Coming up on GPS Sunday at 10 a.m. and 1 p.m. ET, Fareed and his guests will discuss the world’s hot spots, Mexico’s future, China’s demographic problem and America’s unemployment crisis.
GPS will tackle a discussion on Europe, Syria and America with Kishore Mahbubani, Anne Applebaum, Mark Malloch-Brown, and Dominique Moïsi.
In the show's "What in the World" segment, Fareed will examine how China will struggle to compete in the future as it faces a demographic crisis.
Then the discussion will turn to Mexico, which elected a new president. Presumptive president-elect Enrique Peña Nieto will give his thoughts on the country's drug war, which has claimed 50,000 lives in six years.
Watch a short part of that interview.
Peña Nieto also weighs in on Arizona's SB 1070 law, which has controversial ways of dealing with illegal immigration.
Finally, the show will take a look at jobs in the United States. This week a new jobs report was released. Fareed asks: Who creates jobs in America? Is it the 1% or the 99%? Two guests with very opposing viewpoints debate the issue.
It's both. Trickle down was the start of the Industrial Revolution & China's economic expansion. Likewise trickle up helped following and many other times. Anyone that tells you one doesn't work allows partisan politics to come between their understanding of economics.
You are correct. But I would argue that Trickle down was not the start of the industrial revolution here (it may be in China due to the level of government control). In fact, I think there may be a third item that helped kick it off here, and that would be the exploitation of natural and human resources (neither trickle down or trickle up....more like natural selection where the most ruthless rules). Left on it's own, raw capitalism would have enslaved the many for the benefit of the few and thus the need for government regulation (as long as the government was by and for the people which it no longer seems is the case).
As for the need for trickle down....that was much truer back in Reagans day when the only good place to invest was here, the best market was here and so investment spurred growth and growth spurred investment. Back then, business owners were as captive to us as we were to them and both knew it so labor could ask for more pay, business could ask for more production and the US market could run smoothly. Now, with the world economy, the same principals may apply, but the idea that all boats are raised is foolish....all boats will drop to the level of the lowest tide and before that happens some gotta win some gotta lose. So in the meantime, government needs to step in to spur the domestic workplace so that we can survive the change......but change is gonna come.
Trickle, neither up nor down ever worked anywhere. A dynamic middle class is all that ever worked to create wealth. The top 10% of Americans are living on the scraps of the past. They aren't creating anything of value.
Unless income disparity is addressed there will never be another prosperous time in America.
The corporations are sitting on record $1.3 tn of profits. Interest rates are the lowest. Short term interest rates are almost zero. Top tax rate is 35% but no one pays that because of loop holes. The wealth began trickling up in the 80's and during the 2000 – 2010 it leaped to the top ans supposed to have created jobs. They are no where to be found. Reason is right in front of us. NO DEMAND. Unemployment went from 9.8% in 2009 to 8.1% in the early part of the year because of DEMAND for exports. UE is having Euro crisis and China and India economies are sputtring. Our unemployment went up to 8.2%.
Empoyed people taxes and when they are unemployed the GDP drops and deficits rise. 610,000 teachers, police officers and other state level service personnel have been laid off. If they were still on payroll the unemployment wwould be 7.2%. WWII assisted the US to get out of the great depression that was followed by a deep recession after the millions were let go in 1945 after the war. The government took on highes deficit for the time to build infrastructure that laid the groundwork for the economic boom that lasted till the 70's. Nothing trickled down. Demand was created through spending by the government. To pay for all that a progressive tax system was devised where the top tax was 70%. Since we have corrupted our tax system to move 70% of the wealth to the 10% or maybe to 1%. Tough to keep track.
Immigrants like "professor" rajan, from filthy greedy rich versus the majority poor in India are the same overpaid tenured people in overpriced colleges like Univ of Chicago taking the jobs away from Americans and conspired with Wall Street, military weapons and oil barrons and yet has the audacity to complain too much focus is spent on funding and hiring teachers!!!
