diplomacy. >> reporter: as diplomats and like these athletes, seek to score points, one session at a time. kimberly hal cut, al jazerra washington. from developments between cuba and the u.s. to other stories making the news, you can find it all by logging on to our website. aljazerra.com. i'm "ali velshi on target". the harsh reality of the american dream. middle class families plagued by small paychecks and broken politics. dangerous waters naval war games with two of america's biggest rivals - russia and china stuck in the middle. america's middle class continues to struggle the as inequality grows and income erodes. the net worth of america's middle income families took a

hit in the period between 2010 and 2013. way after the end of the recession. since the last recession middle class families in america suffered through housing dusts, debt lots and years of job losses, riding costs and stagnant wages. middle class woes didn't started in the recession. they go back decades, back to when manufacturing jobs become scarce and labour unions begin to lose their clout. in the intervening time the gap in incomes widened to levels never seen before in the country. by 2013, average incomes for america's richest 10% were 19 times the incomes of the bottom 10%. for comparison, this so-called income gap ratio, 19-1 was 11-1 in the 1980, back when the

middle class fortunes turns. the united states is one of the most unequal countries on earth. numbers like these illustrate why the economic recovery feels hollow to people in the middle crass. class. for short far too many, pursuit of the american dream is bumping up against the reality of the easternings. get ready for the candidates to make up sorts of promises to help the middle class. prom that have fallen flat before now. small business owner is an example of how political promises to the middle class are falling short, leaving many stuck in the mission. for over a year, we followed jody as she fought to keep the american dream alive. as hard as she tries, she can't seem to climb back into the middle class. it's a long-term struggle of not

being able to have basic needs met. basic need as in food in the refrigerator, shoes to work in. gas in my car. it's a one year anniversary. >> it's been a hard year for me. harder than i expected, and i'm not sure that i would have done the move. had i known it would be this hard of the year. >> we met showedy in the winter of 2014. ed jody brought a gift shop in another part of town. he smged it for three years. >> during the first six months of us buying the store, the sales declined.

>> with recovery coming slowly, the business continued a downward slide. her personal fort yuns slid as well. >> i had to be - people said "file bankruptcy, get a different job." >> the single mother of one took a high-risk gamble. going further into debt. despite attempts to boost sales, there have been many dark days. >> sales are still not where they need to be. they are still of half of what the store was doing. not able to pay the amount. >> eventually those efforts began to pay off. >> the store is seeing an

increase in profits. jody is not confident good fortune will continue. >> i think that i'm fearful that the level will not sustain, there's no consistency. i can have 1,000 day, and the next day be 50,000 xz it will take a lot to be secure. many don't feel this it touched their lives. the rich are getting richer. the rest of the country are not. the verdict is clear. >> americans are struggling to find or keep middle class jobs. i want the middle class to mean something again. >> it's hard for people to go from the bottom rungs of the economy to the top. >> americans are feeling an economic retreat. in 2000 more than 60% of

americans considered themselves middle or upper class come paired to 51%. 48% say they are in the working or lower classes. >> jody's son is a high school junior. the straight a senior works 30 hours a week busting dishes. he learnt the value of saving by watching his mother struggle. she is i'veing the money that she can. i don't think it would be right for me to have the money and spend it on something that i don't need. what julyian will need is a college education. >> i'm looking at berkeley college of music. i can post and record music. i love it, i played piano since i was a kid. i think i want to pursue that

and be a producer but the 37,000 tuition is beyond jody's budget. >> there's no way. however, he can get the degree online, which is about year. experiencing his university envisioned. >> every other night i looked at scholarships i can apply for. i thought i could go to college, i feel like i'm there academically, i could do it but i didn't like the idea of being in debt. >> at 15,000 the tuition will be a stretch. she hopes financial aid and determination will turn the agreement into reality for mother and son.

family. >> i'll do this for him, no matter what. >> there's a smile that wants to come out. it's like i'm on the edge. of being act say i have moved business back to where it needs to be. maybe january 2016, then i'll be confident. >> jody is not alone. when we come back, the codd father of supply -- god gather of supply economics nose how to cut taxes for the rich. i debate him in

>> my name is imran garda the show is called third rail, when you watch this show you're gonna find us being un-afraid. the topics will fascinate you, intrigue you... >> they take this seriously... >> let me quote you... >> there's a double standard... >>...could be a hypocrite >> you're also gonna get a show that's really fair bold... never predictable... >> the should be worried about heart disease, not terrorism... >> i wouldn't say that at all... >> you'll see a show that has an impact on the conventional wisdom

that goes where nobody else goes... >> my name is imran garda i am the host of third rail and you can find it on al jazeera america helping the muddle class reduce income inequalities is issues both parties are talking about as we continue the endless presidential society, on the right republicans are questioning the party's belief in supply side economics. that's the idea that tax cuts for the wathy and corporations boost the economy giving companies more to spend, and they trickle down to the rest of the economy, the middle and low income workers. arthur is the former economic advisor to ronald regan, and is the father of supply side economics and has been meeting with several republican presidential hopefuls, including jed bush, ted cruz and scott

