Transcripts For LINKTV Democracy Now 20130725

Exposing a u. S. Cruise missile attack in yemen that killed 14 women and 21 children. We will speak with investigative journalist jeremys cahill reports extensively on the. Ttack in his look and film, i said, what do you have to show that Abdulelah Haider shaye is affiliated with al qaeda or a terrorist . They said, we dont have anything to say on that right now. As detroit declares bankruptcy, president obama kicks off a series of speeches about the economy and his plan to rejuvenate the middle class. The stakes could not be higher. From will get reaction richard wolfe, author of, democracy at work a cure for capitalism. This is democracy now , democracynow. Org, the war and peace report. Im amy goodman. President obama has kicked off a series of heavily promoted speeches about the economy in his plan to rejuvenate the u. S. Middle class. Speaking in illinois, he said the economic recovery has been too skewed toward the top one percent. Even though our businesses are creating new jobs, nearly all of the income gains of this last 10 years have continued to flow to the top one percent. Average ceo has gotten a raise of nearly 40 since 2009. The average american earns less than he or she did in 1999. It undermines the essence of america. The idea that if you work hard you can make it here. And that is why reversing these trends has to be washingtons highest priority. We will have more from obama speech later in the broadcast. Rallies were held across the United States and the national day of action to increase the minimum wage. The raise the wage protests were held on the fourth anniversary the last time minimum wage was increased for much of the current rate of seven dollars . 25 an hour. In cities from coast to coast, demonstrators rallied outside major retailers and fast food chains including walmart, target, Dunkin Donuts and papa johns. And washington, d. C. , protesters broke into song and one of several stops a local mcdonalds. You deserve a living wage of at least 13 an hour. Right now as we speak, all across america, people are standing up and stepping out and fighting for you. Raise your wages, mcdonalds, raise your wages at the protest in new york city, fast food workers voted to authorize their third citywide strike for a living wage and the right to unionize without intimidation. They assembled in prospect park. Ofi know youre tired suffering. I dont want to see the next generation suffering. I dont want my kid suffering. I i want them to have a Better Future than i did. If i want that to happen, i need you to stand with me. Wednesdayoll released for the National Employment law project action fund shows 80 of american support raising the hourum wage to 10. 10 an and adjusting it for costof living. 75 listed a minimumwage hike as is a top congressional priority over the next year. The senate has approved a bipartisan measure to temporarily lower student loan rates only die, just a few years. The Interest Rate for stafford loans climbed to 6. 8 earlier this month after congress failed to reach a deal to avoid the hike. Under the new senate measure, students will pay a lower rate through 2015, but see those rates jump as they become attached to financial market. The bill passed by a margin of 81 to 18. Democratic senator Elizabeth Warren was among those to vote in opposition. My colleagues who support this proposal say will lower Interest Rates on loans for this year and thats all that matters. That is the same thing Credit Card Company said when they sold zero interest credit cards and the same thing subprime mortgage lenders said when they sold teaser rate mortgages. In all of these cases, the bill comes due. Nobody disputes the fact that within just a few years, according to our best estimate, students all students will end up paying far higher Interest Rates on their loans than they do right now. Earlier this year, senator war proposed a measure that would have lowered student loan addressed rates to. 75 the same rate given to big banks on government loans. Ae house narrowly rejected proposal to block the National Security agencys bulk collection of data on all phone calls placed in the u. S. The mma to the annual tented on funding bill would have kept nsa phone spying to specific targets, instead of the mass dragnets currently in place. The measure brought together a broad group of republicans and progressive democrats for the first major showdown on government spying since Edward Snowdens leaks were disclosed last month. The vote was closer than did. The Obama Administration deployed a lobbying effort to reject the bill, sending nsa director general Keith Alexander to meet with lawmakers. In a separate vote, the house rejected a measure that would have blocked funding for perpetual war under the 2001 act authorizing the socalled war on terror. The National Security Agency Whistleblower Edward Snowden remains at a moscow airport despite initial reports he had been granted permission to leave. He applied for temporary asylum in russia last week, after the Obama Administration revoked his passport, leaving him unable to travel to latin america where he is received offers of asylum. Russian authorities have granted snowden provisional authorization to enter russia while his bid is reviewed, but hes said to remain at the airport because the actual travel documents havent been delivered. In washington, state department confirmed as secretary of state john kerry telephoned the Russian Foreign minister on wednesday