tv Your Money CNN October 11, 2010 4:00am-5:00am EDT
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houses of congress in november? >> first of all, let me say, christine, last month all the economists at the national bureau of economic research said the recession is long over, we're out of the recession. but what this report shows us we're still in a jobs recession and that's what matters most to americans. you're right, these numbers could not come at a worse time for democrats. they have to face the voters in three weeks. republicans are running on an agenda of change just like barack obama did two years ago. what they are talking about doing is stopping the spending, reversing a lot of the stimulus spending they don't think and i don't think has worked. they are talking about cutting
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tax rates for businesses to get they are talking about cutting tax rates for businesses to get them to hire more workers. >> one thing interesting about the job numbers i'll point out to both of you, one thing disappearing are stimulus jobs. some people are calling for we don't need stimulus, the stimulus didn't work. actually the pulling back of some of that stimulus, we're seeing it in these numbers. that could prove, stephen, the stimulus did work in some places. there are people working in the last few years because of the stimulus. >> the problem is you can't keep spending money forever. we did get a bump of employment when we spent that $800 million. what are we going to do, continue to run deficits for a trillion dollars the rest of our lives. the problem is here we are two years later after that stimulus started and we have a higher unemployment rate than when we began.
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it's a failed experiment. i do think radical changes for getting taxes down. >> i'm going let you respond there quickly. i want to make sure we have both sides of this. failed experiment or something that blunted the impact of a terrible economy? >> first of all it's absurd for stephen to say it's a radical change. what republicans are proposing is exactly what they were proposing during the eight years when they were in charge for most of that time and brought back the economy to the brink of collapse. of course the stimulus helped but it didn't help enough. the problem with the stimulus is it was inadequate. it did not really create the kind of jobs the administration hoped it would create. right now the solution is not to abandon any government efforts to create jobs. the private sector is sitting on hundreds of billions of dollars that they are not spending to create jobs. that's why we need to do what fdr did during the great depression. infrastructure projects. the infrastructure is crumbling.
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why not use this time to create jobs and renew our infrastructure, which is in desperate need of renewal even if we are at full employment. >> clearly distinct choices for the midterm voters are or there. i want to look at three major issues that matter to your money. taxes. president obama believes tax cuts should be extended. republicans say everyone, including the wealthy should get the extension. the president wants to exclude the rich. that brings to us the budget. both sides preach fiscal discipline. neither side is ready to raise serious money through tax hikes. if you're not going raise more money, you need to spend less. both sides agree the government should provide popular entitlements like social security, medicare. the rhetoric is similar when it comes to slashing debt without specifying sacrifices. one area of contrast between president obama and republicans, health care reform. republicans say repeal it. stephen moore, you've been a
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proponent of repealing health care reform. what other major differences can voters expect if republicans win one or both houses of congress. could they really repeal health care reform? that sounds like messy and difficult and almost impossible. >> christine, i don't know if they can get it repealed. i know this is a top agenda item for the republicans i've been talking to and i think they are exactly correct. you know, one of the things that ties into this loss of jobs and one reason i'm worried about where we're headed with jobs, the health care bill is just kicking in. that adds significant costs to employers. look what happened to the insurance premiums. i talk to small businessmen all the time and they say their insurance costs keep rising month after month after month. i do think suspending that bill or repealing it until we get back to 6 or 7% unemployment would make a big difference in terms of inspiring businesses to hire workers or at least stop firing them. >> arianna. >> the problem with businesses is not that they need to be
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inspired, they need to see where the demand is coming from. they are making business decisions. right now the problem is that while we all came together and spent hundreds of billions of dollars bailing out wall street, we have not brought the same urgency to bear to saving main street. even though, for example, we still have about $70 billion left in t.a.r.p. money. why not begin to spend that in ways that would create jobs right now. i mean, there's so many ways to do that. right now the "huffington post" has suggestions around the equivalent of fdr works and progress administration that build our modern infrastructure, green jobs in renewable energy where you actually create public-private partnerships. what republicans want a payroll tax holiday. basically we need to bring republicans and democrats together and realize that we have a major crisis in this country that is affecting young and old people. we have 4 million young people
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between 16 and 24 who are out of work. that is really basically killing the american dream at this most sensitive age. >> arianna, what you're talking about. everything you just said we did that. we just spent a trillion dollars on all those projects and it didn't work. >> we have to pay the bills here, believe it or not, and then we'll get right to this vigorous discussion. >> we didn't get jobs from a trillion dollars of spending. let's not do it again. >> everyone at home stick around. you have two minutes. coming right back after this break.