It is the Iraq-Afghanistan wars, Defence and Veteran Affairs departments that cost $10 trillions that ballooned our national debt to $15 trillion and NOT paternalism or spending on educating and helping the disabled, poor and working class!!!! Even computer majors are discouraged not only in America but Asia because the finance industry is overpaying their greedy fraudsters manipulating the currency, interest rates and off course, CDOs bundling subprimed mortgages that made them trillions and yet no criminal charges have been brought to jail banks and hedgefunds like Chase Jaime Dimond, ex-Countrywide and BoA CEOs, etc!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The President of Mexico is full of re-fried beans. The laws being passed are NOT discriminatory in the least – not one bit. This is an indisputable fact, and I would bury anyone who tried to argue differently. It is the ILLEGALS – yes, ILLEGALS – say it again: ILLEGALS – who are causing their own issues. I have any number of friends who are from India, working here in American in the technology industry. They came here LEGALLY, and have worked their way through the system so they can live and work here. Why can't Mexicans who come here illegally, take the same route? I feel sorry for my Indian friends, who are forced to watch while Dems allow Mexicans to butt in line, just so they can garner the Hispanic vote. And honestly, THAT is what it is all about. Hispanics would need to be complete and total idiots to think people like Obama, Harry Reid, or Nancy Pelosi give a rat's behine about them. They don't. If it was not for that fact that Hispanics make up a large portion of our population, and have voting power, Dems would be on board with deporting these people as fast as possible, no questions asked. Dems are the worst kinds of politicians, as they PANDER, and are willing to do anything to retain power – and I mean anything. They care about nobody but themselves, but they try to convince others that they do care.
No Richard, it is your Congressman who is causing the problems. If the Congress wanted an immigration policy that worked we would have one. I know hundreds of illegal mexican immigrants, none of them want to be illegal.
Human potential is being carefully and strictly managed. There is massive unrealised, untapped potential for creativity and innovation, and our so called ' leaders' know it!
Job creation is not the preserve of the 'few' as we have been led to believe.
Even innovation is geared toward meeting the needs of the Markets.
The solutions to many problems are right in front of us, and have been for a long time.
We are being limited, and deliberately so.
What we have achieved pales in comparison to what we have lost.
The top ten percent have created less than ten percent of the jobs in the last 8 months
Yes, the police tend to discriminate against people who are breaking the law.
The wealth creating jobs are a result of the workings of the Free Enterprise system and not the Government. The creative destruction that happens as a result of Capitalism is the only way to create new wealth. Here is my simple example to illustrate this ...
1 – Take two farmers. One grows apples and the other oranges. Because of their hard work and abilities, their respective product sell at retail for $1 each.
2 – Take John Doe, the consumer. John loves both apples and oranges, but he only has $1 of discretionary spending money for his fruit purchase. So, he can either buy 1 apple or 1 orange, not both. :-(
3 – Here comes the Free Enterprise system to the rescue.
Farmers #3 and and #4. As a result of better talent from these farmers, and/or new production techniques, now #3 and #4 can get apples and oranges to market for $0.50 each.
4 – Now John is dancing in the streets. He can now buy both an apple and an orange. John's standard of living just went up. John didn't have to do anything to improve his life. The Free Enterprise system did.
5 – Farmers 1 and 2 better improve their business or they are out of business. May be they know how to get better corn to market, etc.
Now, I ask you, how in the world is the central socialist government going to decide who grows the apples and oranges?
So, the Free Enterprise system provides a way for desired products at better pricing to get to market, thereby improving the standard of living for all.
farmers 3 and 4 have underpriced farmers 1 and 2 to their own detriment.
Therefore, when farmers 1 and 2 go out of business, farmers 3 and 4 raise their prices to $1.50 for an apple or an orange.
Your observation is the reason why monopolies are illegal in the US ... and, if and when the price goes up to $1.50 again, it opens the opportunity for someone else to go into that business and bring the price down. The Free Enterprise system works because it is self correcting and it is based on the sweat and talent of the individual ...
