Commonwealth Club and Series Context:

The meeting is hosted by the Commonwealth Club of California as part of the Travers Series on Ethics. The Commonwealth Club is a public affairs forum.

Introduction of Speaker:

John Wood, the founder and executive chairman of Room to Read, introduces Bill Gates Sr., the co-chair of the Bill and Melinda Gates Foundation. The talk also aims to discuss Gates Sr.’s book, “Showing Up for Life”.

Personal Background:

Bill Gates Sr. was born in Bremerton, Washington, and is the third in his family to bear the name William Henry Gates. He was an Eagle Scout and served in the United States Army during World War II.

Education and Career:

After the war, Gates Sr. attended the University of Washington under the G.I. Bill. He earned a B.A. in 1949 and a law degree in 1950. He co-founded a law firm and practiced law until his retirement in 1998.

Board Memberships and Philanthropy:

Gates Sr. served on the board of Planned Parenthood and is a co-chair of the Bill and Melinda Gates Foundation. He has also served as a director for Costco.

Publications:

He co-authored the book “Wealth and Our Commonwealth, Why America Should Tax Accumulated Fortunes,” which discusses the policies promoted by the estate tax.

Personal Life:

Gates Sr. was married to Mary Maxwell Gates, who passed away in 1994, and later married Mimi Gardner Gates, the director of the Seattle Art Museum. He has three children: Christy Ann, Bill, and Libby.

Summary:

The introduction sets the stage for a deeper discussion with Gates Sr., touching on his personal background, professional history, and philanthropic efforts. The varied aspects of his life promise a rich conversation to follow.

Identity Transformation:

Bill Gates Sr. discusses the evolution of his identity, especially after the rise of his son, Bill Gates. Initially known as a prominent lawyer and active member of the Seattle community, his identity shifted significantly after his son’s success with Microsoft. He amusingly notes that he became “Bill Gates Sr.” to distinguish himself from his son, highlighting how his identity got a new moniker— “Senior”—within the foundation they both are a part of.

Advice on Aging Well:

The topic moves to aging gracefully, and Bill Gates Sr., 83 years old, is described as someone who seems to be managing it well. When asked for advice, he humorously mentions that having a billionaire son helps but quickly turns serious, stating that what keeps him energized is being actively involved in meaningful work. He values his work at the foundation more than leisure time, but does not generalize this as advice for everyone.

Work and Fulfillment:

He elaborates that his sense of purpose and engagement comes from the work he does at the foundation. The organization’s varied portfolio and the challenges it presents keep him invested and make it easier for him to be productive and focused. He stresses that the fulfilling nature of his work is highly personal and not necessarily a one-size-fits-all recommendation for aging well.

Managing Public Expectations:

Addressing how the foundation handles unsolicited proposals and requests, Gates Sr. admits that the volume has decreased since they defined their focus areas. He recalls the early, naive days when they had no particular plans and received a plethora of proposals. Now, people generally understand what the foundation does and does not do, although they still receive daily letters from individuals asking for personal financial help, which he finds sad.

Foundation’s Growth:

Gates Sr. concludes by emphasizing the phenomenal growth of their foundation. From its humble beginnings with a single halftime employee, it has expanded to employ approximately 750 people. While debunking the myth of a “shoebox” start, he agrees that the organization has come a long way in its operational scale and impact.

This conversation provides a multi-faceted look into Bill Gates Sr.’s life, discussing his evolving identity, views on aging, and the responsibilities and experiences he’s garnered through his work at the Bill and Melinda Gates Foundation.

Early Inculcation of Philanthropy:

Bill Gates Sr. discusses how the habit of philanthropy was inculcated in his children from a young age. He mentions that his wife, Mary, would prompt their children to think about how much of their allowance they would give to charitable causes like the Salvation Army during Christmas. Gates emphasizes that such conversations are not uncommon in American households and that both he and his wife grew up in families where community involvement and charitable actions were a part of life.

Generational Continuity:

Gates mentions that the culture of philanthropy was a part of the fabric of his family, something he believes his children would confirm. He suggests that philanthropy “just came naturally” to them due to their upbringing. The conversation also touches upon a family tradition where he takes his grandchildren on a trip when they turn 10 to better understand them and, presumably, to continue these conversations about giving back.

