believe this is a place where only their willingness to work hard and to act with honor and integrity and ingenuity determines their success in life. then we'll have a bunch of people sitting on a couch waiting for the next government check. >> that's new jersey's governor chris christie. he's endorsed governor mitt romney for president. who knows, the two could be running against president obama in the fall if romney taps christie to be his vice presidential candidate. threats to hard work is hardly a new issue for president obama either. it was a central team in the kansas speech he used to lay out his economic agenda at the end of last year. listen. >> for most americans the basic bargain that made this country great has eroded. long before the recession hit, hard work topped paying off for too many people. fewer and fewer of the folks who contributed to the success of our economy actually benefited from that success. >> now, the president is referring to the wealthy when he talks about those precious few who are seeing the benefits of this economy. stephen moore an editorial writer for the "wall street journal." good to see you. i know you're not going to side with the president here. give me a sense of what specifically the government does that punishes success and discourages hard work from a conservative perspective. >> ali, let me start by sounding a note of optimism. i think chris christie and barack obama are wrong here. i think the great american dream is alive in america. we saw a great story this week, one of my favorite stories in a long time, instagram. these two kids start a company out of their garage two years later and sell it for a billion dollars. it can happen here in america and it's a great story. look, this has been a tough recession obviously. we're seeing declines in real incomes, people pinched by high gas and food prices. i do believe, we've lived through this before. we've lived through this in the 190s, in the 1970s people said the middle class is dead. i want to make that point of optimism, i think it's important. >> fair enough. what's the thing we say punishes success and doesn't reward hard work? what would conservatives like to see changed? >> here is the problem i have with the president's message. i think this idea of the buffett rule, tax the rich, the idea all we have to do is get the middle class ahead is soak the rich, sock it to the rich, that's the wrong message of success. we need a tax system that tries to make poor people rich and not rich people poor. the president misses that when we have vibrant employers, when this is a country if you get successful the government doesn't take half your money away from you. i don't think the american people share this envy of the rich that the president and a lot of democrats do. >> hold on. chrystia freelander, from reuters. do you agree the economic system we have in the united states fails to reward hard work and punishes success? >> no, i don't. i agree with stephen about one thing. i think america is a tremendous center for innovation. america is good at fostering that and rewarding it. instagram is a great example of that. i think what is missing, ali. i don't think this is a fault of politicians, this is but structure of the global economy, about the technology revolution, globalization. the hard reality is those middle class jobs, the jobs for people who are not going to become billionaires in 12 months off an ipo, those jobs are vanishing. >> people with basic education, the kind of education that 25 years ago would have guaranteed you a good job for life. that's becoming harder. >> we can all see that in our daily lives. think about it, travel agents, we don't need them anymore because we have the internet. people don't have so many secretarial positions. we saw it recently in the retail sales employment numbers. sales are up but jobs are down. why is it? we're buying online. i think that is a great trend. i believe in technology, all of us love it. >> what do you do with the people. >> we have to be realistic and honest about the fact that we all encounter in our daily lives those good, solid jobs for someone -- yes, chris christie does want to work really hard. they are not there. either you're a generous ipo person and doing fantastically well or struggling to get by at the bottom. i think that makes america and actually all of the western world right now in a really difficult place. our democracies are built on a robust middle class. >> an area that's important, an area where the president is wrong factually, he says over the last 20 or 30 years the middle class has not made gains. it's factually wrong. i was looking at the data. if you look at the middle class, 40th and 60th percentile, between 40 and 70,000 a year, in the 80s and 90s, reagan, there were a lot of jobs. we became a job creation factory around the world with 30 to 40 million jobs. so the formula does work. i do think we've gotten off track in the last five years. i think this economy is prepared for a big expansion that will benefit the middle class but i don't think raising taxes on the wealthy is the way to do it. >> chrystia. >> i disagree. anybody in the middle class will tell you their lives are rough. what particularly worries me are the job numbers. what we have seen in the recovery from the past three recessions is the employment number resets at a lower level. we are seeing higher levels of instructial joblessness in the economy. i don't think this is forever. i think it's lying to people