Skip to main content

tv   Real Money With Ali Velshi  Al Jazeera  November 4, 2014 2:00am-3:01am EST

2:00 am
>> the conversation >> the conversation continues, continues, on twitter @ajconsiderthis and on twitter @ajconsiderthis and you can tweet you can tweet me me get ready america, the polls get ready america, the polls open in a matter of hours, and open in a matter of hours, and the economy is the economy is issue number one. issue number one. i'll explain why people could i'll explain why people could vote differently than people who vote differently than people who count on their investment count on their investment portfolio. portfolio. also to the victor go the also to the victor go the spoils, i'm looking at the perks spoils, i'm looking at the perks and pay to winning a seat in and pay to winning a seat in congress. congress. and i'll tell you how alcohol and i'll tell you how alcohol sales could change the game for sales could change the game for a lot of businesses in alabama. a lot of businesses in alabama. i'm ali velshi. i'm ali velshi. this is "real money." this is "real money." ♪ ♪
2:01 am
america goes to the polls america goes to the polls tuesday, and the economy remains tuesday, and the economy remains the overriding concern for the overriding concern for voters. voters. a poll finds job creation and a poll finds job creation and economic growth are the most economic growth are the most important factor for 41% of important factor for 41% of voters in congressional voters in congressional elections. elections. this is the highest of any this is the highest of any single issue out there. single issue out there. let's assume you just arrived on let's assume you just arrived on earth from mars, and i tell you earth from mars, and i tell you since the last election, the since the last election, the u.s. u.s. unemployment rate has unemployment rate has dropped to 5.9%. dropped to 5.9%. america has created a fairly america has created a fairly healthy 192,000 jobs every month healthy 192,000 jobs every month since then, but you the martian since then, but you the martian might reasonably think that might reasonably think that americans are happy. americans are happy. and economic growth 3.5%. and economic growth 3.5%. this all looks pretty good, but this all looks pretty good, but welcome to america, martian, the
2:02 am
welcome to america, martian, the same poll shows that just 36% of same poll shows that just 36% of americans, of registered voters americans, of registered voters are satisfied with the state of are satisfied with the state of the economy. the economy. 64% are not satisfied. 64% are not satisfied. the reason for this gets to the the reason for this gets to the heart of what is happening in heart of what is happening in america now and what has been america now and what has been happening for the last several happening for the last several decades. decades. it is a story of continued it is a story of continued growth in income growth in income inequality that inequality that this chart makes clear. this chart makes clear. since about 1970 the paths of since about 1970 the paths of the rich and the rest of us have the rich and the rest of us have diverged. diverged. the top 5% has seen their income the top 5% has seen their income grow at a rate that has vastly grow at a rate that has vastly outpaced the median. outpaced the median. look another the difference look another the difference since about since about 1970. 1970. all the way back from 1970 and all the way back from 1970 and back, people's income was back, people's income was growing at about the same rate. growing at about the same rate. the reason for this growing the reason for this growing disparity include huge pay gains disparity include huge pay gains for for
2:03 am
highly educated workings in highly educated workings in technology, and the loss of technology, and the loss of good-paying jobs in good-paying jobs in manufacturing. manufacturing. this happened as america this happened as america outsourced outsourced jobs to lower-wage jobs to lower-wage companies. companies. and wages have and wages have stagnated. stagnated. median household income in 2015 median household income in 2015 was 8% less than it was in 2007, was 8% less than it was in 2007, right before the recession once right before the recession once you adjust for inflation. you adjust for inflation. but the rich don't rely only on but the rich don't rely only on wages. wages. in fact many of them don't rely in fact many of them don't rely on wages at all to create on wages at all to create wealth. wealth. and they have made out great as and they have made out great as the stock market surged. the stock market surged. nothing explains it better than nothing explains it better than this chat. this chat. it shows that americans in the it shows that americans in the top 10%, that's this green top 10%, that's this green bubble, the top 10% of the bubble, the top 10% of the income pyramid control 63% of income pyramid control 63% of all financial wealth. all financial wealth.
