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tv   Real Money With Ali Velshi  Al Jazeera  September 19, 2014 5:00am-6:01am EDT

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psychiatric disorders. that's coming up this weekend. >> if you would like to comment on any stories you have seen here, you can log on to our website. good night, we will have more of america tonight, america sticking its neck out for ukraine against russia, what petro porashenko wants from the united states and what he could get. the scottish vote for independence could be a disaster despite the outcome. and the price tag for alley boba's stock offer, and a look at the tycoon who started it. i'm ali velshi, and this is
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"real money". this is "real money", you are the most important part of the show. tell me what's on your find. hit me up on facebook. ukranian president petro porashenko went to washington to ask for weapons and other lethal military assistance. the billionaire businessman told a joint session of congress that nonlethal aid is important, but "one cannot win the war with blankets", that's a great line. petro porashenko cap ittual lated to russia by agreeing to delay the tradesdeal with the european union. petro porashenko got a lot of applause and standing ovations from lawmakers but is not getting the lethal aid that he wants from america. here is what petro porashenko got. a
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photoio op with president obama -- photo owe op with president obama. the picket of petro porashenko sitting in the oval office will be worth 1,000 words in english and russia, but the question is what they say. the obvious answer is - not very far. sure, the u.s. today plempinged 46 million in nonlethal security aid for radar equipment to detect incoming artillery fire and humanitarian aid. petro porashenko is not getting heavy weapons for his army or support from n.a.t.o. forces. you can't help imagine him thinking the west had his back, as n.a.t.o. invited him to a meeting, as political scientist ian bremer said the outcome of
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the european crisis is not one iota important to the united states as it is to russia. bremer made a comparison to the lip service and photoop in supporting the georgian president, seep with gornal brush. the senator john mccain said "we are all georgians", after rush ainvaded georgia in a conflict provoked. the u.s. did not come to georgia's aid and russia upd and controlled the picture. like ukraine, georgia is not in n.a.t.o., as much as it would like to be. perhaps petro porashenko needs to vote up on his lessons. ukraine's president would say that america is not standing with them, according to nick in the bloomberg washington bureau.
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i have to wonder, we make these leaders think that we are behind them. the invitation to the n.a.t.o. summit in whales gives that impression. go for it, be an agitator, but we are not going to give you what we need to do it. >> the can't say the united states is not behind ukraine. he addressed a joint meeting of congress. both clapped. he got to go to the white house, and had a one on one meeting with president obama. on the other side of that, you are correct. it is a great line. you can't win a war with blanket. white house spokesman, and the president, was very clear that the united states believes there was a diplomatic salesian to what is happening in ukraine, ukraine. >> all the stuff you mentioned he got. other than the money. is cheap. you can get someone to congress.
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you can get them into the white house. the picture is worth more than 1,000 words in russian and english, is it? >> they are in a tough place. the ukraine borders russia. imagine the mexican president doing the same thing. i think the united states is in a tough position as far as arming ukranian forces. does that mean na the united states is fighting a war with russia, and i don't think the president has any trt in getting involved in. it's a standard line. instead of turning to arm they turn to sanctions that ratchets up seven or eight times. >> there's not unanimity. it has been called for the u.s. to provide ain tank weapons. the president doesn't seem to want to do this.
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it occurs to me that nobody - they have enough on their plate, they are worried about what to do with i.s.i.l., they are not going further with this. >> i agree with that. in congress there's a lot of support for ukraine. there was a stepped up sanctions bill. it could pass the senate that evening. it calls for more military assistance. this is something the president could veto, i don't think the president is interested in antagonising russia when they view it as something that can be solved through sanctions. will we go with what the sourpt is saying, stepped up sanctions, if nothing else happens, if we maintain the status quo, will we see the pressure for sanctions to pull back. >> i don't think the status quo would leave to less sanctions. i run a breaking hold desk.
