tv Real Money With Ali Velshi Al Jazeera December 11, 2013 7:00pm-7:31pm EST
>> this is al jazeera america live from new york city. i'm tony harris with a look at today's top stories. a house vote on a bipartisan budget bill could come in as early as tomorrow. president obama said he'll sign the spending plan as soon as it's on his desk. thousands waited in line to pay their respects to nelson mandela. his body will lie instate in pretoria until saturday before being taken to his home village on sunday to be buried. riot police with batons and bulldozers have withdrawn in the ukrainian capitol. secretary of state john kerry is saying that he's disgusted by
the crackdown. uruguay is the first country to legalize marijuana. the law goes into effect next year. and "time" magazine has named pope francis as it's person of the year. time magazine said that the pontiff made the greatest impact on the world, and the pope beat out edward snowden. if you would like to read about any of those stories head over to our website at www.aljazeera.com. www.aljazeera.com. "real money" with david schuster filling in for ali velshi coming up next. >> men, women, and the wage gap in america. new report finds historic strides but there is even more to it when you crunch the numbers. also the maximum push for minimum wage, $7.25 means life as a struggle.
we'll examine the ripple effect on the economy. plus an eye-opening first-hand look of what it means to be homeless in america. i'm in for ali velshi who is on assignment in south africa. and this is "real money." >> this is "real money" and you are the most important part of the show. join our live conversation for the next half hour on twitter @aj real money. there is good news for american women who are just starting their careers. the gender pay gap which has always favored men has narrowed to its closest level in history. the pew research center just finish ta tabulated the data, wn have seen their wages rise 93%
of men doing the same work. median hourly wages for all working women have increased 25% while they've actually decreased 4% for men. well for today's millennial generation women have reached parity in other ways as well. women aged 25 to 43 were in the labor force in 2012 compared to 70% of men in the same age group. yet, pew said there is no guarantee that today's young women will sustain their new parity with men in the coming years. part that have will be by choice. women today are still more likely to take time off from work when they get married or have children while for men the opposite is still true. they're more likely to keep working. and when you factor all of that in, the pay gap for all female workers aged 16 and older is 84%
of what men make. that's still a significant gap. women still have made progress closing it over the last three decades. stay on twitter and facebook we've been asking you what changes need to be made to close the pay gap in the workplace. :tell what's you think by tweeting us at @aj real money or @ali velshi. according to the pure report 49% at work with at least a bachelor's degree were women. joining us to talk to us with these numbers is linda barrington at the institute for compensation studies at cornell university, joining us in studio, that increase in terms of education, what impact has
that had? >> it's one of the most important things in terms of getting a job, keeping a job, keeping higher pay. the fact that women are now better educated, it's a huge advance. >> are there particular sectors in the economy where it remains closed or are there sectors where it's very wide. >> breaking it down by occupation because women still very much cluster into certain occupations and men into others. there are some very extremes. if you look at speech language pathologist 93% are women. pilots and flight engineers only 4% are. and the pay differences are between those jobs. what women choose to do is a big factor. >> but as far as within those jobs, pilots, a field dominated by women, are women making roughly the same as male pilots with the same age and experience?
>> they do better in stem focused occupation. if you look at computer and mathematical occupations there the gap is smaller than in education and library. but then there is some strange occupations where you realize it's not just about the gap. if you take social services the gap is only 93% for everyone of any age. for women. so that tends to be a lower paid occupation. we want to think both about the gap but also about the actual level of earnings that women make in these different jobs. >> given now the impact of having a kid, staying at home. that's a greater impact than it was before. that must an particular challenge for women who want to work but also want a family, and they're faced with eternal question, do you stay home or keep working? >> that again is where the type of job you're doing plays out different. science and technology are jobs that have a shorter shelf life. if you take time off those jobs it's hard for come back in.
your skills deteriorate faster. if you look at how long women are out of the workforce and the jobs they do. >> and i suppose for men who want to stay home and not work, they cantic hurt. >> again, it depends on the occupation. women are half the workforce but they're only a quarter of engineering and math jobs. the under representation really plays out. >> we appreciate it. if did you not own shares of facebook before you might now. the stock will be added to the popular s&p 500 index which is considered to be the best representation of the broader stock market. it means that facebook will also be added to many popular mutual funds and index funds held in retirement accounts. the move will happen after the close of trading december 20th. we'll take a look at the five states with the highest minimum wages, and does more pay help
the economy? we'll take a look at those who need a lift the most. a new report on america's home ohless. >> one of the common myths about homelessness is that a homeless person is typically sleeping under a bridge or on the street or suffering from mental illness. homelessness is about women with children who have no place to go. >> what it's really like to be homeless in america. that story and more as real money continues. we saw rain showers and a mix of
precip just a little bit up here towards the north. temperatures for dallas at about 42. san antonio at 55. for houston, well, you are going to be seeing rain by the time we end the week. 59 degrees there. that will will last one day. your weekend should look better with a high of 63. over here towards the southeast, some rain showers pushing through orlando right now. atlanta is going to be about 56. an american auto maker making history. the newer ground general motor is making as it names its latest ceo. >> by next year 2012 states will have a higher minimum wage than the national level of $7.25 an hour.