shortly after news broke of spence temporary asylum in russia. He reiterated our belief, which we have stated publicly and privately, that mr. Snowden needs to be returned to the United States where he will face a fair trial. As you all know, yes been accused of three felony accounts. He is not a human rights activist. He is someone who has been accused of leaking classified information and russia still has the ability to do the right thing and facilitate his return. At least 70 people are dead and more than 131 wounded after a train to roman in northern spain. Rescuers struggled to pull bodies from overturned carriages and mangled debris. Thousands of supporters of ousted president Mohamed Morsi are rallying in egypt today, one day before arrival protest called for by the armys top general. The general has asked supporters to demonstrate on friday in support of a military crackdown on what he called violence and potential terrorism. In Muslim Brotherhood kesperson said thehe threats made by military coup [indiscernible] meanwhile in washington, the Obama Administration has announced it is delaying the planned delivery of four f16 fighter jets to the egyptian government. The state Department Spokesperson confirmed the news. We do not believe it would be in the best interest of the u. S. To change all of our assistance to egypt. Were consulting with congress about the way forward. Given the Current Situation in egypt, we dont believe it is appropriate to move forward with the delivery of f16s at this time. The delay marks the Obama Administrations first or action in response to Mohamed Morsis ouster earlier this month. The white house has so far refused to brand his removal a coup, which would trigger an automatic spin suspension of military aid. The u. S. Senate has held its first major hearing on efforts to close the Guantanamo Bay prison since president obamas first year in office. Wednesdays hearing from the subcommittee on the constitution, civil rights, and human rights and days after the pentagon said dozens of prisoners will face parolestyle reviews to determine whether they threaten the United States. Chair, dick durbin, set pentagon figures on the prisons cost. Guantanamo bay detention costs for fiscal year 2012 were 448 million, fiscal year 2013, estimated at 454 million. Do the math. 166 prisoners, 454 million. We are spending 2. 7 million per year for each detainee held at Guantanamo Bay. Prisonersys for the have filed an emergency motion accusing prison authorities of violating religious rights during ramadan. The military reportedly has blocked nightly communal prayers for those refusing to in the link the hunger strike. The new legal filing asked the federal court to grant an injunction ensuring the prisoners religious rights are protected. Several are reportedly being forcefed with nasal tubes. The judge overseeing detroits bankruptcy effort has frozen all legal challenges or the city seeks protection from creditors. Detroits chapter nine bankruptcy filing has set off what could be a prolonged legal battle with thousands of current and former City Employees whose pensions and medical benefits based major cuts. On wednesday, judge roads stated all lawsuits against detroit, emergency manager, and Governor Rick Snyder of michigan during the bankruptcy process. Outside the hearing, detroit firefighter took part in a rally to save the pensions of public workers. Everything Governor Snyder and kevyn orr is doing is illegal and unconstitutional. I came down here to stand up for fromights as city workers, the fire department, im a 29 year veteran. It is absurd theyre trying to take away our pensions. And that was the governors plan from the beginning. More on the detroit bankruptcy after the headlines. At least five samesex couples ever seek marriage licenses in the pennsylvania county, defying the states ban on gay unions. Countys registerrie of wills says he decided to begin granting licenses to gay couples because he wants to be on the right side of history and the law. A lesbian couple got married right away in a ceremony attended by their two young sons. We think it is really important to show our children that we are a family and we are just like their friends who have moms and dads, and it is important for us to stand up for what we believe in and we want to do that because we think that is a great example to set for them. Republican governor mcdonnell of virginia has apologized for the first time over controversial financial ties to prominent donor. Mcdonnell and his family have received over 140,000 dollars from Star Scientific ceo johnny williams. Federal investigators are looking into whether mcdonnell accepted the money in exchange for promoting Star Scientifics products. On tuesday, mcdonnell said he has repaid more than 120,000 dollars to williams, many he says was always intended as a loan. In a statement, mcdonnell says he is candidatearrel Anthony Weiner is refusing calls to abandon his campaign after a meeting he more sexually charged internet messages and pictures well after his resignation from congress in 2011. He stepped down after initially lying to the public about explicit phone and internet contact with six women he met online. On tuesday he appeared with his wife after a gossip website published sexual messages and photos it purely center young woman one year after he left congress. I accept the responsibility for having these conversations with people i have met, with exchanging an appropriate things. I bear the responsibility for