Governor Hochul: “So many young people have been taken into a dark space because the tech companies have designed these addictive algorithms to pull them in and hold them captive at a time when they should be out socializing with other people, paying attention in classrooms. So, here's my message to the tech companies: why don't you get out of the courtroom and come into my conference room? We can work this out together.”
Hochul: “I also want to say this to the tech companies: what you're doing is affecting your next generation of workers. If you're a business leader looking at kids in middle school and high school as your future workforce and you realize that they're so addicted that even during the day they can't put down the smartphone and that they're also not developing social interpersonal skills that are so necessary — I mean, it's the creative collisions that happen in the workspace that drive the innovation economy, which we're so proud of in New York. We want to foster that. Not have a workforce that is coming out of teenage years in a state of depression and unable to communicate at a healthy level with other adults because they were denied this because of what your companies are doing.”
Earlier today, Governor Kathy Hochul was a guest on CNBC’s Squawk Box.
AUDIO of the Governor's remarks is available.
A rush transcript of the Governor's remarks is available below:
Rebecca Quick, CNBC: New York Governor Kathy Hochul signing two bills aimed at protecting children and teens online. One aims to make kids’ social media feeds less addictive, the other will curb websites collection of children's personal information. But some of the tech industries are claiming free speech violations. For more on this, we want to welcome Governor Hochul.
Governor, welcome, and thank you for taking steps to actually try and cut back on some of these things. It's been something that Congress has been unable to do over almost two decades of going back and forth on this. What do these laws do?
Governor Hochul: Well, first of all, I'm a former member of Congress and I'm not surprised that Congress is not able to handle this, although this should be their responsibility. There should be a national policy that says, “We prioritize the mental health of our children.” It's that simple. And all the statistics are pointing to a very dire outcome for our children right now. Over the last two decades — last decade in particular — suicide rates among teenagers have gone up 70 percent.
Teenage depression, something that was not a factor when I was growing up for previous generations, it is real. So many young people have been taken into a dark space because the companies have designed these addictive algorithms to pull them in and hold them captive at a time when they should be out socializing with other people, paying attention in classrooms.
So, I am not surprised there's opposition, but here's my message to the tech companies: why don't you get out of the courtroom and come into my conference room? We can work this out together. I think it's much better for your branding to show that you are socially responsible, morally responsible, and care about the outcome and the mental health of our children and your children as well.
Rebecca Quick, CNBC: A group representing these tech companies, NetChoice, is arguing that your law will violate the First Amendment by censoring free speech online. Is this — it sounds like they're gearing up for some fights in the courtroom. What do you know at this point and what do you say back to this argument?
Governor Hochul: Well, litigation is a growth industry in the State of New York. Bring it on. I mean, we're not unaccustomed to this, but we will prevail because we're very careful in our drafting to make sure that freedom of speech is protected. But we're simply saying to these children, “You have the right to socialize with your friends. You can join a club online.” We're not preventing online activity or communication, we're simply saying to these companies, “As part of your marketing tools, you're trying to create a captive audience that'll you'll hold them hostage for the next new chapter of their lives.” We're saying, leave the kids alone, right?
Leave our children alone. Don't bombard them with algorithms — addictive algorithms — that are irresistible to teenagers. Just let them have this space before they're 18 years old to be a little more carefree. Let them select what they want to see and not have you preselect based on monitoring these young people's social engagement.
I mean, think about all the data that's being collected from our kids — not just being used by social media companies to construct algorithms to pull them in — but also monetizing this. You're profiting off your children — my children's — information that's online. I think there's a business model that can be still very successful for these companies, and New York City, New York State — we are a tech capital. Everyone looking for tech jobs last year — we are the number one destination in our nation. We're proud of that. This is not hostile to big tech. We're happy they're in New York. We're happy they're doing what they do — except in this one space where they should also understand — they as parents should understand — is not healthy for this generation of young people.
And the effects are real. This is not hypothetical. This is not just me going around and talking to thousands of young people and hearing their voices, and the young woman who said to me, “You’ve got to save us from ourselves because we're not able to put this down.” And you realize it's not their fault. That's exactly what these companies intend. They don't want you to put down the device. And so that's what we're up against, but we're ready for any challenge.
Joe Kernen, CNBC: It is clear that it's not a happenstance. I'm looking at a lead story in The Journal today, Governor, and Instagram knows exactly how it's working, and with racy content to teenagers — Gee, I wonder if that'll work. So, they start with it, and they watch reels and they start a little bit soft, you know what I mean? And if the person watches it to the very end, then more racy stuff is offered at the end of it, and then God knows what comes in. But they know exactly — I mean — the algorithms are designed to appeal exactly to that motivation. You're going to end up with everybody addicted to porn. And they know full well that that's what they're doing. And, you know, teenagers — I mean, I understand it. That's why racy content is going to work. So, it just seems like a daunting task where to draw these lines and then I don't know where parents come into this either. I mean, you know, you could say these companies are just satisfying the normal urges of maybe teenagers with some of the stuff that happens.