walker and joins me from nashville, he is a good friend to the show. it's a pleasure to see you. you are the guy that says cutting tax rates for the top earners will ignite faster economic growth. here is the thing. i'm not arguing with you. i want to ask you how you square that with what is going on. since you square that with ronald reagan, the gap widened. the federal reserve, i.m.f., income equality say that's one of the threats faced. why is that not working. >> the story you told about the person, the sad story about the shop and not having it work out. that is the example of what the anti-supply side economics does under obama and w. it was w and obama, who destroyed the economy, and frankly what we need to do is re-establish economic growth, and do it through kennedy, regan economics, and through clinton economics, whatever you want to call it.

tax rate reductions, creating expansion, and only then, then and only then will we get the prosperous. >> i don't want to get it wrong, but you may have written more books in your life than i have read. let me ask you this. >> funny. >> you think about it at a high level and are very smart. we are talking about jody. how would the wrong economics, whether it's bush or obama be responsible for the success or failure of her business. >> what bush and obama did, especially bush in the last couple of years in office is they paid people not to work and taxed people if they did work. the government doesn't create resources, they redistribute resources so every time they bailed someone out of trouble, they are putting someone into trouble and that's why we have the great recession . only now are we recovering, and it's been devastating not only

for the middle class, but the lower and upper classes. can you imagine being a black teenager in america where employment as a share of 13%. >> i want to go back - i hear you. i'm liking regan and clinton, not bush or obama. let's talk about this. under president regan, incomes for the top 10% went up 120% from the time you took office to the time you left. the bottom 90% saw incomes increase under regan, by 25%. income inequality was growing on your watch. >> let me, if i can, make a thing about the numbers, we created so many new jobs and taxpayers, that they were all counted in this income distribution when they weren't working, they weren't counted, so there's nothing wrong with providing jobs for the poor, the minorities, the disenfranchised

if it means income distribution goes south. it's here, it's not every american is made better off or any one of us is better off. >> i hope you are telling that to the presidential candidate. i know you have been talking to sam brown. he brought you on as an advisor. >> yes, he did. >> he recommended state cuts. three years later, let's talk to our viewers about results on this one. a 344 million revenue shortfall in a state that has a surplus. kansas's job growth lands behind. percapita has not increased. the g.d.p. growth fell behind that of the neighbours in the mid west and the great planes. based upon the odds here, the states that cut taxes have grown faster. high taxes, underproxed the lowest states.

those that introduced an income tax underperformed every one of them underperformed the in addition. looking at kansas, look at that. it was had been article in "the wall street journal", not even a week ago by a guy named wilson, that said all of these numbers are changing dramatically for kansas, and they look at it as being a bright spot. one thing that amazes me is mizzury is trying to emulate the policies, because they are losing so many jobs in missouri to kansas. my results look at long term policies, not one week or two weeks, but if you look at it over 10 years, kansas will be better off. >> i hear you, i worry. >> i agree with you, i wish it would happen instantaneously. but it wouldn't. >> we did something similar in louisiana. i don't know if you were involved in that. let's talk about wisconsin. scott walker.

i sought your vus. he's considering running for president. he enacted half a billion tax cut. the goal was to eliminate income tax. now it has a 2 billion deficit through 2017. there's a transportation problem. aid to walker and other legislators say more tax cuts can't happen. let me say this about that, if i may. i don't mean to push the logic too far. obviously you need taxes to push public services. when i look at the 11 states to introduce an income tax, did not improve public services at all. eight of them declined in public services for the rest of the nations, including test scores, police, fire, highways. three of those approved the provision of public service, and they did it by a tiny bit. some of the ones that did the income tax declined by massive amounts. look at what happened in

california, do they not have high enough taxes for you. they have the first fourth worst test scores in school education. someone must have brought it up. let's talk about that. >> i do love it. i like - when the tax cuts that you counselled brownback to do in kansas begone, believe it or -- began, believe it or not tax rates went up. >> that's true. that it went up. >> the 7.5." that makes it the highest in the nation. it's high. look at the results. from january to 2013, through september 2013, that's the latest data we had. california grew jobs.

also, california, the deepest decline in the procession. when you have huge declines, the bounce back is minor depending on what it should have been. i'm an ex california, and i left there, i missed california, and i loved california, i lived there most of my life. i don't adore the government taking that and driving good jobs and businesses. it has the highest poverty rate in the nation. number one poverty, fourth lowest education standard. what do they do with the money. they scanneder it. that's not the way i want the state to be run. i talked to you. this is what i love about the country. you and i don't share it's a lot of things. i can't thing of a more enjoyable way. i think we come to agreement.