that. That is behind me. Were trying to move forward. We recognize it is not going to be easy. We knew the moment we got into this race it wasnt going to be easy, but i believe this is important. The newly surfaced messages show wiener used the pseudonym carlos danger to communicate with the women involved. The revelations has sparked new calls for and about of the race because they show he continued to sending messages long after you previously said he sought help to change his ways. Wiener entered the new york mayoral race in may. While his sexual exploits have dominated talk of his campaign, he is received on the storage engine for comment on the israel areas in aonflict video posted by the website daily beast, wiener told a questioner he stands by his previously held view that Palestinian Land in the west bank is not under military occupation of israel. Do still believe the west bank is not occupied . Yes, i do. It is not occupied by israel . I to tell you, there are disagreements [indiscernible] israel has occupied the west bank since 1967. Wiener was a strong supporter of the Israeli Government while in congress, one sponsoring a measure to bar the palestinian delegation at the united nations. At the time, he infamously stated a delegation should start packing their little Palestinian Terrorist bags. Bob filner isr facing calls to resign amidst a series of accusations he sexually harassed women. The womanconference, said she both endured harassment from filner and witnessed them harassing other women. I saw him place his hands were they did not belong on numerous women. I was placed in a headlock and moved around as a rag doll while he whispered sexual comments in my ear. Mayor filner challenged me to give him one example of how his behavior towards me was improper. Had askedout that he me to work without my underwear on. He had no comeback. Has also comean forward with similar claims. Filner has acknowledged inappropriate Sexual Conduct toward a number of women, but has refused to step down. Two of his top aides have resign since the scandal broke. The San Diego Police have set up a hotline specifically to field complaints from his alleged but comes. Before his election a san diego mayor last year, filner served 20 years as a democratic number of congress. Those are some of the headlines. This is democracy now , democracynow. Org, the war and peace report. Im amy goodman. Prominent Yemeni Journalist was imprisoned for three years for the apparent request of the Obama Administration has been released in the yemeni capital. Abdulelah haider shaye was sentenced in january 2011 to five years in jail on terrorism related charges, following a was condemned by many human rights and press freedom groups. His release tuesday reportedly comes in the form of a president ial pardon that requires them to remain in the capital for two years. This could prevent him from traveling to sites of u. S. Drone strikes in yemen a topic he is previous the reported on. Shaye was first imprisoned in 2010 after he helped expose the u. S. Role in a 2009 Cruise Missile attack on the yemeni. Illage of almalhalah the Yemeni Government initially took credit for the strike, saying it had targeted an al qaeda training camp. It was later revealed through wikileaks cables it was in fact a u. S. Attack. Investigative journalist Jeremy Scahill reports extensively on this attack in his new book and film called, dirty wars the world is a battlefield. He will join us in a moment. First, this is Abdulelah Haider shaye speaking in 2010 he spoke to reporters from inside a caged sell any yemeni court room at his trial, saying he was arrested because he reported on the murders of children and women. When they hit murders of , when i reveal the locations of camps, when they were going to be hit by Cruise Missiles, it was on that day they decided to arrest me. You notice in the court how they have turn all of my journalistic contributions into quotations. Then, this is a place where Young Journalist become successful, he is considered with suspicion. Hisithin a month of sentencing in 2011, then yemeni president saleh announced he was going to pardon a journalist. But saleh a purely changed his mind after a phone call from president obama. According to white house readout, obama expressed concern over the release of shaye. Described the impact of president obamas phone call. Yes, there was a visit by some social figures to the president and they negotiated his release in his pardon. We were all waiting in the for the release memo, which was printed and prepared for the president to sign. And he was to announce the pardon the next day. But the mediators for hasty to announce that pardon that same day, president obama all the yemeni president to express u. S. Concerns over the release of Abdulelah Haider shaye. Was his attorney, talking to Jeremy Scahill. When we come back from break, we will talk to Jeremy Scahill about the release of Abdulelah Haider shaye and be joined by a yemeni activist. Back in a moment. [music break] this is democracy now , democracynow. Org, the war and peace report. Im amy goodman. Prior to the arrest of Abdulelah Haider shaye, he broke a number of important stories about al qaeda in the arabian peninsula, and he did the last an interview with usborn cleric, Anwar Al Awlaki does before it was revealed he was on a cia hit wrlist. His investigative reporting was used by international journalists. This is his friend, the dissident political cartoonist kamal sharaf. He was so interested