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tv   Real Money With Ali Velshi  Al Jazeera  January 20, 2015 7:00pm-7:31pm EST

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right david david shuster will be with us. i'm tony harris from new york city. a special edition of real money with an ali velshi. that's next on al jazeera america.
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>> why is the reality that these jobs are not moving wages up? people associate gaining wages with becoming more prosperous, and they're rightfully not seeing that. >> we're seeing a lot more better on jobs. still not enough jobs for the
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number of people who want to work and can work. we still have millions and millions of americans who are working part time when they want to be working full time. we have people who left the labor market, who would like to come back in. we have people who are working with that slack in the labor market. workers do not have enough bargaining power because the minimum wage is too low to allow them to force their employers to give them a little more in their paychecks. >> one thing that people have come to understand is that the relationship between tighter employment lower unemployment, and more jobs. and wages is not linear. it's not direct. so they're slack and we're reeling in that slack, and at some point the line will start to get tougher. and wages will start to go up. are we getting to that point or is there so much slack for us to be reeling in. >> we're getting there, but boy we have a long way to go.
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in the one period in the last 30 to 35 years the wages went occupy and we saw president clinton's second term. if you compare that to now the unemployment rate was lower labor force participation rate was higher. you had fewer involuntary part-time workers. you just had more tightness in the labor market many fewer workers for available jobs. i expect the president is going to talk about that in the state of the union he'll talk about jobs in manufacturing. >> if you get out of the way of business don't talk about the increased minimum wage and take away some of the regulation and taxation on business and even out the corporate tax rate that will allow jobs to be created. there are people on the other side who say that we need a more interventionist way of creating jobs. things like stimulus, things like retraining and targeted
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efforts by government to stimulate growth. where do you lie on this? >> there is no evidence to suggest that it's true. the problem isn't that wealthy corporations aren't wealthy enough and they don't have enough free rein in had the labor market. the probable is there are not enough product. we're swimming up stream against india that has slowed down. china has slowed down. we need more area in the market, that's something that the government can provide not with massive spending programs but targeted spending on investments like transportation in this that will help the economy to grow and create lots and lots of jobs. >> as you know infrastructure is something this country badly needs whether it's transportation infrastructure or
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broadband, this is the lowest interest we've seen in decades. and yet we have not taken advantage of cheap money to rebuild america. because it's become political, too. >> that's precisely right. we spend a lot of time watching the fed looking for any indication that they might raise interest rates. the most recent report from the bureau of labor statistics tells us that prices are going down not up. there is no inflation on our economy. that's why it makes sense to keep interest rates low. but still there are people out there hammering for higher interest rates which will slow the economy down, put people out of work, and it makes no sense. those people are lobbying for their own economic interests not for the national interests. we need to be focused on investment growth, and making sure that we have shared growth so that those americans who have been left out of this recovery or who have been watching this overarching fair of growth in this economy go into the pockets of wealthy americans that, they
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get a chance to share in the role and share in the growth and they see it in the picket books and their economics. >> former secretary of labor for the united states. up next a series of deadly confrontations between the police and citizens. what difference can the country's first african-american president make? and we'll look at the suburbs and why the problems are growing even as the economy improves. stay with us.
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>> in 2014 unrest swept the nation's poor minorities in cities and most strikingly in suburbs around the country. in ferguson, missouri, things
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came to the forewhen a white police officer shot and killed a black unarmed man michael brown. president obama needs to address an important emerging dynamic the tale of two americas in its suburbs. [ sirens ] >> fires rages in ferguson. >> don't shoot. >> fury and violence over the shooting death of an unarmed black teen michael brown by a white cop, a cop that the grand jury chose not to indict. >> in december president obama told black entertainment television that it's time to bring an end to these kinds of tragedies. >> holding police officers more accountable not only were we going to put more funding into some of the training and technology that prevent these things from happening but i'm
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going to stay on this. >> they need to stop killing us out here. >> but the protests point to a deeper problem right now in suburbs across america. rapidly increasing poverty scarce jobs, isolation from critical resources like public transportation and even political representation. even more worrisome it's a trend that continues to grow worse. >> the poor population in suburbs has been growing faster than in cities for quite some time. >> constructed on spacious landscape lots. >> the myth of america's white pickett fence suburbs has yet to catch up to our poverty has shifted. suburbs in some of the largest metro areas have seen their poor population grow more than 65% since 2005. more than twice the pace of growth in cities. that makes the suburbs home to the largest and fastest-growing poor population in the country.