to say it's easy and something hasn't changed. it has changed. as a society people need to respond to that. >> stephen, what would be the counter to the things you're criticizing the obama administration for either doing or suggesting? i think i know where you'd go with this. what would be the thing that does incentivize hard work, reward success and create jobs for this very set of people we are disagreeing about right now, the middle class. >> i think what we need is a lot more saving and investing. a lot more orientation toward spend, spend, spend and not building building blocks of long-term prosperous economy which is investing and saving. i do think it's a mistake to double and triple capital gains, the money injected into the economy that creates new businesses. chrystia, look, i'm not saying the middle class isn't struggling, you're right. this has been a very difficult recession for middle class families. what i'm saying with the right amount of skills and new companies developing, we're seeing a huge renaissance in manufacturing of it's true they don't ploy as many as they used to. call me an optimist. i think we're prepared for a big expansion that's going to benefit all income groups. it can't be this kind of distribution. we have to grow the economy. the key here is competitiveness. i wish everything washington did was oriented with how do we make number one. >> we're going to talk about those things, manufacturing, a key point you brought up. chrystia, stay where you are. the guru behind the republican or economic tax agenda. is he ready to sit down in a room with president obama and work out a deal? >> work with president mitt romney and work with a senate -- >> can you choose northbound in office now. >> he's rumored to be at the top of the vice presidential list. i asked him if he's ready to take up the job next. 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paul ryan the republican chairman of the house committee seems like the architect of the gop's economic agenda. if governor mitt romney has a shortage of potential running mates ryan would likely be at the top. in an election decided by the economy one could understand why romney would choose someone like ryan but would ryan accept if he were asked. >> you have to give that serious consideration and thought. i haven't done that. i'm pretty busy doing my day job. >> people have been talking about it. >> it's not my decision to make, it's somebody's decision to offer it. it's a good deal of time for now. if somebody says consider it, i would. >> you're open to it. >> i don't know. my wife and i would have to set down and think it through and i haven't done any of that. >> could you and the president sit in a room like this or starbucks or a room we provide and hammer out a budget, notwithstanding all the outside concerns. >> i would love to try. the government has given us four budgets and never once attempted to do that. usually you have to get an invitation from the white house to do that. i've always wanted to do that, try. when i first put budgets out, maybe i was naive. i thought when i put this out others will put their plans on the table, then debating plans, then an emerging consensus. we put it out there, nobody followed suit. the president decided not to put out a plan to solve the problem, they waited for us to offer solutions then attacked it for election purposes. i don't see that kind of leadership from this president. if we were going to get this kind of leadership from this president, we would have gotten it by now. >> ultimately you have to deal with this before that. >> i don't think that's right. if the president wanted to have a budget agreement he would have given us a budget that attempted to soflve the problem. harry reid would pass the budget. >> who on the other side would you like to meet with, i'll try to get it done. >> mitt romney and a senate by mitch mcconnell. >> i'm asking you who on the democratic side do you think has the wherewithal. >> it's not about the people, the pear, the ideas, what are the best ideas to save and strengthen this country and problems, medicare and things like that. >> when a smart guy like paul ryan won't name a single democrat he would get in a room with and #out a budget deal it gives a sense of how toxic the tone is now. i have to say, i have a lot of respect for paul ryan, disappointed. on this show we love to go beyond politics. no matter what i asked i could not get beyond it. i could not get him to reach across the aisle and show me room for compromise because that is what we need. forget right or left, it's a shame the u.s. cannot accomplish anything big because we're so divided. >> i agree with that. i think have you to be fair here. i think the press is not enough on the story paul ryan talked about. the fact is the president did present a budget, as you know in february, ali. it was brought to vote in the house and senate. it got zero votes in the house, zero votes in the senate. even nancy pelosi wouldn't vote for that budget. in the meantime the senate still run by democrats, harry reid, it's true, for three years there's been no senate budget. i talk to paul ryan a lot. i really admire the guy. i think he has a fair point to say, look, we put our cards on the table. we've told the american people what we can't to do with medicare, medicare, social security, tax code. when you ask paul ryan, are you willing to negotiate, negotiate with what? >> everybody points to the debt showdown last summer. we were all