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tv   Real Money With Ali Velshi  Al Jazeera  January 21, 2015 7:00pm-8:01pm EST

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easier for players to grip and catch the ball. the nfl investigation is expecting to wrap up by the end of the week. that's all of our time for this new hours. "real money" is up next with david shuster in tonight for ali velshi. . >> triumphant and swaggering president obama. the political battle has begun and we'll look at if any of the president's economics stand a chance in the g.o.p.-led congress. we'll show you in havana that could make things tough and in the mountains of switzerland some of the most smartest and powerful people in the world are trying to solve the most pressing economic problems of our time.
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i'm david shuster in for ali velshi and this is "real money." >> one day after president obama came out swinging today. in idaho the president hammered republicans for their opposition to economics. the president wants new tax breaks for working class americans and wants certain inside to be paid for with higher taxes on the people who have benefited the most in the economic recovery: the wealthy. the american works who are struggling the most, the president said its time to raise the national minimum wage. >> that's what middle class
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economics is. the idea that this country does best when everyone gets their fair shot. everyone does their fair share. everyone plays by the same set of rules. >> raising the minimum wage equal pay for women reducing student debt loads the president has lobbied for these policies before. the new ideas including free community college paid sick leave and proposals to change the taxes and tax rates. but old or new all the president's proposals are designed to bolster the middle class.
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that's the rub for most americans, the stark differences in washington rarely get bridged in that compromise is almost unheard of. the new al jazeera america monmouth university poll asked americans what they think causes more problems in washington, elected officials not willing to up for their principles or not willing to compromise. they say it's the unwillingness of lawmakers to compromise. president obama introduced 18 proposals in his state of the union address. over the course of the year congress only passed two of them. job retraining and funds for research. the odds of this congress passing even one of the president's proposals this year have only gotten worse. libby casey has the latest from washington. >> david, president obama did make some overtures at last night's state of the union. as they hit the road today two republicans to compromise but he
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has been taking a defiant tone and republicans are matching that. they're making some symbolic and some significant moves this week to try to set their own agenda. >> good morning, everybody. >> he's not the commander in chief, but house speaker john boehner is taking foreign policy into his own hands just one day after the state of the union. invitingvilleisraeli prime minister benjamin netanyahu to congress next month. >> i don't believe i'm poking anyone in the eye. >> the speaker framing it as a rebuke of president obama's nuclear negotiations with iran. >> there is a serious threat that exists in the world and the president last night kind of papered over it. >> the republicans eagle for impose more sanctions on tehran if negotiations stall and warning of a nuclear iran. >> we built a timeline of what they're able to achieve over the last ten years, it's impressive
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of how they use this process. another five years we'll build the bomb for them. >> there is still hope on partisan agreement like tax reform and cyber security. >> if the president is willing to put the veto threats away and design to fail talking points aside, we can still cooperate to get some smart things done for the people we represent. >> the republican-controlled congress is plowing ahead on its own agenda, a keystone xl pipeline bill working its way through the senate already passed in the house. >> we'll continue to reach across. i don't mind leaving the table with a half loaf of bread but it's not going to be his way or no way. >> but some republicans are ignoring the current president. instead setting their sights on 2016. >> we will be laying out the agenda for the debate for the next president of the united states. and the presidency of this
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country will be determined by the next election not this one. >> the tax break that the president is pushing and items like trying to get free tuition at community colleges, the republicans have a phrase for that. it's called "tax and spend," a familiar one. the republicans say they want to help the middle class but they want to do it by creating infrastructure and jobs project. >> thank you very much. it was clear from the republican response to the president's state of the union give by iowa senator joni ernst. there is a difference of an idea being dead on arrival and one possible of negotiations. great to have you on the show. is there any room for some sort of negotiations over the middle
