we're going to dig more into those jobs numbers and why no one seems to have a serious plan out there. we're going to continue writing herman cain's political obituary, expecting his wife to take him to the woodshed tonight. and we've got a wealthy capitalist who says that raising taxes on the rich is the key to creating jobs. folks won't want to miss that new voice. the show starts right now. good afternoon. i'm matt miller, in today for dylan ratigan. the big story is jobs. and you and i know it will be the big story from now until election day next november. that means the politicizing of the jobs issue is set to reach new logic-defying heights. we're in for another year of posturing and tinkering at the edges instead of solutions. the democrats say the new unemployment rate shows we're on the right track. while republicans say the

120,000 jobs added last month is so meager, it will take a decade for us to get real job growth. not to mention that the real unemployment rate is stagnant at 18%. as dylan would say, let the pro wrestling begin. give a listen. >> despite some strong headwinds this year, the american economy has now created in the private sector jobs for the past 21 months in a row. that's nearly 3 million new jobs in all. >> more than 300,000 americans left the labor force last month. that means they stopped looking for work. and i think we should all be concerned about that. >> i hate to sound like a broken record. we can create an almost unlimited number of jobs out of this, even with this lousy economy, even with mortgage crisis if we can work out the financing. >> if you look at the number of new jobs created, there's just not enough new jobs being created in america. >> everyone's got an opinion. no one's got an answer. here on "the d.r. show," we're

about to launch what america really needs, a 30 million jobs tour early next year. stay tuned for details on that coming soon. but for now, to get behind today's jobs numbers, let's turn to our dynamic duo of jobs report dissection, the caped crusaders of economic analysis. peter morici, former chief economist for the international trade commission and professor at the university of maryland smith school of business, and msnbc contributor jared bernstein, senior fellow at the center on budget and policy priorities, as well as vice president biden's former chief economist. welcome, jobs superheroes, both of you. jared, let me start with you. as i understand it, the unemployment rate went down this month because a lot of people got discouraged, you know, aren't looking for work, so that sort of takes out the denominator. is this the secret white house jobs plan, to discourage enough people from working, so we can push down the numbers to 7% by election day? >> well, first of all, thanks

for making me and peter sound a lot more exciting than i typically think of us. but, no, it's not a secret plan. the numbers are right there in the report. and you're right to focus on them. at least half of the decline in unemployment from 9% to 8.6% is attributable to this fall in the labor force. lots of folks giving up, getting off the picture. so i don't think it means that, you know, the numbers are cooked or the white house is trying to push anything. i think what's important to recognize is that as we're generating around 120,000 jobs a month, that's about the trend that we've been at for the past few months. that's just about good enough to hold steady. and if you factor in that distortion to the unemployment rate, you know, we're hanging around 9%. and, in fact, if we don't undertake some of the very important measures that are out there, that we need to get into this system, to get that unemployment rate moving down, it's just not really that much of a reason why it should start heading south. >> now, peter, this is what

frustrates me about this debate, because even if you support extending the payroll tax cut or deepening it the way the white house and the democrats are trying to do, this is still tinkering at the edges. the estimates i've seen is, maybe that will create, at best, 1 million or 2 million jobs over the next year. i understand that's something, but there's 25 million americans who want full-time work, who can't find it. wi are we doomed to another year of this kind of posturing? >> unfortunately we are. our payroll tax cut, while it's going to be difficult to oppose in the end, gives us about 35,000 jobs, but only for a year, if you don't extend the payroll tax cut, they go away. and we need 13.1 million jobs over the next three years to get unemployment down to 6%. to do that, we have to tackle the tough structural problems that neither the president nor speaker boehner have been willing to address. and those are the huge trade deficit with china, all that domestic oil and gas that we could develop and develop more safely than the oil and gas we