involved in covering it. we wonder how close president obama and house speaker john boehner came to achieving a grand bargain. to stephen's point, what blame does president obama hold for doing this, presenting budgets and ideas he knows are nonstarters and paul ryan presenting deals we know are nonstarters. everybody has good points, as stephen says, and they are all nonstarters. what do we do about this? >> first americans need to have an election. i don't think this is a technocratic issue at the moment. i don't think you had a group of economists in a room they could come up with an idea that would suit everybody. i think it's a profound question. big governments with welfare states. let's talk about german or sweden or canada that have generous welfare states and a balanced fiscally disciplined rating. smaller countries balancing budget. it's not a left, right thing. they have different approaches. americans are going to decide, it's simple. pay higher taxes and can you have more government support for the elderly, children, education for infrastructure. if you don't want to pay taxes, you're not going to be able to have that. >> stephen, can we present that stark an argument to the voters and have them actually make that decision so come december or january we can actually start getting deals done? >> yeah, i think so. chrystia is right. she and i are agreeing way too much today. >> very weird, let me tell you. >> i think this election, ali, is going to be a voter referendum on these very issues. i might not have put it quite the way chrystia did. i think the big government more taxes model is the greece model that hasn't worked very well. i think the model of more for enterprise is the hong kong model. we can debate about this. chrystia is exactly right. this is for the voters to decide. whoever wins this election will have an upper hand in terms of what direction do we go in with this budget come january. >> the problem, of course, the options are never as clear as what chrystia described. it's not all the way to the right or all the way to the left. the problem we may have is in november we may end up with a government that is as split as it is today. >> that's true. >> one thing i think is an important point ali, stephen and i agree on, there's a centrist mentality there's a clear solution. there isn't. it's not just about toxic environment and people not being nice to each other. america is genuinely idea logically divided about the kind of country they want to be. i welcome the election. the country needs that dbtd. >> you two have gone weird on me. chrystia, always good to see you. stephen, always good to see you as well. a solution for the housing market that could make underwater mortgages a thing of the past. we'll talk to the most brilliant economist who successfully predicted our rough past and what he says is in store for the future. stay with us. but not how we get there. because in this business, there are no straight lines. only the twists and turns of an unpredictable industry. so the eighty-thousand employees at delta... must anticipate the unexpected. and never let the rules overrule common sense. this is how we tame the unwieldiness of air travel, until it's not just lines you see... it's the world. home protector plus, from liberty mutual insurance, where the costs to both repair your home and replace your possessions are covered. and we don't just cut a check for the depreciated value -- we can actually replace your stuff with an exact or near match. plus, if your home is unfit to live in after an incident, we pay for you to stay somewhere else while it's being repaired. home protector plus, from liberty mutual insurance. because you never know what lies around the corner. to get a free quote, call... visit a local office, or go to libertymutual.com today. liberty mutual insurance. responsibility. what's your policy? take a look at this. in 1987, this housing index was created, case-schiller index, created to track home prices in the top 20 metropolitan areas in the united states. it is still one of the leading economic indicators by economists. in 2000 this book, "irrational exuberance" predicted a bubble in the housing market during the height of the do the-com boom. it turned out to be a prophecy. in 2005 an updated version released predicting another bubble, this time in the housing market. it, too, turned out to be a prophecy. skip ahead to 2012, this book is released arguing the economy will not advance without the creation of new financial products. sounds laughable, sounds like a tough celticly to a public that blames financial sector and innovation for the crisis of 2008. is this book going to turn out to be a prophecy as well. turn to the man behind it, the man behind the case-schiller index, behind pe ratios, this is your new book. i can't believe it. you're telling us we should innovate more in terms of finance. >> i think that should be our response to occupy wall street. they want to fix something, right? >> right. >> okay. if a car is broken you bring in a mechanic. you've got to bring in people who study finance. they are looking kind of bad. people think it's evil. it's not evil. it's something that can be fixed. >> one of the things you recommend, the great thing about the book you have very, very specific ideas, some seem attainable and some seem like pie in the sky. one of them my producer refers to as a prenup for mortgages. tell me what you're talking about. >> right now we have over 11 million americans who are