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tv   Your Money  CNN  February 15, 2014 11:00am-11:31am PST

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seeing thousahow it could impac travel throughout the holiday weekend. plus, an olympic rivalry returns to the ice with a shoot-out finish. and hoping to show her skills on the slopes finds herself apologizing for a topless escapade. wonder what's going through your baby's mind? >> most people think of babies as blank slates, but you're experiments say that's not true? that it's not that they have to be taught wrong from right? >> from very early ages we know there is a lot going on in there. >> oh, indeed, lots going on. the look inside the brains of babies, coming up. i'm fredricka whitfield. first, "your money" starts right now. welcome to the new american dream. millions of americans stuck in the ranks of the long-term
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unempl unemployed. there are good paying jobs available but those who need them most don't have the skills to get required. an emergency assistance from washington is running out. i'm christine romans. this is "your money." i sat down with christiane amanpour and candy crowley to search for answers from washington to the rest of the world. up first, a solution to the big skills mismatch in this country that remains illusive even in a recovery, and that could be a big problem politically. >> many of these people you know statistics far better than i do, tend to be 50 and 60-year-old males who have had a certain skill and got into a certain pay level, face it, that they're the first ones to go, when a company is trying to contract. if you can get a 25-year-old to do what a 55-year-old is doing, you're going to do that, because he's not at the pay scale. >> tonight i've asked vice president biden to lead an across the board reform of america's training programs to make sure they have one mission. train americans with the skills
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employers need, and match them to good jobs that need to be filled right now. >> i've talked to governors who have said before kind of privately, look, our retaining programs are not the best. in some cases, programs to keep state workers employed, not necessarily to retrain people, and the skills are changing so much. you used to also have a very, very vibrant labor movement in the country where labor would force companies to pay for the retraining, and now you don't have that agreement any more. companies want somebody ready-made. around the rest of the world, people who will work for a fraction of what we'll doll here for the same work. >> some of these place, china and some of these place, but even in those places will are bubbling populist movements pushing back against incredibly low wages and bad conditions in the factories and places they work. people are looking at that as not going to be the same cheap labor market as it has been for so long. >> what's different here, seems to me, what the long-term
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unemployed need and those coming in to the jobs market is not retraining in their lane. it's retraining for something -- it's a different job. it's not like, oh, now you can do this. >> and we need more jobs. >> right. >> we need more jobs. talk about the livable wage. right? the jobs we do have and that we're growing prolifically are not jobs that you can feed a family of three or four on. walmart pays above average minimum wage but is getting slammed by unions and some of its workers who say it's just not enough. >> at our company you have the opportunity to enter at whatever level your capability would suggest and you have the opportunity to advance. but that student doesn't exist everywhere in the country. >> should we raise the minimum wage? is that the way to go forward, and -- >> shouldn't we ask thaw? >> let me retract that. is that a viable political option here? >> yes, yes. it's a totally viable -- when you look at long-term unemployment extension of benefits there and you look at
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minimum wage, both of those are powerhouse issues. in the exit polls in the last election there were five qualities that people were looking for in a president. they said, the pollster said, which is the most important thing to you? then they break it up. mitt romney fwhwon in four of t categories. good leader, decisive. all this stuff. guess what category he lost in? cares about people. >> i remember that. >> i'm in this race because i care about americans. i'm not concerned about the very poor. we have a safety net there. it it needs prepare, i'll fix. not concerned about the very rich. they're doing fine. i'm concerned about the very heart of america. >> it is an achilles' heel, image problem, fine, whatever it is, when you put out minimum wage, long-term unemployment benefits, this was specifically put on the schedule, one a calendar thing, that republicans would have to articulate why they're against it. >> i guess this idea of one
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america two economies. you have this country, the land of the american dream, yet it's the haves and have nots? i am very concerned. i share your concern about rising inequality. i think it's one of the most important issues and one of the most disturbing trends facing the nation at the present time. >> is that the view -- >> a growing gap. >> yes, it is. it is. but still, as i say, those who go from the outside to america have a better chance of making it and living the american dream. people do see that americans are suffering from this, not just income inequality but the growing gap of the inequality, but it's happening in places like london right now. >> everyone, from the pope to the president, has weighed in on growing income inequality. oxfam, the global anti-hunger and poverty group says the 85 riches people have the same
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amount of wealth as the bottom 3.5 billion. here in the u.s., cnn orc poll show most americans want the government to reduce the gap between rich and poor, but that number hasn't budged in decades, despite the majority. the more you make, the less interested you are in government jumping in to close the wealth gap. the less money you have, the more likely you are to want washington to step in. at the very top of the heap, outspoken 1%-ers firing back at the 99%. forget the nazi reference of this wealthy venture capitalist made and then apologized for, now warning his most recent comments will make people even more upset. more money? then you should have more votes. that's just the beginning. hear for yourself, next. life with crohn's disease or ulcerative colitis
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more money, more votes. vo the wealthy have more power at the ballot box? tom perkins thinks so. don't worry 99%-ers, you'll be
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able to vote -- if you qualify. >> the tom perkins system is, you don't get to vote unless you pay a dollar of taxes. but what i really think is, it should be like a corporation. if you pay $1 million in taxes, you should get 1 million votes. how's that? >> now, he said people are expecting outrageous from him and he gave it to them. john avalon a cnn political analyst and executive editor at the daily beast. 4 43% of americans didn't pay taxes last year. do the 1%, a rhetorical idea, frankly, but there's a drum beat of the 1%-ers saying, don't complain, the rest of you, because we're the oneses macking it happen? >> no, dhoent have the power to make it happen. the constitution takes care of that. you are seeing a riff. perkins have been out front on
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this, earlier with the letter in the "washington journal," anger at the 1% and sam zell -- >> who says the 9% soar emulate and envy the 1% and that the 1% works harder than the rest of america. >> the thing about naesamericant has worked, our political focus fish susures are more along the lines of race. giving rise to much more anger and anxiety than we've seen in a long, long time in america. when folks who are billionaires stock mocking pliring the victim card they exacerbate the thing they're afraid of. >> retailer no coicole miller, they're whining. would be considered wealthy in the rest of the world. we asked a nobel winning economist, what does he think about this? >> two ways to become wealthy.
