tv America Tonight Al Jazeera April 23, 2015 10:00pm-10:31pm EDT
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up at 8:00 p.m. eastern, 11:00p.m. pacific. that's all for the news. "america tonight" is next. i'll see you again in an hour. on "america tonight," degrees of debt. dreams of a college education and how it is draining away the future for hundreds of thousands of american students. >> i have 12 different loans by three different servicers. now i owe over $33,000 in loans i nefr never signed for or know where they came from and have nothing to show for it. >> high hopes and predatory lenders. a look at the higher ed schemes
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that don't make the grade. aums also tonight, vegas baby. the power behind who comes and goes on the strip. >> they have a control over that just because they have so many connections over the period of time. families have been in charge of some of these different companies for years and years sh for generations, at least three in some cases. >> we take a ride and get an insider's view of las vegas's latest showdown. will it bring travelers to a standstill? thanks for joining us. i'm joie chen. we have a fast-moving spin on a popular way to get around called ub e-a ride sharing service you access on mobile phone. so hot analysts value it at $40 billion already. in a place where a slow cruise is part of the scene, "america
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tonight's" michael oku found a fierce effort to put on the brakes. >> reporter: sin city where the strip is lined with invitations for gambling guns and girls. just about anything goes in vegas, but one thing not going anywhere is uber. the darling of silicon valley isn't feeling the love from the silver state where it has no permit to operate. there's a $400 million taxi turf war here in vegas, a handful of cab companies dominate the rides at the airport, the strip and convention center and just about every where else. uber wants in on the action. it briefly set up shop last october in nevada before a judge ordered them to shut down and the taxi industry came out swinging. >> it was almost a sting that was helped to organize by some of the -- one of the cab
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companies. >> one of the cab companies? he's a veteran reporter at ""the las vegas review journal."" we talked during a spin on the strip. >> one of the technology guys in vegas decided to get a ride and hire them and then we're going to call the taxicab authority and let them know where we're going so that the taxicab authority can be right there ready for them as soon as they got out of the car. that's exactly what happened. >> these photos of the incident were taken by "the las vegas review journal." officers were reportedly wearing ski masks, bulletproof vests and guns. on the face of it it looks like you deploy a bunch of troops to handle a cartel rather than folks that shuffle people from one place to the next. >> i think that was one of the things that the taxicab authority realized afterwards. it looked pretty over the top. >> call it a sting or a stunt. the taxicab industry flexed its muscle. when people talk about the
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taxicab industry here they often refer to it as a cartel. why is that? >> because they have so much control over what's going on within the industry. they have a control over that because they have so many connections over a period of time that they've been here. families have been in charge of some of these different companies for years and years, for generations, for at least three generations in some cases. >> he said that nevada has been the toughest market for uber to crack. >> it's also the place where they want to be the most because of our tourism economy. 41 million visitors to las vegas. manage already have an uber app and know who they are? this is a market that's just perfect for them if they could operate legally. >> uber is used to getting its way, legal or not. it's rolled into 41 states and 300 cities worldwide. many times arguing current laws don't apply to them. why? they say they're a technology company, not a transportation
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company. we tried to find out what the difference is from uber spokesperson ava barron. the common person on the street would ask what's the difference between a regular car company that basically gets requests from prospective consumers via testimony and uber which essentially processes requests through picking up the cell phone? >> there is a technology company that licenses that software to drivers, who then are connected with riders for different -- whether it be for a connection to, you know the strip from summer summerlin and in some parts of country we connect people to food and delivery services. >> what i don't hear there is what is the difference? what's the difference between taking a taxicab and taking an uber? why wouldn't the laws that any taxicab company has to abide by apply to uber? >> here is people using their personal vehicles using an application to connect with people and maybe only ten hours
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a week they're using it to give you a ride or somebody else a ride. >> bartender david ettis doesn't care about the difference. he took an uber ride and would like to again. david, do you want uber back in town? >> i think that would be a great idea. >> why? >> if you're not on the strip in an area that's valet, sometimes it's difficult to find a taxi. >> you can't find a taxi in vegas with all these yellow cabs i see? >> well, if you're walking up to a casino and things like that yes, all day long. they're in and out. as far as being off the strip or anything like that or away from any of the hotels it starts to get a lot more complicated. i personally waited over an hour to get picked up from a restaurant. >> a poll by "the las vegas review journal" showed more than 60% of respondents would prefer to take an uber in vegas, but so far the taxi cartel has managed to keep them out. >> it's ju the way things get done in this town.