used from abroad, streamline regulation. we certainly know that banks need to be regulated. but it's getting too expensive to do. after all, that's why we've added 120,000 bureaucrats over the last two years or so. and we need to do something about high health care costs. the health care reforms simply didn't get it done. >> now, jared, you, obviously, you've worked for the white house. you've been in the room in these meetings. the white house, for a good reason, is trying to say that we're at least moving in the right direction. what do you think the politics of this are now? and the economics? i mean, i think they've got -- they feel like they've got a tiger by the tail with a payroll tax cut and juxtaposing that with the republicans defending a handful of the rich for a straight swap ton that tax cut. that basically the kind of message that we're going to be hearing? and is that really -- maybe that's enough to get to 50% plus one, but is there anything that's going to be bigger on the

jobs side? >> well, i think the combination of the kind of message and framing that you just correctly identified, matt, in context, in context of an unemployment rate that's really coming down. i mean, i think it's pretty hard to get out there and make your case, if the economy's truly stuck in the mud. but if things are improving, even if they're improving slowly, and one month does not a trend make. i mean, we've been talking about how this decline in the unemployment rate. we'll have to see if that really sticks. but i actually do believe that if the payrolls continue to generate somewhere between 100, 180,000 per month. if the unemployment rate really does start to tick down, and you have this framing where the president can, by the way, totally and legitimately argue that he's got some plans that would help. now, will they get you to 13 million? of course not. but will they add a couple of million jobs to the economy, which we absolutely could use right now? i mean, this really is a don't

let the good be the enemy of the best moment. and i agree with you. and peter, we've got to do a ton more. but moving in the right direction, a little more quickly, and certainly targeting those in congress who are blocking those measures, i think that's a legitimate platform. >> now, peter, you know, when you look at what's going on in europe, and the fact that they're still, despite some of the central bank action this week, they're still kind of on the brink. what happens there could have more impact on the jobs situation in the next 12 months in the u.s. than any of the kind of smaller measures that washington and the white house are considering right now. how worried are you about the impact of that and what would the impact be under whatever scenario you think is most likely? >> well, no matter which way it goes, i think it's going to be bad. if the germans pull off this greater fiscal union, their prescription is draconian austerity for everybody but the germans. and as a consequence, europe will be thrust into a pretty terrible recession. and that can't be good for the united states. so much of the gains that we've made in manufacturing have been

through exports and europe is our largest export market, and that is about to collapse. if they don't come to a conclusion, we're going to have a period of moderate chaos in europe, as they rearrange financial arrangements with their restored national currencies. either way, it's hard to see a positive outcome. today i debated the majority whip from the house of parliament there. and i frankly thought he was in another space when it cams to economics. i don't believe the germans have a grasp of how much heck and havoc they are imposing on the rest of the continent. >> now, jared, help me, because i'm naive here. if we've got a year to go before the election, i understand what the white house message is. but i don't understand if they're going to have a hard time passing anything. why won't the president propose something that's much more equal to the size of the challenge and fight for that? you know, adopt your school's repair program, but on a megascale. go much bigger on all this, so at least he could say, i've got a plan that will create 10

million jobs over the next two years, and the republicans are blocking me. >> i think that's -- i actually agree with you. i mean, i think that would be smart. and i actually thought that the american jobs act, it is $450 billion of stimulus. so it's not trivial. i actually thought there was a lot to that. the only problem with the scenario you're laying out, matt, is that we are -- and i don't want agree with this either. but we happen to be very much in a climate where whatever you propose, you have to propose to pay for it. you simply can't go out there with today's politics. it's actually a real problem. there's a very deep misunderstanding of the issue of keynesian economics and temporary deficits. but given that misunderstanding, the fact that i think policy makers have that wrong, it's very tough to go out there and say, we should do this mega program and put it on the credit card. i think that probably would cause the president a lot more problems than it would solve. >> all right. jared bernstein and peter morici, our dynamic duo, our

caped crusaders. we're going to leave it there. you know win just don't know how we're going to solve this without the boundaries of debate being challenged, jared. i understand what you're saying, but we'll fix it next time. thanks for sharing your thoughts, guys. >> you're welcome. coming up here on "the d.r. show," is the cain train about to jump the tracks? there's no shortage of political fodder for our mega panel. plus, another example of the 1% taking care of themselves and expecting the 99% to foot the bill. wait until you hear the latest headline out of the university of california. then, making money and doing good. you wouldn't know it from recent news, but our guest says it can be done. he'll tell us how to be successful and sleep well at night too. just ahead. ♪ i think i'm falling ♪ i think i'm falling ♪ i think i'm falling [ male announcer ] this is your moment. ♪ for you [ male announcer ] this is zales, the diamond store. take up to an extra 15 percent off storewide now through tuesday.

