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nevada and florida the unemployment rate is higher than the national average. in nevada and colorado, the unemployment rate is still above what it was when president obama stepped into the white house. but in the rest of the battleground states it's pretty interesting. the jobs markets are improving. they have been improving since when the president became -- went into office. still improving, iowa, virginia, nevada, all have pretty low unemployment levels. 5 pst in iowa, new hampshire 5%, virginia 5.6% and in ohio with 18 electoral votes, much more than iowa and virginia combined, significant drop in the unemployment rate 7.4% over the past year. >> 48th in the nation to much higher than that. it's a very interesting story, ohio, big manufacturing auto, this is one of those places where mitt romney had said don't have that auto bail jautout. nobody wins out ohio and mitt romney will have an uphill batter there. >> this is showing you population centers. some of these areas where president did well last time. this is the poll thalg we have right now. the most recent polling for this presidential race, you have obama with 48%, romney with 42%. even though the unemployment rate has been coming down there, auto bailout issue, very, very critical, you still have president obama with 6 point lead over mitt romney. no question, no question, even though the unemployment rate is improving in ohio, this is still going to be a very important swing state for the president. >> thank you, christine. we're joined now be john casic of ohio, taking time between presentation so he's come out in the hall and just to talk to us. governor, thanks for being with us. listen, i don't see how voters in ohio, many of whom who are auto workers, union members, manufacturing workers alienated by governor romney's opposition to auto bailout are going to hand your state to governor romney. without ohio, most people don't get to the white house. why am i wrong about this? >> well, i think ohio is going to be very close. there isn't any question about it. but the fact of the matter is, ohio has grown now about 73,000 jobs. we're really pleased with the growth with the auto industry. but it's been about net of 700 jobs grown out of 7,000. so i think what's happening in our state is people are somewhat more optimistic. our credit ratings are up. we have surpluses in our budget. jobs are being created. i think the issue is going to be who can make the best argument to help ohio to continue to be successful and get the win at our back. i think that's what americans are worried about. i'm worried that we have the wind in our face because of uncertainty in our state that's being brought to us from washington. >> well, i tell you, this fortune magazine article republican governor with an obama like jobs plan. you believe that there's a roll for government to play in creating jobs and overcoming these head winds. >> well, look, i mean, don't read too much into things that are written in other publications. let me tell you this, we offer incentives to companies when it's appropriate. but that's not what gets companies into ohio. what really is the bottom line is we have now created an atmosphere with lower taxes, balanced budgets, streamlined regulations. that's what businesses are looking for. they're looking to go somewhere where they can have confidence they can have certainty. that's what's happened in ohio by cutting taxes, balancing budgets, running surpluses, streamlining regulations. that's what's really helped us. at times it's necessary for us to offer some incentives. but every state in america does that. that's not why we're the number one growing state in the midwest and number six in the country coming from 48, we have followed a policy of making government work better, of lowering those taxes, balancing those budget and getting our credit upgraded so businesses feel more comfort nbl ohio. >> what's your sense on the manufacturing front because it continues to be a big problem. what has to has been high oil prices, wage control os, is it the kind of thing that happened in wisconsin? what has to happen? >> no. i mean -- well, first of 5u8, we have to get a certainty out of washington. you can't be turning around telling people you're going to raise their taxes. we have this huge amount of debt. it's created uncertainty in everything. but, you know, look, we embrace manufacturing in ohio, not just auto manufacturing, although we love it, we also embrace the make manager of pipes and pumps for the energy industry, unmanned vehicles, ability to build them. it's diversified. that's the key to it. we can use our location. 600 miles within 60% of the country and place where businesses can be safe. all in costs, ohio starting to win. we're starting to get some companies come from other countries and some companies come from other countries and invest in our state. >> you're not as troubled by the unemployment numbers as some republicans would like everybody to be. >> oh, i'm very upset about the unemployment numbers because it means that people are out of work. look, our unemployment has come down. we've created these 73,000 jobs. whatever it is. but 73,000 like 300, but that's not good enough for us. our unemployment is way too high. we need to continue to bring it down because when people are out of work, it really hurts families. so i'm extremely unhappy with where the unemployment. we're make problem. now we're number 6 from 48. there's reason to feel good about that. but not to feel great because there's still too many families out of work in our state and in our country. >> governor, i know you have to run to another commitment. thanks for taking time to talk to us. governor john casic. >> i'm glad to talk to you. thank you. >> coming up next, just talking about it big win for wisconsin governor scott walker in the state's recall vote. but who was the biggest loser in this thing? we'll take a look. later, it doesn't matter where you live, still paying for new york's latest and most expensive subway line to be built. what's goes into building a subway. i went underground. we'll find out. 