stating more than 80 million americans get the drinking water from systems that exceed national levels of lead. and they are not on record of being in violation. the sure to watch c-span's washington journal any live at 7:00 eastern. join the discussion. tonight on c-span, a look at the state of employment. then attorney general loretta lynch talks about the investigation into hillary clinton's e-mail server their own private meeting with former president though clinton. -- bill clinton. after that, a group of young activists talk about racial issues they have encountered in today's education system. economist and author edward blaser recently talked about the

state of employment in the u.s.. by looking at labor market trends and government policies. he also spoke about the impact employment was having on suicide , divorce rates and drug abuse. from the manhattan institute, this is an hour. that beforemarked he burst onto the scene in the early 1990's, urban economics was dry up. no one had come up with new ways to look at cities. it continues to redefine economic, particularly urban economics at harvard where he is taught since 1992. he has published dozens of apers in his 2012 book became new york times best seller. he served as director of the tubman center and director of the rappaport institute.

manhattan institute is honored to cap him as one of our adjunct senior fellow. 2006, titled why are skilled cities getting more skilled? is revisiting whether we have reached the end of work. at some who just sent in his final college tuition bill, let me say that the answer to that question is a solid no. glaser -- let a me welcome ed glazer. >> thank you. i'm thrilled to have the opportunity to give this lecture. honored that you have given me your time. this is a somewhat unusual lecture because it is not about the things at the court my

research. instead, it is about the social problem that i think is america's largest you may think it is odd that academic person thinks it he works on is not the most important thing. that is quite unusual. has is something that disturbed me and i think it should distribute as well. my objective in the next 20 minutes is to not convince you that i know the right answer to deal with this, but to convince you that this is a great social problem raising america today. what you are looking at is employment rate, not unemployment rate. not labor force participation rate. where i was born in 1957, 5% of primates males were jobless. 50% of -- 15%an are employed.ales

during every crisis the implement rate drops and then comes back half as much. when he pressed together what has been happening, i put this up so you don't feel good about end,ght decline at the when you look at the data cutting into part, see that 45 happened 34-year-old employment has coming back -- 24-34-year-old employment has come back to their reentering the labor force. 35 --ou turn to the , they are out. the drops are down and seem to be permanent. the reportted out that came out this month on this issue. labor force participation and ship.

i don't agree with all the recommendations but i'm glad they're casting a light on this. what this shows you is that the triangles show you where we were in 1990. if you look in 1990, the u.s. was 10% for non-employment. today, we are at 17% and we are the slovakitory of republic. we are profoundly moving in the right direction. one thing i want you to take away from this is not an inexorable that you going the wrong direction. germany was higher in 1990 and is today. made to the they labor market laws in the past 15 years. i think that is a minimum of

what we will be required to do. of facts that relate to this. a tripling of the share of unemployed males since 1976. there were 73% americans not employed. may 20 15, 2 112 million. a huge increase. employment rate differs by education. 72.5% graduated. 43.3% dropout unemployed. massive gap. the back on is a combination and i will come back to this. combination of trends in the labor market that the government is not responsible for and government policies which interact with them and actually poisonous matter. manufacturing employment has fallen. there has been of course the massive rise in the number of

disability participant. this is a boring graph but it makes a point. massive change disability. this is not because america has gotten fat, this is a choice about a public policy program that very strongly discourages people from working. if there is a thinker, it is not that there's anything wrong with a well-meaning impulse to help people who are hurt, i understand that in post. but there is something wrong when government policies put incredibly strong disincentives to be working. about has to people who face to the present tax rates, it is bad. but those has got people have nice jobs. of cork. a tradition how about when we have effective tax rates of 70%, 80%, 90%, have you people at the other end of the scale? people who lose 30% on the dollar because they food stamp

goes down. it was a bit more because the income tax credit and other benefits. the effective tax rate for the poor could be close to 100%. we don't need to look brother and that to see what work looks so unappealing. accompanying this, there were not government policies that discouraged work. every unemployed person is a failure of entrepreneurial imagination. the thing and is to come out against unemployment is we need new startups. she is, new firms to come up with new things to do. we are at a point where democrats about entrepreneurship. very largeof jobs -- difference.

