tv Real Money With Ali Velshi Al Jazeera December 21, 2013 3:30am-4:01am EST
chief justice admitted sex workers will continue to be at risk in canada. >> doan forget you can keep up to date with the day's developments and all the top stories on the website. aljazeera.com. inventory. and an one-on-one with m night shyamalan, on the education gap. this is "real money with ali velshi."
>> this is "real money." you are the most important part of the show. join our live conversation at twitter, after the aj real money and @ali velshi. there are more signs that the economy is on the mend. the broadest measure of the goods and services produced grew in the months of july, august and september compared to the previous three months. driving those gains, higher spending by consumers nan what was initially calculated. the growth makes its case for an economic recovery going into 2014. if we can maintain this momentum, but one cause of concern is a big share of this summer's growth came from
businesses stuffing goods on their shelves. and unless americans get out and shop over the holiday season we're not going to see that for a bit. however you're going to slice it it. >> we'll get the firstes first e of gdp on january 20th. it will give businesses incentive to expand and create jobs. since this summer we've added 200,000 jobs a month in the economy's 2.1 million jobs of the year. that makes 2013 the best year for hiring since 2005. we're going to look for more
signs of that in the january jobs report. we'll get that number. finally we'll watch how monetary growth projects continue i in 2014. the announcement that the feds will taper the stimulus, and with that said we'll see how it drives the economy recovery in the new year. consumers have a new expanded role in this recovery, doug, what does this mean, consumers have a new expanded role in recovery. >> we've been looking at the tepid growth, and the committee is going to bust out, it will have to be the consume that are drives that extra growth. >> let's talk about this
business between consumer spending, gd p, inventory, what is the distinction? >> originally the third quarter that came out showed large accumulation of inventories, and the question was whether or not those inventories were planned on by businesses to meet additional demand or something that was unintended and an send, they overestimated what their sales will be. and if they overestimated, that will cause them to cut back in the fourth quarter, ultimately a negative for growth here. but with the new data that we got today and the data for this month, we can absorb these inventories and it turns out they did a good job. >> i don't think we need to get in the math of it, but it seems strong. you're not really--you haven't been predicting that for the final three months of the year we would see that, are you now? >> not yet for the fourth quarter.
still a couple of negative factors going on here. a little bit of the inventory overhang is still going to be there. we have the impact of the shutdown as well. the 4% is great, not quite sustainable, but it is indicative that 2014 is going to be a much better year. >> one of the things in that gdp report is that spending was up. that's good. that's virtuous. >> absolutely. spending is the driver of productivity. that's how we get growth in addition to getting more jobs as well. we would like to see business spending and investment going gang busters. >> when you look at all these components, all these parts that make people feel good and prosperous i doubt anybody is pro addicting 25 gains in the stock in fact, but we've seen solid footing on housing assum assuming that interest rates don't go too much in 2014. paint a picture for my viewer
about what 2014 looks like economically. >> i think it's going to be better. not exactly great growth but it will be the first year that we can call pretty decent here. the type of job growth that we see over the last two or three months will be typical of next year. unemployment will continue to go down and we think all the good earnings growth that we've seen over the past few months by companies fueling the stock market growth that will continue as well. firms will be able to maintain margins. it looks like really good news for equities as well. >> thank you for joining us. doug handler is the chief at ias. taking the approach of stocking inventory. pelon sells wholesale to other
retailers and he said his approach to inventory is if we run out, we run out. we're joined at one of his storiestores in new york. there is nothing worse for a small business is for someone to walk in and want something that you can't give them. but the opposite is having too much stuff and not selling it. >> correct, you don't want too much inventory because then you're finished. >> how do you handle this? the story of gdp that we just talked about, this is at the highest levels, the biggest companies, and it continues to stymie people. it's the age old historic problem of running a business. how do you manage the science of inventory? >> i think if we knew the science perfectly we probably all wouldn't be doing this to begin with, but your experience is very important. you look at a product. you see how saleable it is, and then you took it according to your projections.