in. Evealing the truth to reveal the american exploitation. What is al qaeda who supports it . Why is it at war with america . These questions were raised by all. We were only exposed to western media and europe media funded by the west, which depicts only one image of al qaeda. We havent heard other viewpoints. Abdulelah haider shaye brought a different viewpoint. On wednesday, Amnesty International responded to Abdulelah Haider shayes release by calling on the yemeni and u. S. Governments to investigate whether he was arbitrarily aprisoned race on his work as journalist as well as an independent review of the 2009 attack he helped expose. For more were joined by two people who have closely followed shayes case, investigative journalist Jeremy Scahill, the producer and writer of the new film, dirty wars the world is a battlefield. He is the National Security correspondent for the nation magazine. Were also joined in washington, d. C. , by rooz alwazir, a yemeni american activist who cofounded the support yemen media collective based in sanaa, yemen. She helped campaign for Abdulelah Haider shayes release and curly working on a documentary on drone wars. We welcome you both to democracy now rooz alwazir, were you surprised by the news of shayes released this week and can you talk about it significance . Most definitely. We were expecting something to happen. The president had come out in may and had a meeting with you and representatives and told them he promises that shaye will be coming out sometime before ramadan, which is sometime before july. But speaking to many of the lawyers who been working on the case, they have kind we have heard the rhetoric many times before and the president has not really followed up on the timeline he usually says. Twohen we heard the news days ago, it was a great surprise to many of us and a great, exciting surprise. Lets talk about the white houses response to the release of shaye. Jeremy scahill contacted the National Security council for a response. This is what the National Security Council Spokesperson wrote. She wrote Jeremy Scahill, talk about what they have said. We should let that statement set in. The white house is saying theyre disappointed and concerned that a Yemeni Journalist has been released from a yemeni prison three at the white house is signing his conviction that he supposedly was a supporter of al qaeda. In a Kangaroo Court, court condemned i every Major International Media Freedom organization, every Major International Human Rights Organization that it was a total sham trial where he was kept in a cage during the course of his prosecution and was convicted on trumped up charges. So mr. Constitutional law professor president is saying this yemeni court that has been condemned by every International Human Rights Organization in the world is somehow legitimate. Secondly, when i asked the white house and the state department for a shred of evidence that Abdulelah Haider shaye was guilty of anything other than journalism from the critical, they wont provide it. They just say, state secrets. The fact is, Abdulelah Haider shaye is a journalist who did very critical interviews with people like anwar alawlaki. If you go back and read his and your views with awlaki, he is challenging them on the praise of the underwear bomb attack, saying that was an airplane full of civilians, how is that a legitimate target . I would put forth that Abdulelah Haider shaye asked more critical questions of figures within the Al Qaeda Organization in yemen than a Single Member of the caviar Correspondents Association in the United States, those jokers who sit in the front row and pretend to play journalist on television. This is a man who was put in prison because he had the u. S. Cruiseexpose a missile attack that killed three dozen women and children. And the United States has tried to cover it up. They had the Yemeni Government take responsibility for the attack. The reality is, women and children were killed. We know it because, one, Abdulelah Haider shaye went to the scene and took photographs of what were clearly u. S. Cruise missile parts with General Dynamics on them, made in the United States on them, and because of the wikileaks cables showing general David Petraeus but the time was the commander, conspired with the yemeni dictator saleh for the United States to begin bombing yemen in the form of drones and Cruise Missiles and have big Yemeni Government take responsibility for it publicly. When Abdulelah Haider shaye exposed this and it became clear to the world the Obama Administration was starting to bomb yemen, he was of that dead by yemens u. S. Backed Political Security forces he was abducted by the yemens u. S. Backed Political Security forces, and beaten for you and he went straight from his speeding onto the airwaves of al jazeera and said, i was just abducted by yemen Security Forces and they threatened me. Then he was snatched and disappeared for 30 days. He was brought into court set up specifically to prosecute journalist to a committed against u. S. Backed dictatorship and sentenced to five years in the court. My question would be, you want to cosign a dictators arrest of it turn list, beating of a journalist, and conviction and a court that every Human Rights Organization has said was a sham court him a that is the side the white house is on right now, and not freedom of press around the world. Theyre on the side of locking of journalists who have dared to be journalists. I want to go to a clip of your film where you