in the stories we covered go to you tube dot com slash our team erica check out our web site r t dot com slash usa have a good night. i know c.n.n. the m.s.m. b c news have taken some slightly but if i desired their commitment to cover all sides of the story just in case one of them happens to be accurate. that was funny but it's close and for the truth to them i think. it's because one whole attention and the mainstream media works side by side the joke is actually on here. and our teenagers we have a different brain. because the news of the world just is not this funny i'm not laughing dammit i'm not how.

you guys talk to the jokes well handled in the sense that i've got to. there i marinate it this is boom bust and these are the stories we're tracking for you today. first up we have anthony randolph though of the reason foundation live in studio today and we're not backing down with our line of questioning you know won't want to miss a moment of it is going to be awesome what's up that is taking an extra hard look at non-banking institutions they believe to be irreplaceable and systemic for the world's economic help this puts warren buffett now in the fed's crosshairs well say all about it and in today's big deal ed harris and i discussed the goings on at davos this week and we asked all the pope and asking does the financial glamour

fest even really not a lot of fun about it all coming up and it all starts right now. first up you're wrong president hassan rouhani takes center stage at davos is the world economic forum on thursday he's attempting to stir up investment for his country's economy as iran attempts to come back from the diplomatic oblivion if you will now rouhani views jobs as an important opportunity for iran he says quote both for economic reasons as well as explaining our political now the focus of the summit shifts to the middle east on thursday with israeli prime minister benjamin

netanyahu scheduled to address delegates just hours after rouhani is address now a meeting between the pair has been played down by officials but stranger things have happened in the border wars of da this. where world leaders mingle freely with celebrities and c.e.o.'s and inform atmosphere than that of the usual suspects. now elsewhere the city of baltimore maryland has been inadvertently charging drivers more than two point eight million dollars in fines on account of faulty cameras new not good now according to data from a secret audit obtained by the baltimore sun the city issued roughly seven hundred thousand speed camera tickets at forty dollars apiece in two thousand and twelve now if ten percent were wrong seventy thousand people were wrongly charged a total of two point eight million dollars the audit identified thirteen cameras with double digit error rates and consulting firm u r us corporation evaluated the camera system run by

a xerox state and local solutions in two thousand and twelve and found an error rate of forty times higher than what city officials had claimed now a spokesman for xerox said the company would have no comment on the audit. and finally warren buffett's berkshire hathaway is so large that the federal reserve is now studying the organization to determine if it's just up to require fed supervision the u.s. financial stability oversight council led by treasury secretary jacob lew is evaluating which non-banking financial institutions could threaten economic stability if they were to fail and with berkshire's reinsurance operation being the fourth largest in the world it definitely qualifies for the extra amount of scrutiny now the fed can impose stricter capital leverage and liquidity requirements and demand stress testing for prices scenarios if the company proves important enough since the council first met back in october of two thousand and ten they've designated three systemically important non-banking financial firms the

first one is new york based in new jersey based prudential financial and new york based met life all are in the final stages of review. well there you have it as always. we'll be tracking these stories and keeping you posted on all the latest. as the world's business and political leaders meet in davos one of the main themes is income inequality now the pope has implore the leaders to take this issue very very seriously now back here in the u.s. unemployment has been on the decline but many are afraid the american dream is now out of reach for most americans anthony randolph the director of economic research for the reason foundation is here to talk about whether income inequality is

a problem and what policymakers can do about it anthony thank you so much for being here finally in the flesh we've done this in new york d.c. a couple times but i want to start off by asking you know under the obama administration we've seen huge huge gains for corporate profits and stock prices tremendous now the fed has been printing money to help the economy which we know and printing that's argue argue about it when there's about eight years ago leave it at that yet many company execs there are still bashing the president as a socialist trick question is the president a president is socialist no more than probably anybody else in congress and there's a lot of stuff in the us that's pretty socialist having any kind of welfare system any kind of full security is technically socialist but in the way that word is thrown around trying to demonize the president absolutely now many who would describe themselves as libertarian they seem to buy into the concept you know that the president is all about redistribution of wealth socialism is people think of it and yet the gap between the rich and the poor it's grown here i have the numbers