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class tax cuts given that republicans would normally like that? the question is how do you pay for them? >> yes, that's exactly the question. how do you pay for them. as libby just reported from capitol hill, republicans and democrats are talking past each other right now. they can yes on broad framework they would like to target help to the middle class but they're absolutely divided on how to do it. they talk about wanting a big overhaul of the tax code that has been in washington for years now. unless the big companies are willing to give up tax breaks, i don't see democrats moving on that. as libby said with tax and spin you're also going to hear from the president the follow up. he's going to want a seven percent increase. they're not going to want to go along with that either. >> is that an open bargaining point? in the past the president has seemed to give his best offer first and then democrats accuse of negotiating with himself. is he striking a hard
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negotiating stance right now? >> i think he's laying out what his vision is and the contrast in the event that nothing can get done. he wants to show where democrats stand and what their ideas are for targeting aid to the middle class in conjunction with hillary clinton. her aides his aides they've been talking a lot. their allies in the think tank have been talking a lot. you i think what you see is a you gauntlet being thrown down. president obama has two years to finish his legacy. he thinks that he will if he can get a good deal without giving away the store he'll get one. john boehner the house speaker unmoved by anything that the president said. >> those republicans talking about 2016 have got to know they need women voters and latino voters doing something to show concern for the middle class. any possibility that perhaps the republicans come back and say
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look we'll give tax relief, we'll give child care tax credits if you're willing to cut back on government spending. >> i think they'll be willing to say that they'll give tax breaks that he wants but i don't think you'll get that for the president. we're heading to another stalemate, the president looking for big spending increases in caps that have been set and so many republicans looking to make further deeper cuts. i just don't see them finding a lot of common ground over the next year. >> that would suggest the one thing that has a pretty good chance of getting through such as trade deals you have the president having to rely on republican support to get that through. >> the democratic party very divided. we saw two unions come out against that fast track authority for trade agreements that he asked for. the communication workers of america while they're generally praising his ideas for helping the middle class they hate these trade deals that are coming along. they think they're a bad deal
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for american workers. >> what was the reaction to capitol hill to joni ernst. she seemed to get through the first speech without major flaws, but in terms of policies, what was the reaction that you found? >> i think republicans were proud of joni ernst. she was a surprise winner of a candidate who was not supposed to go very far. she speaks to the middle of america coming from iowa. the red rick was right and the bar for republican rebuttals to president obama is a loaded and clear. if you remember the bobby jindal one that was much mocked and marco rubio the big moment for him was grabbing a bottle of water. getting through the rebuttal
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without major gaffs is a pretty big achievement. i thought she was great. >> if she gets through the knicks five years without going to prison like bob mcdonald, she'll be one better than him in response to 2010. always a pleasure having you on. appreciate it. >> take care, david. president obama off the top with an attitude he has not shown very much to the american people got a lot of attention. we'll look at whether the state of the union swagger will help or hurt the endin the long run.
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>> according to the white house before the speech there were 4,000 words in the president's state of the union address. a host of republicans have now declared into the g.o.p. controlled congress, the president's taunting reminder an attitude in parts of the speech
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will not do him any favors. did the president go too far or as democrats said is this the barack obama the one that progressives say this is the one they've been longing for. >> if you truly believe you can work full time and support the family on less than $15,000 a year try it. if not vote to give millions of the hardest working people in america a raise. we've seen the fastest economic growth in over a decade. our deficit is cut by two-thirds. a stock market that has doubled and healthcare inflation at its lowest rate in 50 years. >> this is good news, people. >> i have no more campaigns to
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run. my only agenda--i know, because i won both of them. this congress still needs a pass a law to make sure that a woman is paid the same as a man for doing the same work. it's 2015. it's time. we can't put the security of families at risk by taking away their health insurance or unraveling the new rules on wall street or refighting past battles on immigration when we've got to fix a broken system. and if a bill comes to my desk that tries to do any of these things, i will veto it. they will have earned my veto. on cuba, we're ending a policy that was long past its expiration date.