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one way is to innovate. to really do something new, to invent a transistor, the laser. discover dna. things that transform our society, our economy. the other way is to try to seize a larger share of the economic pie. what i call rank-seeking, wealth -- taking wealth from mothers. that's a very large fraction of the wealth of that top 1%, it's a result of that. ceos who are taking a larger and larger share of the corporate pie without any evidence that they are increasing the productivity relative to, say, the compatriots in other countries where a ceo pay is much more limited. >> you could argue the influence of that top 1% is already so vastly greater than the average person's influence. they've got lobbyists on k street, access to politicians at the very top of the country. >> yeah. and that's because it's true.
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the middle class doesn't have an organized lobby. whatever specters people want to rise about 43% being almost majority of takers, quote/unquote, in the country and ending democracy that sass fear-field rift we've heard in american politics. the current issue is differ. it is urgent. it is something we should pay attention to gand we're having a debate. the squeeze of the middle class. i like a lot of folks think the country's strength really is historically, not just america base and how strong the middle class is. we should be worried about the folks who are objectively middle class and seems to be on the losing side of the vote. when folks are playing the victim card saying people are whining, they're creating the thing they're complaining about and not helping to solve the problem. >> the state budgets cutting back for years, the state government, and now seeing a boost in revenue. governing are even using the word, i can't believe it, dare we say, surplus. can you believe it? overall revenue, highest since the recession. some states are going to have to decide what to do with their
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extra money. don't spend it all in one place. go to infrastructure? use it because, to fill in the cutbacks from elsewhere? what are the political, i guess, decisions now with surpluses from these states? >> people are so unaccustomed to surpluses on the state and loaf level it is mind-bending and a sign the economy is improving, first. >> they have to have balanced budgets and have to have surpluses by law. unlike your federal government. >> correct. that's another conversation for another day. look, politicians, of course, love it. they can talk about comeback going into a re-election mode. the thing to keep in mind the deficit sub plus doesn't mean they don't have a lot of outstanding debt. better use if you have a surplus, probably invest in infrastructure. the federal government doesn't get off its butt, bank, states, can do some things. because of an aging population and the states have serious problems with debt. the idea all is rosy and clear skies from here on out isn't a
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reality. >> no rainbows and unicorns, the picture of the job situation. 91 million people are not looking for a job. 37%. i mean, that's unbelievable. how much of the actual population is not working. what's going on here? >> i think partly it has to do with an aging population, but it also has to do wit long-term effects of the great recession. 1% bouncing back taking 99% of the gain since then. some are sidelined. this is troubling. if you care about america as country, forget the bumper stickers. you care about stability, about the viability of the american dream, invested in the american dream, that's being eroded. >> if you're a politician looking at that number, you should figure how to get the right training for kids on the front end reeshgs training for baby boomers sidelined, the right jobs mix in the middle and wages that people can feed a family on and you just don't see that laser focus in washington
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about jobs. 91 million people not even looking for a job. >> yeah. and every time we've had things, previously bipartisan support to boost the economy, in the current polarize environment, off the take with divided government. >> more to talk about next week. >> absolutely. coming up, want to be successful in this job market? there's one thing you need to have. what it is, right after the break. s is the story of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall off roble avenue. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ choose two melt-in-your mouth entrees, olive garden's best 2 for $25 yet is ending soon! like new parmesan crusted chicken, 3 courses, 2 people, just $25 at olive garden!
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led to the one jobhing you always wanted. at university of phoenix, we believe every education- not just ours- should be built around the career that you want. imagine that. is college worth it? if want a job and a solid income, the answer is, yes. look at the gap in median earnings between those with a college degree versus a high
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school diploma. never grader. $45,000 if you're a college grad. $28,000 if just a high school diploma. a huge gap in unemployment. three times higher for a high school grad than a college grad. wurn thing you need to be successful in this job market a college degree, and now you can invest in people with college educations. if you go, browse profiles of young people with debts and dreams, give them cash and jobs in exchange for a piece of their future earnings. they can use the cash to pay off debt and start companies. no question about this. country with the best work force and fran structure will lead the 21st century and ensuring the best work force starts with an education. the aung author of this week's brilliant cover story 'the school that will get you a job." rana, welcome to the program. you write about this new mod's of education. six year.
