tv Real Money With Ali Velshi Al Jazeera September 24, 2013 2:30am-3:01am EDT
i'll see you again at 4am evidenterb. eastern. ♪ what is this bottle of wine and the current u.s. budget have in common? i'll tell you. they are young, healthy, and don't have health insurance. obamacare relies on so-called young invincibles. plus more companies are rewarding employees with bonuses, but i'll tell you why that may be a bad thing. i'm ali velshi and this is "real money." ♪ this is "real money." you are the most important part of the show, so join our live conversation for the next half
hour by using the hashtag ajrealmoney on twitter. this is a bottle of wine from 2009, which i am told was a good year for wine. it was a good year for the federal budget. it was the last year a federal budget was passed by congress and signed into law. both this wine and the budget are four years old. you'll hear folks say the u.s. doesn't have a budget. that's not true. congress has passed one extension after another. the current extension is set to expire on october 1st. without a budget the government could shut down, and unlike a good wine, the federal budget does not get better with age. it gets worse because it uses old priorities and doesn't deal with new problems. passing a budget is the one thing that congress actually has to do. a budget is the manifestation of the government's priorities. everything else they do is optional.
a budget lays out where your tax dollars get spent. under normal circumstances the president submits a budget proposal to congress in february. based on that something called a budget resolution is drafted and deliberations between parties take place, amendments are made, committees, a final resolution is passed, wait for it, but april 15th. in fairness it often takes a lot longer than that. but it is supposed to be done well before october. if lawmakers can't pass a new resolution, typically they extend the current budget. why are we in this mess? knowing how the process has broken, president obama didn't meet his budget proposal deadlines for two years in a row. and even if he had, the republicans made it clear they would vote down any budget he did submit without even considering it. instead republicans have been proportion their own budgets put together by wisconsin
representative and formal vice presidential candidate, paul ryan. like the president's budget that won't pass a gop house, the republican's budget won't get past the democratic controlled house. those are not the odds from vegas from but guggenheim partners. joining us now is guggenheim's washington analyst, chris krueger. thank you for joining us. let's start with the budget problems. this is unheard of. there's been dysfunction in congress for a long time, but it is unheard of that this is really their primary responsibility. how do you explain the fact that we have not had a budget that has been passed by congress and signed into law since 2009?
>> this is sort of the new normal, right. you have a house of representatives run by republicans. democrats in the senate and president obama obviously in the white house, and sort of to bring it full circle, the process is basically corked. [ laughter ] >> 40% likelihood of a shutdown. you guys have come up with that. politically this would be disastrous, we're probably at an all-time low for how people feel about congress and their representatives. why are they doing this? >> it's more of a proxy battle to wage elections, politics, et cetera, and what the republicans in congress are doing now is waging a budget battle over the president's health care law, obamacare which launches on the exchanges october 1st. so there is a big chunk of the congressional wing of the
republican party that sees a government shutdown as a real negative. they remember the fy '90 shutdown between gingrich and clinton. so they are pushing for in eight days the government will stay open, they will release that hostage, but take another hostage with the debt ceiling, where they believe they have greater leverage. >> is that true? we saw the damage do the u.s. credit rating the last time we challenged the debt ceiling issue. are we in a position to take that kind of risk? >> whether or not we are, that is the game plan on capitol hill for congressional republicans. and coming back to the showdown we near right now. the government shutdown is very much the undercard in this.
it would likely only be for 24 to 48 hours. the biggest deal is the debt ceiling and whether or not the scenarios. >> chris good to see you. thank you so much. >> thank you. small business owners across the u.s. are bracing for the government shutdown, including this man, he serves his food from two trucks around the capitol one in washington and one in arlington, virginia. federal workers account for a third of his business. doug good to see you, federal workers are about a third of your clientele, but if there is a shutdown and it affects contractors to the government business? >> absolutely. because of the high percentage of federal workers in d.c., traditionally a government
shutdown would have a huge devastating impact on small businesses, in addition to obviously the workers that work for those small businesses. >> all right. there's another complicating factor. we just heard chris say that it probably wouldn't last long if there was a shutdown, but there is a particular separate issue for you and that is permitting. >> yes, because the federal government approves the d.c. budget which is going through a process right now, and d.c. agencies are the ones that regulate our business in particular, the department of consumer and regulatory affairs, if that were to shutdown, we would not be able to get permits, new food trucks would not be able to operate, and would have a trickle down effect if you will. >> you have trucks that have
wheels, you could in theory go somewhere else that is less shutdown. >> that's true. one thing that is interesting to note is food trucks have different business models, and some trucks operate only within d.c. and only within a few locations in dc. the extent to which those locations are heavily populated by federal workers, for example, the state department, the shutdown there would have a devastating effect on those trucks. our model is a little bit different we have the flexibility to move to other jurisdictions especially if it is just a short shutdown probably would not have that big ours. >> you started here in brooklyn -- >> next time bring me in. >> well, you have got a truck. >> yes. >> you started in brooklyn, tell me how business is going generally for you. >> business is still pretty good.
