Transcripts For ALJAZAM Real Money With Ali Velshi 20140829

Transcripts For ALJAZAM Real Money With Ali Velshi 20140829



tell me what is on your mind by tweeting me or hit me up at facebook. western nations threaten to slap russia with new sanctions today that after the ukrainian president said russian forces have entered ukraine. european leaders met on saturday to discuss more moves on russia. the ukrainians said two russian tank columns shelled a border post today and then crossed into southeastern ukraine. nato claims a thousand troops have moved into the battle zone to help separatist rebels seize a northern town. moscow denies its troops are fighting inside ukraine. but the rebel leadership claims 3,000 volunteers have pored into its ranks since the fighting began in may. the new offensive sames to create a rebel-held corridor between the russian border and the crimean peninsula, which russia annexed in h you' remember. if successful the rebels will cut off the sea and open up another supply line to rebel strong holds in the north in donetsk and luhansk. the rebels say their next move will be to take a port city, 20 miles to the west. though ukrainian government troops there are gearing up for a siege while diplomats gathered in new york to debate th escalating crisis. for more, let's go to ian who joins us by phone from massachusetts. ian everything about this looks like invasion. everything about it looks like war, and yet nobody is using ukrainians. >> yeah, it's in no one's interest to use those terms. re-russian government is trying to maintain plausible terms so they don't get hit with tougher sanctions. the americans are trying their damnist to show sanction policy haven't failed. and the europeans don't want to put more sanctions on. everyone doesn't want to say this is an invasion, but it doesn't pass the giggle test anymore. here we are, the russians and ukrainians are at war, and all sides have badly miscalculated ukrainians. >> we're still in warm weather in cold weather russia has proved in the past its ability to turn off natural gas supplies, and there are things going on in the world where the west needs russia's continued involvement in iran and syria. where does this go? >> well, the first thing you say is the europeans are the ones that get hurt from a market perspective. italy is already back in session. the european rebound has been very anemic. there is a lot of energy and banking that gets done, and tougher sanctions will hurt that. i think the eu as a whole now slips back in to recession because of what is happening between russia and ukraine. in terms of iran, one place the russians have played a very significant role, we have seen the russian government show greater willingness in providing the iranians with some senttives that might look like leverage or easy sanctions breaking behavior if a deal doesn't get cut. i think now the deterioration makes it less likely that we get a comprehensive nuclear settlement. >> let's talk about ukraine. you said nobody has misjudged this like the ukrainians. ukraine matters much more to russian than it does to the west. and but for those gas pipelines that go through ukraine, they are not part of nato, it is not part of the eu, so tell me how this all plays out and why ukraine has misjudged this. >> all of the efforts that the americans and europeans put against russia has not done much for ukraine. there has been no direct military support. it's not like the united states or france is providing weapons for the kurds. no one is prepared to provide lots of weapons to ukraine to fight the russians. the ukrainian president decided he was going to make his efforts to really remove the russian-supported separatists to engage in lieu -- lu hands k, and he clearly believed he was going to get more western support. the russian government has now called ukraine's bluff. they have sent contaitanks and troops across, and the ukrainians are going to lose very badly, and the ukrainian president is going to lose a lot of republican from its people. this is a horrible situation for ukraine. >> is there some danger that those other countries keep warning, that russia has greater expansionist tendencies, and they may realize if nobody does anything when they move into ukraine, nobody will do anything when it moves elsewhere. >> i think you are going to see effectively the creation of bases. they won't be permanent bases, because that will break an agreement. and de facto agreement. i think the response of the united states are very different from what you have seen in ukraine. i even think that would be true if you saw let's say russian minorities in latvia or stonia, starting to demonstrate. i think you would see a response with district boots on the occur. >> all right. we'll talk to you more when you are in town. for more on the situation in ukraine. we do to a member of the canadian parliament who is of ukrai ukrainian decent. she is also the author of sale of the century, russia's wild ride from communism to capitalism. she is well-informedthon and joins us from toronto. you heard ian, he said poroshenko and the ukrainians misjudged what would happen if they took on the russians in the east of the country. and while nobody else is calling this a war, it looks like that is what