>> ERIC: THE IRAN WAR HAS FLUCTUATED OIL PRICES AS THE TRUMP ADMINISTRATION CONTINUES STRIKES IN IRAN AND AROUND MAJOR SHIPPING ROUTES.

THE PRESIDENT SLAPPED TARIFFS ON COUNTRIES INCLUDING CANADA.

LOTS OF ECONOMIC NEWS NEAR AND FAR.

SO JOINING US, WE HAVE ECONOMIST AND FORMER LAWMAKER KING BANAIAN FROM ST.

CLOUD STATE UNIVERSITY.

ALONGSIDE HIM IS AMERICAN PUBLIC MEDIA ECONOMIST CHRIS FARRELL.

PROFESSOR, I WONDER WITH THE OIL PRICES AND WITH THE TARIFFS, IS THIS INFLATIONARY POTENTIAL?

>> THERE'S A POTENTIAL FOR INFLATION HERE.

IT'S ALREADY UNDER WAY.

AND I THINK THE PROBLEM IS WHETHER OR NOT WE GO EVEN HIGHER FROM HERE.

WE'VE ALREADY SEEN THE INCREASE IN PRICES IN OIL.

ALREADY COMING WEST TEXAS INTIMMEDIATE UP 16%.

WHICH MEANS THAT AT THE PUMP WE'RE ALREADY SEEING $4 GAS.

AS I WAS DRIVING DOWN HERE, I SAW DIESEL PRICES APPROACHING 5 AND A HALF.

>> I THINK WE'RE GOING TO SEE HIGHER PRICES, JUST WHAT YOU'RE SAYING, HIGHER OIL PRICES AND THAT FILTERS THROUGHOUT THE ECONOMY.

BUT -- AND ALSO, YOU KNOW, POTASSIUM AND ALL THE THINGS THAT ARE GOING INTO FERTILIZER.

BUT ALSO, WE HAVE TARIFFS.

AND VERY BROAD-BASED TARIFFS.

NOW IT'S 10%, A COUPLE NATIONS, IT'S GOING TO E 12.5%.

THIS PUTS UPWARD PRESSURE ON PRICES AND COMPANIES HAVE ABSORBED A LOT OF THE TARIFF PRESSURE, BUT THERE'S JUST THE POINT WHERE THEY'RE NOT GOING TO ABSORB ANY LONGER.

AND JUST ONE FINAL POINT, IF YOU LOOK AT WHAT'S HAPPENING WITH THE DATA CENTERS AND THE BUILDING OF THE DATA CENTERS AND ANYBODY WHO'S TRYING TO DO A HOME REMODELING PROJECT KNOWS THAT IT'S REALLY HARD TO GET PEOPLE TO COME AND DO THE WORK AND IF THEY'RE GOING TO DO THE WORK, THEY'RE GOING TO CHANGE YOU A PREMIUM.

I JUST THINK WE'RE SEEING A FILTERING THROUGHOUT THE ECONOMY OF HIGHER PRICES, A BIGGER BILL, GO TO THE GROCERY STORE, IT'S STILL SURPRISING HOW MUCH IT COSTS YOU TO BUY HOW LITTLE.

>> Cathy: SO THEN AFFORDABILITY IS STILL A BIG CAMPAIGN ?ISH AND REALLY, WHEN YOU TALK ABOUT AFFORDABILITY, SERIOUSLY WHAT THE GOVERNMENT OR AN ELECTED LAWMAKER DO?

>> WELL, AT THIS POINT, NOT MUCH.

I MEAN, CONGRESS COULD ACTUALLY GO HAD ED AND ACTUALLY TAKE BACK SOME OF ITS POWERS.

GRANTS TO THE ADMINISTRATION.

IT'D BE NICE FOR THEM TO DO SO.

BUT WE NOW HAVE A CASE -- WE'LL PROBABLY SEE A COURT CASE FILED AGAIN ABOUT THESE NEW TARIFFS.

