What’s the Best Way to Fight Income Inequality?

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March 3 (Bloomberg) -- U.S. News & World Report Editor-In-Chief Mort Zuckerman discusses income inequality on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Great to talk with you again.

Tell me first what motivated you to write this?

Why did you want to tackle the whole issue?

It is one of the major issues facing america.

Jobs as well as been the most important issue in america.

The best family policy in the best fiscal policy in the best social policy we have.

We have had the weakest job market in the last four or five years, longer than that.

Since i have been a grown up.

I will also tell you if you saw the congressional budget office projections, that came out a couple of days ago, they indicated the economy would be growing around the two percent rate.

For the next several years.

And in the next three or four years, the monthly job increases will be limited to 70,000. that is a disaster for america.

We have got to take a different policy.

What i found interesting is you tackled head on those who blame the one percent, who you are a part of, who say they are driving the income inequality and they are the problems here in the economy.

You say, do not blame one percent, point government for not creating the animal spirit that allows the economy to create jobs.

Are you deflecting echoplex no.

I think the basic and historic role of the private sector is to pursue their own interests.

People do not say themselves, i will not take compensation for whatever i am doing.

Because somehow this'll be distributed to another group of people.

What we need and what we have is a situation where we have a lot of jobs that are much more remunerative to the people.

They require education and training and skills.

Those kinds of jobs are there.

The people who have those skills or education are in short supply.

That is why i said we ought to focus on improving education and technological education, graduate education, and supporting education in stem.

That is where the growth of the economy is and that is where it will be for the future.

We do very little to do that.

To give one illustration, to import people who do have these educations, graduate educations, we have 190,000 h-1b visas for this import of talent.

It is now down to 65,000. this is insane.

Every country in the world wants this kind of technological and educational educate -- engineering capacity and return them away.

I hear this often from various people that we need to improve the education system.

Nobody would argue against that.

When you dig down deeper, i need to figure out and find out what exactly do you mean by improving education.

Some would say, look at our education system.

It is just as an equal as we have seen in the economy.

That is a fair point.

What can the government do?

Just as they could increase the number of people with stem education coming in from abroad who would provide a lot of intellectual firepower, you have to provide scholarship programs for these students, so there is government support for their education.

It is exactly what we need.

They are job multipliers.

For every person with that kind of training, we create five more jobs.

It is exactly what the government ought to be doing and exactly what i'm trying to recommend.

On the flipside, you mentioned government has only hindered the animal spirit.

It is not allowing businesses to flourish and create jobs.

What has the government done in your view that has quashed the animal spirit?

Anybody with the rhetoric to this ministration and have seen their policies, where they generally tend to blame a particular part of the community that is frankly the people who are doing well.

It is a political strategy.

To shift the blame off to a group doing well and saying, it is their fault or they are grabbing at all the best economic opportunities in this country.

The economic a -- the economic opportunities are available to everybody with the skills.

If the government will do anything, they have got to enhance the level of skills necessary for a modern economy and that requires a higher level of education.

If we have to provide 2 million scholarships every year for people who take courses in engineering and science and math, where we have a shortage, i would do that.

Instead of spending a lot of money on other programs, i would spend money on education at levels we have not before.

On that front, the government or the president has proposed raising the minimum wage and making that a federal, universal, national increase.

Are you for that?

At this stage the game come i think it would be counterproductive.


This is another way.

If you raise the price of goods, it is only natural people will reduce the purchase of those goods.

It has been the story of our economy forever.

If you translate that to jobs and raise the wages, by definition, you will hire fewer people.

Check it out with business.

They will tell you it is an ordinary course of life.

If you had money going into education at all levels, and create literally millions of scholarships into the higher educational fields, concentrating in those areas, stem education, we have a huge shortage and it increased number of startups.

Start ups, if you look at the statistic, that has been the cause of all of our increase in employment in the last years.

We have a shortage of exactly the talent you need to multiply

This text has been automatically generated. It may not be 100% accurate.


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