tv Real Money With Ali Velshi Al Jazeera January 9, 2015 7:00pm-8:01pm EST
chemical spill is more people here in the charleston area in west virginia are more active, more engaged and really wanting to know more about the politics specifically of some of the environmental issues. >> that's our show. real money with ali velshi starts right now. >> every time with he hear about attacks like the one in paris spending on security in america goes up, but maybe it doesn't have to. >> here's what's wrong with america's economy right now bosses keep hiring, but not enough giving out raises. >> it's a dirty job and a ton of people want to do it. that hauling the trash is one of the hardest gigs to get in america's biggest city. i'm ali velshi and this is "real money."
>> a tense week of death and pursuit in france comes to a fiery end. two suspects who killed people at the offices of charlie hebdo are dead tonight. after two days on the run cherif and said kouachi came out of their hide away at a printing plant near paris with guns blazing. they died in a shootout with police. in the heart of paris a gunman burst into a jewish grocery store are and threatened to kill his hostages if police attacked the kouachi brothers. he was killed in the ensuing shootout with four hostages. coulibaly was clearly linked to the kouachi brothers. we have the latest from paris. dana. >> a lot of details i think we're going to be hearing over the next days, things that the police up until now haven't talked about.
when we came into dammartin today, of course this was a completely sealed area, people in their homes the schools sealed with students in them. there were about 1,000 people inside the school that now appears that the kouachi brothers after carrying out this very bloody attack on the newspaper on wednesday were on the run for 48 hours and this morning came out and started heading towards paris down the highway, and that is when they encountered a police road block of some kind, shots were fired and exchanged and it now according to the prosecutor, appears that one of the kouachi brothers was wounded in the throat, in the neck. they came to this town, took over this printing shop, taking one person hostage that was the original report. the prosecutor is saying there were two innocent civilians in the printing show, one of them was hiding in the cafeteria. he is saying that the brothers came out and confronted police. they rushed police, came out of the building, started firing and
then police then exchanged fire with them and gunned them down. they are also saying in the case of in paris on eastern paris in this kosher grocery store that coulibaly killed four people as he entered that they were not killed by police as they rushed the believe and that 15 people, 15 people were then saved when the police rushed the believe and killed that member, who probably has links to al-qaeda. that is something that they're investigating as the kouachi brothers too. >> thank you for your great reporting. >> a witness to wednesday's shooting spree said the gunman claimed to be from al-qaeda. today al-qaeda in the arabian peninsula, rewarded as the most dangerous branch of the movement claimed responsibility for the attack on charlie hebdo. the group claimed the attack was meant "as revenge for the honor" of the prophet mohammed, who was mocked in the magazine's pages. all this violence has put
transon high alert. police departments and security forces elsewhere in europe and even here in the united states ever responded with their own measures. terrorist incidents and the fear left in their wake come with multiple cost to say society. attacks like 9/11 enamerica 7/7 in britain the boston marathon bombings are costly interns of the lives lost. the post attack security responses from both governments and private industry come with huge price tags. sometimes the public pays the price in the form of rolled back civil liberties in the name of security. in many instances companies are forced to reconsider disaster recovery options and to shell out money to insure property from damage against unforeseen attacks. the state department urged citizens abroad to maintain a high level of vigilance and take appropriate steps to increase security awareness. how would one even accomplish
this? joining me now is bill daily, 40 years of experience in high level security assignments and managing director at a global risk firm that cults with businesses. when companies in the wake of things like what has just happened in paris and what happened in sydney he, when companies engage you and say we think there's a higher risk out there, there's more threat, are they looking to mitigate their fear or the fear of their employees or their clients or are we really looking to control the threat? >> great question. some feel if they just do something, it makes them feel better. if they're not addressing their risk their throwing money away. to understand their particular risk you have to look and say do you stand out there are you in an area or frontier location, doing business with people where you think that can happen. with that, you put it in
