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tv   Real Money With Ali Velshi  Al Jazeera  June 8, 2014 7:00pm-7:31pm EDT

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polluted and developed. clive hopes his work will develop it. >> 100 years from now people look at my photographs and say it's common space. i don't see it's special, it's still here. that's what i'd like to hear. >> thank you for watching. >> well the good news is we've recovered all of the jobs we've lost in the recession. i'll tell you why that's little comfort to young people looking for work. the arctic, one of the coolest places right now. and attracting a new generation of writers. i'm ali velshi and this is "real money."
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>> this is "real money." you are the most important part of the show. tell me what's on your mind by tweeting me @ali velshi. back to where it started before the great recession, sort of. let me explain. in may, the u.s. economy created a solid 217,000 net new jobs. that means you take all the jobs that were created, subtract all the ones that were lost and you are left with 217,000. employers have added at least 200,000 jobs every month since february. this is one of the best four-month stretches of job creation in the united states since the late 1990s. and may's job gain puts the total number of people on job payrolls at 138.5 million.
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138 and a half million americans are working in jobs that are not on farms. we separate out farms. now, this is finally above the level that it stood at in january of 2008. before the great recession wiped out 8.7 million jobs over the course of two years. it's taken us more than four years to recover all of those jobs, making this the longest employment recovery on record, or at least since the department of labor started tracking the data in 1939. that part is not good. now, here is another reason we're not breaking out the champaign to celebrate this result. the u.s. population has kept growing for those years. and just to support the labor force entering the market, we
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have to create another 10,000 jobs a in. estimating still at this point after losing and gaining, we're still 6.9 million jobs short of where we need to be. now, i have talked plenty on this show about why the unemployment rate doesn't deserve nearly the attention it gets. because it fails to reflect people who who've given up, loog for work. perhaps for good reason. more significant, the number i like better is the labor force participation rate which the -- this is the percentage of working age people who have jobs, or are looking for work. the percentage of people who could be working who are working. this remained at 62.8%. stuck at the lowest level since the 1970s. the reasons for this are debated and include more baby boomers retiring. but almost everyone agrees this
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also reflects the fact that too many people have given up on finding a josh that they are -- job that they are willing to take. one group that is having a hard go of it is young people between 20 and 24. unemployment rose to 11.1% in may, up half a percentage point from april. many recent college grads are turning to jobs clubs. 44% of recent grads are said to be working either part time or working jobs that don't require a college degree. in other words they are underemployed. duarte jeraldino takes us to one of those places. >> midtown manhattan, 6:00 p.m. instead of going to a club, a group of 81 people are slipping into a job club.
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she's just getting by working as a clerk. >> i feel like i've kind of wasted my years in school. >> she's one of a growing number of mill ennails joining job clubs. members fill een others in -- filling fill each other in on jobs. recent college graduates it's led by volunteer career counselor karen palevski. >> it doesn't matter what you do, and what level you are. >> each meeting has a unique focus. likes intrufning skills or -- interviewing skills or application strategy. networking gaining access to the hidden job market. >> all those unpublished positions that are filled before they go out to the public. >> members are encouraged to share contacts.
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because what doesn't work for one could be the other's golden ticket. according to the department of labor, there are many more of these job clubs. >> these job clubs have explicitted. they are in -- proliferated. >> john fugazi runs an organization called neighbors helping neighbors. he says many young people rely too heavily on the internet and not enough on real world networking. >> if you have a job to fill it's like a currency. you are not going to take a person off the street for that job. >> fugazi says, he encourages more young people to join clubs to help them find work. >> this can't happen unless you come in the door. it's hard to believe. so good, it's probably the best kept secret in america now.
