:03:02.622 --> 00:03:05.053
going to be developing assessments.

00:03:05.053 --> 00:03:05.969
Through this whole transition,

00:03:05.969 --> 00:03:07.136
you're going to have teachers, parents and

00:03:07.136 --> 00:03:08.160
students wondering about how do they

00:03:08.160 --> 00:03:10.269
navigate the switch and
what we hope to do is

00:03:10.269 --> 00:03:12.883
take our exercises and turn them into

00:03:12.883 --> 00:03:15.303
really rigorous
assessments so that you can

00:03:15.303 --> 00:03:17.634
go to the site and get a
really strong diagnostic

00:03:17.634 --> 00:03:19.642
of what you know and what you don't know

00:03:19.642 --> 00:03:20.940
so we can narrow you in,

00:03:20.940 --> 00:03:22.523
"Here's what you need to work on."

00:03:22.523 --> 00:03:25.228
We can kind of coach you
through that process,

00:03:25.228 --> 00:03:26.582
the tools for the teachers will get better

00:03:26.582 --> 00:03:28.665
and we also want to figure out a way

00:03:28.665 --> 00:03:31.194
for you to get credit for what you know.

00:03:31.194 --> 00:03:33.081
Charlie: How far away are you from that?

00:03:33.081 --> 00:03:35.438
Sal: We've had a lot of
interesting conversations.

00:03:35.945 --> 00:03:37.821
Charlie: What's the resistance?

00:03:39.267 --> 00:03:41.382
Sal: Maybe we're just
not seeing the resistance

00:03:41.382 --> 00:03:43.866
because we're not that far along yet,

00:03:43.866 --> 00:03:46.855
but especially if you
talk about some of the

00:03:46.855 --> 00:03:50.136
core college courses or the
late high school courses,

00:03:50.136 --> 00:03:52.630
right now you have 70% of students who

00:03:52.630 --> 00:03:54.928
go to community college
have to take remedial Math.

00:03:54.928 --> 00:03:56.291
They usually don't find
that out until they

00:03:56.291 --> 00:03:58.045
show up and start paying tuition.

00:03:58.045 --> 00:03:59.880
This is something that
no one wants to happen

00:03:59.880 --> 00:04:01.569
and it's the biggest predictor of whether

00:04:01.569 --> 00:04:03.608
they're going to be able to finish or not.

00:04:03.608 --> 00:04:05.374
If we can address that so ahead of time

00:04:05.374 --> 00:04:07.211
someone could show,
"Look, I know my Algebra.

00:04:07.211 --> 00:04:08.880
I know my pre-Algebra,
I know my Trigonometry.

00:04:08.880 --> 00:04:11.490
I'm ready to engage," if someone can prove

00:04:11.490 --> 00:04:13.157
that even at the professional level,

00:04:13.157 --> 00:04:15.116
"Hey, I can program a
computer. I might not

00:04:15.116 --> 00:04:18.199
have the four year degree,
but I'm employable."

00:04:18.199 --> 00:04:20.710
We think that could have
huge implications for;

00:04:20.710 --> 00:04:22.430
one, someone who doesn't have a chance to

00:04:22.430 --> 00:04:24.861
a traditional university
or even some of the

00:04:24.861 --> 00:04:26.073
structural unemployment issues.

00:04:26.073 --> 00:04:27.907
We think it's, structural unemployment,

00:04:27.907 --> 00:04:29.742
there's a skills gap,
but we think it's even

00:04:29.742 --> 00:04:30.909
more a singling gap that ...

00:04:30.909 --> 00:04:31.795
Charlie: Signaling ...

00:04:31.795 --> 00:04:33.412
Sal: Singling gap ...
That you do have people

00:04:33.412 --> 00:04:35.185
who actually do have skills and there's

00:04:35.185 --> 00:04:36.912
no way for them to prove it.

00:04:36.912 --> 00:04:38.109
Right now we have that problem where

00:04:38.109 --> 00:04:39.945
people are learning to
do stuff on Khan Academy

00:04:39.945 --> 00:04:42.131
and they want to prove it to the world,

00:04:42.131 --> 00:04:43.458
but there's no way for
them to prove that ...

00:04:43.458 --> 00:04:44.043
Charlie: That they know something.

00:04:44.043 --> 00:04:45.027
Sal: That they know something.

00:04:45.027 --> 00:04:46.824
We have accounting videos on Khan.

00:04:46.824 --> 00:04:48.754
You can actually learn
on a pretty decent level.

00:04:48.754 --> 00:04:51.383
We have a lot more to
do, but there's no way

00:04:51.383 --> 00:04:54.210
for them to validate that,
so we imagine a world

00:04:54.210 --> 00:04:56.594
where a few years out
someone will be able to.

00:04:56.594 --> 00:04:58.464
Charlie: Who would set the standard?

00:04:58.464 --> 00:05:02.477
Sal: I think for any type of credential

00:05:02.477 --> 00:05:04.058
the key is, who is going to be consumer of

00:05:04.058 --> 00:05:06.355
the credential? Who does it matter to?