2:04 am
so they are the ones who have so they are the ones who have raked in the lion's share of the raked in the lion's share of the $22 trillion gain in net worth $22 trillion gain in net worth from financial assets like the from financial assets like the soaring stock market since the soaring stock market since the end of the recession. end of the recession. the top 10% control all of the top 10% control all of financial wealth, this 63%, as financial wealth, this 63%, as financial wealth financial wealth include include - increases as well. - increases as well. so that's why so many americans so that's why so many americans remain dissatisfied with the remain dissatisfied with the economy. economy. joining me now is kevin haset, joining me now is kevin haset, he has served as an economic he has served as an economic advisor to several advisor to several presidential presidential candidates from george w. bush candidates from george w. bush to mitt romney. to mitt romney. he joins me now from washington. he joins me now from washington. kevin good to see you. kevin good to see you. i want to give my viewers a i want to give my viewers a sense as they -- as they head to sense as they -- as they head to
2:05 am
the polls of what -- you know, the polls of what -- you know, in these elections it all in these elections it all becomes about a horse becomes about a horse race, we race, we don't hear as much about policy don't hear as much about policy as we would like to. as we would like to. what is good conservative policy what is good conservative policy to deal with the issue i just to deal with the issue i just discussed? discussed? >> right. >> right. well, i think the history of well, i think the history of economics shows wages can only economics shows wages can only go up if you make people more go up if you make people more productive. productive. if we try to pay people way more if we try to pay people way more than their productivity, our than their productivity, our business is going to go out of business is going to go out of business, so if you see if business, so if you see if stages are stagnating, then you stages are stagnating, then you have to ask yourself the have to ask yourself the question, well, why are the question, well, why are the wages stagnating? wages stagnating? and the answer is that the and the answer is that the workers are not getting enough workers are not getting enough capital to work with that they capital to work with that they are way more productive which are way more productive which drives up their wages. drives up their wages. and that gets back to why isn't and that gets back to why isn't the capital really soaring here the capital really soaring here enough to drive wages higher, enough to drive wages higher, and the answer is we're the and the answer is we're the highest corporate tax place in highest corporate tax place in the developed world, so people
2:06 am
the developed world, so people are putting their machines in are putting their machines in other countries. other countries. and i think you are exactly and i think you are exactly right. right. it's kind of interesting. it's kind of interesting. it's almost a puzzle that except it's almost a puzzle that except for that winter quarter, we have for that winter quarter, we have had gdp growth in the 4s had gdp growth in the 4s or or 3.5-ish, so gdp is looking 3.5-ish, so gdp is looking great, yet people are really great, yet people are really really unhappy. really unhappy. and they are going to punish and they are going to punish democrats for sure. democrats for sure. wages aren't keeping up, and wages aren't keeping up, and they current keeping up, because they current keeping up, because the democrats are willing to let the democrats are willing to let earth. earth. >> that this has been going on >> that this has been going on for administration after for administration after administration. administration. are you suggesting to are you suggesting to methot -- the concern i have methot -- the concern i have though, is there seems to be i though, is there seems to be inequality inequality in rate creation than in rate creation than it has been in the past. it has been in the past. if you have access to capital or if you have access to capital or credit you have done fine in the credit you have done fine in the last five years. last five years.
2:07 am
>> right. >> right. but when you are talking about but when you are talking about inequality, if you look at inequality, if you look at income before taxes and income before taxes and transfers, then that is getting transfers, then that is getting much much more equal, much much more equal, president president obama increased marginal taxes a obama increased marginal taxes a lot on lot on small businesses and small businesses and people's wages, and transfers people's wages, and transfers have gone up enormously. have gone up enormously. and you'll find it is not and you'll find it is not getting more getting more unequal, but we are unequal, but we are doing it with lots of taxes that doing it with lots of taxes that may not be may not be sustainable. sustainable. >> >> so that a different way. so that a different way. you are saying that in fact when you are saying that in fact when you deal with all of the things you deal with all of the things that are in place to ensure that that are in place to ensure that some of the lowest earners in some of the lowest earners in our society have been -- certain our society have been -- certain benefits that the wealthy don't benefits that the wealthy don't have, that it looks more equal have, that it looks more equal than the chart i just showed? than the chart i just showed? >> yeah, the tax rate for people >> yeah, the tax rate for people on the top has gone from 35 all
2:08 am
