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tv   Real Money With Ali Velshi  Al Jazeera  October 18, 2014 5:00am-6:01am EDT

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>> start with one issue ad guests on all sides of the debate. and a host willing to ask the tough questions and you'll get... the inside story ray suarez hosts inside story weekdays at 5pm et / 2pm pt only on al jazeera america happen next. also who says bosses aren't giving out raises. there is wage growth out there in america if you know where to look. i'm going to show you. plus ordering a travel ban to combat ebola will not work. i'll tell i couldn't. i'm ali velshi, and this is real money.
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>> the dow rows 1.6, and the s&p 500 rows up 1.3% and nasdaq up 1%. for the week, the s&p 500 which is a good proxy for 401 kay is, in fact, lower than it started 1%. not everyone thinks that this v shape it may fall further before we're out of the woods. who knows. no one really, that's why i stick with my recommendation that today's rally is no guarantee that rain clouds won't appear and drench your portfolio
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some time soon. but strong earnings and economic news helped investors look past worries about europe's economy and fears of ebola on the earnings front. general electric, honeywell, both reporting higher profits compared to a year earlier. morgan stanley, the stocks of these three companies rose on their financial results. we'll get a bunch more earnings next week. in the olden days stocks used to move on the basis of whether the companies that they were part of were going to earn more money or lose money. so today at least fundamentals grove this market. a measure of u.s. consumer confidence rose to its highest level in seven years in the first weeks of october. we will get that on a bit of delay. give credit to falling oil prices as well that send gas prices to three-year lows
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. housing building grew, and that number, that gain, that 6.3% was more than economists expected. it added to optimism that lower interest rates will help the housing sector boost the rest of the u.s. economy. one problem with the recovery is we spent a ton of time discussing on this show is the stagnant state of wages in america. by now you're probably tired of hearing that the households in the middle of the pack had a lower income adjusted for inflation than it did in 2007. i want to move beyond that one sad fact. and unpack the data a bit more. because
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mark you're looking at numbers and you candidate that you see wage growth in some areas. tell us about it. >> that's right, ail. if you look to the center part of the country texas, for example, unemployment is row. we're seeing substantive wage growth there. in the energy industry, trucking industry shortage of struckers you're starting to see wage growth. you're right, it's not broad based yet but there are signs of wage growth in turn pockets of the economy. hope ofly that is a precursor down the road. we're seeing that younger workers are getting more pay increases than boomers are. what's the implication of that? >> yes, that's right interesting. the wronger workers lower paid workers, people that have been on the job more than a year but not quite five years.
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one to five years, those groups have seen stronger base bay entrances than other groups. i think it does reflect stronger job growth and some of those kinds of occupations that employ those younger people. the retail sector, leak sure and hospitality. they've done quite well and added a lot of people to the payrolls since the recovery began five years ago, and it's finally starting to show up in stronger wage growth which is obviously good news. >> when we look at those molly job numbers we're looking at jobs created every month for the last several months, but these are net new jobs created. there are lots more people who leave the workforce and lots more people who enter the workforce. i want to show our viewers a graphic comparing entrance to the workforce and leavers. there were approximately 400,000 more job leavers, people who left their jobs, and 500,000
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more new job entrants in the first quarter of 2013. what does that tell us? >> yes, that's pretty amazing. you don't realize how much turn there is in the labor market. we look at numbers on net. there are big movements in people, and one thing that we've observed recently over the last couple of years is that we're starting to see a lot more people leave the workforce. these are the aging boomers that are approaching retirement and are starting to leave to new entrants. that's the millennials. they're now getting to the age where they're coming to the workforce, and they're entering in a big way. we are fortunately there is a lot more entrants than leavers, so the economy is still growing. it's all very positive. the fact that this is all picking up, this turn is picking up is good news and reflects dynamism in the market. they
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this increase in turn in labor market is a good turn as well. >> in some demographics there is wage growth. you always want to see a de dynamic labor movement rather than a stagnant market. >> one of the key ingredients to a really strong market are those who quit their jobs without another one. that's a good sign because people feel like they can leave their jobs if they don't like it, they can go down the road, move or get a better job. that quit rate has been low throughout most of this recovery but there are signs that that is starting to pick up, which is another good sign that people are feeling confident about job opportunities and pay. you know, we're still not out--completely out of the mess
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we created during the recession. we still have too many unemployed and under employed, but things are moving in the right direction. if everything sticks to script a couple years down the road we'll be in good shape. >> always a pleasure to have you here, mark. thank you. >> thank you, ali. >> i want to talk about how the stock market gyrations may effect consumers, even though half of american households own stock the market performance could have a big effect on the move of consumers, and consumer spending is responsible for two-thirds of this nation's economy. joining us now to discuss the wealth affect and how the shifting mood of investors may affect the willingness of consumers to spend is sean telli. a real veteran of this kind of stuff. he covers everything from stocks to banking to healthcare. good to see you. we needed someone like you to put this in perspective. i won't burden you to try to explain what happened to the market this week.