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six-year high school. does it work? >> an amazing program. it's rolling out in new york and chicago. upstate new york, connecticut. the way it works, you take four-year high school program and tack on two years of community college. the schools partner with local community colleges but have a corporate partner. ibm is one of the main ones that came up with this program along sway porters and provide curriculum support, guaranteeing you'll teach these kids the kind of things they will need to get a job and at the very end, guarantee add job opportunity to be first in line to get a job at ibm or with another of the blue chip companies. >> we've heard from companies. they're concerned about the quality of education coming out of k-12 and concerned about gap where kids can't get into the community klemps and concerned about the skills people have. if you have the schools and the community colleges and companies working together, they could fill that gap. >> absolutely. interesting it doesn't actually
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require more money. in the cities where it's rolling out. there's a lot of money already in the public school systems. ibm is not putting in money. the other corporate partner is not putting in money but knowledge. kids are coming out and don't have the skill set even if they do graduate, with a community college degree, to be hired in these companies. >> you here how networking is important. there's networking right there. >> give an mentor. each child has an individual mentor that stays with them through that whole experience. >> then they can focus on the s.t.e.m. and engineering math, the technical skills they desperately need for some of these big blue chip companies. >> absolutely. kids coming out of school way two or four-year degree. the difference between a starting salary between an english major and somebody with a math and science degree is huge. >> relocating into a build a factually in a town and looked at the high school graduation scores and look at sort of the educational basis of the community they're going to be in. because they know they need workers who are going to be able to adapt and be smart.
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>> absolutely. you know, i spoke to chicago mayor rahm emanuel. he said i have to guarantee companies to get them to locate, what it will look like. show them the high school kids we have dpo they have the skill? >> thank you for being with us. >> thank you. barbie on the cover of the new "sports illustrated" edition. ken isn't objecting, but others are. sexy or sexist? unnecessary. unnecessary. next. a't trap me in a rate. that's correct. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally.
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? >> for more stories on "your money," give me 60 seconds on the clock. it's "money time." you can buy al capone's miami beach hideaway if you have $8.5 million. public enemy number one died in the house bought back in the '20s for $40,000. eat more chicken. without the antibiotics.
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chick fe-fil-a switching to an i antibiotic chicken. and kraft also. higher prices ahead. pump prices are likely to rise 15 cents to 40 cents a gallon between now and easter sunday. buckle up. great lake greco recalling car seats. the government would like a bigger recall of millions more for not latching. a big week for bathing suits. air new zealand's in-flight magazine featuring swimseat. and barbie on the cover of "sports illustrated." calling bad for women's body images. a superstar on the baseball
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diamond is also calling it quits, but that likely won't keep him from making millions off the field. 2014 will be new york yankees' shorpstop derek jeeter last season, but he'll still help companies sell you stuff. the endorsement deal, estimated about $8 million to $9 million. it will drop slightly, analysts say and business in cooperstown, new york, could get a boost. hotel rooms are going fast for the hall of fame ceremony of the year 2020. that's the first year jeter is eligible for the hall of tame. congrats to all the u.s. olympians winning medals in sochi. they'll also get a nice bonus after they step off the podium. the u.s. olympic committee awards its athleteses 25ds,000 for god, s 25,000 for silver, $10,000 for bronze. the tax man wants a piece of that, including prizes and awards as gross income. for me standing up on the medal stand worth it, no question.
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how about you? what would you pay to wane gold medal in olympic figure skating? we hit the streets of new york to find out. >> reporter: what's the price of gold? >> ah -- i don't know. a couple hundred dollars? yeah. a couple hundred dollars. >> i don't think there's a price for that. everybody practices, they give their time, motivation. dedication. and then -- you get your gold. that's what it's all about. >> i don't know. i wouldn't pay anything. practice, be the best i could. that's what i'm doing here. practicing. >> i don't know. half a million dollars or something? i really don't know. >> what would i pay? you're not supposed to pay anything. it's the olympics. priceless. >> i don't know. i nerve are thought about it. maybe, like, a million bucks? if i had an extra million i would probably do it. >> i wouldn't pay anything. no one would pay to see me. so -- i'm happy just to be able to
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stay on ice skates and go around in a circle. >> all right. thanks for joining us this week for "your money." join john berman and me every beak day morning on "early start," until then have a great weekend. hello everyone. i'm fredricka whitfield. the top stories we're following in the "cnn newsroom." sections of the northeast are bracing for yet another winter storm. coastal massachusetts is under a blizzard warning, boston, maine, boston, rather, to maine, could see 12 inches of snow or more. and new york city could see even another few inches of snow by tonight. looking right there at a cloudy picture. a dusty, snowy picture of the statue of tlabt could mean a brand new round of flight cancellations and delays all over the place. rosa