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CNNW Your Money June 10, 2012



nevada and florida the unemployment rate is higher than the national average. in nevada and colorado, the unemployment rate is still above what it was when president obama stepped into the white house. but in the rest of the battleground states it's pretty interesting. the jobs markets are improving. they have been improving since when the president became -- went into office. still improving, iowa, virginia, nevada, all have pretty low unemployment levels. 5 pst in iowa, new hampshire 5%, virginia 5.6% and in ohio with 18 electoral votes, much more than iowa and virginia combined, significant drop in the unemployment rate 7.4% over the past year. >> 48th in the nation to much higher than that. it's a very interesting story, ohio, big manufacturing auto, this is one of those places where mitt romney had said don't have that auto bail jautout. nobody wins out ohio and mitt romney will have an uphill batter there. >> this is showing you population centers. some of these areas where president did well last time. this is the poll thalg we have right now. the most recent polling for this presidential race, you have obama with 48%, romney with 42%. even though the unemployment rate has been coming down there, auto bailout issue, very, very critical, you still have president obama with 6 point lead over mitt romney. no question, no question, even though the unemployment rate is improving in ohio, this is still going to be a very important swing state for the president. >> thank you, christine. we're joined now be john casic of ohio, taking time between presentation so he's come out in the hall and just to talk to us. governor, thanks for being with us. listen, i don't see how voters in ohio, many of whom who are auto workers, union members, manufacturing workers alienated by governor romney's opposition to auto bailout are going to hand your state to governor romney. without ohio, most people don't get to the white house. why am i wrong about this? >> well, i think ohio is going to be very close. there isn't any question about it. but the fact of the matter is, ohio has grown now about 73,000 jobs. we're really pleased with the growth with the auto industry. but it's been about net of 700 jobs grown out of 7,000. so i think what's happening in our state is people are somewhat more optimistic. our credit ratings are up. we have surpluses in our budget. jobs are being created. i think the issue is going to be who can make the best argument to help ohio to continue to be successful and get the win at our back. i think that's what americans are worried about. i'm worried that we have the wind in our face because of uncertainty in our state that's being brought to us from washington. >> well, i tell you, this fortune magazine article republican governor with an obama like jobs plan. you believe that there's a roll for government to play in creating jobs and overcoming these head winds. >> well, look, i mean, don't read too much into things that are written in other publications. let me tell you this, we offer incentives to companies when it's appropriate. but that's not what gets companies into ohio. what really is the bottom line is we have now created an atmosphere with lower taxes, balanced budgets, streamlined regulations. that's what businesses are looking for. they're looking to go somewhere where they can have confidence they can have certainty. that's what's happened in ohio by cutting taxes, balancing budgets, running surpluses, streamlining regulations. that's what's really helped us. at times it's necessary for us to offer some incentives. but every state in america does that. that's not why we're the number one growing state in the midwest and number six in the country coming from 48, we have followed a policy of making government work better, of lowering those taxes, balancing those budget and getting our credit upgraded so businesses feel more comfort nbl ohio. >> what's your sense on the manufacturing front because it continues to be a big problem. what has to has been high oil prices, wage control os, is it the kind of thing that happened in wisconsin? what has to happen? >> no. i mean -- well, first of 5u8, we have to get a certainty out of washington. you can't be turning around telling people you're going to raise their taxes. we have this huge amount of debt. it's created uncertainty in everything. but, you know, look, we embrace manufacturing in ohio, not just auto manufacturing, although we love it, we also embrace the make manager of pipes and pumps for the energy industry, unmanned vehicles, ability to build them. it's diversified. that's the key to it. we can use our location. 600 miles within 60% of the country and place where businesses can be safe. all in costs, ohio starting to win. we're starting to get some companies come from other countries and some companies come from other countries and invest in our state. >> you're not as troubled by the unemployment numbers as some republicans would like everybody to be. >> oh, i'm very upset about the unemployment numbers because it means that people are out of work. look, our unemployment has come down. we've created these 73,000 jobs. whatever it is. but 73,000 like 300, but that's not good enough for us. our unemployment is way too high. we need to continue to bring it down because when people are out of work, it really hurts families. so i'm extremely unhappy with where the unemployment. we're make problem. now we're number 6 from 48. there's reason to feel good about that. but not to feel great because there's still too many families out of work in our state and in our country. >> governor, i know you have to run to another commitment. thanks for taking time to talk to us. governor john casic. >> i'm glad to talk to you. thank you. >> coming up next, just talking about it big win for wisconsin governor scott walker in the state's recall vote. but who was the biggest loser in this thing? we'll take a look. later, it doesn't matter where you live, still paying for new york's latest and most expensive subway line to be built. what's goes into building a subway. i went underground. we'll find out. 