here ninety five percent of income games from two thousand and two thousand and twelve went to the top one percent there you go now does this suggest rejig redistribution upwards not. downwards crony capitalism with a lot of the kind of capitalism comes from quantitative easing which has as bernanke has him self admitted pumped up the stock market driven up equities the top ten percent of america is really what owns wealth in the stock market so it's just going to drive up a lot of wealth for the top one percent in general so under the obama administration has been the entire quantitative easing program started in two thousand and nine so it makes perfect sense that that's where a lot of wealth is going to go up because it's kind of redistributing the price is that when you say you know redistributing wealth by increasing asset prices i mean their incomes if you're talking about income inequality where money is going from the poor to the rich as opposed to just the rich gaining faster than the poor those are two different kinds of income inequality we've got a lot more people on welfare under the obama administration and

a lot more wealthy people out of the bubble as a result of quantitative easing whether or not that money is being redistributed from the poor pushing them on welfare or not is that i doubt that's really what's happening it's a lot more the fed's printing money we've got an asset bubble right now the stock market is going to blow up at some point probably not in the next couple months well the plans of how the tapering works but in terms of wealth for the upper class it's grown not necessarily distributed from the poor now what do you make of talks about raising the minimum wage i think it makes perfect sense in the united states we talk about. fairness in gala terry in terms of a lot and we in if you look at the entire history of america it's all about having an equal chance and there's this sense in america that we should we should have more wealth and people don't have it so it makes perfect sense of people are fighting for minimum wage it also makes perfect sense of people fight against it because we also have this pull yourself up by your bootstraps mentality in the

united states that's one conflict is that there's a lot of people think about fairness getting myself in more karmic terms which is it doesn't matter at the end of the day if everybody's equal as long as you have an equal starting foot in actually i don't think that there should be any minimum wage at that point but in a time. when you do see a lot of people getting richer because of growth and say the stock market it makes a lot of sense that everybody's looking around saying well if the government's helping out the wealthy why can't they help us and bump up the minimum wage now wouldn't that increase unemployment. it depends it would almost certainly increase under employment so if you raise the minimum wage people who have jobs they're probably going to keep their jobs is going to be good for them and that doesn't necessarily mean there are certain instances like in new jersey where they've raised a minimum wage of people who got fired but that doesn't mean that more people get hired and what happens is you have more part time work so the biggest thing that's happened since the bubble of two thousand and eight is more part time jobs than full time jobs so it's you wouldn't necessarily see it all depends on how much the

minimum wage goes up but under the current policy proposals that are out there raising minimum wage i doubt that you would see dramatic unemployment increase you would see underemployment years ok now i want to get back to this part time unemployment but first i want to ask you do you think raising the minimum wage would actually have a measurable impact on income inequality measurable. well it might have some sort of marginal effect for people who have jobs but not really and the number of people that have minimum wage jobs in america roughly three percent most of those are not heads of households so when you see these protests fast food workers and they're talking about we need these jobs to survive there are a handful of workers who are heads of households who have minimum wage jobs often times what they need are more hours not necessarily higher wages although they would love higher wages and you could bump up wages to fifteen dollars an hour you wouldn't see a lot more of those jobs added to the economy you wouldn't see wealth dramatically increased amongst the poor because you've got a small number of people who have the jobs in the first place and a lot of them are teenagers and a lot of them are people who are not the sole earner for their for their household

if you want more equality you could just end quantitative easing tomorrow you would have a lot of the wealth that has been accumulating the stock market get blown away by a bubble crash and you would have less income in. quality i'm not sure if that's really the goal of trying to and income inequality now isn't on the minimum wage at the poverty level now for a forty hour work week is that correct it depends on exactly where you are in the country i mean in new york city it's going to be obviously different than in iowa or texas right now on the subject of lack of wage. increase in the use of part time employment and that's a is that a big part of the lack of wage growth in the u.s. today i mean it's you don't have people that are building the salaried jobs for a long term period of time as much as you did before the bubble if you're hiring a lot of part time labor and that means that employers are not sure really what things are going to look like in the future so they don't want to invest in the