is goes on in eastern ukraine. >> it is a war. it is a russian invasion. the estonian president called it that, and he is absolutely right. i met ian in ukraine when i was a journalist, but i think he's overlooking two things though in this assessment of poroshenko. the first is the domestic pressures he faced. he is the democratically elected president of ukraine, and he is the president of a country, and represents a constituency which was absolutely determined to fight the russian-backed separatists. and i think if we step back and imagine this was happening in our own country, we can understand that national impulse. ukrainians knew absolutely this was not a civil war or a domestic uprising, this was russian-backed separatists, lead and armed by russians, and they felt quite rightly that it was their duty as a country and people to push these people out. i think that is an absolutely understandable and reasonable judgment. poroshenko was absolutely aware that that was the case. so i think in terms of the domestic responsibility that he had, we have to take that into account. and in terms of if poroshenko misjudged the questions because now they are pushing back, i think we have no guarantee that had the ukrainian resistance been less successful, the russians would have quietly gone home. i think ukraine and the rest of the world would be in a much more dangerous position. we saw what happened in crimea, and what happened was an annexation of that territory into russia. had the ukrainians not resisted these russian-backed insurgents, i think you would have a whole swath of eastern and southern ukraine in much more uproar. >> where does this end? >> well, i think we don't know yet, because a lot depends on the behavior of three different actors. a lot depends on what happens in russia, what the ukrainians do, and what the west does. i think what is very clear right now is that putin is absolutely -- has absolutely hostile intentions towards ukraine; that his goal -- and i think this has been the goal since the success of the democratic revolution in february, his goal is the dismembership of ukraine, and he is not going to stop pushing until he meets a force he cannot resist, or until he succeeds in doing this. he sent out on the website, a very worrying statement, in which he refers to the insurgents of novasea, which is the word harking back to the times of katherine the great but really invented in modern times by putin for what is eastern and southern ukraine. that's very worrisome. >> you mentioned the president of estonia mentioning putin's intention. these are all nato members, so while they have very valid fears of russia's expansionist tendencies, they know the minute a foot crosses into their border, that their toe air ships will be launched. in that is a nato covenant. ukraine isn't in that position. ukraine matters less to the west. it matters more to russia. this -- this may be the problem. >> well, it's absolutely a problem for ukraine. i would, though, aly say the reason we're seeing such strong support from the baltics states and poland, is they understand we are seeing a very gross violation of international law. we are seeing for the first time since the second world war in europe, the invasion of one european country by another, and with crimea, the annexation of the territory of one european country. that is a devastating precedent for all of europe. ukraine in particular gave up its nuclear weapons, and in exchange a memorandum was signed in budapest by russia, by great britain, by france, by the united states, guaranteeing ukrai ukraine's territorial integrity. and i think that's why we're seeing russia's other neighbors being very, very anxious. and rightfully so. >> thank you so much. crista will be back with me tonight on "consider this," i'm filling in for antonio mora. coming up i'm taking a closer look at the islamic state group in syria and iraq. i'll show you how dangerously efficient they are. plus the supermarket workers who took on their top bosses of their company have won. ♪ vé >> an eye opening america tonight special report. >> have you ever seen anybody get shot? >> one year later, correspondent christof putzel returns to the streets of chicago. >> i don't like walk out no more... >> why is that? >> a lot of shooting and stuff... >> a community still struggling against violence. >> i did something positive... >> have people lost hope? >> this is a grown man that shot a little kid. >> or have citizens made a difference? >> glad that somebody that's at least standing up and caring about us man... >> america tonight only on aljazeera america >> today another sign of just how vicious the conflict in syria and iraq has become. in a video posted on line these men are reportedly syrian soldiers taken prisoner by fighters from the so-called islamic state. the insurgent group seized an air base, then marched these prisoners that they captured out into the desert in their underwear before shooting them in a mass execution. this is just the latest grizzly footage the group has posted on line. on august 19th the group released an execution video of a american journalist. today president obama told reporters that he is working to forge a broader international strategy to defeat the group, but it's not clear