perspective. that some feel if i do something, put cameras or put a guard and spend money, i'm going to be better protected. >> is there a certain degree to which everybody doing a little of that, being more conscious of a threat does help, if i see a train, if i see something say something. if you see a bag laying around or see somebody suspicious, we're more likely to catch bad guys. >> it is a help to ever an informed public and people aware of their surroundings on a personal level and societal level, as well. the other thing that can drive some of this is also protecting the company from potential litigation so kind of the approach saying that well maybe we're not the biggest target, but if they don't do something and something bedahls us, we're not doing something. some do it to protect themselves from legal obligations later on or litigation that may ensue because have something that
happens to them or maybe their employees when they're travel internationally. >> i'm not asking you to give up corporate secrets but does business tick up after this? >> we will get more calls but it's interesting in that overall, it's kind of to trending thing. you will get calls and try to allay people's concerns, because there's nothing they can do at the moment today. you'd ever to understand and you want to do it right prescribe something that makes sense to them and is long lasting. you don't want to put something today, ever an armed guard standing there for what reason and two weeks from now go away because they're going to see how much it costs and people are going to be more at ease. we field these calls. overall if you look at the industry, there is a trending up. it is driven by these kind of incidents, where we look at what happened today where we look at what's happened in the past few months with sony and a few weeks ago, where that was not loss of life, it was an act of
terrorism. what are people spending their money on? more and more on cyber issues, protecting people when traveling and working overseas, as well as those locations that may not be their corporate headquarters, where they could be seen as being a catalyst or a location you go to. >> the marquee name or the idea that some -- and i'm just talking about terrorism here or cyber, the concept that your marquee or are a target for a specific reason like charlie hebdo was that's important the idea that people, there are people who want to engage you or engage greater security around them but they don't figure as a threat there's not that much threat to them. >> there's some people who don't figure into that equation. that they are not seen on the horizon of potential terrorism. we have had clients specifically named by al-qaeda or specifically named in inspire magazine certainly they need to be concerned. people just down there on a
lower level who feel they come from a certain background, that there's a certain way they he attract attention. >> you can help them figure that out. private security spending, the numbers for 2014 and 2015 are projected, but you can you see a gradual increase there. you mentioned cyber security, people traveling into other countries to do business there. where does terrorism, just pure unthat filtered terrorism like in sydney or paris where does it figure in the hierarchy of threats to businesses. >> the likelihood is very rare. the impact can be high, because you're affected by it, as we've seen today significant impact, but the likelihood, you're more apartment to people being in car accidents, getting sick, a disruption of your supply chain
and a whole myriad of other issues that go into plotting those risks. terrorism could be there for a particular company because of what they do and where they are. it's not on everybody's check list but typically is out there in that probably high-impact less likely event anyway. >> you're not compelled or tempt the to take advantage of the fact that people can -- people might open their wall lets more than they otherwise would ever when these things happen. >> at the end of the day you're better offer in the long term and long relationships being as frank as you can and saying listen we think your risks are here that thing you think is distracting you and distracting management and senior management saying we need to address. >> it might be here, it might be a computer system. >> exactly. i think more and more, they keep these in many companies computer systems and intellectual property which can
>> americas job market is rocking. the economy produced 252,000 net new jobs in december, capping offer the best year of job creation since 1999. we sort of saw this coming. it would have had to have been an unusually low month not to get to that number. the gains brought the total number of jobs created last year to 2.95 million. the other seemingly good news is that the unemployment rail fell to 5.6%, down from 5.8 in