00:05:06.355 --> 00:05:08.061
For someone wanting to prove that

00:05:08.061 --> 00:05:12.167
they know Algebra, we
have to go to universities

00:05:12.167 --> 00:05:13.554
and make sure that you feel this is

00:05:13.554 --> 00:05:16.660
a credible standard that
someone has attained.

00:05:16.660 --> 00:05:19.013
If you're talking about does someone know

00:05:19.013 --> 00:05:20.056
how to program or does someone have good

00:05:20.056 --> 00:05:22.892
critical thinking skills
or does someone write well,

00:05:22.892 --> 00:05:24.277
I think you go straight
to the employers and say,

00:05:24.277 --> 00:05:28.112
"Would you respect this
type of a credential?"

00:05:28.112 --> 00:05:29.641
The thing we point out is even today,

00:05:29.641 --> 00:05:32.475
a very expensive credentials have limited

00:05:32.475 --> 00:05:33.557
information in them.

00:05:33.557 --> 00:05:36.480
You could go to a fancy
university and when

00:05:36.480 --> 00:05:39.095
a company like Google or
Microsoft interviews you,

00:05:39.095 --> 00:05:40.429
they still assume very little.

00:05:40.429 --> 00:05:41.813
They make you go through a very ...

00:05:41.813 --> 00:05:43.725
The first interview is,
"Go write Bubble Sword

00:05:43.725 --> 00:05:45.864
on the whiteboard," which
is what you typically

00:05:45.864 --> 00:05:48.331
learn the first three weeks
of Computer Science class

00:05:48.331 --> 00:05:50.225
and this someone who's
gone through four years.

00:05:50.225 --> 00:05:52.364
To some degree, if you
could take that process

00:05:52.364 --> 00:05:54.855
and turn it into a credential,
and tell the rest of the world,

00:05:54.855 --> 00:05:56.701
"You don't have to go
to a fancy university,

00:05:56.701 --> 00:05:58.069
but if you can get to this threshold,

00:05:58.069 --> 00:06:00.066
you get to round three
of the interview process

00:06:00.066 --> 00:06:06.599
at Software Company X or
Fortune 500 Company Y,"

00:06:06.599 --> 00:06:07.736
it could be a powerful thing.

00:06:07.736 --> 00:06:08.737
Charlie: This is not a silver bullet,

00:06:08.737 --> 00:06:10.374
but there is some magic here.

00:06:10.374 --> 00:06:13.602
What is it that you
understood about learning

00:06:13.602 --> 00:06:16.338
when you taught your niece way back when?

00:06:16.338 --> 00:06:17.552
Sal: Yeah, and I'll
emphasize that it's not

00:06:17.552 --> 00:06:19.874
a silver bullet. (laughter)

00:06:19.874 --> 00:06:21.176
The biggest criticism we get is,

00:06:21.176 --> 00:06:22.069
"This is not a silver bullet."

00:06:22.069 --> 00:06:24.352
It's like, "I agree!"

00:06:27.167 --> 00:06:29.484
Charlie: What I mean
by that is that there's

00:06:29.484 --> 00:06:31.864
no easy way here, you're
just helping people

00:06:31.864 --> 00:06:32.703
learn better.

00:06:32.703 --> 00:06:33.785
Sal: Right.

00:06:33.785 --> 00:06:35.672
Charlie: Or helping them learn themselves,

00:06:35.672 --> 00:06:36.953
teach themselves to learn.

00:06:36.953 --> 00:06:38.448
Sal: That's the key and
that's what we always

00:06:38.448 --> 00:06:42.028
want to point out is that for us, for me,

00:06:42.028 --> 00:06:43.965
to really educate someone doesn't mean

00:06:43.965 --> 00:06:46.268
to try to pour information
into their brain

00:06:46.268 --> 00:06:48.241
and hope that they can regurgitate it out,

00:06:48.241 --> 00:06:50.085
it's to really allow
them, give them the tools

00:06:50.085 --> 00:06:52.076
so that they can take agency
over their own learning.

00:06:52.076 --> 00:06:53.720
We all say that's the real skill.

00:06:53.720 --> 00:06:56.201
If you can factor a
polynomial, that's nice,

00:06:56.201 --> 00:06:57.523
but if you can go out into the workforce

00:06:57.523 --> 00:06:59.035
and some new technology emerges or

00:06:59.035 --> 00:07:00.756
some new issue comes and you can take

00:07:00.756 --> 00:07:02.035
ownership of it and learn it,

00:07:02.035 --> 00:07:03.530
that's what you want people to be at.

00:07:03.530 --> 00:07:06.780
I think what we tapped into,

00:07:06.780 --> 00:07:09.339
initially it was me making
stuff for my cousins,

00:07:09.339 --> 00:07:13.453
is put stuff out there
that respects the learner,

00:07:13.453 --> 00:07:16.451
that's approachable,
that's conversational,

00:07:16.451 --> 00:07:18.621
that really gives people
the thinking behind

00:07:18.621 --> 00:07:21.403
something, not just the formula and you

00:07:21.403 --> 00:07:23.754
let them access it on their own terms.