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it almost doesn't matter to some people. but how is the--is the stock market the way it was in days gone by connected to the economy? will people look and say what is going on? why was the stock market behaving like this? >> the stock market proved again what we should have known before that it is a very risky proposition. when you see these lurching, careening swing in prices, which brought the market down quite a bit , obviously these things are completely unpredictable. when that happens people get nervous. maybe they think they're not getting paid enough for risk, for all this nail biting and insecurity. they want more. the only way they can get more are if the prices go down. the dividend yields get bigger. the prices get lower. the stocks become more of a
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bargain and you have more of a cushion or more room to maneuv maneuver, and margin for safety built into the prices. right now there is no margin for safety. stocks are expensive and people are getting nervous. what we may be seeing is a movement where people want to be paid for risk. and there are these swings that really is a risk. >> we've gone through our lives as reporters at a time when retail investing was not a big deal . you still connect the stock market with the growth of the economy, with the way that you should be feeling with the committee, or should regular americans be looking at other things and saying hey, interest
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rates are low, jobs are created, i feel okay. >> well, first of all there is a wealth affect that effects everybody. >> even if you're not--even if it's not your wealth. even if you don't own any stock. because when stock prices go up the half of the folks who own stock especially very wealthy people get much loser and much more confident about what they're going to spend on. that money ends up in auto dealerships and ends up buying new houses and, etc. that filters through to all workers. >> you feel if you're not there someone is spending their wage. >> 30% of those run ups are translated into more consumer spending. however, i don't think it's something that the average person should worry too much about for the following reason that the stock market does not just go up with earnings, right? sometimes it way overshoots. now we have record earnings, and on top of that we have very high prices. earnings can't keep going up at high rates from these levels. it never happens.
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things will go back to normal. it's all mean reversion. i would bet on that rather that the world has changed. i don't think for the average person you want to worry what the stock market is doing. it's always been erratic. if you wake up ten years from now it will be harder than it is now. you should not be watching it or thinking it reflects what's going on with the economy. you can see 3% growth for three or four years and stocks could go flat. >> look at china, for instance, where economic growth was there for many years. >> because we overshot on earnings. >> let me ask you this. janet yellen did something she has not done before. she made comments about the detrimental effects. this is a conversation that people don't study, don't have stuff to do with it. follow something else in life are saying this is creeping in and will effect us all.
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does creeping and growing inequality effect us all? >> it's unfortunate, but economies that are very healthy, you have a lot of range of incomes, rich are very rich. the poor are pulled up because of all the venture capital investment and all the risk takin taking that the rich do. it's not necessarily bad. i was amazed by yellen's comments because the whole strategy of the fed, and she was a big part of the fed's strategic thinking for many years. >> she's not new to the fed. >> she's not new to the fed, and she endorsed bernanke's plan to bring down real interest rates to raise asset prices. who did that benefit? >> those who are assets. people who have houses and those who have stocks. >> i thought that was confusing because the people who have benefited in the last few years has benefited from asset prices not from economic growth or job growth. >> thank you.