november. here's the problem with that, though it's why i really tend not to like this number as a measure for our purse. most of the drop we saw in the unemployment rate in december is because people got discouraged and dropped out of the workforce. that's why the labor force participation rate fell slightly last month. that's not a good sign. here's another reason we can't fully celebrate with the abandon that you might want to, wage growth remains pretty low. average hourly wages in december fell 5 cents from november. hourly earnings rose at 1.7%, higher than inflation. inflations 1.3%, but it's not fog to make anyone feel great about their prosperity. even so, the obama administration is finding a lot to like in today's report. labor secretary tom perez said the economy closed out the year on a hat streak, also acknowledging that we need to do
more to achieve meaningful wang growth so more americans share in this prosperity that this economy recovery is creating. secretary perez joins me now. good to see you, thank you for being here. you ever identified the problems the good side and bad side in this unemployment report. let's go right to beige growth. year overror up 1.7%, inflation's running at 1.3%, relatively low and going to be lower yet because of these low fuel costs that we've got. give me a sense of that dynamic. >> you know, the issue of making sure that the prosperity that you correctly identified is out there is shared and not just prosperity for a few is really the significant unfinished business of this recovery, and a subset of that challenge is to make sure that we lift up real wages in a meaningful way and this challenge really has two
dimensions to it. it's a dimension that starts really 30 years ago when you think about it, because historically when productivity went up, wages went up with it. >> right. >> there was shared prosperity and that was the case literally for decades. you look at the period from roughly 1979 or 1980 to the present, and we've seen productivity increases continuing. >> that is largely because of automation right? machines do things more effectively, so a company could pros more per hour without that worker benefiting from that. >> the point is i think workers have contributed to this increase in productivity and historyically when they've contradicted ever shared in the largesse. that 50 record days on wall street that's a good thing. if you have a 401k, that's going to help.
we need more on main street for the worker who hasn't had a raise in years. we haven't seen increases in productivity translate -- it's a 30 year phenomenon. >> we used to have a very direct line between prosperity on wall street and the rise in the price of houses and low interest rates and job creation and wages. all of those other things are actually happening. that we've got low interest rates, high home prices or rising home prices, records on the stock market. we even have great most people would tell you 250,000 jobs created in a month is really very good, and yet nothing is budging these wages. it's so small. what can we do? >> i think there's a number of things that we can do. some are short things that we can do in the short run that are helpful. none of the individual interventions in and of itself in a panacea. this there was one magic bullet
fix, somebody would ever done it 20 years ago. here are thee things that come to mind right now in the short republican. that when you raise the minimum wage you put money in people's pockets, they spend it. that when you continue to pick up the pace of growth, and we've had three months, weaver had the best three month period of job growth in something like third years. that puts upward pressure on wages, because when the labor market tightens, then workers have more leverage. another thing we can do, which is again has been bipartisan is a long term transportation bill. that puts people to work. what the president did today which is investing we talk a lot about investing in our physical infrastructure, but we've got to invest in our human capitol infrastructure. the president in tennessee today announced an important and bold initiative to make community college free for people who can't afford it. the education differ did he
understand is unmistakable and well documented. the more education you have. >> absolutely. >> the better the chances are of punching your ticket to the middle class and every employer i talk to across america tells me two things, number one i'll bullish about america i want to grow my business, i want to add workers. number two, one of the biggest challenges i ever is i want to make sure that everyone who comes through my door has the skills to compete for my job. we led the world in educational aat the same time throughout the vast majority of the 20th 20th century. we have fallen down on that and what the president said today in tennessee is we're not going to fall down anymore. we're going to invest in our how many capitol, as well as our physical capitol. >> let's pursue this a little bit. last time you and i talked, it so happened that the job days sewn sided across the country it had been post ferguson missouri post the eric garner incident in new york.
