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tv   Your Money  CNN  June 7, 2014 11:00am-11:31am PDT

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their children couldn't be around? someone who would interact with them, perhaps call for help, if there was an emergency. that's where this technology is heading. next year, you will go on sale to the domestic market. the price tag for a base model just under $2,000 u.s. dollars. this is the future. you're looking at it right now. will ripley, cnn, tokyo. >> okay. i don't know if i'm excited about that or not. all right. that's going to do it for me. i'm fredricka whitfield. back at the bottom of the hour. first, cnn "money" starts right now. we've now gained back all the jobs less in the recession, but most of you still think the american dream is out of reach. christine romans, and this is the new "cnn money." 217,000 jobs created last month, and a milestone moment. 8.7 million jobs were wiped out during the financial crisis. now, more than four years later, the u.s. economy has finally
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gained them all back, and even added a few more. don't feel like popping the champaign? i don't blame you, at four years-plus, the longest jobs recovery since 1939 and we're still years away from full employment. 59% of americans pommed nearly six in ten say the american dream is impossible to achieve. yes, the jobs market made a decisive turn, but is it too late for the american dream? cnn's global economic analyst at times assistant managing editor and adviser to the german insurer. let me ask you this. jobs are coming back. is's that enough to jump-start the american dream and help people feel better about the economy again? >> it's an important component, but it's not enough. i mean, it's great news that we created 217,000 jobs last month, and that as you say, we're back to the prior peak. now, that peak was in january 2009, and it took us a long time.
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so people feel it's taking too long, but importantly, it's the quality of jobs. it's the fact that wage growth has been really anemic, and it's also the fact most people feel they don't have the same opportunities, and that's why the survey shows that people are worried about the american dream. >> more than just the job market. there's a lot of things that we're watching here that make us feel good, or feel cautious about the economy. we are starting to see some solid middle class jobs coming back. the last couple of months in particular, not ready to declare a trend but i see a broad mix of different kinds of pay scales and different kinds of sectors. that's good. >> that is good. this is the fourth year now of really solid -- excuse me, fourth month of really solid job growth. as you say, across manufacturing, retail, health care, travel, tourism. there are this, you know, broad range of jobs created, but i have to agree with mohammed, that it's not just about quantity. it's an quality and the fastest growing categories, frankly, are still at the low end.
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seeing a lot of low-end retail job, clerical job, service jobs, travel and tourism and wage growth is very flat still. we're not feeling this in our wallets yet. >> yeah. gained maybe 5 cents an hour, the average wage, mohammed, in the most recent month. saying, don't spend it all in one place. wages have been going flat for middle class jobs for some time. let me ask you this. the white house, mohammed, says there's more work to be done and policies to enact to help people in the jobs market. specifically, raising the minimum wage. is there more washington can do? policy initiatives to be done, especially now a tail wind of a growing jobs market? >> oh, it is a lot more than washington can do. right now it's mainly the fed that is acting. congress has been polarized and congress actually has done very little in terms of policies that promote growth and employment. my worry is that we are going to hit a wall at some point.
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not now, but later this year when we get to the long-term unemployment, where issues about competitiveness, education, productivity, become absolutely critical, and we are doing very little right now to address long-term unemployment. what we are mainly doing as a country is addressing short-term unemployment through a very active and experimental federal reserve. so there's a lot more that congress can do, but unimport t unfortunately, not likely more to the end of the year. >> the economy is back and moving in the right direction, but tell that to the overeducated and under employed millennials. 63% of americans polled say most children in the united states won't be better off than their parents. young people aren't getting the right degrees. they're taking on too much debt to get the wrong degrees. this is still a really big problem, because even though you've now recovered all the jobs lost in the recession, tell that to the class of 2008, 2009, 2010, 2011, 2012 and '13.