full time labor as much as part time labor it also means that they're worried about mobility of the labor force one reason why i like fast food restaurants have a lot of different people doing ten to fifteen hour shifts because people tend to leave those jobs a lot and if you depend on most of your workforce having thirty five hour work weeks and then a lot of them leave and you don't have people trained. there and the other top down so you have what you do is you hire a lot of people because you're unsure about the future you give them all ten to fifteen hours so they all know enough that they're a place a pool and that they're not costing a lot ok now do you believe that increasing the power of major corporations is a major factor as to why we're seeing this. total total disconnect between the rich and the poor and a benefit to the rich i think that the dot frank act was a complete failure in trying to address what you call corporate power because you're just mention the idea that berkshire hathaway might be listed as systemically important situation that means that berkshire hathaway would be considered too big to fail and we now have firms that are explicitly listed as too

big to fail. i would rather see things like the f.b.i. see it go away and have firms actually have to pay but if you're a positive assurance bank that you have to actually have to pay the room. real costs of insuring deposits to the point where it's actually an affordable and you have these large banks start to disintegrate and have to break them off into smaller bits so you have smaller companies as opposed to telling a bunch of really big firms by the way we're going to label you as too big to fail which means you can to stay as large as you can you can take the money that we're printing you don't have to invest it back in the economy you can continue to just throw it into stocks that are generating a lot for everybody else and we continue to have this sort of muddle through stagnating economy now this might seem like a simplistic question but don't we have laws against monopolies the sherman act except no but what monopolies really are the i mean monopoly is about a single institution that's dominating and even if there is a monopoly those laws typically are only going to get put in place if they start to

hurt people with prices start to tire people prices and oil markets right now we see prices go up when there's oil shocks because you've got actual competition within the oil market but there's a lot of really big oil companies that dominate that market you don't have a monopoly you actually do have competition but amongst a bunch of really big firms with less innovation than if you had a lot smaller firms they always get around it and you stick with us we have to take a quick break but stick around because more with and new round. then add harrison i talk about the goings on in switzerland this week over the davos economic summit as we head to a quick break though here's a look at some of today's closing numbers that the bell stick around.

this is the media leave us so we leave them to. the same motions your. party is it. seems that no one is asking with again that you deserve answers from. our. live. live. live

. live. in effect that means you can jump in anytime you want. we're back in studio now with anthony randolph of the reason foundation director of economic research there with more on income inequality and the american dream now anthony i want to start off with in your speech when leaving the white house in one thousand nine hundred sixty one. president eisenhower and i former military general he gave a warning about the military industrial complex being too big have we heeded his warning absolutely not can you expand upon what we have a larger military relative to the size of world now as we did then the idea that

conservatives will be able to talk about wanting to be have responsible spending and yet also freak out any time we want to cut the budget of a military that is the size of the rest of the world. is somewhat ridiculous and when you have things like the sequester where people are the government shutting down even more people in washington d.c. where we're at right now freak out because people are losing their jobs and these people in particular contractors aren't getting paid while the government shut down and contractors lose their job and that hurts local economies because washington d.c. area it's become completely saturated with the military industrial complex those are the contractors that are losing their jobs some of them are my friends that are listening the show right now they are furious. but the idea that we in any way of heeded that warning is ridiculous now what about the idea of health care we're taking a turn here the health. isn't that what obamacare is about obamacare obamacare the