on the top has gone from 35 all the way up to 44.6, and we have the way up to 44.6, and we have really really expanded our really really expanded our transfer programs and over the transfer programs and over the decades expanded decades expanded things like the things like the earned income tax credit, so all earned income tax credit, so all in, if you look at what the in, if you look at what the government does, you find government does, you find inequality isn't getting worse inequality isn't getting worse because of all of these because of all of these transfers. transfers. so the right thing to say is are so the right thing to say is are we doing enough transfer? we doing enough transfer? and if you are going to assess and if you are going to assess that, then you need to that, then you need to look at look at what the distribution of income what the distribution of income looks like. looks like. and knowing and knowing you, ali, you'll you, ali, you'll have this chart ready for people have this chart ready for people in 30 minutes. in 30 minutes. >> the issue i have got is i'm >> the issue i have got is i'm not as worried about the least not as worried about the least among us, because i think we among us, because i think we have policies in have policies in place that deal place that deal with them. with them. where i see the problem is where i see the problem is families who are roughly around families who are roughly around the median. the median. they are not wealthy enough to
2:09 am
they are not wealthy enough to benefit from the idea of having benefit from the idea of having their assets grow in the same their assets grow in the same way, and having a big stock way, and having a big stock market gain -- and i'm showing market gain -- and i'm showing my viewers that right now. my viewers that right now. that is the yellow chart. that is the yellow chart. they are not the worst among us, they are not the worst among us, and they are not the wealthiest and they are not the wealthiest among us. among us. if you are in the middle, that's if you are in the middle, that's where i see the most dangerous where i see the most dangerous stagnation. stagnation. that's -- the middle class is that's -- the middle class is what worries me. what worries me. >> right. >> right. and you are right to be worried and you are right to be worried about that. about that. and that's exactly why the and that's exactly why the democrats are likely to get democrats are likely to get trounced in this election, trounced in this election, because because it's the it's the median guy wh median guy whos whowhowho decides go whose to washington, decides go whose to washington, and the median guy is and the median guy is unhappy. unhappy. if there is an industry that is if there is an industry that is doing well, you see the wages in doing well, you see the wages in that industry start to go up. that industry start to go up. for example, if you are in a for example, if you are in a booming industry and you are a booming industry and you are a janitor, then you make more than janitor, then you make more than if you are in a failing industry if you are in a failing industry
2:10 am
and you are a janitor. and you are a janitor. so even within jobs the booms so even within jobs the booms profits can help everybody. profits can help everybody. but right now we're chasing all but right now we're chasing all of those profits overseas, so of those profits overseas, so those booms industries that those booms industries that could be driving up the wages, could be driving up the wages, are throwing their profits are throwing their profits overseas, and maybe helping the overseas, and maybe helping the middle wage of the country that middle wage of the country that is the target of their transfer. is the target of their transfer. but the guy and gal is a person but the guy and gal is a person with a job, with a job, a person who needs a person who needs more capital. more capital. and it's exactly correct that and it's exactly correct that neither party has made it their neither party has made it their top priority to cut that top priority to cut that corporate tax rate. corporate tax rate. one can hope that if the senate one can hope that if the senate changes hands to the republicans changes hands to the republicans that we'll have a chance for a that we'll have a chance for a grand deal, where the white grand deal, where the white house will have a republican house will have a republican congress that congress that wants the wants the corporate rate lower, president corporate rate lower, president obama says he wants the obama says he wants the corporate rate corporate rate lower. lower. hei h heir
2:11 am
heir -- harry reid won't passing -- harry reid won't passing anything. anything. >> kevin haset thank you for >> kevin haset thank you for joining us. joining us. i want to continue this i want to continue this discussion with peter koy discussion with peter koy joining us now to discuss how joining us now to discuss how income inequality may be income inequality may be aggravating the situation. aggravating the situation. you heard kevin say that you heard kevin say that inequality is not getting worse. inequality is not getting worse. and that chart is misleading in and that chart is misleading in that it is that it is pre-tax, pretransfer pre-tax, pretransfer income. income. if you show after taxes, and if you show after taxes, and after transfers, if you show after transfers, if you show what their wealth is, it doesn't what their wealth is, it doesn't show the same show the same gap. gap. >> it doesn't but there is still >> it doesn't but there is still a a major problem. major problem. janet yellen said that janet yellen said that inequality is one of the inequality is one of the key key
2:12 am
concerns she has as chair of the concerns she has as chair of the central bank. central bank. and it is a key concern. and it is a key concern. i do care about the people at i do care about the people at the bottom. the bottom. i feel their -- they are at the i feel their -- they are at the bottom. bottom. they are struggling the most, they are struggling the most, and, you know, here we're coming and, you know, here we're coming up on the holiday season, we up on the holiday season, we have thanksgiving, christmas, have thanksgiving, christmas, some of those people are going some of those people are going to find jobs, they are going to to find jobs, they are going to be the jobs with the awful hours be the jobs with the awful hours and awful working conditions, and awful working conditions, and when the holidays are over, and when the holidays are over, they will be out of work again. they will be out of work again.