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look how angry and defensive mitt romney gets answering questions about previous political positions he took when he was governor of a more liberal state, massachusetts. and the political positions he took when he was running for president in the more moderate 2008 republican primary. where have i seen that evasive, defensive attitude recently? >> she had these 61 texts or calls, some of them at 4:00 or 5:00 in the morning. >> all it says is 61 times. i talk to a lot of people 61 times. we don't even know over what period of time. >> say, but, wait. that's herman cain trying to evade questions about a potential mistress. i mean, why would mitt romney behave the same way about his political --

i think i figured out what's going on here. just like herman cain, mitt romney has an embarrassing person in his past who he's desperately trying to hide. for herman cain, it's a woman named ginger white. for mitt romney, it's mitt romney. >> that's jon stewart poking fun at mitt romney's flip-flops while still getting in a jab or two at the train wreck that the cain train has become. while romney retains his front-runner status, herman cain is fighting for his political life. the campaign says to expect a major announcement tomorrow. as we wait to hear whether he'll remain in the race following claims of a 13-year affair. cain's alleged mistress was on "the last word" with lawrence o'donnell last night. watch this. >> it wasn't a love affair. it was a sexual affair. as hard as that is for me to say, and as hard as it is for people to hear it, you know, it

pretty much is what it is. >> meantime, the man now replacing cain at the top of the polls, newt gingrich, creating his own controversy, telling a group of iowa krvconservatives t poor kids have no work habits. watch for yourself. >> they literally -- they have no habit of showing up on monday. they have no habit of staying all day. they have no habit of, i do this and you give me cash. unless it's illegal. >> weill comments like that get newt the boot from the top of the heap? will this be the last stop on the cain train? and who will be the next republican flavor of the week? only a few weeks left before iowa. all questions for the friday mega panel. back on the east coast, that's ari melber, krystal ball, and toure. welcome, guys. >> hi. >> thanks, matt. >> hi. >> so, ari, let me start with you. you know, lawrence's interview with ginger white was very painful, but also, it's like a car wreck. it was kind of mesmerizing to watch at the same time. i guess the big question at this hour is will cain's unseemly

exit from the race after he goes to the woodshed with his wife tonight, will that hurt his chance for the fox tv show, which was always the only rationale for his candidacy? >> well, i think you just coined a good sort of brand for this republican primary, which is mesmerizing pain. the thing about herman cain is that he is now contemplating going from pretending to run for president to not even pretending to run for president. no offense to you and the fine show that we're doing here, but i don't think this in and of itself is a major news shift. i do think that it says something about the republican party and that is the bigger part. and to the final part of your question, the fox news show, look, herman cain had a radio show, was building a brand, first emerged on the air waves and elsewhere, fighting clinton's health care way back in '93. he's always had an appetite for attention. he's gotten more, i think, of the negative attention that he doesn't want, but with it, he's gotten to go on "the tonight show" and a lot of other things. i can't speak to his personal

situation. i don't know all the facts. what i can say is that for someone who wants the spotlight this much, and as you say, may want a further career, this has all been a net gain for him. and look, it takes a lot of idiots to have a bubble. so we've all been, at times, idiotic in feeding his bubble. >> krystal, i don't want to typecast you as a woman responding to the cain situation now -- >> well, she is a woman, matt. >> but i'm still interested, as a woman, what you think of the way this is kind of unraveling -- it's kind of awful that we have to even, you know, be spectators. >> well, the thing about this that was really disturbing from the beginning was the way that, immediately, the reaction was to defend cain at all costs and to blame the victims, to throw them into the mud and really try to smear their reputations. i mean, that was the immediate place they went to, along with accusing of us of being racist for even mentioning there was sexual harassment charges. that was the really disheartening part. and i have to say, i spent