as the debate about raising the federal minimum kicks into high gear we decided to take a look at what higher wang versus meant for the local economies in some states, states where employers already have to pay more than the federal law requires. stacey tisdale has the story. >> reporter: when you sigh images like these it's easy to understand the emotional argument for raising minimum wage but many researchers say the link between higher minimum wage and economic stability is overblown. >> states with higher minimum wage tended to have lower job growth and lower levels of job creation by expanding firms. >> reporter: experts point out the number of people receiving minimum wage could not have a big impact on the state or national level. >> very few people are paid the minimum wage. 3% of the workforce. the number of dollars involved
are very small. most people who are paid minimum wage are young. >> reporter: the five states with the highest minimum wage, washington, known for its strong union activity tops the list at $9.19 an hour. number two, oregon at $8.95 where one in five households rely on food stamps. the third highest in the country. vermont rvermont recalculates cf living every month. and illinois minimum wage is $8.25 an hour but the strong union states will has one of the highest unemployment rates in the country. how much of an impact does the higher minimum wage have on a state's economy. in oregon, a planned
$0.15 increase on minimum wage will put an extra $234 a year in the pockets of employees working 30 hours a week. >> i don't see how that very small amount of money for a small proportion of the workforce could possibly spark economic growth. those funds are coming from someone else who now no longer has that money to spend. while the majority of minimum wage earners are young, many are struggle. many minority groups disproportionately depend on minimum wage. many mothers trying to raise a family on $15,000. but experts say there are better options out there. >> there are options like the earned income tax credit which maxed out for a family with children that are much more powerful at helping people get out of poverty. they're targeted at low-income families rather than like the minimum wage a very blunt instrument that actually ends up
transferring more funds to the teenage children of upper middle class families than to the working poor. >> reporter: with the emotion surrounding raising minimum wage that debate will likely continue to be the focus of improving the economy at the state and federal level. stacey tisdale, al jazeera america new york. >> according to the labor commissioner, next year's $0.15 increase, brad, what is the impact of raising the minimum wage like it has been done in oregon. >> we have ten years of experience of tying our minimum wage to the consumer prize index. what that results in starting in january when we have the modest increase of $0.15 an hour that will generate $20 million in
wages to minimum wage workers that will be reinvested in local economies as they purchase food and gasoline and-- >> but brad, if that's the case, why do it by $0.15? why not go $0.50 if it's such a great idea. >> well, every community has to make their own decision of what that starting number is, but oregon tied it to the increases in the consumer price index. what that does is gives predictability in the system. workers know as the price of goods increases they'll keep pace with that. and businesses who have to depend on what their next year's budget is going to be can welcome a modest increase based on what the consumer index will go up by. >> but what about the earned income tax to provide stability for businesses.
>> earned income tax credit is a fine thing, but if you're a minimum wage family you're not worried what the calculation is going to be when you file your taxes at the end of year. you want to put food on the table and a roof over your kids' head. they're not socking away that $0.15 in 401ks and mutual funds. that's necessary in their life and they need it now. >> any businesses who have decided not to come to oregon because the minimum wage is as it has been. >> our experience has been it's not only good for our workers but for our businesses, too. i talk to businesses regularly. they understand that their lifeblood is consumer purchasing power. that's where their concern is. >> brad avakian commissioner of oregon bureau of labor.