under water on their mortgage. the home price fell. their mortgage balance didn't fall. they are ruined, right? that's a major part of our crisis. they don't spend when they are in that state. that didn't have to happen. we want to give them workouts now but we don't have an arrangement for that. >> a workout is generally seeing if the bank will make some kind of deal to cut the amount of money they are owed. >> ideally, that's what it would be, but it's not happening very much. i think if we want that to happen, the thing to think about now, let's plan for it now for the next time. >> which is why we think about it as a prenup. let's give an example, if a husband and wife go into a bank, they want to buy a house, they go to apply for a mortgage. there's basically an insurance product they would buy that says in the event that -- you finish the sentence. how does it work? >> it might be tied both to home prices and the economy, unemployment rate. if home prices fall we will reduce your mortgage balance automatically to keep you in positive territory. >> in fact, the whole concept of a mortgage was the idea you're taking money from people who have lots of it and don't have enough places to put it and things to do wit and giving it to people who can use it to find a house. we'd all have to be 80 years old to buy a house or most of us if we didn't have the concept of mortgages. >> mortgages are really important. we don't reflect on that. young people when they have kids reflect on that, that's when they want the house but they don't have money saved up yet. finance has improved our life. it used to be before we had mortgages you had to live with your parents. that wasn't good. there were frictions. people found it much better, man and wife and cute little kids in their house, that's the way to live. >> we tend to think the idea that your bank could resell your mortgage and make money, the whole term securitization, if you ask nine out of ten people, explain securitization and ask whether it was the cause of the financial crisis, they would think that it was. once again in your book you're saying securitization may be the answer to some of the problems. >> right. securitization spreads the investment risk over the whole world ultimately. it makes mortgages more available. if people want -- young couples like a cute little house, wherever they want it, or a nice condominium okay, it's all made more available by these kinds of products. >> what went wrong? why did it cause so many of the problems we had? >> i think the real problem was an error in predicting home prices. people thought they could only go up. they constructed instruments that didn't take any account of the possibility of a decline. me colleagues and i working with the chicago mercantile exchange started a futures market for single family home prices in 10 u.s. cities in 2006. it started warning of this debacle soon after we found it. >> right. >> it's not really going well yet. we have to get -- this is democratizing wall street, bringing risk management potential of wall street down to the home that we own. once we do that -- if we had done that, we would have eliminated the primary cause of the crisis. >> would you buy a house right now? >> i would put it this way. if i were this couple with a young child, definitely. i don't know which way home prices -- with our s&p case-shiller, they are still going down. i think they might. i wouldn't buy a home as just a generic investment. >> if you know you're going to live there, have the right credit. >> if you know something about the property you could still invest a home, routinely buying as an investment, i don't think it's a great idea right now. >> stay right there. stick around. no apologyist for wall street but stay with us. 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get most preventive care for free like annual wellness visits, immunizations, and some cancer screenings. and that's when they caught something serious on mine. but we could treat it before it was too late. i'll be around to meet number two! get the screenings you need. learn more at healthcare.gov. you don't want to miss any of this! we all remember gordon gekko's famous line, greed is good, not much has changed between the original movie and the sequel. >> subprimes are crap. the way you keep buying, i've got to worry about my grandchildren's college education. >> we like insurance. >> what's not to like. easy selling crack to kids on the school playground. >> the default is a good idea, execution isn't. >> you know what they say. fools make money, bears make money. pigs, they get slaughtered. >> fools make money. >> bears make money. >> bulls make money, pigs get slaughtered. i was in that movie, by the way. cnn contributor will cain was not not. he's with us. also back with us economist bob sh shiler. you've said the big problem with finance in the country is not finance but that nobody understands finance. a little different from what bob is saying. in the movie the character says it's not the problem with credit default swas but execution. >> that's shia labeouf but the main character is gordon gekko, the concept of credit default swaps are a problem. you've had a fascinating conversation today. you have to ask yourself is the really the villain. if so, what about insurance and credit. they played valuable roles building wealth throughout history. >> because we see efforts to get out of the insurance pool world. i don't like the way insurance treats us, we'll start