your history is in civil rights. you also come from upstate new york. i'm from toronto you buffalo you've seen a piece of this country that went from prosperity to a lot less pros period. are we overseeing the building of a low wage or no wage underclass in this country that is contributing to some of this sense of us and themes, disenfranchised and voiceless versus the 1% and the 5%? the number of long term unemployed has barely budged in the last several months despite all of this prosperity that seems to be going on around the revert of the economy. >> i agree that we still have far too many long term unemployed but we have made substantial progress. >> 2.8 million people for the course of a year. >> i just want to make sure that your listeners appreciate that we had a very deep hole to dig out of and we're digging. >> understood. >> we've got to dig faster. that i don't agree that we're entering a world of a permanent
underclass. i don't believe that low wages are not a necessity. they are a choice, and i can give you in every single sector examples of employers who are doing good by their employees and doing very well by their shareholders in their retail sector. you look at costco, i wish i had bought stock 20 years ago. i'd be a much richer man. you look at the retail sector, when the gap went to $10.10, their applications skyrocketed. there's a wonderful burger joint called shake shack. >> i know it well. >> i've been with the c.e.o. i just went to the shake shack in brooklyn right next to the brooklyn bridge over the holidays and they're about to do an i.p.o., because they're
going bang busters and they're going to take to scale a business model that says in the burger business, you can treat your workers well, you can offer a good product at a competitive price, you can do well by your shareholders. that that is what they are doing, and in every sector of the economy he, that is the case. >> if you're going to make food references on my show, please try to do it toward the end of my show, because now you've got me hungry. >> u.s. secretary of labor. >> all right i to have wait to the end of the show to eat anyway. the report in a broader context while weaver made up lots of ground, we are not back to where we are even before the recession. check out this chart. the blue bars there show the number of unemployed americans. they now total and by the way we're looking at december, 2007, a one on your left, right before the recession started, june of 2009 is the middle section. that's where the recession ended, and december of 2014 is where we are.
the blue bar is unemployment. right now, 8.7 million people unofficially employed, a million more than at the start of the recession in 2007. the red bars show the number of people working part time for so-called economic reasons meaning they can't find a full time job or their hours have been cut. as you can see those people numbered 6.8 million last month and that's 2 million more than the number was back when the recession started. these are among the things worrying bill rogers, cheech economist at rutgers university workforce development center. he worked on president obama's labor team. he was the chief economist at the labor department from 2000-2001. that good to see you again bill, welcome back. this is remarkable. the jobs growth in 2014 was ripe no question. three months of record job growth and he said that should
push wages up. >> except it hasn't, really. what's wrong with the map that? you and i have always thought that the more people get employed the lower unemployment is the wages should go up. why isn't that happening? >> the problem is we've got ourselves in a very, very big hole back in december of 2007, and we first have what we call this jobless recovery where economic growth, g.d.p., gross domestic product was expanding but not enough to increase hours for employees. >> you increase hours wages then you hire more people. >> that's right. the other dynamic that was going on too was you had employers that were just so afraid and nervous about the fall off in consumption, making up 70% of g.d.p. were slashing and burning.
add in the international competition, driving and pushing rates to the bottom, so employers are very, very nervous about expanding. there is concern about the affordable care act. i discount that as a main issue. >> talk about the race to the bottom. that this is a force that we're -- it's hard to measure but the fact is it is still cheaper for are some producers to ensure production is done a understand that drivers a lot of business decisions. >> you have globalization and then immigration that puts some communities down with pressure on wages. those tied together with americans feeling uneasy about jobs prospects experiencing this long term trend in wages that aren't staying ahead of inflation. that's no longer the sort of bottom third or bottom quarter of the sort of jib come scale. it's moved into high school graduates, moved in with the college graduates and so this
has been this actual opportunity, if you will, sort of slow recovery. >> actual except if you're in the very top. >> right. >> it's not equal at all. this has been the best five years in decades if you're wealthy. if you went in to this recreation with money capital you bought up all those assets real cheap the stock market in 2009 housing for the last few years, that's part of the problem, isn't it? >> oh, yes several years ago when i talked to college woman marry, i worked on a project for the president and the pro voter there and conservative board of visitors that when you're paying your house keepers and landscapers below market wages that translates into low productivity. people taking mondays offer because they don't want to work and we built in and built a business story let's raise wages of these employees and ever ripple effects to moderate