Modern Challenges and Continuity:

When asked if the conversation around philanthropy has changed with his grandchildren, especially given the family’s significant wealth, Gates Sr. states that the core message remains consistent. While acknowledging that the presence of wealth is a fundamental difference, he does not believe that it has altered the family’s values or conversations about philanthropy. He leaves it unspecified how his son, Bill Gates, and daughter-in-law, Melinda, manage these conversations with their children, but notes they face the unique challenge of raising children to be “somewhere in the range of normal human beings” given their extreme wealth.

The dialogue suggests that the Gates family sees philanthropy not as an obligation attached to their wealth but as a value integrated into their lives from an early age. It provides an inside look at how the family’s culture of giving back has been nurtured and sustained across generations.

Challenges of Wealth:

Bill Gates Sr. addresses the challenges of raising children in a family with extreme wealth. While he’s not entirely sure of the specifics, he acknowledges that his son, Bill, and daughter-in-law, Melinda, have plans and disciplines to mitigate the potential negative effects that can come from growing up around immense wealth. He emphasizes that despite these challenges, the fundamental values around philanthropy haven’t changed in the family.

Role of Parental Example:

The speaker suggests that the Gates children are likely influenced by seeing their parents involved in philanthropic endeavors across the globe. From New York high schools to tackling HIV-AIDS in South Africa, these experiences expose the younger generation to the importance of giving back and likely have a significant impact on their worldview.

Libby’s Initiative and Make-A-Wish:

A story about Libby, one of Gates Sr.’s daughters, is recounted as an example of determination and thinking big. Libby was involved in the Make-A-Wish foundation and took it upon herself to fulfill a young patient’s wish to meet Michael Jordan. Despite the daunting task and low optimism, Libby managed to get in touch with someone from Jordan’s office and ultimately arranged a call between the basketball star and the young patient, which turned out to be a highly emotional and rewarding experience for everyone involved.

The transcript offers insights into how the Gates family approaches philanthropy and what measures they take to instill these values in the younger generation. Additionally, it highlights the real-world impact of such values through personal stories, emphasizing the transformative power of acts of kindness and determination.

Value of Family Traditions:

Bill Gates Sr. emphasized the importance of family traditions in shaping personal lives and communities. One such tradition is “Exchange Dinner,” which took place during his family’s annual summer vacations with eight other families. During one evening, a drawing would decide which children would have dinner in another family’s cabin. This tradition aimed not just at mingling but also at understanding how another family operates.

The Concept of Cheerio:

The tradition took place in an old cabin camp called Cheerio for 14 years. Gates Sr. suggests that these summer traditions created an enduring positive impact on all the families involved. The kids who participated still fondly recall and discuss their experiences at Cheerio.

Christmas Pajama Tradition:

Gates Sr. also talked about a Christmas tradition that originated from his wife Mary’s family, where matching pajamas are gifted and worn on Christmas morning. His oldest daughter continues this tradition, indicating its influence across generations.

Parenting Philosophy:

When asked about technology, Gates Sr. revealed that his household limited television but encouraged book reading. The only flexibility around bedtime was if one of the children was engrossed in a good book. This rule reflects his belief in the importance of education and being a dedicated student.

Father’s Day Gift:

Gates Sr. receives an annual gift of a NetJet membership from his son Bill and daughter-in-law Melinda, allowing him to travel conveniently. When asked what he’d like for the upcoming Father’s Day, he wished for a renewal of this gift.

Learning from Mistakes:

Although the audience was eager to learn from his life mistakes, Gates Sr. humorously pointed out that one of his mistakes was getting older, affecting his memory and thus his ability to answer the question.

The conversation presents a nuanced look into family values, traditions, and generational influences, all themes also addressed in Gates Sr.’s book “Showing Up for Life, Thoughts on the Gifts of a Lifetime.”

Background:

Bill Gates Sr. shares his feelings about the time his son, Bill Gates, and daughter-in-law, Melinda Gates, significantly expanded their philanthropic efforts. The decision came as a realization of the lessons he and his wife, Mary, instilled in their children—to dream big and think big.