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ukraine hasn't been on my desk, russia has. unless putin takes steps to de-escalate that, you will not see a lessoning of sanctions in the cards. >> good to talk to you. thank you for being with us. nicholas johnson deputy editor the bloom burgs. >> if boots are put on the ground. a lot will be private citizens. and a man rejected 10 times by harvard gets the last laugh. that's the real story. keep it here. >> a new episode of the ground breaking series, edge of eighteen growing up fast... >> my quest is to find me, and me is not here... >> fighting for a better future >> if you gonna go to college, you gonna end up dead on the streets... >> life changing moments >> i had never been bullied, everyone hates me... >> from oscar winning director, alex gibney, a hard hitting look
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video released by islamic state of iraq and levant. he is shown wearing an orange jump suit and reading from a script. it's a departure for i.s.i.l., which outraged the world with the beheading of three others. chuck hagel is back on capitol hill, telling the house armed services committee na the u.s. is ready to strike i.s.i.l. in syria. mike viqueira has the latest. >> that's right. chuck hagel recounting the president's meeting, going to tampa, the air force base, the home in charge of operations, the president signed off on what the military is developing, going after oil christopher gibson, command and control -- i.s.i.l., command and control. the senate is passing, on its way to the president, the measure, the authorisation that the president needed. he doesn't need it further authoritiesation for the larger
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air strikes, but if he offers overt aid to the syrian rebels, they'll be training in saudi territory. that is so interesting. you listen to the debate over the course of the afternoon, everyone is standing up and raising objections to what the president wants to do. many think he's going too far. a lot like john mccain says he's not going far enough, here is comes, the measure is passed, and here it comms to the president. a major hurdle here, a lot of skepticism, and some outside congress, general james maddize in charge for a long time says tell the enemy beforehand that we will not send in ground troops, a huge mistake. >> president obama promises the war against i.s.i.l. will not involve u.s. boots on the ground. what about the private military forces. in iraq and afghanistan contractors took on everything
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from security to interrogation to food services. there are many contractors in iraq outnumbering the troops, it's been dubbed the first contractors war. private contractors can be a way to build military on a moment's notice. that convenience has come at the cost of billions in waste, fraud and abuse. >> reporter: over its past decade in iraq and afghanistan, the united states government spend $200 million on private military contractors. with the war against i.s.i.l. ramping up, the pentagon is reaching out to its stable of contractors. in july the defense department issued: lion lip the second request sought: >> the reality for the united states, and many countries
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around the world, is that the military simply can't function without the support of arms bearing contractors specifically and broader contractors generally. 90% of jobs outsource the contractors. everything were construction and meal service to logistics planning. some 10% of the private contractors are guns for higher. these are private security firms like black water consulting group, hired by the state or defence department to guard key personal, and these firms often have been at the center of contractor fraud and abuse scandals. the private firm, caci international is accused of torturing prisoners at baghdad's abu ghraib prison. in 2006 black water guards opened fire killing 17 iraqis, in 2009, the private security
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team guarding the u.s. embassy in kabul was called out for prostitutes. >> the oversight responsibility that the government has when engaging in this outsourcing is challenging, something that the united states government did not do a great job on during iraq activity. >> reporter: according to war time contracting, waste and fraud stemming from poor oversight of private firms cost the u.s. $60 billion. aside from the money lost, a 2013 congressional research report added that left unsupervised, contractors can: now, as america moves to take on i.s.i.l. in iraq and syria private contractors will undoubtedly play a significant role in the
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region. can the military bosses keep them under control. >> everyone nose they need to do more. the government recognises this and they were doing a better job. it will be a challenge. it's important to note that all three private contracting firstly involved in the scandals mentioned have been called to answer for their part. caci international denies their employees were involved in the torture of prisoners. a jury will decide. in june a judge cleared the way for the accused to stand trial. four black water guards are awaiting a verdict in a murder and manslaughter trial resulting in a 2007 matter. the state department extended the contract for armour group, the company responsible for the guards. doug brooks is the
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president-emeritus of the international stability company. and says accountability is key when outsourcing military job to private employees, but in a war zone perfect lentibility is -- accountability is not possible. >> it may be difficult. if it's tough anywhere, but we are demanding it of our military. it doesn't always come, but there's outrage and congressional hearings when we get those kind of things from the military. why can't we provide the same things from the contractors, many of whom are military. >> i think we do for the most part. essentially when we hire a contractor, we shouldn't hire idiots, but - make sure that the people they it hire are the ones we want carrying out our policy. >> who are the kinds of people.