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[applause] when what you're doing doesn't work for 50 years, it's time to try something new. >> the president's hawaiian punch zinger is underscored. he's no longer drawn to the aleutian that his adversaries will treat him fairly or compromise in good faith. but there is a lingering question today whether republicans in congress will remember the one-liners when it comes time to try to negotiate and come to decisions on key proposals. how did the zingers go over on the floor. >> the words that you referred to "i know, i won both of them." it got a lot of laughs. it got laughs from oh both sides of the chamber but last nights
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with one night. and the same night that the republicans had the election night, that was one night. and seemingly the president moved on from that night. and the republicans are moving on from last night, and they're trying to do so with legislation, as we heard from libby in congress, and on tv and in the media. >> there was one republican who said it was unwise for the president to rub the republicans' noses in his election victories. was that unwise or just someone with sour grapes going to the microphone and popping off. >> he took the laugh line away from them. everyone was laughing when you heard the smattering of applause from the republicans hearing that after the president said he had no more campaigns to run they started clapping. the gallery laughed. it was a funny moment. then he retorted. he just took the laugh away from them. i don't think that was the swagger. the swagger and the things that
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offended the republicans most were not the rhetoric of a joke, but the threats of vetoes everywhere they looked. there was the threat of a veto on iran, immigration and healthcare. that's where they look at the president and say we won the election. we now have the senate, and you can't just do this. you can't be the party of no. the president has been on the other side of that as well. >> were the republicans surprised by that aggressive attitude? were they really expecting the president to come in with an olive branch and say oh, you won the election, i'll move to your elections. >> i don't think the president's demeanor was that surprising. he had struck--of late before the speech, he had a populous tone. he talked about his tax plan which was very populous. i don't think they were surprised by what they saw in the details of last night's speech. they expected a lot of that, and they expect the white house to be defiant about the things that they want to see moving forward. notable today david is where the president went. idaho and kansas.
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not traditionalcally democratic territory. he was not taking it to the republicans in the house chambers but to their constituents and the heartland republicans of idaho and kansas. a place i would wonder if the president has ever been since he was elected. >> that swagger and defiance, michael, how does it play now with democrats moving forward? obviously there are a lot of democrats who have been saying to this president for six years you cannot negotiate with the opposition, with the republicans in good faith. don't negotiate with yourself. don't place trust in them. stand up and make them respect you. are they more fired up today or are they more fearful? >> the democrats that i spoke to on the hill today, house democrats only that i spoke to on the hill were pretty emboldened by what they saw from the president. there are issues that the president brought up, for example, trade deals that are going to alienate some of the more liberal members of the house caucus. they're talking about iran.
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you saw bob menendez. the only democrats who did not stand up for that last night. there will be problems for the president. but they do feel emballeddenned because emballeddenned--emboldened. that was a big downer for the democrats. they do feel a sense of energy and they did stand you will because they felt that the president was going to negotiate a lot more and they were afraid of that coming in after the november november 2014. >> after the speech moving forward in history. bill clinton saying the era of big government is over. president bush coining a the phrase what would jump out to you after this speech. >> the off-the-cuff remark we'll see replayed again after we exhaust it over the next few days. it will be replayed again prior to the state of the union speech
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for next year. this was a popular speech in a president as he said he's in the fourth quarter of his presidency. a lot can happen. we all watched the seahawks and packers play this weekend we know a lot can happen in the fourth quarter. there were soaring rhetoric but a populist theme throughout the speech and i think that's how it's going to be remembered. a liberal speech from a president who ran as a liberal but now he's untethered by politics, it's a little different. >> the only man i know who can say an on sidekick being successful and the cues speech of the president. >> thank you david. >> the twists and turns republicans are going through to sprain america's economic recovery under president obama. and why the taxes paid by hedge fund managers are not going up any time soon. stick around after this.