00:07:23.754 --> 00:07:26.244
There's huge need for that.

00:07:26.244 --> 00:07:28.520
Charlie: Can you monetize this?

00:07:28.520 --> 00:07:31.085
Sal: It's an interesting question.

00:07:31.085 --> 00:07:33.085
We're not-for-profit, so that means

00:07:33.085 --> 00:07:35.369
no one owns Khan Academy,
but still we have to

00:07:35.369 --> 00:07:37.393
sustain ourselves in some way.

00:07:37.393 --> 00:07:38.903
Not-for-profit doesn't mean that you can't

00:07:38.903 --> 00:07:42.595
generate revenue, universities
do that quite well.

00:07:42.595 --> 00:07:46.061
(laughter)

00:07:46.061 --> 00:07:48.100
On top of being not-for-profit,

00:07:48.100 --> 00:07:48.946
we have in our Mission Statement

00:07:48.946 --> 00:07:51.309
a "free world class education
for anyone anywhere"

00:07:51.309 --> 00:07:52.698
so we've kind of limited
ourselves in terms of

00:07:52.698 --> 00:07:53.686
we're not going to charge.

00:07:53.686 --> 00:07:57.081
We're committed to not
charging for the learning part.

00:07:57.081 --> 00:08:00.653
So far, we're philanthropically supported

00:08:00.653 --> 00:08:01.926
and hopefully that can
always make that case,

00:08:01.926 --> 00:08:05.589
it's hard to have a
more scalable social ROI

00:08:05.589 --> 00:08:09.206
return on your investment,
but we are discovering

00:08:09.206 --> 00:08:11.287
that we've inadvertently built a brand.

00:08:11.287 --> 00:08:14.466
With that brand, we are
starting to license the content,

00:08:14.466 --> 00:08:16.432
we're starting to do
some brand partnerships,

00:08:16.432 --> 00:08:17.517
people will start hearing more about that

00:08:17.517 --> 00:08:19.100
in the next couple of
months, that are actually

00:08:19.100 --> 00:08:20.850
helping pay for a significant amount

00:08:20.850 --> 00:08:22.410
of our operating budget.

00:08:22.410 --> 00:08:23.437
Charlie: How about Corporate America

00:08:23.437 --> 00:08:24.857
or Corporate World?

00:08:24.857 --> 00:08:27.437
Sal: I think there's a few companies ...

00:08:27.437 --> 00:08:28.251
Charlie: The training of workforce is a

00:08:28.251 --> 00:08:29.544
crucial ingredient of what you do.

00:08:29.544 --> 00:08:32.100
Sal: Yes, so there's two elements of that.

00:08:32.100 --> 00:08:33.845
One is a lot of corporations feel that

00:08:33.845 --> 00:08:36.050
they're not able to find
the talent that they need

00:08:36.050 --> 00:08:38.147
to fill certain slots.

00:08:38.147 --> 00:08:40.778
So we can either help the world ramp up

00:08:40.778 --> 00:08:42.476
with those skills and then help prove that

00:08:42.476 --> 00:08:44.012
they know those skills
... And then I think

00:08:44.012 --> 00:08:45.447
what you're eluding to is this idea of

00:08:45.447 --> 00:08:47.486
even in corporate training itself,

00:08:47.486 --> 00:08:50.208
this whole self-paced model
makes a lot more sense.

00:08:50.208 --> 00:08:51.091
You're sitting at your desk,

00:08:51.091 --> 00:08:52.046
you want to improve your skills

00:08:52.046 --> 00:08:54.004
in one vertical or another,

00:08:54.004 --> 00:08:55.099
you do it at your own time and pace.

00:08:55.099 --> 00:08:56.492
It is something that we've talked to some

00:08:56.492 --> 00:08:58.124
people about, corporate training.

00:08:58.124 --> 00:09:00.205
A lot of corporations
are starting to realize

00:09:00.205 --> 00:09:02.075
that the best thing they
can do for the customer

00:09:02.075 --> 00:09:04.180
is educate the customers about the domain

00:09:04.180 --> 00:09:05.567
that they're in, so we're starting to

00:09:05.567 --> 00:09:06.293
do stuff there as well.

00:09:06.293 --> 00:09:07.375
Charlie: Why did you call this

00:09:07.375 --> 00:09:08.957
"The One World School House?"

00:09:08.957 --> 00:09:13.683
Sal: This was the working title at first

00:09:13.683 --> 00:09:16.212
and it was the working title because

00:09:16.212 --> 00:09:18.724
I always used to say the irony is a lot of

00:09:18.724 --> 00:09:19.981
what you're talking about is going back

00:09:19.981 --> 00:09:21.550
to the one-room schoolhouse where you have

00:09:21.550 --> 00:09:24.106
multi-age classrooms,
much more interactive,

00:09:24.106 --> 00:09:27.894
kids taking agency,
responsibility for each other,

00:09:27.894 --> 00:09:29.238
It was like, "Yeah, but
there's some neat things here.

00:09:29.238 --> 00:09:31.929
Any kid in the world can access this.

