hi, hi, everyone, i'm becky quick. america's disappearing middle class, a new move by a big city restore it or help kill it off. a race to the finish, the incredible story behind american pharaoh's bid for the triple team. >> it's history, 141 winners, i'm one of them. i still can't believe it, okay? >> get what you're worth at your job. don't apologize if you're not wrong and manage a work/life balance. words of wisdom from mick ka a brzezins

brzezinski. >> having the money talk, "on the money" starts right now. here's a look at what's making news as we head into a new week. america's economy contracted in the first quarter of the year according to the data on the gross domestic product. believe it or not that's quite as bad as economists predicted but it was revised downward from the original number of 0. 2% growth. it is the broadest measure of the size and strength of the u.s. economy. the nasdaq hit an all time high but lost those gains on thursday. the dow was down on thursday as well after a terrible day for china's stock market. stocks continued to fall on friday. pending home sales hit a nine-year high in april. a number is a sign of the strength in the housing market. up 3.4% for the month. well above expectations and

highest level since may of 2006. search giant google is venturing into new territory. you'll be able soon to buy things directly from its search page. there will be a buy button rolled out on mobile devices as well. facebook and twitter have similar functions on their pages. america's seconds largest city will be increasing its minimum wage substantially, wages rising to $15 an hour by the year 2020. will the move by los angeles propel people out of poverty or kill off jobs? joining us right now is former labor search robert reich, now a professor at the university at berkeley and "inequality for all" is available now. this question about los angeles, raising to $15 over a series of years. is this a good thing? >> i think it is a good thing in the sense that the minimum wage is 25% below what it was in

1968. adjusted for inflation. low wage workers need a raise. the only way they stay out of poverty if we provide medicaid and food stamps and benefits. they are getting a free ride on the rest of us. >> mr. secretary, what about the cost of jobs in terms of what the cbo put out last year? there was a study that estimated if the minimum wage went to $10.10 half a million jobs would be eliminated and it starts to make you wonder what happens at $15 an hour. >> a number of studies around the country since the cbo study, the researchers have found that what happens when the minimum wage is raised, not -- you can't double the minimum wage but when it is raised to let's say 15 to 20% a year, you bring into the wage market a lot of people who would otherwise not be interested in having a job. that means that employers have more choice so people to choose

from. that gives them more reliable employees and the other thing that the researchers found minimum wage workers because they spend almost everything that they actually are getting in terms of wages, that spending is local spending that stimulates the creation of new jobs in the area. >> it makes sense to me the idea that workers who are making lower wages are spending all they are making. but the idea you can increase a minimum wage at 15% a year indefinitely, it seems like common sense tells you at some point there will be some jobs that no longer exist. >> you can't do -- i think you're right. you can't do it indefinitely. what makes sense and los angeles does make sense, you raise it to the point where you are pretty much where you would be if the minimum wage let's say in 1968 was adjusted for inflation then throw in more for productivity improvements and do it over a five-year stretch then maybe -- i don't think los angeles is doing this but a good idea.

you thereafter index it to inflation. >> let's talk about an alternative that has been thrown out there. we've heard from warren buffett he has weighed in and raised controversy by saying he thinks there's a better alternative to raising the minimum wage. listen to this. >> i do want to see people have more money in their pocket, low income people. i think the earned income tax credit is a far superior way. >> he just wrote an op-ed where he suggested the earned income tax credit is much better. he would rather see that than any raise in minimum wages. >> the earned income tax credit is the largest anti-poverty program right now in the united states. people don't realize it and it is a very good and important program. a wage subsidy for people at the bottom. you need -- again, what has been found around the country and we've known this for a number of years, it's the combination of the earned income tax credit and the minimum wage and ideally an increase in both that is really

the best. >> secretary reich, let's talk about the sh vinking middle class. we know it's been under assault for decades at this point. first it was manufacturing jobs that started disappearing and some of the government jobs have disappeared as well as states and federal governments really cut back. i guess i've been trying to figure out where the middle class, where the next sort of impetus is to building the middle class. >> it's difficult to tell. i think one area we haven't explored nearly enough or are what might be called technician jobs. these jobs have to do with installing and maintaining and upgrading very complex machinery in offices and hospitals and every place else. we have a shortage right now of technicians to do these kinds of things. i think that shortage can grow in the future. these are going to be the new -- let's call them the new plumbers of the future. plumbers do very well by the way. >> how do we get them trained by

the way is the question too? there's 5 million jobs open in the country and still have high unemployment levels? >> there's a great mismatch and growing mismatch between what employers need and the training and skills that people have. we have got to -- and we've talked about this for years. we've got to change our unemployment insurance system into a reemployment insurance system. so that when people lose a job, they immediately get into job counseling and job search assistance and job training that is linked to real jobs in the area where they live so they can move onward and maintain or at least try to maintain incomes. we don't have community colleges ought to be the hubs of that kind of job reemployment system and we don't have it yet. >> secretary reich, thank you very much for joining us. >> thank you, becky. >> up next, the story of the triple crown contender that reads like a fairytale. why the owners of american

pharaoh hope the next larace to the finish line is only the beginning. the tricky task of work/life balance we'll talk mika brzezinski. here's how the stock market ended the week. stamps.com is the best.