probably too much time on the women for cain website that popped up today. and all the comments, which are obviously vetted by the campaign, take that tactic of saying, these women are no good, they're husbandless, they're petty, they're money grubbing, et cetera, et cetera. so in that way, it's very disheartening. but as ari points out, he was never serious about running for president. over the past month, he's been to iowa twice. and he's someone who obviously loves the limelight and loves attention. >> so, toure, i want you to help get us out of the gutter on the republican side. if it is now a mitt romney/newt gingrich sort of horse race as we gallop into this last month, you know, mitt seems to be trying to take shots now at gingrich in a deferent way, calling him a lobbyist, an insider. you know, we don't need that kind of thing, that's not going to be the answer to our problems. where do you see this slug fest evolving in the next couple of weeks? >> do i have to respond as a black person, or can i just

respond as a person? >> we don't want to typecast you, toure. >> as a black man. >> i believe you have to be like drake and respond as a black jewish person. >> toure, there's so many ways to be black. >> i want to speak who that ari said about the net gain for cain being on the stage, that perhaps he won't drop out. it's kind of like the media are burdenses flying around saying he'll drop out. but maybe he won't drop out. as everyone said, he's not actually running for president. so why would he drop out? as long as he stays on the stage, the visibility grows, the name brand grows more and more. he hasn't been a real serious candidate perhaps ever, and the news cycle of him potentially being, say, at the top of the race, even, broke downward several weeks ago when he found thoughts twirling around up in his brain. so this has not been a serious campaign, anyway. so even if he does drop out,

we've already passed his new cycle anyway. but i don't see -- if i'm advising him, why are we dropping out now? we were never running for president. >> well, i would never -- >> what we're going to see, guys, is i think there'll be a new barometer of, does the shame factor, at some point -- because maybe there'll be new revelations, at some point outweigh the brand building that he's trying to do. i want to us move on. in california, where i live, incredible news today, where this is all with the occupy college movement that started at uc davis, the pepper spray stuff we all know about. but the university of california administration just voted big pay increases for a handful of the saime these inible string of tuition hikes, in the last few years, heading up in the next few years. and one of the things people don't understand, ari, is that no not only is it the budget cuts that the state is facing, that have put all this budget pressure on low-income and middle income students that are

racking up all this student debt, in a way that's killing the american dream for them, but it's also these bloated administrations. we've got a washington monthly headline from the last month about administrators ate my tuition. a big story that they had. help people understand, ari, what the stakes are here? >> i think the stakes are huge. i think this is not going to make up for the budget and the critics are not saying that it would. but what we are seeing in a public context is similar to what we saw in a private sector context. which is that while everyone else is being asked to tighten their belts, and a lot of people are being asked to forego pension benefits that they thought they were going to get, a lot of the management of both public and private institutions throughout the financial crisis and throughout the public budgetary crisis we've seen at the state and federal level are not tightening their belts the same way. so, obviously, you don't need a lot of heavy analysis here. this is what people are talking about, upoccupy wall street. this is what people talk about when they have the notion that institutions don't deserve the same respect and stature in this

country as they may have at other points in history, because there's a real crisis of institutional authority. so the only surprising part, briefly, is that they thought they could get away with it, to me. >> krystal, i must be very old fashioned, but i thought leadership meant that in a time of crisis, or a time when everyone is being asked to tighten their belts, that starts a to the the top. and leaders say, we're not going to worry about raising the salary another 20% for key administrators because we're worried about losing them. there would be some institutional loyalty that says, we're asking all these kids to take tremendous hilts, we're going to take one too. >> it's sad that that does seem to be an old-fashioned thought at this moment. because this is not something that we're just seeing in the public sector. this is a dynamic that's played out across the country in the public and the private sector, where those in power look after people who are like them, the others that are in their circle, that they consider in their pier group. and that's why we see top level