now, this is the backup. let's look at the public policy response. wagescus is on income and , not on underemployment. a couple of quotes. fore of the, equal pay equal work. they leave. raising the minimum wage. all these things matter to hard-working families. i agree. but they would not be working after all the things are done. bernie sanders leading the fight for $15 an hour minimum wage. all the focus is on the witches. the focus at all on underemployment problem. massive thingthis probably -- troubling america. on anonth that you are appointment insurance you face a major disincentive preventing

you from working. -- end appointment insurance unemployment insurance would make a difference of 600,000 jobs. it is far more likely to eliminate 600,000 jobs and to create it. -- they integrated. that there is a fair amount of data to support the view that making someone's wages go up by 4% rather than 2% is very small potatoes relative to making sure that more americans have jobs. have a meaningful connection if you like their lives have a purpose. let me summarize a set of facts on this. drug data on unhappiness. strong data on unhappiness. unemployed are unhappy. suicide is higher for unemployed. divorce rates go up substantially by doubling the

rates from the blood. drug abuse, higher for unemployed. has a pervasive and papal tendency to become permanent. this comes from my own work on unhappy cities. the reduction of happiness relative to employed earnings over $75,000. if you are and $60,000, one is miserable and for his gleeful. lose some points if you go down. job, it is aour reduction of one. the distant five times as large as you would think. how the world could look at this data into the important point is to move people from 33 k to 43

k. make your people do not end up in the wrong category. have a tendency to understate the cost of unemployment. after all, maybe unemployment is on terri. 80 people are having a great time been unemployed. there's anything i've taken away, this is the wrong thing to think about it. this is not a happy state of leisure. the state trapped here and makes you miserable. one of the tables is helpful because it shows what time used is of not participating men. previous to this and the truth is women do useful things when they're not in the labor force. they take care of their families, deny stuff. what do boys to come, tv.

-- boys do? television. 335 minutes a day watching television. maybe if you started with the hypothesis that watching to be made you happy, but this is not a recipe for feelings of light satisfaction -- life satisfaction. that is what they are doing. they sleep a little more. they spend more time caring for house for -- household members. this is from a paper laughter out,can out, that came unemployment is associated with massively more suicide and slowdowns or economic growth. theides are tightly tied to labor force, being alone, socially disconnected.

this is a smithsonian point. we are social creatures. the bonds to people around us keep us healthy and whole. stronger.arter and the terrible thing about none of is you break those bonds. you are away in your home watching television. he was all the support nacre -- you lose the support network. this has had a traffic impact on life satisfaction. it also has catastrophic impacts on divorce rates. this was the most legible version. this is from finland. divorces per thousand marriages. if you are employed, divorce rate adjusts. between one and five, almost no difference. income is not causing the difference, it is unemployment.

this is drug use. very moderate effects on income. large effects of being unemployed. 80% of the unemployed have used illegal substances in the last month -- 18 percent of being employed have used illegal substances in the last month comparison to 8% of employed. look at the rise of opioid deaths. this drug ise, correlation to the resident opioid death is what share of the population. it is about joblessness, homelessness, and also about things that happen with disability. this is one of the many papers showing the long run impact of unemployment. what this shows you is what happens if you get laid off at 22. you get back your job

eventually. impact of permanent 5% on your wages going forward. early unemployment spells are not free. they are permanent change. this is, and i apologize for this, 20-15-year-old graph from a great paper. the graphics are awful. this is shown the clusters of unemployment rate. is thatt of this paper the combination of europe of their labor market detection and policy and adverse economic shock, started having social democracy, their little affect because on the economy was coming along, they inflate and people do not work there -- by the 1980's, when he had the

disruption of the oil, yet people laid off in the system took over. they no longer, have incentives to go to work. connected to people who are out of work rather than being an work. sister teresa stepped in. in some sense, there is a difference between europe and the north and southern europe. germany, sweden. friday at northern social democracies 15 years ago, 20 years ago saw this and responded. they understood that they cannot go on with the system. so they changed things. most of the labor market, moved in with more sensible policies whereas southern europeans from italy, greece, spain, did nothing. those problems are still very much with us. there are unable to make the changes. germany, --t way or

are we norway, germany or are we someone else? i will go through a few of the policies that i think make up the war on poor. motivated by understandable reasons. motivated by a desire to make the lives of people who work better. with anynot motivated attempt to solve the implement problem. drastic extensions work in the wrong direction. they limited the incentives to go back to work. each one of these programs separately imposes this 30% tax on earning. payment, decreases desire to work. minimum-wage craze.

