in the newsroom, but first, the stock market is soaring and jobs are coming back, so why are the paychecks barely enough to keep millions of u.s. workers out of poverty. christine romans has answers. "your money" starts now. record highs in the stock market. the biggest jump in home prices in seven years, but americans walking off the job, protesting what they call poverty wages. i'm christine romans, and this is "your money." are we one america with two economies? america is the land of opportunity, right? >> you can choose policies that invest in our middle class and create new jobs and grow this economy so that everybody has a chance to succeed. >> that was 2008. four and a half years later, the president's supporters are wishing for a little less hope and a little more change. >> doing nothing doesn't help the middle class. >> so what's the president doing? four speeches in seven days.

>> if folks in washington really want a grand bargain, how about a grand bargain for middle class jobs? >> but while washington waits for a bargain, millions of american workers feel they're getting a raw deal. fast food workers across the country who say they can't afford to live where they work, walking off the job to demand higher wages. now the economy is adding jobs, but those new jobs pay less than the ones lost during the recession. the president worries the growing income gap will fray america's social fabric. even the good news isn't as good as it seems. amazon adding 5,000 warehouse jobs. the company's warehouse workers take home just $24,000 a year, barely above the poverty line. america may still be the land of opportunity, but those opportunities pay less and less. in brazil, in greece, in france, we've seen protesters take to the streets in those countries demanding economic reform,

demanding workers' rights, financial fairness. in short, a better life. could we see that kind of fervor here in the united states? it's not exactly arab spring, don't get me wrong, but fast food workers in several cities walked off the job this week to demand better pay. austin goldsby is the former chairman of the economic advisers. austin, could we be witnessing the beginning of a movement, or is this moment destined to fade just like occupy wall street did before it? >> i think this is probably more likely to fade. you know, occupy wall street was more in the spirit of the protests in europe and the arab spring, which are major gut-wrenching changes, huge recessions, huge austerity, those things leading to mass protest. i think in this case you're seeing some of the natural tensions that arise as you're coming out of a recession. the economy starts getting better, workers say, we want to

see our wages go up more, and there's going to be a little tension among the employers. >> even when i look at this week's job report, i see bartenders, i see waitresses, i see home health aides. fast food workers. i'm seeing these kinds of jobs grow. these are the low, low-paying jobs. these are not ladder jobs. what's happening here, and could you really see a tipping point when people say, look, we're not creating good jobs? >> well, you know, just be a little careful. yes, that is true, we've seen a lot of temp jobs, we've seen a lot of part-time jobs, though that is somewhat natural as you come out of a deep downturn. overall incomes in the country, if all that was happening was good jobs being lost and bad jobs being created, you would see incomes falling pretty significantly. and overall incomes are basically flat. now, we do need to get incomes up for consumer spending to come back to anything like normal

levels, but, you know, with the growth rate as slow as it's been, it's really hard to see substantial improvements in the job market. that's just a reality. >> all right, eduardo. income equality is widening. the cdc says average income for the nation grew 1%. is this a problem that any president can reverse? >> i think this is going to take a very long time to change because this has been a long time development. this trend is, i don't know, 30 years old. i wanted to speak to what austin said a moment ago, though. even though we can expect jobs and in connection with to rise as we emerge from the recession, wages right now are lower than they were. the worker in the middle is earning less per week than he or she was ten years ago. so i would argue that there is a

cyclical factor that as we emerge from the recession, we should see an improvement. there is also a longer term phenomena that have been keeping wages down, and you can see this in all sorts of statistics. if you look at the wage share, what part of the national income goes to wages? that's at its lowest point since we started measuring this stuff in 1929. and by contrast, the share going to profits is at a record high again since 1929. >> the focus on raising wages for some of these jobs, we need more jobs that pay better wages that more people have access to on the skills floor, and that's kind of a bigger problem. the recovery is going to be hard to fix. education is a costly but essential step. the president says it's worth it. >> if you think education is expensive, wait until you see how much ignorance costs in the 21st century. >> google chairman eric schmidt agrees. >> the core problem in america is the educational system is still not producing quite the

right people. >> we know the problem. we agree on the solution. so what will it take to make america sure that it remains the land of opportunity? we're going to tell you next. ♪ [ male announcer ] you wait all year for summer. ♪ this summer was definitely worth the wait. ♪ summer's best event from cadillac. let summer try and pass you by. lease this cadillac srx for around $369 per month or purchase for 0% apr for 60 months. come in now for the best offers of the model year.

hd 166,000 new jobs created in july. unemployment and low wages are a real problem for the middle class. check out the jobs lost during rhett session. mostly middle wage jobs, companies large and small cut payrolls. what kinds of jobs are coming back? take a look at this. mostly low wage positions. you see jobs coming from here and going right down here in the recovery. hourly rates of 7.69 to 10.00 an hour. this is the highest medium wage.