our own pool. ultimately the same, you have to pool resources, create risk, spread risk. bob, you right this book. you come from a clean perspective, nobody doubts allegiance answers and alliances and you come out and say something counter-intuitive, finance is there. we don't need to interrupt it. we don't need to get rid of it. we need to improve it. >> the thing is, finance is such a powerful technology. there's a theory, a mathmatic. it enables some people to get really rich. that kind of focuses our attention. there's a little anger or enmity at these people. look what's happening around the world now. as more and more countries are getting financially sophisticated, look at the economic growth that's happening. it's a miracle. historians will look back at this time as a turning point in world history 9/11 something disrupts this. >> what is the thing -- have you a number of things in here that are directly related to finance and the improvement of the world, whether it's bonds for sort of social purposes, the new ways of looking at debt. give us one example that our viewers can chew on of something you'd like to change or see changed. >> yeah, one thing, i think government should not rely exclusively on debt for their financing. they should issue something like shares or equity. a share in the gdp. this sounds very strange. never been tried. we could just sell claims on a trillionth of the u.s. gdp. >> the same way they update we get gdp updates. >> happens to be quarterly. >> you would get a return based on what your economy is doing. the idea is getting people more involved in the successes and failures as removed from it and victims. >> what you started with in asking me, people fundamentally don't understand finance much less complicated financial products of if you look at much of the anger toward the finance industry it's focused on as you played in the clip, collateralized debt obligation, things that sound complicated. if you accept that hundreds of years ago farmers could diversify with a derivative on their crops, bad weather, i can't sell my crop. if that's a valuable tool for the economy why isn't it for more complicated things like bonds. if conversifying risk is a valuable thing for the economy -- >> clearly thought about this a lot. why is this not successful? the perpetrators of finance don't care to explain this to people or keep it with the realm of people studied and know these things. why has there not been greater success in explaining to people how these have diversified risk and helped people. >> they are complicated for one reason. the second, they didn't ride into the economy on the wings of ank gels. there are not universal goods on these products as well. i think bob has talked about it. the concept of being able to buy, for example, a credit default swap on a company you own the bond of. that creates the problem, pushing the company toward bankruptcy. you want to avoid moral hazard, buying fire insurance on your neighbor's home. there are legitimate complaints about finance. i don't think people understand enough to know it's not the villain in our economy. >> bob, one of the things you talked about occupy wall street to start off with this. there's a sense finance is not democratic. it flows up to the wealthiest and the smartest perhaps. you talk about democratizing finance. what do you mean by that? >> i wanted to serve the people. when i said that in china, i suddenly realized that sounds communist. i'm not communist. it's universal. we are the people, we control the country, we ought to control the country. all these risk management's have to be broadened. you mentioned insurance on farmers crop or weather insurance. that's something not proliferated as well as it should, especially outside of the u.s. people will die because their harm has a drought. that can be insured. we're moving -- the world bank, for example, is promoting that kind of thing. it's a slow process. people have to get more enlightened about it. >> do exactly what you said, take that to someone in the audience. bob explained financial invasion such as farmers insurance could help people survive in countries like africa. do people understand that? that's a financial innovation that saves lives. >> good discussion, guys. good to see you. bob, thanks for being with us. bob schiller, author of several books, including this one. will cain who was not with me on wall street, too. stick around, we've got a lot for you. lots of the big screen. politically you have to stand behind made in the usa but is that essential to this economy and recovery? we all remember this scene from i love lucy. this isn't the face of american manufacturing anymore. we'll tell you what it really looks like next on "your $$$$$." , there's more whole grain than any other ingredient. that's why it's listed first. get more whole grain than any other ingredient... just look for the white check. in america and how to bring jobs back or create them here in the united states is at the heart of the presidential race between president obama and likely gop nominee governor mitt romney. >> i think we've got to make sure that the next generation of manufacturing takes root not in asia, europe, takes root right here in the united states of america. right here in florida, in detroit, in pittsburgh, in cleveland. >> the way to get jobs to come back is to make this the most attractive place for manufacturing and for other employers. and how do you do that? well, frankly, you look at what the president