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>> well, really like to say he survived the recall. remember, this is the recall process. he's the only third governor to go through this humiliating process. after spending over 50 million dollars, after having his favorability ratings permanently lowered, after having the worst job creation record in the whole united states, he's dead last. he gets the serve out the next couple years of his term. he would have been better off trying to work with us and create jobs rather than destroy everything as he did. if you looked at governor casic who was on a little while ago with you, after he stopped making war on his employees, the state started to move ahead a little bit. soy think that's what governor walker should now do, look at ways to work with us to create jobs rather than making war on his employees. >> sounds reasonable. let's bring in steven moore, you say that governor walker's victory is very clearly a black eye for unions who were supposed to mobilize all these voters to come out and see him defeated. what do you think about richard says? should he now move on and actually try and deal with them. do you think these unions need to keep going? >> this was a tough week for the unions. not only did they lose in wisconsin, richard is right, republicans spent a lot of money to try to make sure that walker survived by the unions spent a bunch of money too. also, don't leave out california and san diego and san jose t voters voted for cutting back on some of these pensions because the pension issues one of the big issues around the country in terms of the fngss of state and local governments. i think this was a tough week for unions and i would say to richard, sir, you know there's an old saying when you shoot at the kitty, you better kill him. now scott walker survived lot of other governors, hey, you can take on the public unions and live to tell about it. >> you know, ally, it's sort of amazing. when we beat john kasich in ohio with 62% of the public vote, nobody said that was the end of the republican party. what we said now now john kasich, after we beat him, he ought to come together and work wus to create jobs. we sent these politicians to go into office to create jobs. scott walker actually deceived the american public in wisconsin when he first said that this attack on workers was about an economic reform because it wasn't. those workers when they saw a real problem, every single time have been willing to pitch in, to give something back when it's a real problem. when it isn't a real problem, we will fight to have fair treatment, just like every other american. that's the american way. >> can i say this? i think this is important. i don't think this is just about unions. i think it's about public sector unions. the truth is as you know, richard, the public sector unions all the growth of the union is they're getting benefits and retirement and health care much higher than private sector unions get and ordinary americans get. i think one of the reasons scott walker survived is for a lot of wisconsin people, it was an issue of fairness. why should public employee unions outsized benefits much higher than a plumber or someone else living next door to them that's also in the middle class. >> just to be clear here, before you answer, richard, i want to bring our viewers up to speed, unionization more higher perjury of public sector workers are union niezed than. >> i think steven is absolutely wrong about the numbers. public sector workers don't get more. when you look at @ study after study, they get a fair shake. i can't believe, of course he's from the wall street journal, i can't believe when a ceo gets 380 times more than somebody that the average worker, steven's paper himself cheer that and said, that's economic, that's great capitalism, that's fair. it isn't fair. they make too much. he doesn't say a word about that. >> what did he say about that snooechb. >> let me finish ali. what he said is un-american. what it used to be is we would look at somebody who doesn't have a pension and we would say, what do we have to do to get them a pension? steven wants to stand america on its head and say, look, they have a pension, let's take that pension away from them. he doesn't say that about ceo's. he doesn't talk that about the talk -- >> richard? >> you're both in charge. >> you're putting words in my mouth. i think workers should have a pension. it's part of a fair pay package. let you take illinois home state. pension crisis as well. >> you're talking about -- let's talk about illinois for minute a. teachers retiring at the age of a 5 with 100 thousands a year pensions. that's happening in america and it's not affordable