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>> the u.s. economic recovery has president obama's opponents in an awkward position. for year they argued that his policies would lead to economic armageddon. but the strong growth month after month has become impossible to ignore. so mitch mcconnell said that the credit should be given to g.o.p. >> after sluggish growth we're seeing some economic data that can provide a glimmer of hope. the up tick appears to coincide with the biggest political change of the obama administration's long tenure in washington. the expectation of a new republican congress. >> mcconnell's remarkable statement as the last line of a recent must read in the daily beast written by daniel gross. the g.o.p. should stop lying about obama's economy. we're joined by dan are you
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surprised that mitch mcconnell is trying to claim credit. >> no, this always happens. even if they do it retroactively. they say all the growth during the clinton years was due to reagan and then during the bush years it was due to clinton. they always try to take credit for the good things that happen, and try to convince everyone that when the democrat is in control of the white house there is gloom and doom. >> in your piece you mention a piece written by michael boskin. >> this is right from the beginning. that was march 2009, the dow was at 6,600. we had a series of sharp reversals but the sense that nothing positive could happen in the economy so long as a
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democrat was in the white house and this particular democrat as well. they come out and say that everything is going to hell. we're going to have a socialist republic. ps the stock market has doubled since then. we see this continued narrative. the idea that obama should be held responsible for anything bad that happens with the economy. good news is discounted. when good news persist for years and years the expansion is now in its sixth year they say that is happening now because republicans have taken control of the house. >> to free up the wealthy have more capitol that that juices up the economy are they wrong? >> that can certainly help, but the corollary is that if you raise taxes that's awful. go back to 1992. clinton comes in and raises taxes on the wealthy. everyone says that we're going to have a recession. we have the longest peacetime
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expansion in history. obama comes in and they told us it was going to sink the economy economy. we had higher payroll taxes. we've had the best job growth since then. you want to look at the historical record. if you want the markets to thrive and the economy to create hundreds of thousands of jobs per month maybe you should just raise taxes. >> you point out that you go after president obama in your latest column. you point out in the president's state of the union speech, while the president is trying to raise the capitol gains he's leaving alone tarried. >> this is a recurring thing about the obama administration, accused of being hostile to wealth. yet over and over again we see the wealthy get off with a tickle with the feather instead of being lashed with the whip. we have these fiscal cliff when he could have left all the bush tax cuts for the wealthy evaporate and let them go back
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to where they were in 2000. instead, he negotiated a deal that raised it just a little bit. this is a role where people who run private equity funds and hedge funds they make 20% fee of anything made, that's performance. that's how they get paid. it's treated as capitol gains and not wages. basically, those who are making tens of millions of dollars run running hedge funds getting paid to put other people's money at risk, they're being tasked at a much lower rate than someone working in a law firm. >> so if i'm at a law firm, i'm taxed at a 30% income that's mine. but if i'm helping someone make money, i'm taxed 23. >> that's right. instead he is saying let's raise
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other taxes on the wealthy. this was left alone entirely. >> finally if this is obama's economy, does the president have to share some of the responsibility the fact that wages have regained stagnant for the working class. >> this is the biggest factor that stops him from getting all the credit he deserves from taking an economy in the worst recession since the great depression and bringing us to a point where we had all this growth. the economy has been great for capitol capital. it's been great for management, companies have been making great profits but it's been at the expense of labor. because so many people are out of work. because unions are so weak, companies have been able to sort of go year after year without raising people's wages asking people to work for get more productiveity out of them without sharing the wealth with them. we see this over and over where the immediate one income for a family is back where it was 12-13 years ago. and that will be a stain on his
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record. >> thank you for coming in. >> my pleasure. >> coming in we take to you cuba where the talk today is all about closer ties with the united states. you'll hear the latest from havana coming up. >> the real question is not whether americans are ready to head to cuba. it's whether cuba is ready for them.
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>> the u.s. and cuba held their highest-level talks in decades today. they met in havana to discuss reestablishing diplomatic ties between the two countries. an agreement would ultimately lift trade and travel embargoes for the first time in some 50 years. but before americans pack their bags and head to the island nation there are a few things they should know.