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at the same time it's kind of frustrating for somebody entering the market. >> not one new taxicab company has been allowed to open in las vegas since may 2001. >> we have about 1,000 vehicles. >> if jonathan schwartz has his way, uber won't open up either. >> uber is an unsafe operator in our opinion. >> schwartz owns three cab companies in vegas, about 20% of the market share. he says uber doesn't have to comply with the same rules he must involving things like car maintenance and background checks. uber likes to say that they are a technology company rather than a transportation company. >> uh-huh. >> do you buy that? >> i don't buy it at all. they're a transportation company, and they should comply withle same set of rules we do. uber came into this state, and they violated the law. that's their business model throughout the country. >> if uber is allowed to do business in vegas, schwartz says
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he may have to lay off some of his 2,000 employees, folks like driver michael valle. >> my wife we were able to get her through college where she became a high school teacher. my older son graduated with a degree in economics. my second son graduated from unr and i have two in college right now. >> and he says he did it all on his taxicab salary. in clark county which includes las vegas, by law taxi drivers are considered employees and receive benefits like health insurance and 401(k)s. something they won't get driving with uber. >> the cab drivers here in las vegas are specifically concerned, because they believe if uber becomes successful that they may lose their jobs at their cab companies and will be compelled to work for uber which does not provide these hard benefits that they've been accustomed to. isn't that a legitimate concern on the part of hundreds of you
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know drivers here that made a living doing this? >> we're actually opening up the transportation eco-system and creating even more opportunity. >> that transportation eco-system won't pay for things like trips to the hospital or dentist visits. >> the vast majority of drivers are worried that their going to come into our market and ruin the good thing we have here. >> the fight over uber has moved from the strip to carson city the capital. that's where two bills, which would allow uber to operate, have unleashed armies of lobbyists from both sides. how many lobbyists and consultants do you have working on this issue right now? >> oh i think it's about ten at this point. we've got to compete with uber. uber i think, has 16. >> uber may need all of those lobbyists given the long-standing connections between the taxicab companies and the legislature. how far-reaching does that power extend? does it extend from las vegas all the way to carson city, the
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capitol capitol? >> oh, yes. you're talking about people that have been in the industry for a long time having relationships with people who have been in the legislature for a long time. it's passing on. >> do we also have situations where there are former industry types who go on to become politicians in carson city? >> and the other way around too. we've got a couple of places where we've had people who have been in the legislature and now top officers in transportation companies. so it goes both directions. >> the taxicab companies have donated at least $750,000 in the past year to various officials in carson city. it may have paid off. the uber bill was effectively killed just this week. the company will have to wait two years to get another bill introduced. >> we're not going to be like everybody else and sometimes that means that we put the brakes on progress. sometimes it means that we don't accept things that are accepted
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every place else. that's the way nevada is. >> while the rest of the country rushes to embrace the uber phenomenon nevada is going its own way. michael oku, al jazeera, las vegas. "america tonight's" michael oku tells us uber could get rolls in nevada soon. lawmakers vote on one bill next week, but even if that doesn't work out, the ride share service does have options. los angeles wants uber and lyft to move more riders. the l.a. mayor tried to clear the way for pickups at los angeles international airport airport. nearly 70 million people use lax every year and need a ride. next priced out. skyrocketing rents and not just in america's biggest cities. could your neighborhood be next? later, a pricey education. hundreds of thousands of would-be college grads and the expensive lesson they have about
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if our fast forward segment. forced out. need a place to live in new york city? so do other folks. that's great for developers. the property premium in the city is putting more new yorkers at risk of losing their homes. >> a recent survey showed brooklyn is now the least affordable housing market in the country hitting some of the most
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fragile members of the community. at this prime corner of brooklyn stands the prospect park residence, a building that's a home for seniors since 1962. for the last decade an assisted living facility. back in march the facility's operator announced it was closing down. the building had been sold for $76.5 million, nearly double the sale price of 2006. more than 120 residents, including some holocaust survivors, were told to find another place to live. the elderly residents, some of who had just moved in were outraged. they took to the streets in protest. in the end more than 100 were forced out. 92-year-old ann marie mogle is one of eight residents that refused to leave. >> i'm not ready to go. the place is advertised from the beginning as a place where you come to age in place.
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aging in place means that this is your final residence. >> ann marie moved in only two months before the building's owner sold it to a developer of luxury condos. >> what it feels like to be possibly pushed out of your home? >> it's a devastating feeling, and i wouldn't wish it on anyone. >> the battle has now shifted to the courts and in november ann marie and her neighbors won a preliminary injunction to allow them to stay in their apartments at least for now. you're not going anywhere? >> no. >> you're not intimidated? >> not at all. no. >> the property owner did not respond to our request for an interview but did refer us to a press statement from the initial announcement in march saying that rising costs and tax obligations made it no longer viable to operate an elder care residence. fast forward to more troubling signs. we expect sky-high rents in san francisco and new york city.