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senior editor at large at fortune. it would help america if europe could get its act together. plus a travel ban to battle ebola will not work. don't take my word for it. it's science. that story and more as real money continues. tell me what is on your mind by tweeting at ali velshi. hit me up at velshi. i'll come right back. >> a firsthand look at the isil fight >> you can see where the bullets ripped right through... >> refugees struggling to survive >> the government, they don't help us... >> but who is fueling the violence? >> if they had the chance to kill each other, to make more territory, they would do it >> fault lines, al jazeera america's hard hitting... >> today they will be arrested... >> ground breaking... they're firing canisters of gas at us... emmy award winning investigative series... new episode iraq divided:
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>> as i have been telling you throughout this unsettling week sluggish economic growth in europe is one big reason for the u.s. stock market's recent volatility. we got evidence of europe's economy, people wait for prices to fall more. they don't spend their money lead to go stagnation. european leaders can't agree on what to do about it. we've got another example of that today when the head of germany's central bank who said he saw no reason for germany to stimulate it's economy. that flies right in the face of recommendations by european bank president patricia
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sabga has the story. >> reporter: confirmation that it's heading in the wrong direction, clocking in at the lowest level since the depth of the financial crisis. the news comes on the heels of data last week showing germany, the powerhouse of the eurozone is skidding to towards a recession. calling for european policymakers to do more. >> i think what's become clear over the last several days is either they're unwillingness or their inability to do that. >> reporter: the european central bank has tried to spur growth through low interest rates and freeing up capital for banks to lend by buying bonds. but european central bankers can't agree whether to go even further by taking a page from the federal reserve playbook and buying government debt as well.
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last week the ecb chief signaled he was ready for such a move only to have the president of germany central bank dismiss the idea as dangerous. another point of contention is whether germany should boost short-term spending to encourage growth in the eurozone. france and italy have been vocal in their call but berlin has been resistant urging tough reform to make their economies more competitive. >> there is the view in germany to spend more right now in a sense takes the heat off other governments to do the right thing with labor market reform in france or competitive measures across the periphery. >> whether this market turmoil turns up the heat for germany to soften its stance only time will tell.
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patricia sabga, al jazeera. >> let's look at how long germany can ignore the voices to stimulate it's economy. for that i'm joined by martin wolfe chief commentator at financial times. an honor to have you here with us. >> it's a pleasure. >> two years ago when things were coming apart at the seams in europe, once again we see those very same divisions. germany telling everybody else to get your house in order. and some others saying let's stimulate the economy. this is no different from what we've seen in the past. is this a sign of underlying instability and discord. >> i think it's much worse than last time. >> it is? >> last time they had at the core a huge liquidity problem in the bond markets of a few very stressed countries particularly
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italy and spain, and they had an actor, the european central bank that could deal with that, and with his famous remark in july of 2012 when he said he would do whatever it takes, which was then followed up by civil outart monetary transactions broker, the bond yields fell, and the spanish government bond yield and ger german government bond yields collapsed. this time i think they've reached the limit of what they're able to do and there isn't anybody else. so the underlying fact that the economy doesn't function, that there is a chronic absence of demand, and germany depends on others' demands and refuses to generate it, and there is no
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structure that will fix this program is analytically wrong, it's a mistake, and mario dragby can't deal with it. >> we thought this was a deficiency in the eurozone . yo >> think about different tax rules and wages. it's quite normal. these are real sovereign states. that's true. second, these are an obstacle to growth, they should be removed, and in italy, particularly in
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spain, they're reforming. but third he's not going to generate the demand that's missing. real demand in the eurozone is 5% less than it was in 2008. 5% down. there is no sign of growth, and the structural reforms which the germans did u undertake, it didn't help germans either. >> like your compatriots. >> in the long term it makes the economy more efficient. >> it's the same thing that we face here, but they face it more seriously. >> much more seriously, and the answer is they don't have an solution to this. they can't agree on fiscal policy. and monetary policy is exhausted. >> we used to this that lower the interest rate generates demand. >> but they're at zero. they can't do more than that. buying bonds on an immense scale might do it, but there is no agreement to do that.
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fiscal policy is blocked, and world demand is also weak. they're completely stymied in the risk of inflation, and you mentioned one problem, rising real debt is the other point. real debt gets worse when inflation goes negative, i think the prognosis is really very bleak. >> let me ask you about deplacing, to a non-economics audience it sounds all right, prices will keep going down. what is the real danger of getting stuck in this track and not being able to get out? >> there are two or three problems. one, prices may fall. it's very difficult to make wages fall. real wages tend to rise, and it makes you less competitive. the second issue is people postpone spending. and the third issue, they've got a lot of debt, prices are falling in euros. that means the real burden is debt on your income and that is rising. the real leverages, public sector debt is rising in these countries because of this.