Also, my point is that the Free Enterprise system is the best way to create the new jobs that are appropriate at any given point in time for a civilization. All of this based on new technology, production techniques, hard work, desired consumer products, etc. On the other hand, if it were up to some centralized bureaucracy to decide on who does what production and for what price, we would all still be riding around in horse and buggies from the early 1900s. That is, some bureaucrat or regulatory agency would have prevented the emergence of the automobile industry, all in the industry of keeping some Union or some other obsolete worker employed ...
Another observation is that Government jobs, since they are not created by the Free Enterprise system, just take wealth from the working part of the economy and redistributes such wealth into non creative enterprises. Within a capitalist system, one analogy for most Government jobs would be having a business setup with the purpose of employing people to dig holes and then filling those holes up again. A job in the interest of "creating" a job for someone ... When this is done, which is what is occurring with the current Socialist system in the US, eventually, you end up with a country that cannot compete in the world or create wealth for its citizens. And if such country and Government ends up spending more money than it takes in, eventually you have a bankrupt country.
You are talking theory not reality. What you have not factored in is excessive greed and power, that is the ability to corrupt and change the rules of the game. Will the free market system eventually take care of this - maybe but not without pain and suffering by millions. I believe in the free market system to a point but were you and I differ is I also believe in a higher standard of living for all. You claim that these lower prices lead to a higher standard of living for all, however, this is not true. As often the case those lower prices can be traced back to the sweats of others who's lower wages can no longer afford them the luxury of buying the apples and oranges they helped produce. Yes your standard of living went up but not theirs. The bottom line is that theory and reality are two different things - reality is a hell of a lot more complicated.
How about this reality ... Some say that within 20 years, machines will have the dexterity of the human hand and be cheaper than a person at most hand labor. What do you think will happen to the standard of living of billions of Chinese and others currently employed making shoes, assembling electronic components, picking strawberries from trees, etc, once some new factory is making the same components cheaper with robots? And there is no way to prevent that from happening. It is only a matter of time for technology to find a cheaper way of manufacturing things.
The bottom line is that human endeavor continues to lower the cost of production by applying new technology. In the meantime, human population keeps increasing. Future machines will not suffer but millions of people will.
There is nothing that any Government will be able to do for those in the middle class that lose their jobs to such machines.
In the past, whenever things in the world have gotten to some extreme, the world would throw a tantrum, we would have a World War, and there would be a reset of sorts. The world would then rebuild from the ashes. A plague or a big war would bring the population of the world into a lower and hopefully more sustainable growth trend. But, let's just hope such calamity doesn't happen. Let's hope that technology, agricultural and medical advancements help us find a way to improve the standard of living for more people in the world.
We need cheaper energy. Plentiful energy would raise the standard of living of the middle and lower class. It would also provide for an infinite supply of fresh water by providing the energy for desalinizing ocean water.
Farmers 3 and 4 are desperate for cash flow. They will put farmers 1 and 2 out of business with their prices that are too low and then they will go broke too leaving only a few farmers working and driving up prices for the foreseeable future.
The very thing Corporate farming did to the family farm. Without the large Government subsidies and paying slave wages the corporate farms couldn’t do it either.
Some of my immigrant Hispanic students understand capitalism better than cucotx. It hasn't worked in this country since 1981 and big businesses sit on 1.3 trillion dollars in profits and don't invest any of it in our economy. Capitalism, like Socialism and Communism, has become the political system of the US.
Maybe the reason why some businesses don't invest their savings is because of the uncertainties of regulations, taxation, cost of medical insurance, etc.
The US has one of the highest corporate tax rates in the world. It is cheaper, and sometimes a better business decision, to invest in new production capacity or new development abroad and not in the US.
It is not true that the US has the highest corporate tax rate, and what makes your statement even more inane is that the largest Corporations in America paid no taxes last year.
The tax and regu;lation situation has been steady for years. Health insurance cost are easily indexable 10 years out. The only uncertainty lies in the historic record setting filabuster power in congress. The US has one of the lowest effective tax rates in the industrialized world. Multinationals want it even lower, thats why they are withholding investment money. Note they are holding investment funds not putting them into other countries either. They are waiting to bully brain washed House members into shifting tax burden to the lower tax brackets.