outlines for his proposals and do the opposite in most cases. >> nowhere in america is manufacturing as important as michigan, a battleground state that could actually decide the next president. paul steinhauser, cnn's political editor. the president bailed out the auto industry, popular in michigan. mitt romney was against the bailout but has deep roots there. his father, george, was the governor of michigan. no republican has won michigan since president r.w. bush did in 1988. talk to me about romney's chances. >> as you mentioned, deep roots there. the bailout which didn't hurt him in the primary, a conservative electorate there, could hurt him in the general election against president obama. what does it look like on the battleground states? pretty good. the most recent poll, epic, a four-point advantage for the president in this poll. that's within the sampling error. pretty much dead even. more optimistic than a year ago whether their state is going the right direction or wrong track. one of the reasons why you're seeing that turnaround, unemployment in michigan down 8.8%, double digit last year, still higher than the national average. you mentioned bailouts. we're talking about that. listen, obama, romney, stark contrast when it comes to the roll of manufacturing of the president, of course, believing the government should have a bigger roll. mitt romney believing best roll for government is hands off. let the private sector deal with things. that will improve the economy. alex. >> unfortunately for mitt romney the auto bailout ended up being more valuable than he would have guessed it would when he was opposing it. paul steinhauser joining us with that. let's bring in will cain, back a contributor. scott puaul, executive director of alliance of manufacturing. less look at the rest of the world with manufacturing, china has established itself as the world's factory floor. they produce everything from clothing to computers. one-third of output, germany has found it's niche in high-end manufacturing. china trying to get out of the low end of manufacturing. the u.s. is a distant third with 13%, 13% of the u.s. economy coming from manufacturing. scott, are policy failures to blame for u.s. losing this race? some would argue it's policy successes. we earn more money. as a result it's not economical to build some of the things other countries build. >> i don't think that's the case, ali. i do think is policy at fault. too much of our economic policy has been focused on the financial sector and the latest, greatest thing. like the tech bubble in the '90s, housing bubbles. we've chased bubbles, other economies showed the path to growth and sustainability. we could learn a lot from germany. we shouldn't become germany. listen to this. workers make an average of $48 an hour compared to $32 in the united states. there's heavy trade union involvement. what germany has in place we don't is a system of patient capital, vocational training and reinvestment into that high-end manufacturing so that they can keep manufacturing steady. they have a trade surplus with the rest of the world. they have balanced trade with china. they have high wages. there is a way to do it if you focus economic policy on manufacturing. that's something this country hasn't done since the end of world war ii. we were right and free in the '60s without competition and it caught up with us in a hurry. we've got to get back in the game. i'm glad to see the president talking about it and mitt romney talking about it as well. >> i'm glad to see you reminding the viewers this isn't this administration, the last administration, before them, this is lots of administrations in the united states not having a manufacturing policy. will whether or not you think we should have had one, there's an interesting point you make i think it's fair to show viewers. you say united states isn't falling behind but on jobs. take a look at manufacturing output. in 1990, u.s. manufacturing out put was $2.79 trillion. in 2007 it was $5.25 trillion. it's dipped since then. in 2010 it was $4.83 trillion, the trajectory is higher. we're probably heading back up to the high point. talk to me about this. >> the problem that chart presents for many people like scott, but i'm not suggesting scott made this argument. i can't speak to that. inevitably end up manufacturing and job growth. then you end up arguing for things like protectionist measures, keeping manufacturing here, keeping us in a stagnant level of productivity out put to maintain the number of jobs we have. that's just not the way progress works. another thing. in the short-term u.s. doing pretty good. we're bringing manufacturing back, although it follows cheap labor to china and vietnam, for other reasons a huge source of cheap natural gas and companies moving back to take advantage of that. >> natural gas is cheap, run factories cheaply, oil expensive, doesn't make sense to make things other places and ship back to the united states. the weird energy structure is working in favor of the united states. how do you argue will's point that we're actually manufacturing more with fewer workers? >> there's no doubt we've seen productivity gains, automation gains. we've seen those in every decade. it's really only in the last decade in the 2000s where we saw a third of the manufacturing employment disappear. we basically had the same number of manufacturing jobs in this country in 1999 as we did in 1965. the difference has actually been china. we have an enormous