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>> if tourists want to come down here they can't. tourism is disallowed. but there are 12 categories that create all kinds of different exceptions. you know, cuba is not for the faint of heart. it's not like you can go on delta.com and book a flight. there are specialized carriers that deal in travel to cuba. and the cuban government has to issue visas. just because the united states has decided to open the door for a flood of travelers it does not mean that cuba is going to play ball. there are a limited number of hotel rooms and the idea of cuba is foreign to many people who are accustomed to five-star hotels. if you look at what is available here it may an bit of a rude awakening. [music] >> for the last half century scenes like these have been off limits for most american travelers. an u.s. embargo that began in 1960 cut off american trade and
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tourism and helped to keep cuba frozen in time. but times are changing, and president obama's new policy while not entirely lifting the ban on visiting cuba is making the island more accessible to americans more than it's been in decades. we decided to head to cuba to get a firsthand look at at america's old cold-war foe. >> more and more people are heading there. we spoke to airplane officials airport officials below say that the numbers are way up, and now the island that was once off limits to so many people is now opening up. >> last year 100,000 u.s. citizens traveled to cuba not to mention the 300,000 cubans visiting family and friends each year.
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they expect those numbers to double under the new policy. and while u.s. tourism is illegal there are 12 categories of exceptions which range from religious groups, educational travel or just attending a conference. americans no longer have to ask permission from the u.s. government to travel here. they just have to find out if they fit in one of those 12 categories and it's all based on self-reporting. the question is not whether americans are ready for americans to travel to cuba. it's whether cuba is ready for them. those accustomed to five star hotel may find accommodation as little bear bones. in a country with crumbling infrastructure and chronic shortages. >> we bring our own toilet paper, nice soft charmin from the states. >> with 35,000 hotel rooms in havana space is limited. while u.s. tourists will eventually be able to use credit cards and debit cards for now cuba largely remains a cash-only
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economy. >> i think it will take a while for the city to get ready for mentos in volume. >> still just the prospect of better relations in washington and more trade with the world's largest economy has some here in havana hopeful that this new u.s. policy is actually just the beginning. >> in one year, no more embargo. i tell you. i tell you no more embargo. everybody is going to be welcomed here. >> in the meantime tour guides in havana will have their hands full with more and more americans descending on the island. >> all right so we've lost david. we can see him but he cannot hear us. so we're going to leave him there. but david in cuba, and he'll be reporting in cuba for several days just a remarkable, remarkable transformation.
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the big news coming from cuba today saying that u.s. and cuban officials had their first former talks today. they try to iron out the normalization normalization of relations. from the president's state of the union address to the summit of the most. >> where will the money come from to pay for it. ali is in davos getting answers next.
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weekdays at 5 eastern only on al jazeera america >> that time of year when a couple of the world's titans in world industry head to davos switzerland. ali velshi is there and hopefully eating well. the subjects are varied from finance to terrorism. >> organizers this year expect about 2500 participants from 140 countries to make the journey to the small town high in the swiss alps. er year davos attracts the heads of the world's leading charities and non-giftal organizations as well as finance year financiers,
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entrepreneurs, major financial deals are cut at davos but this is as much a political gathering as a political one. heads of 40 states, but not problem or vladimir putin. but there will be plenty of u.s. and russian government including ten u.s. congressmen. u.s. secretary of state john kerry will be here. palestinian officials and leaders from turkey, iran, iraq, israel egypt saudi arabia as well as gulf states are coming. the chinese are here, too. attending isn't cheap. admission for paying guests is around $20,000 and that doesn't include the high costs of getting or staying here. the swiss franc has surged making already expensive switzerland more costly. there is no mcdonald as in davso, but in gentlemen geneva a
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big mac will set you back $8. 5,000 swiss troops and police guard this town, but in that ever so efficient swiss way they're less obtrusive than you would expect. with european and middle eastern heads of state terror and it's connections with the various struggles in the middle east is high on the agenda. it's about high level panels populated by paying guests and sponsors, and sprinkled with luminaries world leaders and super achievers. the panels is where the baneyest work get done, but the hallways meetings between government and business leaders are where the important work gets done. israel and europe, iran's nuclear ambition and isil will occupy many leaders who are attending. russian and high chinese ambitions will keep the rest
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busy. more broadly the fears of global deflation and recession have many in this beautiful swiss location on edge about the world's economy. >> an american middle class on edge was the theme of president obama's state of the union as we heard so much is going so as well. the stock market has hit records. millions of jobs have been added. there are record corporate profits. so why is the recovery leave something many americans behind? we sit down with a guru who served with both president clinton and president obama and some have been dealing with just this issue for question. we get the problems, but how do we fix it. >> we really cannot forget the fact that we were in the depths of a recession not seen in terms of a severity of the great depression and a huge loss of middle class wealth because it was tied to the housing stock.