minimum-wagecan has stayed so low for so long, we were at a position where we came to forget that a minimum wages to have major effects. we compared new jersey and pennsylvania with tiny differences and did not see huge differences. i let us, if you have huge minimum wages, it will not matter. wrong conclusion. nsb that shows just how costly -- a nice paper i will show will show just how costly it can be. this is a very classic deeper. -- paper. there are debates around this. the basic back is along the x access until the payment run out. i percent chance of getting a job. sparks up asp -- payment start from that. when the cash runs out, you

start looking for work. if i doubled the number of weeks insurance,mployment it will double the amount of time you are not looking for work. at is theare looking extension of disability compensation for veterans and this was for type 2 diabetes and motivated by agent orange. what this meant but that those people who had boots on the ground in vietnam had access to this and the people who served at exactly the same time did not. they compared these groups which look similar but before and after. what you see is after 2001, a huge gap to the boots on the ground people first the boots on the non-ground. among the group that takes it up, 20% of them leave the labor force.

guaranteed basic income, this is an idea.and i agree -- to how the alternative they would you think about ui and disability insurance. of taking minimum income, you are more and you just -- guaranteed basic, infeasible the economics are better but the idea of giving no stringsatch -- attached, the absence of an infinite amount of cash poses a slight problem. [laughter] relevant for disability insurance and unemployment insurance. the effects of these because they discourage work. they are tied to not working. government creates such

strong things to stop people from going to work. when you get unemployed, you get a check. maybe we require you to look for work. but we don't stop the payments when you go back to work. the same thing with disability. give them a check. you don't reduce it. this puts the normal feel about disability on its head. often the fear, it is terrible. he is working on getting disability. we should worry less about fraud and more about the fact that we are stopping people from using their talents to make the world better. don't make it dependent on them not working. the government is to stop bribing people to be idle. ae minimum wage, we have resurgence of work on the

minimum wage. it terrific new paper that looks at the impact of minimum wage. papers reported to find no effect. what happened after 2007, a series of drops of the federal minimum wage that hit poor parts of america. places like low-wage state and it mattered and that of for low skilled people. you the unemployed high school dropouts bound by the federal minimum wage. bound, theytward had lower minimum wages to begin with. they started out with a lot more employment. they started out with more young high school dropouts. come they start clawing at the minimum wage. falls and falls.

end, when they are all lower, their converged on each other. he ceased to have the difference. estimated that there is a 5.6% decrease in employment for this group to the minimum-wage which represents about 42% of the overall decline of the implement rate for this group. is not a free lunch and moving which is to $15 an hour be a recipe for disaster the less skilled workers. ago which 20 years came out that made the point that the stuff was too small. they urged us to look at puerto rico which had much higher than wages relative to the earnings. the case index is shown the ratio of minimum-wage to average wage. it is close to one of their. -- over there.

and implement rate goes up, a goes down. the employment rate goes up, it goes down. what i think about this, i think the thing that upsets me most is the morality. at the economics are bad but this perverse notion that we are going to have redistribution in this country and will pay for it, not taxpayers, not people from we will get the customers of walmart to pay for the middleweight. -- minimum wage. we will get people who are buying hamburgers they will pay for the minimum wage. when you impose higher wages the service industry, we passed along to customers. that means we're trying to do redistribution on the backs of the poor.

it is an absolutely daunting thing. on top of the fact that to the extent to which the only groups in this world that are fighting hard to solve the unemployment problem of the people employed less skilled workers. they should be heroes, not villains. there better path? sure. can i solve this thing, no. but there are ways to move in the right direction rather than the wrong direction. one of the bright light that we have this country in terms of working with the earned income tax credit, is deeply complicated. it is a recipe for fraud in a lot of ways. make it simpler. , push the wage of burlesque of for less skilled workers but due to the tax code, do it through our spending rather than imposing on workers. limit the payroll tax for lower earning workers. make work pay as much as you