compensation continuing to rise, not just the 1%, the 0.1% doing better and better and better. and those who have no voice for a variety of reasons including the fact that our political system is essentially bought, which t"the dylan ratigan show" has been doing an amazing job of pointing that fact out. but the people have no voice. the lower income, middle class folks are being continually hurt by this dynamic. >> toure, as a human being and a former student yourself, do you have a -- it's pile on, go ahead. >> it's just extraordinarily tone deaf. and it just leads to the idea that we don't have -- we're not going to be having faith in our institutions in these colleges that they're actually doing the right thing by us with our kids' money. >> all right. the panel's going to stay. and we've actually got a voice coming that's going to be a kind of contrarian voice against this institutional lack of integrity. up next, trader to his class. a super-rich entrepreneur says lower taxes on him won't create jobs. but a little robin hood tax

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despite the president's best efforts, senate republicans defeated his plan for extending and expanding the payroll tax cut next year. an unfamiliar position for a party that usually favors less taxes. their argument, in this case, is that expanding tax cuts for most americans and paying for it by taxing the rich is simply unacceptable. but as think progress sums this one up, they're essentially raising taxes on 160 million middle class americans to protect the income of 350,000 millionaires. and in another bizarre political twist, more than two dozen republicans also voted to kill a plan backed by gop leader mitch mcconnell, that would have extended but not expanded the current tax break, and paid for it by slashing the federal

payroll. so once again, we find ourselves at an impasse with the clock running out. sound familiar? and once again, both sides are digging in. listen to this. >> we're going to keep pushing congress to make this happen. now's not the time to slam the breaks on the recovery. otherwise, congress may not be leaving. and we can all spend christmas here together. >> we don't believe in higher taxes and we don't believe in more spending. but we do want to work with this president in terms of finding common ground and seeing how we can create jobs. >> our specialist today claims raising taxes on the rich is what we need to do to create jobs. and that the real job creators aren't big business or big wigs, it's the middle class. nick hanover is a venture capitalist and the cofounder of second avenue partners. he's also co-author of the new book, "the garns dens of democracy," in stores now. welcome, nick.

thank you for taking the time. >> matt, thank you so much for having me. >> you're going to be the newer, hipper, younger version of the enlightened capitalist, the role warren buffett has played for so long. a lot of people were angered by the provocative bloomberg op-ed you had out yesterday that basically said a little redistribution could help create jobs right now. and you're not a marxist making this case, you're a successful entrepreneur. explain your thinking, sir. >> you know how people see the world is based on the assumptions they make about how it works. and most americans, certainly the republican party is in the grip of some very 19th century ideas about how the economy works. and they have this very sort of linear, mechanistic metaphor in their heads, that if you just poor money into reach people like me, that jobs will squirt out the other side. and clearly that's not happening. if you look at what's happened to tax rates on the very rich and the amount of wealth that

people at the very top have accumulated, and the obvious jobs problem we have in this country. but if you understand the economy as it is, as a complex adaptive system, as literally an ecosystem, then what becomes transparently obvious is that it's a system of interconnected feedback loops and jobs are literally a consequence of the feedback loop between customers and businesses. so in that sense, middle class consumers are the engine of job creation and economy. look, matt, businesses hire when they have more customers and they fire when they have less customers. that's by a full order of magnitude the only thing that matters to businesses. what we've done in this country over the last 30 years is we have systemically impoverished the middle class to benefit a tiny minority of citizens, like me. and this is just -- this is --

it's crazy. and the only mathematically -- >> let me, nick, as i -- because you're singing to the choir in a way, i think what you're saying is so important. i want to make sure that some of our gurus on the panel get to ask questions that will help frame what you're saying. i know ari melber, jump in. >> i'm here to frame. also, the space needle looks great behind you. i grew up in seattle, so i always like to see that. >> thank you. >> are you basically saying, then, that this is all about spending? a counterpoint to you would be, well, what if the people at the higher income brackets were required to spend all of any tax benefit or temporary tax relief that they got? would that change your analysis? >> it's just not -- it's just not feasible. look, i literally make about 1,000 times as much as the average american, all right? and the problem is that my wife and i, we only have three cars. i buy a couple of three pairs of jeans a year -- >> have you thought about getting a fourth car?