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private debt is up and rising. those three problems together make deflation a frightening prospect . >> is there one that you agree with. >> i think the germans are wrong. they're refusal to think about demand or to pursue any policies that will help promote demand easterly nationally or at the european level is tremendous obstacle for success. >> martin wolfe commentator at financial times and author of "the shift and the shocks: what we have learned and what we still have to learn from the financial crisis." the president's new point person on ebola. how it can make a difference. and how minimum wage could effect districts where the g.o.p. is vulnerable.
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>> i wanted to be in on the big >> many of these involved
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>> america votes 2014 go behind the scenes in the all important swing states >> this could switch from republican hands to democratic hands >> with the senate and congress up for grabs... >> it's gonna be close >> these candidates will stop at nothing to get elected. >> iowa has never sent a woman to congress... >> i wanna squeal! >> i approved this message >> i need your help >> midterms, the series begins only on al jazeera america
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>> there is another story out today that illustrates how difficult it is to contain the ebola virus. government officials say that a dallas healthcare worker who handled a lab specimen from thomas duncan is on a caribbean cruise ship. at the has quarantined herself and is monitoring any signs of infection. they are working to return the woman and her husband to the u.s. before the ship completes its cruise. when they left health officials were requiring only self monitoring. president obama has appointed someone to respond to the cyrus. >> president obama could no longer resist calls for an ebola czar.
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mr. obama has called ron klain. former chief of staff to vice president's joe biden and al gore. he leaves his job at a financial capital firm for now to fight ebola. president obama was asked why pick someone with no medical expertise. >> what we were looking for is not an ebola expert but implementation expert. that's exactly what ron klain does. he has extensive experience in the federal government and extensive management experience when it comes to the private sector. >> after meeting with his ebola team signaled that he was ready to meet with his ebola czar
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. >> there is much to coordinate. including the cdc's efforts to trace anyone who may have been exposed to the virus. the screening of u.s. travelers at key u.s. airports. u.s. aids humanitarian relief efforts in west africa, and the u.s. military's push to build treatment and testing centers in liberia, which is staggering under thousands of ebola cases. the military's effort alone could cost $750 million in the next six months. but it is not enough. according to secretary of state john kerry. speaking to u.s. diplomats at the state department kerry said the rest of the world must step up its help. >> no one country, no individual group of nations is going to resolve this problem by themselves. this is going to take a collective , global response all hands on deck.
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>> reporter: kerry warned if the outbreak in west africa is not stopped ebola has the potential to become likely or polio, a health hazard the world will be fighting for decades. al jazeera, washington. >> calls are growing louder in washington for the u.s. to ban travelers from country in west africa, so far president obama is resisting saying the screening measures already in place for travelers are more effective. the centers for disease control said that a ban would actually hurt efforts to contain the disease but texas governor rick perry said that air travel is how ebola arrived in texas and said a ban would be the right policy for now. joining us from dallas to plain why a travel ban would not work. let's suspend this believe and i'm going to try to put myself in the shoes of those two congressman who are going after thomas f
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rieden with the c dc. >> hit me. >> what if we did not give visas to people from ebol ebola-infected countries, and not let them in. >> i can understand the logic. cap it off at the source, that's how it would stop things. it would not be effective and it would be counterproductive. let's tell you what you know it true in business. data is power. you need to know where everything is at every time. people will begin to be obscure their travel plans. that is the nightmare. they have said forever that you would never want to stop people reporting where they've been. you want the tsa to get a detailed record of where everyone has been in the past. if you lose that systemic major where people have been, where they're going,
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. >> now i understand that disease disease, we now have thousands of people in west africa from all over the world to help. military personnel, medics, it strikes me using a passport or nationality to determine whether you're connected to this disease or not does not make a lot of sense. >> well, this is really an old trope, the idea that a virus knows no border is absolutely true. it's important to understand that once you begin to close off those borders you do damage to several things. for run thing the economic consequences of shutting off a country likely beer i can't or guinea is just unbelievable. the destabilization of that country that would result from prohibiting them from traveling to the united states, keeping