can. it will be coffee, not from. but mix a lot more sense than try to impose it by raising the minimum wage for service industry. eliminate all joblessness requirements. get rid of any disability insurance or ui that a contingent upon not working. this is a thing that could be done. we have to reduce the amount in some cases. there's no reason why you need to make these things contingent upon not working. how much people earn. i never want to see another government program that pays people not to work. that discourages people from going to work. reduce payroll taxes. the regular entrepreneurship. i will talk about innovation and instrumental -- instrumental skilled progress. does the stuff working? we have a great example from the way which is prevented with the

disability program. they expected at a threshold that you could receive [indiscernible] instead of going over the income , you get to keep 57 cents on the dollar. is the max income your letter to earn. the gap between this line and this one shows you the extra people working. these are the people who did not get on the program. the reason why there was the if you gotwas that your display payments before you could get the program and not afterwards. clear-cut operate could compare right before and right after. the number is like a percent increase in employment for people -- 8% increase in

employment for people. norway should be able to do this and we cannot. skills. again, have to reform our program and think about how we can provide training to people. the project, entrance kids and public schools to be actually ours. it does so in a way that starts off by having them sell things on ebay. in -- they are moving into madison park high school. i don't know that this will work. ist we need in this country not to think we know the answer, what we need is a flourishing of all the kind of innovative ideas. when they flourish of the private sector initiative to teach people how to become entrepreneurs.

the possible project may work. if it does work we will scale to. if it is not, we will try something else. this is how things should work in this world. is,vation centers, this laughter are talking about -- last year i was talking about how to create a enterprise zone. thinkare two ways to about his own. subsidies on. in place will drive people to relocate. this is almost surely the wrong way to go. zone.her is a reform a post where you can try things. a town in massachusetts engages, there's one person.

one person in charge of making sure the business gets through. measuring just how awful our local regulations are in terms of making things harder for businesses. i can get one-stop permitting and businesses for help. do in the us attractive areas, see if it works. unsurprisingly, the city of boston has proven much more enthusiastic of doing things that look fun rather than actually deregulating. i will take what i can get. this involves creating some social connection and training in the area. we need to continue pushing on this. entrepreneurs are our answer. barrier, weou put a are saying no to a poor kid who could have a better future. formay not sit on the couch 300 minutes a week.

my favorite stories about local entrepreneurship and regulation. it is a story about detroit. about five years ago. a poor woman who runs a good tck and was to start her food truck in detroit. at a food truck 4-5 times a day. i did for 25 years. they are fantastic for this area. easy for people to get started. so often held back by rules of this poor woman was. the idea that detroit would say no to any ultra newer seems like nanosphere -- entrepreneur seems like madness.

i was on npr show with this woman in the congress and of the city of detroit. there he was, a nice guy. getting pummeled. says,y after an hour he just start your food truck, we will never catch you. [laughter] i wanted to end on that story because it does give me hope. america is a country full of entrepreneurial people. people of vision and people who for centuries have been coming up with jobs and new ideas to make the rich and employer thousands of people. we can do that again. people.y thousands of we can do that again. regulations,duce make sure it is easy to start food trucks and not hard and we need to stop paying people not

to work. those three changes are the fight ahead. i hope you will join me because i think there is no more important one. [applause] >> i have a question about the of your topic. what about the work ethic? what is the date of respect to retirement? people retire after a long time and look forward to leisure do

they stop working and i get bored but not working and going to leisure? and what about the issue of work ethic but those who are employed? how do we know they are working as opposed to using social media all day? >> to question. retirement. who havepeople significant issues with retirement who find it tilting and it source of misery. some people are able to find value. it is making sure your life has purpose. if your retirement is something, doing things when ideal grandmother doing literacy training for people in her town, she never ran out of stuff where it seems like every cab driver i have a guy who retired two years ago and cannot stand it and is now driving a car because they

were so miserable being a loan with her life is so miserable. life so miserable. the government's job is not to go against that. i'm worried about trusting the federal government with being in charge of providing ethical training for anyone. i think as a parent that is about as important a job i have. as members of social groups in our communities and neighbors people who go to our churches, that is for the training is communal as well. thatnk it is hard to think the public role, although i like the mayor who will speak for diversity and. -- hardware. hardwork.