Early Involvement:

Before the enormous financial commitment was made, Bill Gates Sr. was involved in smaller philanthropic projects addressing global health inequities. The family had been looking at opportunities to make an impact and even had an article from the New York Times prompting them to think, “maybe we can do something about this.”

Consultation and Strategy:

To formalize the efforts, they hired Gordon Perkin, who previously ran a Seattle-based organization called PATH that focused on the technical aspects of global health. Perkin was an informed and sophisticated choice who immediately recognized the plethora of opportunities in the field of global health.

The Turning Point:

While discussing the scope of the foundation’s work, Perkin suggested that a greater financial commitment might be needed to make a significant impact. When Bill Gates Sr. brought this up with his son, he was surprised to learn that Bill and Melinda had already been contemplating this and had decided to invest $24 billion into the foundation.

Impact:

This decision was transformative for the foundation. Over five financial quarters, Bill and Melinda Gates poured $24 billion into the foundation’s corpus, substantially expanding its reach and impact. Bill Gates Sr. emphasizes that this massive investment fundamentally changed the scope and scale of the work they could do.

In summary, the significant financial investment into the Gates Foundation was not just a surprise but a transformative moment for the family, underlined by the early teachings to “think big.” It enabled a strategic and extensive effort to tackle complex issues, mainly global health inequities, and had a monumental impact on the scale of their philanthropic work.

Proud Father Moment:

Bill Gates Sr. expresses his immense pride when discussing his son and daughter-in-law’s significant philanthropic commitments. His feelings align with the ethos of dreaming big, a principle he and his wife instilled in their children.

The Warren Buffett Factor:

The day Warren Buffett announced his decision to donate a considerable part of his wealth was pivotal. It signaled a broader, transformational shift in the approach to philanthropy among billionaires. The commitment wasn’t just from “wacky Northwesterners” in the tech industry, but also included an older, more conservative investor from the Midwest.

Dialogue with Other Billionaires:

One of the foundation’s ongoing efforts involves engaging with other billionaires about potential philanthropic activities. This dialogue happens in meetings where the joy and satisfaction derived from philanthropic activities are discussed, serving as a form of “salesmanship” to encourage more charitable giving.

Global Impact & Future Hopes:

The host and Bill Gates Sr. both express the potential impact if more of the world’s wealthy follow the philanthropic example set by Gates and Buffett. The scale could magnify the positive impact on global issues hundredfold. There’s a shared hope that the efforts to engage other billionaires will be fruitful, leading to a considerable collective impact.

The Importance of NGOs:

The discussion highlights the role of non-governmental organizations (NGOs) like Partners in Health, which benefit from philanthropic funding. There’s a shared sense that the foundation’s work isn’t just impactful on its own but also serves as an inspiration for others, magnifying the overall effect.

In summary, Bill Gates Sr. outlines the ripple effect that can occur when leading billionaires like his son and Warren Buffett set an example in philanthropy. The Gates Foundation actively seeks to involve other wealthy individuals in similar efforts, aiming to amplify the collective impact on global challenges.

John Wood’s Room to Read Initiative:

John Wood, founder of the non-profit organization Room to Read, explains the organization’s mission to provide quality education as a means to escape poverty. He cites his own experience at Microsoft, underlining the role Melinda French Gates played in his career, which enabled him to take risks and start Room to Read. The organization has opened 765 schools in developing nations, accommodating 210,000 children, and has established 7,048 libraries, serving 3.1 million kids across nine countries.

The Education-Poverty Paradox:

Wood describes his pivotal moment during a backpacking trip in Nepal, where he met a teacher with an empty library and learned of the country’s 70% illiteracy rate. The teacher made a poignant remark: “We are too poor to afford education, but until we have education, we’ll always be poor.” This statement encapsulated the Catch-22 of the developing world, where lack of education perpetuates poverty and vice versa.

Bill Gates Sr.’s Vision for the Future:

When asked about his hopes for future generations, Bill Gates Sr. expresses his desire for a world where mankind is organized, has a sense of purpose, and is focused on making progress. He emphasizes the need for humanity to maintain the Earth in a livable state. Gates Sr. acknowledges the complexity of current global issues but remains hopeful, citing how society has overcome significant challenges in the past, such as the threat of war with Russia and civil rights issues.