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people from traveling home and sharing the wealth that they've earned in this country, the estimates top over 1 trillion-dollar in damage to those countries if you were to shut it off. also let's point out how ineffective it would be. one mathematical model out of northwestern university showed that if you were to cut off air travel by 80%, you would in theory stop ebola for only four weeks were coming in to the united states. not everyone comes in via air. the world is a very connected place. also, let's keep in mind thomas duncan did not fly here from liberia. he came from belgium. if we were just a tiny nation that only a handful of airports serviced, that would be a different answer, but coming here via connection from a place that we don't have a travel ban on, with respect, congressman, it is a very bad idea. >> you mention this idea of shut
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off a country, particularly poor countries you collapse their economies. the danger is that you then have refugee crisis. you have people leaving to go to neighboring countries and it would be much hear harder to control ebola and then we have a pandemic, everybody will try to get to the place where they think they can get the best treatment. we know we don't have enough beds in america. even if we had a dozennen ebola patients here but the world does see this as the place with the best likelihood of treating this disease. >> that's absolutely true. this is a destination for treating the disease. more importantly keeping the fly ways open is what is going to allow us to understand where people are and where this disease is happening. we're beginning to lose track of people in liberia as they go deeper in the country, and we don't have an ability to monit monitor. if we were to import that into the united states by closing our
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eyes where people are in the world who have this disease, and allow them to come here we would have a nightmare. it's not just a question--of course they want to come here, but it's the knowing where they are that is going to help us. >> i asked people what would happen if thomas duncan didn't walk into a hospital. walked some place else and denied what was happening to him, we would have a much larger problem on our hands. it's a key economic issue that could cost the g.o.p. seats in up coming midterm elections even in traditionally red states. i'm looking at the debate over minimum wage. and why it's tough for middle class families to put roofs own their heads even in some of america he is smaller cities.
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>> next month voters in six states will decide whether to raise the minimum wage. the federal memor minimum is $7.25. which means that everyone has to have at least that much. but many cities and states and passed much higher minimum. the senate voted down a bill proposed by president obama to raise the federal minimum to $10.10. republican lawmakers have never liked raising the minimum wage arguing that it hurts business and it kills jobs and by the way, it's not for the government to say how much people pay their employees.
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but in some key senate races in next month's midterm election, their negative stance on minimum wage could cost them. >> reporter: even in some traditional red states the g.o.p. may be vulnerable on one key economic issue: boosting the minimum wage. >> there is minimum wage on the ballot in a number of states. one of them is arkansas where i know the democrats are looking for anything they can to drive turn out for senator mark prior, who is a pretty embattled incumbent there. i know there is hope that increasing the minimum wage would help drive turn out for mark prior. >> in fact, four traditional red states have ballot measures to raise their state minimum wages. arkansas membership, south
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dakota . polling in states with close senate races like north carolina, kentucky, louisiana and iowa show that voters support president obama's proposal to raise the federal minimum wage from $7.25 an hour to $10.10 an hour by wide margins. but republicans in those states including kentucky's incumbent mitch mcconnell oppose the move. his state's unemployment is higher than the national average at 7.1%. >> senator mcconnell's opponent said that boosting the minimum wage would raise a million americans out of poverty. the nonpartisan
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congressional budget forecast said that it would lift 900,000 workers above the poverty line and estimated 16.5 low-wage earners would see a bump in their pay. but the cbo said that raising the minimum wage would put half a million jobs at risk. but not all business leaders agree. like frank napp jr. >> if one or two people find themselves for some reason lose a job because of this, they'll be a lot more who will get the job and they will--those who are let go will find other jobs because there will be more hiring to meet the demand that raising the minimum wage will create.