00:09:31.929 --> 00:09:34.019
We can connect any student in the world."

00:09:34.019 --> 00:09:36.747
There's another element
to it which I talk about.

00:09:36.747 --> 00:09:38.638
I want to take the lecture off the table

00:09:38.638 --> 00:09:39.977
in the classroom so that the classroom

00:09:39.977 --> 00:09:43.215
can engage with the world
in a more relevant way.

00:09:43.215 --> 00:09:45.048
It just sounded kind of a fun,

00:09:45.048 --> 00:09:47.343
instead of one room
schoolhouse, one world.

00:09:47.343 --> 00:09:48.775
Charlie: That goes to the core here and

00:09:48.775 --> 00:09:51.276
I really am interested
in the experience from

00:09:51.276 --> 00:09:52.724
the learner's standpoint.

00:09:52.724 --> 00:09:56.195
Obviously the part of your notion is that

00:09:56.195 --> 00:09:59.861
what we understood, as
the classroom method

00:09:59.861 --> 00:10:01.994
of teaching is not preordained,

00:10:01.994 --> 00:10:03.527
as the best way to teach.

00:10:03.527 --> 00:10:07.398
Sal: Absolutely. If you
go back 400 years ago

00:10:07.398 --> 00:10:09.361
and you saw the few
people who were getting an

00:10:09.361 --> 00:10:13.028
education 400 years ago, it
pretty much private tutor.

00:10:13.028 --> 00:10:14.252
Private tutor was self-paced,

00:10:14.252 --> 00:10:15.507
you master a concept, now let me ...

00:10:15.507 --> 00:10:17.613
Charlie: And mastery's crucial.

00:10:17.613 --> 00:10:19.875
Sal: Mastery's crucial.
If you don't master

00:10:19.875 --> 00:10:22.154
pre-Algebra, it's kind
of nuts to expect you

00:10:22.154 --> 00:10:24.221
to understand Algebra or Trig-,

00:10:24.221 --> 00:10:27.192
but right now you can barely pass Algebra

00:10:27.192 --> 00:10:28.423
and they're going to
stick you in Algebra II

00:10:28.423 --> 00:10:30.298
or they're going to stick you in ...

00:10:30.298 --> 00:10:33.366
What happened is about 200,

00:10:33.366 --> 00:10:36.084
and I go into the history
a bit in the book about,

00:10:36.084 --> 00:10:38.590
a little over 200 years
ago, the Prussians,

00:10:38.590 --> 00:10:42.643
now somewhat part of Germany,
were the first to say,

00:10:42.643 --> 00:10:45.591
"We want a large labor force,"
and it's the beginning of

00:10:45.591 --> 00:10:49.341
the industrial revolution, "Let's
have universal public education."

00:10:49.341 --> 00:10:51.922
It's actually a pretty
profound thing that they did,

00:10:51.922 --> 00:10:54.616
but then say, "How do we do
it in an economical way?"

00:10:54.616 --> 00:10:57.813
They said, "Well, maybe we
batch students together,

00:10:57.813 --> 00:10:58.986
we see how some of these factories are

00:10:58.986 --> 00:11:01.696
starting to get built, how
do they do things at scale?"

00:11:01.696 --> 00:11:02.832
We batch students together,

00:11:02.832 --> 00:11:05.501
moving them in a line as a set pace,

00:11:05.501 --> 00:11:07.634
we try to pour knowledge into their heads,

00:11:07.634 --> 00:11:09.058
some kids it'll stick, some it won't.

00:11:09.058 --> 00:11:14.097
At some point we start
sorting the oranges;

00:11:14.097 --> 00:11:15.332
these kids are going to be juiced

00:11:15.332 --> 00:11:16.619
and these kids are going
to go to whole food.

00:11:16.619 --> 00:11:20.286
(laughter)

00:11:20.578 --> 00:11:23.447
There's an element of
even the old Prussian

00:11:23.447 --> 00:11:26.576
model of some degree of indoctrination.

00:11:26.576 --> 00:11:30.594
And then in the mid-1800s,
the US famously said,

00:11:30.594 --> 00:11:32.447
"We want to have universal
public education."

00:11:32.447 --> 00:11:33.096
It's no coincidence.

00:11:33.096 --> 00:11:34.442
Charlie: So we base it
on the Prussian model?

00:11:34.442 --> 00:11:35.563
Sal: We base it on the Prussian model.

00:11:35.563 --> 00:11:36.782
The Japanese too, it's no coincidence.

00:11:36.782 --> 00:11:38.993
These are the industrial
superpowers that emerged

00:11:38.993 --> 00:11:41.927
because they had a middle
class that was educated.

00:11:41.927 --> 00:11:43.457
They fundamentally
didn't rethink the model.

00:11:43.457 --> 00:11:45.296
I talk about it in the
book, it was actually

00:11:45.296 --> 00:11:46.471
a discovery to me when I was doing some

00:11:46.471 --> 00:11:50.000
of the research ... Why
do they always teach

00:11:50.000 --> 00:11:51.192
Physics in the 12th grade?