how that strategy will apply to the group's fighters inside syria. men, mronny, and munitions have fuelled the islamic state unprecedented expansion in syria and iraq. but the longer-term goal of creating an actual state are grounded in something more mundane but no less essential than fire power. patricia sabga explains. >> reporter: tens of thousands of fighters. an estimated $2 billion war chest. plundered state-of-the-art, u.s. made military hardware. but beneath that lies the key to the islamic state group's staying power, a simple but highly effective top down bureaucracy. >> there is a corset of functions that the islamic state seeks to put in place as soon as it overruns a district. >> reporter: capitalizing on war-torn syria, and disenfranchised groups in iraq, the islamic state group capitalized on the groups it captures. it also worked to maintain and electricity. >> this institutional infrastructure. not only enables the islamic state group to govern its territory, it prevents a daunting challenge to its enemies. by making the group stronger than any individual groups. it is estimated $1 million a day in locally generated funds leave it poised to fight another day. >> if isis is able to continue to raise the amount of money it has right now, it will be able to lie low and probably come back later like it has in the last three months. jazeera. >> coming up, the islamic state cash flow could deal a serious blow, but it won't be easy to do. the group has never actually relied on foreign donors instead it derives most of its money locally. the fact places it beyond the reach of international banking laws that are designed to thwart cross-border areas. my guest sees parallels with the islamic state and the taliban when it seized power in the 1990s. good to see you. i can't determine whether islamic state's success is due to the abilities and proficiency in self-sufficiency, in the vacuum they seem to operate, or this law less vast part of iraq. what is it? are they really good or just operating in places that are really bad? >> well, you are asking the right question. i think -- obviously it's some of both, but principally, for example when the taliban came into afghanistan, they wanted power at the national level, but they didn't care nearly as much about state administration and governing in the provinces. that's something they learned to do in the last decade. so it's by no means clear that by coming into a power vacuum -- by coming in somewhere where it's very difficult to govern that a group like this is going to fill that vacuum with political power, with state administration, as opposed to brute force. so this is not a forgone conclusion. it is somewhat surprising this is how they are behaving. >> under the taliban, they said the heard had a big chest of money, that was sort of the state treasury. i ask on the other side, they are very sophisticated, they collect tolls, they want to capture dams to control electricity. i mean they seem to have figured this out a little bit more. >> i think that's exactly right. they have a pretty robust strategy for things like tax collection, and for -- you know, projecting their power through dams through service provision, even which is a sort of winning the home front strategy. but i also think an important part of the key here is what they are doing with the judicial system. it's not just a matter of having a monopoly on the use of force when it comes to fighting other heavily armed groups, but it's also that ability to regulate the day-to-day life. one of the most powerful things for example, that people have said about life under the taliban in the '90s, was you could leave your wallet on a wall for three days, and it would still be there, because everyone was so afraid of what would happen to you if you took it. >> you know, when you look at the outside influences, one of the things we worry about with i.s. is because they can generate money, whether it's through kidnappings or ransoms or whatever they do, so the traditional extorting that we think of, that sort of takes their ability away to intervene and stop. so when we put pressure on saudi arabia and other countries that have been behind this, they can also do less about i.s. than they can about other groups. >> that's exactly right. an organization that is making reportedly $3 million a day. they are not going to be easy to stop under any circumstances. but here we have even through our own actions and proxies, there is not a lot of space to be able to actually cut off that flow, and maybe even in the way that markets have responded. no, oil prices have not actually dropped over the years. so, you know, our financial tools to deal with this are unfortunately slim. >> anyone will know because of post 2011, you have to disclose what money is for. these guys are not using the banking systems that we're using to get money. even though they have so many western subscribers. do we have any financial tools? >> certainly we have some. i don't want to imply that there is no foreign money coming in that can be controlled. but you have a globally supported group that is also trying to act like a proper nation state, but then gets a lot of its money through these strange thuggish, mo feeia-like tactics. >> it's a complicated issue. thank