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By John Borland
Posted on ZDNet News: May 2, 2005 11:37:00 PM

SEATTLE--Six years ago, Microsoft CEO Steve Ballmer caused a mild panic in the stock market by telling a group of business writers that, in his blunt opinion, share prices were wildly overvalued.

Speaking Monday to the same group of journalists here, Chairman Bill Gates avoided any such immediately inflammatory words. Instead, he prefaced a quick tour through technology trends with a warning that the United States is in grave danger of losing its economic advantages to fast-growing nations like China, unless the country restores its lead in education and other policies supporting growth.

"If you look at the trend 10 years ago, the U.S. and China were not that different in terms of the number of engineers graduated," Gates said. "Now we have one-quarter the number of engineers, and the trend is continuing, with the U.S. number going down, and China going up quite a bit...We need to improve our own game, to make sure own slice of the pie stays very large."

Gates is among a handful of technology executives who have issued periodic warnings that the United States is in danger of losing its mantle as high-tech center of the world as the skills of other countries catch up or even surpass those of American workers.

Cisco Systems and Intel executives also have cast recent spotlights on the need to improve schools, and particularly math and science education, in order to remain competitive.

In his speech to the Society of American Business Editors & Writers on Monday, Gates noted that post-Sept. 11, 2001, rules have made it harder for foreign students to come to the United States, and have resulted in as much as a 30 percent drop in enrollment from some areas--another factor he said would ultimately hurt U.S. competitiveness.

He has previously called for an increase in the number of foreign citizens who are allowed into the country to work under so-called H-1B visas.

Alongside the warnings, Gates gave business writers a short list of technologies he thought would fundamentally change computing--and the broader culture--at least as much as the first stirrings of the mainstream Internet changed life during the boom years.

Falling fiber-optics prices, the ability of any companies' software to talk to any other's through XML or Web services interoperability standards, the next generation of 64-bit computing, and improvements in computing security all will have substantial effects on the way people interact with technologies, he said.

More visible to average computer users, the advent of high-definition screens and applications, the widespread use of powerful portable computing devices of all kinds, and changes in personal communications toward an instant messaging-like model will drive considerable change in the coming years, he predicted.

As to the writers' business itself, the technology industry is not far from developing a portable reading device that will become popular, replacing the use of paper magazines and newspapers for many people, he said. That will in itself drive a shift in advertising and other media business models.

"We have no crystal ball as to how soon that will happen, but every advance in technology is moving things in that direction," Gates said.

He also touted the upcoming unveiling of the company's next-generation Xbox video game machine scheduled for later this month, and the Longhorn operating system to be released next year.

Asked about blogging, he said he had been experimenting with keeping one, but hadn't written in it often enough to let it go live on the Internet.

The chairman said Microsoft is more sophisticated from a corporate perspective than it has been in the past. He said he regretted ever having begun issuing stock options to employees, and that today's policy of issuing stock grants instead is better.

He danced around the topic of stock valuation.

"I think any statement about stock prices is always suspect," Gates said. "I would say there's as much overvaluation as there is undervaluation."

