american economy but it's the one that a lot of people and power and a lot of people with influence and money would like to see which is an economy of enormous wealth accumulation at the top combined with. high unemployment low wage service economy for the rest of us and yet you know it's fascinating sam because if you talk to some of these folks they're also historically savvy enough that if some of them are very frightened because they know that in economy like that is unstable and threaten social unrest and threatens political unrest so they're basically in the mindset of let's grab everything we can out of this what you describe as a new american economy and if it blows up hopefully it will have enough to take our money and perhaps our lives somewhere else this is all happening under you know we're five years into the presidency of barack obama he's slow to be idea of cutting social security raising the retirement age for medicare what does that do to the legacy of a party to this party that has a legacy of working on behalf of working people where do working people turn to now t

what was the great depression costing the american economy? d in part by the auto industry, the economy grew rapidly in the 1920s, generating more jobs, more income, and more free time. as long as the factories were humming, there was little concern about how well the nation was doing economically. but when the bottom dropped out in 1929, congress wanted to find out how bad things actually were. as lawmakers passed new deal programs to end the depression, senator robert lafollette wanted to measure the nation's economy. the greatest economic crisis in our history is a grave national emergency, which makes it imperative that we fight the depression on all fronts. congress must formulate a sound program to this end. lafollette's senate resolution directed the commerce department to estimate national income for the three previous years. dr. carol carson has studied the developments of national income accounts during the depression. you could look down your block and see that people were unemployed, but they didn't know what was happening nationwid

why did these two events affect inflation and unemployment in the american economy? u.s.iety was besieged by the twin assaults of inflation and unemployment in the 1970s. why couldn't the government achieve significant success against the ravages of stagflation? in the late 1990s, the economy was booming. unemployment was at a 30-year low and inflation was also at a 30-year low. did that mean inflation was dead? during the 1970s the american dream threatened to become the american nightmare. for the first time, we were faced with skyrocketing prices and exploding unemployment. stagflation -- why couldn't we beat it? with economic analyst richard gill we'll explore that question on this edition of "economics usa." i'm david schoumacher. schoumacher: since the passage of the employment act in 1946, it has been accepted policy for the government to fight unemployment by stimulating total demand. often, inflation resulted. when that happened the government shifted gears and clamped down on demand in order to decrease inflation. for five administrations the government more or

most markets across europe down this morning due to concerns about the american economy and the looming budget battle. >>> our futures indicate a higher opening this morning across the board for the dow. the nasdaq and the s&p 500, that follows some losses yesterday. oil prices falling amid concerns about the u.s. economy as well and falling demand. oil prices fell to more than 102 a barrel on the new york mercantile exchange yesterday. that's the lowest closing price since july 3. >>> time now 5:20.

the years after the civil war saw a continuing expansion of the american economy.lthough this prosperity was interrupted by periodic slumps few people seemed to worry. didn't the economy always bounce back? on the eve of world war i, economists had no theory to explain recurring downturns. why not? we asked some economic historians. the bubbles, the panics, the convulsions, revulsions, crises, gluts, they were noticed back in the 1810s, but the idea of a cycle-- good times and then bad times-- took a long time until it reached the level of the professionalists. they were just beginning to be professional economists. it took a longer time until people began thinking there was a mechanism that turned one into the other. i think the economy was just more resilient in the 19th century. a lot of thought didn't go to explaining a problem when they didn't see a problem. wages would adjust much more quickly in the 19th century than in the 20th century. interest rates would adjust, so no sense creating a tool for a problem that to them wasn't there. economists believe that

the american economy is very large.he american economy was 4%. >> the idea to bleed us economically, it's very naive about the size of the american economy. we're spending historically, even though we spend a lot on military, 4.58% of gdp. >> when he sends out an internet video, a message like this saying go ahead, do boston bombing marathon type bombings in order to undermine the united states, does he have the charisma, shall we say, the authority to go out and convince people you know, individuals to just go ahead and do this? >> i think he's been more effective and than i and others that the he would be. a number of al qaeda affiliates pledge add legion jans to him after bin laden died. >> what do you think the u.s. should be doing about this specific latest threat coming the day after the 12th anniversary of 9/11? >> really nothing much can be done. he's released about 30 tapes in the last three years. with very similar kinds of messaging. you know, it's a sign of their weakness they're trying to encourage lone wol