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we talk about the guns for hire, and i assume all cases are former military, all the way from cooks to manual workers. >> the important thing to remember, contractors generally are local nationals. when you do the big construction and logistics, you hire nationals, putting them to working training them on skills. it's generally better for the local population when you use a contracting community to do this. you'll have western managers. and part of their role is making sure the companies - what is required under the contracts and so on. one thing the companies can't control, however, when you talk about the waste and abuses is the waste. that is 90% of the problem. when you have multiple organizations, countries involved in the reconstruction efforts, department of defense . department of state - there's duplication
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services, there's not another cooperation. we need to see the coordination within the government is there as well. >> what is the issue with regulation. >> there's a lot of regulation. you would be surprised. when you look at the contracts, they can be scores of pages, hundreds of pages. what happens to a paperclip after you buy it. there's the far regulation, federal acquisition regulations, several pages of interesting reading. the federal act - tonnes of . >> the one i'm talking about is what we were speaking about, regulation of behaviour. there's not military employees where there's too much regulation. that doesn't apply, these are not military employees. >> there are different laws.
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there's the act that ensures that any contractor working for the military, anyone we hire, a third party national or an american can be brought back to the united states and put on trial for a felony level crime. it's happened. from what we heard from the department of justice, there has been well over 60 cases alone. there are other means to hold contractors accountable and in the company level cans thing the contract is a good way to make lines. >> let's talk about the fight against i.s.i.l., what contractors. >> obviously this will be smaller for the industry. it's been shrinking a bit since the big conflicts. you'll see a lot of logistics contract, support. if the u.s. military has people
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or facilities on the ground in northern iraq. they'll be supported by third country nationals or local nationals who will feed them, provide security for their bases. there'll be some business, nothing like it was 10 years business. >> doug brooks is president emeritus of the international stability association. >> what started in a former english teacher's apartment is about to become one of the biggest i po is. alibaba rising to the top. and the fall out from scotland trying to break free from the uk. >> on tech know, fire, devastating and out of control >> what's at stake here? >> there's approximately 360 homes... >> but now experts say they can predict how a blaze might spread >> this has been in a fire,
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>> weekday mornings on al jazeera america >> we do have breaking news this morning... >> start your day with in depth coverage from around the world. first hand reporting from across the country and real news keeping you up to date. the big stories of the day, from around the world... >> these people need help, this is were the worst of the attack took place... >> and throughout the morning, get a global perspective on the news... >> the life of doha... >> this is the international news hour... >> an informed look on the night's events, a smarter start to your day. mornings on al jazeera america the wait is over, alibaba priced its chairs at the top of
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the price range $68 per share, making this the biggest offering ever anywhere. the deal will give the company a value of $168 million, shares will trade tomorrow at the stock change under the symbol baba. the question is whether they'll live up to the hype. it's the biggest ipo that americans have not heard of. it runs sites to reach hundreds of millions of customers, handling more transactions than amazon and ebay. the man that owns 9%, and insisted it goes public in new york is jack marr, a chinese business tycoon, an enning ma. mary snow has his story. >> reporter: he may seem an unlikely business tycoon, jack marr, a former english teacher who describes himself as not a
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tech guys, skyrocketed to status as founder of alibaba. he dresses as a rock store. he is performing for employees, shown in a documentary, following his path to fortune, founding a company with friends in his apartment, scraping together $60,000. . >> we will make it because we are young, and we never, never give up. >> marr's perseverance is a trademark. his personal setbacks are legendary. being rejected 10 times by harvard is one of them, and brushed aside skeptics raising ebay. >> we tried. we said if ebay are the sharks, we are the crocodiles in the river. never fight in the ocean, let's fight in the river. >> ebay closed its china site in 2006. >> if you think about it, it
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takes a special kipped of person and personality to not only build the company, but to have the long-term vision and patience to build the company like alley boba over many, many years. >> in china, with the likes of steve jobs and bill gates, estimates on personal fortune varied. the net worth put at $11 billion. marr is no longer alibaba's c.e.o. he retired chairman. it doesn't matter whether the people choose yes or no in scotland. the economic damage has been done. i'm talking to the man who says that coming up, plus, how a car can change manufacturing as we know it.
