Transcripts For ALJAZAM Real Money With Ali Velshi 20140523

ALJAZAM Real Money With Ali Velshi May 23, 2014

This is real money, and you are the most important part of the show. Tell us what is on your mind by tweeting us. Also facebook. Cities or suburbs since 2011 americans have been moving to cities at a faster clip, a reversal of a trend favouring suburbs for a century. Numbers released by the sepsis bureau shows Growth Continues to outpace growth in the suburbs. Here is the thing. The gap is shrinking, suggesting that suburbs are poised to take the lead. In 2013 American Cities grew by 1 cam paired to 2012. Fractions of a per cent means a lot. Americas population is up to 360 million. Lets look at the maths. In 2013 the fastest populations were in the big cities. In numbers, new york city led the pack, adding 61,000 people. Houston, los angeles, san antonio, texas, phoenix, arizona followed adding between 25,000 and 30,000. One big city outlayer was chicago, the thirdlargest by population, only adding 5,000 people last year. That is still beating detroit, which actually lost almost 10,000. Now, the five Fastest Growing suburbs are on the map. The biggest population spirits were in communities in utah and texas. Around the texas state capital austin got the capital for population growth title. In san marcos it rose by 8 . Cedar park 5. 6 . Fridays coe near dallas, 6. 5. Two burbs outside Salt Lake City added 6. 1 and 5. 5 . Middle class americans are moving to the inner sis to live. Long neglected corridors from los angeles to chicago are being develop. Suburbs have appeal space, backwards and good public schools. Lets look beyond the city versus suburbs and understand the economic reasons that some areas of the country attract areas in droves, and others lose ground or run in place. We go to a state expected to enjoy solid growth, arizona. Joining us from phoenix, is lee, professor of economics at the Arizona State University School of business. Welcome to the programme. Is this a case that the drivers of the population being jobs, and is that why we see this in the southwest . You know, this is one of the Major Research questions that academic economists studied for years and years. Is it jobs following people or people following the jobs. Its chicken and egg analogy. I think what we see now is the recovering continuing to pick up some speed. We are seeing people following jobs, and the states that seam to attract population are the states that are adding jobs at the fastest clip. Thats why you see texas and utah in there. I was going to say the recovery was pronounced in the south and west. All 15 of the nations Fastest Growing communities were in the south and west. Thats right. What we are seeing is a return to a growth pattern that has really existed in the country for the last five or six decades. The west and the southeast have led growth in the United States, and all of that came to a sudden halt in the recession of 2008 2009. Because all that growth, of course, was accompanied by single family, multi family and commercial building, all of that coming to a stop, and states like georgia, for example, arizona, being one of them, suddenly slowed down. But now all that it reversing and we are going back to a model where we see the west growing rapidly, and i would expect to see the southeast coming on strong in the next 23 years. In the meantime in the pacific northwest, seattle, when you look at the top 50 popular cities, seattle grew at heightest rate and is close to reentering the top 20, what is it that seattle has, that say a place like cleveland does not . When you analyse what is driving the growth, you have to recognise that in the last 23 years, we have seen strong growth in the knowledgebased jobs. Areas like austin texas, seattle, denver are wellknown for the Knowledge Based jobs, and that is attracting a lot of people that are looking for these good highpaying knowledgebased jobs. For every knowledgebased highpaying jobs, there are indirectly related service jobs. What is the approximate ratio . You are right. The highpaying jobs are the drivers of growth, and, for example, when you look at Web Development jobs, every 10 Web Development jobs would support industries. These web jobs are they sustainable. A lot of these cities experienced the tech bubble and burst. Is this something that can provide longer term growth than a lot of places have seen in the past . You know, i think definitely those high tech knowledgebased jobs are here to stay, and, you know, look around the country. And you find that the areas that are doing level, income growth, population growth, housing coming back, its tied to the knowledge jobs now. Yet there are cities in detroit, cleveland, memphis, baltimore, attracting hightech jobs, but the four cities lost population. How come . One of the things going on is we have the millennial generation has different just a different perspective on what they want out of their career, where they want to live. For example, we saw just last year something in the range of 1517,000 people moved right into san francisco. Into areas that are quite dense, where you have housing that is has no suburban look to it at all, but it offers all the amenity of downtown living, and those cities that are most attractive and really seem like a hip destination for young people, those are the cities that will be growing over the next five years, i think. A professor of economics at the kerry school of business at Arizona State university, thank professor. Thank you. It may not have been gangbusters, but april was the level month for home sales. A Realtor Group report said that sale of homes rose 1 in march, the first increase this year, as inveptry picked up, the rise in home prices cooled off. Spring is a crucial time for the Housing Market as families look to move to a home and new School