2:13 am
things will happen. by kevin is putting a big emphasis on the supply side of the economy, which has to do with taxes, lower taxes, you increase the supply, people will put -- machines -- he kept coming back to the idea give the workers more machines and they can be more productive and make more money. the problem we're having right now is more on the demand side. we have a shortage of demand. >> sometimes people describe
2:14 am
that as overcapacity, too many workers, too many factories -- >> exactly. i have a cover story in bloomberg business week talking about how the economist died in 1946, and yet his prescriptions remain relevant today. so going back to kevin haset, he makes a lot of good points, but if you are a business and somebody says we're going to cut your corporate tax rate, i will say fine, i'll pocket the money. >> right. i'm not going to take the store shop. >> exactly. and what we have right now is a problem of oversaving. the amount of savings we have in the economy exceeds the amount of desired investment. in order to bring those in line, you have to increase demand, and when the business sector is hoarding, when consumers are struggling to pay down debt
2:15 am
rather than consuming, then the government needs to fill in the gap, and one of the obvious ways to do that is through infrastructure spending. i know you have addressed that in your program. >> at a time when there's no interest, we would benefit from this for 50 to 100 years, but we don't do it. >> exactly. >> there's a thing that says that stimulus is just pork barrel government spending. >> which is a shame, because it can be. there's no question there has been money wasted on projects here and there, but the idea that we should give up on the whole idea when there is a crying need to fix our roads, bridges, tunnels, water systems, and sewer systems, and we're going to have to do it eventually, why not do it when you can borrow money for nothing. >> exactly. peter koy good to talk to you.
2:16 am
wfrjs all with all of the cut-throat campaigning, why would anybody want to run for office. i'll tell you why. you are watching "real money." tell me what is on your mind, by >> election day stay with al jazeera america for live, in-depth coverage focusing on the issues with expert analysis and updates from across the country. midterm coverage that's serious, straightforward and unbiased. tomorrow, 7:00 eastern
2:17 am
>> an election day midterms marathon. >> it's gonna be close. >> several swing state elections are up for grabs. >> are you kidding me? >> don't miss filmmaker a.j. schnack's unprecedented... >> if i can drink this, i don't see why you should't be able to smoke that. >> behind the scenes look...
2:18 am
>> are you gonna do this? >> at what it takes to win. >> it's certainly something that doesn't exist elsewhere in politics on television. >> midterms election day marathon. tomorrow, 1:00 eastern. only on al jazeera america. ♪ up for grabs in this midterm election are 36 senate seats and all seats in the house, and vying for these positions are candidates who have to engage in countless debates, untold stump speeches, exhaustive handshaking and end less baby kissing. running for congress looks like an absolutely gruelling experience. which begs the question, why would anybody want to do it? being a member of congress seems like a thankless job. you are constantly being
2:19 am
criticized. why would anybody want the position? well, one reason may be the perks. first is the annual salary. for almost all members of congress, it was $174,000. if you are the speaker of the house, your compensation jumps to 223,500 dollars. not bad considering the median household income in america is only about $52,000. the hours aren't bad either. consider this, the current 113th congress is scheduled to meet and conduct business for only 159 days this year. though that doesn't include the time a congress person will put in at that home district. the average american is required to punch into work 250 days a year. and each member of congress receives between 1.2 and $4.7 million in annual travel and office expenses.
2:20 am
there's even a $40,000 allowance just for furniture. there's pretty good health care and retirement benefits too. members of congress must use the obamacare insurance marketplaces but can receive up to a 75% contribution from the federal government towards the cost of those plans. and if they retire after putting in only five years of service, s 80% of their final salary. more than half of the members of congress receive an annual average pension of more than $71,000. of course there is special free parking spaces at washington air forts, exclusive congressional dining room, and members only gym access for life for current and exmembers of congress. even the death benefits are good. if a member dies while in office his or her family receives a full year salary of $174,000 as
2:21 am
compensation. all in all it's a surprisingly sweet deal for a job where you are only required to report back to the boss every couple of years. forget everything you just heard, because someone who follows members of congress closely says it is far from a dream job. you are nominated to do a job that everyone hates you for at the cost of your family says emily. you have a very, very different story to tell my viewers than the one i just painted. you are talking about congressmen who spend countless days away from their family in dwellings that you would not in. >> if you are a freshman member of congress, if you didn't come with heavy means, to have a rent here in washington, d.c. is very expensive.
