Fareed Zakaria

  • Aired:  06/07/11
  •  | Views: 67,600

Fareed Zakaria looks at the effect that technology and globalization have on the American worker. (6:27)

(CHEERS AND APPLAUSE).

>> Jon: WELCOME BACK!

MY GUEST TONIGHT, THE HOST OF

CNN'S "FAREED ZAKARIA G.P.S."

AND EDITOR AT LARGE FOR "TIME"

MAGAZINE AND HIS BOOK HAS BEEN

FULLY REVISED AND UPDATED, THE

NEW EDITION IS CALLED "THE

POST-AMERICAN WORLD RELEASE

2.0."

PLEASE WELCOME BACK TO THE

PROGRAM FAREED ZAKARIA.

(CHEERS AND APPLAUSE)

HOW ARE YOU?

>> I LEAVE YOU ALONE FOR TEN

MINUTES AFTER THE GREEN ROOM AND

YOU DESTROY YOURSELF.

>> Jon: I AM AN IDIOT.

I REALLY AM AN IDIOT.

I'M A BARTENDER.

HOW MANY YEARS HAVE I BAR

TENDED...

>> YOU WERE A BARTENDER.

>> Jon: I'M SMASHING GLASSES

AGAINST THE PODIUM THINKING

"WHAT WILL HAPPEN?

I DON'T KNOW."

(LAUGHTER)

NICE TO SEE YOU.

>> Jon: PLEASURE, THANK YOU

VERY MUCH.

>> Jon: WE GOT SO MUCH GOING

ON IN THE WORLD.

NORMALLY WE TALK FOREIGN POLICY.

I WANT TO TALK OUR ECONOMY IN

RELATION TO THE OUTSIDE WORLD.

HAVE WE FALLEN BEHIND?

ARE WE THE ECONOMIC SUPERPOWER

WE ONCE WERE?

>> WE'RE STILL THE LARGEST

ECONOMY IN THE WORLD BY FAR.

BUT THERE'S A BIG DIFFERENCE

EMERGING RIGHT NOW IN THE

ECONOMY.

IF YOU LOOK AT AMERICAN

CORPORATIONS ARE DOING

FANTASTIC.

THEY HAVE ACCESS TO CHEAP

CAPITAL, THEY CAN FIND CHEAP

LABOR IN VARIOUS PARTS OF THE

WORLD, THEY USE GREAT TECHNOLOGY

SO THE S&P 500 IS GREAT, THE

STOCK MARKET IS UP 85% RIGHT

NOW.

BUT THE AVERAGE AMERICAN

WORKER'S FATE IS IN A VERY

DIFFERENT PLACE.

THEY'RE STUCK IN THE UNITED

STATES.

THEY CAN'T DO THIS GREAT

ARBITRAGE.

THEIR WAGES HAVE BEEN FLAT FOR

TEN YEARS AND...

>> Jon: CAPITAL IS MOBILE BUT

PEOPLE...

>> EXACTLY.

AND SO FOR THEM WHAT YOU HAVE IS

THESE TWIN FORCES OF TECHNOLOGY

WHICH MEANS MACHINE CANS DO

THINGS PEOPLE USED TO.

THERE'S NOW COMPUTER PROGRAMS

THAT CAN DO STUFF LAWYERS USED

TO BE ABLE TO DO.

DISCOVERY AND THINGS LIKE THAT.

MAY NOT BE SUCH A BAD THING.

>> Jon: WHAT CAN LAWYERS DO

THAT COMPUTERS CAN'T DO?

(LAUGHTER).

>> WELL, IF YOU WANTED TO TRY

AND SUE SOMEBODY ABOUT THAT...

>> Jon: NO, I WOULD NOT!

HOW DO YOU SUE SOMEBODY OVER

YOUR... WHO COULD I SNY.

>> JON STEWART?

>> Jon: MY ARM?

I WOULD SUE MY OWN ARM.

WHAT WERE YOU THINKING?

(LAUGHTER).