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>> well, really like to say he survived the recall. remember, this is the recall process. he's the only third governor to go through this humiliating process. after spending over 50 million dollars, after having his favorability ratings permanently lowered, after having the worst job creation record in the whole united states, he's dead last. he gets the serve out the next couple years of his term. he would have been better off trying to work with us and create jobs rather than destroy everything as he did. if you looked at governor casic who was on a little while ago with you, after he stopped making war on his employees, the state started to move ahead a little bit. soy think that's what governor walker should now do, look at ways to work with us to create jobs rather than making war on his employees. >> sounds reasonable. let's bring in steven moore, you say that governor walker's victory is very clearly a black eye for unions who were supposed to mobilize all these voters to come out and see him defeated. what do you think about richard says? should he now move on and actually try and deal with them. do you think these unions need to keep going? >> this was a tough week for the unions. not only did they lose in wisconsin, richard is right, republicans spent a lot of money to try to make sure that walker survived by the unions spent a bunch of money too. also, don't leave out california and san diego and san jose t voters voted for cutting back on some of these pensions because the pension issues one of the big issues around the country in terms of the fngss of state and local governments. i think this was a tough week for unions and i would say to richard, sir, you know there's an old saying when you shoot at the kitty, you better kill him. now scott walker survived lot of other governors, hey, you can take on the public unions and live to tell about it. >> you know, ally, it's sort of amazing. when we beat john kasich in ohio with 62% of the public vote, nobody said that was the end of the republican party. what we said now now john kasich, after we beat him, he ought to come together and work wus to create jobs. we sent these politicians to go into office to create jobs. scott walker actually deceived the american public in wisconsin when he first said that this attack on workers was about an economic reform because it wasn't. those workers when they saw a real problem, every single time have been willing to pitch in, to give something back when it's a real problem. when it isn't a real problem, we will fight to have fair treatment, just like every other american. that's the american way. >> can i say this? i think this is important. i don't think this is just about unions. i think it's about public sector unions. the truth is as you know, richard, the public sector unions all the growth of the union is they're getting benefits and retirement and health care much higher than private sector unions get and ordinary americans get. i think one of the reasons scott walker survived is for a lot of wisconsin people, it was an issue of fairness. why should public employee unions outsized benefits much higher than a plumber or someone else living next door to them that's also in the middle class. >> just to be clear here, before you answer, richard, i want to bring our viewers up to speed, unionization more higher perjury of public sector workers are union niezed than. >> i think steven is absolutely wrong about the numbers. public sector workers don't get more. when you look at @ study after study, they get a fair shake. i can't believe, of course he's from the wall street journal, i can't believe when a ceo gets 380 times more than somebody that the average worker, steven's paper himself cheer that and said, that's economic, that's great capitalism, that's fair. it isn't fair. they make too much. he doesn't say a word about that. >> what did he say about that snooechb. >> let me finish ali. what he said is un-american. what it used to be is we would look at somebody who doesn't have a pension and we would say, what do we have to do to get them a pension? steven wants to stand america on its head and say, look, they have a pension, let's take that pension away from them. he doesn't say that about ceo's. he doesn't talk that about the talk -- >> richard? >> you're both in charge. >> you're putting words in my mouth. i think workers should have a pension. it's part of a fair pay package. let you take illinois home state. pension crisis as well. >> you're talking about -- let's talk about illinois for minute a. teachers retiring at the age of a 5 with 100 thousands a year pensions. that's happening in america and it's not affordable and taxpayers saying, wait a minute, we can't afford to give somebody 20 or 30 years with pensions benefits that are sometimes twice as high as what the private sector worker is receiving. >> here is what i say to you, if there's a legitimate problem, we're willing to work to solve the problem. but everybody should solve the proob. you shouldn't be able to have the 1% continue to haul away more money than a dump truck haul away and say to rk woing people, you need to sacrifice for less so they can have more. >> here is something we can latch on to, the fact is that there are many people in america who think it's not a fair deal. you have said, steven, that you think unions contaminate everything they've touched. maybe you're right, maybe you're wrong. what do you do for people who think they're not getting a fair shake and that the 1% are loading it on to a dump truck lots of americans think so. >> i want a rising economy that helps all workers. i don't think that's going to help the average american