this is david schoumacher for economics usa.annenberg/cpb project captioning performed by the national captioning institute, inc. captions copyright 1986 educational film center

for economics usa, this is david schoumacher.nberg/cpb project captioning performed by the national captioning institute, inc. captions copyright 1986 educational film center annenberg media ♪ for information about this and other annenberg media programs call 1-800-learner and visit us at www.learner.org.

with the help of our economic analyst richard gill, we'll find out on this edition of "economics usa.m david schoumacher. we like to think of our economy as one that runs on competition. for instance, we can choose the brand ofasoline we buy. one station sets its prices too high, thene can simply go across the stet one station for a lower price.o high, if enough drivers pass the high-price station by, sooner or later it goes out of business. of course, if in order to attract business a station sets its prices too low and can't cover costs, sooner or later it'll go out of business, too. but what happens to prices if one company, or one person, controls all the gas stations? that was what the country faced in 1890. the company was standard oil -- the man was john d. rockefeller. this was the infant oil industry jafter the civil war. drilling equipment was hand- and foot-operated in those days and available cheap. anybodcould join the o rh, and anybody di with thousands of small-scale prospectors, drillers, and finers competg, the supply of oil was plentiful. prices were low, and so were

economic analyst richard gill and i will examine that question on this edition of "economics usa." david schoumacher. the united states has always been blessed with vast natural resources, including some things we used to take for granted, like fresh water and clean, healthy air. but not any longer. in the past few decades, we've learned that industrial activity carries with it a substantial environmental price tag. if we want fresher water and healthier air, somebody is going to have to pay for it, as we found in the tiny town of silver bay, on the shores of lake superior. 30 years ago, this part of minnesota was practically a wilderness area. then, shortly after world war ii, some farsighted entrepreneurs decided there was money to be made in a rock called taconite, found here in abundance, near the famous mesabi iron range. they called their venture the reserve mining company. ruth erickson remembers the early days, before the trouble started. anybody that came here to work was in -- [ dog barks ] shush! -- was in bad shape economically. and reserve built the town, they furnishe

usa. there is an economic boom in one north dakota city, but the price is high. ♪ >>> in washington stateicials are now ending that active search for bodies five weeks after that mud slide near oso. more than 40 bodies were recovered, two, though, are still missing. hundreds of people combing through the mud and debris for victims. officials say it could take up to three months to clear the mud from the highway. >>> there was a small town in north dakota that was going broke, and then oil boom happened. christof putzel takes a look. >> reporter: the sign says it all . . . over the past five years the mayor has seen his town come back from the brink of death. >> now it's growing faster than any other place in the country. >> but not everyone likes what black gold has done here. dui arrests are up 15 fold, and there has been a spike in domestic violence. how much has domestic violence increased? >> another one point i would have said tripled, but now i'm going to say quadruples. >> reporter: the mix of men and money is bringing another playing to willston. this undercoverage footage reveals

the foundation for the formation of the eurasian economic union scheduled to take place in twenty fifteen in other words each successive stage of the usa development is a qualitatively new level of integration. we are talking about the deal was sick of these associations the beach today. but when it comes to the customs union. even its name implies the context that is more there than just cost them species. the eurasian economic union is more about economic integration and anything else. the new level of integration teams participating countries the possibility to move the goods capitals played the forest service is proving he's a powerful impetus for expanding markets increase in taxes to do the racing product competitiveness and improving be administered if operators. these countries word is interested they would not be moving to get into words. their common goals the general purpose of the euro seconds to play some economic pragmatism. it clearly follows these development director at the same time the council is aware that the rusty with the issues that must be addressed they consider to be an adequate solution is to be found. the f

economic sanctions the way to get it done. i would be surprised if anyone thinks that's true. i also think that on a day where -- if russia is weak there's a troubling report out of "usa today" that one of the ways you lash out when you're weak is to try to put other people down. "usa today" reports on pro-russian military folks telling jews in eastern ukraine they have to register their police report. maybe th -- property. >> that's the most disturbing story i've heard so far. >> eric, a lot of people are hinting that this could be the brink of world war iii. this is "usa today," a very disturbing story and making the rounds. world war iii? >> hopefully not. i said this yesterday. i got blasted on twister for it. y i think president obama is playing this the right way. i don't think we have a dog in this fight. i just don't. i think the eu does. i think maybe nato does. i'm not even really sure about that. but i think it's in our best interest to continue whatever financial sanctions that president obama has instituted and stay out of this one. this is not ours. we don't have -- we have virtually no trading with ukraine. we don't trade with them a lot. we trade with

economic circumstances, but you might want to start there. in the land of plenty, many go without. this is the headline from last thursday's usa today. of your viewers sang the hunger game is not a fun game. let's go to tom from texas. good morning. caller: good morning. you need to go from the food bank to the voting booth. are we in russia or north korea? how can you sit there and let people cry? go ahead and get your license or whatever and vote. host: tom from texas. we will go to dave from california. i just wanted to make a statement -- i don't understand why the republicans are always cutting food stamps or anything that is good for this country. and why they don't raise the minimum wage. the minimum wage in australia is $22 an hour. a bit above mexico. i don't understand why democrats and republicans -- democrats say, if we raise the min wage, there will be less jobs. making $22 ans -- these people are starving in this country and those republicans cut food stamps. i don't understand what's wrong with them. they should not be in congress. they should make the minimum wage -- raise the minimum wage. democrats want food stamps.