i'm here to frame this discussion. >> i could. but, you know, the problem is is that we accumulate wealth and sock it away into hedge funds in new york and other things, you know, at 100 or a thousand times the rate at which we spend. as i pointed out in the article, for people like me, the one truly expensive thing that we spend money on is private air travel, which doesn't benefit the economy. you have this very insidious problem in this country, where you have pushed all the income to the very tippy-top. the top 1% now gets about 24, 25% of total income. but the top 1/10 of 1% gets half of that. and that money is literally clotted -- it's like a clot in the economic circulatory system. and this is the fundamental problem. >> let's get krystal in. krystal's got a question. >> hi, nick. have you thought about a thousand cars? no, just kidding. >> no. no. >> well, you mentioned in your

lead up that you felt the middle class, which i agree with, has been systemically undermined. i agree with that, so i was wondering if you could talk about the policies that have been detrimental. and with a forward policy, what you think we could do to start to reverse this increasing trend of income inequality? >> that's a very long discussion, but there's simply no doubt that middle class americans have been trapped with stagnant wages and escalating prices for 30 years. part of the problem, of course, is income inequality. when people like me have a situation in which price is no object, we push prices for everyone else up and force people down the scale in the middle class to borrow, to keep up. so this is a, you know, certainly a significant part of the problem. >> toure -- >> but fundamentally, we have the situation where we have pushed income to the top, right,

in all sorts of ways, both economic and cultural, and we have decreased the rate at which we tax the top by 60, 70% over the last 30, 40 years. and the collision of these two things is devastating to the middle class. this country simply cannot afford to invest in the things that support the middle class, to enable them to continue to be robust participants in our consumer-based economy, in this feedback loop. and the way to get it started again is for people like me to begin to pay their fair share again and support our customers. the thing that drives me craziest about these policies is that these policies are destroying our customer base. >> would you -- nick, i want to get toure in. we really need more people talking like this. toure, i know, has got a question. >> yeah? >> so are you supporting massive tax cuts for the middle class? and i would like to hear you

unpack a little bit what you mean by middle class. are you saying that the upper middle class is really the -- or the lower middle class? >> the median family in this country makes like $32,000 a year. the median wage is $26,000, right? how do you afford health care and housing on $26,000 a year? i mean, it's almost impossible to conceive. and there are a million ways -- look, i'm not -- i'm not a policy person, but if the people at the top, in the top 1%, and of corporations, were paying taxes at historic rates, you could be recycling 300, $400 billion back into the economy in ways that would benefit the broad middle. look, the country -- let me give you a great example. the country currently spends about $400 billion a year on various kinds of tax breaks to help people create wealth. the country used to be in the business of helping people

become wealthy. well, today, the bottom 60% of americans share just 4% of that benefit. the top 1% get something like half the benefit. so we don't -- we don't help people become wealthy in this country today. we pay the wealthy for being wealthy today. it's absolutely insane and upside down. >> nick, it's a fantastic message. i'm so glad you're speaking out on this. i hope that this message is going to go viral, like elizabeth warren's and like the warren buffett stuff, and you're going to keep at this. because we need more high net worth patriots like you to sound this call. thanks for writing this and thanks for coming in today. thanks, as always, to our mega panel. that's ari and krystal, and toure will be around for the rant. you won't want to miss that. straight ahead, blown away. the worst santa ana winds in year tear through southern california. we've got an update on the damage and what's in store for the weekend.