you for bringing us information on it. well billion dollars battles exist between ceo's in a world that feels completely foreign to most americans. so why is one ceo invoking sympathy and cheers from those who work for him? ♪ [ cheers ] >> arthur lovingly known as art y t, has been re ireinstated. he received a warm welcome from employees and customers who have fired. >> all i can say it's great to be back together again. [ cheers and applause ] >> many of market basket's employees boycotted and protested the 71 stores when arty t was ousted by his cousin. the reason, he was revered for being good to the employees . he covered the medical bills of one sick employee. one loyal supporter is an office manager in a massachusetts location, in store number 10. she has been there for 30 years. she considers him a member of her family, even remembering him visiting her late husband while he was sick at massachusetts general hospital. she has been seen out there protesting for arthur's return. mary jane thank you for being with us. when we had you on a few weeks ago, you were really upset. and now you are grinning from ear to ear. >> i am. i am so happy right now. >> tell me when you heard about this what did you and your colleagues talk about? news? >> yeah. >> i was home last night. we had some friends over, hanging out. i was watching the news, and i started seeing the good news coming in, and got so excited i could barely sleep last night. >> we live in a country where all we hear from employees is how their employers are unfair to them. i never remember people sitting in and protesting and not going to work so the boss could be reinstated. about? >> it's about having this one man, our leader, boss, and friend, he has done a lot for a lot of people. not just myself and my family. he takes care of all of us. he knows us by name when he comes in the store. >> you have a particular specific reference to him when your late husband was sick and in the hospital. >> i do. >> john was in mass general, very sick with cancer, and arthur showed up one day, held his hand, took me aside, consoled me, cried with me, minutes. >> you had some -- you stayed in your office, but there were some who protested, but there were customers who used to shop at market basket. they went to other stores and they would come and pin their receipts on market basket's stores to show market basket what was happening. >> yeah, it was incredible. >> the company kept threatening to fire those workers? >> yes, they did. it was threat after threat, but we persevered and kept hanging tough. >> you have friends and family who don't work for this company, and they must have been thinking this is a little bit weird? boss. >> yeah, but most of our friends know how market basket is. it's a culture, and a lot of people if they don't work there time. >> i bet there are executives who are wondering how they can be in this position if they are being set aside. what do you think ceo's across this nation should be taking from arthur t? >> i think they should look at the compassion and respect he has for his workers. every person from a bagger to a cashier, to a manager to a supervisor or full-timer, people at the office, the great guys in the warehouse, the truck same. >> mary jane this may be one of the most unusual stories i have covered in my career. but i congratulate you and all of your colleagues for all you have done. >> thank you very mump. well, the guy that got this apartment apartment behind me is paying nearly 2 grand a month. and he is happy. and prom next u.s. companies setting up shop in other countries to dodge taxes. so why might that be good news stay tuned. ♪ >> al jazeera america presents edge of eighteen >> this envelope is my life right now >> ahh...this is nerve racking >> at the crossroads of now and the future... >> i'm ready to get out man... i'm ready to get out of high school >> you find kids making adult decisions >> i'm gonna do whatever needs to be done... >> affecting the rest of their lives >> oh my god... >> i have to get packing >> this is it... >> we gave 15 kids cameras... >> i would like to introduce myself >> i'm more than, just the kid with the tall hair... >> yeah...i'm different >> they took us inside their hopes >> ya boy is breaking off and becoming a millionaire... >> and disappointments... >> you can't just get over something, that sort of scarred you so much >> their dreams... >> if you don't go to college you gone be stuck here... i don't wanna be stuck here... >> and realities... >> i feel so utterly alone >> take a real look at education and the issues facing our children today... >> friday...my homie got shot five times >> just because you're pregnant don't mean your life's ended... >> i don't even want to be gay anymore... just please take this curse off of me... >> are you ready? >> i don't know if it's gonna work out al jazeera america presents academy award winner alex gibney's edge of eighteen >> i'm passionate< and i need you guys to understand it >> i'm so proud of you... >> oh my god! >> i feel like there's no way out >> you need to get your life together... cause you 18 now... edge of eighteen only on al jazeera america >> critics are calling miami-based burger king a corporate benedict arnold. it's renouncing its citizenship you