tv Boom Bust RT June 9, 2021 11:30pm-12:01am EDT
semiconductor. straight ahead. we analyze the details of the bill and how it could impact the supply chain in the years to come. plus, a new report shows records of how the wealthiest citizens in the nation have dodged paying taxes for years. later we take a deep dive into these studying figures, plus is the lucrative visits of travel coming back. well would think into the details with the archie corresponded sites after we have a fact show today. so dive right in and we began as the u. s. senate has passed a bill that attempts to crack down on china threat to western technology. the u. s . senate voted 6832 on tuesday to approve a sweeping package of legislation intended to boost the country's ability to compete with china. senate majority leader, chuck schumer says that the bill will help lay the foundation for another century of american leadership. as a percentage of g d. p, we spend less than half as much of the chinese communist party on basic research. we rely on foreign nations to surprise crit supply critical technologies that we
invented like semiconductors, that sunny american optimism, has flickered as well. that world is more competitive now than in any time since the end of the 2nd world war. if we do nothing our days, if the dominant super power may be ending for their part, china says it is jack's to being cast as an imaginary us enemy neighbor, you know, related content in the bill passed by the us, restored back in years, trying to develop on both the mandate in foreign policy, and i don't want to address the china threat, the competition with china. i seriously sure. yours or john affairs on issues really don't want to. hong kong, changing to get into bed. it's got all of cold war, 0 on thinking and runs counter of all light or to go to country to strength and
extra large and cooperation, china, a firm and your opposed to it. and joining us out to break all this new bill down is, or boom bus co hosts bend swan and christy and christy. i want to start with this chinese response. we've been hearing about china as an economic threat to the us for years. what does this bill going to do to protect against that? assuming there is actually something to protect against exactly what is there to protect against exactly what exactly has china even done to the us? what harm has been inflicted? and i mean, aside from selling it some cheap plastic goods of dubious quality, what actual damages have been done, and let's figure out a way to quantify that because there's no takers on trying to quantify that. meanwhile, this bill, this 2400 page bill of the u. s. innovation and competition. pains some very broad strokes of why china is the common enemy in order to get a very deeply polarized view of congress to unite and actually agree on something.
so nothing you nice people more than a common goal or common enemy, and that seems to be the role that china is playing in order for any politician these days to fuel their agenda. and my ad it takes the average reader about 2.8 hours to read $100.00 pages. do you think these guys actually read the 2400 page bill? now the point of this is to grant and expand the government power and government funding to the tune of another 250000000000 dollars and in order to get it passed. and for everybody to pat themselves on the back is package as a turning point in american leadership using this increasing competition with china as justification for a range of domestic and foreign policies to get passed. so let's talk about the increased titian. those are washington's words that music viewing it as competition and china has just been investing in technology for the past decade. i mean, what do you expect them to do? not innovate? it's not their fault, but innovation. tech growth has been growing faster clips than the u. s and the us
now feel threatened. it's just the natural order of things these days to invest in technology and growing factors. if you look at the wording of all the statements and the language use, it sounds like that apparently person intends mis trust. spence of attitude, hidden motors, china and growth space and the u. s. has glo down that's the simple truth of it. so the u. s. is pitying itself against an imaginary competition. ringback china, in order to unlock more funding, i'm sending. and now ben to christy's point, could this actually have been done without including china's name at all? i mean, what specifically is in the bill and what will it pay for? well, it really could not have been done without invoking china's name. and the reason for that is because exactly what chrissy joe said, which is that the u. s. congress is so deeply divided. it can't agree on anything. republicans and democrats have virtually nothing. they can agree on, but one of the few things they can agree on are certain buzzwords like gotta be tough with china. so for instance, in this bill, what it really is about,
it's not about stopping china from doing anything. it doesn't sanction china in any way, doesn't punish china in any way. what it does, it takes us taxpayer dollars at enormous amounts and it lost them to pet projects in the name of competition, which of course, isn't truly competition. so for instance, just a couple of things here, $54000000000.00 and this bill is going to go to increase the us production and supply of semiconductors. now we've talked about this quite a bit on the show. so there is a obvious semi conductor shortage going on around the world. there certainly is a huge semi conductor shortage here in the u. s. $2000000000.00 of those $54000000000.00 will go specifically to creating semiconductors on behalf of automakers in this country. now here's a question for you. if we believe in free market principles, doesn't the market take care of this? if you say there's a massive shortage of semiconductor chips around the world, there's a massive shortage in the u. s. and there's a massive shortage among automakers. there is an opportunity for businesses to start creating those semi conductor chips and selling them the market handles. that
doesn't need u. s. government intervention. so instead, what happens is the u. s. government gets involved and all these companies come with their hands out st. oh, will be the ones to build the chips and you guys are essentially paying for the production, paying for the warehousing paying for the, the facilities in order to create these ships. and then we'll still turn around and sell them. so taxpayers are essentially creating a product for a private company who will and sell that product. it's pet projects. it doesn't do anything to stop china. it's about getting a bunch of pork pushed through in the name of us independence and christy. i want to hit on one more thing because we're almost out of time here, president vive non, when's actually revoke to trump era executive order that sought to ban tick tock and we chat and replaced it with one that calls for a broader review of a number of foreign control applications that could pose a security risk to americans and their data. is this a better solution to dealing with those companies? no, and i really don't see any better way of dealing with
a situation like this. because if the intent of the ultimate intent is to actually ban or restrict access to all these for an app, the us wants to do something like that to take talk and we chat in effect, it'll be doing exactly what it's always been criticizing china of doing by banding google and facebook and given that tech talk and we chat are all technically social media messaging posting platform that would effectively be censorship. and that would paint us as a giant hypocrite in the end boom bus, co host bend swan and christy, i. thank you so much for covering both the stories for us today. you would you be shocked to hear that some of the wealthiest people in america had years where they paid very little or even nothing in federal income tax? no, i really didn't think so. a new report from pro public outlines more than 15 years of data from the i r s, which includes tax returns from 1000 of the richest american. so who are these people and what did they pay when you might heard of this $1.00?