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there weren't jobbed create es all of those people? >> sure. jobs are coming in when wages are flat, coming in at a disadvantage paywise. specifics show you never make that up in the course of your lifetime. you come into a weak labor market you'll take a pay cut the rest of your life and it's worth saying more millennials than ever before are living with mom and dad. saying something about the economic state these kids are in. >> living with mom and dad and all of this student debt. they're coming out of school with all of this student debt. many call it a bubble. taking out all of these loans chasing after degrees that aren't fles lynecessarily going them jobs. what do we do about that? >> so first and foremost we deal with the education issue and we deal with educational reform, and it's about the knowledge economy. you know, the world has changed, and the education system isn't changing fast enough. what we need today is an
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education system that teemp tea you not what to think but importantly how to think because things are moving quickly. we need to do something about education. student debt will become very important. there's a notion of a debt overhang. when you have excessive indebtedness, that stops the system from adapting quickly. and student debt is becoming the next problem to solve. so there are real issues. it's good the economy improved but there is longer term structural issues that need a lot of attention, and need sustained attention. >> you know, mohammed, the last couple of weeks we've explored whether the availability of student loans, so much student loans, actually encourages universities to take that money, not reform the kind of education that they're giving students, and just raise tuition? is it making the bubble worse? all of the student loan availability? >> that's a tough question. it's a good thing that students loan, available because people then can get education that's
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not constrained by how much money they have right now, but does it more fundamental issues. what's pushing our universities, and what's pushing our schools to reform? and the push isn't strong enough for the set of schools and universities as a whole. >> all right. mohammed, thank you. rona, nice to see you both. have a nice weekend. one of our favorite websites got an upgrade this week. ours. what you need to know about business, investing, the economy, tech and personal finance plus new sections. and new features. check out #newjob. an instagram collection of people starting a new gig all on the new cnn money and the new cnn money app. general motors says no conspiracy or cover-up. 13 died because of a pattern and neglect. families areic taing issue how gm is counting victims. >> her death is not being
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counted, it means like it doesn't matter. to us, that's what it feels like. it does doesn't matter to gm that she died in this car. >> one family's fight for justice, next. ♪ 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.
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an internal probe at general motors says the long delayed recall just the result of bad management. the company says 13 deaths were caused by the faulty ignition switch but acknowledges that number could grow. one georgia couple says their daughter's death was caused by the defect. that family pledging to keep fighting. >> the pattern of incompetence and neglect. >> reporter: gm's ceo admitting the auto giant's failures n. short we misdiagnosed the
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problem from the very beginning. >> reporter: but those words aren't enough to the parents of brooke melton, who died driving a 2005 chevy cobalt on her 29th birthday. >> i kept thinking that this is not possible. it's her birthday. it can't -- this can't have happened that she died. >> when i touched her hand it was cold. i knew in my heart and gut there was something wrong with the car. that it wasn't her fault. >> reporter: it was here that goode state pa prol says brooke molten's 2005 chevrolet cobalt hydroplaned on a rainy evening four years ago. the car spun out and was struck by another vehicle and dropped 15 feet into this creek. the accident report says melton was driving too fast for roadway conditions, causing her to lose control of the vehicle. >> he was driving 58 and the
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speed limit was 55. do you believe that that could have caused the accident? >> no. i believe that she lost power. >> reporter: it's now known the ignition switch on her cobalt was defective. this analysis of the data report shows the switch was in the accessory position at the time of the crash shutting the engine off and disabling the air bags, power steering and anti-lock brakes. >> were e believe the evidence is overwhelming that the defectses in this key system resulted in brooke's loss of control and her death. >> reporter: gm would not comment on the data recorder information. the defect led gm to recall 2.6 million are ka cars, but before they settled for an undisclosed amount and now are fighting an uphill legal battle to reopen it. >> they thought they had the truth when they settled their case. we now know they had some of the truth but not all of the truth. >> reporter: in a new lawsuit, the meltons allege that gm hid