>> I THINK THERE WAS A DEFECTIVE

MANUFACTURER.

>> Jon: THERE WAS SOMETHING

DEFECTIVE IN THERE, ALL RIGHT.

(LAUGHTER).

>> BUT THE OTHER PART OF IT IS,

OF COURSE, THE FACT THAT YOU CAN

MAKE STUFF ALL OVER THE WORLD.

SO YOU TAKE TECHNOLOGY, YOU TAKE

GLOBALIZATION.

FOR THE AMERICAN WORKER, THIS IS

REALLY INCREDIBLY DIFFICULT AND

I THINK IF YOU LOOK AT WHERE

AMERICAN LABOR IS RIGHT NOW, YOU

HAVE NINE MILLION... SEVEN

MILLION OFFICIALLY UNEMPLOYED

BUT YOU ADD UP ALL THE PEOPLE

WHO STOPPED LOOKING FOR WORK.

YOU ADD UP THE PEOPLE WHO HAVE

PART-TIME JOBS AND THESE

PART-TIME JOBS PAY HALF AS MUCH

AS THE MEDIAN WAGE.

THAT'S 24 MILLION PEOPLE IN

AMERICA WHO ARE UNDER EMPLOYED

OR UNEMPLOYED AND THOSE NUMBERS

AREN'T GETTING BETTER.

IF YOU LOOK AT THE PRESIDENT'S

BUDGET IT ASSUMES WE WILL CREATE

20 MILLION JOBS.

>> Jon: BUT, YOU KNOW, I HAVE

TO SAY, WITH ALL DUE RESPECT TO

THEM, IT'S BEEN A YEAR.

AND WE'VE HEARD ABOUT JOBS THIS

AND JOBS THAT AND WE'VE GOT TO

DO SOMETHING ANT THE ECONOMY.

I CANNOT POINT TO ANYTHING THAT

ANYBODY HAS DONE TO ALLEVIATE

THIS.

AND THE ONLY THING I'M HEARING

RIGHT NOW IS A REPUBLICAN PLAN

THAT WE NEED TO CUT, WE NEED TO

MAKE IT BETTER FOR CORPORATIONS.

BUT IT FEELS TO ME A FOOL'S

ERRAND TO CHASE THE IDEA THAT WE

CAN CREATE CONDITIONS AS

CONDUCIVE FOR CORPORATIONS AS IT

IS IN INDIA AND CHINA.

AMERICANS WILL NOT AND SHOULD

NOT LIVE LIKE THOSE WORKERS.

WE'VE EARNED OUR MIDDLE-CLASS

STATUS AND I DON'T KNOW THAT...

HOW IS IT THAT IF YOU MAKE OUR

COUNTRY MORE CONDUCIVE TO

CORPORATIONS YOU WILL BRING

THOSE BACK?

WE JUST CAN'T COMPETE.

>> WELL, CERTAINLY NOT IN THE

SHORT TERM.

IF YOU CUT BUDGETS IN THE SHORT

TERM YOU'RE LAYING OFF SCHOOL

TEACHERS, YOU'RE LAYING OFF

FIREFIGHTERS, YOU'RE LAYING OFF

POLICEMEN.

AND WHATEVER YOU MAY THINK OF

THE LONG-TERM TRAJECTORY OF

THAT, THAT MAYBE GOVERNMENT

BECOMES LEANER AND MEANER, IN

THE SHORT RUN THAT'S MORE PEOPLE

UNEMPLOYED, FEWER PEOPLE WHO CAN

BUY STUFF, FEWER PEOPLE GOING TO

DINERS, FEWER PEOPLE

CONTRIBUTING TO THE ECONOMY.

I THINK OUR MEASURE SHOULD BE--

AND THIS IS ONE OF THE THINGS I

TALK ABOUT IN THE BOOK-- THE

MEASURE SHOULD BE A COUNTRY LIKE

GERMANY.