affordable care act is about building up the health care and complex it's not a health care law it's a health insurance law. it's a law written largely by the insurance companies to guarantee them selves customers it didn't really do anything to adjust health care costs in the united states that's one of the things that we were promised coming into the law is that it would start to turn the cost of health care down but it hasn't it's helped some people who didn't otherwise have a chance get insurance we know all the troubles with people trying to get on board but the fact of matter is some people have been able to get on but it hasn't curbed health care costs and in continuing to propagate the current. industry as it is insurance industry as it is i think is problematic because that's one of the reasons why costs are what they are it's requiring us to have insurance in the first place do you think this is obama's intention you know to increase the health care you know there's no payoff there nothing. i think i had my druthers i would shut down the affordable care act tomorrow i think that it's

a terrible law and i'm completely against it but i don't think that obama's proposals for it were the ferias i think this is a different philosophical view of how the world ought to be normative flea then i have and about half of america has it's not about undermining markets it's not about trying to destroy america but it's his philosophy is undermining markets and it is causing problems for america just not intentionally now like you said health care it's a defining economic issue here in the u.s. if we didn't continue with obamacare what alternative would there be there are market proposals out there but they're really hard to transfer to i mean there's ways in which you could actually tweak the current market structure as it has been set up with care act and one of my colleagues you could all mean has written a couple columns about this about the way that you could take the markets places and more or less privatized what was just created by the government. there really are a number of ways in which you could just get rid of the whole edifice but it would

require thinking differently about health care costs it would it would go back to a model where you don't need insurance for basic health care things where you only need insurance for critical care so cancer particular transfer from what we have to now to that has problems it would it would create costs and everybody would have to be on board with the hiccups going that way. as an in-state we can definitely get there how we get there i think there's a lot of people who are my on my side that honestly completely honest about the problems just psychologically getting america to that place now i know that you think policies regarding well they should be targeted at increasing economic opportunity so that's an increase in economic opportunity but what specifically can the government do to increase those opportunities to get so if we want to get stop talking about the federal government has nothing is going to happen there we can talk about state and local governments and there's small things like what things are called occupational licensing which are really sexy to talk about but if you

want to be a barber if you want to be. a designer there's about a thousand different occupations that you have to get licensed for that create costs and limit the actual economic opportunity like on the state and local level there are things that local governments don't even have to wait for the government on if we are going to talk about national government i think that immigration reform isn't just a big deal for the parties and politics it's also a big deal for the economy the governor of michigan today asked the federal government to set aside fifty thousand visas for workers who want to come work in detroit as a way of getting economic growth going in detroit and what he's acknowledging there is that having people come to the united states with entrepreneurial ideas or just to lower the actual cost of labor to help businesses would be good for economic growth and it would create more economic opportunity for us more people think an entrepreneurial way. is actually moving forward with some kind of subsidy to immigration reform a path to citizenship so that workers that are here in the united states now come

out of the darkness and can actually start to be robust contributors to the economy as it is those are ways that we can move forward on economic opportunity as opposed to trying to just and minimum wage and think about trying to tighten the gap between the rich and the poor just for its own sake it needs to be a more macro level and wasn't that what the us was built on initially you know none of us there along here. are all of everybody and everybody wants to shut the door when they're the last ones it is common refrain it's it's really true and it's really frustrating and i find myself constantly in debates of people particularly on the right who are about trying to protect the jobs of americans as they just define americans today but the reality is is that our country was built on people coming over who sometimes didn't even speak english and it took a long time to integrate into society but as a result had to fight really hard to survive and had these entrepreneurial instincts that sort of fed the lifeblood of the country right now i just want to ask this wealthy people they could have run all of their income through businesses

that set up today and this is if one reduces business taxes you know then you get to the question is the same way the private equity firms they use the carry tax to kind of they produce the cost of their businesses doesn't an end to business tax kind of opened up a huge opportunity for an arbitrage situation for the wealthy it certainly could and then business taxes is something that's a bipartisan idea amongst liberal and conservative economists will tell you that it is double taxation in the first place but it does create an opportunity for people to game the system which is why you probably and if you're going to business accidents and all income taxes and go to some kind of consumption tax you should take the current tax code as it is right now which is maintained by all the lobbyist groups who have their offices around the capitol building if you come in on the train like i did today and you take a cab past the capitol every single building that surrounds the u.s. capitol building is some kind of lobbying firm or lawyer firm for lobbying. and they want the tax code the way it is now so that they can poke holes in it and they