trade deficit with china. it was $290 billion last year. we were not prepared to deal with that. we need to have a game plan on that. here is where i will agree with will, ali. i think manufacturing is in a renaissance right now. we've seen 470,000 jobs added in manufacturing since the beginning of 2010. it played and outsized role in the recovery. it has a spillover effect other types of activity doesn't have. that's reason to keep investing, even if will is right we're not going to see the return to factories with 20,000 people in them, i think we can see slow and steady growth in manufacturing. a good impact on main street as well. >> i think that ill straits my point, not yours. that ill straiustrates the need. when you put policy measures to try to manipulate that, you're trying to play a game you can control job growth, industry focus. china had its time. it's going to head downhill. we'll see. united states might be a beneficiary of that. without any policy help. >> go ahead, scott. >> i would say this to will. unfortunately every country plays this game. they have a manufacturing policy. if we stand alone based on some theory rather than the real world, we're going to get left behind. that is exactly what's happened to manufacturing. that's my point. we've not had a plan to deal with it. we focused eggs in financial services and housing. if we put some of them back in manufacturing we're going to see success. >> great conversation as always with the two of you. the man behind the world's largest aluminum company is betting on the u.s. why alcoa's ceo thinks education is the key to manufacturing industry's success. i love that my daughter's part fish. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. not in this economy. we also have zero free time, and my dad moving in. so we went to fidelity. we looked at our family's goals and some ways to help us get there. they helped me fix my economy, the one in my house. now they're managing my investments for me. and with fidelity, getting back on track was easier than i thought. call or come in today to take control of your personal economy. get one-on-one help from america's retirement leader. so with more than 13 million americans out of work, u.s. companies shouldn't have a hard time finding workers, except take a look at this president in a recent survey from deloitte, 25% of companies identified a shortage of qualified workers as the most significant challenge facing their organizations in the coming years. i recently sat down with alcoa's ceo. he says the u.s. economy is making a come back but that we need to do a better job training our workers for the jobs of the future. >> even from the perspective of a german i'm extremely optimistic and maybe even because of it, i continue to be super optimistic for a whole host of reasons. first of all the plant closures that we've announced on the smelting side, they affect two places here in the u.s., but those ones have been curtailed before, so there's no job effect involved in that. if you look at our job growth that we had worldwide, the -- over the last 12 months, the majority of this was in the u.s. 1,100 jobs we had created in the u.s. why, and where did we bring them? one example i gave you already. i gave you two, but one i spelled out. the auto industry. you know. and the auto industry finally has come to innovation model. so finally we have the u.s. automatic motive forms having an interin motivation. partially driven by legislation. but that's good. consumer demand comes with it. thats drives the right behavior. the other example is the aerospace industry. the aerospace industry is huge in the u.s. it's a fundamental class in the u.s. very very good. and the performance there is fascinating, right? so what i believe here is that you're going to see a lot of positive things happening. one of the critical elements that it needs is a better education of the work force. and i'm not talking -- let me for a second exclude, i mean, the grade phds, engineers, whatever everybody talks about. i'm talking about the common laborer. the person on the shop floor. >> and what's wrong with their education? >> nothing is wrong with their education, but you want to make sure that they keep up and continue to have a good employability. what we have put in place here in the u.s. is we've done, in many of our facilities, we have established corporations where are with the community colleges where we basically offer programs that are compatible with work, so people work and they have time off where they can go to the courses and basically learn something new, get their skill levels up. >> okay i'm packing my bags and heading west to talk to some of the smartest people in the world. i'm going visioneering. i'll explain what that means, next. to manage chronic musculoskeletal pain. one non-narcotic pill a day, every day, can help reduce this pain. tell your doctor right away if your mood worsens, vision neerg can increase these in children, teens, and young adults. cymbalta is not approved for children under 18. people taking maois or thioridazine or with uncontrolled glaucoma should not take cymbalta. taking it with nsaids, aspirin, or blood thinners may increase bleeding risk. severe liver problems, some fatal, were reported. signs include abdominal pain and yellowing skin or eyes. tell your doctor about all your medicines, including those for migraine and while on cymbalta, call right away if you have high fever, 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