sometimes you do well, sometimes you're out of stock, or sometimes you have too much inventory. but since 2008 you could be more open with the way you bought and how you projected. >> you sell weird stuff like fake mustaches and salami note bad. how do we know if someone is going to buy that stuff more? is that economically independent? >> i think not. in a hardware store you always know how much widgets someone is going to buy, but our store is determine bid trends. you have to be in there every day, see your customer, talk to your customer. we do wholesale and we do retail so we have to have a pretty good understanding of what our
customer wants and is going to want, but you can't really predict in our industry. that's the difference between us and a hardware store. >> you're right. how has the season been for you so far? >> well, it started o slow. this week wasn't pickerly good but consumers woke up yesterday. and yesterday and today has been really strong. i think we have an extra day there. so i think this weekend is going to be a very good weekend. >> that's really good. not only have people woken up to the fact that christmas is next week but these reports can't hurt all that much either when people are hearing all around that things are good. tell us what your best seller is? >> i have it right here. it's called photo booth. it's a group of products for christmas. everyone has a photo party. for christmas you gather with friends, you hold this up in front of your camera as i'm
doing now, and it makes for a lot of laughs. there are 27 different accesso accessories for this, and it's our christmas photo booth. >> are those antlers. >> yes, i have antlers to put on, i have a merry christmas to put on. i can put a mustache, i can wear a bow tie . >> it's nice to be whimsical. i'll have to get those and use them on the show. thank you so much. well, the dow jones and the s&p 500 closed the week at record highs . the dow rose for the second time in a week they announced a
$10 billion reduction in the stimulus . amazon.com which topped $400 a share for the first time. the stock rose 1.8% after an is to stock analyst said that it's maintaining it's post thanksgiving sales. we'll straighten out common misconceptions about who pays the bills, and a movie director known for his spooky thrillers wants to tell us all about the public education gap in america. >> the truth is bizarrely black and white. if you pull out the inner city schools, the low income schools, put that group out of the united states, and took every other public school in the united
animal which lives in every state, county and town in the country. and this animal's appetite affects everyone from the rich to the poor. aside from federal income tax there are payroll taxes, and more taxes. as this chart shows, when you add all of those taxes together americans who earn the least shell out 13% of their smaller incomes in taxes compared to 25% for american's who earn in the middle, and the rich pay 43%. so we all share the burden, but all that money gets paid to a dizzying array of places. the tax code which is entirely necessary is only part of the challenge. the enormity of the tax in america, this is ballooned from
81,000 in 1982 to 98,000 in 2012. here are the states that have the most you wants of government. leading with illinois, texas , and these are high-tax burdens except for texas, by the way, which has no state income tax. as we begin this debate about how to make our tax system more fair and rational let's not lose sight of the picture. it includes far more than the federal income tax. your view of the tax picture could have more to do about the state and county that you call home. let's dive no what steps should be taken by congress or local authorities to make the tax situation in america simpler and fairer no matter what you earn
or where you live. david cay johnston , a best selling author whose recent book "the fine print: how big companies use plain english to rob you blind." i asked if it's a fact that the rich pay most of the taxes in this country. >> that's correct, although many of the rich pay little or no tax because if you're very wealthy, bill gates or any billionaire you can borrow against your assets and interest rates are 2%. why would you pay 15% tax? warren buffet revealed that his tax rate was 17%. what he does is borrow against his assets. when he has income, $64 million the year he disclosed that. he had a company that was sold and cashed out. he had no choice but to take the money. so very wealthy people can legally live free of the federal
income tax and many of them do. >> people in the lower part of the income scale, they pay a bunch of other taxes. >> especially state taxes. >> when you earn that little money, you need more of it. >> yes, well, that's the fundamental concept that athenians brought to us. when they decided that we were all equal also said why should the rich have more of a voice than other people? and when they thought about that, they came up with the moral basis of progressive taxation. the greater the gain you are able to achieve because you live in athens world trade center courts, military, and laws and rules and all the things that make it possible to become wealthy, the greater your duty to give back to athens so it will endure. every classic worl worldly philosopher has taken that idea. george bush endorsed that idea.
>> when people say why should we have a flat tax. >> that's regressive and pushes the burden down the income latter significantly of the income tax. the flat tax applies to wages. if i call it the steve forbes never pays taxes because it doesn't apply to capital gains and dividends and that's why they favor that law. >> we do have to think about taxes more holistically. >> well, we do, and it has to do with lobbying and campaign finances. we've gone from 175 lobbying firms to 1300 lobbyists, and there were 35,00 35,000 registered lobbyists. that's why the tax code gets like this, it's not you and me and the people watching the show. people have to decide they want
to end the practice of corporations literally profiting off their taxes as i've written about. >> we have to separate the concept of simpler and fair to flat and even. they don't mean the same thing. >> that's exactly right. the key issue has to do with realization. you get your paycheck. whether you cash it or not you realized that income. well, multi national corporations take profits underred in the u.s. use accounting devices to turn them into deductions they send to themselves overseas, then with the money they didn't pay to the government they loan it to the government and collect interest . >> david cay johnston is a columnist with al jazeera. coming up, m night shyamalan spent years studying the education system.