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all right. when we left off stephen moore and arianna huffington were having a vigorous debate. stephen moore we left it off with you. i want you to continue that thought, please. >> i was just saying what arianna was talking about spending more money on shovel-ready projects and more temporary tax cuts and other kinds of projects to hire teachers, we did that for the last year and a half. the one thing my daddy taught me, if you have a losing strategy, always change it. so this isn't working. we should try a radical change in direction.
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arianna, when you mentioned what president roosevelt did back in the depression, that didn't do much to end the depression. what is interesting is the last great recession we had was in 1979, '80 and '81, ronald reagan came in and cut taxes for businesses and individuals and we had one of the strongest and lengthiest expansions in american history. why don't we try that for once? >> stephen, you're rewriting history. the problem with obama policies was not that they were not effective, they are inadequate. in the stimulus $300 billion of tax cuts that you love. on top of it, you republicans have been complete hypocrites when it comes to the deficit. you want to add $700 billion to it by extending the tax cuts to the wealthiest americans. that doesn't make sense. let's find areas of agreement that would create jobs. start a visa program that would allow immigrants with skills and ideas to create jobs and come to this country. this has bipartisan support. >> i love it. >> they agree. >> we're in agreement. >> i love it.
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>> i want to bring in the director of the economic research institute. he's trying to get in there. >> that's a good discussion. >> this is where i saw you out of the corner of my eye getting excited comparing recessions and recoveries. this one is tough. this one is a real bear. >> absolutely. but there's actually some patterns here kind of typical. it's just that what we've had is a jungle variety recession as opposed to garden variety recessions we were used to over the last 25 years. i love talking about the depression, not because we want to go there but there's interesting insights if you look at what happened. hoover, before fdr in '32, raised taxes. nine months later the depression ended and the economy started growing at 10% a year for four years and unemployment fell by 11%. i'm not suggesting tripling the tax rate is going to give us a
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strong recovery but what i am saying it's more complicated than cutting taxes and increasing spending to get a result out of the economy. the business cycle is really powerful. it's more powerful than these policies of taxing and spending and interest rates. you can do things on the contours to take off the highs and the lows if it's politically what everybody wants to do, but you're not going to change or dictate the business cycle. >> don't tell that to the political ad campaigns, everybody heading into the next month. everyone is trying to use the economy for their benefit or to hurt their opponent. right, arianna? >> absolutely. that's why christine, what would be great if we in the media do a better job at putting the flashlight we have on people's stories. talking to real people about what's happening in their life is going to wake everybody up to the crisis.
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talking to brenda in atlanta, that i write about in my book, who lost her job in human resources, a good job after 13 years, has not been able to get another job three years so she's making homemade praline cookies and selling them on line. people are trying to make due. it's getting harder and harder and we need to address this human crisis. >> stephen moore, how are republicans going to make it any better? how can they make the job situation different? >> i hope what they do, christine, is add confidence to the business sector. the business community and employers really feel like there's been kind of a war on business in this administration with the cost of obama care. and tax increases and regulation. >> front page of the "wall street journal" said this was a hift turnaround around for many businesses in america. they are making money. >> those are large. i'm talking small businesses with tiny profit margins and feel like the added cost of regulations and health care and taxes are making it difficult to expand their business. >> we'll have a discussion about the economics of job numbers
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after this discussion of the politics of these jobs numbers. arianna, thank you very much. the book is fantastic. also stephen moore, "wall street journal "editor al, thank you. hiring for the holidays, what that means long-term to the job crisis in the country. who is hiring for how long next? the economy lost 95,000 jobs in september and the unemployment rate remains at 9.6%. with the private sector gaining 64,000 jobs in a month. it's not enough to offset a loss of 159,000 government jobs. those are mainly census and local government jobs, teachers, people who you will feel their loss. no question, even if you have your own job. bill rogers professor at rutgers
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the economy lost 95,000 jobs in september and the unemployment rate remains at 9.6%. with the private sector gaining 64,000 jobs in a month. it's not enough to offset a loss of 159,000 government jobs. those are mainly census and local government jobs, teachers, people who you will feel their loss. no question, even if you have your own job. bill rogers professor at rutgers university, former chief economist at the department of labor. september marks nine straight months of private sector job gains.
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private sector job gains even as the overall number went down. what does this tell us? >> it tells us the economy is moving in a good, positive direction. as many analysts say, we're still below that important level. about 120,000. >> it feels like a slog, a slog. >> a long slow slog out there. >> we look at another number. we look at this number. 9.5 million people are working part time but are ready, willing and able to work full time. that's a record high. 9.5 million people considered employed but working under their potential. >> this is the hallmark of the recession that has been loss in the jobs market. when you lose over 8 million jobs you have a lot of people who are underemployed as well. it's not just job losses but all the peripheral stuff. you're seeing the broader employment rate go back up to its recent high of a little over 17%. this is all because we are digging out of a huge hole.