might say and moving its headquarters to canada to avoid taxes in america. and to be sure, the u.s. has the highest corporate tax rate in the developed world at 35%. canada is at 15%. the netherland at 25. but corporations usually have squads of corporate tax attorneys on staff who's soul purpose is to find tax loopholes, so few ever actually pay that 35%. but there is another and possibly better reason why corporations might undergo this inversion, and that is to avoid paying taxes overseas. the u.s. makes a corporation pay tax on all the income they earn no matter where they earn. canada, doesn't require a company to pay taxes on earnings that come from overseas. mary snow has more. >> reporter: as burger king gets ready to move its headquarters to canada, some economists say uncle sam should take note of the way canada and other major industrialized countries tax corporations. they use a territorial tax system. >> it's a system where let's say an american multinational company that has subsidiaries all over the world is only taxed in the united states on the income earned in the united states by its u.s. subsidiaries. any income earned in other countries is not taxed in the united states. >> reporter: that's in contrast to the system used in the u.s. and seven other countries called the worldwide system. so if your headquarters is here and you are a resident in theist, that means you must pay corporate tax on all of the money you earn no matter where it is earned. >> reporter: but the u.s. has a foreign tax credit to avoid a double tax. say you made a $100 profit in great britain and wanted to bring profits back into the u.s. you would first have to pay the 26% british tax rate, and then an additional 9%. critics say because of the system, american companies are reluctant to repatriate their foreign profits. it's estimated $1 trillion is parked overseas, but others say scrapping the system would only create more incentive to keep money out of the us. one thing that is clear is burger king is bringing a system that is in need of reform. >> it's clear that things just can't go on like they are. and hopefully this will lead to thoughtful substantial reform, and not just trying to pitch a little hole when the whole dike is about to break. lowering the tax rate is probably the best way to keep companies from moving overseas, but ultimately inversions respect bad for the economy according to an economic advisor that joins me now from washington. kevin always a pleasure to have you here, thank you so much for being with us. here. >> why do you say these are not bad for america? >> right. so the basic problem is if you want a conceptual model, then there are all of these leftist are pitch forks and torches chasing businessmen and capitalists, and the businessmen have decided we're going to avoid that game all together and invert. in the end it's not the pitch forks, it's the tax rate. the tax rate is so high that u.s. businesses have to be way way better than foreign businesses in order to compete with them. so there are two scenarios, one is that the u.s. business doesn't get the business at all, and the other is that the u.s. business finds away around the foreign tax rate. so if you are a manufacturing in the u.s., then the manufacturer in ireland is paying 25% lower tax rate, then he is going to be able to offer goods for a lower price than you can. but if you can find a partner to convert with, then you can act like you are an irish company and you can complete with the irish company, and you can still compete in the us. and the guy in the u.s. is likely to be able to keep his job. >> so thinking as a conservative economist, are you saying yould rather not have the system fixed so companies don't invert? or would you rather see corporate tax rates in the united states lowered or both? >> you mentioned it, and it was one of the best explanations i have seen on tv, the territorial system. you can switch and keep a high rate, so switching to a territorial system is sound idea. it is so sound that we're one of the only countries that isn't part of the system. the other thing is you can do is reduce the rate. of course as a conservative economist i want to do both. but really you have got to at least switch to territorial, if inversionings. some of the things that the democrats are talking about are punitive measures that make it so if you invert, then they punish you somehow, and that's not going to work at all in the end. you have to fes up that we have the highest tax place, and people are trying to avoid it to stay in business, and if you stop that, then you are going to put them out of business. >> ultimately there are other reasons why people do business in other countries than the tax rate. countries with lower tax rates also have companies that are attractive to americans to merge. in other words nobody is really just merging and leave america for the tax rate, there are reasons why it's better to do places. >> you are right a little bit, but -- but don't forget that, you know, what -- what kind of business you are running is really relevant for this. so if you are a manufacturer, then the story i gave is one that is really quite true. but for burger king, i would imagine there are a lot of sales -- and i know they don't own the individual