AND IN THIS CASE, THIS IS- PED IN THIS CASE, THIS IS- PERMIN THIS CASE, THIS IS- PERMIS THIS CASE, THIS IS- PERMISSIHIS CASE, THIS IS- PERMISSIONS CASE, THIS IS- PERMISSION TCASE, THIS IS- PERMISSION THASE, THIS IS- PERMISSION THAT , THIS IS- PERMISSION THAT COTHIS IS- PERMISSION THAT CONGIS IS- PERMISSION THAT CONGRE IS- PERMISSION THAT CONGRESSS- PERMISSION THAT CONGRESSS- ACTUALLY GAVE THE PRESIDENT BACK IN 1974.

AND IF THEY WOULD LIKE TO SEE THIS NOT HAPPEN ANYMORE, PERHAPS CONGRESS WOULD STAND UP AND DECIDE TO PULL BACK SOME OF THE POWERS GIVEN TO THEM.

>> YOU KNOW, THIS AFFORDABILITY, I THINK ONE OF THE ISSUES THAT'S MOVING TO THE FORE IS GOING TO BE ON HEALTHCARE, HEALTH INSURANCE BECAUSE OF THE SOME OF THE CHANGES THAT CAME ABOUT THE BIG BEAUTIFUL BILL, LESS SUBSIDIES FOR THE -- IF YOU'RE BUYING ON HE AFFORDABLE CARE EXCHANGES, THE MEDICAID CUTS.

AND SO EVERYONE'S REALLY FEELING HIGHER HEALTH INSURANCE PREMIUMS AND WHEN PEOPLE ARE STARTING TO TALK ABOUT AFFORDABILITY WITH HOUSING, CHILD CARE, HEALTH INSURANCE.

>> Eric: COULD I TALK A LITTLE BIT ABOUT FROM 30,000 FEET, CAN CAPITALISM AND SOCIALISM COEXIST?

AND IN OUR COUNTRY, ARE THEY ALREADY COEXISTING?

OR -- >> THE IDEALS OF CAPITALISM AND SOCIALISM ARE ALREADY COEXISTING, AND THEY COEXIST IN PRETTY MUCH EVERY COUNTRY FOR AS LONG AS WE'VE BEEN ALIVE AND EVEN BEFORE THAT.

SO I THINK THEY CAN COEXIST.

I THINK THERE'S ALWAYS THE QUESTION OF WHAT'S THAT COPE, HOW MUCH ARE YOU GOING TO TRUST THE MARKET TO ALLOCATE GOODS AND SERVICES AND HOW MUCH DO YOU WANT TO PUT A BRAKE ON IT THROUGH THE POLITICAL PROCESS?

THERE ARE REALLY ONLY TWO CHOICES, LETTING INDIVIDUALS IN POWER CHOOSE THOSE PRICES AND LETTING THE MARKET.

THIS IS AN ARGUMENT, ERIC, THAT'S BEEN HAPPENING FOR CENTURIES, REALLY.

>> YEAH, I MEAN, YOU KNOW, THINKING ABOUT -- WE'VE HAD SOCIAL INSURANCE, FOR EXAMPLE -- YOU THINK ABOUT SOCIAL SECURITY, MEDICARE, MEDICAID.

AND THEN CAPITALISM, PAUL SAMUELSON, HE WOULD TALK ABOUT H.I.A.C.

AND THEY WOULD DEBATE AND THEY RESPECTED THEY EACH OTHER -- >> Eric: HE'S AN US TRIAGE ECONOMIST.

>> WELL KNOWN.

BUT IF YOU LOOK AT CAPITALISM, CAPITALISM INCLUDES THE UNITED STATES, IT INCLUDES DENMARK, IT INCLUDES SWEDEN, IT INCLUDES ALL KINDS OF -- IT'S AN INCREDIBLY ADAPTABLE SYSTEM.

SO I THINK THE KEY PART WHERE IT IS NOT COMPATIBLE IS WHEN YOU START TALKING ABOUT OWNING THE MEANS OF PRODUCTION, OR NATIONALIZATION, THEN YOU'RE ENTERING INTO A DIFFERENT REALM.