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>> people listening to 17%, you're talking about the number of people who don't have a job or underemployed. >> called the real unemployment. >> statistics are a little imprecise but the picture is clear. we have a huge hole we're digging out of. we're digging out slowly. when they say the recession ends, all that means, it doesn't mean anything great is happening under your feet, it's just that you've moved the economy into the recovery room. anyone who has made it into a recovery room, it still hurts a lot. that's where we are now. we're slowly slogging out of that. private sector jobs growth getting nine months in a row, that means something. that's not about simply stimulus, that's also about employers being scared that if they do not increase their capacity, which means hiring another person in many case that they are going tos loose out. >> there's a big chunk of people in the middle losing out, 40% of unemployment americans have been unemployed six months or longer. that is an unbelievable number.
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you and i talked before about people left out as hiring comes back. are we at risk a big chunk of people left behind, jobs that aren't coming back? >> it's not so much an issue of jobs coming back where we had 1980s or 1990s outsourcing. that still is going on. it's just because they have been out of work such a long time they are probably not going to go back to that original job. so i think the challenge going forward whether we'll see an unleashing of inequality, depending on the administration and congress doing their focus of maintaining safety nets, so the adverse effects, long-term cost of the scarring of the recession won't be as great and also improving education and training opportunities, as i tell my students, now is the right time in a slow economy to be adding to your skills.
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just the other day at the white house i was meeting with an economist to talk about jobs. this was a group focused on minority issues. along with getting the broad economy growing. it's the tax cuts. it's more continued stimulus. there is starting to be a growing chorus of people in that room saying if we get past this election and unemployment is still high at 9.5, 9.6. >> you can bank on it. >> i'm sorry, means it will be 16 to 17% in minorities you're going to have to consider public sector employment. >> you can bank on it. rough numbers, 10% or so unemployed, half of them long duration unemployed. what that means is you've been out of a job six months or more. those half are being left behind. make no mistake the recovery, if it should strengthen, that's an if, if it should strengthen and start to get more sustainable, more believable and businesses
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start hiring they are still not hiring that half of the unemployed. the shorter duration unemployed, they are actually getting hired faster than we've seen in any recent recoveries. if you go to the shortest duration. what that means is you lost your job and you get hired back in under five weeks. a lot of people, about 20% of the unemployed fall into that group. they are approaching today the lowest -- or they are approaching record lows in history. the record low is 1.5%, 1.8% right now. so you see, if you don't have the skills the businesses want, you are left behind. i agree you might need some policies to try and do that but it's not going to happen fast. >> we need education system. there's a whole host of issues that will have to be addressed. that's what makes this a problem for our generation not just the recession. we have to leave it there.
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all right. take a look at this. over the last 12 years the number of older workers staying on the job has steadily increased. we're now at 18% by the year 2018 an estimated 2% will delay retirement and keep working. ted fisherman is the author of shock of gray. what does this mean for us, the workforce? >> it means you are getting more workers. the baby boomers are moving into the workforce and many of them want to stay at work. they don't all want to stay at work for the same reason. >> some are doing it because they have to. some are doing it because they like to. >> the numbers who have to are going up. that's one of the shocks of the
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numbers you talked about in the last segment. >> the shock of gray. why are young workers directly competing with older workers when it comes to jobs? >> well, it's a global phenomena. older workers are eased out of full-time employment, regular employment, lifetime employment a little younger than they had in the past but they still need work. they reenter as temps, self-employed, part-time records. they have a track record. they have been vetted by the workforce. sometimes they are under written by a small pension or social security so they can get by for less. when you pit them against a younger worker who comes in and really needs to live on his paycheck and has no track record, a lot of times employers are going for the relationship with the older worker when they can take them out on contract, not pay them as much but still get the proven worker. >> we're seeing a shift between
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the older worker and entrepreneurship in the country. those over 55 years of age almost twice as likely to found successful companies when compared to younger workers. are older folks a good hope for economic growth? >> yeah, i mean, there's two subsets of self-employed, the capable entrepreneurs, always capable. when they are older they have great networks. they have skills. they have people they have done business with. they can charge and create businesses. there's a much, much bigger number of people self-employed because nobody wants to hire them. they are not the growth engine for the economy, although they do take some of the economic burden off supporting the older population. >> all right. the book is fascinating, shock of gray. ted, thanks for coming from chicago. have a great weekend. >> you, too. thanks. >> that last graphic looks promising, starting a company it isn't a reality for older folks out there. how do you go about your job hunt the old-fashioned way