and taxpayers saying, wait a minute, we can't afford to give somebody 20 or 30 years with pensions benefits that are sometimes twice as high as what the private sector worker is receiving. >> here is what i say to you, if there's a legitimate problem, we're willing to work to solve the problem. but everybody should solve the proob. you shouldn't be able to have the 1% continue to haul away more money than a dump truck haul away and say to rk woing people, you need to sacrifice for less so they can have more. >> here is something we can latch on to, the fact is that there are many people in america who think it's not a fair deal. you have said, steven, that you think unions contaminate everything they've touched. maybe you're right, maybe you're wrong. what do you do for people who think they're not getting a fair shake and that the 1% are loading it on to a dump truck lots of americans think so. >> i want a rising economy that helps all workers. i don't think that's going to help the average american worker. when it comes to this issue of unions, what i meant when i said they contaminate thing, think of the major steal companies, auto companies the postal service, state and local governments these are all institutions that are going bankrupt. you have to ask the question, are you yoon ons still relevant today? are they still necessary. the private sector, richard, as you know, only about 6 or 7% of workers are in unions. all the growth of unions in is government. >> here is what i know, when ever we had collective bargains the corner stone of a balanced economy. when we had 35 or 40% of the american workers in collective bargaining, the level of inequality of this country was going down. the level of wages for everyone was rising. as collective bargaining went down, inequality went up and the 1% did really great. stars let me give you one example how he overgeneralizes. you ask a u.s. steel worker to compete with a middle that was made in 1809 and mill that was made in 1980 that was part of the world that they were competing in ch h most productive they had. the american work sers the most productive and when we work together with our employers, nobody can beat us. >> he ought to be advocating workers and -- >> richard, you and i agree we need more capital investment for this country so we're creating jobs in usa. >> i think this will be an excellent place to end this discussion. always a pleasure to have both offyou here. richard is the president of aflci orc. steven stay right there. president obama calls it the do nothing congress. senate majority harry reed agrees. >> we can no longer go through this every bill. filibusters on bills that they agree with. it's a waist of time to prevent us from getting things done. >> why can't congress get anything done? anyone who says blame the republicans is going to have to answer to steven moore next on your money. 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[ male announcer ] new icy hot arthritis lotion. powerful encapsulated menthol gets icy to dull pain, hot to relax it away. power past pain. you find yourself asking, what happened to moderates in the united states? where have they all gone? the american public is more polarized than at any point in the last 25 years. that is according to a new research -- new survey by the pew research center. 2012 value survey. more divided along political lines than they are by race, religion or gender. no sur price then that such a fiercely divided electoral elected a congress that pride itself on making no attempts at bipartisan solution. norm is a resident scholar at the conservative institute he describes himself as a sen tryst. his new book is titled it's even worse than it looks, how the american constitutional system collided with the new politics of extremism. steven moore is back with us as well. he calls hymn conservative and i believe he is. norm, it takes two sides to compromise. you say congressional republicans deserve the blame in this highly partisan environment. why? >> that's right. i have to say it's not 100% in that direction, but at this point it's 80/20. if you look at the response of the last three years, we've had basically a congressional party, republican party that's operated as a parliamentary minority uniting against everything including on ideas that they have supported in the past because they're not promoted by the other side. that's different from what we've seen before. it's different from the way democrats reacted when george bush became president. it's ma tast sizing out as the survey shows to the rest of the country. >> steven, watch this exchange between republican speaker of the house john boehner and leslie stall on 60 minutes. this was taped shortly after the 2010 midterm elections. listen. i am not going to compromise on my principles nor am i going to compromise the will of the american people. >> you're saying i want common ground but i'm not going to compromise. i don't understand that. i really don't. >> when you say the word compromise, a lot of americans look up and go, they're going to sell me out. so finding common ground i think makes more sense. >> you're afraid of the word. >> i reject the word. >> wow. steven, you were with me last week when we spoke to you amy gutman, written a book called the spirit of compromise. like norm said, we have list that fabric. you as a conservative -- it doesn't go hand in hand that because you're conservative you