tv Your Money CNN July 27, 2013 6:30am-7:01am PDT
i spend long hours with her checking her heart rate, administering her medication, and just making her comfortable. one night britta told me about a tradition in denmark, "when a person dies," she said, "someone must open the window so the soul can depart." i smiled and squeezed her hand. "not tonight, britta. not tonight." [ female announcer ] to nurses everywhere, thank you, from johnson & johnson. president obama says she seeking a better bargain for the middle class. a bold economic agenda or another speech for history? i am christina roman. this is "your money." investment in intra structure and a secure retirement, and this week at the college in tkaeulzburg, illinois, the president laid out the corner stoerpb of middle class security. >> when the wrongs on the latter
of opportunity grow father and fath farther apart. >> it's not the first time president obama spoke at knox college, when the president was a newly elected senator with less gray hair he delivered the commencement address there, and he laid out his economic vision for the country, expressing the importance of education, and threatening the forces of tkpwhr globalization of technology, and back then the unemployment rate is 5%, and today is it 7.6%, and the gdp was growing at 3%, and tuition at knox college has grown. and the president says this country cleared away the rubble of the financial crisis but he also says there is much more to
do. the question, will a renewed laser focus on the middle class change the conversation in washington. kevin hasset was a key economic adviser for romney's campaign, and we also have obama's deputy campaign manager in 2012, and the chief white house correspondent. jessica, we want to start with you. wednesday's speech is the third major economic push or reframing of the economic issues since his re-election. a new poll shows the majority of americans disapprove of how this president is handling the economy, and here is the republican reaction. >> the speech turned out to be all sizzle and no steak, and that's assuming there is sizzle left after you re-heated this thing so many times. >> the policy is that he is trying to re-set and reframe for
what? >> he is looking ahead to the debt and spending fights that are going to happen in fall when congress sets out to set next year's budget out and deal with the debt ceiling, so he is using his mega phone to try and start the conversation in a different pitch this time, christine, and to focus not on the numbers but on the notion. so instead of having a conversation about the size of the deficit and bringing that down, it will be more about things like education, jobs, retirement savings, it's the white house's view that the president does better when he can focus on those kinds of topics that the american public can understand and relate to than when it's entirely about the deficit, and that's why they think his numbers come down when he is locked in battle in congress in washington, you see his numbers come down, and when he goes out to the people his numbers tend to rebound, but i would just throw up a note of caution here, which is that, look, this is a little bit of the same dynamic we have seen
before, one person -- he has been out there attacking congress this week, and congress is accusing him of being an engine of division, and it's a role reversal but same dance we have seen for a lot of years. >> kevin, the president calling out republicans for not tangoing, and saying you can't be against something and you have to be for something, and democrats passing around bumper stickers on twitter, and it's like lucy accusing charlie brown of not kicking the football, and the republicans are lucy in this scenario. >> this time i am going to kick that football clear to the moon. >> kevin, the president called for universal pre-k infrastructure, and universal investment, and the deficit has been coming down so why not? >> right, you know, the interesting thing looking at the speech was that it was pure campaign mode, and he was very
insulting and condescending towards republican opponents and he was blaming them for obstructing his great ideas but then didn't offer any great new ideas but promised in the next few weeks, he would. it's an odd speech. it was like manuel the silly stupid waiter as the republican and that's the attitude he has towards them, and that's not a great way to start a negotiation, and the news this week it's related to the economy improving and the deficit going down because of the improvement in the economy, and the debt showdown in the fall, which might go into the winter, is probably going to be a lot different than the other ones because the deficit will have been declining as we go into it, and what will happen is there will be a christmas tree bill, and there will be maybe the keystone pipeline and a few of the things he likes, and those are going to be the things that get the debt limit lifted, this
time probably not a big deficit showdown, and that's what the speech was signaling, he was getting ready for a christmas tree bill. >> he was posing for something, and he has a lot he wants to accomplish on the economic agenda but can't do it without congress, and a lot of the goals can't do it without bipartisan support, and if he can't find a way to work with congress he can't get these things done. >> let's put this all in context because i think that's important. in the course of his first term and six months into the second term, and i don't think congress is refusing to work with him because they think it's a winning strategy to fight with whatever he does. the speech this week was to remind the american people who is fighting for them, and republicans and congress particularly in the house of representatives are