As an independent, I would prefer Mr. Zakaria, whether it's health care, China, Mexican drug cartel and newly elected leader or any other topic for that matter, would acknowledge before he puts forth his comments that he is an ardent supporter of President Obama. Never have I heard anyone preface their questions by first asking what they think of Barak Obama as President, i.e., how is doing, knowing that most of his panelists are left-wing or come from a perspective that is shared by him. The whole show is based on promoting the Obama agenda with practically no valuable criticism of his administration. Do you really think the French, or a newly elected President of Mexico is going to articlate the republican perspective of what is necessary regarding the Arizona law?? No, of course not, and Mr. Zakaria knew this. Why does he even have a show. Comparing the French and British healthcare system to ours is like comparing Mass to their countries. With all of Mr Zakaria's education and hubris you would think he would stop comparing apples to oranges. He is in a country of 48 contiguous states not one european country like France which is the geographical comparison to Texas. Start articulating the truth not your agenda. And to think I used to think of you as a fair-minded commenator before Obama came on the scene.
Apples and oranges according to you.
My point was simple: a roteluvion of propertied white males, by propertied white males, for propertied white males is hardly an example of grassroots change, any more than is a Tea party backed and funded by the Koch brothers and Dick Armory's FreedomWorks. The People were a good deal more ambivalent than their masters (New York, for example, was throughout the Revolution mostly Royalist), and like the People through the ages, most waited to see which way the wind was gonna blow: after all, one cannot eat the pretty words these highly progressive, spiritually developed men of the Enlightenment appropriated from earlier, greater thinkers to justify their Revolution. I submit that to the people of Afghanistan (to pick just one of many, many examples too many, really) that the continuation of this project and a program for global utopia that puts Marxist-Leninism to shame by the United States looks no different than it did when it was the Marxist-Leninist empire inflicting it upon them (for their own good, of course).H? Is that H for Hagiography?
Those who don't feel proud of the USA and have NO idea what the rest of the world is like, this Argentina resident would love to hear your thgthous of Brasil as reflected by this article from an important study done by a brazilian resident of Australia.I celebrate the 4th of July and all it represents no matter where I am in the world.Whoever told you to be ashamed of the USA seriously did you a disfavor.
America has a global advantage over China because America has been open to the rest of the world as an active participant in the events of this planet for over 200 years while China had maintained a xenophobic isolationist position for many years only to wake up recently trying to catch up by mimicking what goes on in the world but fundamentally not understanding the evolution of human race. Too many men not enough women.
I just watched the "debate" about job creators – the 1% or the 99%. I found it very interesting that the Bain Capital guy responded to the 99% guy by dismissing his argument as "moral" and not "economic." This has to be the single most repugnant aspect of no-holds-barred capitalism practiced by Bain and others like it. For them, the ONLY thing that matters is economic gain. Is that how we define America? Evidence seems to point to yes.
I agree. This is the problem with the 1%. They have no sense of ethics, no integrity and no moral compass. They simply worship the almighty dollar and to hell with everything and everyone else. And as the other gentleman pointed out, they actually DON'T take risks because they game the system to eliminate any. And if they do create any net jobs, which is unlikely, they are ones with low wages and no benefits.
People like this will never be happy until they pay NO taxes because they feel they are better and more important than the rest of us and deserve special treatment.
I hope to see a LOT MORE of the other guest!
current govt.party (democrats:) advertising republicans compnies out sourcing jobs. Freddimac serviving with current govt bail out money sourced jobs to TCS. (currently hundreds of people in H1b working Freddie. GM after bailout they increased jobs count india not here. So whom to belive Obama and rommeny??? Fareed can provide info about these two candidates views on jobs and whom to beleive.