paid workers and saw an improvement there. here closer to home in new jersey we've actually identified about a third of our households are what we call alice households, asset limited income con strained and employed above the poverty line families but don't have enough money to make ends meet or meet the cost of living in their communities. that we're not creating an underclass it's that we are not doing, making the right investments in term of education, physical capitol and social capitol in our communities to help out, you know all families across the income scale but especially the most vulnerable, who happen to be families in the $30,000 to $70,000 range where it depends upon the size of their family. >> i want to tap into your expertise and look at the something the people call the real unemployment rate, using the three examples of right when the recession started ended and now. the proportion, right now the official unemployment rate is 5.6% the real rate 11.2% the
proportion is great are than it was at either point. that what does this mean? >> the real unemployment rate includes not only those actively searching for a job that's the traditional, the official sort of bureau labor of statistics definition but includes two our groups the individuals working part time but want to work full time. they're living in communities where the consumption of people in those communities hasn't gotten strong enough to where employers justify moving that person from part time to full time. it also includes another group of people, about two-mile, i believe now who are individuals that have stopped actively searching for a job if they were offered a job if they were offered a job, they had take it. >> why ever they stopped searching? because it hasn't borne fruit. >> either they have on the good side of things had savings or they've had other investments that they've had to tap into or
have unemployment insurance. the other challenge the challenge is that many of them will if they've been unemployed for longer than the 27 weeks they've moved from being cycleically unemployed to what policy makers call structurally unemployed and getting them back into the labor force back working and earning a wage, that's a much more challenging effort and so one of the concerns i'm having about these great reports and want to focus on the beginning of the recession, the end of the recession, we're going to have cheering out there this new congress that is going to be very much focused on let the job training a job. millions of americans need the investments in education they need invests in training and social capital in their communities to make us more competitive and improve living standards in america.
>> we always get perfect plants everyday... >> feeding the world... >> this opens up whole new possibilities... >> tech know's team of experts show you how the miracles of science... >> this is my selfie what can you tell me about my future? >> can effect and surprise us... >> don't try this at home... >> tech know where technology meets humanity only on al jazeera america >> i'm ordinarily not one for trash talk, but let's talk trash right now the job of collecting the garbage that new yorkers create. becoming a garbage man is the motor coveted civil service job in the entire city. more than 93,000 people recently applied for the privilege of carting away garbage here in the big apple. that mary snow reveals why. >> i'm a new york city sanitation worker. it's not easy getting a job.
to get a job right now in this day and age is scarce. >> in fact, this might be one of the toughest jobs to get in new york city. this past year, more than 90,000 people submitted applications to become sanitation workers but the department only hires about 500 new workers per year. that translates to an acceptance rate of .54%, a little over half a per he percent. it's harder to become a sanitation worker in new york city than to get into harvard. >> 96,000 applicants for this job, it made sense. it also made me think that how hard it is to get a job right now. >> one reason that being a sanitation worker is so enticing may be the pay. the starting salary is low approximate $34,000, but when you factor in overtime, it averages about 47 that thousand
dollars in the first year. after five and a half years the salary jumps to $89,000. that's not bad considering the average annual pay for new york city transit workers is $78,000. new york city teachers, $68,000. and new york city parks department employees only $50,000 per year. since new york city sanitation workers also operate the city's 2300 snowplows there's ample opportunity for overtime pay. >> when we have a big snowfall, we mover into 12 hour shifts so they earn a lot of overtime. last winter was extraordinarily harsh and people on average might have made $75,000 a year were averaging more like $95,000. >> there are other perks. that 10% extra pay for night shifts double time for sunday, 25 vacation days after six years of service and an unlimited
number of sick days. in fact, sanitation department workers used an average of 14.4 sick days in 2014, more than police officers, who also have unlimited sick days, but who only used an average of 7.7 days of sick leave last year. >> like any strong union, they do have very good benefits. they have very good pension benefits very good health plans. that that's true across motor other city employees. >> it's not the easy effort job you know, it's unexpect. it could be anything in this garbage, needles knives, acid. you don't know he what you're touching. >> despite days with endless mounds of garbage joe considers himself to be one of the luckiest men in newark. >> it's like hitting the lottery getting this job. i tell my friends take the test, take the test, take the test, 20 years to retire, it's a great job. >> marry snow, al jazeera.