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since i'm here live from los angeles, and you've probably heard about the weather we were hit with over the last 24 hours, let's switch gears for a moment, from the hot air and bluster of washington, to actual wind storms blowing across the western united states. some call them the santa anas. some call them the devil winds. they're gusts that blew up to 100 miles per hour from california to utah to colorado. highways were shut down, billboards were toppled, and power was even knocked out to l.a.x. the winds are in season here from october to march. and experts say they're especially strong this year because of the huge pressure difference between where they start, the great basin desert in nevada and utah, and where they end up, the l.a. basin in california. these hot, dry bursts of air not only pose threats of wind damage, but they're also catalysts for quick-spreading wildfires, real danger there. as of right now, reports say that the damage is in the millions and cleanup will take weeks, and it's supposed to keep on gusting throughout the

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jersey governor jon corzine has now been subpoenaed to testify before a congressional panel about his role in the debacle. that scandal just the latest example of banks and businesses seemingly getting ahead at the expense of doing what's right. and it's why our next guest says the real crisis in america today is that we've stopped being wise. >> the good news is that you don't need to be brilliant to be wise. the bad news is that without wisdom, brilliance isn't enough. it's as likely to get you into trouble -- and other people, into trouble, as anything else. >> that was best-selling author barry schwartz at his much-discussed conference talk argues it is possible to do well and good at the same time. he's expanded on the notion in his book "practical wisdom." welcome, barry. >> thank you, great to be with you, matt.

>> so what is practical wisdom and why does it matter? >> well, we derive -- my co-author ken sharp and i derive the term from aristotle. and practical wisdom is the ability to figure out what the right thing to do is in a particular situation. and in contrast to plato, who thought of wisdom as abstract, for aristotle, it was very practical. what does this student in my third grade class need? what does this patient who's just come to my office need? how do i talk to my 7-year-old kid? how do i talk to my 10-year-old kid? very practical. and the reason why you need to be wise is that the right thing to do is very much context and person specific. so you need to use your judgment. >> now, one of the things that's interesting is the distinction you make between the kind of hyperintelligence that gets celebrated so often in our culture and the ability to do the right thing, which as you

say, doesn't depend on being smart. it seems like so many of the smartest people in the room, you know, the elites in banking and government, the same thing's happening in europe now. they may have been the smartest people in the room, but they clearly have failed to exercise any kind of stewardship, which i'm guessing you would say includes that kind of practical wisdom. what would your message be for the elites that are letting us down right now? >> well, i'm not sure there's much hope for the elites that are letti inting us down. it may be what we want is to nurture and create a new generation of elites. but for aristotle, and we make this point in our book, wisdom has two components. one is the skill to figure out what the situation calls for. and the other one, very important, is the will, the desire, the motivation to do the right thing. and the problem with the smartest people in the room is that they did not have the will to do the right thing. they had the will to do the right thing. they had the will to do somethings that would enrich

them without much regard for the effects of their strategies on hundreds of thousands or even millions of people. so intelligence unleashed to manipulate and take advantage of our other people is a menace. and that's what we saw. >> now, you know, i know part of your work, you're suggesting, to move in the right direction, we need to celebrate moral heroes in various workplaces or contexts. one thing that occurred to me this week that really captured that was, i don't know if you followed judge rakov's decision -- >> i do. >> -- between the s.e.c. and citigroup. you read that opinion, this is where he essentially said, i'm not accepting a settlement that the elites in government and business have cooked up, that leaves the facts totally murky, in a sort of in the self-interest of getting headlines for government and getting a slap on the wrist for citigroup, but doesn't expose to the light of day the kind of corruption transactions that went on so we can try to avoid them. that seems to me an example of a smart guy exercising that kind of practical wisdom.

am i right? >> you're absolutely right. and i'm glad you brought it up, since he graduated from swar swarthmore college, which is where we teach. but this decision is merely one in a long string of decisions that he's made that reflects real courage, real judgment, and really a commitment to serve justice rather than expediency, or do what the last judge did. i hope other judges follow his lead. >> now, i'm curious what you think about the role of the bully pulpit at the presidential level for this. barack obama has spoken a bit in the spirit you've talked about. i've got a quick piece of sound i want you to listen to and get a reaction. >> everybody from ceos to shareholders to investors are going to have to be asking themselves, not only is this