00:11:51.192 --> 00:11:52.688
Why do they teach Chemistry
in the 11th grade?

00:11:52.688 --> 00:11:54.835
Where did this come from?

00:11:54.835 --> 00:11:57.064
It came from literally a group of 10 men

00:11:57.064 --> 00:12:00.773
about 120 years ago,
before the internet or DNA

00:12:00.773 --> 00:12:02.504
or anything, that said people should learn

00:12:02.504 --> 00:12:04.001
Geometry in the 10th grade,

00:12:04.001 --> 00:12:07.307
people should have three years of English,

00:12:07.307 --> 00:12:09.270
and it hasn't changed.

00:12:09.270 --> 00:12:11.344
It's pretty much frozen there.

00:12:11.344 --> 00:12:13.913
What we're saying is a lot
of the ideas aren't new.

00:12:13.913 --> 00:12:14.911
Let's master a concept,

00:12:14.911 --> 00:12:17.079
let's personalize the
instruction to the student,

00:12:17.079 --> 00:12:18.748
this is what would have
been the gold standard

00:12:18.748 --> 00:12:20.761
300 years ago and even 50 years ago.

00:12:20.761 --> 00:12:22.036
If you said, "What's the best?"

00:12:22.036 --> 00:12:23.596
"Well, personalized instruction."

00:12:23.596 --> 00:12:25.218
Now could you do that for every student?

00:12:25.218 --> 00:12:27.961
No, it's very expensive. You'd have to

00:12:27.961 --> 00:12:29.983
hire a teacher for every student.

00:12:29.983 --> 00:12:31.755
What's interesting
about technology is that

00:12:31.755 --> 00:12:34.003
now we can go through the
same thought experiment

00:12:34.003 --> 00:12:36.011
and say maybe we can do personalized

00:12:36.011 --> 00:12:39.005
instruction for every
student if we rethink

00:12:39.005 --> 00:12:41.172
the role of the teacher,
if we move them up

00:12:41.172 --> 00:12:42.756
the value chain instead of them just being

00:12:42.756 --> 00:12:45.101
a lecturer, we let them see data where

00:12:45.101 --> 00:12:46.535
every student is, every student is going

00:12:46.535 --> 00:12:48.219
at their own pace mastering concepts.

00:12:48.219 --> 00:12:49.902
We leverage the fact that the students

00:12:49.902 --> 00:12:51.434
can teach each other,
this is kind of where

00:12:51.434 --> 00:12:53.053
the one-room schoolhouse comes in.

00:12:53.053 --> 00:12:54.794
That's another mid-level skill that

00:12:54.794 --> 00:12:56.165
I think is lost today.

00:12:56.165 --> 00:12:57.836
It nice to be able to factor a polynomial,

00:12:57.836 --> 00:12:59.083
but the ability to take leadership

00:12:59.083 --> 00:13:01.571
and the ability to
actually manage your peers,

00:13:01.571 --> 00:13:03.746
if you're a 16-year-old,
you're now leading

00:13:03.746 --> 00:13:06.522
some 12-year-olds, you're
teaching them things.

00:13:06.522 --> 00:13:09.218
Can we start to leverage in that way?

00:13:09.218 --> 00:13:10.562
Everything we're writing
here is like, yeah,

00:13:10.562 --> 00:13:12.180
I think we can, and not only can we,

00:13:12.180 --> 00:13:14.226
we're doing it, we're seeing it.

00:13:14.226 --> 00:13:15.977
Khan Academy is a part
of it, but we're able

00:13:15.977 --> 00:13:17.477
to work with schools today that are

00:13:17.477 --> 00:13:18.696
actually experimenting here.

00:13:18.696 --> 00:13:20.533
Charlie: You also say that face time

00:13:20.533 --> 00:13:22.898
should be separate, it's a separate thing

00:13:22.898 --> 00:13:24.671
from mastery of concepts.

00:13:24.671 --> 00:13:28.170
Sal: Right now face time and seat time,

00:13:28.170 --> 00:13:29.555
whatever you want to call it,

00:13:29.555 --> 00:13:31.938
it's there at the university level,

00:13:31.938 --> 00:13:33.721
so the point that your units are called,

00:13:33.721 --> 00:13:36.143
they're literally seat time
units, three credit hours,

00:13:36.143 --> 00:13:39.895
six credit hours is how many
hours you sat in a chair.

00:13:39.895 --> 00:13:41.560
What we're saying is, "Why don't you go to

00:13:41.560 --> 00:13:43.891
a competency model where it's not how long

00:13:43.891 --> 00:13:46.056
you sat in the chair, but did you learn

00:13:46.056 --> 00:13:47.979
the material at a level of mastery

00:13:47.979 --> 00:13:50.314
whether it took you five days to do it

00:13:50.314 --> 00:13:52.227
or five years to do it, that's irrelevant,

00:13:52.227 --> 00:13:54.172
you got to the level."