Challenges and Optimism:

Gates Sr. acknowledges the severity of current global challenges but points to history to illustrate the capability for positive change. He cites the avoidance of war with Russia and progress in civil rights as examples of public will driving significant change. His wish is for this spirit of progress and adaptability to continue for future generations.

Law as a Tool for Justice:

Bill Gates Sr. discusses his view that the law is not just a collection of statutes but a framework that can make the world more just. He believes that the law has the potential to alleviate suffering and bring fairness.

Optimism in Face of Suffering:

Gates Sr. is asked about how he maintains optimism given the world’s suffering. He mentions the tangible positive impacts like vaccinating millions of children as something that keeps him hopeful. He argues that the world is incrementally getting better and cites this as a reason for his positive outlook.

Privilege and Perspective:

The discussion turns to the idea that many people are caught up in trivial problems and fail to see the larger challenges the world faces. Gates Sr. recognizes that what may seem like big problems in one context are relatively insignificant when compared to global challenges like health and education.

Frequent Field Visits:

Regarding the frequency of his visits to the areas where the foundation works, Gates Sr. states that while he personally visits about once a year, his foundation has a robust travel schedule. He highlights that employees in India and soon in Africa help to carry out the foundation’s objectives on the ground.

The Scope of the Foundation:

Gates Sr. discusses the foundation’s departments which include global health, global development, and United States-based efforts. About 80% of their grant-making is focused on the first two departments.

Funding Mechanisms:

When asked about the “5% rule” in foundation giving, Gates Sr. explains that the rule aims to maintain the long-term viability of a foundation’s assets. However, he notes that economic downturns may force changes in this strategy, as has been the case with the University of Washington.

Perpetual vs Time-Limited Philanthropy:

The talk explores different philosophies in philanthropy, specifically whether a foundation should exist in perpetuity or have a predetermined end date. Gates Sr. reveals a divergence of opinion between him and his son, Bill Gates, on this matter. Gates Sr. prefers a perpetual foundation, but his son feels it should have an end date, and this is an ongoing debate in philanthropic circles.

Impact on Education:

Although not elaborated on in the segment, the discussion hints at the foundation’s involvement in education, signaling its breadth of focus beyond health and development.

These points offer a comprehensive view into the philosophy, operations, and dilemmas faced by Bill Gates Sr. in his philanthropic efforts.

Competition in Higher Education:

Bill Gates Sr. argues that the United States has one of the best higher education systems in the world, primarily because of its competitive nature. Competition exists in various dimensions: for students, funding, facilities, and faculty. This has led to a high-quality higher education system that is “as good as it gets” globally.

Shortcomings in K-12 Education:

In contrast, the K-12 public education system in the U.S. is not on par with the higher education system. Gates Sr. attributes this to a lack of quality in teaching and low levels of teacher performance. He suggests that teachers are not sufficiently motivated to improve, which adversely affects the quality of education.

Role of Compensation in Teaching:

Gates Sr. advocates for a compensation system that would motivate teachers to perform better. He argues that a properly designed compensation system could serve as a way to encourage teachers to improve their performance and thus enhance the quality of education.

Low Expectations and the Need for Standards:

Another issue is the low expectations society holds for the K-12 education system. Gates Sr. calls for national standards, particularly in basic subjects like arithmetic and reading, to improve educational outcomes. By setting high expectations and adhering to national standards, the education system could better prepare students for future challenges.

Goal: College Readiness:

Lastly, Gates Sr. states that the ultimate aim should be to prepare students to be college-ready by the time they graduate high school. To achieve this, he emphasizes the need for a comprehensive set of standards that guide educational expectations from the elementary level through high school.

The overarching theme is that competition and standards are key elements that could significantly improve the quality of education in the United States, particularly in K-12 public schools.

High Quality Work or College for All:

Bill Gates Sr. acknowledges that not everyone will or should go to college, but the goal should be to prepare students for either college or high-quality work. He expresses optimism that there are positive movements in the U.S. towards achieving these educational goals.