go to speak with residents and survivors of the u. S. Cruise missile attack in 2009. The echoes were everywhere so many of the details repeating themselves. But there was one important difference. The american soldiers went to of seen inks to cover up the killings. Here in almajalah, they left their fingerprints strewn across the desert. Why would they deny something so obvious when anyone who visited the bonsai would see the truth . But maybe that was the point. There was no declared war in yemen. Out here in the middle of the desert, no one was looking. An excerpt from germany scahills dirty wars. That,t i say right after the one local journalist who investigated the reporting, the bombing, had disappeared. I felt there when talking to the survivors is the only americans they will ever meet our Cruise Missiles that took the lives of their family members. Being there with them and listening to this woman who had lost so many members of her family and this tribal leader who was there, he was spared from the attack only because he was running an errand that day and turned back to find his village completely blown up. I talked to tribal leaders who went there within 24 hours of the strike and describe the scene where livestock and humans, the flesh of livestock and humans was melted together. They couldnt determine if it was goats and sheep or human flesh. There were trying to figure out how to bury the dead. We have video that is extremely graphic of infants being pulled from rubble and children. 21 children were killed and 14 women. They claim it was an al qaeda strike that when the Yemeni Parliament went to investigate it, they determined it was a total lie. Why is it the Obama Administration has never had to they killedte why 14 women and 21 children in the first wreck president obama authorized . Cruise missiles are devastating weapon. Buster bombs, which are banned internationally the u. S. Is the only nation that continues to use them. Landmines. Ike flying that is why the tribal leaders were saying they could not tell him was the flesh of animals or humans. Ive seen in yugoslavia and elsewhere the aftermath of these bombs. The white house should have to explain why that strike was in the interest of National Security. You talk about the white house responds that shaye shouldve had to serve out his full term. Talk about president obamas phone call to the dictator saleh. What happened, shaye is convicted in this Kangaroo Court officialry 2011, the Yemen News Agency did a report ofing saleh, the dictator yemen, was going to pardon Abdulelah Haider shaye. You have to understand come at the time there were posters put up throughout the yemeni capital demanding his release. There was massive pressure on the dictatorship to release him. Everyone knew it was a sham and everyone in yemen is about the bombing of almajalah. People knew who he was. Abdulelah haider shaye is in a position where it was becoming politically untenable to hold him. The Yemeni News Agency releases it and that day he gets a phone and from the white house every 2011, he gets a phone call from the white house. Not from some undersecretary of who knows what, but from president obama personally. According to the white houses own readout of that call, president obama expresses concern about reports they were going to release Abdulelah Haider shaye. , theto give you a sense pardon is then ripped up and he remained in prison over the course of the next two years. Their president was visiting the United States, supposedly for medical reasons, but now going to meet with president obama. The white house is clearly very, very irked that Abdulelah Haider shaye has been released. I want to go to the lawyer for one minute to Abdulelah Haider shayes lawyer, who describes how shaye was beaten and psychologically tortured by yemeni Security Forces. Abdulelah haider shaye received many threats from the Security Forces over the phone and when kidnapped the first time, they beat him and interrogated him. I think he was arrested based on request on the american government. At the time of his arrest, they beat him, even though he did not resist them. He was asked by soldiers to come and he went with them. They took him from his house and when theyre in his yard, they beat him cruelly with their guns. One of them bit him in the chest and the score was still there. In prison, he was not physically tortured, but he was psychologically tortured. He was put in a dirty bathroom for five days and told all of his friends and family members had left him, that he was alone, and that no one supported his case. He was tortured by false information. In the first session of the prosecution, i noticed one of Abdulelah Haider shayes teeth was extracted and another one was broken in addition to some scars on his chest. That was after 25 days of detention. Or were a lot of scars on his chest. We have noted that in the prosecution minutes and we requested a referral to a forensic doctor to prove the torture on his body. He was referred, but we have not received a copy of the report and we have not been allowed to make a copy of this case files so far. That was shayes attorney. , you just spoke with him. Can you talk about the conditions of shayes released this week . Right now his health is deteriorating. He has lost a massive amount of weight, but he is in a better position, with his family and meally enjoyed his first with his family and kids. He is hopeful justice will still prevail because as he said, as soon as he was released, he