nelson mandela died thursday at the age of 95. the current president of south africa addressed the nation and said that the father of nation had departed. more than anybody else, nelson mandela was responsible for this deman telling the apartheid, the segregation of south african society based on

race and he transcended the violence and prejudice and united a scarred nation. this group joins me in saluteing this extraordinary lead near world history, may he rest in peace. issue one. biden in beijing. >> we, the united states are deeply concerned at the attempt to change the status quo. it has raised regional tensions and increases the risk of accidents and miscalculation. >> this is china's declaration last week which no aircraft, military or civilian can fly over an extensive area of the east china sea without chinese permission. they are asserting exclusive

troll of the identification zone akiz. and that is 1 million square miles of sea where all of the oil, natural gas and fishing resource it's contains. all aircraft must now identify and submit their flight plans to chin neat military authorities as they begin to enter the zone this move caught the international community by surprise. till last night, the week in question had been universally respected as japanese airspace. china proclaimed it and it covers a number of islands in dispute. and now high tensions with japan and china and they claim that the vast regions quote, core

interest unquote. china uses the term core interest to mean a nonnegotiatable status over taiwan and tibet and now they are prepared to go to war. and japan has refused to recognize china's claim and japan's allies, the united states, last week flew two b52 bombers from qualm through the chinese zone in beijing. this is prompting concerns that an aerial confrontation may result. vice president biden's submission twofold that the u.s. will stand firm against chin niece enroachment that the u.s. believe that's the material disputes in the region should be resolved

diplomatically, not by force. >> how dangerous is this thing? >> china took two steps forward and one step back. the united states does not recognize their defense zone. but we have told our own passenger jets to notify the chinese as you fly through it. this is a victory for china by the it's the first stoop a major confrontation. the entire east china sarks including the japanese islands, they claim that taiwan straight and tell the mornings to stay out and they claim the yellow see. and they are pushing against the united states in the western pacific. and the long-term strategy is to drive the united states beyond the first chain of islands. there's no military confrontation immediately. but they are trying to push the

americans back and you have a real problem coming down the road. >> he's known him for a number of years. and the 30 years that the price is president spent in the city chairing the foreign relations committee, much of that time served him well in meeting with the leaders of japan and china and china did back down and that is highly unusual that culture for them to have reacted that way. it is going to be a simmering tension. the chinese has gotten more brave. and as long as you can team the tensions at a reasonable level, you don't want to get into the position where i remember in 1983 when korean airline near strayed into russian airspace

and got shut down. so u.s. airliners are respect china's request and submitting flight plans. >> the u.s. airliners are presenting the flight plans, then china wins. china did step back slightly. but they have not renowned the claim over this territory. i think pat put it well. they went for two steps and came out of it one. >> civilian airliners. >> yes. >> they will have to go around and use more fuel? >> yes. it means that this is a recognition that this is chinese territory. that is exactly what we don't want. there are all kind of reasons

that we don't want china to extend their that reach into that part of the world. you remember the east asian leadership conference to which the president did not show up for the second year in a row and you have the chance to establish those kind of personal relationships. they don't exist between this administration and the chinese and that is one of the reason that we lost our opportunity to make our case clear and nobody respects that anybody is going to do anything about it. >> and china has a list of other territorial claims. >> they got the ones against the vietnam and malaysia. they don't have any particular claim against south korea. they have an island dispute with japan. this is one of the problems over there. all of the countries are

claiming the territories, sovereign control over them and they're getting more and more militant about it and and the chinese are the most militant. >> they have a problem there with north korea. >> this is not a new dispute. the dispute between the japanese and chinese goes back thousands of years. the islands are described as a pile of rock. >> but there is natural gas and that is what makes the rocks valuable. the japanese held the islands up to world war ii and taken over by the americans and readministered by the japanese. the chinese have not had operational sovereignty in the

history of modern china. >> they should have never put the germans under czech control. and when they tried to break away in 1938 to get back under german control that was the cause of the conference. >> and that started world war ii. >> they are worrisome. >> we do not want to see that unresolved territory to the chinese. they are a growing power and they're putting the pressure on everyone. >> i remember it helped it decide the 1960 election. the chin chinese communist.

and it was a big uproar. >> should obama convene a conference on this matter? >> why not? i don't know if it will help. what needs to be behind the conference is the credibility of the united states. >> should the united nations get a conference on it? >> somebody how is. i think the u.s. is asserting leadership and sending b52s there. the u.s. is keeping a lid on this. it comes back to iraq and afghanistan. these are the consequences. >> chinese claim these as sovereign territory. and they're not going to sit down with the united nations

and it decided there. one of the other is going to wined up in control over them. >> not anytime soon. >> when we come back, the president goes populist. zçzçtó

it's a threat to the

american dream, our way of life and what we stand for around the globe. eye child born in the top 20% has about a two and three chance at or near the tap. a child born in the bottom 20% has a less than one to 20 shot making it to the top. the child may never be able to escape that poverty because she lacks a decent education or health care. for a community that views her future as their own that should bother all of us. >> i warns about the the dangers of the country of a growing inequality and a record income gap. the president argued that decade's long shift in the economy has undermind all groups poor and middle class

that now face the same problems once attributed to inner city minority groups. one prescription is the height to the federal minimum wage now at 7.25 per hour. >> i'm going to keep pushing till we get a higher minimum wage for hard working american across the country. it will be good for the economy and our families. >> president made his call one day before thousands of fast food workers in 100 cities nationwide walked off the job on thursday in protest of low pay. these workers want a minimum wage hike to $15 per hower, higher than what the democrats want in the state at $10 an hour. president obama supports the