times finally understanding who the genuine threats are to the american economy their bankers their financial terrorists i wish they would step forward and propose some solutions like raise interest rates to a level that snuffed out financial terrorism the thing is the l.a. times asked you know since nine eleven twelve years ago america has galvanized behind you know this war on terror and they've spent trillions and trillions of dollars defending the nation against further attacks will they ask then why not what's the bigger threat the threat of being blown up by a terrorist or the threat of threat of being. you know having your wealth destroyed by a financial terrorist and they say sure some islamics nutcase might be able to set off a bomb on a boss or in a building but for effect as that may be the damage to our society is not nearly as great as the wrecking ball second hit us all when one of the greedy schemes of aggressive and on scrupulous financier's go yes islamic terrorists in down the world trade center in two thousand and one but the financial terrorists took down the world economy

whatsoever i'm glad to see the l a times finally understanding who is a genuine threat to the american economy their bankers their financial terrorists i wish they would step forward and propose some solutions like raise interest rates to a level that snuffed out financial terrorism the thing is the l.a. times asked you know since nine eleven twelve years ago america has galvanized behind you know is this. the war on terror and they've spent trillions and trillions of dollars defending the nation against further attacks will they ask then why not what's the bigger threat the threat of being blown up by a terrorist or the threat of threat of being you know having your wealth destroyed by a financial terrorist and they say sure some islamics nutcase might be able to set off a bomb on a boss or in a building but for effect as that may be the damage to our society is not nearly as great as the wrecking ball second hit us all when one of the greedy schemes of aggressive an unscrupulous financier is go wrong yes islamic terrorists took down the world trade center in two thousand and one but the fina

times finally understanding who the genuine threats are to the american economy their bankers their financial terrorists i wish they would step forward and propose some solutions like raise interest rates to a level that snuffed out financial terrorism the thing is the l.a. times asked you know since nine eleven twelve years ago america has galvanized behind you know this. the war on terror and i've spent trillions and trillions of dollars defending the nation against further attacks will they ask then why not what's the bigger threat the threat of being blown up by a terrorist or the threat of being you know having your wealth destroyed by a financial terrorist and they say sure some islamics nutcase might be able to set off a bomb in a fosse or in a building but for effect as that may be the damage to our society is not nearly as great as the wrecking ball second hit us all when one of the greedy schemes of aggressive and on scrupulous financier's go wrong yes islamic terrorists took down the world trade center in two thousand and one but the financial terrorists took down the world economy

and then we're told that we're going to mutilate the american economy and government unless they get win the battle that they lost on the floor of the house in 2010. that's an extreme bargaining position. it's not consistent with americans who want us to get along, compromise and keep things efficient. >> let me ask you, congressman, i think it's a good debate. we don't know how affordable care will work, nobody knows for sure. you're right about everything. let's talk about technique. do you think the president of the united states is rabid, he's going to runaway. what do you think we will think of him if he buckles to your demand to get rid of obamacare, what will you think of him as a person, as a man? >> it's not our demand. it is that we are representing our constituents and we're standing on principle -- >> what would you think if he responds by eliminating his number one achievement? >> i think the president has diminished himself already the way he's handled the situation in syria and russia. i cannot imagine a russian president bresh nef -- i think president obama has dimini

the long and short of it is this -- the american economy is not doing well enough to be left alone. after saying it was gaining strength, the head of the federal reserve decided to keep going with economic stimulus to try to encourage job and economic growth. both the dow and the nasdaq closed at record highs. mortgage rates are expected to drop, but the fed believes the american economy still needs a continuing infusion of $85 million a month. and there are growing concerns that a potential government shut down in washington will do even more damage. now across the border. >>> near ottawa today, a terrible crash between a passenger train and a double-decker bus. survivors on the bus said many passengers were screaming at the driver to stop just sends before the bus crashed through a crossing barrier into the train. part of the via system in canada. >>> it's an increasingly desperate situation in and around the resort city of acapulco. hit hard by tropical storm manuel which flooded the city and some resorts and the heir port. the death toll is now listed at least 80. most of the to