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the world. giving you a real global perspective like no other can. real reporting from around the world. this is what we do. al jazeera america. the votes are in, scots went to the polls today to vote on independence from britain. with the vote expected to be very close, campaigners were knocking on doors trying to get scots to the polls. julie mcdonald is in edden borough. >> reporter: ghostly and almost hidden from view as the nation decides, a gray day with a very clear purpose, and a passionate mood. heading to vote millions of scots are turning out to decide the future of their nation. they came with neighbors, family, and with determination
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to mark their ballots. we now know 90% of the postal votes have returned their ballots. that gives us the first clue as to the level of turnout we can expect. here at the largest polling station, they are already calling the turnout here astronomical. this surge of voters is happening across the country. >> i think that's really important as a signal to the world that we can make really important decisions about the way the u.k. is driven and whether scotland is a separate nation peacefully. i think today i heard it is going to be the biggest turnout of any poll in the u.k. for almost 100 years. >> this is possibly the first time i felt my vote could actually make a major difference. not just a minor, little bit of political shifting, but actual significant change. >> i think the
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stress has been building up, it's just everything is so heightened on television, and emotions are high because it's an important decision, and we'll see what happens. >> reporter: the first minister of scotland cast his vote in northeastern scotland, while the leader of the no campaign voted in edemburough, while the scots make up their mind about the future of their country. >> i want to turn to the owner of a pub where clientele is overwhelmingly in favor of independence. he told me a week ago he was undecided. well, he is not undecided anymore. andrew which way did you vote? >> i voted no today. >> and you are the owner of a pub.
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last time you and i talked that is primarily patronized by people who voted yes. >> oh, yes, there are still yes stickers being put on my car, leaf lets and flyers being handed out left right and center. all in good fun. but they have their political desires for today. they know what they want to do, but unfortunately there was nothing that really convinced me to change my mind. >> last time i talked to you, i think you were leaning no, but you weren't unite sure. why in the end were you not convinced? >> i don't think anybody put forward an argument that really changed my mind. there is still a lot of questions. i will still concede that the better together campaign was particularly badly run. it didn't really give me a message i wanted to focus on or actually made me feel like i wanted to vote for them, but i
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think it came down to in the end less better together, but more a case of worse apart if you understand. >> right. so the bar was higher to cause you to vote for independence than it would have been to vote to stay part of britain, but the campaigns weren't fantastic for you either way. >> not really. i said before, the better together womaned a vert as it has been known as become an internet vote. people in the pub actually -- people who move in political circles gave me good arguments. told me -- gave me information, so it's not as many i'm uneducated, it just didn't sway me in the end. >> is this the only topic of conversation in scotland today?
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>> there is a lot actually. voter registration is up to 93 or 94%. i have heard from friends of mine who have been queueing to cast their vote today. because a they are only letting so many people in to the polling boths. there were talks they were going to close them early, however, all polling booths are going to stay open until 10:00, so you can basically vote at the closest area too you. >> good lord. okay. that's a good sign. regardless of the outcome this has so politicized folks that there is probably a good outcome coming somehow for scotland. >> yes, to get that many people registered and interested in politic is a massive leap forward. if you look at the
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recent european elections, only polled something like 40%. people feel like they are actually making a difference today. whereas in the past, it has been i'll vote for this party because i feel they will do something that i'm interested in, or they can better representment me than this party. today is very much about yes, we can do better, or no, we want things to stay the way they are. >> how are things at the pub, by the way? are you staying open all night? >> no, there was no late licenses granted. but i am going in by 9:00 tomorrow morning, by which point we should have a vert. so i'm going to take down a bottle of my finist whiskey from
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my personal collection. i'm not hard stance no person. if we're independent tomorrow, i'm very happy for that, if for. >> i bet your finest scotch is one of the best in the world. my best to you and your fellow countrymen regardless of the outcome. >> thanks so much. a disaster is how ken rowgoff describes the fact that scotland is even voting on independence today. ken served as the chief an cyst of the international monastery - monastery fund from 2001 to 2003. ken, i have known you for a long time, i have virtually never heard you refer to anything as a disaster. why such strong feelings?