10.10 hike. congress has not raised the wage since 2009 on the legislation passed with george w. bush was president. >> is an increase in the minimum wage justify at a time when real wages for all income levels, except the top have been flat or falling, not rising? >> i think you just made the case, all wages were falling except for the top. >> president made the point when he graduated from high school in 1979, the economy was growing and everybody's incomes are rising. and the trends are different now. and you have a lot of people making minimum wage that have to really on government subsidies including food stamps and working 40 hours a week and not getting paid enough. i'm for what i call the henry

ford economic philosophy. he raised the salaries of all of his nuts. everybody had money to buy cars. so, yes, you do need to raise the minimum wage. >> they qualify for prehealth care and they get free cell phones and free cell phone service. and due to the expansion of food stamps, many get free food so where are you with your thinking? >> what is the point that you're making? >> they're relying on government subsidies. and they depend on the taxpayers to subsidize their worker. >> it's not such a depresses situation that you complain about. they're getting the additional

cost benefits. >> they are getting the initial cost benefits. but the real problem are not the problem are not the things being talking about. the economy is growing more slowly than it has in the last 50 years. the economy is growing slowly. and what happens under those circumstances nobody can afford to pay higher wages. you can say whatever else that you want about the wealthy and i don't disagree with that. but nar is a weak economy and it makes it impossible for us. and we're not competitive in a lot of manufacturing jobs. we've got to find a way to improve the education of these people because it's in the hi tech jobs where the money is being paid. >> the americans dropped down in reading and math. you get the small businesses

and you get the mcdonald's and all of these folks and you raise that minimum wage that high and some of those places will shut down and go out of business. there's a tradeoff. lost jobs for higher money yum wage. >> no they won't. wal-mart will pass the loss off on customers. >> this is a political gamble by the president and he's going for the inequality issue. and what is the republicans' answer? >> they have found no evidence of loss of job the result of raising the minimum wage. and you can compare areas that have higher minimum wage and next door is a lower one. and this republican is not going pass it. but it is going happen. >> what would happen if it

happened right away? >> a few jobs will be lost no question about that. >> they are going raise their prices. mcdonald's and wal-mart, the prices will go up. >> who shops at mcdonald's and wal-mart. you're robbing the poor to pay the rich. >> u.s. added 203,000 jobs in november and the unemployment rate fell to 7% from 7.3% the lowest rate in five years. what do the numbers tell new. >> i think we're getting a modest recovery in the economy. the real problem is we have it is modest and it simply inadequate to deal with the kind of problems that we were just talking about which is the inadequatesy of employment. we need a highly educated

population. we need infrastructure investments that are critically damaged in this country. we have not had the right policy to improve this economy, period. >> everybody is focusing on cut the deficit. >> we're putting the money in the wrong place. >> we're honoring the legacy of nelson mandela today and the apartheid movement that he led. and it was built over time and you'll see the same thing happen with minimum wage. ten states, including washington d.c. have higher wages. >> let the states test it. >> obama administration care rebound. the president defended the

affordable care racket act. he told the republicans if they have a better plan, let's hear it. >> if you don't like obamacare, and i know you don't, you should explain how exactly you would cut costs and cover more people and make insurance more secure. you to the morning people to tell us what you are for not just what you're against. >> is this a diversion tactic. >> yes, no question they would rather have the media focus on that the republicans don't have a plan. you had 29,000 people signed up which was more than all of us. a hundred thousand in november

so they're much happier about the way it is going. but they would love it the if the media pointed out that the republicans don't have a plan. >> this is a fire spiral crash. you hear tens of millions may be invalidated next year. >> >> fact is 5 million people have lost their health care. and you have not gotten to the issue that the doctors that are going refuse it. these people are not going forget that they lost their health care. in addition to that a lot of the health insurance rates have gone up. >> it's not a disaster. and a million people are going on the health care website a day. there's a huge demand out

there. it is going succeed. >> we'll be right back with other predictions.

ryan will cut a dale but it will be a battle. >> thanks to the quiet

leadership, they're pulling it off. and pat and moore will be able to get mental health coverage under the obamacare to calm their nerve. >> there will never be another full obamacare repeal vote. he was just a remarkable man and extraordinary leader, you met with him, you had this extraordinary sense that he was able to connect with everybody. these are people that we didn't know, including me. the only time i ever met him was for a brief conversation. >> i found him the same way. he wanted to know about the racial relations in the united states. >> we are out of time. bye-bye.

welcome to government contracting weekly, sponsored by aoc key solutions, inc. government contracting weekly is the only television program devoted exclusively to the competitive and dynamic world of government contracting, a world where coming in second place is not an option, but where principle-centered winning is the only approach. od morning and welcome to government contracting weekly. i'm your host, jim mccarthy. at a very early age, you probably heard the expression "it's a small world." well, if it was true when you were a child, it is nothing short of amazing how technology has shrunk our planet