Governor Hochul: I will tell you this: this is all about driving profits. And parents — and there are new legislation — the first in the nation that is taking this step to protect this generation, and I hope every other state follows. Follow what we're doing here in the State of New York, because here's why: we are going to empower parents to be able to turn on the off switch. You can bombard people with algorithms, young people with algorithms, but parents should be empowered to have control over that, not the companies. So, parents will be able to now say, “No, you're not allowed to do this.” We're also saying that parents should be able to have a say whether or not you can send messages and notifications between midnight and six a.m.
Our Children are sleep deprived. I mean, they're walking around like zombies in schools. They're not paying attention. And I also want to say this to the tech companies: what you're doing is happening to your next generation of workers. If you're a business leader looking at kids in middle school and high school as your future workforce, and you realize that they're so addictive that even during the day they can't put down the smartphone — they're not paying attention to their job geometry class, their teachers. And they're also not developing social interpersonal skills that are so necessary. I mean, it's the creative collisions that happen in the workspace that drive the innovation economy, which we're so proud of in New York. We want to foster that.
But let's protect the mental health, not have a workforce that is coming out of teenage years in a state of depression and unable to communicate at a healthy level with other adults because they were denied this because of what your companies are doing. Just stop right now. You can make plenty of other money in other ways. I guarantee it. Very creative people work in these companies, but let's save our children.
Rebecca Quick, CNBC: We have had other people say that this could be something where if other states do copy, you would eventually be pushing federal legislators to get involved with this too. So, hopefully this at least bring some attention to this and does force others to follow along.
While you're here, I want to talk to you about congestion pricing. This is a move that had been anticipated to take place later this month in New York City. Already the infrastructure has been set up for it. You put a halt on this for now because you say it's not the right time when you're trying to get workers back into offices, when you are trying to make sure that people will come back from work and from home. How long does this this shutdown last? Is this something that you see coming back next year?
Governor Hochul: Here's what we're thinking right now, and I'll tell you why this is so important. We cannot be tone deaf to the needs of our workers or our employers. I have talked to so many employers, major employers in New York City, who are concerned right now that things are improving. Our comeback is almost there, but we don't need a setback at this time.
And with remote work, which not even exist back when this was enacted under my predecessor back in 2019, people might say, well, do I really want to spend $3,800 more a year to come into Manhattan? Or will I just see if I can work remotely? That could have a dire effect on our comeback in our economy and all these subsidiary businesses that count on. I mean, Broadway, restaurants, little delicatessens, the shoeshine person – all these are affected by whether or not people come into our city. I want people to come into our city. That's important to me. I want us to continue thriving and putting the pandemic in the rearview mirror.
But right now, $15 for anyone to drive into New York City is too much at this time, so I'm working with our legislators to find an alternative funding source because every single project that is envisioned with the money generated from congestion pricing is an important project. I support them. I have supported congestion pricing but think about the effect of $15 right now.
Even London—
Rebecca Quick, CNBC: You’re preaching to the choir. I agree with you on all of these counts. I think it's a bad idea from the broader economic perspective here and I've heard from a lot of those businesses too. The issue is some people say that this was political, that there were going to be democratic legislators who lost in this election coming up in November and there is this undercurrent that thinks, okay, this is gone for now, but by early next year, it will come back. What do you say to that?
Governor Hochul: I will say right now $15 is not the right price. That does not mean it's gone forever, but let's just be reasonable. Right now, New York City residents are under siege. They have high costs of living everywhere they turn. Water rates just went up. Rent rates are going up. It is a lot for our citizens, and we should not ignore them saying to us as government leaders, we just want to break once in a while. Who's listening to us? I'm listening to them.
Rebecca Quick, CNBC: That's good. And by the way, if you're looking for alternative revenue sources, this was going to raise about $1 billion a year. $700 million is being lost right now every year from people who are jumping the fares at the subways and the buses. 45 percent of bus riders aren't paying their way. There's $700 million you could go after.
Governor Hochul: You're absolutely right. I've said that before. So, there's other funding sources. I want to do the Second Avenue Subway. I want all the improvements that have been promised to New Yorkers based on the bonding off this $1 billion, but we are capable of doing this. I support the MTA; I bailed out the MTA last year. No one can question my commitment to this lifeline that makes New York City so fabulous and so accessible. We love the subway system.
I'm the biggest supporter of the New York City subway system because last year it was going off the fiscal cliff, and I pulled it back with a creative funding strategy. I'm committed to this. I'm committed to the projects, but right now at this time, it is too much for New Yorkers to endure this. I don't want to suppress our recovery, and that's the genesis of the pause. Again, temporary pause, but I'm going to say this again, $15 is too much for New Yorkers right now.
Joe Kernen, CNBC: And people love it when you say, well, we already spent a billion. We need to do it. It's like what? That's what drives people crazy. It's already spent, right? The $1 billion already spent, so we need it.
Governor Hochul: We're in the middle of a $34 billion capital project right now. $34 billion is being spent right now. This would leverage $15 billion more for projects that are important, but there's a lot of activity going on in New York City. We're committed to our subway system. We're also committed to everyday New Yorkers who are struggling.
Joe Kernen, CNBC: Subway hoppers.
Rebecca Quick, CNBC: I did. Governor Hochul, thank you very much for joining us. We appreciate it.
Governor Hochul: Thank you.