thank you, paul krugman. tavis: what is interesting one of the consequences you suffered from dating jerry brown. remember the earthquake? >> i grew up in the desert where the first thing you learned is you do not build a house on the floodplain, and that beach is a floodplain. the beat is not a lasting thing. is ocean has -- the beach not a lasting thing. the ocean has a mind of its own. here we were in malibu, bad idea. there was one year of storms. the ocean decides to knock off a room in my house. it ate a room in my house and did a lot of damage to houses along there. the residents wanted help from the government because their houses were destroyed. gary said, i cannot do that because my girlfriend lives there, and if i help her they will say, i am giving her special favors. they were ready to come with pitchforks and burned the place down because he was not helping. beacht up and down the and talk to the residence and figured out what was going on. my feeling is the beaches for the public. miles back a

and paul krugman. welcome to all of you. bill, let me begin with you. if we were here two months ago, we would have thought a shutdown would be possible. all of the leaders, republican leaders in the house and senate against it, yet it's happening? >> these people are electing individually. so, they have decided they would like to delay the implementation of a bad law, which the president has had to delay parts of it. the republicans were in total disarray, i think it's impressive with what the republicans have done. the party has rallied. the party is doing fine in the polls. the congressional ballot is about even. president obama hasn't succeeded in getting his legislation passed. which is a good thing. so, i think -- >> isn't that going to backfire? >> not necessarily. a day or two or three. they have been shut down for the last 25 years. as you know, it's a little delicate. look, why not delay at least parts of obama care for a year? >> because it's the signature achievement. and it's funny -- >> is that a good reason? political reason like that? >>

thank you, paul krugman. tavis: what is interesting one of the consequences you sfered from dating jerry brown. remember the earthquake? >> i grew up in the desert where the first thing you learned is you do not build a house on the floodplain, and that beach is a floodplain. the beat is not a lasting thing. is ocean has -- the beach not a lasting thing. the ocean has a mind of its own. here we were in malibu, bad idea. there was one year of storms. the ocean decides to knock off a room in my house. it ate a room in my house and did a lot of damage to houses along there. the residents wanted help from the government because their houses were destroyed. gary said, i cannot do that because my girlfriend lives there, and if i help her they will say, i am giving her special favors. they were ready to come with pitchforks and burned the place down because he was not helping. beacht up and down the and talk to the residence and figured out what was going on. my feeling is the beaches for the public. miles back a co

john: and had to go all the way back, paul krugman would tell you that inflation is 2%. but this isn't a big mystery. they started paying interest on the extra reserves. if that actually gets went out, then we will see higher prices. >> it is a serious issue. you can get a return on your money anymore for savings. that is precisely what we are discouraging. john: let's go back to the rome parallel. they traded and they prospered and they did what most politicians do. >> he empire kept expanding and eventually run 180 day ahead the maximum extent of the empire so over time this was the downfall of rome. a big government destroying rome. the barbarians came as the government was collapsing over its own weight. john: with the next emperor, this is 85% and all the way down >> it ended up being 15 thousands. >> the had this kind of cartel arrangement and we see the quality diminish over 100 years. john: a lot of people get worked up because they say by and large america is doing pretty well. >> people thought the real estate market are doing pretty well. especially with a gov

people like paul krugman who writes in the "nework times" about oh,je to have keynesian economics. this is what works. he is a moron, it doesn't work. we have 4-1/2 yars prove that. >> let me get michelle in here. president obama is the first president engthy sentenced with a major push with social media. a lot of young people are involved in that. now think look at 15% unemployment. >> yeah, you know what? back to what wayne is saying. wane s says young people aren't discriminated against. look at obamacare. for obamacare to work, not only do young people need to sign up for obamacare, we need to be overcharged for it because we are the ones who will pay more to subsidize t older, unhealthy sick people. to say we're not unfairly targeted, we are. >> eric: we will leave it there. michelle field, thank you, eboni k. williams thank you as well. thank you for joining thus week. coming up, why when it comes to the fight over obamacare, senator ted cruz and mike lee may have what the doctor ordered. >> this is a moment for republicans to unite, for every senate republican to and shoulde

john: and had to go all the way back, paul krugman would tell you that inflation is 2%. but this isn't a big mystery. they started paying interest on the extra reserves. if that actually gets went out, then we will see higher prices. >> it is a serious issue. you can get a return on your money anymore for savings. that is precisely what we are discouraging. john: let's go back to the rome parallel. they traded and they prospered and they did what most politicians do. >> he empire kept expanding and eventually run 180 day ahead the maximum extent of the empire so over time this was the downfall of rome. a big government destroying rome. the barbarians came as the government was collapsing over its own weight. john: with the next emperor, this is 85% and all the way down >> it ended up being 15 thousands. >> the had this kind of cartel arrangement and we see the quality diminish over 100 years. john: a lot of people get worked up because they say by and large america is doing pretty well. >> people thought the real estate market are doing pretty well. especially with a gov