but to put something like the full faith and credit of the american economy on the line is just beyond pale. and americans show know. we're not asking about permission to spend future more, we're talking about permission to pay the bills we've already acquired. >> let me ask congressman cole about negotiation. everybody likes negotiation, we have a system of government that requires it in certain circumstances. there's a budget process in which a budget gets passed by the house, a budget gets passed by the senate, and they appoint people to a conference committee, where they hash it out. and the house refuses to appoint conferrees to that conference committee, saying they won't negotiate on the budget. why not negotiate through the normal channels rather than -- >> i think there's always a pre-negotiation that took place, and frankly, that didn't work out, which is how many times do you want to be able to bring different points up on the floor. it's a technicality. but i basically agree with you. i want to negotiate with the president. i demonstrated on fiscal cliff, on sandy, on viole

the american economy is not doing well enough to be left alone. after first saying the recovery was gaining strength, the head of the federal reserve, ben bernanke today decided to keep going with economic stimulus to try to encourage job and economic growth. both the dow and s&p closed at record highs as a result. good news for anybody with a 401(k). mortgage rates are expected to drop but the fed believes the american economy still need s a continuing infusion of $85 billion a month. there are growing concern that is a potential government shut-down in washington will h do more damage. >>> now across the boarder in canada near ottawa today, a terrible crash between a passenger train and a double-decker bus. it killed six people at the height of the morning rush. survivors on the bus said many passengers were screaming at the driver to stop just second s before the bus crashed through a crossing barrier into the train, part of the via system in canada. >>> it's an increasingly desperate situation in and around the resort city of acapulco, mexico,

they weren't hired by the american economy. they were hired by the shareholders of that company to make money for that company. every technological breakthrough made by capitalism in the last 300 years has been justified by whoever was making it on the grounds that, "with this new machine," or, "with this new process, human labor will be less drudgery." machines will replace people. we will not have to work so hard and so long. how interesting. according to the oecd, americans today, where we have the most advanced technological breakthroughs imaginable-- americans today do more hours of paid labor than any other working class in any country

useless to get you from point a to point b unless you consume that ultimately drives value to the american economy. our customer, i can completely agree with what shannon said in terms of our business objective, so to speak, is to empower entrepreneurs and innovators, to create jobs. that's a metric of success, not revenue generated per data set or some other per ifervance metric. the other piece of that looking back to the example of weather and gps, my monetization, is that together they contribute $100 billion to the american economy last year. last year alone from just those two data liberations. so, that is the way in which we are approaching from a strategy perspective, the ultimate impact to our customers. >> one super quick. one thing the city of san francisco or big cities or federal, right, the other smaller cities, smaller cities have smaller budgets. having a structure to support all this open data takes a lot of money. so, when these small cities are thinking about this, they should think about a way of somehow equalizing because they are putting into having these open data team, righ

automatic stabilizers left an additional $10 billion in american consumers' pockets dollars that would go to the treasury as taxes in a healthy economy0 billion helped to fuel american prosperity. by the summer of 1954, the first republican recession since the crash of '29 had come and gone, leaving a prosperous economy to continue growing. in the economic history of 20th-century america, the recession of 1954 is just a wrinkle in the upward climb of postwar prosperity. it is significant because by the 1950s most economists agreed that the government should use fiscal policy to minimize recessions. to eisenhower, that meant taking advantage of the automatic economic stabilizers. we asked richard gill how those stabilizers work. in 1954, when real gnp began to fall, federal tax revenues also began to fall simply because there was less taxable income. this meant more money for consumers. private spending did not have to fall as much as one might have expected. in terms of our diagram, this private spending curve, instead of going down, was flatter like this. instead of spiraling into a great depression, private spending was maintained