District in time for the school. Americas energy boom is producing oil and gas. We are still getting hit with a price hike at the gas pumps, in time for the driving season. Well look at why coming up well head out on the highway for a look at a Great American brand. Harleys are freedom, a way to express yourself. Its an iconic name plate like the Harvey Davison name and shield but the level part the chicks dig it. There are challenges for the company down the road. That story and more as real money continues. Al Jazeera America presents the system with Joe Berlinger mandatory minimums are routinely used to coerce plea bargains mandatory minimums the whole goal is to reduce gun crime, now weve got people saying this isnt fair. Does the punishment always fit the crime . Had the person that murdered our daughter got the mandatory minimum, he wouldnt have been out. The system with Joe Burlinger every saturday join us for exclusive, revealing, and surprising talks with the most interesting people of our time. Abe foxman well fight for your right to be a bigot. If you are a bigot, youre gonna pay a price. Holocaust survivor and head of the antdefamation league. Theres an awful lot of hatred floating out there. And ending discrimination. As long as the children arent educated, its gonna maintain. Talk to al jazeera only on Al Jazeera America ladies and gentlemen, start your engines are. A memorial day weekend is about to kick off. 36 million americans will take trips, most by car, filling up the car, s. U. Vl, pick up. For the third year in a row the National Average will be 355 a gallon. Higher prices at the pump put now theres another factor pushing prices up. Increased exports of gasoline. Marie snow has the story. Reporter every year its the same story. Gas prices are heading up. Gas prices are higher. They are creeping up. Reporter come spring prices surge as consumer demand increases with the approach of the summer driving season. This year rising prices are driven by more than chevy chase stale vacation. Expected. Reporter as the energy boom takes hold new pipe lines are delivering oil to gulfcoast refineries where its converted to gasoline. With demands slowed, refiners are looking for markets abroad, where gasoline prices are higher, creating global competition for u. S. Fuel. We are seeing developing countries china, india, they are using petroleum products, and that makes Prices Higher in the United States. Despite an export ban that limits u. S. Crude oil sales overseas, Petroleum Exports have soared. Largely buoyed by gasoline and diesel. Investors are betting gas prices stay high and supplies at home are low levels. Pretty much all the surplus supply in the United States is shipped overseas in the form of export money. A resurgent demand for higher. When they are working more, we are seeing disposable income. They are out on the weekends doing shopping, travelling. Theres a correlation between more people working and driving. And that can further drive up prices. Triple a forecast gasoline prices to average between 3. 55 and 3. 75 compared to a price of 3. 58. That is below prices in europe. In france the average price for a gallon of gasoline is 7. 90. 8. 21. The u. S. Is catching up to the rest of the world, paying what everyone else is if gasoline prices creep higher, American Households will likely cut back on spending, having greater implications for the economy. Thats according to the chief economist at standard pors and joins us from their office. Talk about the Economic Impact that you foresee based on the way gas prices are going . Unfortunately we had a lot of experience with this, what happened in seven when oil hit 147 and gasoline to 5. Last year we had it. This year we are looking at first, we have to say that the u. S. Households are fuel efficiently than they were in the past. Energy consumptions as a personnel of personal income is 5. 5 , blow the 8 level seen in 1982. But still, its going to hurt. If we see gasoline prices get closer to 4 a gallon. Across the u. S. What you are going to see is people carpool, sharing the ride to work. People will start to double up on errand. Dont take the trip to the mall unless you have two more errands to run. In the Holiday Season people will be cautious about take the the trip or vacation, maybe they will not go to california from new jersey, maybe theyll just go to the new jersey shore. The caution could dampen the economy. Is it a good sign for the economy that theres more demand for gas, and that may cause prices to push higher. I think one good peace of news is the u. S. Economy is holding up well. We have gone if when this happened in 2009, or 2010, we were going in to the worst recession since the great recession. It was hard to withstand. When it happened a few years ago we were at a weak recovery. This year we are coming out of that weak recovering and i expect growth ahead. We have more jobs, 200,000 job gains her month last year and more this year. I think we are seeing jobs coming back, and that means a bit more comfort at home. It was intriguing to hear you mention a figure about gas efficiency and americans becoming more efficient. Is the trend continuing regardless of where gas prices are going . I think it will increase. When gas prices go higher, people who are looking for a new car what do they do, theyll look for a more fuel efficient car, and a smaller car. We have seen that in previous environments when gasoline prices shot up higher. People think, ill be a little more fuel efficient, maybe the number of 5. 