man versus machine. technology has made our lives more convenient, but at what cost? christine romans. this is "your money." you already know your private information is under attack and increasingly sophisticated hackers. government watching, too. don't worry. both insist here to help. what about your job? your future earnings even your house? are the companies we use every day costing americans too much in the long run? take google. created do no evil. no everyone's a fan. one day this week google had anyone withes 15 $15 glass. people wearing google glass, getting attacked. anti-text sentiment in silicon valley. loud protests in san francisco against private buses big companies use, big tech companies use to shuttle workers to silicone valley complains the

highly paid tech workers driving up rents, forcing out longtime residents. what about the status of your future employment? most jobs pay less thanes 20ds an hour. the jobs that built the middle class are disappearing. for all the convenience, technology may be one big reason why. a fascinating look at this topic this week. how does this technology we all use and love add up to the growing challenge of income inequality? seen 10-x personalities overachievers, making all the money inventing someone. the people who make it and sell the products making much less. that's where the fast growth is. technology. is it hurting employment prospects? >> i would say, perhaps, the first thing no. really, technology has always driven prosperityy. prosperity based on innovation for hurns of years. >> the guys who made the buggy

whips were upset for a while. >> and now we have a car industry. technology always displaced a certain way of doing things before but always moved progress onward. generated new jobs, for people with more skills that pay higher wages. a belief we lived in. the technology, even though it had disruptive effects, end of the day ended up doing more good than bad. the problem now is, as you pointed out in your introduction, all this wealth generated by technology and generation, how that's distributed throughout the population. we see that a growing share of the labor force, of our workers, are really not seeing the b benefits of this seeming booming innovation. >> can't use it for a nanny, home health care worker. many restaurant jobs. always need that face-to-face person. those are the fastest growing jobs that don't pay that well?

>> a hollowing out. part of the job technology taken out is the middle. what we used to call the middle class. right? manufacturing. folks that build cars and machines and other things. those were the ones who were pretty much mostly union jobs with high wages and so sornfort. shows r those are threatened. those at the bottom, you need a person to do them, they're safe but don't pay well. >> sometimes questioning the benefits, you're accused of, you don't get it. a mantra, i think of business, on wall street and in washington, technology is good, technology is good, but we can recognize there are these short-term disruptions and they are real and hurt people. >> and might be long-term disruptions. these should be taken care of. not technology, no. as i said it drives prosperity, but a question, how do you distribute the gains -- >> how do we take care of it? >> maybe it's an issue of -- taxation. education. i mean, there many ways you can do this.

the kind of rents we grant corporations through patent rights and lax antitrust legislation. all these ways to try to move the share of income from, you know, these very highly paid people and these corporations, and more towards workers. there are tools that can be used, but it's not about stopping technology. i mean, there's been a french economist in town in these days -- >> in our show this week. >> made in a big way, and he arg gur goos, his solution, high taxes on income and wealth. distribute the wealth going to highly paid managers and owners of capital, owners of the machine, garining a bigger share of the national wealth. >> we'll hear from him later in the show. thank you so much. >> thank you. for more stories give me 60 seconds on the clock. it's "money time." a step towards combating smartphone theft. mobile companies have pledged to

include a kill switch on new phones next year. if your dwrevice is stolen, era and lock it. if found, the date tat were be retrieve. us airways won't fire the employee who tweeted a pornographic image. accidentally sent from a twitter handle. us airways calls it an honest mistake. hoops, hooter's and russia. nba player andrei kirilenko announced plans to open five hooter franchises in his native russia. the first known for waitresses will be in moscow. you're paying more for food and shelter. consumer prices rise in march as beef hit a record high and milk and veggie prices climbed. housing is getting more expensive, too, but getting a break at the pump. gas prices slightly lower in march. [ buzzer [. coming up, how do hackers make themselves unhackable? >> i don't actually know any of my passwords inside of my head. only one passwords.

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3 million of you, 3 million, hard numbers toys week from michael storrs about the hack attack ay monthed three months ago. 3 million people whose credit and debit cards information was hacked. cyber crimes, security bugs. what do the hackers do to keep their information safe? cnn money technology expert laurie segall joins me. >> reporter: unbelievable, you look what happened with michael's, and heartbleed, a bug that affected the whole internet. we're forced to say how do we keep ourselves safe? i spoke to ethical hackers. security researchers that hack for good. how we protect ourselves and how they protect themselves.

take a look. >> heartbleed is probably one of the largest exposures we've seen, at least i remember in 10 or 15 years, impacting almost all of the internet. >> reporter: david kennedy a security researcher and self-described ethical hacker called heartbleed the bug that broke the internet. >> everybody was affected by this. you had facebook affected. yahoo! was affected. a number of companies were, large companies we put our information in every single day were affected. >> reporter: while companies have worked to fix it, the security flaw is untraceable. making it difficult to tell if you've been compromised. >> if you use the interfete for any purpose, there will be an effect. >> reporter: robert hansen, also an ethical hacker, says don't use the same password for different sites. >> heartbleed, probably the first thing, go to your search engine, type in heartbleed check, and if you're going to do business with a website, type in the main into that form and see whether it is or isn't vulnerable to heartbleed.