the study concluded that american consumer and business confidence in the economy was one of the biggesttims of the crisis. ♪ >> to help us understand the financial crisis that was, and the status of big banking now, we're joined by neil erwin, and abby mccloski. from los angeles, david dayen, a contributing writer for salon. thanks to all of you. now this is the fifth anniversary. anniversaries come and go. we love them in the media. but we're not the only ones. president obama took a moment to say let's look back on where we started five years ago and where we have come. why is this such a significant anniversary, neil? >> we have been through this wrenching experience the last five years, and it is the defining episode of the 21st century. this really has been the defining episode of our lives for a lot of us. it has caused massive unemployment, years of sluggish economy, and remade the financial system in ways that aren't totally fixed yet. >> abby can you pin the current economic situation to what happened to the banking five years ago? >> the economy is certainly facing significant

all of which i think had over the long-term positive results for the american economy. and there are a lot of reasons out there that we have uncertainty in our economy, it's not because we refuse to change our -- some of us went to cheage the debt course we're on. that's not the only thing that's hurting the economy. dr. meltser would you -- isn't it true that the uncertainty of the obamacare health care thing is impacting employment and businesses in a rather seg cant way in america today? >> yes, i mean, even the labor unions have indicated that obamacare is hurting the 40-hour week as it is. as you pointed out in your opening remarks, a great part of the jobs created are temporary jobs. one of my chern a chef, was feared. her employer said to her you know, we like your work, we think you're great but you're going to put us over the ceiling so we have to get rid of you so you'll -- we'll be below the ceiling. that's just one example. it's happening every day to people in the real world. >> last week, the environmental protection agency announced dramatic new co-2 regul

tempos of development of american economy of european economies still very low. there are some unwanted consequences. of measures taken for recovery it for developing countries for brics countries brics countries. they have a slight slowdown in their temples of development. so the rest to lots of things that are disturbance for global leaders and this is exactly a forum. for them to try to find ways to discuss possible global measures for. recovery of global economy you know almost every twenty summit is. a record breaking think of how much money taxpayers actually are spending on this summit although it's an economic enterprise is it really worth it in terms of economy because of course there's of course it's not that expensive in terms of state politics terms of international politics and. you mean the money that would that was planned for going ization of the whole thing . in this sense russia russia is very very. economy area to country because we are using. this facility they were built renovated for. four g. eight that took place in st petersburg in the yea

hostage theld american economy and the american people so you it is too can get your social agenda. it is too important to the middle class and too important during this time of economic recovery to not weaken the -- to start to weaken the pillars of recovery that will allow the middle class to get back on its feet. i don't think democrats are ready to engage in the shenanigans. it has nothing to do with budget in all to do with an extreme hard right social agenda. >> [speaking spanish] >> [speaking spanish] other questions. >> the question was a bit open- ended. so if you're saying the take out the language on the affordable care act but at something else -- >> if they were to bring up the cr, leave off any provisions that have to do with the defunding, but you have seen a list of different provisions that they have thought about adding. >> again, without specifying exactly what they would add to it heard their are other attempts to amend aspects of the care -- of the affordable care act. i don't think we should use this process is a legislative fix for the issues they're concerned

. >> reporter: while the government continues its push to get the economy back on track, americans still feel an overall disconnect. according to a recent pew research poll 6% of americans felt government policies have helped small businesses. nearly a quarter of those polls said policies have helped a fair amount. and 67% felt small businesses have not been helped much or at all. though the federal reserve acts independently on monetary policy, the dysfunction in washington is a factor that is running in the background. congress is on a collision course on the budget in the coming weeks. as bernanke's term runs out in early 2014 the debate of the role of the federal reserve in the american economy is now front page news. >> a lot of developments this week. we certainly have a lot to talk about. joining us to discuss the federal reserve decision and the central banks role in the economic recovery are a professor of international finance and business at george washington university. she serves on the board of directors at the international trade and finance association. from new york, chi