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key documents from them and say a gm engineer lied in a sworn deposition. >> we did the design release engineer for the ignition switch in the '05 cobalt. >> yes, i was. >> reporter: the melton's attorney gave him part of the dep shooigs denied approving any changes to the ignition switch. >> there was never a work order that i saw hot lining this. >> any such change was made, if was made without your knowledge and authorization? >> that is correct. >> reporter: but in 2006, digiorgio signed this form authorizing a switch making it harder to turn inadvertently. >> this subcommittee will come to order. >> reporter: the gm was asked about this. >> you know he lied under oath. >> the date indicates that but i'm waiting for the full investigation. >> reporter: that full investigation came out oun thrs and digiorgio is among 15
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employees dismissed from gm. he did not return cnn's calls. gm denied an interview with cnn but denies it fraudulently concealed facts in connection with the melton matter and gm denies it behaved in improper behavior in that action. the automak makmaker insists 13 died. they only admits air bags that been inflate. >> 13 deaths, 47 crashes. >> and they're playing with numbers that they don't count brooke's death and she's dead because of that ignition switch. >> reporter: why is general motors only counting frontal yashs where air bags did not deploy? >> we've analyzed all the information available to us based on one specific definition, as you describe, we've counted 13 people. >> her death is not being counted, it means like it doesn't matter.
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>> reporter: poppy harlow, cnn, marietta, georgia. gm says it's prepared to raise the death toll based on the criteria set by ken feinberg, the compensation expert. the company has hired him to pay out claims to those killed or injured in accidents. coming up, cops in los angeles are using an innovative computer program to fight crime but it's rising privacy concerns. we'll take you inside a city of tomorrow, next. other vo) when i was pregnant... i got more advice than i knew what to do with. what i needed was information i could trust on how to take care of me and my baby. luckily, unitedhealthcare has a simple program that helps moms stay on track with their doctors and get the right care and guidance-before and after the baby is born. simple is good right now. (anncr vo) innovations that work for you. that's health in numbers. unitedhealthcare.
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narrator: these are the skater kid: whoa narrator: that got torture tested by teenagers
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and cried out for help. from the surprised designers. who came to the rescue with a brilliant fix male designer: i love it narrator: which created thousands of new customers for the tennis shoes that got torture tested by teenagers. the internet of everything is changing manufacturing. is your network ready? the lapd is watching you, if you're in los angeles county. a cutting edge computer program is tracking every car on the road, and bringing it together pieces of information into one database. cnn's rachel crane takes us inside this technology and explains why some feel its violating your rights.
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>> reporter: since the earl 1990s, crime rates have steadily declined across the country. one possible explanation -- smarter data-driven policing. here in los angeles, the lapd is embracing new technologies and big data analytics like never before, changing the way we fight crime. watch commander sergeant kennedy who shows how big data analysis is ing cha changing the force. >> our license plate reader. three cameras attached to the light bar. >> reporter: license plate readers installed on pa control cars, common place and automatically scan every license plate they drive by. >> goes through the sacramento database to check for california vehicle systems to see if it's stolen or if there's a want on it for some reason. be on alert. $30,000 warrant on the parked car we just passed that's behind us. >> reporter: over the course of the day, the lapd can scan tons of thousands of license plates
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across the city. at the realtime response division, they're fed into a game-changing data mining system. a powerful application that can claim the cia as an early investor. >> it's a federated search system. it combines disparate data sets, allows us to access them quickly with a single key stroke. you get the effect of a 30-person task force. >> reporter: after searching over 100 million data points, it displayed an impressive wealth of information on one burglary suspect linking into cell phone number, arrest records, known associates and past addresses they could even track the suspect's past locations based on previous license plate scans. >> searching for him, we don't have to search all of l.a. county. we know where he frequents. >> anybody who is a vehicle owner is then -- >> anybody who's a vehicle owner a public place and has passed a