Case Study: Washington D.C. Schools:

One such positive example he cites is the school system in Washington D.C., which had been considered one of the worst metropolitan school districts. However, a reform-minded mayor and a new school administrator, Michelle Rhee, have turned the system around. Gates Sr. sees this as a model example of what can be achieved with determined leadership.

GI Bill for Modern Veterans:

He supports the idea of introducing a modern-day GI Bill to provide educational opportunities for veterans returning from Iraq and Afghanistan, similar to how he and many others benefited from the original GI Bill after World War II.

Role of Pell Grants:

Gates Sr. mentions Pell Grants as an existing form of federal support for college education. He notes that recent increases in Pell Grants, from $500 to $950, have had a significant impact on making college more accessible for those who are financially disadvantaged.

Addressing Inequality:

Finally, Gates Sr. addresses the challenge of ensuring equal opportunities for children from all backgrounds. He believes that the country is not yet living up to its promise of equal opportunity, particularly for children from poor urban families. He emphasizes that efforts must be made to bridge this gap to fulfill the nation’s promise that all lives are of equal value.

Overall, Gates Sr. discusses several vital components needed for educational reform and the importance of both societal and governmental roles in ensuring that every child has the opportunity for high-quality work or higher education.

Personal Heroes:

Bill Gates Sr. discusses his heroes, mentioning the strong impact some of his teachers had on him as well as public figures like Warren Buffett, whom he appreciates for straightforward reasoning and a good sense of humor. Gates Sr. also mentions admiration for competent and effective leaders, citing the president of a university in Seattle, Mark Emerges, as an example.

Experience with Interviews:

When asked about his experience being interviewed by Charlie Rose, Gates Sr. speaks highly of him, stating that Rose is an accomplished interviewer. Gates Sr. had been interviewed alongside his son by Charlie Rose about a month prior to the current conversation, describing it as a very pleasant event.

Meeting Nelson Mandela:

Gates Sr. describes meeting Nelson Mandela as exhilarating. He was in Africa with Jimmy Carter, and they discussed, among other things, Mandela’s disappointment with South Africa’s handling of the AIDS crisis at that time. He hints that Mandela was uncomfortable with the situation, particularly as the person in charge was someone he felt responsible for.

Handling Rejection:

Responding to a question about whether anyone has ever refused to meet with him or disrespected him in the past five years, Gates Sr. admits that it has happened. He attributes it to ideological differences, stating that he has some very conservative former friends without naming them.

The discussion provides a closer look at Gates Sr.’s world views, personal heroes, and experiences, shedding light on the qualities and individuals he values highly. It also touches on his experiences with high-profile interviews and intriguing personal encounters, offering a snapshot of his life and priorities.

World’s Dichotomies:

Bill Gates Sr. discusses his concern about the divide between the Muslim world and the rest of the world, characterizing it as a “fundamental and gigantic problem.” He highlights the dangers of extremism, especially from individuals willing to harm others due to differing beliefs. Gates Sr. sees this as a significant issue due to the large populations on both sides of the divide.

Notes of Optimism:

The interviewer interjects with optimistic observations, pointing to instances of people in places like the Swat Valley and Iran standing up against oppressive forces. This is framed as a counterpoint to Gates Sr.’s initial pessimism, highlighting that there are both nihilistic and optimistic events occurring globally.

Role of Education:

Gates Sr. identifies public schooling as a critical force for positive change in the world. He believes education exposes children to different viewpoints and helps combat prejudices, which could eventually contribute to resolving global dichotomies. In his view, the system of public education is pivotal for the world’s liberalization, sophistication, and increased reasonableness.

Closing Remarks:

The session ends on a personal note, acknowledging Father’s Day. A quote from Bill Gates Jr. praises his father as being “all the things the other strives to be,” implying deep respect and admiration. The discussion was part of a radio program focused on ethics and hosted by the Commonwealth Club of California.

This segment delves into Gates Sr.’s views on some of the world’s most pressing issues and offers a glimpse of optimism rooted in the transformative power of education. It also ends on a heartwarming note, reinforcing Gates Sr.’s influence not just as a thought leader but also as a father.