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>> finding a job means not feeling ashamed to tell people you need work. as hannah campbell knows, it's tough. >> it takes a blow to your ego. i'm great, i'm awesome ating everything, or hearing answers back, getting no rejection, doesn't make you feel as wonderful as you pretend to be. >> reminding herself she's not alone. >> putting a lot in and hopefully getting something back. >> several dozen workers are now working. >> duarte jeraldino, al jazeera, new york. >> joining me to discuss why and discussing hardships facing young jobless adults is rory
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o'sullivan. he'rory i'm glad you have such an association, we have the associations,arf and people who try to take care of the interests of older americans but not the same sort of organization for younger americans. >> absolutely. we are seeing unemployment rates for younger individuals, in double digits, ali. united states a big concern. when you are unemployed early in your career it can lead to lower wages and less employment down the road. at young invincibles we're working to reverse that trend. >> ultimately, one of the reasons the younger generation suffers from higher unemployment is because we went through a recession and normal people who
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would have retired and moved on are holding onto the jobs that would have allowed people to move up, or entry-level jobs, that students should be getting into. >> there are a lot fewer opportunities for our generation now. we're often the first fired and then the last hired in a recession. and i think that's why you're seeing young people still struggling despite some of these job numbers gains we saw today. >> rory, here's what i don't get. if you have a four year degree your unemployment is half that of people with a high school diploma. so the bottom line is the one secret of success in america is having an education. >> absolutely. i mean there's no question that the trends over the last several decades is that you need some kind of credential, a two-year degree a four year degree, something to be successful in the long run no question about
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that. >> give us some options, some alternatives. what are some of the things people can be telling the young people who are struggling. what kind of option he to the four year degree do we have? >> absolutely. you can look at a four year community college, or computer systems, information sciences that can pay $60,000, $70 thousand a year, that pays more than some bachelor's degrees. >> one thing we hear is the growing cost of education the student debt burden. and while that is a very real concern, it becomes less real if you are in one of these jobs where you can earn 70 or $80,000 or more. i always worry that there isn't enough focus on the return on investment that you put into an education. >> absolutely. you know when we're seeing a crisis out there of $1.2 trillion in student debt, we need to be making sure that young people have the
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information they need so that they can get a degree that doesn't cost too much that ensures they can pay down their dibt so they request get that -- debt so they can get that return. >> or they can pay down that debt. if you are going to incur debt education is one of the best reasons to incur it, if you can pay it off. >> absolutely, paying i.t. off in the long run. >> rory thank you for joining us and drawing attention to the plight of young people in america. rising stock markets and home prices helped lift family wealth to a new high. pension plan assets and retirement fund savings, like 401(k)s also rose. however, the gains are flowing mainly to the wealthiest americans. roughly 10% of americans own
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about 80% of stocks. what is once a frozen waste land is thing storehouse offing precious metals. the arctic wealth, come, up on "real money." keep it right here. here.
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>> now inroducing, the new al jazeea america mobile news app. get our exclusive in depth, reporting when you want it. a global perspective wherever you are. the major headlines in context. mashable says... you'll never miss the latest news >> they will continue looking for suvivors... >> the potential for energy production is huge...
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>> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now >> on techknow. we're heading to cutting edge cal tech campus >> here's a look at just a few of the students shaping the future of science >> see the latest research, discoveries and breakthroughs inside some of the worlds most advanced labs. >> how do you scale somethig you learned from a jelly fish? >> techknow every saturday go where science meets humanity. this is some of the best driving i've ever done, even though i can't see. techknow. we're here in the vortex. only on al jazeera america. >> earlier this week president obama proposed a plan to force the power industry to reduce greenhouse gas emission. the goal is to slow the damaging effects of climate change. nowhere are those effects more
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clear than the arctic circle. revealing land and sea bed as rich in oil an minerals as any in history. as david shuster reports, that has set off a competition among countries and companies to cash in. >> once a frozen expanse, today the region is melting at an unprecedented rate. according to the united nations, the polar cap has retreated, and bringing access to millions or billions of dollars of natural resources. 13% of its crude oil, most of it offshore. in april russia jumped to the head of the race. shipping its first tanker of oil in the gazprom, shelf.
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but the arctic promises much more than petroleum. >> nickel, zinc already exist in the arctic. fresh water, timber, fish, a whole host of resource he including renewable are energy such as tidal and wind, as well. >> also opening new shipping routes. crowding the northwest passage, a once impassible link between the atlantic and pacific oceans, and in the waters above russia, an increasingly more viable shipping route. by 2020 the country predicts more than 30 million tons of goods could travel route each year.
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>> despite president putin's claims, also claim up to 200 miles off their shores as exclusive economic zones. but beyond that limit, the rights to riches beneath the arctic sea are up for grabs. so far all territorial claims have been settled peacefully, arbitrated by a united nations treaty called a law of the sea, a treat yu the united states has refused to join. >> 1992 u.n. convention of the sea sets the ground rules not just for the arctic but all oceans of the world where jurisdictional lines are, and it is the overarching framework, the bedrock of ocean management.
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embarrassingly, the united states hasn't joined this treaty. >> until congress approves ratification, many analysts believe the united states will be left on the side lines as the race for arctic resources speeds ahead. david shuster, al jazeera. >> if you would like to weigh in on how the arctic should be managed, a site raising awareness of arctic issues around the globe. now let's explore this race for arctic riches a little more. i spoke to a man who's traveled extensively in the arctic territories, bob reese, author of a book examining the riches of the north. i asked him why the 1992 law of the sea treaty is so important.