2:22 am
there is a member of congress who lives across the state line who said earlier this year, that members of congress, some of them don't make enough money. he wasn't very popular after he said that, but if you live in california, and you have to have two residences in l.a. and d.c. it is not enough money to have a lavish lifestyle. >> but a lot of these members of congress don't enjoy the popularity or loyalty that a local or state politician in their district would. >> no, you are so unpopular. your average approval rating -- some horrible things are more popular than congress. you are not getting much done, you are not seeing your family very long, you are raising money every second that you are not on that floor. when you are here in town, you are spending long days in your office, working, voting when you
2:23 am
are here, and you go back home and you are traveling sometimes around these sprawling districts. they are putting in a lot of hours that you don't hear about. >> lobbyists make good money in washington, and sometimes these congress people become lobbyists afterwards. >> yeah, eric cantor lost his job unexpectedly in a primary. he was taking $174,000, and he lost his election, went to wall street, and he is now earning more than $3 million. >> you tell the story about nebraska congressman lee terry who sleeps in his office? >> yeah, there is a number of them who do. if you didn't come to washington wealthy, the rents here are not cheap, so people will keep a cot in their office, and use the congressional gym which you may a membership fee for to shower
2:24 am
and clean up at the end of the day. so some people here don't even keep a rent in washington, viable. >> emily thank you so much. coming up next, prohibition is still alive in parts of america at a time when many states are debating making pot legal, selling alcohol is on the ballot in one state. i'll tell you where the spirited debate is taking place when "real money" comes back in 2 >> on the next "talk to al jazeera", legendary tv host dick cavett. >> steve jobs said, "how does it feel to be dick cavett"? about the only question that's ever floored me, you know? >> "talk to al jazeera". saturday. 5:00 eastern. only on al jazeera america.
2:25 am
>> bying homes by the thousands... >> bying homes by the >> it's all been transferred to thousands... wall street and now they're our >> it's all been transferred to landlords. wall street and now they're our landlords. >> to them we are just a >> to them we are just a monitory value. monitory value.
2:26 am
>> they're being taken advantage of in the rental markets. >> they're being taken advantage the crisis continues. >> fault lines: al jazeera of in the rental markets. america's hard-hitting... the crisis continues. >> today they will be arrested. >> fault lines: al jazeera >> ground breaking... >> they're firing canisters of gas at us. america's hard-hitting... >> ... emmy award winning investigative series. >> new episode: wall street >> today they will be arrested. landlords. >> ground breaking... >> they're firing canisters of gas at us. >> ... emmy award winning >> only on al jazeera america. investigative series. >> new episode: wall street landlords. >> only on al jazeera america. prohibition ends in 1933, but there are ten states that still have counties with dry laws. arkansas is one of them, and tomorrow voters will decide whether to make the entire state a wet one. 38 counties are dry, 38 are wet. a recent survey found 54% are against the amendment. most of the state's dry counties border on a wet one. so the wet ones are home to a large number of liquor stores. if the dry counties get wet, the border stores could find their revenue drying up.
2:27 am
one is colonial wines and spirits. its owner joining us now from little rock. pass? >> we like the status quo, that's right. my store is not one of the ones that is directly on a count think line. but we have two counties that border up to where my store is located. those directly on the county line will be more affected than we are. >> as you just heard, it seems like the no change side of this . >> it's -- well, we're seeing really mixed numbers here. just about every day, we'll see something different. what i saw latest today is actually showing that this is extremely close and that there is a good chance that it will pass, and furthermore -- i feel furthermore if it doesn't pass,
2:28 am
tomorrow it's not a dead issue. the next round we'll be right back looking at the same issue. >> what is your plan b? whether it passes tomorrow or if it is not a dead issue and it comes back, what are you going to do about it? >> i'm thinking about getting a tv talk show. [ laughter ] >> no, just kidding. we're not going to expand into a wet county if the state should go wet. we plan on continuing to focus on the things that we do best, which we think are provide excellent customer service, a great selection, and good pricing, and then we're going to just wait it out and see. we think we're going to be okay, as i said we're not on a county line. >> what happens from a larger business perspective in terms of jobs created and the revenue that comes in. if a bunch of these dry counties go wet, because that's what the referendum says, the whole state goes wet.
2:29 am
it won't be county to county now. do more stores open up and you all share the business you already had? is there anybody in arkansas who needs to get liquor who can't get it with a fairly convenient drive to the next county? >> no, i don't think so. i head a study done by the university of arkansas, the walton business school, and you mentioned that it's no longer just a three-county issue on the ballot. it's a state-wide issue. the actual study that i read was when the three counties were trying to go wet. and it shows increased taxes, increased jobs, increased construction, and food away from home being increased. what it doesn't show, and where it doesn't balance out, and where are those revenues coming from? and how are the counties where
2:30 am
those revenues are coming from being affected. the fact is most people in the retail and wholesale liquor business in arkansas feel that business within a state's boundary's is pretty much a pie. you can have the current number of retail locations that we have, and you can add 50 or 100 or 150 more, does that increase the overall state revenue? no, not really. it just increases the number of the pieces of pie. >> clark thank you for joining us, and we'll keep in touch with you through the course of this. blake rutherford is a journalist for a weekly journal. he joins me now from philadelphia. i mean, you are -- blake you have so involved in so many of the things going on in arkansas, where does this discussion figure in? >> i think it's one of the things, ali.