said in a statement to his lawyers, although i am released, im still not a free man. In the eyes of a lyrical and National Security, im still a, therefore, i am not free. He is under two years of house arrest and after that, three years of a travel ban. Speak weret able to able to write or allowed to go anywhere without having security around him at all times. And this is all on the concept him still being linked to al qaeda with no evidence thing supported or presented against he. There is still this idea is aiding the enemy or part of al qaeda with no evidence against him. Although he is part of he is out of jail, he still feels he is imprisoned inside. Go ahead. I think that its really important, although this is a big victory has been released, i think that is something we need to be focusing on, that although he has never been given a proper trial, that due process was completely skipped, that it was completely apolitical decision no legal basis, only outside interference by the Obama Administration. Jeremy, put shayes treatment in the context of how reporters are being dealt with today. Housesout the white position on journalists and whistleblowers. You have the seizure of the Associated Press phone records, you have a record numbers of prosecution indictment under the espionage act, you have what i think amounts to a criminalization of independent reporting. This white house seems intent on having the only information that journalists have access to, leaks, and when it is meant to make the white house look noble and saving the world for peace, freedom, and democracy in any independent reporting or talking to sources that are not official is frowned upon, and at times, prosecuted. There was a recent Court Decision i think is very disturbing, james rison of the New York Times has been ordered to testify against a source of his who was a whistleblower. You have Bradley Mannings trial coming to a conclusion. The charge of him boils down to an assertion that anyone who provides information on the internet that then can be read by terrorists is somehow aiding the enemy. Theyre contending that Bradley Manning and leaking the aided osamaables bin laden directly because Osama Bin Laden was directly to have read some of the reportedly to have read those cables. If that sticks, issue not to speak for journalists, but the public at large. This administration has been utterly shameful in its approach toward a free press, toward whistleblowers, and it fundamentally undermines the notion that we have a free press in a democratic society. The fact they have a Yemeni Journalist jailed and yemeni court and kept him in prison there and are deeply concerned now and upset that he has been released, speaks bynes about this administrations view toward journalists. I want to ask you about a Significant Senate hearing held yesterday addressing the closing of Guantanamo Bay prison for the First Time Since 2000 and when obama made his first and failed concerted push to shutter the prison. One who testified was Frank Gaffney of the center for security policy, which opposes closing guantanamo. The topic of drones came up when he was . Republican senator ted cruz of texas. It has been reported the president under the Obama Administration, approximately 395 people have been killed by drone strikes. Are you aware of any reasonable argument that it is somehow more protective of human rights, more protective of Civil Liberties to fire a missile as someone from a drone and killed them then it would be to detain them and interrogate them, determine illness andor il what intelligence might be derived from the individual . Probably not the best arbiter of what is humane. You have people who spend a lot of their time from this panel dwelling on that. I focus on National Security. But just as a human being, i will tell you i think if you kill people, that typically is less humane than incarcerating them. Letting them starve to death, in my judgment, is less humane than feeding them involuntarily if necessary. That was Frank Gaffney testifying at the Guantanamo Bay prison hearing yesterday. Frank gaffney is a notorious neocon. The fact it was even testifying talks about the seriousness of that hearing. Lets be clear, the republicans during their reign of terror were murder incorporated. They did not pretend to act like it was some abomination that happened once in a while, torture, they were killing people in massive numbers in iraq and afghanistan and pakistan, all around the world. The fact these guys are trying to say, well, the Obama Administration because he dismantled the Interrogation Program is somehow less humane than we were, is just a sick joke. The fact is obama continued many of the worst policies on the counterterrorism level were built up under the the bush and cheney administration. These republicans would love to be doing exactly what obama is doing. Theyre just attacking him because he is obama. They love his socalled National Security policy. At the end of the day, they are being motivated i more of their motivated by more of their partisan agenda. They quietly love the Obama Administrations policy and counterterrorism policy. We will leave it there and i want to thank you both for being with us, rooz alwazir, thank you for joining us, speaking to us from washington, d. C. Jeremy scahill, producer and writer of the book and documentary, dirty wars the world is a battlefield. He is National Security correspondent for the nation and also a correspondent for democracy now his film is