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>> his group backs raising the minimum wage in south carolina. a red state generally seen as hostile to big government telling business owners what to do. but he may be on something. polling may turn on candidate support for boosting the minimum wage. raising the federal minimum wage is an issue that really resonates with voters. that's what tom jensen says. he knows a thing about voter attitudes. he is the director of public policy polling, a national polling based in rol raleigh, north carolina. you do polling for democratic and progressive campaigns. >> sure, that's right. >> but that should not affect the outcome because you need to know what people are thinking. i'm struggling with the idea that this is a resonant theme. it is for me. you know what they call us in the media, they call us the
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liberal media where our wages are substantially higher here than they are generally speaking in the south. is this an issue that will resonate and might even help democrats beat republicans in some of these places? >> the minimum wage is the best issue that democrats have going for them this year. it gets democratic voters excited, but also in every state we poll we find a majority of independents support it. we find that it's a real good issue for democrats. >> if you did the math on minimum wage from when it was implemented and adjusted for inflation it will get you right around where the president's $10.10 proposal comes from. that's why they're saying $10.10. but in fact many republicans--many democrats
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would be happy if we got somewhere in between. did the president put this $10.10 out there just to stake out ground particularly with progressives and democrats and liberals? >> well, it is--the $10.10 proposal is something that we find that voters can get behind. i think where it's a problematic issue is places like iowa and colorado where they're trying to win senate races that are blue states that voted for barack obama two times, and republicans are trying to reverse the voting trends in those states, and it's causing their candidates trouble that they're staked out on this issue really away from the big majority of voters that support the $10.10 proposal. >> you know, there are a number of arguments we've had from conservatives who appeared on this show against the minimum wage. the most compelling, if i were to rank them would be it's a job killer. despite what the congressional office said, this country is about small businesses and small
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businesses will have to choose to have fewer workers. the other argument where is it the government's role to tell private business what to do? it's easy for the government to say minimum wage can be anything you want it to be, but it's businesses who have to implement those things. and the third one is the hardest that i have my tiny brain to get around, to let the market set the minimum wage. because i think it would be $3. >> yes, what we're finding in these key states that we're polling fewer than 20% of voters think they can support their families on minimum wage. that's why you're seeing such strong support for the $10.10 and all these places that we're polling. it's an issue that voters can really sort of relate with on a personal level. this is not a distant sport of thing. when people think can i support my family on less than $20,000 a year, the pretty resounding answer is no. that sort of familiarity is what let's this minimum wage increase
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be so popular. >> let me ask you, $7.25 is the federal minimum wage. if you want a 10% increase which is three to four times more than what many americans are making, that would take you to $8. would they support it more at $8 more than $10.10. i'm talking about republicans. would they support a $9 minimum wage or is it don't touch minimum wage or increase it? >> what we're finding is that there is stronger support for a lower increase. for instance, in arkansas and alaska where they have these ballot initiatives about the minimum wages, they're not quite going all the way to $10.10, we're finding that those minimum wage ballot proposals are liningly to pass with the majority 69 votes. you have solid majority vote for $10.10. but when you talk about $9 and $8, then you see the increase goin
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supporting the rise in the minimum wage going up. >> in a has renewed my faith in people. tom, good to talk to you. thank you so much for being here. tom jensen is the director at public policy polling. middle class flight is nothing new in expensive cities.
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>> time now for an update with one of the families we've been tracking over the past year as part of our series america's middle class rebuilding the dream. tonight we hear from the williams family. carl williams is an i.t. specialist. stephanie is a math specialist. their family of six recently moved from a home in the suburbs into chicago after stephanie landed a higher paying job mentoring math teachers for the city's school district. they rented a duplex and then they received upsetting news. the owner of their apartment has gone into foreclosure.