2:31 am
i mean it's a very interesting political cycle in arkansas. you can look at competitive races for the u.s. senate, governor, and house, all the way to state initiatives like liquor sales as being part of the overall political dynamic. as you guest just pointed out, it's a unique issue. certainly it's part of the conversation. >> let's talk about what is going on. there are interesting and hard-fought races going on at several levels in arkansas right now. republicans are trying to create guilt by association with president obama. bill clinton is trying to help up, because he is still pretty popular in a red state. tell me how this is all playing out in the big races there. >> you characterized it, i think appropriately. the republicans want this race to be about barack obama and a referendum on the president and
2:32 am
his policies. the democrats want this to be about local issues, local personalities and local dynamics. and if you look at where we are, polls open tomorrow morning, the republicans have a slight advantage. i think they have done a very competent job of positioning and framing the narrative. i think they have gotten help in the last couple of weeks, challenges to the administration's response to ebola, isil, and other issues abroad that have supported their narrative. but the democrats will tell you that turnout is key. they feel very good about early voting in arkansas, and they think they will have a big turnout day tomorrow. weather is going to be a factor, but that's the dynamic. is it about obama or local issues and local personalities. >> i was just speaking earlier to kevin hasset who helped out
2:33 am
in mitt romney's campaign as one of his key economic advisors in george w. bush's campaign. this is an issue on the ballot, and it seems like the pro-raise the minimum wage campaign is doing well in arkansas. >> this is really one of the very interesting issues. the pro-minimum wage folks are doing very well. it stands anywhere from an approval of 69 to 70%. it appears poised to pass tomorrow. and you have bipartisan support. senator mark pryor came out in favor of it, but his opponent, a republican, also supported it. the political dynamics are incredibly interesting this year, but it stands ready to support tomorrow. >> and you just mentioned mark pryor and tom cotton, we're
2:34 am
watching that senate very, very closely. these are the two we'll be looking at. tom cotton is what some people say the poster boy for the conservative movement in america. what are your thoughts? >> well, i -- i think his biography is compelling if you are a conservative. his star is on the rise. he has gotten a lot of national attention for his biography. served one term in congress, turned around and ran for senate, and if you believe the polls he is in a strong position going into election day tomorrow. if he wins, i wouldn't be surprised if he becomes a name batted around as we start to think about 2016 positioning for the republicans, but he is attractive to conservatives. he has run a race that has been one dimensional, but very much an anti baum
2:35 am
obamacampaign. but i expect we'll hear more about tom cotton in the future. >> arkansas gives us a very compelling story tomorrow. we'll be looking at all of those major wages, the wet dry laws, and the minimum wage. blake thank you for joining us. >> thanks for having me. up next, new questions about how new york city is handling the ebola virus, the chief safety officer of a bye hazard company, hired to cleanup afterg @
2:36 am
2:37 am
the state of maine and the nurse casey hickox have reached a settlement agreement.
2:38 am
she was quarantined in a tent house in new jersey for four days. after returning home, maine officials wanted to confine her to her house. on friday a judge ruled she should be allowed to travel as she wishes and restricting her to her home was unnecessary. she is required to monitor her health closely and report any symptoms immediately. now sal payne, he is the chief safety officer for hazmat cleanup firm, the company that cleaned the apartment of new york's first ebola patient. we learned that sal payne's past in the mortgage business includes accusations of fraud. nobody is saying he did anything wrong in the cleanup in new york. but it raises questions about how cities pick contractors for
2:39 am
dangerous work. duarte geraldino has the story. >> reporter: sal payne is the face of the company hired to decontaminate the new york city ebola. >> the city has put pre-emptive measures before, and right before, we got a call saying be on stand by. >> reporter: buzz feed and the "new york times" cast a shadow on payne the headlines: according to the times new york attorney general alerted city officials about payne's legal problems early last week. years before he became one of the central players in new york city's ebola response he was
2:40 am
known as salvatore payne spelled p-a-n-e. and on investigation reveals that two companies he ran violated new york consumer protection laws. payne's company routinely collected illegal up front fees from home owners, and then failed to lower their monthly payments as promised. payne acknowledged his past legal problems in a phone interview, he says those problems have no effect on biorecovery. city officials confirmed that biorecovery has been given fewer than ten cleanuping yous. according to the mayor's office quote:
2:41 am
>> first of all tell me how this works. you get contracted out by these people, they have checked you out. you know you are going to get these calls? >> i would have to say yes, we are the most highly trained that has done this. we have done everything from anthrax to ebola. >> reporter: the city says it approved the company because the city had to act fast. they also said this is standard operating procedure. >> when the normal company would sigh no, we say yes. >> reporter: in a statement, the mayor's office said: however in response to the controversy, city officials are a now closely examining biorecovery corp's history and
2:42 am