unionization, it depends on what type of union and where. i will tell a story on this. my spirit on unions, personal story. hallears ago i did a town with mayor walsh when he was just elected we were there at 6:30 in the morning. we had to partners. -- two partners. let me tell you at the clock in the morning, -- 6:00 in the morning, you were there for him and working like rag dolls. the teachings for staff of the community college. they were less present. unions, need about to recognize there are lots and some work quite well. [indiscernible]

>> thank you very much. if i interpreted the chart correctly, i'm curious as to why it seems both the unemployed and employed are sleeping more than 12 hours a day. that is not my question. [laughter] it is well-established that throughout history technology and innovation have created more jobs than they destroyed. >> other including sleep. >> they go. [laughter] >> if i interpreted the chart correctly. through technology and innovation, these days more and

more economists are saying that this time it is different including economists on the right. what is your view on tech knowledge he and innovation -- technology now and innovation. what is happening? >> certainly when you think about the difference between a bill gates and henry ford. in waysrd and debated and appoint hundreds of thousands of less skilled americans. innovators of the computer age have done much less. once innovations have been that employ highly skilled workers. it is hard to think of great xamples of tech entrepreneurs to move towards employing less skilled workers.

perhaps the spatial isolation of silicon valley. they don't see poor people around them so does not natural for them to employ them. hasbulk of the technology moved in the wrong direction. we have a glaring counterexample. uber is the opposite. a copy that employs -- company that employs lots of less skilled people. major did not face distortion, it is hard not to think more entrepreneurs will see that. people that would like to find some work and you are not able to. that is opportunity. of -- everyfailure unemployed person is a failure of entrepreneurialism.

it is been skewed towards highly skilled workers in the bulk of high-end entrepreneurship has been targeted towards higher skilled employees. nothing written in stone about that. when there are opportunities, a lot of people will figure it out. uber did.at as long as we don't regulate them away. [indiscernible] i'm amazed by your data and that think it is fantastic. we work with disadvantaged people getting them jobs all the time. one of the things he had not addressed which we see everyday is how much work socializes people. young think of inner-city

people or people coming out of prison or minorities had never worked, when you get them a job, they suddenly talk differently, walk differently, dressed different league. differently. that is valuable. some of people on the far left think that income support is the best thing. they never talk to these people. the last step is socialization is work. or communitykdown breaks down. employment still provides that. i wanted to ask you if you have looked at that because to us that at some of the most viable things f. >> i think you are so right. capital chelation occurs on the job. , more important

skills. on thing i would to push you his industry for the operation, but i think it is for my nephew as well. it is not just an issue of people from broken homes, if any 21-year-old in modern society has been told they are brilliant for far too long in our love to get away with stuff by loving parents. learn that isy not the way things should. that you need to be more focused on delivering service to people around the. m. >> we have an event coming up in november into the extent you

could discern your policies, would you care to comment on how the 2% presidential candidates presumedfluence -- 2 candidates might influence? >> i will continue to bury my head in the sand. hope it goes away. [laughter] i... [laughter] this election reminds us why do so important to the institutions to stand for reason and evidence and ethics and we just a to be talking about the politics that matter in the right way to have evidence-based policy. often therey how are lot disagreements but when you have people believe evidence makes policy, you get two things

very far away from either candidate. the important point now is to keep on standing up for reason and knowledge in focusing on the problems that matter if you're andting for in america -- for fighting for in america that is great. skills that work with everyone. >> thank you much. very much. encouragesw roxbury partnership? it department of congress and i want to know where the department of commerce has put entrepreneurship?

jersey does, new fair -- sosa where social welfare threat to work, your thoughts? >> i will take the last one. i spent some time in jersey this year. amount,not a huge obviously i think a variety of these programs are sensible. they are in a world in which they are so privileged and some of the ways. the weather is fantastic, they had the set of rules that make it easy to be financial hub, it is hard to think there will be a great example want but they do many sensible things. the other thing to worry about it they are dominated by a few

large firms and not great on the up or ship front. conversation -- i remember having this conversation is a, why would anyone be an option for newer. the people graduate from stanford today to if you told -- they found impossible. say, it starts with a social space. a person there who tries to make sure their program bring people in. the project is a well-designed program that works people through steps.

start field by selling things on ebay and the yosemite making things. moves them into making things. fabulously successful. and new york, over the past 15 years done a number of things to encourage entrepreneurship. this great map of all the permits you need to go through to get to start a restaurant or shop. the problem but there were 17 things they need to get there. we hope for more going forward.