retail salespeople, $11 an hour. food prep, waitresses and waiters, $7.60 an hour, home and health care aides, $10 an hour. what about the next few years? the government projects these jobs will be in high demand through 2020. home health care aides top the list. registered nurses here. take a look at that. $64,000 a year. growth for this field, but that's growth that's going to take more education, training and probably some investment. look, most of these put a family of four under the poverty line if it's their only income. registered nurses again, this bright spot here. office clerks 26 grand a year. look, you have to really, really know where you're putting your investment in an education and in planning for a career. are we becoming the united states of low wages, or is this

just a rough step on the path to renewed prosperity. eduardo porter and austin goldsby is back with me. austin, is it that simple? >> yes and no. education is a necessary condition. we need to improve our education and expand our education. we used to be the nation with the highest level of college-educated kids, and we have now slipped down those ranks and we need to get back up there. but there is also a question of what kind of education. when we start investing in education, we start with very, very little for kids three years old, and research shows that's just not enough. >> we can talk about early childhood k through 12, college. i talked with google ceo eric

schmidt this week. >> gas production and energy and technology is being held back by the lack of americans who can do this. the way you fix this is by fixing education. >> here's an example of this growing skills mismatch he's talking about. computer and i.t. jobs grew 13% from 2003 to 2012. but degrees in those areas fell 11% during the same period. austin, is the education fix up to the government? is that up to the private sector? here i was with eric schmidt on the eve of a jobs report that was going to show more low-wage jobs, and all these tech entrepreneurs are telling me we can't find people, we cannot find qualified workers. >> you got two issues going there. the first is there are certain sectors where the skills mismatch is an issue. but that is not the overwhelming reason that we have high unemployment in the united states. the overwhelming reason thus far

has been we had a horrible recession and there's not enough demand. now, normally once you're a few years into an expansion, the people remaining in the unemployment pool don't have the skills to match to the industries where they're growing. but let's remember, there is a data said that measures job vacancies as well as how many unemployed people there are, and there are still more than three unemployed people for every job vacancy. thus far, it's only in particular sectors where this mismatch is through. i think, to your question about is that government or private sector, i think the answer is both. and if you look at the community college system in the u.s., it's actually one of the unsung heroes of our training and education system. and it's a shame that we aren't investing more in that because that's a place where they're trying to link employers to people who are trying to get jobs and the government is involved but in facilitating that partnership. >> guys, we could talk about

this for hours, it's so fascinating. nice to see both of you. have a great weekend. coming up, it's the biggest guessing game in washington right now. who will replace this man? that's the fed chair, ben bernanke. his term ends in january. you cannot believe the politics right now behind choosing his replacement. white hot in washington. that's next.

hey guys, thanks for coming. are we in trouble? no, you're not in trouble. i just want to set some ground rules. like what? well, remember last week, when you hit vinnie in the head with a shovel? [chuckling] i do not recall that. of course not. well, it was pretty graphic. too graphic for the kids. so i'm going to have to block you. you know, i gotta make this up to you. this is vinnie's watch, and i want you to have it. you deserve it. no, thank you. at's really not necessary. no, no, come here...

he or she is the most important person in the world when it comes to your money. i'm talking about the chairman of the federal reserve. ben bernanke's second term wraps up the end of january. so who will obama pick out to replace him. we talk about the big name battle. >> reporter: it is the guessing game in washington this summer. will it be janet yellin or larry

summers to fill in one of the most important jobs? the battle of the next federal chairman has been intense and highly unusual. >> in the old days, if you campaigned for it or people on your behalf campaigned for it, it looked bad. this whisper campaign on behalf of yellin and summers is really new in washington. >> reporter: democrats sent a letter to president obama urging him to pick yellin. but summers has people in higher places, too. bob rubin is reported until his corner. one thing is certain. bernanke's shoes will be big ones to fill. washingtonians loves the billion dolla -- money he pumps into it each month. >> she's been at bernanke's side for the past two years as vice

chair. >> reporter: as second in command, yellin has deep respect inside the federal reserve. she's no stranger to politics, serving as vice chairman of the advisers under the president. summers, on the other hand, is a world-renowned economic superstar. he was director of the economic council under president obama and a former treasury secretary under clinton. he was also on the committee to save the world during a financial crisis in the late '90s. but he does have baggage. >> summers is a controversial person. he is abrasive and brilliant. >> reporter: some say his brash style may not fit well in the feds' culture. he is also faulted for performing financial deregulation which many economists feel helped trigger the most recent financial crisis. the debate over yellen crucial