work, saying they will not be issued any further contracts for the time being. >> one another note about sal payne's past, he spent time in jail for operating a vehicle without a license. he said he was arrested in new york, department of corrections records show he was released in march 2011. meanwhile another doctor in sierra leone has died of ebola. he is the fifth doctor to fall victim to the disease. in guinea, liberia, and sierra leone, adequate health care was hard to come by even before the outbreak. the impact since has been devastating. the world health organization reports more than 13,000 cases of ebola, nearly 5,000 deaths. if the epidemic conditi-- continues, we could see 10,000 by december. costs could reach $32.6 billion
2:43 am
by the end of 2015. this doctor is director for global health problems for kaiser permanente in california, but spent the last three weeks in africa as a volunteer, and says the crisis is far from over. >> the number of cases is still going up, and we're still struggling to stay caught up or get caught up, we're finding worldwide shortages of chlorine, ppe, and having challenges recruiting enough staff. >> and you are there with the international medical corps, what are you doing? >> i'm helping to coordinate and be medical advisor for the process we're going through right now, which is opening two treatment centers and developing a training program. we already have a center that is open and been seeing patients. we're going to open a second center in liberia, and
2:44 am
two in affected. >> and if you are able to know what is required, you said shortages of chlorine and protective equipment, how eventive are these treatment centers? are you able to continue the virus, stop them from being contagio contagious, and then can you support them? >> the treat centers are one part of one facet of a much larger response, which includes identifying cases early, getting them isolated, doing the contact tracing, and also handling the dead bodies safely so there's no transmission during that part. so the centers serve to isolate, keep community and staff safe, and treat the patient with as much support as we can? live? >> absolutely.
2:45 am
the survival rate is over 40% in countries. >> let's talk about the protocols, because you are emphasizing while we want a cure -- a vaccine, the protocols are really, really what is crucial in these countries to contain the disease -- the infection to those who have it. when you get back to new york, you'll hear about the protocols that have been put in place. when you call, they are going to send a specialized ambulance to hospitals with special preparation. what are the protocols that you leone? >> in many ways that are actually strikingly similar, we also have ambulance crews that also have the same protective equipment we use, they have chlorine spray as disinfectants. they stray down are where the patient was.
2:46 am
we spray down the ambulance after we bring a patient into the center, and in our centers we do the same control and prevention being done in the u.s. many of the guidelines being used in the u.s., came from where they consulted organizations like doctors would borders. >> what about burial protocols? we have heard a lot about how a lot of the spread comes from the point after which someone has passed away because of ebola. how are you able to deal with that? >> correct. well it's the same way we need to be cautious with infection prevention procedures during the handling of the bodies and the burial process. we explain to families -- and they are allowed to view their loved one, but the burial teams need to be in the personal
2:47 am
protective equipment so they stay safe as well. >> it does appear the urgency of this has grown. do you think we're at the worst of it yet? or the worst is still to come? >> well, even though there was a slight dip in cases in liberia over the last report, no one is celebrating write yet, and we think that that may be fictitious, and the number of cases is still going up, so i think we'll still on the upswing of this unfortunately. >> we thank you for your service, a volunteer with the international medical core and the director of kaiser permanente global healthcare programs in california. >> thank you very much automakers have their best october in 10 years. i'll look at what is fuelling the industry when we come back. ♪ >> saturday on tech know. a brutal killing.
2:48 am
a thorough investigation. >> we're pushing the envelope. >> but this is no ordinary c.s.i. >> what went on right before that animal died? >> hunting the hunter. >> we're gonna take down the bad guys. >> solving the crime. >> we can save species. >> tech know's team of experts show you how the miracles of science. >> this is my selfie, what can you tell me about my future? >> can affect and surprise us. >> don't try this at home. >> tech know, where technology meets humanity. saturday at 7:30 eastern. only on al jazeera america.
2:49 am
2:50 am
a team investigating the fatal test fight crash of the vir been galactic spaceship says that pilot error would not be ruled out. unlocking the tail too early can create drag causing the rocket to break up. it is too soon to know whether that is what caused friday's accident. one pilot was killed, the other survived with serious injuries. car companies need to start being a little more careful when estimating the gas mileage of their auto mobiles. hyundai
2:51 am
and kia have agreed to pay a fine for overstated mileage on their window stickers. eric holder said it shows the need for car companies to be compliant with their emission standards. monthly u.s. sales of the six largest auto makers rose 6% from a year ago, making it the best october in 10 years. declining gas prices, trucks and suv sales drove sales at chrysler and general motors. ford had a small decline as it prepares for the introduction of the new f-150 pickup. for more we turn to the auto critic for the detroit "free press." mark good to see you. what is this? is this these 192,000 new jobs we average every month, it is more credit available, what is doing this?