amazon founder jeff bezos, who's currently the countries wealthiest person paid no federal income tax between 20072011. now, much of that was due to the fact that his income was offset by losses in investment . and in the 5 years from 2014 to 2018 basis as wealth grew by nearly $100000000000.00. but he only reported $4200000000.00 in total income and paid just under $1000000000.00 in federal income tax. now the country, 2nd riches man, catholic, the musk, when he saw his wealth grow by nearly $14000000000.00 over that same period of time, reporting just over $1500000.00 in income, and paying only 4 $150000000.00 in taxes, while berkshire hathaway is warren buffet seems to be the biggest offender paying just $23700000.00 in taxes on $125000000.00 and reported income as his wealth grew by $24300000000.00. now i want to know something that is very important here. the growth in wealth is due to assets including equities,
which of course continue to climb over that time period. but if they don't take the cash out, they would course not be subject to income tax on that. there's a lot to discuss here and to do so, let's bring in professor richard wolf is the host of economic update and author of the thickness is the system when capitalism fails to save us from pandemic or itself, professor wolf. i usually start these segments with a y or a how, but the truth is we already know the answer. these billionaires are able to work the tax system by moving money here. they're having teams of law, tax lawyers are accountants to work the system. and those who actually respond to the pro public, there were 3 of them, they maintain, they paid what they out. what do you make of all this? well, i would, i would choral if you brand only your language, they don't just work the system. they run the system, they are the ones who pay in the end. they're subsidiaries for the very politicians
who write the tax laws this way. when they say we abide by the law, they neglect to tell us they're the folks who shape the law. you're all reporter a few minutes ago correctly pointed out the pages of the latest know and nobody really knows lobbyists right in the law. busy what their employers need, they follow the law with their teams account and then on pay the tax. you know, i will pack system as the people of the top to control the game. so they don't pay the vast majority at the bottom. don't. they don't have anything, and that leaves the so called middle paying the bulk of it, which is my, our middle class disappearing because up there's crazy packs, which has nothing to do with any notion of equity or decency, or to actually to pay. it's literally upside down. and professor wolf
excellent analysis, there were buffet you peers to be one of the biggest defenders. here of course, lobby for a change in the tax cody railed about how his secretary paid a higher percentage in taxes that he does spawning the idea of the so called buffet rule, which nothing has come up yet. he's still take advantage of this system. does that make him a hypocrite? why don't you go? yes and no. i've always been appreciative that warren buffett, at least, was somebody who was honest enough to say what he was doing. that he was absurd amount. what i would like to have said is he, there is really making sure that something changes. well, he didn't, you're quite right. he continues to use the system knowing full well what the results are. and if i might brand,
let me add something that people don't understand were coming out of a terrible crash, a terrible pandemic. the government under trump blank by has been spending wild amounts of money because it has to get us. i think it does, out of this mess if you don't tax people to pay for it. and the only ones that we could be that style or the rich who got away with all of this. well, you know what you're going to do, you're going to borrow the money because the masses can't pay. and if you don't tax the wrench you borrow. but here's a joke. you're borrowed from the same rich. they're the only ones who can lend you anyway. so for them instead of paying taxes, they get a chance to loan that money to the government, getting it all back plus interest. and that's worse than we in the equality that permits them the control govern taxes. and so we see this process is re produce
its over time, a professor will i before we go, the treasury department actually said all after the story was released that they've asked authorities to investigate the leak of the tax documents because of the legal to release the type of government, that is what they said, but 1st bar pro public says they obtain the data from an anonymous source and do not actually know the identity of that source. but it kind of feels like to me, the american public needs to see this data, does it not? yes, it should be public data. that's something we all depend on. if our government isn't faxing it or what government can do for us, we are immediately affected. and even a minimum notion of democracy, what we have access to this information, i find the shameful that the treasury department, all the i r s instead of saying, well, let's talk about what all this means is busy on the detail of whom it can punish.