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so far they've been able to city in the house. we ask about their expectations of city living squared with reality. >> i was reluctant, but now i'm glad that i can find my way around it and just move. i leave out of here at $7.25. i can be at work at 755. :55. >> i catch the bus and get there at 5:48. if i drive i get there in ten minutes. >> that improves your quality of life a great deal as opposed to sitting in traffic for an hour and a half every day, and just being able to sleep a little bit later, you can still be to work on time. gas is a little higher, but we don't have to use as much gas. >> that's definitely a plus. it's beautiful to be on the same
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tank. transportation, you caught out the parking that we were paying, $13 a day. we can just catch the bus. you cut out the gas. >> and at another point you're just trying to leave, so i get out of school at 4:00. for us to wrap them up and get them out to the suburbs before things started, that was another issue. now we're right here. that makes it easier here and makes it more appealing . here activities are free. where we would have to pay $60 a child. that's an added benefit. i was able to get them in all these activities, football, soccer, gymnastics, all for
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under--it was like $39. they didn't have activities because we couldn't afford it. held be looking at $250 for soccer. so it's $10 here. >> everything worked out better than i was expecting. >> the williams family obviously is happy with their move. the next time we'll hear about the financial down sides to city living. chest and other cities like francisco and new york are becoming increasingly unaffordable for families to call home. but even cities like boulder, colorado, are experiencing a major lack of affordable housing. we learn why that city could be seeing the final exodus of a dwindling middle class. matt, i would not have thought i would be speaking to somebody about boulder, colorado, facing this situation. you know, we've got these measures of affordability to say
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that can a median income earner in a city afford the median income house in the city. what percentage of affordable housing can be afforded by median income earner. we're learning that in boulder that equation is out of whack. >> you're exactly right. you expect these things in new york and francisco. a little bit of background about boulder, there is a building moratorium. the city bought up all the land outside of city limits so they can't build out. there is an ordinance that says you can't build anything higher than two stories. everything that is going to be built in boulder has basically been already built. at the same time you have an influx of people who work in the tech sector, engineers, and the finance sector, and they're raising the median income. it's at the expense of teachers, journalists, public workers who can't afford to keep up. >> what is your sense, matt, as somebody who lives there, and as a journalist about the dangers
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of this? some would say that boulder was a place settled by hippies, and now look at it. it's hot, hip, people come there, professionals come there, and it's gentrified. isn't that terrific. half the households earn $75,000 or more. a third or more earn $100,000 or more. double the national household median. what is the negative effect of this? >> you're right. >> everything is being weeded out by the increase in housing prices and unavailability of houses for people who could help the culture progress.
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. >> you could argue that it remains affordable to the middle class but the danger is you're weeding out lower-income people and the associated bad effects of doing that, creating a false society. >> no, you're exactly right, and people are forced to move into neighboring cities, which are 10 or 20 miles away even though they want to live in boulder. the city has done studies that says people who work in boulder overwhelmingly which they could live there, but they can't afford to do it. when you push people out you're increasing traffic. there are major infrastructure issues. and you're just not being a very welcoming community which is something that boulder really brides itself on. >> you lose some of its texture. we say that about new york all the time. we priced the artist and others
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out of the place and they go somewhere else, but boy do we have high finance people in this society in case you think that enriches society. matt, thank you for being with us, my friend. millions of americans are concerned abou concerned about income inequality. >> robert kennedy jr., >> american democracy is rooted in wilderness... >> his fathers lasting influence >> my father considered this part of our heritage... >> coping with tradgedy >> the enemy of any productive life is self pity... >> defending the environment >> global warming is gravest threat... >> every saturday, join us for exclusive... revealing... and surprising talks with the most interesting people of our time... talk to al jazeera, only on al jazeera america
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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...
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>> the government is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live. >> coming up sunday on real money. immigration reform. dead in congress but alive and well in the midterm election. we'll look at how it could play a role in november. plus hitting the road in an rv could be th the new normal of retirement. two things i talked about on the show are very much related to each other. income inequality and raising the minimum wage. we heard fed chair janet yellen talk about the raising of the minimum wage that workers get in this country as one way to narrow the gap and give americans on the lower rung of the
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ladder a way up. the feds bond purchases lowered interest rates and help persuade investors to throw all their bets into stocks, but that is over and done. what matters now is the inability of a family to support itself on $7.25 an hour. that's $290 a week. about $15,000 a year. families can't get by on that, but many are forced to. low income americans justifybly think they deserve better, and many other americans support them. there is nothing complicated about that. that's our show for today. i'm ali velshi. thank you for joining us. and have yourself a great weekend.
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announcer: this is al jazeera. hello, welcome to another newshour at al jazeera, at our headquarters in doha. i'm adrian finighan. coming up in the next 60 minutes - battles for benghazi. fighting for control of libya's second city intensifies. [ singing ] >> hope for the families of nigeria's missing schoolgirls as the government says it struck a deal with boko haram. >> ireland's hidden cr