restaurants, but a lot of the sales are basically to people buying hamburgers in the u.s., and those hamburgers are manufactured in the u.s., and it really is a tax avoidance strategy for them. and it would be hard toer a gu that such a thing would be that big of positive for the labor market. but, again, lower taxes lead to growth and capitol investment and so on, so one would expect after such a merger, that burger king becoming less taxes would become more profitable, so the folks that own franchised would decide to build more so for something like manufacturing it's easy to see how it could create business in the us. for a burger it's harder. >> any chance the guy at the end of mary snow's piece says hey let's just patch this system. what is the chance we're going to get any sort of meaningful tax reform. >> i don't know. do you shave or is that just [ laughter ] >> the president has proposed measures that are very similar to those proposed by dave camp. i know we're in silly season, but the fact is that there has been a recognition on all sides that switching to territory is something that at least a good first step. so i thought the camp bill has a 50/50 percent chance of passing, and everybody is laughing at me for that. but that's not what we're going to hear between now and the election. what we'll here is a bunch of democrats that have pitch forks about the capitalists. >> kevin thank you very much. coming up, how tiny issues. >> we literally from one wall to the other, and that's all you have here? >> uh-huh. my hand not even extended. >> it could cost the neighborhood in a big way. i'll show you how. ♪ >> now available, the new al jazeea america mobile news app. get our exclusive in depth, reporting when you want it. a global perspective wherever you are. the major headlines in context. mashable says... you'll never miss the latest news >> they will continue looking for survivors... >> the potential for energy production is huge... >> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now >> microliving is the new solution being batted around to deal with affordability and overcrowding. these apartments are so small that many fit barely anything except a bed. but they are rushing to build these tiny spaces to meet demand. the race to tiny is designed to get more people in apartments. but it comes at a cost. >> reporter: new york is a big city with thousands of tiny spaces people call home. enough. >> reporter: evan takes pride in his 295 square apartment. he maximizes every inch, and rents the place for $1,800 a month, and is certain he got a good deal when he moved in two years ago. >> i had to get it before anyone basically. >> reporter: as of july the median rent in manhattan is just under $2,500. one bedrooms are going for around $3,300. >> when you live in a place like this, i have a rule, one in one capacity. >> demand for housing designed for one person is so great that new york has lifted zoning restrictions on one project in the city, and is allowing the development to create an entire building composed of 55 micro units. at between 250 and 360 square feet, these are so small they are built miles away in a manhattan factory. when complete, they will be driven in and stacked on top of each other. >> this is one complete unit. we're standing in what is going to be the hallway now. >> reporter: 22 will be set aside for middle and low-net income people. because these units are small, 17 more people will live in the tower than existing regulations would normally allow. >> the building would be incredibly densely populated so they will leave about a half of transfer. >> reporter: while in new york this is an experiment, in see at dozens of units have been around for years. >> i think it's a bad idea, because it forces an upward escalation in land prices. and in urban areas one of the biggest challenges in producing affordable housing is the cost of the land. >> reporter: this woma disagrees. she says because of the cost single people are forced to become roommates. >> it may be cheaper for a single person. the landlord can get a lot more money for that unit than if a family was renting. >> reporter: in san francisco, developers are building tiny apartments for whole families. this unit has two bedrooms, a kitchen, living room, and is less than 630 square feet, but that's nothing compared to the 90 square feet this woman used to rent. >> there is only 23 inches between the bed and the ceiling. >> reporter: she paid $700 a month, until her landlord saw a video of her and realized she was subleted. >> they first offered to double the price and let me stay, and i said sure, and then they changed their mind. >> reporter: changed their find because demand for the super microunit was so great. she was able to save up and buy herself a 600-foot apartment. 