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>> this is a widespread trend that effects all kinds of metro areas that we long associated with urban poverty. to see poor population in suburbs grow significantly. >> and the majority of people of color. of those who live below the poverty line more than 50% are african-american and latino compared to 23% of white suburbsites. in ferguson, 25% of blacks live below the poverty line compared to 11% of whites. >> we've seen structural changes in the economy that have led to people in suburbs and across the country slip down the economic ladder. >> there are many ways that they've slipped down the ladder. some suburbs suburban poor are middle class who have slipped down the ladder. many are new immigrants,
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minorities pushed out of cities. minorities left cities in droves in hopes of finding better jobs. president obama addressed the issue in his state of the union address in 2013. >> america is not a place where the chance of birth or circumstance should decide our destiny. that's why we need to build new ladders of opportunity in the middle class for all who are willing to climb them. >> for many of the nation's poor that hasn't happened yet. jobs have moved out of the city, but not the well-paying manufacturing jobs. >> some of the fastest job growth we've seen in recent years have been in occupations that often pay low wages things like home health aids or child care providers service industry jobs that have grown quickly. even if you're working full time it's not paying a wage that is enough to get a family above the
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poverty line. >> it's one of the underlying factors that fuel the unrest in ferguson. and around the nation as americans march by the thousands to protest police brutality against unarmed black men. >> the constant constant police abuse happening in urban communities. >> police brutality and racial divide may be front and center in this year's state of the union, but the deeper issue of income inequality and the growing tide of poor in the suburbs. >> the shocking growth of poor in the suburban areas, by the way, you were with us there some many of these protests, giving us the remarkable unless that you gained through your interviews and reporting through
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the years. why do you believe that house something at the core of this? >> what we've seen over the last ten or more years we've seen cities want to recapture many of those middle class and high- high-income earners who moved out to the suburbs. they built up these inner cities these mixed retail where we have these big box stores and the cafes and the starbucks and all those kinds of shops tied to condos tied to high-end apartments as well. so as a result it's moved a number of people who were poor or on the fringes out of the cities. where do they have to go? we saw this in chicago. we've also seen a change in houseing policy over the last 20 years as they bring down public housing complexes and going to mixed-homes. you bring those kinds of places down. now you have to do the dispersal. people while they're building those new homes, they have to
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move somewhere in chicago they moved to the suburbs. chicago used to be the number two city in terms of african-americans. now they fell below atlanta because they moved out of the city of chicago to the suburbs. that's the role that housing is playing. the problem goes even further. you go to the suburbs and guess what the suburbs don't want mass transportation. i spoken with suburban mayors who say that brings renters we want homeowners. >> you also don't have a lot of other amenity that is are typical of cities because of the high density. so you end up in the suburbs quite possibly under employed. the represent is cheaper but quite possibly under employs. >> that upward mobility ladder gets taken away. >> all of a sudden you don't have transportation. you're forced because of income
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to move to the suburbs. what happens is you now can't travel back and forth. you don't have your own car. at least when you were in the city you have a bus system. a subway system. you're able to get around, and that ex-asser baits the problem. now you can't apply for jobs because you can't get to the job interview. you can't afford to call a cab driver. the fundamental issue of how do we do with what is happening with the rising poor in this country is we have to confront housing. we have to have mixed use. i was talking to secretary castro of housing urban development. one of the things that he said at the congressional black caucus over the weekend when you look at cities and how they use tax dollars to build these mixed use developments they've been making it clear saying you're going to have to set aside or target people who are not necessarily middle class uppers. because we can't building up our inner cities. we're seeing this in chicago d.c. houston
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dallas we're building up these gleaning towers to attract these young urban-- >> we all want the creative class and liberal society i mean liberal with a small "l," not politically but liberal society is great for a property owner, but not if you're a renter. >> now ages change. millennials have changed. they don't want to live way the heck out in the big homes in the suburbs. what happens? they want to build these amenities. here's the deal. we don't want poor folks around. we don't want them leaf living in these same areas. developers and city leaders will have to get with developers and say look, if we're going to give you these tax breaks, you're going to have to build housing that's affordable housing so we're not pushing everybody out to those areas.