that. >> for sanitation workers to teachers and firemen 71% of government workers in new york state are unionized the high effort rate in the nation. daniel is a senior fellow at the manhattan institute here in new york city. that's remarkable. that's a very high rate of unionization in a world where juneizeation is becoming less and less popular. these are the jobs that we thought people get to establish themselves in the middle class and succeed. should we be upset that the unionization levels are so high or glad that they are. >> it's unionization only occurring in the public sector employment. in the private sector, unionization rates have fallen since the 1970 said. in the public sector, it's been different and stayed steady and constant. >> what's the best argument for it not saying steady and
constant. we look at the job numbers and see despite a roaring stock market and house prices going up and low interest rates and lowering unemployment, wages don't budge for motor people. >> they don't but they've been moving for public sector employees and that's really the problem that your lead piece puts it finger on, which is that public workers like sanitation workers, like teachers ever seen incomes continue to rise as unions have pressed for higher wages and better benefits, while at the same time that the taxpayers funding them haven't seep those same kind of benefits and increases. >> what would you propose the solution is, when you see again, i'm not sure i fully get the problem. that it's surprising when you see that a sanitation worker in new york, a garbage collector earns more money than a teacher in new york, so there's probably issues with our priorities, but is there not a lesson for the private sector are to be taken from the public sector to say we are hearing these people and employing them to the point
where they are comfortably able to be in the middle class. >> the private sector, the big issue is whether there's been a long debate about whether unions could come back in the private sector. the issue is that they're probably not going to be able to come back. that's the view of most analysts is because service sector employment is so hard to unionize and manufacturing employment will probably continue to decline. those are are the sort of classic blue collar union jobs were. >> right we've seen cities struggling under debt loads outsource a lot of city services. when you outsource them, that means you can in some cases get away from these things. what is the best solution for public services? >> you put your if i canner on something very important. in jurisdictions a understand municipalities like new york and other cities where you do have strong unions within the probability that you will contract out those services, even if there were both efficiencies and cost savings to
be made for taxpayers doesn't happen because the unions put up a huge fight against privatization, so those kind of managed competition for public services would be good solutions, but it's a huge political battle and the elected officials ever to be willing to take that on. >> that does not look in places like new york that that is likely to change. when you look at the sort of those states that have sort of entrenched union power that's also political power. >> that's also political power. the unions can use it in a way that's different from private sector unions in the public sector. they get two bites at the apple to win things in collective bargaining and through political activity. in new york here, governor cuomo had to go through a huge battle to change the pension formula for new hires because the state's pension liabilities are very large and growing very fast. >> the problem that presents us with is when you look at things like detroit detroit ended up in bankruptcy in very large part
because of their pension liabilities for firefighters and policeman and city workers things that made sense at the time that they did them but in the end the city could not afford those things. >> often there was a quid pro quo, the unions public employee unions accepted less immediate raises and salary for the promise in pension formula changes for deferred compensation and a lot of employee compensation across the country is back loaded into retirement in the forms of pension and health care. you look at huge political battles in illinois and rolled island and elsewhere are all about the subject because as these liabilities are now the pay piper has to be paid, they are crowding out other services, other things the government wants to do. >> is there a way to fix this for new hires and later retirees because it does seem unfair to change the balance for people who got into this job and