First, I honestly hope all you liberals that think the 'rich' dont pay their fair share would drop dead of some disease that obamacare will not cover.. You ARE the losers than bring down an empire. I pay 5 times as much into medicare TAX than what I pay for my own, and thats fixing to go up. And 50% of the country does not contribute a dime of the government to help your loser asses!!! As for Mexico, I live 3 hours from the border, which no one around here will go to now...Mexico is a POS country!!! Their government hates the US, I have seen the flyers they drop along the border telling Mexicans how to sneak across!!! The Mexicans are NOT friends of the US!! If you have 2 chromosomes and live around here you would know that. The Mexican president is just trying to get rid of his 'lesser' population to the US. Importing the uneducated populous to the US.
the first problem is that you think that the United States is an empire – that tells a lot about your mindset because an empire is far different in rule than a republic or a democracy so I can see you despise the little people so much – you don't even think that they should be a part of the governance of the country.
So why don't you start with learning about the US Government and how it was setup by our Founding Fathers and exactly what we fought a Revolution for and then come back to the rest of your arguments because if you are so factually incorrect about the foundation of the country I am afraid that there is no reason to deal with the rest of your post.
John we all hope you find a place you can be happy because America would be better off without folks like you. We don't need your taxes.
The 99% create jobs. Business owners only hire people to meet the demands from customers – without customers they need no employees. In fact a good business owner only hires people as a last resort – after working to improve the efficiency of existing employees.
If a business sees its demand for goods and services increase 200% it will be more than happy to go hire employees.
If you cut the taxes for a business to 0% and they can meet their customers needs with the current workforce – they won't need nor will a good business person hire more people just to have them sit around idle.
Fareed, I am disappointed in you – Ed Conard is a lackey for Romney, a major donor to a Romney PAC and obviously toting his water in public discussons. While you usually keep your guests on topic, you allowed Ed to change the questions, reframe the discussion and make the "debate" into a big joke. Why did you let that happen?
Kishore Mahbubani is right that we in the West can no longer ignore the rest of the world and in the case of Syria, China and Russia. Russia has an influential role to play there. To end the conflict without more bloodshed, we should ask Russia to persuade Assad to hold early presidential election. Russia should be active by convincing the opposition to take part and overseeing the election and the transition of power.
As usual, jvon, you are quite correct.
However, unless those countries see something to be gained, they will not change their tactics.
The Russians, especially, are not dealing with Syria, they are dealing with Assad.
The minute the Russians see that Assad is truly on his way out, they will make some sort of stand to pretend that they cared about Syrians all along.
Every where you have to go.You looks like fine, but looks like not fine.Please take a rest.When you are reary fine, I like your magic(^0^)/I like your shorts. Its nice degsin.
Sometime ago, I saw a video of a high school class rcieting the pledge of allegiance to the flag. I think the video was taken on the sly and I wish I could locate it. In any event the teacher who seem much like a phys-ed coach approached one boy who was defiant in not participating in the pledge. He was silent with his arms at his side. The angry teacher approached him, manhandled him trying to force the boy's arm into the pledging position. The boy went limp but the teacher continued to try to force him. I can see how someone might disagree with the boy's point of view and manner of protest but if this is supposed to be a free country, what is the point of trying to force him?
Fareed, as usual I enjoyed this weeks GPS. I disagree with your perception of China's demographic challenge. While the country is getting older with fewer workers to support the elderly, you forget an important difference between China and developed countries. Currently China's old age security (safety net) is much less expenisve per senior than developed countries. Also, its workforce has much greater potential to increase productivity due to enormous number of young people living in small towns and rural areas that have not yet been utilized to work in factories. There will not be a need for immigration in China for a long, long time.
Unfortunately American politicians are now so embroiled in pulling each other into the mud as election time nears, there is hardly any speech made regarding America's future international policies by election candidates.
And this is the crux of the whole American mentality problem.
Bush jr ignored ASEA, and Asia – to concentrate his entire presidential terms pursuing war in the Middle east and Afghanistan. These wars are now proven to be wasteful wars. If only he had spent more time doing business with China and the emerging countries, the unemployment situation could be less severe today.
Just think what America could do with that wasted 4 trillion dollars spent on those conflicts which is none of America's business in the first place.