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a thoroughbred owner who started out selling beer in egypt and horse born in kentucky almost sold off two years ago. next saturday together they could make history. two years before american pharaoh ran a race, he hit the auction block in saratoga springs selling for $300,000. over the next year he won five races earning more than $1.4 million in prize money. at the time, experts pegged his value at around $10 million. in a sport filled with old money and families who have been at it for generations, he and his son justin are new byes with an impressive record. they started the stables in 2005. just ten years of racing, they placed second in the derby two times finally taking home the coveted title of kentucky derby champion with her them bred

3-year-old colt, american pharaoh. >> 141 winners, i'm one of them. it's history. >> $1.2 million prize they walked away with was just the beginning. when american pharaoh crossed the finish line, blood stock agents estimated american pharaoh's value between 15 and $20 million. that's based on racing performance, physical shape and most importantly, his potential to breed another champion. and just two weeks after the derby, in a torrential downpour -- >> it's really getting bad. >> american pharaoh stormed the track. >> let's go! >> reign supreme once again winning by seven lengths and experts upped the horse's value by another $5 million. next stop, belmont stakes, the most famous horse in america gears up to take a shot at the final jewel of the triple crown, a race against history. no other horse has been able to

con quer in 37 years. american pharaoh rules the track, they expect the value to jump north of $30 million. remember, no horse has won the triple crown since 1978. if he wins, his value will be $30 million, that's more than 100 times that sale price two years ago. >> two years ago, $300,000. i understand the zajat family almost lost the horse auction. >> he's a businessman, if you breed a horse and sells for a million, you've got to sell it. last bid was 250. he got seller's remorse and didn't get his price, i'm going to buy him back. he bought his own horse back for 300. people said that was crazy, now looks like the smartest thing he's ever done. >> way to go. love it. >> thank you so much. >> thank you. >> up next, we're "on the money." morning tv show and author mika

brzezinski shares her strategies on making sure you're getting paid enough. later, it may not be the easiest to talk about, if you don't, it could spell trouble ahead. while a financial date night should be on the to do list. i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn.

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succeeding in your career and balancing that with family life say daily challenge. in "grow your value." the co-host of "morning joe"

shares her experiences. thank you so much for joining us. >> thanks for having me. >> the thing that struck me the most and hit home with me is the idea of work/life balance is almost impossible to hit and you're very up front and very honest about that. >> it is. i wrote knowing your value a few years ago and it touched off such a response. forget the balance and having it all, that stuff is all kind of old tattered phrases. if you know your value and communicate it effectively, that should be a good starting point to growing it. >> let's take one step back and start with knowing your value. that is something that you came about, again, through firsthand personal experience. men around you were getting paid more. >> yeah and i went through a process of really working to fix that and realized, that half of it was me and that there's a part of the equation that women can control and that we should

control. and that we should even improve upon in terms of the way we negotiate when it comes to advocating for ourselves. i did an event at the white house working families summit before i started writing the book. i had all of these amazing women on stage and they want to talk about knowing their value. it was glorious, nancy pelosi, amazing women, so i was asking them about success and all really good at that. then i said have any of you had any struggles at home given your success and your incredible careers? they all looked as if i seriously something smelled bad in the room. your eyes were like, you went there. the whole room went -- >> the awkward moment that didn't go away. >> i'm like we've got to write about this. and judith talks about it in the book, indra noovi talks about incredible gymnastics in her mind to try to make it work at

home. it's not easy stuff. >> when you were at the white house doing the forum, you also had a woman there ceo of b.e.t., when they offered her a job, they asked her to name her salary. what happened? >> she named something way too low. >> a million dollars. >> that is what women do, we depreciate ourselves in real time. but this is something we've got to learn to do that men do really well. they are over confident and make up stuff they think they can bring to the table. then they say it and you know what -- >> sound good saying it by the way. >> they sound great saying it. i have found when you actually -- over compensate in terms of value, i can do this and that, chances are you can. >> what was the defining moment where you really said, okay, it's not just work, it's also home. >> i always say that to myself and trying to figure out, how, how. it's still a struggle actually.