>> m night shyamalan is known for his supernatural plot twists in movies like "the sixth sens sense." this writer producer director has ton a study that most people wouldn't expect. he analyzed inner city public schools with experts to figure out what works and why. he published years worth of data in the book "i got schooled ." i spoke with m night recently. i wanted to understand how he began his journey and why.
>> it's very contentious arena to even get into. this education. what we're actually talking about is the gap in education between lower income inner city kids who are almost always african-american and hispanic, versus their white suburban counterparts, and why there is such a huge gap in learning. when i used to talk to people about it they get so heated. everyone gets so heated and they all have opinions. it started to get very confusing for me so i kind of let it go. well, maybe this isn't the field to ask questions about. i went back to my selfish ways of making a movie. we went on a location scout. >> in philly. >> i make all my movies in philly. >> yes, you and i share a city, we're philly boys. >> yes, i was looking for high schools. mark wahlbergt was a teacher in high school, so i was looking
for high schools. i went in to this high school. it's beautiful. the kids are in the hallways with their backpacks. they notice i'm there and their crews are with me, and they run out of the class, you're making a movie, can i die in your movie? they're so cute and sweet and teachers come out and they have great relationships with their students. and of course the classrooms are full of light and saying and this, and the facilities are wonderful, just hope there everywhere. wow, this is a beautiful school. okay, what's the next school. we go four minutes. just four minutes of driving in philly, and we get out and go to this other school. it was like a prison. it was incredibly dark. guard. you have to take off all your stuff. there is a metal detecter, and he never looks at you.
and the hallways are dimly lit, and the kids are moving very slowly. one kid stops right in front of me. he had his head down and he looked up at me. he kind of recognized me then he decided that's not possible. >> you couldn't be in his school. >> yeah, i couldn't be here. >> i want to talk about public education and fixing it. why do you care? >> you know what, i believe ultimately what we're talking about here is racism. the core of everything what we're talking about, what you find when you look at all the data and everything is racism. the fact that this country was built on slavery. >> you're taking on the fight of how we change things in these schools, and the gap between inner city schools as you identified as mostly black and hispanic to suburban, the mostly white schools and the achiev achievement gap there. >> you know how they say that
america is behind, technically america is behind, technically we're a little bit behind poland, a little bit ahead of licken stein. that is where we land on the list. that's not the truth. the truth is bizarrely black and white. if you pull out the inner city schools. pull that group out of the united states. put them aside and just took every other public school in the united states we lead the world in public school education by a lot. and what's interesting is we always think about finland, right? finland obviously is, if any,ly white kids, and they teach their kids really well. but guess what, we teach our white kids even better. our white kids are teaching the best education on the planet. those are the facts. >> if you take the suburbans well off white kids out of the picture, then just take the inner city mostly minority schools.
>> we're probably at the very bottom i would imagine because we're not--you can see the united states has education apartheid. that's the fact. >> m night shyamalan's research is not just focusing on what is wrong with schools, he has found what is right in schools that are closing that achievement gap. there are five di distinct practices. longer instructional hours. smaller schools, not classes, data practices and strong leaders and identifying and keeping the best teachers. our interview airs this sunday at 7:00 p.m. sunday on al jazeera america. my final thoughts go out to m mcdoubled's franchise owners trying to unload a lot of chicken wings. millions of pounds of them which customers don't much want. mcdonald restaurant owners all
across america bought some 50 million pounds of frozen wings for a limited time mighty wings promotion this fall. today they still have 10 million pounds of wings unsold. earlier in the show we talked about the perils for businesses that extend a lot of money on inventory to stock their shelves and warehouses but then have trouble unloading that inventory. whether commuters find the mighty wings too spicy, too expensive or both, owners have been told they have been told to participate in a new mighty wings promotion at a lower price or pay for all that inventory. what a flap. a race to make christmas a salesman act. i'm ali velshi. thanks for joining us.
hans-dietrich genscher >> hello everyone, welcome to al jazeera america, i'm david shuster in new york. president obama is heading home for the holidays. he and the first family are on the way to hawaii. on friday the president said a vacation and the sleep and rest will help to prepare him for the year ahead. before leaving washington mr obama had a news conference and talked about the success and failures for him in 2013 and admitted that the roll out of the healthcare.gov was not smooth sailing. >> the fact is it didn't happen in the first month, six weeks, in a way that was acceptable. since i was in charge, obviously we screwed up. >> still