fundamentally opposed to working towards middle class equality, and that's a problem, and that's a hurdle for the president getting this done. that doesn't mean he is going to stop trying. he is going to try until the last day of his presidency. that was the purpose of this speech, to remind everybody, if we want to grow the middle class and want a strong economy and want growth for years to come, we have to take care of these fundamental things that we know work. >> we have another block to talk about this, so don't go away. stay right where you are. jobs are coming back, but they are not the jobs that built the middle class. the first quarter, the strong growing middle class has to be, as i said before, it has to be growing jobs that are durable. >> does the president have a way to fix it? humans. even when we cross our t's and dot our i's,
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on jobs but he acknowledges more needs to be done. the economy added 6.6 million jobs since the labor market hit bottom in february of 2010, but 9 million jobs were lost overall in the recession, and the jobs are not coming back, not all of them, the same quality of the jobs lost. today a third of u.s. workers make less than $24,000 a year, a third. and the issue of stagnant wages doesn't get that much attention, much play in washington, and one of the things i worry about is nobody really knows how to fix it. you look at knox college where the president was speaking, and the problem with losing good paying jobs started before this financial crisis, and we have not fixed it yet. >> yeah, that's true, and it used to be when productivity rose and so did wages and last year wages were the lowest percentage of the annual gross domestic product than on record, and the problem is that nobody really knows how to fix this
problem. i think this administration would tell you that a big part of the challenge is that health care costs now eat up much greater portions of everybody's wages and so more money goes into the health care talk instead of take home pay, and if they can bring down the cost of health care that will make you take home money, and a lot of people take issue -- >> this is something that millions of american families, it is their reality, and it has an affect across the economy, and we cannot be an economy where all these people are doing great and then the vast middle that doesn't have an out let or a place, and that's something that neither party has really been able to fix, kevin. >> right. but i disagree that we don't know how to do this. there is a big literature that i think sort of documents where the wage slowdown is coming
from, and if you need a lawn mower business, you need a faster law mower and better capital, and we are chasing the jobs and machines that could lift wages here in the u.s. overseas. i think the president correctly said he wants to do something about that, and people in the house said they want to do something about it, but they have not been able to get it done. if there is going to be hope for the middle class and if you want to have a middle class agenda, then the way to do it is to get people the machines they need and the tools they need so they can earn a higher wage and to do that is to have a corporate tax reform. >> i would agree with you that you need corporate tax reform, but i disagree that the focus of the president's speech was appealing to middle class voters, and you and i will disagree about that. and the may tag factory, knox tracked more than 400 of the workers that lost their jobs, and the workers are making 10 grand less now than when working
at may tag, and they left there and went to mexico and south korea, and then they moved again and went to china, and this is a story of how american workers were hurt and then hit by the financial crisis. what should we be doing about the focus on the quality of these jobs? >> exactly what the president said this past week, the president's tax reform plan cuts the manufacturing tax rate to 25%, and for one specific reason, to bring manufacturing jobs back to this country because those are better paying jobs, and the president's proposal on universal pre-k, and that is to create better skilled workers over time and those are better paying jobs, and infrastructure brings jobs back to the country because companies know they can ship their goods all oer the world, and number two, it pays higher paying jobs, and creates higher paying jobs. >> it's such well-worn territory. thank you so much for dropping by this weekend, and we will do
it again, very, very soon. there is a lot to talk about, agreement and disagreement, too. his ability to tackle paufrer tea in the african-american economy was cut short, and his assassination was nearly 50 years ago. with so much progress since the days of mlk, overwhelming racial economy and money is still the norm today, so is it fair to expect president obama to do more about it? matt's brakes didn't sound right... ...so i brought my car to mike at meineke...