back when we started in 2010, there were only about ten trucks on the streets in d.c., and now there are over 250 that are licensed, so competition is pretty stiff. we were fortunate recently to get new regulations put in place that are going to, i think, manage the situation here in d.c., and make it a little bit more effective for new entrants and existing trucks to operate more smoothly in the city. >> and you are the chairman of that association, and you have shared what a lot of the concerns will be. doug good luck, i'm going to find your truck and get one of your sandwiches next time i'm around you. >> thank you, ali. all right. the success on obamacare hinges on nearly 3 million young people signing up. but will they? >> the financial penalty will at
least motivate me to look deeper and harder for a plan. >> we'll hear from the so-called on inside story, we bring together unexpected voices closest to the story, invite hard-hitting debate and desenting views and always explore issues relevant to you. on august 20th, al jazeera america introduced a new voice in journalism. >> good evening everyone, welcome to al jazeera. >> usa today says: >> ...writes the columbia journalism review. and the daily beast says: >> quality journalists once again on the air is a beautiful thing to behold.
♪ a week from tuesday, obamacare health insurance exchanges open for business. the obama administration expects 7 million people to enroll and hopes that 2.7 million of them will be young and healthy. the system needs these young invincibles to sign up in order to keep costs down. but if of these folks are not convinced that buying insurance makes financial sense for them, putting the success of obamacare at risk. >> reporter: if obamacare is going to work, these are the people that are going to have to make it happen, the young, healthy, and uninsured, also known as the young invincibles. getting them to buy into the system is key to offsetting the costs of the sick and old. >> my money
usually goes towards rent and bills or something else, and i guess i'm naive that enough that i don't think i need it yet. >> reporter: with premium price tags in the thousands, the big worry is that many of these young invincibles won't buy in. >> people don't know about it. i didn't really know about it. i -- i can tell you people i work with, friends of mine. they don't really know. >> reporter: polls show most young people think that coverage is worth the cost. is a small fine enough to compel coverage. >> the financial penalty will at least motivate me to look harder. but i don't think that it's a motivating factor. >> reporter: josh can expect to
shell out an estimated $3,000 for a plan. that's almost seven times the amount in penalty he'll pay. >> you have got market that is screwed if they don't buy in. >> reporter: but in 2005 josh learned the hard way that there can be real costs to living without insurance. after weeks of rehab and three steel pins in his wrist he still owes tens of thousands of dollars in unpaid medical bills, and yet he still isn't sure he will sign up. >> reporter: even after that you didn't get health insurance? >> no. as a 28 year old, you are not thinking about health insurance. >> reporter: for many the reality of rent and student
loans could overshadow the risks. these young invincibles look at their options and decide they are unaffordable, obamacare could stumble. we have been asking you, . . . by the way, aca is the full name, it's actually the patient protection and affordable care act. tell me what you think. those young invincibles that david told us about, will they or won't they sign up for obamacare. julie is with a human resources consulting firm. julie, you say do not
underestimate the young. >> i do. i think there is some portion of this population that will see the intrinsic value in purchasing health care, as well as abiding by the rules. i wouldn't also underestimate their need for services. there is a perception that this is a young healthy population, but these are the people that use maternity services and the accident coverage. >> i would assume there's nobody in the country saying i should do this because the success of it. >> i don't think so. i think it's about the value to the individual. and the recognition that there is a need here, if not now in the near future. >> do you not find the older you, the more conscious you are of health care spending? wouldn't it be likely the younger invincibles just don't
think about this as much. >> i think that's true, and there are a number of influencers around them. approach. >> and that's part of why we're having these discussions so people will sit around with their friends and talk about it. enough? >> if they don't get enough people -- >> yeah, they want about 2.7 million young ins -- this occurs all across health care? >> it does. and there is forecasts about the costs for the different age groups, but there are other things happening at the same time to help bring down the cost of care. so it is not all riding on shifting the cost across the age groups. >> when a company negotiates for health care coverage for its
employees, the ininsurer wants to know. >> absolutely. and it's spread across a whole age band, demographics, et cetera. >> it started october 1st, but decision. >> right. >> do you expect as we get closer and people have had more interaction with other people, it will be back end loaded? >> i do. and there's quite a few grassroots groups out there. the increase in income for age 26, there are more than 3 million young adults who have enrolled. >> so you are not the nay-sayer. there are a whole bunch of people saying the kids aren't
going to do it, and you are saying trust the kids. thank you for being here. >> thank you for having me. more companies are reward top-performing workers by giving them bonuses. >> we now find bonuses all the way down to the person sweeping the factory floor. >> we'll explain that's one reason why middle class wages
>> kenya says it's seized control of a shopping mall from gunmen, 68 people have been killed. ♪ ♪ >> gunfire has been heard as special forces make a sweep for the last of the fighters. hello, i am elizabeth and this is al jazerra live from doha and nairobi. also in this program, a court in egypt bans all activities by the muslim brotherhood. the group says it will appeal. iran's nuclear program back outta general damn the u.s. and iran are set for the highest talks in yea