we appreciate it. fast food workers rallied around the country demanding higher wages. he earlier this year lawmakers in the hoosier state rejected a bill to raise minimum wage above the federal level of $7.25 an hour. afraid if the minimum wage is raised to $15 an hour, he'll have to dismiss workers and raise food prices. mr. curry joins us from carmel, indiana. why not raise prices of those tasty things like the peanut buster parfait, you can pay people more and help the local economy. >> the impact it's going to have on our business will the consumer be willing to pay that price? will he be willing to pay $6 for a peanut burster parfait or
small blizzard. >> never mind fans like me from indiana, your sense is that most of your customers will not be willing to pay those higher prices. >> we may offer a 10% discount just because you're from indiana. >> what percentage of your workers are simply saying, like i was once upon a time kids in the summertime who don't care what the wages are, they just simply want a summertime job versus people who depend on the minimum wage to pay rent, pay all those services they need in life? >> i really honestly in this store i don't have anybody that is dependent upon his living for what he earns from here. so the minimum wage does not really matter. these are a lot of my employees, especially the seasonal employees are high school students who are simply want a job just to pay for their gas
and running around. it really is a good starting discipline for them to get into the workforce. >> but can you understand why it might be better for your business and for dairy queen to employ people who really do depend on the wages to sustain their family versus younger kids, indiana's youth who may not be with you next year. >> funny enough, we have people who have been with us for as long as 17 and 18 years, and they keep coming back. they want to--as the seasons change, of course, they are not earning the minimum wage, but they're not dependent on their income here for a living. as their main source of income for living. >> mr. khoury, if it could be proven to you that raising prices at your dairy queen, that your customers would be fine
with that, would you be willing to pay your employees $10 an hour? >> you know, we don't make the rules. we don't make the laws. we wait for the government to enact laws, and we will implement them. if the state of indiana decides that the minimum wage should be $10 an hour, we're willing to pay it. >> what will that do in terms of your prices. >> of course that's going to effect the prices and all these additional costs will be passed on to the consumer. somebody has to pay for these additional costs. it will be the consumer that buys the peanut burster parfait. >> count me in especially in indiana who will pay an extra dollar for the peanut buster parfait. many have children, jobs,
but still no place to call their home. >> i became homeless in may of 2008. i received a job, found out i was pregnant, for medical reasons i had to quit the job which put me in the cycle of unemployment. >> what it's really like to be homeless in america. and later we'll shift gears. the dutch company that wants to colonize the planet mars coming up on "real money." tñ
>> america's economy may be on the mend, but more americans are being left behind. the u.s. conference of mayors is out tonight with its annual report on hunger and hopelessness. it finds the ranks of the homeless has risen by 4% in 25 cities surveyed. that's a measure of homeless individuals and families. but 22% of homeless people who need assistance in those cities did not get it this past year. there are many shades of homelessness in america. and a quarter of homeless in are children. many homeless actually have jobs. for many changing the cycle is not easy. we'll go to julia coolly, a teacher's assistant in atlanta who has a four-year-old son. >> you want your sweater? >> i wake up every morning at
5:00. right now it's 10 to 6:00. my bus should be coming up on the hill. i commute a total of 5 hours every day. i am technically homeless because i'm place to place, and i don't have the stability. i take turns. i spend time with my partners, and i spent time with my grand pargrandparents. i try to stay stable. >> one of the common myths will homelessness is that a homeless person is typically sleeping under a bridge or suffering from a mental illness. the reality is homelessness is about women with children who have no place to go. >> i haven't eat my vegetables. >> today is a big day. i'm going to pick up my new keys to my knew place. my two-room apartment. today is a huge day.
>> wait on me, buddy. >> yule i can'julia came to ouro participate in our training program. >> it was just natural for me. i love singing the songs. i love playing with the kids and actually have something to offer. >> our house provides early education and family support services for families experiencing homelessness. >> i became homeless in may of 2008. i received a job found out i was pregnant. for medical reasons i had to quit that job which put me in the cycle of unemployment. my mom was just like, you know, we think you'll be better in a shelter. i'm like, how can a mom make that--how can a mom have that reasoning, that logic? in october of 2011, just to think about it, it was the first time i received money for working on my own.
wow. three years. no job. >> for many of the families that we serve when they come in their lives are, as you can imagine, they're like a deck of cards. they're stacking their successes carefully upon one another. but like a deck of cards if you remove the wrong card it can all come tumbling down. >> right now i'm working towards financial stability to pay my bills, and to have enough money to take my son to a movie, you know. >> i love you, have the best day. >> it will be good for me and my son to be in our own space, our own environment. today is just so important to me because come monday he will be in one place. his toys will be in one place. he won't have to worry about sharing a bed with somebody. let's go get those keys. >> what happened? >> no key. i got to get georgia power situated and the gas company situated. >> things that happened to julia
are unfortunately partnershipcal when it comes to families mover forward with their lives. the reason is there are certain requirements that every agency has to have. >> i wanted to feel the keys in my hand. i wanted to be able to go to my son and say, luke look, buddy, t my keys. but a happy meal will do. he'll be all right. >> several months later julia has applied for a new position at our house which she hopes will bring in extra money. she still however has not gotten in her own apartment. at $9.15 she said she now realizes she doesn't make enough to pay rent and make ends meet. to hear more of julia's story in her own words go to our website at www.aljazeera.com/real money. don't forget our question for the day. what changes need to be made in the gender gap. or yotweet us or leave a comment
our facebook page. to read more you can go to www.aljazeera.com/real money. a dutch company announced after plans of putting human beings on mars, 200 people signed up. they hope to send a robotic landing on mars four years from now. and if all goes well travel to space will begin in 2025. the weed out process will be intense because whoever travels to mars will never be able to get back to earth. getting to the planet is feasible. coming home is not. here is another challenge. nothing has been invented to protect human beings from deadly radiation in space. however a lot of people obviously don't care. it's easy to ridicule such folks, and i'm not sure that the
mars one company will be able to bankroll this project as planned by selling reality television shows. the real housewives of mars, i don't think so. but still the human conditions usually benefits when at least some of us dream big. so hats off to mars one and all who have sent in astronaut applications. good luck, and god speed. that's our show for today. the research that has nordstrom taking notes. i'm david shuster in for ali velshi. thanks for joining us.