the pocket book, and so in 2012 the net worth of white americans was more than $110,000, and that's almost 18 times the median net worth of african-americans, just shy of $6,000, and that gap grew significantly in the wake of the financial crisis. since president obama took office he has steered clear of these issues, rarely addressing topics like affirmative action, and racial profiling. and that changed following the protests over george zimmerman's acquittal in the shooting death of trayvon martin. >> understand the challenges that exist for african-american boys. the poverty and the dysfunction that we see in those communities can be traced to a very difficult history. >> former new york times colu
columnist is a distinguished reporter. 93% voted to keep president obama there in 2012. there is a question, this president has really steered clear of the color of money until do they want more from him on these issues? >> yeah. you know, i had extensive conversation was people across the country and working on the book. if you talk to african-americans privately, you will sense feelings of disappointment. but you will very seldom see them expressed publicly because people are torn on the one hand they would like to see the president do more. on the other hand, a lot of blacks are resentful of the way obama has been treated by the republicans, by sort of the racial tenor of the criticism of him and that sort of thing. black people are sort of in a push-pull situation. >> you can say the same thing about the lgbt community and the
president sort of delivered for them. you can say the same thing about people who wanted to get out of the wars in iraq and afghanistan and close guantanamo but still support this president. he's ride to be a president for all americans. even as he has turned -- policies tailored to specific groups should he have policies tailored to specifically african-american. he mentioned african-american boys. does he immediate to come out and do something? >> even before you get to the policies you have to address these issues. you have to talk about them. and -- you know, he is, obviously, the president of all americans but that means that if will is a problem over here with women, if there is a problem here with gays and problem with african-americans, you have to address those problems honestly and, you know, i hi vigorously. you know, too often when it comes to african-americans that hasn't really happened. it is not -- it is not just with this president but, i think, this president may even have
been more reluctant than some other democratic presidents with issues related to blacks, i think, in obama's case, i think that in obama's case, he feels that it is -- harmful to him politically to address the race issue very often at all. that will will be -- there will be -- will be pushed back from the white community, certain percentage of whites, whatever it might be, we'll say hey, he's there to give everything for the blacks or something along those lines. i think that's a mistake but that's the calculus he made. >> when you talk about -- the president talked about poverty. especially poverty for young black youth. 35% of blacks live in poverty in this country. compare that to 13% of whites. before this segment we posed the question -- is it fair to ask the first black american president to do more for black americans? sit fair to expect more from him on this? >> it is a question of what you
mean by to expect more. what i would expect from obama is not more nor less. what i would expect from him is to look at the issues as they are -- prevail right now and to address them. address them forthrightly. i don't think that president obama has. >> all right. thanks. nice to see you. a rare glimpse at modern life if you call it modern. inside super secretive north korea. >> these kids, we talked to some of them. they love things most children love. cartoons, roller blading. when you ask them what they want to be when they grow up, many of them say had want to be soldiers to protect their country. >> ivan watson with remarkable access to north korea's economy. right after this. with the spark miles card from capital one, bjorn earns unlimited rewards for his small business. take these bags to room 12 please. [ garth ] bjorn's small business earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth ] why settle for less?
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it is dark. in north korea, the country is dark. the secret repressive hermit kingdom. south of the border in south korea the average worker earns 19 times more. the heritage foundation calls north korea the most repressed economy. the vast majority of north korea's economic output comes from state-run industries and profits are used to support country's massive military. it is rare, incredibly rare, to get a glimpse inside of this country. a country that has walled itself off from the rest of the world. probably the closest you have ever been to a north korean export of a $100 bill. our ivan watson is there. as north korea marks the 60-year anniversary of the end of the korean war, its leaders are allowing carefully guided access to the most secretive regime on earth. >> welcome to the flower festival. a big pavilion devoted to would
flowers named after the founder of the democratic people's republic of korea and his son who also ruled this country until his death. now, these flowers are a big source of pride in this country. we are told that nearly every institution in north korea has a greenhouse devoted to growing these flowers and that's taking place in a country with very cold winters. north korea is very well known for its lavish patriotic displays. that's taking place in a country that's had a rather rough economic time over the course of the past 20 years. now, in our short very controlled time in pyongyang, we are definitely not seeing any of the signs of the terrible famine of the 1990s which killed hundreds of thousands of north koreans due to starvation. experts are telling us that they are seeing more cars on the roads than before and that people seem to have better clothes as well. and -- this is despite the fact that their strong kriping united
nations nationed sanction against north korea. it is very hard to get economic statistics on this country. system is very opaque here. we rely on figures coming from the central bank of south korea which says that the economy has, in fact, grown in 2011 and 2012. we also know that a big chunk of north korea's international trade comes through one center. an industriial park. they run factories there that use north korean labor. just last april, the north korean government shut down that industrial center because of a crisis in relations with south korea and much of the international community. and that just goes to show that even now economics takes a back seat to politics in north korea. ivan watson, cnn, pyongyang. coming up on a brand-new
"your money," the american energy boom. it was supposed to put money in your wallet. instead the money is going right out your car's tail pipe and escaping out the windows of your home. i will tell you why. . the u.s. prepares for its own tribute to the veterans of the forgotten war. we will take you live to the ceremonies. >> the behavior i have engaged in over many years is wrong. >> another day, another apology. but the san diego mayor facing sexual harassment charges refuses to step down. you will hear his solution and one of his