don't want to compromise. why is boehner saying that? we've heard frit lots of republican looet leaders. >> with all do respect, i do reject norm's thesis, it takes two to tan goe. if you're going to compromise, both have to do so. the stimulus plan, there was nothing in there, norm, as you know that republicans would want. obama just dropped in their lap. >> 40% were tax cuts thanchts those are not the tax cuts. >> chuck grassley. >> the other one was obama care and the same thing. those were the two issues by that president obama passed tli the house and senate with not one single republican vote and it's the republicans that are being partisan. look, i do think there's room ali in washington for common ground. i think we can get together in fixing this entitlement crisis that everyone knows happened. everybody knows we have to do something about medicare, medicaid, social security. we can get together and get a deal between republicans and democrats on fixing the tax code. >> everybody talks about it. >> it can happen. >> norm, last week when we had amy gutman on she referred to the simpson boles commission. americans were looking for compromise on tackling america's debt and deficit and took some hope in they by partisan simpson boels commission and they faded away when president obama refused to back his own commission's recommendations. other presidents have faced opposition from congress before. how much of this republican/democratic not getting together, not doichk the tan goe thing, how much needs to be reflected on the president is this. >> i think the president made a big mistake in not endorsing simpson boels in the state of union message a year and a half ago. let me mention this, allen simpson himself said that he understands in a way what the president did because as he said, if he supported it they would have opposed it. when the president said very positive things about the gang of six plan in the senate, this shows it's not about conservatism, this is tom koeb ran mike crepe poe, hard carrying conservatives supporting a plan that supported rev nus top aide to the praub leader in the senate wrote to po lit koe, that kills it if if he's for fit, we're against it. the health care that steven mentioned republican al tern toif to plan to the clinton alternative endorsed by chuck grassley. they spent seven months while the administration stood by rk woing on the compromise in the senate and grassley said, i can't compromise unless 70% of the republicans in the senate are for it. the noelgs that bum obama was not willing to compromise it's nonsense. >> there has not been enough compromise. steven, it may take two to tan goe. why can't the republicans step up and say, we need a change in this country. this isn't working the way it's working. you elect us and we'll be all about compromise. that's not the message they're giving. >> that's why this is an important election. by the way, norm, health care bill, 30 more people were put on medicare. is that something republicans wanted to see. explain this to me, how is it if republicans are the problem for gridlock in washington, there have been 40 bills passed through the house which is controlled by the republicans and they're -- you know where they are now, they are in the graveyard of the united states senate. they can't get through it. the democrats run the senate. >> we'll all agree the big stuff is not happening right here. steven, that's the big issue. more is getting done in the senate than in the house. there's no question. >> no more is getting done in the house. >> more compromise. >> the country needs big things done. >> right. >> we don't have a republican platform that says, we'll bring that compromise in. in other words, i think norm is right on that. i think amy gutman is right on that. it's not fashion nabl to run on the basis of i'll compromise. is that fair? >> president obama has been extremely polarizing the republicans are more conservative than they've been in any time in 25 years. it's also true, norm t dcs are more liberal than they have been in 25 years. >> we'll leave it at thatch. we'll bring you back. more of it to have. norm is resident scholar at the american enterprise institute. it's even worse than it looks how the american constitutional collided with the new politics of extremism. steven moore editorial wryer with the complete. what is equal and what is fair? what is pornography, a nobel prize is here to explain. the fear of terror, what is happening to your money right now. you've been following these markets? we'll show you how to take advantage of what's going on while other people are running scared. tdd# 1-800-345-2550 let's talk about fees. tdd# 1-800-345-2550 there are atm fees. tdd# 1-800-345-2550 account service fees. tdd# 1-800-345-2550 and the most dreaded fees of all, hidden fees. tdd# 1-800-345-2550 at charles schwab, you won't pay fees on top of fees. tdd# 1-800-345-2550 no monthly account service fees. tdd# 1-800-345-2550 no hidden fees. tdd# 1-800-345-2550 and we rebate every atm fee. tdd# 1-800-345-2550 so talk to chuck tdd# 1-800-345-2550 because when it comes to talking, there is no fee. taxes, debt, jobs, health care, it's impossible to talk about any of those issues without hearing about fairness and economic growth. something nobel prize winning joseph stig lets talking and writing about for years. now he has a new book called the price of inequality how today's divided society endangers