people like paul krugman who writes in the "new york times" about oh, je to have keynesian economics. this is what works. he is a mron, it doesn't work. we have 4-1/2 years to prove that. >> let me get michelle in here. president obama is the first president elengthy sentenced with a major push with social media. a lot of young people are involved in that. now think look at 15% unemployment. >> yeah, you know what? back to what wayne is saying. wane says young people aren't discriminated against. look at obamacare. for obamacare to work, not only do young people need to sign up for obamacare, we need to be overcharged for it because we are the ones who will pay more to subsidize the older, unhealthy sick people. to say we're not unfairly targeted, we are. >> eric: we will leave it there. michelle field, thank you, eboni k. williams thank you as well. thank you for joining thus week. coming up, why when it comes to the fig over obamacare, senator ted cruz and mike lee may have what the doctor ordered. >> this is a moment for republicans to unite, f every senate republican to and should

people like paul krugman who writes in the "new york times" about oh, je to have keynesian economics. this is what works. he is a moron, it doesn't work. we have 4-1/2 years to prove that. >> let me get michelle in here. president obama is the first president elengthy sentenced with a major push with social media. a lot of young people are involved in that. now think look at 15% unemployment. >> yeah, you know what? back to what wayne is saying. wane says young people aren't discriminated against. look at obamacare. for obamacare to work, not only do young people need to sign up for obamacare, we need to be overcharged for it because we are the ones who will pay more to subsidize the older, unhealthy sick people. to say we're not unfairly targeted, we are. >> eric: we will leave it there. michelle field, thank you, eboni k. williams thank you as well. thank you for joining thus week. coming up, why when it comes to the fight over obamacare, senator ted cruz and mike lee may have what the doctor ordered. >> this is a moment for republicans to unite, for every senate republican to and s

. >>> plus, paul krugman and bill kristol will join us sxwlnchts and a bombshell breakthrough. the president's historic phone call with iran's new leader. >> we have a unique opportunity to make progress. >> but is iran really ready to reject nuclear weapon? we put the tough questions to the iran's foreign minister live. >>> all that, plus bill clinton's surprising take on hillary's presidential run, all that this morning. >>> two breaking stories this morning and we begin with that tense scene in the house overnight. >> a shutdown is not a tactic. it is a failure for this country. >> please accept the compromise and keep the government open. >> house republicans passed the bill that would keep the house open only if obama care was delayed a here. that's a mon-starter for democrats. let's get more from jon karl. h hard to say how long this will last? >> reporter: george, positions have harden. time is running out. chances of a government shutdown is at 99%. after midnight last night that the house did what they did. the bill would fund the governnt until december, it would dela

and paul krugman from the "new york times." bill, let me begin with you. two months ago, thought a shutdown would be possible. all of the leaders, republican leaders in the house and senate against it, yet it's happening? >> these people are electing individually. so, they have decided they would like to delay the implementation of a bad law, which the president has had to delay parts of it. if the republicans were in total disarray, i think it's impressive with what the republicans have done. the party has rallied. the party is doing fine in the polls. president obama hasn't succeeded in getting his legislation passed. which is a good thing. >> isn't that going to backfire? >> not necessarily. a day or two or three. as you know, it's a little delicate. look, why not delay least at least parts of obama care for a year? >> because it's the signature achievement. it's funny -- >> is that a good reason? >> it's a good reason. it happens to be a very good law. >> one thing that's going on here is a failure on part of the republican caucus to actually understan

not just boris coliardi but paul krugman, and i'm now joined by someone from a completely different industry, something a little more relaxing, one could say, dan mint, the co-founder and ceo of dmg entertainment. this is one of the biggest entertainment companies in china. it is a populous nation, isn't it? you're entertaining all these people. welcome to cnbc. >> thanks. >> the key theme at this conference has been about innovation and how it can lead to economic prosperity. in your industry, in media entertainment, i would imagine this must be the core of the very values that uphold. how have you implemented innovation at your company? >> i think we all live and die on our quality creative decisions day in and day out. i think if your company doesn't have and your team doesn't celebrate that, and you understand how to really kind of move that forward, then i think in the future, no matter what you're doing today, in the future, it is going to hurt. i believe very much about embracing that. and it is an interesting process because creativity that leads to innovation at the core of that is

. >> paul krugman points out something really important in all this. if there was a question about what republican priorities are at this point, i think it's been written out pretty clearly for us. as krugman says debt ceiling fight attempt to dismantle welfare for greenspan and increase economic quality. when you look at the laundry list, a dear santa list of i'd like a bicycle and dollhouse and grants to feed the poor and help secure early childhood education. this is where the modern republican party is at. >> the president went a step further than krugman a little while ago said if we do reach the debt ceiling this represents a change to the constitutional structure of the company. it will be interesting to see if he keeps up that line. i didn't hear anything as strong as that today. i think what you're talking about, though, what he's talking about there shows the shrewdness of this republican proposal. as looney as we say it is, there's a laundry list of 15 things. you can just see talking about how sanguine some of the markets are. part of the r