00:13:54.172 --> 00:13:55.787
The other is when you get human beings

00:13:55.787 --> 00:13:58.040
together in a room, a lot of people say,

00:13:58.040 --> 00:14:01.460
"This video lecture stuff, I enjoy it,

00:14:01.460 --> 00:14:03.624
but I love my college lectures where

00:14:03.624 --> 00:14:04.914
I could ask a question."

00:14:04.914 --> 00:14:06.368
I'm like, "Hey, that's exactly the point.

00:14:06.368 --> 00:14:08.376
Instead of questions being 5% of the time,

00:14:08.376 --> 00:14:10.034
it should be 100% of the time.

00:14:10.034 --> 00:14:11.871
There should be none of the students just

00:14:11.871 --> 00:14:15.094
sitting passive and whether
you have 10 students

00:14:15.094 --> 00:14:16.289
in the room, 20 students in the room

00:14:16.289 --> 00:14:17.703
or 2,000 students in the room,

00:14:17.703 --> 00:14:18.870
if you're having a passive lecture,

00:14:18.870 --> 00:14:19.624
it doesn't matter.

00:14:19.624 --> 00:14:20.955
There's no interactivity.

00:14:20.955 --> 00:14:22.663
We've all sat in a college lecture,

00:14:22.663 --> 00:14:24.596
even in high school and
we're all in the room

00:14:24.596 --> 00:14:26.710
together, but we're not
able to talk to each other.

00:14:26.710 --> 00:14:28.455
It's actually incredibly dehumanizing that

00:14:28.455 --> 00:14:30.934
you're getting no interactivity.

00:14:30.934 --> 00:14:33.001
What we're saying is
a lot of your exposure

00:14:33.001 --> 00:14:35.274
to the concepts, and once again,

00:14:35.274 --> 00:14:37.167
humanities have been doing
this for a long time,

00:14:37.167 --> 00:14:38.173
"Go read the chapter and we're going to

00:14:38.173 --> 00:14:39.600
discuss it when we come to class.

00:14:39.600 --> 00:14:40.730
We're going to have an interactive thing."

00:14:40.730 --> 00:14:43.772
Charlie: What's the
difference or why students

00:14:43.772 --> 00:14:46.921
feel more passionate about their sports

00:14:46.921 --> 00:14:49.684
coaches than they do
about their Math teachers?

00:14:49.684 --> 00:14:52.478
Sal: Yes, this is something
that I feel strong ...

00:14:52.478 --> 00:14:55.250
I saw it in high school.

00:14:55.250 --> 00:14:57.355
You're in 10th grade Algebra class,

00:14:57.355 --> 00:15:00.061
the teacher asks the
students to do six problems,

00:15:00.061 --> 00:15:02.729
"Oh my God," they're
groaning and they're like,

00:15:02.729 --> 00:15:05.139
"He's the meanest guy
on the planet," and then

00:15:05.139 --> 00:15:07.393
three hours later, we're
at wrestling practice

00:15:07.393 --> 00:15:10.269
and the teacher says, "I want you to do

00:15:10.269 --> 00:15:13.055
50 pushups followed by
running three miles,

00:15:13.055 --> 00:15:15.273
followed by another 50
pushups," and they're like,

00:15:15.273 --> 00:15:17.144
"Yes Sir! Yes Sir! Push me harder!

00:15:17.144 --> 00:15:18.885
I wanna collapse!" Literally, sometimes

00:15:18.885 --> 00:15:21.409
people would collapse they're
willing to work so hard.

00:15:21.409 --> 00:15:22.210
Charlie: What's the difference?

00:15:22.210 --> 00:15:23.514
Sal: The difference is that they feel that

00:15:23.514 --> 00:15:25.091
the coach is on their side, that the coach

00:15:25.091 --> 00:15:27.639
is preparing them for battle.

00:15:27.639 --> 00:15:28.721
Charlie: It's in their
interest to do what he says.

00:15:28.721 --> 00:15:30.644
Sal: It's in their interest.
They're training me.

00:15:30.644 --> 00:15:31.976
While the unfortunate
thing is that even though

00:15:31.976 --> 00:15:34.581
the Math teacher cares
just as much or more

00:15:34.581 --> 00:15:37.147
about the student, the
Math teacher's viewed

00:15:37.147 --> 00:15:39.039
as an adversary, "This is the person who's

00:15:39.039 --> 00:15:40.876
going to keep me from passing. This is the

00:15:40.876 --> 00:15:41.875
person that's trying
flunk ... ," even though

00:15:41.875 --> 00:15:44.332
that's not what the
motivations of the teacher are.

00:15:44.332 --> 00:15:47.428
What we're advocating, what we're seeing

00:15:47.428 --> 00:15:49.235
is working well and the teachers we've

00:15:49.235 --> 00:15:50.749
worked with really love it is,

00:15:50.749 --> 00:15:53.837
become that coach and
you don't have to become

00:15:53.837 --> 00:15:57.292
both the assessor and the
lecturer and the coach,

00:15:57.292 --> 00:15:59.124
be that coach figure, be that mentor.

00:15:59.124 --> 00:16:01.419
You'll form a deeper
connection with the students,

00:16:01.419 --> 00:16:04.087
and you're preparing them
for an outside world.