. >> this product is important for the american economy. it is a work for us. people who are the backbone, the true backbone of our economy need trucks like this to do their job. >> and what scientists now believe about our impact on the environment, a growing body of evidence, and an advanced look at what experts around the world agree is happening. >> >> good etching and thanks for being with us. we begin tonight with a story that is still developing, it is now heading toward a full week since it began. but the events that began with a upscale kenyan shopping mall have important implications for americans. especially in the fight against terror attacks. an international team including americans is now searching through the rubble of the mall, where at least 72 people were killed, as they try to piece together how gunman from the el sha babb organization planned and carries out this assault. five days now after the attack, a series of explosions rocks west gate shopping complex, smoke could be seen rising from the mall, although it is still unclear what caused

even if we didn't have these programs americans are generous people and they will find ways to help people in need. look, if we have an economy would grow at the rate we are at now because when you have an american hobby it isn't -- you're not going to get people out of poverty if the economy is growing at 1.5%. you have to grow two or three times faster. this is one of the things that motivates me. what policies can we put in place right now that get us back to the three or 4% growth tax? and if we do that and the way to think about the growth is to solve the deficit problem and the wealth problem and we can have money for schools and science and all the things president obama believes in but if you don't have economic growth and we are all sticking our handout for a reduced number of models. >> we are here at freedom fest a libertarian gathering in of a guess. we talked to a couple other authors, jim rogers who spoke a little bit on the sky is falling and we are printing too much money, gold standard. do you share their views? >> i'm kind of the optimist here actually i believe in america. the way i always put it is we have

proportionetly, all of them. >> i think the globalization of economy and the nationalization of the american economy is behind it all. >> you think we could survive without a flourishing economy? >> we survived for 200 years before we got into the global economy. >> housing -- the recent great recession is caused by the housing bubble, the bursting, and the greed on wall street. >> the chinese is representative of one problem, which is we have a tremendous transformation of the global economy. they're much more competitive in a lot of products that we used to make but the real problem is we're in a tremendous technological campaign. >> the world is interrelated in a way that it never has been. >> it is. and i don't like it. >> the world is changing. we cannot roll back the clock on globalism. we tried to do it in the past. we brought about recession. consumers here love global trade because it makes things cheaper, and, okay, it under cuts jobs. the economy's going through changes. >> the consumers brothers and sisters don't make them any more. >> there are ways to boost the working class america an

one of the great features about the american economy is where an income elevator.a mobility more so than any other country. anyone can succeed in this country. we see this every day with the immigrants who come in with a shirt on my back 10 or 20 years later. the members of the middle-class or higher. >> host: stephen moore, it's been 10 years since the bush tax cut. >> guest: they were built for the most part. >> host: you talk about them in your book, transcendent. >> guest: here's my take on the bush tax cuts. i think president obama made a mistake in january when he was certainly in the skies because what we were doing was cutting taxes on investments. i was one of the people of vice president bush in 2003. he was trying to say he asked a bunch of economists like myself, how to get the economy moving again? reset tab east taxes on capital investment to beget more businesses here, more jobs so that everyone benefits. i think for the most part that was a success. i'm worried that we raised taxes on the best and cannot raise taxes on american businesses, either re

there are dozens on the right who are trying to jeopardize the american economy by defaulting on the debt. they want to basically kill the affordable care act in its crib. that's the threat, that's what the demand is, and it's now all out there for all to see. i can't remember when the political party did something like this. it could throw the market into a tailspin and whack our 401(k)'s into a fare thee well. so what justification does the right wing of this country have for the senseless assault on the credit rating which happened the last time they pulled this tactic? what's the end game in which the world watches us as the country defaces itself. it achieves nothing, kills whatever's in its path. this is how i look at it. and i hate to see what i see because i still believe despite this hard evidence in the rights of self-government. david, political analyst. i respect your office. congratulations on representing your district. my question is, what do you think will be the impact of a default on the u.s. debt? >> i don't think there will be a default on the u.s. debt. the total