people plan to go retire on the basis for it. >> when it comes to pension reform people already retired and serving benefits, that's pretty much untouchable. legally, you can go up to the contracts clause of the u.s. constitution. government has a much freer hand when it comes to what unions call the unborn, people who aren't hired yet. there's more margin of maneuver. the real legal question being tested across the country in different cities and states is what can you do for people in mid stream, whether they vested a understand so on and that's really going to be a big area of political conflict going forward. >> good to see you thanks for being with us. >> >> free community college tuition, critics say president obama's plan will never work. i'm going to tell you why it may be the kind of investment in america's future that we need. i'm back in two minutes. that es. that
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on al jazeera america >> on the surface this soundslike a great idea. two years, two years of free community college for everyone who works for are it. that's the idea that president obama unveiled today in knoxville, tennessee but it's not entirely free for everyone. the white house said there would be a $6 billion price tag over 10 years. where that will come from, like so many of the proposals that come from government is unclear. with federal funding states would pick un25% of the tab. it promises to be a tougher sell maybe impossible sell. we have the story. >> president obama chose tennessee to announce his plan for two years of free community college, the state offers a similar plan, but education advocates question how the idea can be extended to a national
level. others called it precedent setting. >> by signaling to everybody that much like high school became 100 years ago that college has a fundamental expectation of what you need to enter the middle class. by setting that expectation, it is a game ore changer. le devil is in the details. >> those details are unclear and expected to be revealed in the president's budget. the white house said the plan will allow college students to safe $3,800 a year. the proposal apply to say two year community colleges. students will have to maintain a 2.5 grade point average and go to school at least half time. students will be eligible whether or not they get pell grants. sceptics say there may be better ways to help needy students. >> would this be as efficient as just giving those students a much larger pell grant? it wouldn't be, but it gives
money to students from middle income families who right now don't qualify for financial aid but they also ever a hard time paying for college out of pocket. >> education advocates say making college more affordable is just part of the issue. the other big one is the success rate of community colleges. that. >> here's the statistic that i think we all need to pay attention to. only 15% of community college students students who started community college get a bachelor's degree. 80% want one but 50% get one. >> that he says has to be fixed. al jazeera. >> this thing as you can see is laden with problems. i has that to like it. this woman you're looking at, catherine said it's a pipe dream. she's a reporter for the national review. catherine, a lot of countries do this. there are a handful of countries, nordic countries sweden norway, estonia they've had free post secondary
education for a while everybody gets it. we're just talking about community college education the cheaper version of it. wouldn't it solve to many problems that we have, long term unemployment, people not matched to the skills that we have? i know it's $60 billion. i know it's expensive. i know it's not free, but we spend this money anyway. >> if it could work, that would be one thing but obviously the low graduation rates low completion rates, they are very low community colleges. california has the lowest tuition and they don't have the high effort completion rate. you need to kind of look at those kind of things before you look at spending this tire money. >> you are talking about access through cost and completion rates. in four year colleges, i believe the average completion rate right now is six years. and in two year colleges, it's three years approximate that's a problem. >> yeah. >> but some of that problem some of that problem is actually directly related to cost, right?