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license plate reader will be in our data set. we cannot just go searching for you or anyone else without a reason, because we have a lot of data for people who have done nothing. >> reporter: for those people who have done nothing, the aclu of southern california believes the lapd license plate readers may be violating civil liberties. >> a system of license plates reerds pervasive enough to track the movement of every car in the city in reasonable detail would substitute gps trackers. the public should decide the difference. >> reporter: the lapd believe the public wants it on their side. >> you want the effect of 30 detectives working that burglary or auto theft. it is hugely important to make those cases solvable. >> fascinating stuff. coming up, forget driving to the airport. waiting in line, dealing with flight delays and all the hassle with air travel, imagine stepping into a pod, zooming through a city and then you're
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loaded right into your plane? the future of air travel -- next. any projects on my home. i love my contractor, and i am so thankful to angie's list for bringing us together. find out why more than two million members count on angie's list. angie's list -- reviews you can trust. now they're part of our 2 for $25 guest favorites!r one olive garden dishes. get your all-time favorites like creamy chicken alfredo. plus unlimited salad and breadsticks and dessert. 2 for $25 guest favorites
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all right. every time you book a flight, the airline makes an average of $5.42. that's a profit margin of only 2.4% according to comments this week from the international air transport association. so no monitor why your last flight was jammed packed. cost-cutting, rising fees, aging fleets, many passengers are frustrated with air travel, but the next generation of planes promised convenience and ease and bigger profits for the airlines. cnn international's esa flies us across the skies of the future. ♪
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>> reporter: in the 1970s, the future of air travel looked supersonic. concorde hu concorde heralded a time of fast and luxurious travel. briggient engine ie brilliant engineering, the economics didn't add up. concorde speed came as a price. a noisy gas guzzler. the characteristics that today's planemakers need to cut. efficient green in performance is what's steering 21st century production. >> well, the energy problem is one of the major drivers of us, of course. so we have to do something about it. reducing fuel burn is one way we do everything. very successfully in the past. another one, switch to lem trick drive. one concept. >> reporter: a vision of the future. concept plane packed with engineering dreams. bionic see-through skins giving panoramic views.
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materials have don't corrode and plans for speedier boarding. >> taking a plane could be as simple as taking the subway. >> in the future we could think about city center check-in and actually transport little pods to the airport where the passengers are already in, and just get with the pod, slide it into the airplane, in order to have a seamless experience of flight. >> reporter: cheaper flights have driven the growth, and with air traffic predicted to rise by more than 4% a year, the prospect of free flights is on the horizon. >> the airlines may not take the money from the passenger directly. it may be from somebody who has an interest of you flying somewhere. medical services, for instance. you are confined in a space sitting on a seat which might be quite technical, might sense body behavior. for quite a while, and somebody might be willing to pay thor this type of thing while you fly. >> reporter: the final aassembly
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line, the world's biggest passenger aircraft and the flagship of the airbus fleet. now, so far 132 of these planes have been delivered to customers around the world. now, you'd have thought that once production starts, innovation stops. far from it. this is about constant redevelopment, making production smoother and improving performance. >> today we have flying parts, today, built on 3d printing materials. an organic bionic shape we couldn't do with traditional manufacturing. cost effectively. this is the big evolutierybo ev. passengers won't see it. >> reporter: while the sun may have set on supersonic passenger flights, the speed of the manufacturing revolution is gathering pace. bringing with it the prospect of a greener, smarter and more sustainable future for flight.
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wow. all right. thanks for being a part of the new cnn "money" each saturday 2:00 p.m. eastern, the money news that matters most. so set your dvrs and check out the revamped cnn money site and upgraded mobile app. find everything from jobs to are kas, inequality debate and how the rich spend their millions. have a great weekend. hello, everyone. i'm fredricka whitfield. the big stories we're following in the "cnn newsroom." actor and comedian tracy morgan is in critical condition in the hospital after a terrible crash on the new jersey turnpike. morgan had just performed a comedy show in delaware last night, and he was in a limo bus driving in mercer county, new jersey, early this morning. police say a tractor trailer hit the