maybe some of you are aware of a study that just came up under the auspices of paul volcker that look at local and state government finances. it found that many governments are finding it very difficult to meet their long-term commitment for pensions and other benefits to their work force. during the recession and the crisis, of course, as the economy contracted and states and localities with balanced budgets, they cut back on their spending and if you look at employment over the last few years, even as the private sector has been adding jobs, state and local sector has been subtracting jobs and reducing the overall pace of gains in our labour market. it is been a very tight situation for state and local government. on the other side, we have education which is the most basic kind of investment, the investment in human capital is the investment in our future and there is evidence that every year of education provide extra earnings power, extra job satisfaction, and adds to the overall social welfare of the tire economy. -- the entire economy. an official complication is that the quali

unsustainable and even the global commission on drug policy which included george schulze and paul volckerman of the fed concluded last year that "the global war on drugs has failed with devastating consequences for individuals and societies around the world." fundamental reforms in national and global drug control the policies are urgently needed. end the criminalization, marginalization and stigmaization of people who use drugs but do no harm to others. there is a small but growing movement it toward the legalization of ganga. it's cost us 1 trillion dollars and resulted in incarcerating millions over nonviolent offenses. i a new book argues that the money the government can make legalizely this sticky icky could help us out of our economic troubles. doug, welcome to the show. >> thanks so much. >> what's your dream scenario here? is weed going to be treated like alcohol and almost anyone can buy and sell it anywhere and it's taxed? how would do you it? >> something like that. cannabis needs to get out of the controlled substances acwhere it currently resides as a schedule 1 felony where

former federal reserve chairman paul volcker recently said that the j.p. morgan episode might be an illustration that these banks are too big to manage. former fdic chairman sheila bare says that shareholders and regulators could force banks to break up but this legislation would be the more direct -- most direct way to do it. richard fisher, president of the fed of dallas, jaimed bullard, president of the ned st. louis agree that more needs to be done to address the problem of too-big-to-fail banks. last week the architect of to the-big-to-fail banking model, former citigroup c.e.o. sandy wile, said that biggest banks should be broken up. increasingly, this isn't a partisan issue. the ranking member of the banking committee, republican senator shelby from alabama, supported the safe banking act when it was a floor amendment -- when it was the brown-kaufman floor amendment. i've heard from more and more of my colleagues on both side of the aisle that they might have voted against it a couple years ago as a floor amendment but things have gotten worse. the

i voted for paul volcker was. none of you remember him. we had done a machine machine of the year. and so -- you but you could tell the first time you met steve jobs there was something compelling about him. >> flash forward twenty years to 2004 and he gets in touch with you. >> gives me a call and i just go in the room and we talked. do you want to come speak? i want to take a walk with you. after awhile he said why don't you do a biography of me. i had done ben franklin. was finishing albert einstein. i thought, okay, steve. >> i'm sure it was on his mind. >> i admit, i said you're a really, really great subject. but let's wait 30 years until you retire. it wasn't until 2009 when he had the liver strains plant went on the medical leave it spunk in that he was fiecting in cancer. he had transformed with the team a wide variety of str industries. first home computing and by that point by 2009, had transformed the music industry, with itunes and the ipod. the way we listen to music, the phone industry, the publishing industry, tablet computing, i said all right. this is too good to

businesses they should be in and shouldn't be in and which former chairman of the federal reserve paul volcker tried to address and i think it is going to be hard to go back to the glass-stegall era and the old goldman sachs and the old morgan stanley and the old lehman brothers, the crisis of the time and when i left business school there were firms like dillon read, horned lower, dozens and dozens of firms. from time to time they went under but it wasn't in the earth shaking event other than the people that worked there lost their jobs. so, that's not the world we live in today. >> in that little time we have left just want to ask each one a few. what's going on out there and thinking about whether they are slowing down and whether that is granted be a problem for us and more about our economy to you see signs of hope and where do you feel like we stand? >> in china i'm looking for some serious near-term preservation is. i think the housing market was basically they'd get the low hanging fruit. they have a model of investing and stimulating the economy through cheap capital it's also about t

maybe some of you are aware of a study that came out under the auspices of paul volcker that looked at state and local governments' finances and found many governments are finding it difficult to meet their long- term commitments for pensions and other benefits for their work force. during the recession and the crisis, at the -- as the economy contracted, so did tax revenues come out and the, these would balance by cutting back on spending. if you look at employment, as the private sector has been adding jobs, state and local sectors have been subtracting jobs and reducing the top overall pace of gains in the labour market. it has been a tight and difficult period for state and local governments. at the other side you have education, which is the most basic kind of investment, investment in human capital, our future, with lots of evidence that every extra year of education provides extra earning power, extra job satisfaction, and adds to the overall social welfare of the entire economy. so there is a great deal to be gained from extra education. an additional complication is that the q

businesses they should be in and shouldn't be in and which former chairman of the federal reserve paul volcker tried to address and i think it is going to be hard to go back to the glass-stegall era and the old goldman sachs and the old morgan stanley and the old lehman brothers, the crisis of the time and when i left business school there were firms like dillon read, horned lower, dozens and dozens of firms. from time to time they went under but it wasn't in the earth shaking event other than the people that worked there lost their jobs. so, that's not the world we live in today. >> in that little time we have left just want to ask each one a few. what's going on out there and thinking about whether they are slowing down and whether that is granted be a problem for us and more about our economy to you see signs of hope and where do you feel like we stand? >> in china i'm looking for some serious near-term preservation is. i think the housing market was basically they'd get the low hanging fruit. they have a model of investing and stimulating the economy through cheap capital it's also about t

maybe some of you are aware of a study that just came up under the auspices of paul volcker that look at local and state government finances. it found that many governments are finding it very difficult to meet their long-term commitment for pensions and other benefits to their work force. during the recession and the crisis, of course, as the economy contracted and states and localities with balanced budgets, they cut back on their spending and if you look at employment over the last few years, even as the private sector has been adding jobs, state and local sector has been subtracting jobs and reducing the overall pace of gains in our labour market. it is been a very tight situation for state and local government. on the other side, we have education which is the most basic kind of investment, the investment in human capital is the investment in our future and there is evidence that every year of education provide extra earnings power, extra job satisfaction, and adds to the overall social welfare of the tire economy. -- the entire economy. an official complication is that the quali

businesses they should be in and shouldn't be in and which former chairman of the federal reserve paul volcker tried to address and i think it is going to be hard to go back to the glass-stegall era and the old goldman sachs and the old morgan stanley and the old lehman brothers, the crisis of the time and when i left business school there were firms like dillon read, horned lower, dozens and dozens of firms. from time to time they went under but it wasn't in the earth shaking event other than the people that worked there lost their jobs. so, that's not the world we live in today. >> in that little time we have left just want to ask each one a few. what's going on out there and thinking about whether they are slowing down and whether that is granted be a problem for us and more about our economy to you see signs of hope and where do you feel like we stand? >> in china i'm looking for some serious near-term preservation is. i think the housing market was basically they'd get the low hanging fruit. they have a model of investing and stimulating the economy through cheap capital it's also about t