so that the real truth of what our situation is, keeps being kept from us. i really find that extraordinary failure to cope with what these numbers teach us. professor rich was that the straight talk host of economic update. thank you so much for joining us today. thank you and time now for a quick break, but when we come back, as the travel sector heaped up is the world of business travel ready for it. come back r t, corresponding side tab here. we'll go over the details that's going to break. are the number that the close the one of the persian gulf, the wealthiest country is, has spend billions of dollars on state of the art stadiums.
well, look at this, the stadium is really taking shape. you can see the bowl and most of the stands now, when we were here a little bit over a year ago, at the same construction site, it was just a foundation and a few metal structures. so it seems that time why this idea to use shipping containers as building blocks has definitely paid off. i mean, they're easy to assemble and easy to dismantle, just like playing with lego. the for the 1st time in world cup hayes treat, the stadium will be billed from shipping containers. and what's more, it will be completely dismantled after the tournament. me
ah, i welcome back. fresh side there showing that business travelers won't be crowded much longer. and while some companies have learned to do without travel, others are ready to get back on the road just not right away. our t correspondent sites happened or has the full story. sir, brand, business travel is slowly resuming, but like many aspects of professional life. post panoramic one, look anything like the way did back in 2019. and while most companies learn to do
with our travel during depends on mac number, all the zoom calls, others are trying to determine which business trips are essential right now. and now of course, there's no doubt that the pen demik has been devastating for business travel now. before 2020 business travels had grown for 10 consecutive years with an average growth of one of 5 point one percent per year. but if you take a look at right here in 2020 all business travel drop drastically anywhere from 50 to 80 percent and how much business travel returns and when are all urgent questions? not just for airlines, but also airport employees, hotels, restaurants, car rentals, travel agencies and convention centers. now just take a look at the change in employment for really travel related sectors from february 2020. until now, as you can see right now, there are down anywhere from 20 to 50 percent and the job losses have been so
severe about $1000000.00 travel related jobs have been lost since february, including more than 600000 hotel positions and 820000 airline and, and staff related jobs and also caught were thousands of in fields reading from restaurants to aerospace manufacturing, into convention center staff. and now there's a lot of businesses that aren't even included here that we often don't think of them and single business travel. but when a large convention or a business event is happening, the entire city is involved. we're talking about the floor that provides the flowers, the dry cleaner is prepare the linens for the hotels, the coffee shop that serves travelers, you know, whole downtown area, how areas have been revitalized due to meetings and event businesses. and right now they're all struggling and travel industry executives remain split on when,
if ever, pre pandemic levels or business will ever return. now take a look at the direct business travel spending in the us from 2018 to 20 to 2024 forecast. and a pre pen demik 2019 domestic and international business travelers in the us directly spend 334000000000 and 2019 supporting 2500000 jobs. now, in 2020, only about $130000000000.00 were spent. and corporate trips remain 70 percent below pre pandemic levels where big u. s. airlines typically generated half half of their profit from the higher affairs paid by business travelers who actually had count for 150 of their seats before the pandemic. plus, there are some out there predicting that corporate travel will never recover to
$29.00 levels. and that a high percentage of meetings and events will remain virtual. bill gates is a great example. the found are microsoft and he's probably the most high profile proponent of this. with a down beek forecast that 50 percent of business travel will never return front. archie correspondence, sy, a tab in your thank you so for following that story. and as we look at the travel sector, picking back up after being decimated by the cobra, 1000 pandemic, the hope on wall street is that some of the biggest names in travel and leisure was the stock prices returned to where they were before travel was halted in early 2020, joining us now disgusted, joseph qsi. he is a founder and ceo of strategy marketplace. joseph, i want to start with the airline industry as you just heard what i had to say about all of this as travel rules have actually loosened in recent month, we have seen some of the big names like delta american in united tried to upward, but still well off where they were prepared, demick,
the only outlier there is southwest, which is actually returned to pre panoramic level. what do we need to know about the current state of airline stocks? hey, brent. great to be back. but you know, i have actually just got back from a little business trip down in orlando and i have to tell you, you know, it doesn't feel like we are, you know, panoramic levels or that we're still like everything back to normal. i mean, dizzy world seemed like it was pretty busy. we were in the hotel that was pretty packed. you know, we went to restaurants and although they're about 80 percent capacity, there were long lines and weights there. and i am traveling today when i was taking some connections, it looked worse than ever because everything was completely, you know, tied up and people were everywhere. but although it looks that way, you know, there are as many seats are not as many planes a year, which is why some of the traveling hasn't come all the way back to prepare them. now. so last, even though it's, it's stock is that 27 percent year today,