our future. i sat down with him and will cain who is a conservative and insists that inequality isn't the dirty word most americans think it is. >> does the existence of economic inequality kauds economic problems? is it in and of itself a self interest problem for the 1%. what would you sty a critic like me,s with all do respect, you're focusing on the last 30 years and last 30 years alone. when you look at thebredth of human, capitalism almost with a total ignorance to relative wealth raised everyone's wealth absolutely. i'm worried a about those that want to correct wealth. >> let my make it very clear, i'm not arlging that there should be no inequalities. i'm not arguing that we want to completely equal society. what i'm really arguing, my real concern is what has happened in the last 30 years. the last 30 years our inequalities gotten out of bounds. the fraction of the income, the share that goes to upper 1% doubled. the fraction that's gone to the upper one tenth of 1% has tripped. what i've argued, those extremes of inequality do have -- >> what is the right ratio, professor? >> there's no precise ratio. you can tell -- the debate what is pornography. >> i don't want you defining that for me ch i trust you. >> let me bring you an example from the book. you talk about mitt romney. you just use him as kpan pl. of the wealth that he gains, he can't spend nearly the proportion of the wealth he gains even for his various homes and his lifestyle. what you're saying is somehow that degree of inequality deprives those who do spend a larger proportion of their income from spending it and creating greater economic growth. >> the way i would put it we know that those at the top save a lot. >> got it. that's another way of saying it. >> those at the bottom can't. they're living wsh. >> those at the bottom stimulate our economy more? >> those at the bottom are spending money consumption, which is part of the engine of economic growth. what happens is that when you take money from the bottom and you transfer it to the top through predatory lending, growth and inequality, however it originates, what that does is weaken the total demand. that's where there are alternative outcomes, alternative ways of dealing with this problem. one that is often been taken and what one that the u.s. took was the feds said, we need to stimulate the economy, how are they going to do it? they created a bubble. they had lax in regulations, low interest rates, that created a bubble and it worked for a while. but back to the point, it only worked for a whilemy. it created this bubble, the economy seemed to be doing well. of course when the bubble broke, it left in its wake a legacy of debt, a legacy of excess capacity and real estate. something that we are going to take a very long time to recover from. that's the kind of example of the mechanism by which inequality leads to weaker economic performance. >> can you buy that concept in the i don't know what the number is, what the right of equality or inequality is in terms of money, at some point there are people don't use their. >> simple as resource al kwags, we probably wouldn't disagree, education is a large source of whatever inequality we have. we've just thrown money at education, largely to no advance. i would say we have to find a more creative solution simply wealth transfer. >> why don't we take this problem that you've identified with too much money in the 1% and top 1% of 1% and make it easy for them to invest that money through tax cuts or insenttive. >> real problem is the reason they're not investing is nobody will buy their products. you don't go and invest unless you can sell. if you have more -- better foundation, the private sector can build on that foundation. the problem is that we've been underinvesting in that foundation. we have gotten out of balance. now, whoo is that happened? one of the reasons that it's happened goes back to the interaction between economic inequality and political inequality. we're supposed to have a government that reflects one person, one vote. but if you look at the actual outcomes of our political process, it's better described as one dollar, one vote or closer to that. >> that's a great conversation. >> is my nobel prize on the way? >> will, thank you for joining us. >> i'm waiting for my nobel prize. profess will be back in a bit to talk about why here in the united states should be worried about the economic problems in europe. coming up next, if you're terrified of the stock market, don't run. we'll tell you what steps to take to protect your money and what's it like to be on a 210 ton drilling machine underneath the streets of manhattan. for three hours a week, i'm a coach. but when i was diagnosed with prostate cancer... i needed a coach. our doctor was great, but with so many tough decisions i felt lost. unitedhealthcare offered us a specially trained rn who helped us weigh and understand all our options. for me cancer was as scary as a fastball is to some of these kids. but my coach had hit that pitch before. turning data into useful answers. we're 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare. fight both fast with new tums freshers! concentrated relief that goes to work in seconds and freshens breath. new tums freshers. ♪ tum...tum...tum...tum... tums! ♪ [ male announcer ] fast relief, fresh breath, all in a pocket sized pack. you are forgiven if you've been hiding from the markets. fear, uncertainty, in