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this >> i'm not sure exactly the context of that vote, i do think the idea that you can break up a 300--year-old union with a 51% vote, is an oddity, but anyway that's what they have decided to do, and the people of scotland are voting. it is taking a big risk. it hopefully will work out well if the vote takes place and it is a yes and they go for independence, then of course they need to run things the best way they can, negotiate a reasonable peaceful divorce agreement with the rest of the u.k., not easy, but it raises a lot of risk, and in a world where so many smaller countries are looking into a successful stable currency union, it is really something to be pulling out of it.
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>> let's talk about something you warn about, and that is a brain drain. explain that. >> i grew up in rochester, new york, across the border from canada, and i watched what happened to quebec when they had a near miss on this. they consider a vote for independence. they voted no. but after that nobody trusted that it wouldn't happen again. so quebec is french speaking, and many of the english-speaking businesses and others moved out of quebec. it really lead to a long lasting slow growth and recession in quebec for decades. and scotland may face something similar if they don't quickly regroup even after a no vote. because david cameron has
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offered to devolve powers to scotland, and he wisely did that when he wasn't getting traction, but it could be higher taxes, and people might worry that there will be another vote. i think it's a different setup than in canada, but that's sort of my concern that it is generates this longer term instability, but nothing compared to a yes vote. >> i crew up on the other side of lake ontario from you in toronto, and a lot of toronto's success can be traced back to the fact that a lot of those people left montreal, where they were going to make their futures and then moved to toronto. >> absolutely. absolute lye. we have to hope that that doesn't happen in scotland, but i think it will take some really good leadership in scotland to make sure that that doesn't proceed to a greater degree than is necessary.
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but again, this is nothing compared to having a yes vote where there are so many questions, for example, what currency are they going to use? they say they are going to use the pound, but they will be more like ecuador or some country using the dollar than say a member of the euro zone. they could ask to join the euro. the european union is going to be very upset to have to deal with that, because there are other regions that want to break off, because if they see scotland got away with it, they will want to get it awa with it. and then if they have their own currency, well, that solves that problem, except they will no longer have the couple hundred year tradition of stable currency in the united kingdom, and they could have higher inflation, their borrowing rates
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would be high no matter what. you don't just jump to being sweden overnight. it could take decades of very, very long time of instability before that happens. >> ken good to talk to you. thank you for your incites. all right. coming up, the company that could turn the auto business on its ear, plus how talent could in america. ♪ >> every saturday, al jazeera america brings you controversial... >> both parties are owned by the corporations. >> ..entertaining >> it's fun to play with ideas. >> ...thought provoking >> get your damn education. >> ...surprising >> oh, absolutely! >> ...exclusive one-on-one interviews with the most interesting people of our time. >> you're listening because you want to see what's going to happen. >> i want to know what works what do you know works? >> conversations you won't find anywhere else. >> talk to al jazeera. >> only on al jazeera america. >> oh my! >> no noise, no clutter,
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just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now there was a nice drop in the number of people applying for unemployment benefits last week. first time claims fell by 36,000, a sign a the job market is strengthening. applications are a proxy for layoffs. when fewer people seek benefits, it suggests that employers are
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keeping more employees. some americans are also becoming more wealthy. the next worth of americans in the april to june period rose to a record high. that's according to the federal reserve. at the same time, however, u.s. households also took on the most new debt in five years driven mostly by student and auto lines. but more borrowing can be sign of confidence. u.s. net worth has rebounded dramatically, but the wealth gains are flowing mainly to affluent americans. investors are wondering if the country is about to default on billions of dollars in debt, that is made worst by news that the government want to sell a state-owned company, citco. the company is worth billions of dollars. harris explains why a sale of citco is not sitting well with
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many venezuelians. >> reporter: practically free petrol is one of the reasons that the country's oil industry is so important to venezuelans. >> translator: fvenezuela lay wants, to get rid of sitco would arms. >> citco owns some 14,000 gas stations and three refineries across the united states, the government now sees that as a potential liability. >> judicial uncertainly is leading the government to consider selling its assets in the united states. >> reporter: it is currently facing lawsuits stemming from its nationallization of foreign assets. citco would be at risk of those lawsuits were lost.