4 trillion dollars can create millions of jobs for America, and it dont have to 9.% unemployed by the time Bush Jr left office.
I know thats all water under the bridge , but my question is
will America ever learn how to be politifcally correct in their foreign policies?
Thank goodness there is Hilary Clinton. Nerves have been soothed and confidence in America slowly returning – because of her diplomatic approach and sincere friendship among Asians and Asean – countries like Burma is on the way to democracy..
This sort of talk is meaningless from a man who would have any US citizen arrested for illegally taking up residence and employment in Mexico.
On your show your guest Kishore Mahbubani, said the US wasn't preparing for the day when our economy wasn't the #1 economy, while this true, I don’t necessarily see it as dire straits.
I think many politicians and talking heads have tried to make us fear this situation. It is a false benchmark. Does the biggest economy =strongest country? I don’t think so. There are many facets to power, economy, military and cultural influence for starters.
It is only fair that China the most populous country in the world have the largest economy. But what does the largest economy measure, GDP no? In the broadest terms their economy will be worth more than ours, but will the worker’s salaries compare to ours? At 4X the population of the US their per capita income, won’t be as high as ours or any other western nation. We may not be able to say we’re #1 but it is a hollow measure anyway.
I really dislike however the zero- sum game as if our countries successes are mutually exclusive. Does the pie get larger or does our slice get smaller? My guess- it is a little of both. The Chinese become more prosperous but I don’t see it as detrimental to our standard of living. Sure there is some loss of prestige by no longer being the lone superpower but then we get share the burdens and the resentments of being a superpower as well.
Strangest way to the marriage application
Kevin Pockalnik How economicly sustainable would building a water causway from the West Coast connecting to the East Coast be? Can a idea like this create jobs? Could a idea like this stimulate commerce? or travel? Could it be done? Just thinking...
Are you seriously suggesting that we take the water from the West Coast and send it to the East Coast?
What happens when we exhaust the water supply on the West Coast?
Sending water thousands of klicks is very expansive.
Well both are at Sea level. I figure nat some point connecting the two. That would affect the fishing industries by cooling down the Pasific and The Gulf. while providing Transportation and work for many...
Well both are at Sea level. I figure nat some point connecting the two. That would affect the fishing industries by cooling down the Pasific and The Gulf While making a new fishing habatat. while providing Transportation and work maybe for many..?
Well both are at Sea level. I figure nat some point connecting the two. That would affect the fishing industries by cooling down the Pasific and The Gulf While making a new fishing habatat. while providing Transportation and work maybe for many . Something to do with Huricanes.?
It could also help water distribuation between the states and fire departments. Maybe realign the US and see where the values lay. Even our Four Fathers understood that we would progress and would attain newer values.
Yup to the first
To the second, The waters would cool each other providing new waterways and transportation methods. Maybe effecting the fishing industry. too.
And uh Yeah but maybe we need to look towards the future.
Maybe even Mass transportation at some point.
I was suggested this site by my cousin. I’m not confident whether this post is written by him as no one else know such detailed about my trouble. You’re amazing! Thanks! xrumer
The Global Public Square is where you can make sense of the world every day with insights and explanations from CNN's Fareed Zakaria, leading journalists at CNN, and other international thinkers. Join GPS editor Jason Miks and get informed about global issues, exposed to unique stories, and engaged with diverse and original perspectives.
Every week we bring you in-depth interviews with world leaders, newsmakers and analysts who break down the world's toughest problems.
CNN U.S.: Sundays 10 a.m. & 1 p.m ET | CNN International: Find local times
Buy the GPS mug | Books| Transcripts | Audio
Connect on Facebook | Twitter | GPS@cnn.com
Buy past episodes on iTunes! | Download the audio podcast
Check out all of Fareed's Washington Post columns here:
Obama as a foreign policy president?
Why Snowden should stand trial in U.S.
Hillary Clinton's truly hard choice
China's trapped transition
Obama should rethink Syria strategy
Enter your email address to follow this blog and receive notifications of new posts by email.
RSS - Posts
Get every new post delivered to your Inbox.
Join 4,855 other followers