still in theaters around the country and available on demand on your cable network. Back, richard wolf, the economist, joins us on the economy and the bankruptcy of detroit. Stay with us. [music break] this is democracy now , democracynow. Org, the war and peace report. Im amy goodman. Obama kickedsident off a series of heavily promoted speeches about the economy and his plan to rejuvenate the american middle class. He heads to florida today after delivering a major speech wednesday at knox college in his home state of illinois. His policy. Even though our businesses are creating more jobs and broken record profits, nearly all the income gains of the past 10 years have continued to float to the top one percent. The average ceo has gotten a raise of nearly 40 since 2009. The average american earns less than he or she did in 1999. It undermines the very essence of america. The idea that if you work hard you can make it here. And that is why reversing these trends has to be washingtons highest priority. President obama previously spoke at knox college in 2005 when he was first elected as a senator, time when the surrounding area was struggling with factory closures. Wednesday, obama promised to provide further details in coming weeks on how he plans to bring back manufacturing jobs that have gone overseas and vowed to create jobs by investing in the countries in stric infrastructure. During the address, obama did not mention detroit. The city became the largest ever municipality to file for bankruptcy last week, setting off what could be a prolonged legal battle with thousands of current and former City Employees entitled to pensions and medical benefits. Acing an estimated 18 billion in debt, detroit emergency tolder kevyn orr has public unions to brace for significant cuts. Detroits unions have mounted a series of legal challenges in a bid to protect their pensions and benefits. On wednesday, the judge overseeing detroits bankruptcy effort froze all the deal challenges all legal challenges while the city seeks reduction. Oining us now, Richard Wolff he is author of a number of books including most recently, democracy at work a cure for capitalism. It is great to have you back on the show. What about detroit . Detroit is a spectacular failure of our Economic System. It has been in a decline for 30 to 40 years. Everybody knows that. Human dimension, 1950, the population of detroit was 1. 8 million, today it is 700,000. Basically, a decline of decades in which nothing was fundamentally done to reverse the situation and the massive people of detroit were told, get out. And they did. They went to other places hoping to save themselves from the catastrophe of that city. Many going to other cities that have followed detroit down the same path, producing millions of peoples lives destroyed. This is an example of a failed Economic System. You have to judge and Economic System like ours, not only by the good things it can produce which it does but also by the disasters, which it sees, which it worsens, when which it does nothing to reverse. Im afraid president obama bears as much responsibility as the administrations before him federal, state, and local that have been unable to work. The other big point i think is we see here the problem of democracy. Basically, detroit is auto city and been known to be auto city. It went up with the rise of the automobile industry. But it always let the decisions about what happens to a handful of people, major shareholders, board of directors of the big 3 General Motors, chrysler and they made the decisions. They want the praise when the economy is going on, when the Auto Industry is coming. But they also have to have the blame when they make the bad decisions. They did not figure out how to compete with the japanese and the european carmakers. Did not figure out how to have fuelefficient engines in a world of ecological deterioration. And when they followed up those mistakes with the worst one, deciding the way to recoup from the earlier mistakes was to move production out of detroit, to find cheaper workers elsewhere elsewhere in the United States, mexico, and canada and finally in china and the rest of the world. It decimated the city of detroit, depriving them of the fundamental industry that they made a city great. Yet everyone depends on the results. All of the people of detroit and the environment have to live with the results, the decisions they had no participation in. It is extraordinary we even permit something to happen. The saddest of all, nothing is learned. Cleveland, youngstown, ohio these are all similar catastrophes being unfolded in front of our eyes now, in the same inadequate response of a system that can deal with this problem. The federal government bails out banks and corporations. What about detroit . Detroit is the most extreme example. A few years ago in the depths of this Current Crisis in 2008, 2000 9, 2010, the u. S. Government bailed out General Motors and chrysler. It bailed out the two Big Companies in detroit for but it never bailed detroit. You could not have the worst of it, part of the deal that brought together the federal government bailout, the state and the city, was to get the agreement of the united auto workers, the union, for what is called a twotiered wage system. The old workers already in position kept getting their old wage. But all the new workers to be hired would be hired at half the old wage. Instead of 28 to 29 an hour, roughly 14 to 16 an hour, which meant if the Car Companies could come