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>> translator: if the judgment is unfavorable, citco is the asset that is most widely abroad and it could be seized. analysts believe proceeds from the sale of citco would go where most other cash has gone in the past to continue paying for the expensive social programs. >> translator: our government always says fresh money would be used to invest in development, but it always ends up being used to cover the increasingly high costs of its social subsidies. >> reporter: the potential proceeds wouldn't do much to brighten the inflation.
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analysts say the country has fallen into recession. now let's imagine a world where the cars you drive to the gas station don't come from an assembly line, instead they come from a 3-d printer. last week an arizona company called local motors created the first drivable 3-d-printed car. jake ward looks at the mechanics and explains why even larger vehicles may soon be produced from 3-d printers. >> when we think about manufacturing, we think about sub tracktive manufacturing. this is what is the cutting edge of routers. systems for carving away steal and plastic. but the next generation is going to be additive manufacturing. you know it as 3-d printing. and it is extruding certain materials in really, really
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complex forms in one go. here is an example. this is a single object printed in one go, layer by layer, but it's actually a gear. a fully functioning, moving mechanism. and that's really the low end of this whole huge revolution we're seeing in manufacturing. the news here is the creation of the full body work of a car, and when you think about a car, you think the body can't be hard to make can it? it turns out it is incredibly hard to make. the average car has about 35 body pieces that go into it on average, and each requires a whole unique custom made set of machines, tools and dyes created specifically for it. so if you change one part all of that has to be redone. so the experiment here between auto desk, local motors, and oak ridge national laboratory, is to
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create a full body work of this car. the idea that in 48 hours you can bang out a new design. 3-d printing makes that really possible. and that's why okay ridge is also working with lockheed martin to build fighter jet parts out of the same process. so you will see 3-d printing create not just small tchotchkes like this, but larger parts in the future. all right. coming up next, a pioneer in silicon valley steps down. plus income inequality, i'm going to talk to one of the greatest thinker on the issue, who says talent is no longer stay with us. ♪
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>> it's a chilling and draconian sentence... it simply cannot stand. >> its disgraceful... the only crime they really committed is journalism... >> they are truth seekers... >> all they really wanna do is find out what's happening, so they can tell people... >> governments around the world all united to condemn this... >> as you can see, it's still a very much volatile situation... >> the government is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live.