can if you get rid of all of that and you go straight to a consumption tax there's no way they can do and you can't do it anywhere out of time but thank you so much that was anthony randolph a director of economic research at the reason foundation a time now for today's big deal. edward harrison joins me now to talk to all of those so what better week to talk about it now the world economic forum is taking place in davos switzerland this week and it has nouriel roubini twitter feed filling up with as many selfies as it's true story if you check it out you'll see what i'm talking about but what exactly goes on at this annual gathering of world business leaders and the political muscle of a role with well it was originally conceived as a conference in broadmead business management concerns to quote all stakeholders

including workers customers and society at large however today davos has devolved into a see and be seen gathering of hollywood stars political hot shots and the corporate elite all congregated together for a few stylish days in the swiss alps and now pope francis has admonished these c.e.o.'s and assorted financial groupies attending this year's posh summit saying quote modern business activity for all its virtues often has led to widespread social exclusion indeed the majority of men and women of our time still continue to experience daily insecurity ed what does this say about the summit that pope francis is pretty much calling it out as a farce and that guy does not like the rich i think we can deduce that from everything else so there's all about equal opportunity and ultimately it's a mirror of our society it's really telling us what where our priorities are i mean the fact that you're saying that it's turning into a complete spectacle. well it's almost like the oscar you know that it seems. that

these are the values that we have and. those are the kinds of things that are discussed i think it's a great thing that the pope has sort of energy acted himself and said wait a minute you know we actually you know you gave that quote about the ninety five percent of the gains going to the top one percent i think that's exactly what we have to be concerned about right and he's very concerned about it for sure. speaking of hollywood for the next year now the theme of this year's world economic forum is quote reshaping the world was that even meet there is what is. a theme i don't know make something you know that grandiose and you know what sort of action of things can you actually take away from those i mean it's not like the g seven or something like that where you actually get political leaders coming together and potentially making policy decisions it's really just a you know let's talk about things in general and let's come up with some grand sort of vision but at least the center does have a nice you know yeah. but there's no i. mean you know.

but here's one of the interesting things i have a long quote that i don't think i'll have time to read but basically it's about apprenticeships there was a whole meeting yesterday you know kind of a gathering that talked about the idea of apprenticeships and how they should come back into vogue you know already here really quickly as business leaders and government struggle with ways to address high unemployment rates among young people after the financial crisis and facing an aging population of skilled workers business leaders said that they were hoping to change that through technical training and programs including apprenticeships and internships that are intended to give young people the skills they need to succeed in today's workforce and avoid a lost generation of workers this is from the new york times ed this seems like a great thing to talk about no definitely not at a forum with all these economic leaders and the germans actually are talking about exporting that model you know because that's a model that you have in germany they're talk about exporting it to the united states and they're already set. and that up with actual apprenticeships that they're doing in america and it's so i think that you know it's

a great that so as fun as it is to make fun of davos for what it's devolved into there are some good things that are coming out of yeah well. yes i guess and we really just wish were there so or does it. and as always thank you very are inside iraq that's all for now but you can see all segments featured in today's show on you tube at youtube dot com slash boom bust r t s a love hearing from you so please check out our facebook page at facebook dot com slash boom bust our take you also tweet us at aaron aide at edward and h. from all of us here of them but thanks for watching see an exxon by.

wealthy british style. time right let's go to. market why not. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune in to conjure reports on our. wonderful for the moment like a bank holiday i dislike you. a

pleasure to have you with us here on t.v. today i'm researcher. he quit congress in the midst of a scandal he recently made an unsuccessful bid to become new york city's mayor he's the always outspoken democrat anthony weiner and he joins we're going to talk about obama's second term the mounting allegations against new jersey governor chris christie and what he calls the white can do wing of the g.o.p. plus we'll hopefully get a few insights into picking up the pieces after a public fall anthony weiner is our special guest today on politics.