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now real estate trackers say rents are spiking even in places where the housing market has struggled. smaller cities like denver kansas city portland real estate database zillow says on average renters spent a quarter of income on housing but now it's to about 30%. after the break, lessons learned. dreams of a college diploma and why it may cost hundreds of thousands of americans their future. what lies ahead for young americans living with autism? our special report friday on "america tonight" on what works. >> by 15 months noah was just -- he just started to engage. his language started coming and i remember just thinking i think he's getting this. >> is noah showing any signs of autism today? >> none. >> breaking the silence and changing the lis of people living with autism. friday a special report on "america tonight."
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now a lesson learned about higher education in america and the crippling debt that can come with it. student debt in this country has already reached more than $1 trillion. that can be especially painful to low-income americans who sometimes hope that a for-profit education can pave the way to new futures for them. instead, some have found their dreams deferred. now a group calling itself the corinthian 100 where they incur the debt is fighting back refusing to pay back loans that some authorities call predatory. "america tonight" heard the story of one of the debt strikers. >> you say you wanted an orange.
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i went back to school in 2007. i'll split you an orange. i want some stability. this college offered a nine-month medical assistant program. as a single parent i was told you will basically go to school for free. you get all the grants and stuff like that from the government federal aid. i was like okay i'm on with it. i was so excited to do something and help people. i love you. see you later on okay? being able to network with doctors at the hospital and then being able to establish a future and to see potential in our life. you guys want an appetizer tonight. instead of being stagnant and waiting tables and bartendering doing the same thing you do out of high school. i wanted that career that you know long-term longevity of receiving benefits retirement, all of that. it was exciting but it's not exciting anymore.
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i have 12 different loans by three different servicers, different amounts, different times, different days. now i owe over 33$33 now,000 in loans i never signed for or came from. i could have gone to a four-year university and have a real degree and i have nothing to show for it now. i never got a job in the medical assistant field. i still have not received a job in the medical assistant field. in fact i had doctors tell me straight up that because i got my -- i went to evers college that it's basically laughable. >> what happened to jessica king is fairly typical. it happens to thousands of other students. the students sign loan documents they did not understand that were not explained properly and those documents -- one is a promissory note. stupt students sign that document, and the school can take out any amount of debt in student's name. they were defrauded and lied to. there are approximately half a
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million students who have potentially been affected by this predatory lending scheme. >> for english, press 1 now. to speak with a representative press zero. please hold while your call is being transferred. >> this is jessica king and i would appreciate it if this call is recorded, please. hold on one second. you just said that because my loan is -- >> the client is -- >> a client disputes that you can't discuss this with me? do you have like a supervisor or somebody? do you have a supervisor or somebody that -- >> one moment. >> thank you. every day i make the same phone calls. sometimes i'm getting answers. it's just like i call one person to lead me to another person to lead me to another person. there's no answers. still no paperwork. it's all over my credit report.
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everest college is a sub sid tear of corinthian network. it was based on recruiting students who were very vulnerable. most students were low-income. the first in their families to go to college. they were a lot of single parents, people who didn't know much about higher education, what it was supposed to be like when you enroll in a school how much it was supposed to cost. >> my name is jessica king. are you a supervisor? i never signed for this loans and i am disputing these loans, but i don't think it's fair i cannot talk to somebody about the income based payment because i filed a complaint. i cannot move on with my life. >> it is what it is. if you -- if you set up a program, then you're admitting to the debt. >> right, okay. so basically i'm just at a standstill until we figure it out? thank you very much for your help. have a great day. >> absolutely.
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going to college in america can actually make you worse off. that's what's happened to thousands of these students. they're worse off than before they went to college, and the department of education's job is to regulate higher education and to prevent colleges from taking advantage of students and from stealing from them. they did not do their job, and students strikers are demanding that they finally do their job. >> twinkle twingele lle lle -- twinkle little star. >> my family definitely keeps me grounded and keeps me hopeful that, you know there will be some resolution to all of this. i don't think without them that i would be at the place that i am or even come as far as i have to where i'm at today. i mean you see your cousin and you want them to do better obviously, better than you've done in your life. just looking at my children and their future goals and their
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hopes, i'm going to be there. i'm going to figure one way or another to make sure their dreams come true. >> the federal education department fined corinthian colleges $30 million for misrepresentation. nine state attorneys general have called for the loans to be canceled and the consumer and financial protection bureau put in place $480 million for debt relief to corinthian students months ago, but jessica says so far she's not seen a difference in her credit report. that's "america tonight." tell us what you think at aljazeera.com/americatonight. talk to you on twitter or facebook and come back. we'll have more of "america tonight" tomorrow. tonight" tomorrow.
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they are cops for hire complete with a badge, gun, and patrol car. >> there's only so many police officers in the city. if they want constant presence then they have to take that responsibility on themselves. >> they're going to have to pay for it? >> correct. >> i'll tell you how public police officers working private security is a risky business for you, the taxpayer. plus what is and what isn't in the published diary giving
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