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without looking dated? robin ryan the author of "over 40 and you're hired." ted just mentioned there's direct competition between older workers and younger workers in terms of pay. what are some other reasons older workers are having a tough time? >> employers are sending a very clear message. don't look old if you want to get hired. that means not just your appearance. your appearance does count. but don't look old on your resume, in the way you use technology, in the skills you bring to the job, the innovations, accomplishments you have. it's very complex. they have got to worry about, how do i sound old in my interview? what do you mean my resume is old looking? how do i fix it. >> i have a friend who, believe it or not, in her 40s, who works for a top tech company and does not carry "wall street journal" and financial times in her briefcase when she goes to headquarters because all the young guns do not have
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newspapers the way we mature journalists do. everything is on pda. she said you look roochbd around -- pda may be an old fashioned term. let's start with appearance. have you a list here for us. your appearance, you -- tell us about that. >> you have to look vibrant and contemporary. make yourself over. first find a suit. if you're a woman, you can wear a dress with a nice jacket. if you're a man, maybe a blue shirt with a tie and suit is going to look better than stark white. but the fit is critical. it can't be pulling the buttons apart. i recommend you do anything you can to make yourself look more appealing. and that means vibrant. smiling, showing energy, showing
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enthusiasm. as we get older we sometimes get a little jaded. because they haven't interviewed, they are oftentimes looking robotic, uninterested and worn out. so making sure that the makeup is light and you've got a contemporary hair style. diet, if it makes you look younger. if you do dye your hair a man, remember, moustache and beard, dye that or better yet, shave it off. floirs like clean shaven. >> you say update the resume. that's important. in my new book i just wrote i've got examples of cover letters as well. cover letters are incredibly important. you have to sell yourself in the first line. >> you have to use the power impact technique, which says this is what i'll bring to your job. for a lot of older workers, they are writing something that was a long time ago. you've got to get them past. use bullet points. over the last ten years i do this and that. notice how i don't say i've got
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25 or 30 years of experience. that's too much. focus on the last ten years. >> 25 or 30 years of experience immediately to a 35-year-old hiring manager says, wow, that person is my dad's age or mom's age. we know there are almost five workers for every available job out there. you have to beat out four other people. these are valuable tips to do that. if you're over 40, here is how to do that. thanks, robin. >> thank you. next, paula deen. paula deen is here. plus a new way to get funding for that small business you've always wanted to start. we'll tell you all about it next. they're discovering simponi®, the first self-injectable r.a. medicine you take just once a month. taken with methotrexate, simponi® helps relieve the pain, stiffness and swelling of r.a. with one dose once a month. visit 4simponi.com to see if you qualify for a full year of cost support. simponi® can lower your ability to fight infections, including tuberculosis. serious and sometimes fatal events can occur,
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she's got a new fresh look to her own magazine. paula, you're going to come back later in the show with some wallet friendly tips and healthy for children, but new recipes for us. >> absolutely, yes. meals are easy on the pocketbook and easy on the labor y'all. >> this the third time i've interviewed you. i was so inspired by the first two, i included you and some of your great advice about families and kids in my new book, "smart is the new rich." >> thank you, christine. >> i'm pleased to have you on the show to talk about those things. >> oh, my gosh. thank you so much. >> stick around, everybody. we're coming right back for that. we want to show you this incredible segment. if you have an idea for a business, finding the money to get it off the ground isn't easy. >> no. >> first order of business, you need to know where to look. he isn't your grandmother's butcher. more than 200 people showed up
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on a wednesday night to watch boston area chefs demonstrate how to break down a pig. >> it's good to get the name out there, keeping up the buzz, the anticipation. >> the anticipation is over the butcher shop vadim hopes to open by the end of the year featuring locally raised sustainable meats but raising money has been a challenge. >> financing has been hard. >> after liquidating a 401(k) in the spring, connected with a site called, kickstarter.com. send an idea. if it's approved you set up a page with a fund-raising goal. backers, every day internet users donate cash and receive rewards in return. >> it's not charity. >> it's not charity. it's somewhere between patronage and commerce. >> more than 200,000 people from all over the world have given $20 million to projects since kickstarter has been around.
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>> there's another one going crazy. it's called glif, a clever iphone stand. >> the makers of the stand raised $36,000 the first day online. >> what do they get in return? >> they get the stand for 20 bucks. >> vadim raised $16,000 from 200 backers online, enough to secure a five-year lease for his shop. >> the majority is from boston. but we've got people as far away as finland. it's really humbling to see that many people want to have your idea. >> sites like kick-starter, pier to pier lenders like prosper, virgin money and lending club are intriguing alternatives when banks and private investors aren't handing money out. >> these kind of services can be great in terms of really kick-starting the business. that was never available before. you were spending most of your time wandering down dark alleys trying to find someone to give you money.