GERMANY HAS MANAGED TO MAINTAIN

ITS MANUFACTURING CAPACITY EVEN

THOUGH IT IS ONE OF THE... IT'S

GOT PRETTY HIGH TAXES, A LOT OF

REGULATIONS, UNIONS AND WHY?

BECAUSE THEY VIEW GOVERNMENT IN

A POSITIVE WAY, WHICH IS

GOVERNMENT INVESTS IN

TECHNOLOGY, IN SCIENCE, IN

TECHNICAL INSTITUTES, IN

APPRENTICESHIP PROGRAMS.

IT TRIES TO FIGURE OUT WHAT IT

IS THAT YOU CAN DO POSITIVELY TO

GROW THE ECONOMY.

OF COURSE YOU HAVE TO HAVE A

COMPETITIVE PRIVATE SECTOR

ECONOMY AND YOU'VE GOT TO LOOK

AT REGULATIONS AND YOU'VE GOT TO

LOOK AT ALL THAT.

>> Jon: BUT THAT'S SUGGESTING

WE HAVE NO COHERENT DOMESTIC

MANUFACTURING OR LABOR POLICY IN

THIS COUNTRY.

AND IS THAT... WE DON'T.

>> Jon: (LAUGHS)

>> TO BE FAIR, THE OBAMA

ADMINISTRATION IS TRYING TO DO

SOMETHING ABOUT THAT.

THEY'RE TRYING TO DOUBLE

EXPORTS, BUT IT'S VERY DIFFICULT

TO TALK ABOUT WHAT GOVERNMENT

CAN DO POSITIVELY.

THERE'S ALL KINDS OF STUFF THAT

WE KNOW THAT GOVERNMENT SCREWS

UP AND DOESN'T DO RIGHT AND

THAT'S FINE AND WE SHOULD... YOU

KNOW, WE SHOULD TRY AND MAKE IT

A MORE REGULATORY FRIENDLY AND

TAX FRIENDLY ENVIRONMENT.

BUT THERE'S ALSO STUFF THAT IF

YOU THINK ABOUT WHAT MADE

SILICON VALLEY, SILICON VALLEY

WAS MADE BY A GREAT STATE

EDUCATION SYSTEM.

THESE AMAZING,CAL CAMPUSES, A

GREAT EDUCATION SYSTEM.

IT WAS MADE BY DEPARTMENT DEMAND

FOR ENGINEERS.

LOCKHEED, ALL THESE COMPANIES.

THE U.S. GOVERNMENT USED TO BUY

EVERY COMPUTER CHIP THAT WAS

MANUFACTURED.

>> Jon: SO YOU'RE SAYING THE

KEY IS EDUCATION AND WAR.

(LAUGHTER)

>> WELL, WAR HAS...

>> Jon: IF WE CAN JUST KEEP

STARTING WORLD WARS AND DOUBLING

BACK DOWN ON G.I. BILLS WE CAN

HAVE THIS THING WORKED OUT.

>> WORLD WARS ARE REALLY USEFUL.

SMALL WARS DON'T HELP AT ALL.

>> Jon: (LAUGHS).

(LAUGHTER).

>> AND THEN YOU HAVE TO DESTROY

THE OTHER COMPETITORS.

THAT WAS THE GREAT THING ABOUT

WORLD WAR II.

YOU FLATTEN THE OTHER

COMPETITORS, YOU'RE LEFT ON

TOP...

(AUDIENCE REACTS)

THIS IS THE STEWART/ZAKARIA

PLAN.

>> Jon: I DON'T KNOW WHY NO

ONE'S RUNNING ON THAT PLATFORM.

(LAUGHTER)

AMERICA!

WE'LL FLATTEN YOU.

(LAUGHTER).

>> AND THEN WE'LL SELL TO YOU.

>> Jon: THEN WE'LL SELL YOU

WHAT YOU NEED TO REBUILD.

A PERFECT SYSTEM.

ALWAYS GOOD TO SEE YOU.

"THE POST-AMERICAN WORLD RELEASE

2.0."

LIKE HOW I THREW THAT IN THERE?

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