financial markets, but it could last a while. president obama is not expected to announce his choice for the fed until the fall. maggie lake, cnn, new york. >> and the president has made it clear to democratic lawmakers that he hasn't decided who will replace ben bernanke just yet. he had several closed door meetings with republicans and the senate. he also mentioned a third name, donald cohn. cohn is now a senior fellow with the brookings institute. he spent 40 years at the fed and was adviser to ben bernanke during the financial crisis of 2008. john, this is not a political position, the chairman of the federal reserve. this is not a political job, but the politics, white hot politics in washington right now about who is going to get that job. >> we've never seen anything like that. the federal reserve chair is

usually filled by the most boring person in washington, d.c. this is more like a shouting campaign. you have senators writing letters, you have editorial boards writing in months before a decision will be made, and now, most remarkably, you have the president out loud, in front of members of congress, defending someone that he hasn't even picked yet. it is really staggering here. and until now, it's really been a one-sided debate with critics of larry summers and supporters of janet yellen, them being the most loud and vociferous, because most of summers' supporters are in the white house who don't say too much. >> you're hearing them talk about the gender and also the gender of larry summers. there was a whisper of don't count out larry summers just because he's a man, because somebody thinks the president needs to promote a high-profile woman to the job. >> right, he's often been accused of running a men's club there, so obviously picking a woman would be a huge move for

him. one of the big issues as one political scientist pointed out is larry summers is an acquired taste, but it's a taste that not many people have acquired. he has been a bracbrasiveabrasi. there are people who haven't approved about his comments about women. and the monetary policy where some people see janet yellen more in line with the current policies of ben bernanke than larry summers. >> larry summers has said he thinks these current qualities are adding to the economy. he is brash. >> brilliant. >> brilliant but brash, but he seems to have the ear of the president at this point. thanks so much, john berman. watching your watchers. is your television watching you? >> what this means is i could be sitting here watching tv from my bedroom and you could be

anywhere in the world looking at this image of me watching. >> yep. i could be sitting at a laptop in a cafe in paris.

when you're watching tv like right now, this very moment, you probably don't think someone could be on the other side watching you back. an alarming security flaw in samsung's smartvs makes this possible. loir has more. laurie? >> reporter: here at this hacker convention, we've spoken to a lot of folks and they're saying there are major vulnerabilities. check it out. what's really eye opening here is you watch tv, but with this hack, your tv can watch you. show us how that works. >> one of the things we were able to do with the smartv platform was abuse the driver so we could gain access to the camera that's built into the tv. what we can prove here is that with a little bit of extra code,

we can turn the camera on in your browser. >> wow. >> while this is evident to you because we designed it that way, this is something we can do invisibly and actually have it run behind the web page you're looking at. >> what this means is i could be sitting here watching tv from my bedroom, and you could be anywhere in the world looking at this image of me watching. >> yep. i could be sitting at a laptop in a cafe in paris, and as long as i have a web connection, i would be able to access your camera. >> the scary thing about it is it doesn't give an indication that the camera and on and there is no l.e.d. that shows up when the camera is on. so they could be watching you and you would never know. >> why is it a playground, essentially, for hackers? >> it's a computer. so instead of being a tube and some other electronics, now it has a web browser and it has a lot of devices of running linux.

>> but when people start using things like on-line banking, we can take a bank address and transfer that to a web address to a site that we control. so you're actually entering a user name and password that goes to us instead of your bank. >> samsung says it takes consumer privacy very seriously. the camera can be turned into the bezel on the tv so that the lens is covered or disabled by pushing the camera inside the bezel. the tv owner can also unplug the tv from the home network when the smartv features are not in use. >> for some of us who are freaked out and don't trust all these updates, what's the easiest fix? >> one of the things you can do with the smartv, which you can also do with your laptops, is just cover up the camera. put a little post-it note or a piece of tape, and next time you

want to skype your family, just take it off. >> christine, samsung says they fixed this, but as a customer, it's not exactly that comforting when you think a hacker had to go out and find this vulnerability in order for samsung to wake up a little bit. christine? >> if there was only something exciting happening in living rooms across america that you didn't want anyone to see. coming up at 3:00 p.m. on sunday, i take a hard core pawn out to the streets of new york for a very good lesson for me in negotiating. >> we're going to see what kind of deal we can make. how much are the waffles? >> $8. >> $8 for a waffle? why. >> we bought waffles, we bought lots of waffles. we didn't actually pay $8 apiece for them. that's coming up tomorrow at 3:00 on "your money." they are in novatorinnovato

changers, people pushing forward. they're the next scientists, physicians, poets. dreamers, teachers and geniuses. they are "the next list." today on "the next list." month electric car astronomist. but now he's wrestling with some of the most profound questions of our existence. >> there is not an area that david doesn't know something about, is not interested in. >> what is time, what is consciousness? how does the human brain construct reality? >> we dropped people from a 150-foot-tall tower. >> and he'll go to almost any length to test his theories. >> it's definitely an adventure working with him. >> so strap in. you're about to meet david eagleman, a radically different