2:52 am
because we have for months been describing how strong these auto sales are? >> i think you can go with all of the above. people are feeling better about the economy in general. people postponed buying cars for a long type. and now they are at the point where they need them. there are a lot of appealing new vehicles on the road. there is even some indication in -- there were a boom in sales of some small cars which is suggesting that maybe even some first-time buyers might be buying cars now. >> i go back to the auto show in detroit in january, cars are sexy again. we have decided cars are fun. they are the purchase you might think about. the combination of all of this pent up demand, the recession, people can't get credit, along with the fact that there are some cool cars out there. >> there are really. people are excited about
2:53 am
smartphones. they didn't care about cars. one of the things car companies realized is if they make it easy to use your smartphone safely, that is going to get people excited. >> let's talk about recalls. is it that people don't care? or is it that the major american cars -- these numbers are inflated because of fleet sales? what is it? >> it is really fascinating. that was a surprise to everybody, and the consensus is growing that there is a little bit of recall fatigue. people hear about so many recalls that unless it's your car you are not concerned. and as you said cars are much more appealing than they were a few years ago, and the fuel economy has gone up a lot. so they are removing some of the
2:54 am
reasons that have kept people away. >> the develop of the low end, the smaller cars, in addition to the better fuel mileage. it used to be if you were buying a car at the low end, you knew for the entire life of the car you bought a car at the low end. now it feels different. >> absolutely. you can get voice recognition, leather, and cars that just look and feel better than small cars did in the past. in some ways we're becoming a little more more like europe where even the small cars were expected to look and feel good. >> mark what a great conversation. good news for folks. it's something that detroit has waited for a long time. it's a good feeling. jpmorgan chase is facing another criminal probe, this time involving its foreign exchange business.
2:55 am
it says it is cooperating with the justice department and regulators. the bank warned this could raise its already extensive legal tab to nearly $6 billion. last week, citibank and ubs disclosed they are facing similar investigations. coming up my take on showing american. ♪
2:56 am
>> they say no one ever successfully escaped alcatraz, for its inmates freedom was just a dream. so the irony is perfectly poetic that an art show about creativity, self-expression and freedom has opened on the former island prison. >> these works are so beautifully made, they're so resplendent, they're so colorful and appealing and attractive that i think people from all walks of life will find something compelling about them. >> chinese activist artist ai weiwei calls his alcatraz exhibit "at large" and he planed it remotely, in abstentia, his own freedom curtailed by the chinese government. ai weiwei cannot leave china he could not escape to alcatraz. decorating the old prison factory floor... over a million lego blocks, portraits of political prisoners and exiles around the world. the artist himself had once sat
2:57 am
in jail for his own outspokenness, he knows what it feels like. cell block "a" has become the installation "stay tuned" - an invitation to sit behind bars and listen to poetry and music composed by political prisoners... echoes of a tibetan song of freedom inside what was once america's most infamous prison. tomorrow we have got a special edition of "real money" for you, with an estimated $4 billion being spent to sway voters in races. the midterms are already proving to be the most expensive election campaign ever. we're going to dig into the money behind the races and the people behind the mron money. but al jazeera is going to stay
2:58 am
with you through the entire night with incite and analysis that takes you all the way through tomorrow's remarkably important election. please stay with us for the whole night. i want to leave you tonight with something that happened in new york today. it was an act so simple, but one that carries so much symbolism. 13 years after hijackers flew into the twin towers, the first wave of new workers showed up at their own know. conde nsa is the first tenant. it has been a long and difficult path to rebuild at the site where the towers once stood. this morning there was little fanfare for some 175 workers who entered the building, but the moment was powerful. one employee said he didn't look another one world trade center with fear but with inspiration. none of the extensive rebuilding
2:59 am
would have mattered if ordinary americans didn't show up for work today. and tomorrow is the day that all americans can make a difference. there remain far too many places around the world who people still don't have the right to vote. when our government has become mired in dysfunction, it is easy to think your vote doesn't matter, but it does. looking at those workers walking into the one world center freedom tower, we are reminded of our freedom and that we can never give up. that's our show for today. i'm ali velshi. thank you for joining us.
3:00 am
now of people flee boko haram in nigeria. aid groups say a i man terrien crisis is looming. also ahead, rereport from burkina faso's capital where the military is promising power will be handed over to a civilian government. iraq pledges itsy support for peshmerge battling isil as fighting urges closer to erbil. plus after more than a decade of debate. new world trade center is open for business.