. >>> plus, paul krugman and bill kristol will join the powerhouse roundtable. >>> and a bombshell breakthrough. the president's historic phone call with iran's new leader. >> we have a unique opportunity to make progress. >> but is iran really ready to reject nuclear weapons? or is this a charmed offensive to cover a bomb? we put the tough questions to the iran's foreign minister live. >>> all that, plus bill

lynn, paul krugman wrote in "the new york times" today in recent months the gop has seem to have transitioned from being the stupid party to being the crazy party. but in all seriousness, what's changed? has anything changed here? >> well, what's changed is that speaker boehner has not been willing -- nothing has changed, chris, that is my answer, because speaker boehner has been boxed in by the 30 or so members of the tea party caucus. but what he did isn't all bad for the white house. let me just quickly explain why. because he has challenged the senate republicans and ted cruz to put up or shut up. this is a new development. the house is going to pass today this legislation that will never, ever go anywhere. it's doomed, as everyone is saying, because the senate won't buy it. but then ted cruz will have to show if he can lead, if he can get the votes in the senate to pass it, he won't be able to, rand paul won't be able to, they don't have a plan b. that could just possibly then free up john boehner to finally just negotiate and compromise. >> in large part, there is this battle here, chri

caller: i read paul krugman a lot. he talks about stimulus spending. i'm wondering why they continue to be like this. guest: the paul krugman message is a wide body of economic work that supports -- what he is saying, we should not worry about the deficit right now, but in 20 years from now. the way our economies are structured, we need to provide support for the economy in the short term to ease the pain on tens of millions, if not hundreds of millions of people across the united states, and provide some support in the short term. short-term policies have to be mixed with long-term policies. .e have failed as a nation there have been countless attempts to come up with more to deal budget policies with rising health-care costs, the other unsustainable parts of , and for a number of reasons, partly due to ideology about economics and partly due to politics, these are not happening. some actiono see that provided some longer run sensible strategy on the budget, you would provide a better underpinning for the economy. host: this is eddie on our independen

i looked at the relationship between trade and income someality and found research by paul krugman that trade did not play a big role in the growth of income inequality until the 21st century. the united states was not trading very much with countries that had significantly lower wages than the united states. those wages tended to come up rapidly as they traded with the united states. centurynge the 21st largely because of china. china has extremely low wages. china is a very poor country in a very rich country. the wages are rock-bottom. the gdp is growing rapidly. so that has created trader income inequality and greater disruption generally in our equality than otherwise would be the case. as a country trades more with wealthier countries, it's wage level comes up to roughly match the countries they are trading with. china has a billion people. itsill take a long time for wages to come up again anywhere near those of the united states. you mentioned your book. a question that came into our e- mail box from greg. guest: right. there are some people who are arguing we are seeing a slow

and point out that since world war ii there has been 35 ongresses and -- host: the view of paul krugman in "the new york times." cedrick is joining us from kansas on the democrats line, good morning. caller: good morning. i had -- i'm going to keep my atemt short. i just wanted to say that everyone is watching this from all over the world. america is so undivided right now. people have already spoken when they voted obama in as president. and i went for years without insurance. and obama care will help undreds, millions of people. for cruz to be as blatant as he is as far as saying he would do everything in his power for stop obama care. i mean, come on. this is the president of the united states. get behind your leader. there is just so much division. that's all i have to say. michael: host: cedrick, thanks for the call, and one saying ted cruz said he would filibust ter health care law, if he is going to filibuster he is going to have to speak in the senate in till inauguration day january of 2017. this taking place in great britain, with that in mind, this headline. abor eappeared fw

read milton friedman, but then when you give nobel prizes to paul stiglets on one hand and krugman on the other. i mean, obviously, there's no -- >> the science is in there. >> there's no facts like chemistry or physics, no real facts. it's a pseudo science. >> it's a social science and that's why i enjoyed it. humans are not always rational, but there's science around it. social science. >> instead of all of that stuff -- all that drivel, i think there should be chemistry, physics and biology should be the first things you learn. >> i think supply and demand, microeconomics is -- >> well, that's important. to learn that your own incentive to do something that benefits yourself is what sets prices. it's what allocates capital and what creates prosperity. and that's what you need to do. all right. your own self-interest. doesn't make you greedy, doesn't make you selfish. and fairness isn't necessarily a good thing. >>> we'll have inflation numbers as the fed kicks off the anticipated two-day meeting. cpi number hit the tape at 8:30. forecasters expect an increase of .1%. [ male announc