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that's the problem. >> rowland always a pleasure to have your analysis on these matters. roland martin joining us from washington. >> appreciate it. >> republicans insist the keystone xl is a priority despite the president's opposition. i'll look at why it became such an important symbol for both sides.
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real reporting that brings you the world. giving you a real global
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perspective like no other can. real reporting from around the world. this is what we do. al jazeera america. >> keystone xl is a controversial pipeline that will bring oil through the united states. president obama has held up approval since he came into office. but now that republicans control both houses of congress they moved quickly to try to get construction approved. the president vowed to veto any such move, and the president has vowed to veto any bill with x keystone pipeline. >> if it's ever built many say that it will increase more from canada's controversial oil oil
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from oil sands. it would also travel cross the oglala aquifer. >> if our water is contaminated we have no water for the cat. >> well, president obama obama remains at a standstill over the project despite a mutual pledge to find common ground. republicans are eager to pass a measure that would improve the pipeline construction even though the president has promised to veto the bill in its current form. >> only if this project does not significantly exacerbate the problem of carbon pollution. >> if you're from texas and louisiana, you're scratching your head, what do they mean the pipeline is a problem? we have millions of miles of pipelines in louisiana and
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texas. >> six have signed on to the bill including joe mansion, who claims that it will create tens of thousands of new jobs. but the pipeline will only require 3900 workers to build it and 35 workers to maintain it. >> by their nature pipelines don't require a lot of people to run them. >> yet 59% of americans support the key stone xl. >> well for more on the keystone pipeline and the political machinations the canadian pipeline firm who is eagle for get the pipeline started. i suggested that they'll be able to move more oil to the gulf of mexico and export the oil on ships. >> the intent of the canadian oil moving to the gulf coast is
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not supported on ships to send it to the international market. it's to refine it in the u.s. if you recall several years ago a number of u.s. producers were producing heavy oil in venezuela. they had those leases, if you will misappropriated and they needed to search for another source of heavy oil. that was found in canada with exxon oil. they'll put it in refineryies and put it out for consumption in the u.s. it's cheap reliable, efficient and safe source of supply. the safest they can get. that's simply the reason for this pipeline and the benefits to the united states. >> i guess the point that you and the canadian government and the oil producers up in alberta are making is that this oil is going to be produced. for people who are concerned about the environmental impacts of oil sands is your argument one way or another we're squeezing all the oil we're
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going to squeeze out of alberta? >> everybody is there because this is a source of energy that the globe wants. it's going to be produced. i think canada is a very responsible country as a rule of law. human rights legislation and environmental legislation which will continue to improve relative to others around the world. and as i said, from the carbon perspective that's way blown out of proportion. the oil sands as it sits today producing 55 mega tons of co 2. that's one tenth of global greenhouse gasses. if you shut it down, it's going to have a huge impact in the united states and other places. >> let me ask you this, as you and those who are--for some time this may be dead.
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your view is that this may come back and resurface in some fashion. when you come back at it, no matter what the fax facts are we learned that this did not go over very well for not only activists but mainstream americans. >> we need to get out earlier and on the ground talking with land owners before they get ahold of those who are opposed to production of fossil fuels. the vast majority understand that you need these--this infrastructure and the only request is that it's built safely and relybly. >> thank you for joining us. >> thanks, ali. >> the ceo of transcanada. >> monmouth university poll asked america how much weight do members of congress give their campaign donors when voting on legislation?
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42% said a great deal of weight. some said30% said some weight. 15% said number much, and 8% said not at all. stay with us with the state of the union address with john seigenthaler. that's it from me, john? >> tough challenges for president obama. republicans now in control of congress, and the gop trying to set the agenda as he tries to secure his legacy. tonight, the 26th state of the union address. from the state of the globe to the recovering u.s. economy and the ongoing debate over race and the police. the issues touching every american life. our special report, state of the union 2015.