worker. when it comes to this issue of unions, what i meant when i said they contaminate thing, think of the major steal companies, auto companies the postal service, state and local governments these are all institutions that are going bankrupt. you have to ask the question, are you yoon ons still relevant today? are they still necessary. the private sector, richard, as you know, only about 6 or 7% of workers are in unions. all the growth of unions in is government. >> here is what i know, when ever we had collective bargains the corner stone of a balanced economy. when we had 35 or 40% of the american workers in collective bargaining, the level of inequality of this country was going down. the level of wages for everyone was rising. as collective bargaining went down, inequality went up and the 1% did really great. stars let me give you one example how he overgeneralizes. you ask a u.s. steel worker to compete with a middle that was made in 1809 and mill that was made in 1980 that was part of the world that they were competing in ch h most productive they had. the american work sers the most productive and when we work together with our employers, nobody can beat us. >> he ought to be advocating workers and -- >> richard, you and i agree we need more capital investment for this country so we're creating jobs in usa. >> i think this will be an excellent place to end this discussion. always a pleasure to have both offyou here. richard is the president of aflci orc. steven stay right there. president obama calls it the do nothing congress. senate majority harry reed agrees. >> we can no longer go through this every bill. filibusters on bills that they agree with. it's a waist of time to prevent us from getting things done. >> why can't congress get anything done? anyone who says blame the republicans is going to have to answer to steven moore next on your money. 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[ male announcer ] new icy hot arthritis lotion. powerful encapsulated menthol gets icy to dull pain, hot to relax it away. power past pain. you find yourself asking, what happened to moderates in the united states? where have they all gone? the american public is more polarized than at any point in the last 25 years. that is according to a new research -- new survey by the pew research center. 2012 value survey. more divided along political lines than they are by race, religion or gender. no sur price then that such a fiercely divided electoral elected a congress that pride itself on making no attempts at bipartisan solution. norm is a resident scholar at the conservative institute he describes himself as a sen tryst. his new book is titled it's even worse than it looks, how the american constitutional system collided with the new politics of extremism. steven moore is back with us as well. he calls hymn conservative and i believe he is. norm, it takes two sides to compromise. you say congressional republicans deserve the blame in this highly partisan environment. why? >> that's right. i have to say it's not 100% in that direction, but at this point it's 80/20. if you look at the response of the last three years, we've had basically a congressional party, republican party that's operated as a parliamentary minority uniting against everything including on ideas that they have supported in the past because they're not promoted by the other side. that's different from what we've seen before. it's different from the way democrats reacted when george bush became president. it's ma tast sizing out as the survey shows to the rest of the country. >> steven, watch this exchange between republican speaker of the house john boehner and leslie stall on 60 minutes. this was taped shortly after the 2010 midterm elections. listen. i am not going to compromise on my principles nor am i going to compromise the will of the american people. >> you're saying i want common ground but i'm not going to compromise. i don't understand that. i really don't. >> when you say the word compromise, a lot of americans look up and go, they're going to sell me out. so finding common ground i think makes more sense. >> you're afraid of the word. >> i reject the word. >> wow. steven, you were with me last week when we spoke to you amy gutman, written a book called the spirit of compromise. like norm said, we have list that fabric. you as a conservative -- it doesn't go hand in hand that because you're conservative you don't want to compromise. why is boehner saying that? we've heard frit lots of republican looet leaders. >> with all do respect, i do reject norm's thesis, it takes two to tan goe. if you're going to compromise, both have to do so. the stimulus plan, there was nothing in there, norm, as you know that republicans would want. obama just dropped in their lap. >> 40% were tax cuts thanchts those are not the tax cuts. >> chuck grassley. >> the other one was obama care and the same thing. those were the two issues by that president obama passed tli the house and senate with not one single republican vote and it's the republicans that are being partisan. look, i do think there's room ali in washington for common ground. i think we can get together in fixing this entitlement crisis that everyone knows happened. everybody knows we have to do something about medicare, medicaid, social security. we can get together and get a deal between republicans and democrats on fixing the tax code. >> everybody talks about it. >> it can happen. >> norm, last week when we had amy gutman on she referred to the simpson boles commission. americans were looking for compromise on tackling america's debt and deficit and took some hope in they by partisan simpson boels commission and they faded away when president obama refused to back his own commission's recommendations. other presidents have faced opposition from congress before. how much of this republican/democratic not getting together,

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