00:16:04.087 --> 00:16:06.417
It's a very subtle but
powerful mindset change.

00:16:06.417 --> 00:16:07.832
Charlie: You have pathway to excellence.

00:16:07.832 --> 00:16:12.806
Sal: Exactly. I had a
dinner, I happened to be

00:16:12.806 --> 00:16:15.171
sitting next to Wendy
Kopp, Teach for America,

00:16:15.171 --> 00:16:17.640
and we just randomly
started talking about,

00:16:17.640 --> 00:16:19.532
"What do you notice amongst
the Teach for America

00:16:19.532 --> 00:16:22.448
teachers that are really
able to move the dial?"

00:16:22.448 --> 00:16:24.138
She says, "It's actually
surprising, most people

00:16:24.138 --> 00:16:25.665
think it would be about content delivery;

00:16:25.665 --> 00:16:27.043
who can give the best
lecture, who could ... "

00:16:27.043 --> 00:16:28.952
Charlie: Who has magic as a teacher?

00:16:28.952 --> 00:16:31.779
Sal: Yeah, because movies try to ...

00:16:31.779 --> 00:16:33.609
And they do have magic,
but it's a different

00:16:33.609 --> 00:16:34.548
type of magic."

00:16:34.548 --> 00:16:37.274
It's the teachers who can change the

00:16:37.274 --> 00:16:40.024
students' mindsets, who
can be that older brother

00:16:40.024 --> 00:16:42.289
or father or that mother figure and say,

00:16:42.289 --> 00:16:44.437
"Look, this is a do or
die situation and if

00:16:44.437 --> 00:16:46.803
you want to be able to
survive in this world,

00:16:46.803 --> 00:16:49.129
I'm here for you, but it's
your decision to make."

00:16:49.129 --> 00:16:51.360
The same type of psychology
that a coach does.

00:16:51.360 --> 00:16:53.774
Those are the ones, once
you get the student,

00:16:53.774 --> 00:16:55.077
once it clicks in their brain,

00:16:55.077 --> 00:16:55.942
"Wait, I have to take ownership here."

00:16:55.942 --> 00:16:57.548
Charlie: On a football team
you got to learn the plays.

00:16:57.548 --> 00:17:00.298
Sal: Exactly, and you have to
take ownership for yourself.

00:17:00.298 --> 00:17:03.185
"It's not me, it's you. You're
going to make it or you're not

00:17:03.185 --> 00:17:04.793
and I'm just here to help
you." That changes the ...

00:17:04.793 --> 00:17:05.587
Charlie: "I can't play the game for you,

00:17:05.587 --> 00:17:06.382
you have to play it yourself."

00:17:06.382 --> 00:17:07.987
Sal: Exactly.

00:17:07.987 --> 00:17:10.264
Charlie: So when you look
at the next five years,

00:17:10.264 --> 00:17:13.090
where might I see Khan
Academy in five years?

00:17:13.090 --> 00:17:15.367
I mean, is it simply a multiplier effect

00:17:15.367 --> 00:17:17.407
of how many kids you can reach?

00:17:17.407 --> 00:17:19.731
Sal: It's definitely
that, so in five years

00:17:19.731 --> 00:17:22.025
I hope we're reaching
50, who knows what might

00:17:22.025 --> 00:17:24.202
happen with internationalization.

00:17:24.202 --> 00:17:26.192
I hope that you see,
especially even in places

00:17:26.192 --> 00:17:27.805
where they don't have access, although I

00:17:27.805 --> 00:17:29.088
think the access issue is going to get

00:17:29.088 --> 00:17:29.979
solved to a large degree in the next

00:17:29.979 --> 00:17:33.802
five years with cheaper
tablets and more internet ...

00:17:33.802 --> 00:17:34.843
Charlie: Throughout education?

00:17:34.843 --> 00:17:37.689
Sal: Throughout education,
but even outside

00:17:37.689 --> 00:17:39.990
of formal education systems, NGOs are

00:17:39.990 --> 00:17:42.927
going to be able to give tablets to kids.

00:17:42.927 --> 00:17:47.094
I think it'll be some of
the ideas in the book that

00:17:47.094 --> 00:17:50.028
right now like, "No more
lectures in the classrooms?"

00:17:50.028 --> 00:17:51.877
I think they're going to
start being maintstream.

00:17:51.877 --> 00:17:52.679
I think you're going to start seeing

00:17:52.679 --> 00:17:54.593
top institutions realize
that it's in their

00:17:54.593 --> 00:17:57.077
best interest to not define themselves by,

00:17:57.077 --> 00:17:59.097
"I gave a good lecture that's passive,"

00:17:59.097 --> 00:18:01.486
but what's the formal experience that

00:18:01.486 --> 00:18:03.175
I do on my campus?"

00:18:03.175 --> 00:18:04.762
I think when you do
that, when people realize

00:18:04.762 --> 00:18:05.948
that it's not an either or,

00:18:05.948 --> 00:18:07.977
that these are tools
that will help students

00:18:07.977 --> 00:18:09.646
take ownership, then it frees up

00:18:09.646 --> 00:18:11.813
the physical environment to go deeper.