5 of energy as a share of personal income, maybe it will dip lower. Does the number drop if gas prices dont go up. Is there a trend right now even if prices stay the same, for americans to look for greater gas efficiency . Well, we certain are enamored with electric cars, we are enamored with hybrid cars, for example, all those things. We dont have the infrastructure to support that on a major level. I think that americans, as much as we like to be fuel efficient, we like the big hum veries. We like the humvees and riding in the jeeps. I wonder if americans are less concerned about where gas prices are headed given the reports that gasoline is around 3. 65. Its not as bad. I wonder if theres not going to be as much exact on the economy as otherwise. I see your point. Theres a psychological threshold where households, americans go oh, my god. I dont think its 3. 65 a gallon. You have to look at Something Like 4. 25 or 4. 50 to start to spook the American Household across the u. S. I do think that 3. 65 will hurt when you go to the pump. I think well survive it and i dont think it will change the lifestyle. Good news. Chief economist for standard poors, thank you for coming on. Say goodbye to the familiar gas station scenes. A retail arm sold by the largest gas and retail sold to Marathon Petroleum in a deal worth 3 billion. Marathon owns the speedway changes. So theyll be rebranded. Hass is slimming down to focus on finding and drilling for oil. Part of its Retail Operation lives on. It will sell its popular toy trucks. Theyve been a holiday gift tradition in the northeast. The toys will be sold online starting next year. Call it the great train blunder in france the staterun rail service bought a fleet of passenger trains for more than 20 billion. Here is the problem. They are too wide for the older train stations. Almost 1300 station platform, like the one here, need to be shaved so the new trains will fit. The total cost running 68 million. Oh, dear. The middle class was hit hard during the session, and the middle class jobs is a fragile part of the economy. Well take a look. And an iconic brand selling more than motorcycle, but the outlaw brand in it. We look at rarleydavidson when we continue. Investigating a dark side of the law they dont have the money to puchace their freedom. For some. Crime does pay. The bail bond industry has been good to me. Ill make a chunk of change off the crime. Fault lines. Al jazeera americas hard hitting. Theyre locking the door. Ground breaking. We have to get out of here. Truth seeking. Award winning, investigative, documentary series. Chasing bail only on Al Jazeera America on techknow. Im at the National Wind institute, where they can create tornados. A greater understanding. We know how to design for the wind speeds, now we design for. Avoiding future tragedies i want a shelter in every school. Techknow every saturday, go where science, meets humanity. This is some of the best driving ive ever done, even though i cant see. Techknow is there an enviromental urgency . Only on Al Jazeera America a mixed picture for the job market. The Labour Department says the number of people filing for firsttime jobless benefits rose by 28,000, the largest weekly gain this year. But there is some reason to be optimistic. The number of workers drawing continuing Unemployment Benefits fell by 13,000 to the lowest level since december 2006. The National Jobless Rate last month fell to 6. 3 . With all the data out there, its hard to get a read on the health of the labour market. Ali velshi spoke with moodys chief economist and asked him to situation. Im glad to be in a world, mark, not like the one you and i talked about in 2008 and 2009, when all Economic Indicators showed one thing, and it was all bad. We are in this weird economy where theres Economic Indicators showing a strong economy, and others that show a weak or weakening economy. What is your sense of where we are when you take it altogether . Much, much better. For me the level statistic is job, and how many jobs we are creating. On a monthly basis we are creating well over 200 jobs just for context. In a typical time to maintain a stable rate of unemployment. We need half the amount, 100,000. In the recession, the 08 09 we are losing several hundred. We have come a long way from where we were. The level measure jobs is indicating where all the trend lines are pointing in the right. Its a good top job measure, creating more jobs is better than creating less. Once we are into the gain of 200,000 plus on a monthly basis, we are compelled to look deeper and talk about the quality of the jobs. Its a common trope that we replaced and we do in we sessions we replace good quality jobs with lower paying, possibly parttime jobs. What is your sense of that . Its a good point. Since the recovery five years ago the preponderance of job creation is among lower paying occupation and jobs, in retail, leisure hospitality. We have seen good job growth in highend occupations, some of the technical skilled work that is out there. Its middle income jobs that are crushed. A lot goes to the losses and anything housing related. It goes to the declining government jobs. All government jobs, k through 12, all the the jobs are middle paying, and they have been hammered in the last five years. Middle paying jobs creating middle class families, consuming, educating the kids, paying taxes, pay down deficits if governments manage that properly. Are you worried, is there a longer term implication to the created . Yes. No, im worried. I think theres a cyclical component. We will get housing back. It will create paying jobs. The government job losses are coming to an end. State and local jobs are doing better, some faces are hiding. Longer run i worry a lot. A lot of the middle paying occupations will be wiped out by technology. If people dont have the right skills and education they move to lower paying jobs and not the higher paying one. We need to do a better job of educating and providing the skills and training that our workers need to lose the jobs, so they go up instead of down. Who does that . When you say we

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