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and truthfully, the recovery in the united states has been steady but it has been slow. you just haven't seen this terrific turn around, the v shape we would have liked to see. so part of it is just the starting point. but on the other hand it's important to say that the recovery period from the internet short live recession at the beginning of the 2000 to the deep recession in 2008 and 2009. that recover was not a recovery period for the middle class. >> when you look at wages and separate out diagnostic you can separate the top 1%, whatever you like, the cohort that you're left with, the bulk. >> the bulk of america. >> they have been--those wages have grown much more slowly over time. including in the time when you were in the administration and things were going very well. could you see at the time, would
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you have been able to project out this was going to be the problem that it is today? >> i think it would have been difficult to project out because whey we believed at the time was we had had a problem of the stagnation of the middle class that was the result of stagnant productivity growth. productivity growth from 1973 to '79 slowed for the u.s. dramatically and it was a slow down. we saw it as economists when productivity picks up again when we figure out a way to do that, we'll see a following on of the wage growth. so that would have been the prediction. what has been a surprise as been that productivity has ended up being stronger than expected throughout the second half well into the 2000s and hit by the recession. cycleically it has been pretty
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good. the income growth measured by the median, measured by the average, has not kept up. >> clearly you and others like you and economists around the country have been thinking about this for a long time and recreating what we should do. but in the end we don't generally impose national policies of this sort. one of the reasons europe can do things differently. that thing is more expected in those countries and not in america. there are voice who is say this is a market problem and where president obama is looking to raise the minimum wage to $10.10 you have conservative voices saying let the market dictate the minimum wage. there shouldn't even be an minimum wage. >> most americans believe there should be. >> even voters in this last election. >> most americans think if you have a job you work hard and you get good reviews why should you not get a job that gives you
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an income that you can keep your family out of poverty. we're nowhere near that in the minimum wage. ear' $19,000 below what you need to keep your family out of poverty the last time i looked. most americans say yeah, that is fair. we look at the evidence here and the evidence is very clear within the range of minimum wage increases we're talking about this is only going to be that official. jobs are not going to be reduced. more income will go to those families. and then it will be spended in the places-- >> if i had a conservative thinker and conservative economy, it's obvious that the jobs will-- >> but i would tell them that if you actually look at the actual pennies per item that is a minimum wage increase will mean on the price that it's most likely that the consumer is going to pay for this. and the same worker who is getting the minimum wage increase will spend a few more dollars pennies at mcdonald's,
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they're better off. there are conservative theorist who is say let's look at the evidence. maybe you could come up with a minimum wage that is high enough that people will actually go out of business, but that's not the range that we have here. >> those who don't agree with it the people who most need that minimum wage increase, the people who are slipping out of the middle class for whatever reason people who run for office talk about the middle class and they're the ones who continue to get the shot. >> let me put it differently. americans would say yeah, i think the government should help out with healthcare. yeah, i think the government should--boy, community college making it free. that's perfect. that helps the middle class. yeah i think we should be much more generous on retirement program. all those things cost money. so what we have to say the most americans would say i support all those things.
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okay now it's going to cost the federal budget something or it's going to cost the city government something. we need a revenue stream to do this. so then we need to discuss the revenues. we have to be serious here. many of the european countries a lot of their revenue come from value-added taxes. taxes that every consumer pays. they're not particularly progressive taxes at all. but the system that they build around that revenue is very progresssive and really helps the middle class. we then should discuss okay how are we going to pay for them? i think right now the opponents of this, rather than saying these things are good, we'll say the government is too big no tax increases no revenue increases, we'll reduce revenues you can't solve those problems without a serious discussion about revenue. >> ali velshi and laura tyson. up next, elon musk, a billion
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dollar investment, and now his ambitions are out of this world. that story when we come back. >> al jazeera, nairobi. >> on the turkey-syria border. >> venezuela. >> beijing. >> kabul. >> hong kong. >> ukraine. >> the artic. real reporting from around the world. this is what we do. al jazeera america.