profitable, not only whether this will boost my bonus, but is it right? >> now, a good message, but maybe that gets lost in the sea of words that get uttered by our president. is there a role for the president to tackle this and lead in the culture? >> there is. in fact, when i gave that ted talk that you mentioned, i quoted that very speech. they have to ask, not just is it profitable, but is it right? i think the president, in principle, has an enormous opportunity to engage in the kind of moral exhortation to try to get citizens to ask themselv themselveses that question in whatever domain they're operating in. the problem is that there's a sea of massive, massive crisis that president obama has faced, and i'm afraid it's dealing with those crisis and a resistant congress that's basically

crowded out this, what i think, inspirational moral message that he started with. >> barry schwartz, the book is terrific. it's called "practical wisdom: the right way to do the right thing." it's a little sad, i have to say, barry, that we're in a moment in our culture where we need this message, but it's where we are. i'm glad you got in a plug for swarthmore. good for you. yesterday gingrich declared he will be the nominee. today romney comes out swinging. is newt getting under mitt's skin? but first, what's got toure fired up today? the friday edition of the daily rant is just ahead. [ male announcer ] if you think tylenol is the pain reliever orthopedic doctors recommend most for arthritis pain, think again. and take aleve. it's the one doctors recommend most for arthritis pain... two pills can last all day. ♪ hut! go! here it comes!

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the nba is back, and so is toure is with a daily rant on the biggest loser of the nba lockout. take it away. >> the nba lockout is over, but the lingering pain and bad feelings won't soon subside. many fans say the league has lost their heart, but i suspect that as soon as the super bowl ends, they're be back to loving basketball like before. sure, some are going to always look at the players as greedy or the owners as oppressive, but they're still going to watch the games with the same old excitement. but for one man, nothing will ever be quite the same. because during the lockout, he unveiled such an ugly, selfish side. michael jordan was a mythic figure as a player. not just the greatest of all-time, but the symbol of on-court character, mental toughness, and being the consummate winner. sure, back then, there were already signs of a problematic selfishness. most notably, when he refused to

help a black senate candidate in north carolina who was battling jesse helms. why not? jordan said because republicans buy sneakers too. wow. many previous black sports icons use their platforms to flex political capital. remember, muhammad ali, jackie robinson, jim brown? well, mj refused to be one of them in the name of capitalism. all right. but his capitalist ambitions sunk to a selfish new low when jordan demanded players take less money. this seems to me a bit like class-fueled stockholm syndrome. it was a shocking slap in the face to the players, some of whom said they could no longer idolize jordan in the same way. and i don't blame them. he seems to have lost the nuanced view that should come from knowing both sides, knowing how short most nba careers are and where most nba players come from.

it seems a class betrayal. this is not the end to the movie that any of us ever envisioned. the greatest and most inspiring player ever goes on to sit in the owner's box and curmudgeonly demand that players are paid less. imagine mighty kc who never struck out becomes uncle scrooge who never found a heart. a feel-good story for the 1%. where have you gone, joe dimaggio, indeed? >> toure, brilliant analysis and insight, but say more. does this mean that michael jordan and the other owners really want an end? >> i don't know if we can really say that. they won a tremendous number of concessions. it seems that the players gave in more than the owners gave in, but the owners ultimately wanted to control the game again and not have the situation where like a carmelo anthonys and others are going to hold their players up and say, you're going to trade me where i want you too.

that's what the owners wanted. we're still there. we already have chris paul and dwight howard and other players saying, hey, duran williams out of new jersey, i'm not going to sign an extension and i'm going to tell you where i want to go and you make it work. maybe they'll get to go where they want to go, but star players have an out-sized amount of power to determine where they're going to go and what the teams are going to do with them and for them in the future. so the owners did not win in terms of, i'm going to -- we're going to have control over where the players go. which is ultimately what they really wanted. >> so, just nanoseconds left, but this really is a kind of michael jordan tarnishing his legacy with a classic pull up the ladder after you've already gone up saga. just a second? true? >> absolutely. we'll always remember him as an amazing basketball player and the heart he showed on the court is extraordinary and inspiring and all that stuff, but the post-career, the post-playing career is -- ugh, it's getting kind of icky. >>