>> reporter: how do hackers keep themselves safe? >> things like what are called authentication. allow you to enter a password and something else. gmail has it built in automatically. >> reporter: you're an ethical hacker and know how people hack. when you go to facebook, check your e-mail? >> i don't actually know my passwords inside of my head. i don't know my pass words. literally between 32 and 50 characters long and completely unique to where you've never be able to guess those. >> reporter: kennedy keeps his passwords stored in a password vault. programs like keypass and onepass for mac are built for this. >> pass wewords are an old way thinking. we need to move to other ways. biometric. swipe your finger, verifies who you are, all of a sudden, logged in, don't have to remember passwords and it's tied to this. >> reporter: the galaxy x 5 now

have them, as well as others, but both beaten by hackers. more advanced biometrics could help. voice, or even matter beat. for now, vulnerable. the ones that know it best take extreme precautions. we look at these guys, i want to make the point interviewing ethical hackers essentially, what they do, they can get into a lot of trouble if they find security flaws on the web and go to big company, there's something wrong with your system, unless there's someone who hired them to do that. the bugs are happening more and more. >> companies need to do more themselves to make sure somebody from the outside isn't letting them know something happened. laurie segall, thank you. and find my conversation online, the seiber sleuth who discovered the massive tart hack and michael's breach last year. weather's heating up. so is the economy. why we've turned a corner and what could stand in our way, that's next.

it's been a chilly winter for the economy, but we're starting to see a spring thaw. the job market is picking up. especially for new college grads pap new survey find employers will hire 8.6% new grads this year than last year. janet yellen says we've turned a corner in housing after two failed attempts to stage a correction, a good week finally for stocks. the s&p 500 up 2.7% this week and good news about obamacare the congressional budget office says the affordable care act will cost less in the next decade than previously thought. the economy may well be at a turning point. i'm not saying it's healed. the job market hasn't picked up enough for the long turn unemployed. if you have a job and a college degree, things are getting better. chief economist with the heritage foundation and a

co-auth co-author. nice to see you, stephen moore. >> great to see you, christine. >> you've been telling me for months, no, years, that obama c.a.r.e. will wre care will wreck the economy. not yet? >> i'm enthusiastic about that statistic about college grads finding jobs. >> me, too. >> because i have a son who's graduating from college. >> i'm really happy about t. the best news i've heard in a long time. look, i think kp obamacare is hurting business. talk to businesses, holding employment down to below 50 workers to get around some of the obamacare mandates and seeing -- you talked about some of the positive trends in the economy and there are some, but let's talk about some of those more neg liative trends, declin workweek and turning into a part-time nation. that's partly due to bv obamacare. new costs fall poun if more than

30 hours. >> 8 million enrollees, a victory for the white house this week. the president saying point blank saying, this is it. up guys out there saying this is a bad idea, stop talking about it, because we've got the enrollees. some are young, more young people than they thought. those young people are not going to have a medical catastrophe that's going to throw them into bankruptcy and hold them back in their lives. maybe spent money, stephen, and maybe that will be good for the economy? >> i'm not a true believer in a lot of the statistics. >> i know you're not. >> let me explain why. first, we know about 5 million people lost their health insurance. so 8 million may have gained, but 5 million lost. we also know that a lot of these people who have signed up for obamacare sdu obamasubsidies in exchanges, haven't paid premiums, if not, you're not insured and a lot of those people already had insurance just shifting insurance. we don't know for sure yet whether these number ares as good as the obama administration

is saying. >> ask you about this. you're a hero, champion of the free market, but thomas picketee's book, a beach read. the bible for those arguing capitalism is fueling a growing gap between tap earners and everyone else. a french economist. we need a more aggressive tax system. listen. >> the way people have been taxed in this country directly is through the property tax. the problem with the property tax, first, it's not progressive. we should transform this ideally into a progressive tax to reduce the property tax, but 90% of the population. >> tax the rich. for some reason i think you won't agree with him. >> god forbid we should follow economic advice from the french. they haven't been doing all that well in france. >> i knew you were going to say that. >> it's predictable. look it is true that europeans have experimented with these it kind of big, social welfare

states and high tax rates and it hasn't worked very well. what we ought to do, make america as kpesive bringing tax rates down, not up, to bring more capital and jobs to this country. you're right. i do believe that the job market is improving. we've seen that over the last two, three months. no question about it. >> yeah. >> but way behind where we should be. we still have 18 million people where they're unemployed, can't find a full-time job or dropped out of the labor force. not the salad days for workers trying to find days. >> and we have education skills mismatch. talked a lot about this. the president announce add plan to put hundreds of millions towards job training programs. listen to what the president said. >> not all of today's good jobs require a four-year college degree. but i promise you, there's not a job out there that's going to pay a lot if you don't have some sort of specialized training. so our best bet is keeping ahead