40% of the studios in manhattan's new microhousing experiment are earmarked for middle and low-income new yorkers. microapartments are relatively new in some cities, but in seattle they have been around for years. joining us now is city councilmen mike o'brien from seattle. what is the complaint? >> one of the complaints we're hearing is where they are going, and what they look like. so when they are built in higher dense areas, we're not hearing a lot ofment complaints, but when they are hearing in our lower-density neighborhoods, that's when we start to hear concerns about whether that neighborhood can accommodate that much growth. >> in what the services, amenities, just people, what are we talking about? >> exactly. is there enough parking on the streets. are parks and open spaces that adequate, and of course it also means change. difficult. >> you are proposing some regulations for microapartments. what kind of thing? >> right now microhousing came along in 2007, 2008, and it was this innovative housing we hadn't seen before. and we weren't sure how to accommodate this. since the job market has picked up, we're seeing thousands being built, and we want to carve out some expectations about how and where they can be built. so in the higher density areas, we would allow them to occur largely the way they are. and in lower density areas we would require more communication with the neighborhood and work to make sure they fit in with neighborhoods. >> what is the expect? are you -- does this fulfill an unmet need by having more of these microapartments? >> well, it is certainly meeting a need. the market is telling us that. about 3,000 units have been permanent here in seattle, and we're hearing they are full before they open up, and the vacancies are almost nonexistent. it allows people to live in new construction, and you don't want to live in a shared housing environment, for less than a thousand dollars, you can live in one of the more desirable neighborhoods. albeit, they are small, but apparently people are willing to make that tradeoff. >> yes, i guess they are. for young people this is especially attractive. we talk a lot about the middle class on this show, and in many of these microdevelopment apartment there is a stipulation that a certain percentage are set aside for low and middle income people, but some requirements. >> yeah, we have a program about taxes, and this really isn't about our low-income housing. a few developers did use a part of the code that allowed them to get subsidies. we have stopped that, and the legislation i'm producing going forward, would require that they rent to people at 40% of the area median income. >> in new york we define microapartments as being smaller than 400 square feet. obviously in places where properties are generally larger, those numbers are different. how do you define it in seattle? >> we're seeing traditionally between 150 and 250 square feet. the definition would say things like under 400 square feet would be microhousing. >> mike o'brien, what an interesting conversation. thanks for joining us. >> thank you. okay. coming up, i'm going to kick over new york's now infamous poor door, and show you why unlocking a solution to affordable housing is so complicated. my final thoughts are coming up. you are watching "real money." >> every saturday, al jazeera america brings you controversial... >> both parties are owned by the corporations. >> ..entertaining >> it's fun to play with ideas. >> ...thought provoking >> get your damn education. >> ...surprising >> oh, absolutely! >> ...exclusive one-on-one interviews with the most interesting people of our time. >> you're listening because you want to see what's going to happen. >> i want to know what works what do you know works? >> conversations you won't find anywhere else. >> talk to al jazeera. >> only on al jazeera america. >> oh my! >> i'm ali velshi, the news has become this thing where you talk to experts about people, and al jazeera has really tried to talk to people, about their stories. we are not meant to be your first choice for entertainment. we are ment to be your first choice for the news. ♪ rising income inequality has left millions of americans searching for a door. when the door opens up, it opens up access to safe neighborhoods and quality schools, and yet from coast-to-coast a lack of affordable rental housing is standing firmly in the way. well publicized protests in san francisco have pitted long-term residence against the high-tech workers who commute in. they find themselves priced out of their own homes. in new york city the derogatory term poor doors refers to the developments being built in the city. the city compelled those developers to build a certain somebody of units. the catch in some cases is a separate entrance preventing the high-income people to walk through the same lobby as their lower-income neighbors. americans are increasingly separate and very much unequal. but these partnerships that produced entrance ships segregated by economics, also produced rental apartments that cost a fraction of what a family could hope to pay. they enjoy all of the advantages of having millionaire neighborhoods. let's make sure it doesn't come at the expense of slamming the door in the face of low-income families. that's our show for tonight. thanks for joining us. . >> ss the leader of the pro-russian separatists in eastern ukraine agrees to allow trapped ukranian troops to leave. hello, you're with al jazeera, we are live from doha, i'm martine dennis. also to come - a grim milestone, a number of syrian refugees fleeing the civil war reaches 3 million. 43 u.n. peacekeepers are taken hostage by syrian rebels in the golan heights. why

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