>> thank you. i agree with everything you say, but what upsets me is that we are preaching to the choir. i want to focus you on the union thing. you said sometimes union play a role. i have a problem with that. [laughter] a restraintasically of trade. contrary to competition. can't in a co-op and you do into the union 32b which is a nonskilled job where he opened the door, press the button for the elevator and these guys come

some of them are working two shifts. people who struggle to make minimum wage would love those jobs. if do you justify any union you believe in free competition in the free market? freet i justify is association of adults. the extent to which you are forming the social group my think that should be legal. thinking bough -- do i unions have increased deployment, no. they raise wages and reduce implement. there are also things unions can do along socializing people that are not terrible. gave that example -- example of construction workers. there are times that having social constructions --

connections help. in the training and vocational training. it can be a significant problem. journa -- >> city journal. he said the countries in western europe that have more regulation than we do and hire better wages -- minimum wages have less on implement. >> -- unemployment. >> there we are. we are looking bad. it is certainly true.

true that sweden and german are not free of regulation. i think the right idea, if i were going to have a two factor model it would be about regulations stymieing entrepreneurship. that is bad in europe. that is bad here. on the other side, skills. there's no question they should look at the german educational system and doesn't better job at delivering skills. the right answer is not the german has it better labor participation. it is that they attended vastly better job of providing education training. that is the right lesson. not that we should be imposing more regulations. thank you. if you think about what the trends are in innovation. it seems that robotics and artificial intelligence are

trends. maybe exacerbated by minimum wage on the robotics have. a lot of the low labor jobs will be taken over by machines. what are the implications for that? again, this related to the previous thing, i don't think any of this is inevitable. it is true that the long run role of the human production is unlikely to be manufacturing. there is still a small amount of artisan all stuff along the edges. it is service employment. lots of reasons, why cities are not going away and took medication will not compare with sharing a meal or a kiss or a smile. electronically delivered stuff when i compare with having a good physical service. an interaction with someone in a store or a car or anywhere else who is charming and pleasant, it

is a delight. the question is whether or not the people out of the labor force can deliver it. this is why the social skills are so important. if you don't have people of the social skills to function well it is a big trouble. world, a view of technological determinate that is wrong. these new technologies create challenges, but they can be met with some, nation of skill and having sensible regulation that don't discourage people from working. i can imagine a world where we have a heavy service sector that is funky. -- functioning. see a recent why that can't happen. final question. i don't want to end. >> back to technology.

you gave us a specific example to the question earlier about the tech guys. ebay is the consequence of what microsoft has done in crating enterprise software that permits such things. that is what automation brings. similar structure to uber. outhere's a new book coming called the number of everything. -- uber of everything. they are not employers. are you the money with the n group? if i country study on the coalition of access of opal

technology and cell phones and smartphones. was externally interesting. -- externally interesting. -- extra ordinarily interesting. deposit coronation. -- a positive coordination. it sounds plausible that think it makes the point that technology is not doing anything. -- dooming anything. i want to and on this point. -- end on this point. this is not a happy speech. i'm disturbed about our country and the policy debate around this problem. we're not have the right debates about how to reform these programs. despite the that,

room, i remain fundamentally optimistic about this country, the city, that remains optimistic got there is so much entrepreneurial talent and there is so much in this room of people who are smart and thoughtful who care about making america and new york a better place. i thank you for all you do for this country and thank you for your time here. [applause]

>> past republican and democratic national convention saturday night on c-span. >> coming up next, a conversation with attorney general loretta lynch. then a group of young activists talk about racial issues that they have encountered in today's education system. and later, and look at how religious voters do donald trump

enter tennessee. -- and his candidacy. loretta lynch said she would accept the recommendations made by those conducting the federal investigation into hillary clinton's use of a private e-mail server. the attorney general made the statement while being interviewed at the annual festival in colorado. she was also asked about a private meeting she had with former president bill clinton. this portion of the conversation is 15 minutes. >> good morning, everyone.