back, detroit couldnt because the return of workers to the Automobile Industries would be workers paid 14 or 15 an hour, and that could see below the poverty wage in the United States. So this is an abomination in which the big corporations are bailed out and the very cities that depend on them are told to fend for themselves. What is the alternative to betting the pensions of workers . What we have now is a classic struggle. On the one hand the creditors by the way, the same big banks that were bailed out before, they want all of their money back. The only way the city could pay off the creditors, even partially, would be by not doing either spending for current the money outking of the pensioners, people who worked a lifetime for the city and now depend on medical care for their livelihood on these pensions. And that is being fought out and the rest of the United States is looking because there are so many other cities in the detroit situation that if the courts decide it is legal to take away the pension that has been promised to and paid for by these workers, if it is legal to take it away, you have that. Call it what everyone, youre taking away the wealth. It is class war. It is redistributing income from the bottom to the top. Take care of the banks with the loans, and screw the mass of workers who paid for it. In a way it is the parallel economic to what your previous guest before me today was talking about in terms of decency, journalism, freedom of speech and all the rest. It is taking the United States to another level of economic inequality. And all the fancy speechmaking of president obama doesnt cover over this catastrophe. There was this famous New York Daily News headline in 1975 after president ford said he would not be bailing out new york that said Something Like emma ford to city, drop dead. Is this obama stopped it moment for detroit . I think so. It is an abandonment. He made a remark a couple of days ago that he would leave the solution to the local problem to the local people react well, he didnt do that when General Motors wanted to be bailed out. He didnt do that when chrysler needed to be bailed out. He didnt tell the banks, go solve the problem by yourself. He was theyre caring for to what bush began the bailout of the big corporations. When it comes to the mass of the people remember, the majority of the population of detroit has left detroit area and we are talking about a minority that is let that is being told, sorry, theres nothing we can do for you except take away the pensions you worked and paid for that we are now going to consider property that is in private, isnt protected, property we can take away from you because we failed as a society to deal with a major Cities Economic challenge. I want to ask you about the raise the wage protest in new york city. Fast food workers authorized the third city strike. This is one of the mcdonalds workers. I have two kids, 6 and 12. Both of my boys graduated tender garden and six great at the same time this year. My general manager told me he was going to give me extra opportunity to make some money. Andalls me on my day off three days after that, every day, a different manager sends me home. At the end of the week i only get a paycheck for 28 hours. I didnt have enough to do anything for my sons britt i could even take them out to their graduation because i do not have any money. A new poll released shows 80 of americans who support raising the minimum wage to 10. 10 an hour and adjusting it to cost for costofliving. 75 listed the minimum wage hike is a top congressional priority over the next year. President obama talked about it in a speech yesterday. For me, it is an amazing thing as a professional economist. To even imagine a society that has the minimum wage at the level that we do, that condemns millions of workers not just those who get minimum wage, but the minimum is a kind of standard that allows other employers to say, ok, i pay more than the minimum wage, i will give you . 50 an hour more or one dollar an hour more, which means that wage into being much lower because minimum is the standard is much lower. It is extraordinary thing. Corporationshuge like mcdonalds, walmart, generating record profits, producing unspeakable wealth for the small number of people who own the bulk of the shares, the argument that there isnt the money to pay these people a decent amount is absurd. It is economically counterintuitive and irrational. All youre doing in the u. S. By paying large numbers of people so little in these jobs is making sure they havent the purchasing power to buy anything, which means other people dont get a job because they cant afford to buy it for it in essence, youre helping the United States become what it always thought it wasnt going pridedthat is, we always ourselves as a nation that we are big middleclass society. The middle class is being destroyed. It is being pushed down enmass by a whole host of thing, not least of which is a minimum wage that low, and the determination of extraordinarily wealthy Global Corporations to keep it that way. I think as long as you let that continue, as long as you let those institutions make those kinds of decisions, we will never get out of this. Richard wolff, thank you for being with us, author of a number of books. Democracy now is looking for feedback from people who appreciate the closed captioning. Email your comments to outreach democracynow. Org or mail them to democracy now p. O. 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