some case bargains. stock prices from the beginning of the year some people say it's low, some people say it's cheap. before you buy any stock, you have to make sure your financial house is no order. bruce is the cohost of million dollar neighborhood on the oprah winfrey network. good to see you. >> great to see you. >> nothing panics you. >> nothing. >> i want to tell our viewers why they shouldn't panic. my rough guess is about half of you out there invest in stocks, probably a lot of them are in 401(k) or i ray or maybe in their pension fund, not directly investing some low double-digit actually have a trading account and buy and sell things. should you or should you not economy where you're wages probably stagnant, could be the only way you can get rich. >> no, no, no, nos. buy a lottery ticket ib ste. for most people, they shouldn't be in individual stocks, because they're going to lose. it's like showing up at the big spender table in vegas, having not spend years playing poker in the basement with your buddies. it's a tough game. now, couple of exceptions, if you have 5%over your portfolio and want to roll the dice have a great time, you have an employer in which stock st part of your comp or working with a professional with a track record, okay. for most people, they shouldn't be playing the individual stock game. >> if you divide your investments into chunks of 5%, 20 of something generally and no one turn is going to really affect you. if you bought facebook and it didn't do well, so what, what's 5% of your portfolio. >> it was kind of fun. it gave you to watch the news in a different way. >> you don't believe people shouldn't be investing, people should be buying individual toks is without those exceptions. >> exactly. exchange traded funds, low feed mutual funds. they should in the market, not in a way they could get a brutal haircut, yours is fan tast tick, you can get a brutal haircut that doesn't look as fantastic as yours. >> there are places that you should invest first. if you have a tax advantage account, obviously 401(k) or your i.r.a. n some cases companies match that, that's free money. >> you sit there in the hr meeting, i think i hear music. something -- you no one pays attention. the company match can make a significant difference in the whole game. here is something you should invest in before that, paying off your credit card debt. >> pay that off and you have -- you don't have to pay that interest. that is a guaranteed return. >> something you've written in a book which stands out to me is that if you're investing because somebody tell yous to invest for retirement, therest no passion in that. if you picture what that money is for, i'm using your words. >> if you picture what your money is for, people talk about retirement. what are you doing? what are you doing? are you traveling? are you golfing? hanging out with your grand kids what are u yo doing? retirement is not a activity. it's a life stage. jazzed about it and motivated so you do the right things. the first step of all of this which people are also oblivious is earning more than you spend. sounds boring mom and apple pie, talk to your viewers directly in their kitchens i would see a significant percentage of them did not have that on track. erping more than you spend. >> this is what you do. this show million neighborhood, give me the 30 seconds. >> 100 families in town, we work with them ten weeks. it was astounding to see the community come together for this challenge, also the places they saw hidden money. money that they didn't know that they had. they made -- some made huge changes. some made small changes, but the progress they had in getting a handle on their money was spectacular. >> bruce actually a lot more fun than he comes across by tell youg not to spend money you don't have and not have credit bills. always a pleasure to you see. she the cohost of the oprah winfrey's network a financial journalist. coming up next, nobel prize winner joseph is back. europe's austerity suicide pack. what happens in europe is going to hit you no matter where you live in the united states. i'm freaking out man, he's on my back about providing for his little girl. hey don't worry, e-trade's got a totally new investing dashboard. everything's on one page. i'm watching you. oh yeah? 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this is big news. by now we know that europe's crisis is america's problem. >> because matters to us because europe is our largest economic trading partner. if there's less demand for our products in places like paris or madr madrid, it could mean less business for manufacturing in places like pittsburgh or milwaukee. >> president talking to america on friday about the concerns that the european crisis slow things down in america. it all comes down the viability of the currency, the yur wroe, comparing to euro to the dollar is like comparing apples to oranges. first and foremost, the united states has a currency that binds more than 310 million people together. not so in europe. while the european union made up 27 states, not all of them use the euro, only 17, the ones in red are in the eurozone. since the 19th century, use of the dollar in the united states grown organically alongside america, the rest of america's economic growth. and it's grown into the world's biggest economy, the world's most important currency. we've had time to address hiccups in the currency over time. by