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>> a firsthand look at the ongoing battle against the isil threat. >> bombs are cracking off in the distance... >> this is a booby trap in the islamic state >> ...a sniper around the corner here... >> from the front lines, josh rushing reports, on al jazeera america ♪ a major changing of the guard in the technology industry, larry ellison, announcing today he is giving up his ceo position at oracle. he founded oracle back in 1977 when he and bill gates and steve
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jobs were pioneers in silicon valley. he has been oracle's only chief executive. he is one of the richest men in the world. his sailing team won two of america's cups, he lives on a estate worth nearly $100 million. and owns a hawaii island. not bad for a college dropout. he is turning over the ceo reigns to mark heard formerly of hewlett-packard. he has been criticized for his out sized compensation at oracle. shareholders were upset to learn he was paid nearly $77 million. i know you are fired up about inequality too, based on the tweets you have been sending me. i promise not to get too bogged
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down in chief political bickering, but continue to speak out folks i know with good solutions. in the interests of time let's call this man academic director of the martin institute at the university of toronto. you wrote a fascinating piece on the rise in what you call the likely fall of the talent economy. now first of all, what do you mean by the talent economy? >> i mean an economy now more dominated by folks who have to demonstrate independent judgment and decision-making in their job, and that's about a third of americans now. two times up from what it was 50 years ago. and those folks are driving the fortunes of companies, and extracting more and more and more of the value out of the economy, and the rest of the economy is -- is not moving ahead, so the tricky thing is talent is great. it's great to have it, but there
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needs to be some kind of a balance between the talent, especially the highest-end talent gets and everybody else. >> interest language, you said exacting value out of the economy as opposed to creating value. some would argue, i'm sure larry ellison would argue, i created value. these companies that cause you to buy things that you didn't even know you needed. >> yes, and they create lots of jobs. wealth for the shareholders and the communities he is in. there are many members of the talent fas k these days who are not. hedge fund managers being first among them. all they do is trade value. and they are now the highest compensated people in america. >> what -- how do you make a determination as to what the so-called group of people you are talking about, talent, how
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they should be paid? >> i guess they should be paid at a level that enables the average american to still move forward. that's tricky. it's obviously not an easy question, but over the last 25 years, net, the median american has not moved forward from 89 to 2012. and i just think there's a challenge. that's happened before for relatively long periods of time, but in the great depression. in the great depression, the top 1% also suffered. in this period while the median american was not moving forward net -- richer. >> yeah, they were doing fantastically. so it's not so much that i think all talent is undeserving, far from it, the talon creating value and jobs is probably worth it, but can the economy deep
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working in a democracy if the average american starts to feel like there is no prospect of moving forward? >> but is there a number. is there a multiple of what the average salary is? is there a number, is this a tax thing? i mean the issue we are speaking of is the growth of inequality, and everybody around the world is recognizing this now. the world economic forum, calls america the third most competitive country in the world, but warns the growth is faster here than in other countries. >> that's right. i don't think it's so much that ratio. i think the secret for a democracy is to have the 51st percentile person, who in some sense the swing voter feel like i have a good prospect of moving forward. >> do you have to have a good
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prospect of being elson? >> i don't think so. i would argue between 1776 and 1989 that pretty much worked. >> yeah, and you thought your kids could go beyond where you were? >> that's right. >> and that has come to a stop now. >> that's right. i just think it's a really significant situation that unless there is some work on it, i often say i think we're potential heading towards a 1935 moment. >> what do you mean when you say that? >> that's the year that the roosevelt government enacted the national labor relations movement, and created the national labor relations board. labor.
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>> and many people have argued that is not in the case anymore. we have all of these rules. we don't even need unions some would say. >> that's right. but capital was beating down and abusing labor. now we have in the cat bird seat talent, and if it treats labor and capital the way capital was treating labor up until 1935, i think the government in some sense will be invited in, and i don't think it worked out all well in 1935. >> so talent should figure this game. >> yeah. >> and pension funds and sovereign wealth funds they have the biggest chunk of capital. and they have to start acting differently towards talent. >> all right.
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roger thank you so much. well as we continue to explore this topic of inequality in america, i repeat my request to you, spare me pe politicics of envy nonsense, this is trying to find out why the economy is working so well for some and so poorly for many. the point of these types of discussions is not to punish success like that achieved by the iconic business leaders you are seeing behind me. they and others are innovators, job creators, they are folks who were given the opportunity to succeed in america. i begrudge them not their money, and i'm not prepared to say whether they should say more or less, yet roger just argued that talent must show self restraint.
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in a country where the majority of folks have the money to buy what the men behind me were selling certainly makes sense. the point is having the courage to acknowledge america remains a country that can produce the success behind me, but must still strive to deal with the decline in the income aaron alexis wealth of the millions who are sharing in that success. keep watching even if your politicians try to distraction, you are going to have a home for an intelligent search for solutions right here. that's our show for today. i'm ali velshi. thank you for joining us. ♪
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