00:18:11.813 --> 00:18:14.259
I think that'll be a
mainstream thing in five years.

00:18:14.259 --> 00:18:15.053
Charlie: Where are we in terms of

00:18:15.053 --> 00:18:18.064
online education in the evolution,

00:18:18.064 --> 00:18:19.589
because it didn't deliver what many

00:18:19.589 --> 00:18:21.343
people thought it would once they

00:18:21.343 --> 00:18:23.931
understood that it could be a tool?

00:18:23.931 --> 00:18:26.432
Sal: Yes, you had a first wave in the late

00:18:26.432 --> 00:18:29.229
'90s, early 2000s, it was kind
of obvious. The internet's

00:18:29.229 --> 00:18:31.513
about disseminating
information ...hey, education.

00:18:31.513 --> 00:18:32.579
Charlie: It came along
when the development

00:18:32.579 --> 00:18:33.863
of the PC, I assume?

00:18:33.863 --> 00:18:36.440
Sal: Steve Jobs famously
originally thought

00:18:36.440 --> 00:18:39.021
that the personal computer was going to be

00:18:39.021 --> 00:18:40.379
the treadmill for the brain.

00:18:40.379 --> 00:18:41.774
He thought that was the killer app for

00:18:41.774 --> 00:18:44.038
the computer; it ended up
being for other things,

00:18:44.038 --> 00:18:46.041
and obviously it helped
people learn as well,

00:18:46.041 --> 00:18:48.687
but it didn't really hit
the nail on the head there.

00:18:48.687 --> 00:18:50.442
Then with the internet, even pre-computer,

00:18:50.442 --> 00:18:51.723
the radio people thought was going to be

00:18:51.723 --> 00:18:53.049
the killer app for education.

00:18:53.049 --> 00:18:56.075
They thought TV, VCR, these are all ...

00:18:56.075 --> 00:19:00.264
TV's here, it's On Demand now. (laughter)

00:19:00.264 --> 00:19:02.149
I think what happened in maybe about

00:19:02.149 --> 00:19:04.606
five, six years ago,
you can't underestimate

00:19:04.606 --> 00:19:06.775
YouTube's power here where it really

00:19:06.775 --> 00:19:09.267
lowered the cost of streaming video,

00:19:09.267 --> 00:19:10.893
producing and streaming
video close to zero

00:19:10.893 --> 00:19:12.115
to the point that a guy in his closet

00:19:12.115 --> 00:19:13.730
could start making it
for his cousins and ...

00:19:13.730 --> 00:19:14.399
Charlie: That's you ...

00:19:14.399 --> 00:19:18.018
Sal: That was me, and
start getting traction.

00:19:18.018 --> 00:19:20.945
I think that helped
kind of show people that

00:19:20.945 --> 00:19:22.426
there's a demand here and not just for the

00:19:22.426 --> 00:19:24.235
videos, but for the whole interactive

00:19:24.235 --> 00:19:27.048
immersive experience, so this past year

00:19:27.048 --> 00:19:29.352
you've had these moocs emerge,

00:19:29.352 --> 00:19:31.150
these massively openly online courses,

00:19:31.150 --> 00:19:33.761
Harvard, MIT, edX, there's a group

00:19:33.761 --> 00:19:35.359
from Stanford, other folks who have been

00:19:35.359 --> 00:19:37.638
doing it, and what really seems ...

00:19:37.638 --> 00:19:38.897
Charlie: For credit?

00:19:38.897 --> 00:19:40.098
Sal: Right now, for the most part,

00:19:40.098 --> 00:19:41.320
they're issuing certificates, although

00:19:41.320 --> 00:19:42.837
they are starting to partner with a few

00:19:42.837 --> 00:19:44.841
institutions for credit as well.

00:19:44.841 --> 00:19:47.176
So it's really different this time.

00:19:47.176 --> 00:19:49.904
It looks like all of the players,

00:19:49.904 --> 00:19:51.349
including us, are looking at how do we

00:19:51.349 --> 00:19:53.944
systemically become
important to the system?

00:19:54.544 --> 00:19:55.726
With a blank slate ...

00:19:55.726 --> 00:19:57.154
What is the whole point of education?

00:19:57.154 --> 00:19:58.818
What is the whole point of a credential?

00:19:58.818 --> 00:20:01.087
How do we do that in
the best possible way?

00:20:01.087 --> 00:20:04.681
Either outside of the system
or in partnership with it.

00:20:04.681 --> 00:20:06.148
Charlie: Thank you. Great to see you.

00:20:06.148 --> 00:20:07.316
Sal: It's great to be here.

00:20:07.316 --> 00:20:09.427
Charlie: The One World
Schoolhouse Education

00:20:09.427 --> 00:20:14.735
Reimagined, Salman Khan, Khan Academy.

00:20:14.735 --> 00:20:15.816
Thank you again.

00:20:15.816 --> 00:20:16.813
Thank you for joining us.

00:20:16.813 --> 00:20:19.000
See you next time.