BUT A LOT OF DISCUSSION RIGHT NOW I THINK IS WITHIN -- UNDER THE RUBRIC OF AMERICAN CAPITALISM.

>> Cathy: INTERESTING.

>> YEAH, I REALLY THINK THAT WHEN PEOPLE SAY THEY WANT SOCIALISM, HEN THEY SAY THAT, AND YOU SAY, WELL, WHAT SYSTEM ARE YOU THINKING OF, THEY TYPICALLY WILL REFER TO THE SCANDINAVIAN COUNTRIES.

I THINK WE WOULD BOTH AGREE, SCANDINAVIAN COUNTRIES LIVE UNDER A SOCIALLY MARKETING ECONOMY.

USING THE POLITICAL PROCESS TO DO SO.

BUT TYPICALLY WHEN SOMEBODY SAYS SOCIALISM, OWNERSHIP OF THE MEANS OF PRODUCTION, AS CHRIS SAYS IS EXACTLY THE ISSUE, NO ONE REALLY IS SUPPORTING THAT IT WOULD SEEM.

>> NO, I MEAN, IT'S NOT SOVIET UNION OR CHINA.

>> Cathy: RIGHT.

THAT STORY THIS WEEK ABOUT THE A.I.

-- IT'S ABOUT A.I., HOW IT WAS KIND OF ESCAPED AND HACKED INTO THE SYSTEM OF ANOTHER A.I.

COMPANY.

I MEAN, .I.

RUN AMOK, RIGHT?

DO WE REALLY UNDERSTAND WHERE ALL OF THIS GOING?

WE DON'T.

IN TERMS OF THE -- HOW IT COULD AFFECT THE ECONOMY, THE WORKFORCE, SHOULD THERE BE GUARDRAILS?

IT SEEMS LIKE THIS IS JUST THE HORSE IS RUNNING OUT OF THE BARN AT THIS POINTS.

>> I THINK A BIG PART OF IT IS, YOU READ THESE FORECASTS, MASSIVE UNEMPLOYMENT.

WE DON'T KNOW.

I MEAN, IF YOU LOOK AT WHAT'S HAPPENING RIGHT NOW, JUST RIGHT NOW, THAT'S HAPPENING AT A LOT OF COMPANIES, A.I.

IS SUPPLEMENTING.

NOW, DOES THAT CHANGE IN A COUPLE OF YEARS.

AND THE RUN AMOK I THINK HAS REALLY BROUGHT FORWARD THIS ISSUE, THE WORD YOU JUST MENTIONED, GUARDRAILS AND UNDERSTANDING BETTER WHAT'S GOING ON HERE.

SO ONE OF THE THINGS THAT I THINK IS DRIVING A LOT OF WHY WE'RE CERTAINLY WHAT IS GOING ON, AS YOU HAVE IEW ON, AS YOU HAVE IE UKRAINE, YOU HAVE -- YOU KNOW, THE WAR WITH IRAN, THE TARIFFS, AND THEN YOU HAVE THE UNCERTAINTIES ABOUT A.I.

NO WONDER EVERYONE IS CONFUSED.

>> Eric: IS IT A THREAT OR A POTENTIAL GOOD PARTNER?

>> IT'S BOTH, RIGHT?

WE DON'T KNOW.

EVERY TIME WE DEVELOP A NEW TECHNOLOGY WE GO, WHAT'S IT GOING TO DO?

AND WE WORK OUR WAY TO A SOLUTION.

IT'S NOT A MATTER OF EVERYTHING OR NOTHING.

IT'S A MATTER OF SETTING UP -- I THINK GUARDRAILS IS A GOOD TERM FOR HIS.

MAYBE OU NEED A GUARDRAIL, ANOTHER GUARDRAIL THERE.

THE STORY WAS VERY SENSATIONAL, CATHY, BUT AT THE END OF HE DAY, DO E ACTUALLY KNOW WHAT HAPPENED, AND HOW MUCH DAMAGE WAS DONE?

WE DON'T.

>> Eric: YOU GUYS