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>> space exploration company space x now has more to reach its goals. investment should help google's plan to main internet connectivity on a global scale. and musk will have stiff competition. virgin company has just announced the i assume.
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ali velshi will have an interview with richard branson. it's not a bad idea to invest. $314billion global market that has predicted to double by 2030. ali velshi has more. >> it's a question too tempting for some tech billionaires and venture capitalists to ignore. >> it's a return on investment of a whole new world. >> rockets and spaceships, satellite and asteroid miners, and even 3-d printers, space is the new frontier for innovation. >> space is about two things. exploration and then it's about how do you go and exploit it and profit off of it. >> in the last four years the u.s. commercial space industry has experienced aor boom. global government spending on space is decreasing as the
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commercial sector grows. of the $314 billion global space industry the united states spends $74 billion in the united states. $17 billion goes to nasa. and $122 billion goes to commercial space products. $117.5billion goes no into space infrastructure. >> we will work with a growing array of private companies looking to make getting to space easier and more affordable. >> that's when president obama promised nasa $6 billion over the next five years to seed private space flight companies. >> that opened up a lot of opportunity for clever people ambitious people, business people who thought they could do things cheaper or faster.
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>> nasa spent $2.5 billion of that money by the end of 2014. >> almost every private space company that you look at right now in some way benefiting from nasa. >> in the name of creating a competitive market nasa has pumped an additional $7 billion into two countries space-x and boeing to make space ships into space by 2017. >> we're starting to understand the model by which we can expand our economy into space. >> nasa has also spent billions on contracts with space x and/or bittal scientist to launch cargo to the space station like an low orbit space freighter. >> they're looking at the schedule and reliability. >> but it does not always work.
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>> spacespace-x competitor orbital science had a set back. it lifted off with 5,000 pounds of cargo for the space station. we were there that night cameras rolling. the explosion range out like a sonic boom that ricocheted throughout virginia. the week of october 27, 2014, brought an one-two punk to the space industry when a rocket exploded and virgin galactic suffered the ultimate fail, a death of a pilot and crash and destruction of spaceship two. >> tell us what you heard yesterday. >> space is dangerous but it's not deterring entrepreneurs. >> i believe the first trillionaires will be created in space. the impetus is money.
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>> but it's also exploration. most entrepreneurs in the space industry have an united vision that was once relegated to space age cartoons to one day colony ize other planets like mars. >> i'm 100% certain that everyone will have a chance to go to space. it seems far off. it seems expensive but it all started with aviation. >> just as aviation was expensive and unreliable in its infancy, so, too is space industry. the biggest hurdle of all reducing the cost of launch. the cheapest option is the falcon 9 rockets which costs $60 million per launch, half the cost of its competitors. >> we still launch into space using the same technology that sputnik was launched into space on. >> but they're working on a reusable rocket that lands again after lift off. it could revolutionize the
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commercial space industry by dramatically reducing launch costs. >> i don't see how this so-called commercial spacekter is developing is necessarily going to provide a decent return on investment. >> linda billings sites ronald reagan's state of the union address in 1984 when he announced big visions to gain support for plans to build the international space station. >> in the zero gravity of space we could manufacture in 30 days life-saving medicines that take 30 years on earth. >> it would be wildly successful and hugely profitable and they have not come to pass. >> but many entrepreneurs say it's a different game now. americans got to the moon with less technology than is in a typical iphone. >> we wear more computers than we had that enabled us to get to the moon. >> now that it's in the hands of private companies the sky so
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to speak is no longer the limit. >> ali velshi reporting and that is our show for today. i'm david shuster in for ali velshi. for everybody here for "real money"," thanks for watching. >> this is al jazeera america. i'm john siegenthaler in new york. yemen deal. an end to the standoff and leaked evidence of a conspiracy. al jazeera exclusive. president obama can he turn a rousing speech into reality. new era high level talks in havana. at u.s. and