and they just order the worst $737.00 boeing just you know, they're still not hitting the revenue in the profits. they were expected to hit for about 20 percent to their expectations. they were expected to head about 20 to 25 percent down, so they're doing pretty good there. but the airline industry, in general, they're seeing that people are to travel and people are paying for the premium sees, or they're paying for upgrades. and that's going to help some of the margins for a lot of these airline stocks. so when things open up all the way and when we do get some travel back, i do still expect to see some that the airline soft grow and cruise lines. actually, they're in the same boat here, and i apologize about that pun actually facing a tougher road as they were entirely shut down at the height of the pandemic. although now carnival has announced that it was going to start wages out of the u. s. port starting in july. what's the outlook for crew stocks in the near future? you know, it's really funny about carnival is they know they're going to start,
like you said in july, but one of their kelly up to that is that they want everybody on that comes to their crews to provide proof of a vaccine. and if you heard it in the news and texas governor greg abbott, he actually signed a law prohibiting businesses from requiring paperwork or mandating that they show vaccine. so it will be really interesting that if the cruise lines can continue to do this, that could hurt their numbers a little bit because there might be people who are just not willing to show the information or might be people who are fascinated and they simply won't go on a cruise, but a couple other lines are adding extra crew ships to help for a demand. so even though the, the crews industry may not take off and that's a bad time from the airline industry. but they will still continue to see some growth coming in the summer time. and hotels have actually been pretty resilient, more so than cruises and airlines with a lot of those big names like mary at wind them at hilton actually trading at pre panoramic level. quickly got a 32nd. what's,
why has this been the quickest sector to rebound? well, there's been the whole state cation or people that were able to drive to health. and windham, mary out hyatt than hilton. they have the largest chain in the us with a lot of the largest point system. so people are using the reward. they're going to places that are really local. and that's why the hotel changed a bit really been able to weather some of the storm. joseph give the he's the founder and ceo and strategy marketplace. thank you so much for your insight today . hey, brian, thank you. and finally, the next big f t is part of dos history auction site. zora is selling the mean behind crypto currency. don't coin zora says it is the original image of the she but you knew named caboose so which was taken back in february of 2010. now, after the owner posted pictures on her blog years ago, the dog became a me, my con, as in has been shared countless times. now, according to nbc procedure,
going to go towards a number of charities as of the time of broadcast, right? this moment the reserve price for the n f t is about 20 a theory, but we will have to wait to see the final price. and if you are able to bid for this image, this is just one of many featuring the original dose. and that's it for this time you can catch boom bus on demand on portable tv available on smartphones and tablets, through the google play and apple app store by searching portable tv. portable tv can also be downloaded on newer model, samsung, smart tv, as well as roku devices. or you can simply check it out at portable dot tv. what's the next time i'm boom, bust me. oh, in
the moon. ah, do it again. like i said, you guys actually got an uncovered face, men's clothing and shoulder stuck. it's a kind of f can feminism, but it's name is how camino above to the human level. some of the whole model that of us is, was on the job. but you know, the one that gave me she lives in one of the most dangerous and patriarchal provinces of afghanistan cost when she was time on the national level,
i shall do that. i'll get you and i'm glad you got the notes that she does her best to fight for women's rights. i am not able to get those. what i do, i know that she's known him by her nickname king. there was a guy that doesn't really go on the guy that i when i was shot, the wrong one. i'll just don't the room. yes. to see out the thing because the after an engagement equals the trail,
when so many find themselves will depart. we choose to look for common ground the, i don't know, i mean there's some steps in there. we're rescuing the food. it's not like we're not scavenging or or we're rescuing resources that are still good. this is best by march 21st. which is in 2 days, all these potatoes, hall panels, onions, all of these came from waste ground sources. the. this is great for me because i'm always looking for a way to give things away. dr. because the tax laws, you know, definitely do benefit the wealthier people in our society. so that makes sense for them to throw it out right off, rather than give it to somebody who could use it. and then that person is not going
to buy it. the russian president vladimir putin, rails against nato expansion and the mistreatment of russians in ukraine. in a comprehensive interview ahead of its summit with joe biden, european parliament gives final approval for coven digital certificates. the 3 of the travel fears remain over widespread abroad for a french nurse is accused of giving out fakes that seem for typically the f. b i hailed the global sting operation as a massive success with more than 800 distracted criminals. arrested over the ease with which the agency kept their tech raises a host of privacy concern. stay tuned for news in just about 60 minutes the.