comparison, the euro's been around since 1999, 13 years. in the united states, federal and state financial institutions work in tandem. we have one commercial banking system. one central bank with the power to print money. one treasury with the power to issue bonds. one federal government that collects taxes, and redistributes those taxes according to need. in effect, subsidizing some states. just as important in the united states, we have similar labor rules across 50 states, with the same length of work week, roughly the same benefits, same retirement age. europe, on the other hand, is all over the place. france mandates a 35-hour work week. germans work more. and many ar gu that the greeks don't really work that much. germany cringes at the idea of subsidizing greece, even if it's necessary. and in order for the euro to work as intended, the eu countries would need to work more like american states to a more centralized union. and that is a political decision. not a fangs one. well, europe dragging its heels has very real consequences here in the united states. to break down exactly what's at stake, i want to take you back to my conversation with nobel prize-winning economist, joseph stiglits. >> there is a great deal of worry that the events in europe are going to create a much larger group of poor people in equality. in spain, one out of two young people are unemployed. >> yeah. >> average unemployment rate now, 23%. you know, we're approaching, in spain, something that's akin to what we experienced in the united states in the great depression. >> yeah. >> so they are, because of their wrong economic policies, particularly due to austerity, and the lack of the willingness of the rest of europe to come to their assistance, they are creating inequality. >> you made it clear in your book there is no major economy in history that austerity has worked. >> that's right. there are small economies where government cuts back, and that lowers demand. but something else steps in. and mostly, it's exports. so if you cut back on government spending, but exports fill the gap, then you can keep the economy rolling. >> the reason that doesn't work in greece is because they don't have the ability to cut their currency low enough to make their exports particularly attractive. >> exactly. and one other factor, their trading partners are also being weak. >> right. >> when your neighbors are going into recession, and right now a large part of the world is very weak, it's very hard to export your way to prosperity. >> should we be looking at europe with real fear about what it does for the u.s. economy? >> yes. with globalization, we are one connected system. europe's slow-down affects asia. asia and europe's slowdown will affect us. it affects us through two channels. one will be less able to export. you know, a couple years ago, president obama trying to see where we'll recover, said, we ought to do it through exports. >> right. >> but if everybody else is slowing koun, it's going to be very difficult to our -- for us to export our way to growth. and the second part of the problem is, financial sector. our financial sectors are very interlinked. we saw that in the lehman brother crisis. there's going to be a lot of financial turmoil. whether europe fixes its problems or not, i think no one thinks that it's going to be easy. and there is going to be a lot of turmoil. >> nobel prize-winning economist. i went 100 feet below manhattan on how to make one of the most expensive subway systems in the world. you won't want to miss it. 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[ announcer ] we are insurance. ♪ we are farmers bum-pa-dum, bum-bum-bum-bum ♪ it's been called one of the biggest public works projects in american history. i'm talking about new york's new second avenue subway line. it's a massive project, putting thousands of engineers, urban miners and construction workers to work. as well as some massive pieces of machinery. tell me the process. how does it start? >> drill the holes. then we put the equipment inside. >> we did that by blasting all the way down, about 80, 85 feet. the length was about 800 feet. three football fields. we lowered it in place. a tunnel boring machine. this is one of the monsters that h weighs about 210 pounds. and it's being operated with a trailing gear that is somewhere between 400 to 850 linear feet. that machine starts actually excavating and boring through. it will go from one end to the other. when we're done, we pull the machine back, all right? and we start the second tunnel by moving it over. and then we support it with rings. so it will -- >> metal rings? >> yes, big metal rings. you have to wait for the tunnel to end. then at the tunnel's end you come in and do the cavern sgls what do folks not know about the stuff to do this? >> it's the toy. you've seen this equipment. we have jumbos to drill holes in the rock. and we have loaders to take away the material. we have man lifts so we can get up and reach up to heights. >> those are drill holes. this afternoon we're going to dig those out, load them with explosives and shoot it. all of this has been excavated by drilling and blasting. when we open up an opening that's large, we're going to have to support the rock. the machine is shock-free down the wall to provide initial support before the final liner goes on. >> and then they start doing finishes. there is a

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