i have no solution or pretty bow at the end of the book. there are moments -- the book starts with i hate you, i hate you, quoting my 16-year-old daughter. there are moments like that where i just don't know how to do it. i say that to myself and think that's just as important for women to know that people like you or me, we don't have it like completely solved and we have this the solution and feel perfect. actually the imperfection and the struggle we sort of try and make up for every day is -- and the compensation that we're always compensating and trying -- >> stop people pleasing. >> that's the kind of stuff we can tweak. stop apologizing, don't self-dep pri indicate to your child. when you command respect, it will come. that applies to parenting as well. >> is there something that men can take away too? >> yeah, they can learn a lot about women in their lives. and the women who work with them

or for them, the women they are married too. >> thank you very much. >> thank you, thanks for having me on. >> thank you. up next "on the money." a look at the news for the week ahead. fine wines and finance, why the topic of your next date night should be money. part adventure. it's part geek and part chic. it's part relaxation and part exhilaration. it's part sports car and part suv. and the best part? the 2015 gla. it's 100% mercedes-benz. visit tripadvisor orlandondo tripadvisor not only has millions of real travelers reviews and opinions

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here are stories that may impact your money. on monday we'll get personal income and spending for april. also an important manufacturing index for may. tuesday brings may auto sales that's always a key economic number. on wednesday, it's the federal reserve releasing its beige book, a survey of regional economies. on friday, the labor department's unemployment report for may is out. one other big number arrives on friday night. bidding ends for the 16th annual lunch with warren buffett fundraiser. last year's winner paid $2.2 million to dine with the oracle of omaha. few people enjoy talking about money and it's one of the most common arguments between couples. a recent poll found couples in sync about budgeting and saving feel more financially secure. finance correspondent sharon epperson is here with an interesting take on how couples can get the conversation going about money and their future. >> the solution is to have open

communication and communicate regularly about your money and future. maybe try having financial date nights. carve out time to discuss money matters but in a fun and relaxed way. making financial decisions shouldn't be a chore. one couple gave us an inside scoop how they handle their money dates. >> many couples may think date night should be all about romance. but for brian and tara felt, it's more practical. >> nine to 10:00 p.m. week nights, try to get the kids at bet at 9:00, which turns out to be 9:30 then usually we're tired by 10:00. that's literally our time. >> their together time date nights ininvolve talking about finances. >> we talk about budgeting, budgeting, trying to set money aside for certain activities with the kids coming up. different expenses. summer camps. >> even on those rare nights out away from the kids, money mat r matters are the main topic of discussion. >> when we do get a baby sitter,

every couple of months. >> tends to be the conversation of choice. >> whether budgeting for a vacation, buying a new homicide or dealing with day to day finances, disputes over money are leading cause of unhappiness in the home. communication is key for couples who want to find common financial ground. >> not talking about your money is what really results in a lot of financial anxiety. people we find through studies, the ones that are most concerned about their money that have the biggest anxiety around this issue are people who don't know. >> financial adviser stacey frances says couples should schedule date night once a month and prepare for it like a business meeting. maken and agenda, review key topics and one or two issues to go over next month. this may not seem that romantic but frances says it can be. >> over time as soon as you continue to do this, you'll find

it does become romantic. egs specially when you find yourself on the same page. because couples who are on the same page financially, those are the couples that stay together for the long term. >> brian and tara felt agree. >> how can we save money if we're not jointly thinking the same way or talking about it. >> the felts admit they don't always act on every financial issue they discuss after their money dates. some months they may not meet short term goals and other months they make significant process. they know convening regularly is essential to achieving goals together, becky. >> what happens if you are in a relationship and the couple starts to disagree on where things are headed, once the arguing starts, how do you pull it back? >> respect. one of the things that's most important is to realize, you have to approach the conversation with respect for the other person. and what financial adviser says is important to do, take the emotion out and try to find a time when it's not a heated moment to have the discussion

again. >> that's a good point. >> revisit at a later time. the key is to really talk about it. we were just saying often the communication with spouse is via text. that's not the way to have a money date. you have to sit and look at the other person and discuss what your goals are together so you can meet them together. >> it's definitely a good goal to strive for. thank you. >> sure. >> that's the show for today. i'm becky quick. thank you so much for joining me. mark your calendars, national doughnut day is next week and we'll have the ceo of dunkin' donuts. have a great one and we'll see you next weekend. female announcer: sleep train challenged its manufacturers

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