i don't think he cares about the american economy.he wall street journal editorial page, they don't want the american economy to crumble. this guy doesn't seem to care. and that's what's really scary to them. thank you jim moran and john feehery. >>> coming up, so exactly who is this guy ted cruz? a reporter for the republican friendly weekly standard wrote that as he was in the back seat of a car listening to cruz, he calculated how many vertebrae he might break if he jumped out of the speeding car. >>> also president obama kicks off a six-month effort to explain the affordable health care act. about time. and he talks with bill clinton at the clinton global initiative today. >>> plus it looks like we're about to witness a thaw in relations with iran nearly 34 years after hostages were taken in tehran. >>> and president obama said the reason he quit smoking is he's afraid of his wife michelle. i know a lot of men that can relate. this is "hardball," the place for politics. she's always had a playful side. and you love her for it. but

but in any event, i don't want to play brinksmanship with the american economy, i know senator warner doesn't, i don't think many republicans do. so let's get past this time frame, this period right now. but we have to address our long- term entitlement problems because it's bankrupting this nation. >> woodruff: i'm asking you what may happen in the house, senator warner, but your fellow democrats, do you believe they're prepared to go along with speaker boehner if he tries to get this budget -- this spending proposal through and needs democratic votes in order to do so? >> i think if he needs democratic votes to accept a -- what i think the senate will send over, a short-term funding mechanism that allows us to have further debate on the health care bill at another time, yeah. i think speaker baner will get the votes. i guess one of the things i feel there is some good things in obamacare, there's bad things in obamacare. today it came out in virginia that we're going to actually have competition in a whole lot of parts of virginia that never had private health care insurance competi

the allies turned to the americans for weapons to continue the war. keynes feared the economyldn't stand the strain of increased demand. but in washington, his young disciples disagreed. we were more expansionary than he. he thought it was time to put the damper on aggregate demand. we disagreed, partly because our view was that the capacity of the economy to produce was greater than he thought. the great depression ended with the vast production of wartime economy. government spending, which frightened roosevelt when it topped $15 billion in 1936, soared above $100 billion during the war. massive government intervention finally brought full production and full employment. why couldn't the private sector have brought us out? what keynes said was, total private demand might not be sufficient to sustain full employment. suppose this is national income when everyone is fully employed. but suppose investment demand plus consumers' demand only equals this level. there isn't enough demand to sustain that level of income. keynes said full employment could be achieved if we added publ

the american economy, the recovery is continuing. but there are two areas.ility of american government. we benefit enormously from the fact that the dollar is the reserve currency of the world and our treasury bills are the reserve investments of the world. if that changes, if people start worrying about getting repaid, as they shouldn't, frankly, worry, given what we're doing, that would change things dramatically. it raises huge costs for the united states. the second is, in all this crisis management, nobody is talking about what we should be doing for the long-term in this country. we are seriously underfunding investments in education, in infrastructure, in basic science. those are the -- that's the seed capital that produces growth. you know, we had these slogans where people said, it's not about big government or small government, it's about smart government. well, right now, what we are doing is stupid government. >> and when you look at how petty and stupid it is in washington, and sometimes there's a news event around the world that puts in perspec

why did these two events affect inflation and unemployment in the american economy? u.s. s besieged by the twin assaults of inflation and unemployment in the 1970s. why couldn't the government achieve significant success against the ravages of stagflation? in the late 1990s, the economy was booming.

>> bob woodward thinks president obama could be blamed. >> the american economy is at stake.resident, if there is a downturn or a collapse or whatever could happen here that's bad, it's going to be on his head. >> a lot of rhetoric from mr. woodward lately. >> here's what i think. this ping pong back and forth. they may shut down for a day or two. then they'll figure out a way to refund the government until the next one and the next one. obama care will get implemented in the meantime. this is brilliant strategy by people on the far right. they've made it clear to the american people they don't like this obama care. then they lost the fight. so in 2014 when it comes out and all these little districts are going up against democrats. republicans against democrats. there's going to have to -- if obama care work, they'll be in trouble on right. if it fays like everyone thinks it will or it's hurt the economy, then they will win. win handily in 2014. don't call it obama care, starting today, it's demo care. >> brilliant strategy to lose, is that -- >> there's not a win for the rep