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  • Most Recent of 90 Talkback(s)
Gates the Slimemaster spews more vomit
There is something wrong alright and it is not in the schools. It is with US corporate structure which relies too much on the executives to police themselves. You only have to look at the past immoral... (Read the rest)
Posted by: ab@... Posted on: 05/04/05 You are currently: a Guest | | Terms of Use
Spicoli: Get LOST Uncle Gates!  Jeff Spicoli | 05/02/05
Billy, You want more US engineers?  wizard_of_oz | 05/02/05
We need to compete world wide. Doesn't do any good to say they are bad.  DonnieBoy | 05/02/05
Billy: we need to get our inovation in order.  DonnieBoy | 05/02/05
Gates: Get U.S schools in order  Loverock Davidson | 05/02/05
Agree with Gates  Prognosticator | 05/02/05
He is right...  johnnyu | 05/02/05
Agree with many of your points..  Prognosticator | 05/03/05
Agree with Gates???  nucrash | 05/03/05
Oh Please..  Patrick Jones | 05/03/05
Now, let me get this straight.  Judas I. | 05/03/05
Agreed.  Anton Philidor | 05/03/05
Super idea, Anton.  Judas I. | 05/03/05
A better idea  nucrash | 05/03/05
As a ... person ... on these forums...  Anton Philidor | 05/03/05
Obviously we all are  nucrash | 05/03/05
Hey! nucrash!  Judas I. | 05/03/05
If you can bring the metric system...  Anton Philidor | 05/03/05
You actually got me to chuckle!  Linux User 147560 | 05/03/05
Okay, I'll agree to ...  Judas I. | 05/03/05
I started on an H1B  MikeZD | 05/02/05
Message has been deleted.  Xunil_Sierutuf | 05/03/05
I notice you don't say where you are from  Taz_z | 05/03/05
Oh, really?  Judas I. | 05/03/05
Hostility to individuals is counterproductive.  Anton Philidor | 05/03/05
If an individual enters into a discussion ...  Judas I. | 05/03/05
Relevant responses, though.  Anton Philidor | 05/03/05
I don't mind complaining, per se.  Judas I. | 05/03/05
Sure it worked for me...  MikeZD | 05/03/05
Hold up a minute!!!!! We have a problem, here is a deterant.  nucrash | 05/03/05
Bwahahahaha!!! Awesome one dude!  Jeff Spicoli | 05/03/05
I know that was a harsh example, but....  nucrash | 05/03/05
Liars..  Patrick Jones | 05/03/05
Congatulations.  nucrash | 05/03/05
finally something actually useful done with the internet  Jeff Spicoli | 05/03/05
I would plug that school if I were you  nucrash | 05/03/05
Education  zclayton2 | 05/03/05
So True, So True  CathrynO | 05/03/05
Education is market driven  Prime Detailer | 05/03/05
Bill Gates created the problem he complains about.  thetruth_z | 05/03/05
BWahahaha!! YUS!!!  Jeff Spicoli | 05/03/05
With all the 'offshoring', wtf will...  MepisLINUXuser | 05/03/05
Bono also support Bush too!  Jeff Spicoli | 05/03/05
Thanks for the info Jeff, now...  MepisLINUXuser | 05/03/05
I agree..their latest stuff just plain sucks  Jeff Spicoli | 05/03/05
this is a story about education  zeusfuse | 05/03/05
Oh, I don't know, ...  Judas I. | 05/03/05
Education is not the problem  Prime Detailer | 05/03/05
Because we see the "reality"...  Patrick Jones | 05/03/05
Apparently you didn't read the second page.  nucrash | 05/03/05
This is not about Education...  MepisLINUXuser | 05/03/05
Message has been deleted.  MepisLINUXuser | 05/03/05
I knew that was coming, heh heh. (nt)  MepisLINUXuser | 05/03/05
The Real Message  osreinstall | 05/03/05
Bill Gates....Get Your Operating System In Order  itanalyst | 05/03/05
A college drop-out  Roger Ramjet | 05/03/05
Hah hah hah, that's a knee slapper! (nt)  MepisLINUXuser | 05/03/05
Good one!  Patrick Jones | 05/03/05
Drop out of school, make billions; get degree, get job outsourced  Jeff Spicoli | 05/03/05
I thought about that the other day..  Patrick Jones | 05/03/05
Unfortunately, guys, ...  Judas I. | 05/03/05
US Schools MUST Stop PC Brainwashing.  RobertoSalazar | 05/03/05
Take your  Linux User 147560 | 05/03/05
A mere pittance of Bill's fortune...  MepisLINUXuser | 05/03/05
Ah yes, money  Linux User 147560 | 05/03/05
Absolutely...I agree...  MepisLINUXuser | 05/03/05
Somthing does happen in the classroom, too.  Anton Philidor | 05/03/05
Seems to work  Linux User 147560 | 05/03/05
I purposely said nothing...  Anton Philidor | 05/03/05
The biotry of low expectations meets  MyLord | 05/03/05
NCLB  Linux User 147560 | 05/03/05
U R Mean  SC-man | 05/03/05
ROFLMAO!  Linux User 147560 | 05/03/05
We were talking about Bill Gates not Bill O'Reilly! - NT  osreinstall | 05/03/05
How many college dropouts has Microsoft hired?  MyLord | 05/03/05
I can see his point  Chad_z | 05/03/05
Don't forget to get the new Xbox 2.0  nucrash | 05/03/05
I am glad somebody else...  MepisLINUXuser | 05/03/05
Gates spoke, automatically others said opposite  FilledOut | 05/03/05
Uh huh, and if the Devil speaks ...  Judas I. | 05/03/05
Ms windows pervasiveness the main reason  michael-t | 05/03/05
Dude..  Jeff Spicoli | 05/03/05
Get U.S. corporations in order  marmar_z | 05/03/05
PC, moral right killing education  exeter_z | 05/03/05
The problems are too numerous to mention...  jmills@... | 05/03/05
More on what I mean...  jmills@... | 05/03/05
Said by a 'man' who'd rather outsource than educate his own.  HypnoToad | 05/04/05
Greed dictates trends and...  MepisLINUXuser | 05/04/05
This is all due to outsourcing...  phillip.ruffin | 05/04/05
Gates the Slimemaster spews more vomit  ab@... | 05/04/05

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