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>> it is only under the treaty that the united states could claim more territory north of alaska. north of alaska we have a territory the size of california that we could annex to prove it's part of the continual nenl shelf. -- continental shelf. in order to do that we would have to join the treaty. all the arctic countries are part of this treaty. one person told me if this was in the ballgame, we wouldn't be in the field, we wouldn't be in the stands, we wouldn't even be in the parking lot. we're last on the race. >> so many reasons congress hasn't done outer things we should do. why haven't we ratified this? >> especially when you consider the people who want us to ratify
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it. the sierra club, the obama administration, the shippers want it, you would think so many people want this treaty who is blocking ilt? right wing republicans don't want any international body to have a say in anything the united states does. and what they say is they are trying to continue the reagan legacy. because the treaty first came up under reagan and it was blocked. i tell you i was in the room two years ago when james baker who was reagan confidence secretary of state and the point of the treaty that have been objected to by the administration have been fixed and even reagan would ratify that treaty if it came up today. it's just blocked, every time it comes up. >> let's talk about the 800 ton tanker in the room, china. >> they are sprel -- many
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supremely interested in the arctic. saving $2 million each way each trip rather than the panama canal. >> wow. >> vladimir putin has said, the are bering strait could be the next suez canal. it's a huge reason why we should be ratifying this treaty because the treaty will give us new rules for the ocean. >> time to leave the cold arctic and head for the open road. we go full throlt on an iconic brand. >> harleys are freedom. it's a way to express yourself and it's an iconic name plate like traditional harley davidson bar and shield.
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and the best part of all: chicks dig it. >> who's buying harleys nowadays? we'll have that story when "real money" continues. something like this >> an epic fight to preserve a way of life. >> we ask for strength as we take on one of the most powerful forces on the globe >> a battle for the very soul of this state, but is time running out? >> it's a wholesale effort to buy government... fault lines al jazeera america's >> ground breaking... >> we have to get out of here... award winning investigative documentary seriesr
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i think that al jazeera helps connect people in a way they haven't been connected before. it's a new approach to journalism. this is an opportunity for americans to learn something. we need to know what's going on around the world. we need to know what's going on in our back yard and i think al jazeera does just that. >> so harleys appeal from a vast number of motorcycle riders, from the police to everywhere in
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between. but hasn't translated into solid financial performance of the company. while harley is definitely better than it was in the financial crisis, its core demographic is aging. david arioso has this story. >> harley davidson has long billed itself as synonymous with the open road. harley once tried to trademark the sound of its bikes' exhaust. that rumble led to a response. >> it's a freedom it's a way to express yourself and it's an iconic name plate like the traditional harley davidson bar and shield. and the best part of all:
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chicks dig it. >> a lot of brands that we know and sort of grew up with, that are part of the american dream or american narrative and harley davidson is one of these great legacy or heritage brands. >> it wasn't always easy riding. the milwaukee based company was forced to lean on a $300 million high interest loan financed by warren buffett. >> if we go back to the 2008-2009 downturn, since then sales have been bouncing back, profitability has been improving. >> despite the harsh winter, productivity rose after the company shaved production cost. but the real success story may be overseas where first quarter sales soared more than 20% in asia 9% in latin america and
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more than 8% in europe. harley davidson is known to build big powerful bikes like this one but the company has switched gears. harley's growth strategy internationally is diversification. they realize that to sort of get into the new generation they were going to have to take down the size, take down the price point. their strategy for growth is very intentional on markets that definitely want to participate in the harley brand but they want it on their own terms. >> the new line of street 500 and street 750 bikes are smaller and more affordable and shipped to new markets in spain and italy and india where harley for the first time is building motorcycles from cras scratch in overseas markets.
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>> harley owns that equity and that's what they're selling overseas not americana. >> yet roughly two-thirds of company revenue comes from america, where baby boomers like damon vs. driven up sales. baby boomers are a shrinking segment of the population. while foreign competitors like cokawasaki and suzuki have drivn up competition. >> it's so big among kind of the aging white male and as that group is getting older, gosh, is there going to be demand as we look forward expwhrm meanwhile sales have -- >> meanwhile, sales have surged. but despite that surge, sales in the united states are low, and that's led some investors to say
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not so fast in deciding whether harley davidson is truly on the road to recovery. david arioso, al jazeera, new york. hog heaven became officially cool when pope francis blessed the riders in attendance, actual hell's angels. cvs and walgreen's are expanding, we'll show you the changes doctors have had to make to compete with drugstore clinics. "real money" airs weekdays, 7:00 p.m. eastern, 4:00 p.m. pacific. that's our show for today. i'm ali velshi and thank you for joining us. joining us. ♪ ♪ hello again, welcome back, a. a reminder of the top stories here on al jazerra. veterans have returned to the beaches of nomady to mark 70
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years since the allied invasion. in ukraine, residents of cities in the east are fleeing as the situation shows no signs of improving. in luhansk women and children have been evacuate odd a train that was paid for by the russian president vladimir putin. one person has been killed and three wounded in a shooting at a ded in a shooting at a hello. i am richard you gizberg. he script, the state of journalism, journalism that's gone to the dogs. what's with the fact-free reporting about north korea, sty land and turkey,