to some degree, people can't get through because they're working. >> more than half also come to college and find out they need remedial courses which they can't get credit for. we need to look at more what happens before college than while you're there. if we've spent money on people who can't graduate, that's a waste of money. would it be a good use if it is a good use is one thing. it's pointing that it wouldn't be. >> we are trying to prosecutor that people for college since before human kind walked upright. i'm not sure when that problem is going to get solved, do we wait for this problem to get solved? we can't come together as a nation and improve our high school graduation rates. we ever two countries here, a very highly trained high school educations in urban wealthy areas and a bit of a developing nation system in minority areas. that that's going to be decades before solving that. >> this isn't the collusion because obviously we have the
republican controlled congress. >> i agree. >> i think it would be easier for obama to say i tried to give everybody free school, but those mean republicans voted it out. >> wouldn't mean republicans and passionate democrats both agree that skills training, we have a mismatch, we have a lot of job openings. >> they can still charge as many fees as they want. >> they charge them to the government to the states. >> they can charge them to students. >> you are talking about people who are not getting free college education. >> or if they are that doesn't cover fees, that covers the average cost of a college education. >> there are some basics we agree on. one is we don't seem to have a workforce adequately prepared for the jobs of today. we're arguing about garbage man jobs manufacturing jobs, we shouldn't be arguing about jobs like that. people should be trained to do the skilled work. >> a lot of the requirements for the specific occupational
classes, or program to your program, they require that they have a certain graduation rate, so you want that money if you're the school. the money goes to the school. that that could lower the quality of the education or value of a degree, because they're going to want those kids to graduate. >> could republicans do this and say interesting point but for all these concerns, why don't we amend this and make it this and this got to graduate in two years, you've got to do those things. can't we fix it? this gives the president the ability to say i suggested it, these mean republicans won't pass anything. >> we're seeing that that's not the case right now and not the case not because they have financial differries, and then of course, it does increase the amount of people who go and they be you need pour teachers. >> that's all good, that's all good. >> where is that going to come from? >> i would love a society where we need more teachers and school supplies. >> where's the money going to
come from? i'd like to hear that it is going to affect student outcomes. it's any over to say that. i would love it if that were the case but right now completion rate is so low and students taking remedial classes, i don't see that happening. >> i'm sure you'll come up with a solution more effective than the one proposed. >> you might be thinking however am i going to go in today's job market with a two year degree, anyway. i'll introduce you to a single mom who says her single college degree was her ticket to a middle class life. she's not alone. back in two minutes approximate es approximate
of a lot of aspiring students around the country. some people see so-called associate degrees as a stepping stone to four year college degrees. some graduates with a two year degree can earn more than those with patch lowers degree. her college degree her ticket to the middle class. >> she loves being on stage but these graceful moves weren't earning enough to pay the bills. >> money talks. >> you went from being a dancer to looking for bugs. >> yes and this is my favorite part is looking at bugs. >> she graduated with a two years associate degree in water quality from red rocks community college. she earns more than $20 an hour or the equivalent of $40,000 a year. >> all of us have to make some money to survive. >> research shows she's part of a wave of people with two year degrees in applied science earning as much or more during
their first year after graduation than those with bachelor's degrees. >> the most surprising finding was how valuable those degrees were in the labor market. >> mark schneider is a former u.s. economicser of education statistics and president of education data company college measures. he compared the first year earnings of all graduates with two year degrees versus four year degrees in several states. this is what popped out. in texas graduates with a two year technical degree outearned four year bachelor degree hoeders by $11,000 their first year. in virginia, the difference was $2,000. in colorado, the spread exceeded $7,000. in fact, while community college tuition in colorado is $3,600 a year state data shows the median first year pay for keckical graduates from her school is $53,000 a middle
class wage and as she knows enough to raise a family. >> come give mommy a hug. >> colorado is one of several states releasing and cross referencing employment and education data so students can decide if their dream degree is worth the cost. >> students should study what matters to them and excites them but know going in what are the challenges they'll face if they graduate with a philosophy degree compared to an engineering or business degree. >> red rock says industry professionals help shape the curriculum. >> maybe you're a company and need 20 people trained in data warehousing, but that's all you need. we'll put together a program that will give you those 20 peel but then i'm ready to close that program and move on. >> red rock is considering expanding the water quality program because employment and demographic data suggest the denver area will need 1800 water
quality workers the next few years. we met one student enrolled in the program two years ago after working low paying jobs for most of his life. >> how have you been able to save money while studying. >> between gas and food and everything else, it's a matter have keeping shoes and socks on my feet, i haven't been able to save any money at all. >> his water quality training is paying him off. >> they called me up this morning. i was in complete shock. complete shock. i stood there over, i just got a job. [ laughter ] >> it was super exciting. >> now he joins the ranks of people happy to have a stable job and an education they believe was worth the cost. >> yeah, it's going to be such a wonderful thing to be able to pay off my debt. >> did you want to go into water management too? >> that would be awesome. >> al jazeera lake wood, colorado. >> that is our show for today. thanks for watching us. ever a great weekend.
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