>> that's the way of the world. >> let me say one thing if i can. you are one of the most wonderful interviewers. you listen to one someone else said. you are invited back. arthur, a former economic advisor. it's the author of a lot of remarkable books that are worth reading. next it's not surprising that russia and china are conducting joint military exercises. it's where they played war games. i'll tell you where and what the two minutes. >> being a musician, there's no demand... >> world renowned artist lang lang >> the moment you're on stage, it's timeless >> american schools falling flat... >> there are no music class in public schools... >> and his plan to bring music back... >> music makes people happier... >> every tuesday night.

>> i lived that character. >> go one on one with america's movers and shakers. >> we will be able to see change. >> gripping. inspiring. entertaining. talk to al jazeera. only on al jazeera america.

a new cold war is in a mediterranean sea, china and russia chose the provocative

location to play war games. the two countries have been conducting military exercises together since 2012. until now, they've been held in waters off russia's eastern coast. by moving them to the eastern mediterranean, the point is not lost on anyone. china and russia are flexing their alliance muscle in europe's backyard as a way to show they are not afraid to stand up to the west. it's no coincidence that the military drills are taking place after n.a.t.o. and allies launched war games of their own in europe. it followed chinese president xi jinping's visit to moscow, signing million dollar drills. russia has been driven into the arms of its communist neighbour by sanctions imposed. china is more than happy to have a wedge against the u.s.

the naval exercises are described as being part of a growing cooperation between the two countries, is this worrying any of america's allies. >> if you were watching the military parade in moscow, victory day on may the 9th, you would have seen what one russian common fator would have said was an inspiration of standing. no significant western leaders, the staff foreign attraction was the chinese leader, sitting next to vladimir putin, talking amiably together. though there is a friendship, what we do not have is a formal military alliance. interestingly, the chinese ships on their way to the mediterranean exercises stopped off in the black sea to celebrate victory day with the russians. where didn't they pause. they didn't go to the headquarters of russia's

black sea fleet. the crimean city, they went to the less controversial city. china is still shy of recognising russia's annexation of crimea. european and american policy makers will be watching these mediterranean exercises closely, but it doesn't seem like they are overly concerned, seeing these as provocative posturing. they are calling it an active phase of naval cooperation, what does that entail. >> nine vessels taking part in several days of exercises. the chinese said that what they'll be doing is maritime defense, replenishment, escort actions, navigation security operations, and live firing drills. the russians chipped in and said that these exercises are not aimed at any particular third

country, they are friendly. >> what common military defense interests do vladimir putin and china share? >> well, russia and china are both in the process at the moment of beefing up their military in order to better project power. so it makes sense for the two countries to learn off each other. they are not getting much military tuition from the west right now. they also both have an interest in pushing back u.s. military dominance in their region, they know that they can't do this now. exercises by what they are seeing in the mediterranean at the moment are an obvious statement of intent. but as i said there's no formal alliance between the countries, they have a long history of mistrust and they haven't quite managed to conquer that yet. >> rory challands for us.

russia and china showed off the alliance. they are in asia, u.s. allies are worried about the island building project in the sea, tensions worsened with reports that the u.s. would send ships and planes within 12 miles of china's built up reefs to demonstrate freedom of navigation in the region, harry fawcett sends us from seoul, south korea. >> john kerry's swing highlights the definiteies and the complexities of the relationship between the countries. in beijing, they talk about china's claims in the south china sea saying the land reclamation work was concerning to the united states. china's foreign minister said the commitment were unshakeable. here in seoul he sent a message to pyongyang, saying the reports recently of having executed a senior military figure, and

claims to have launched a submarine based ballistic missile were cause for concern and countries in the region would have to up the pressure given the fact that it had been rebuffing attempts to be engaged. he had to do managing of the south korea relationship. in the light of prime minister shinzo abe's trip to japan. the recasting of japan's interpretation of the passivist constitution, allowing it to come to the defense of the united states. even if japan does not come under attack. japan is seen here in seoul as positioning itself as the number one ally in the region, understanding the north korean threat and the strategic game played in relation to china's rise. south korea has an important trading relationship with china. it's being quiet about the prospect of u.s. anti-defense field planted.

it knows how controversial it will be in china, and relations between seoul and tokyo are at a low over what seoul sees as the refusal to acknowledge the war time and colonial era in seoul. kerry will be back in washington having seep close-up for himself remains. >> harry fawcett in seoul. thank you. that is the show for today. i'm ali velshi. thank you for joining >> trafficked labor on the front lines? >> they're things, they're commodities... >> we go undercover... >> it isn't easy to talk at this base >> what's happing on u.s. bases? >> the tax payer directly pays the human trafficker >> fault lines al jazeera america's hard hitting... >> today they will be arrested... >> ground breaking... they're firing canisters of gas at us... emmy award winning investigative series... fault lines america's war workers

only on al jazeera america isil takes more territory in syria, destroying symbols. assad government along the way. ♪ ♪ welcome to al jazerra, i am jane dutton live from our doha headquarters. also ahead diplomats discuss the migrant crisis in southeast asia while the malaysian navy searches for those stranded at sea. even u. leaders talk about greece's debt as the dead loom looms for yet another payment from athens. and protests against the chilean government turn violent. ♪