in the usa looks viable because we have seen rates rising in countries that we used to think of as being very low-cost. that is causing fundamental economicnal wisdom said that europe and the u.s. were high-cost and that asia and south america were no-cost -- low cost. that no longer holds, it means manufacturers had to change what they're thinking and figure out where to go over the next decade. >> as i look through your report , a world map and you highlighted only the u.s. and mexico as countries where that competitiveness has improved. how much of this also has to do, frankly, with the fact that we have a lot of oil and our energy cost are a lot cheaper than elsewhere? >> energy is important, but it is only one factor. the other thing we are seeing in the united states is relatively stable wages with productivity increasing, which is making a big defense. contrast that with a country like brazil, 25% higher than the u.s., a shocking number, where they have seen virtually no productivity gains. they are therefore at a balance. >> how do you define manufacturing renaissance? as a return of manufacturing to the united states, very simply

usa to encourage people to invest. we are using the direct line program to connect american topanies with opportunities expand overseas by connecting them to economicinsights of more than 15,000 h ambassadors and employees around the world. we need you to tap into that. we are committed to leveling the playing field for the ttip and tpp, we are fighting corruption by advancing the anti-bribery convention. we are working with the ex-im agenda expand uthe nei to the next phase. that is why we are using public-private partnerships like the palestinian economic initiative and the partnership for new beginnings to try to open up new possibilities for changing life on the ground for people who have seen little improvement in their lives over decades. that is why the president started the presidential ambassadors for global entrepreneurship programs. to bring insight to entrepreneurs across the world. we are doing all this because in the world we live in today there are far fewer borders to trade and talent. that means, you know this better than anybody, our companies have -- muche condition more competition. in the cold war, the united states could make

economic circumstances, but you might want to start there. in the land of plenty, many go without. this is the headline from last thursday's usa today.ne of your viewers sang the hunger game is not a fun game. let's go to tom from texas. good morning. caller: good morning. you need to go from the food bank to the voting booth. are we in russia or north korea? how can you sit there and let people cry? go ahead and get your license or whatever and vote. host: tom from texas. we will go to dave from california. i just wanted to make a statement -- i don't understand why the republicans are always cutting food stamps or anything that is good for this country. and why they don't raise the minimum wage. the minimum wage in australia is $22 an hour. a bit above mexico. i don't understand why democrats and republicans -- democrats say, if we raise the min wage, there will be less jobs. making $22 ans -- these people are starving in this country and those republicans cut food stamps. i don't understand what's wrong with them. they should not be in congress. they should make the minimum wage -- raise the minimum wage. democrats want food stamp

africa usa ideas leading the power african initiative which will increase access to affordable electricity for hundreds of millions of people in sub-saharan africa. this will help fuel greater economicrowth and development across the come up -- continent. i have the electrify africa and the legislation that chairman lars and i often will bolster your efforts and exchange a life of the promising program to be in afghanistan and pakistan the u.s. has been billions of dollars on roads, agriculture, rule of law and capacity building. lp will focus on how usaid plants among the projects in afghanistan after the withdrawal of all u.s. combat troops of the end of 2014 and the continuing value of our aid to pakistan. the president recently signed a lot of bipartisan legislation to provide additional assistance with a focus on strengthening civil society, combating corruption, promoting energy efficiency and diversification and preparing the country for democratic elections. usaid will be a lead agency in implementing this assistance and i look forward to hearing your views on how best to manage these programs. the chairman and minor leading a trip to the ukraine in the very, very short time

usa to encourage people to come and invest in the united states. and that's why we're using the direct line program to connect american companies with opportunities to expand overseas by connecting them to economicinsights of more than 15,000 ambassadors and diplomats around the world with. that's what we're doing. we need you to tap into that. that's why together we're not only committed to leveling the playing field through the ttip and the tpp, we're or fighting corruption -- we're fighting corruption by advancing the anti-bribery convention. that's why we're working with the ex-im bank, to expand the president's nei agenda into the nei next phase be, promoting american exports based on their quality and potential for innovation rather than basing it on just how much they cost. that's why we're using public/private partnership like the partnership for new beginnings to try to open up new possibility for changing life on the ground for people who have seen little improvement in those lives over decades. and that's why the president started the presidential ambassadors global entrepreneurship program, to bring the most of the insights of our most successful business people to entrepreneurs acro