in the skills race. >> i think you and the president might have some common ground on the skills race. something we have got to have kids come out of high school with better skills and education, coming out of college or vocation with better skills and education and companies willing to invest in the training they need to get the workers they need? >> no question. very unusual i agree with the president. he's exactly right. if we want to be a high-wage society where the american middle class gets better off over time, then we have to have very skilled workers. there's no question about it. here's where i cringe, though. when the president says, we need more job training programs. do you know, christine, we already have 25 federal job training programs. my goodness, every other month we seem to create a new program. we always talk about college education. the true if you have a college educated degree you'll get a higher paying job pap degree in associationology, psychology, gender studies so on, there's not a high demand for that.

we need our college graduates with the kind of skills that employers need. >> full circle. that statistic. 8.6% growth expected this year for jobs for college graduates. those are jobs in accounting, mbas, jobs in economics. software and engineering. where the real growth is. stephen moore good luck to you and your son. >> see you soon. thanks. coming up, the good guy in a new book about wall street's bad boys. >> to think we've actually damaged the credibility of wall street any worse than it's done to itself over the last ten years is kind of funny. then you'll know how uncomfortable it can be. [ crickets chirping ] but did you know that the lack of saliva can also lead to tooth decay and bad breath? [ exhales deeply ] [ male announcer ] well there is biotene. specially formulated with moisturizers and lubricants, biotene can provide soothing relief and it helps keep your mouth healthy, too. [ applause ] biotene -- for people who suffer from dry mouth.

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high frequency trading getting a high frequency of spps lately. just subpoenaed six firms, come under scrutiny following release

of the michael lewis book "flash boys." using super fast computers to gain an advantage over everyone else. michael lewis is the author of a number of best-sellers including "liars poker," "the moneyball." brad pitt starred in the movie version and if this makes it to the dig screen, an a-lister will probably play this guy. i asked how the stock market has changed. >> people have always looked to gain the markets. right now the best way to do that is using technology. >> when there were humans completely in charge, you were getting, people were getting ripped off. right? so is it better or worse now? >> i'd say it's different. it's different, because it's not happening human to human. it's happening with a computer. and i think it actually makes it

slightly more dangerous when it's not happening human to human, because people feel i think more cavalier how a computer treats someone versus a human. in today's day it's happening in technology. keeping all the good things technology has brought but looking to use technology to eliminate some of that scalping we see happening. >> we know that fewer than half of americans actually invest in the stock market. they're really getting screwed because they weren't even in the stock market last year. i mean, do you worry about that all of this publicity around the book is actually pushing people away from the stock market, which could hurt them in the long-term. >> we've gotten thousands and thousands of calls. if anything, the opposite. it's given people the belief there are people in the market looking out for their best interests. if it's scared anyoneaway, i'll be the first to apologize. the fight in wall street, people

invested in the status quo and people who believe change needs to happen. to think we've damaged the credibility of wall street any worse than the last ten years is kind of funny. >> there's just kind of this, this kind of blind -- blind faith in investing and saving but not really knowing how much you're spoeupposed to have. most don't have the financial literacy for the basics and you go into the complicated architecture of financial markets and it gets even more difficult. >> when you look at the number of places that exist to trade. if there's only a single exchange it would be really hard for intermediaries to get in between buyers and sellers. there are 58 places to trade now in the united states. nasdaq, public companies. all the others started by intermediaries. by middle men. it skews the incentive structure more towards the intermediaries and places the traditional investors farther away from the

point of transaction. talked earlier about blind trust in the market. they know a little and trust the system works. and i think the biggest part about that is that trust has been broken. the markets should really just be a neutral place where buyers and sellers can meet. like a referee. you hope when watching an nfl team they're not skewed for one team to win over the next. >> the average investor, small account on e-trade, 401(k) through fidelity. should they be concerned or does it only affect customers in very large trading volumes? >> everyone in some way, shape, form is an investor. whether big or small, the problem still exists. it's our job to raise the elf will of education among all investors to make better decisions how their orders are handled. >> important to remember if not in the market you won't make any money from investing. don't shy away from stocks because of your fears about a rigged market.

regulators always playing catch-up. the biggest crime is not investing. a solid long-term strategy is your best bet regardless of what they're doing in dark corners of wall street. thanks for spending your saturday smart with us. have a great weekend, everybody. hello, everyone. i'm fredricka whitfield. welcome to the "cnn newsroom." a drone strike targeting al qaeda militants in yemen killed at least 15 people today according to yemeni defense officials. 12 suspected al qaeda members. the strike hit a pickup truck in southwestern yemen, an area known as a hotbed for the terrorist organization. live for us now at the white house. sunland, has the white house commented on this? >> reporter: fred, the white house is not commenting on it. they're not even confirming that this drone strike happened. referring all questions to the yemenee government. keep in