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secretary of state hillary clinton announced united states will provide $50 million over the next five years for clean burning cook stoves in africa, asia and south america. the company by the name of energy in common is bringing clean energy to the third world in a slightly different way. the founders took a trip to ghana recently to see how things are panning out. >> without energy you can't pump clean water where it needs to be.
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energy for education. you can't allow classrooms and children to study after dark. you can't bring classrooms into the 20th let alone the 21st century without energy. energy for health. you can't have modern medicine, refrigerate vaccines. all of these things revolve around energy but energy receives virtually no attention. i'm the ceo of energy in common. >> we allow people here to connect with the developing world and allow them to get access to the energy that any really need. >> the people in the developing world, the vast majority struggle day to day to get the energy they need. they spend up to 30% of their household income on expensive polluting fuels. those fuels kill them slowly through air pollution, which kills more people every year through malaria.
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loans for clean burning stoves, solar lamps, anywhere from $20 to $1,000. >> they don't have any pains in the eyes or the chest. we believe it's solving environmental problems it's also solving their health problems. >> there's 2.4 billion people in the rest of the world that don't have that access to energy. if you think about sustainability and going forward, you think about 2.4 billion people lifting themselves out of poverty. >> has this light made a difference to you? >> yes. >> how has it made a difference. >> it helps me to sew in the night. that increase my money. >> the only thing that we do is attract attention to the need for more resources for energy for the poor. >> it's important to note all entrepreneurs involved in energy in common plan to pay back the
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loans in full after they paid the emissions reduction to the entrepreneur available to the lender as carbon off sets. the term carbon offsets is one we hear more about. we suspect people only have a vague idea what this is all about. here to break it down is dan, back of the napkin fame. what is carbon offsetting. show us on the back of the envelope, if you please? >> good morning, christine. my pleasure. i believe we can solve problems with pictures. the problem we're looking at now is what is a carbon offset. it all comes back to one big roof problem, the world is heating up. the reason the world is heating up is because we're putting lots of carbon into the atmosphere. there's two ways we could deal with reducing that carbon. from a business perspective, just tax people. the more carbon you put out, the more tax you play.
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the second model, where cap and trade comes in, the government decides on a total cap. the total amount of carbon that can be released into the environment in any given period of time by any given industry or nation or organization. so what happens is since it's a cap, everybody is allocated a certain amount of carbon that they are able to put out. it is a cap. you can't put out anymore than what you've allocated. where a credit comes in, you see this money isn't using all its allocation. if you're this company that's got too much, you are going to buy this free allocation which we're going to call a carbon credit. that's where the trade part of cap and trade comes in, the idea being under this cap you set up a marketplace in which these two companies trade back and forth, one who needs to put out carbon with one who has the carbon off
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sets. in a way, back to the earlier story, you can think about carbon offsets as cash. people will pay money to get them. >> all right. dan roam, thank you very much. paula deen, so pleased about this. paula deen is all set, ready to go, next healthy meals to make you a deal, but only if you really want it. the brains behind yipit. daily discounts based on your preferences. >> the problem with the daily deal services everyone gets the same deal. so you get a lot of e-mail in your inbox that's not relevant
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to you. we try to organize all of that and make it if you only want health and fitness you only get health and fitness deals. >> reporter: starting zipit in 2009, the former finance guys had to trade in their suits and secrets. >> in the business of confidentiality and servicing clients in a discreet manner. and then when you're in the entrepreneurial world, completely different. no one cares about your idea. ioer you have to tell everyone about your idea to test it out, for advice and to get feedback. >> reporter: with so many coupon sites out there, yipit wasn't gaining traction. in february the guys took a risk and changed their business model by pivoting, they call it. they started by just listening. >> how did you first find out about it? >> whenever anybody hit the button, e-mail them offering a $10 gift card and asking why they unsubscribed. many of them would hop on the phone with us and gladly give us
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lots and lots of feedback. >> reporter: thav pivot paid off. >> there are so many sites, new ones every day. as long as they keep changing as far as being able to customize what people want, because there are so many out there, they'll be super successful. >> reporter: with over 60,000 subscribers, the goal is to recommend deals in 40 u.s. cities and go international. making money through commissions and a new round of finding some investors has also allowed them to expand their offices and their employees. >> these two people, now we're five. >> it's a nice place to all go, and really enjoy ourselves and actually try to build the company. >> reporter: stephanie elam, cnn, new york.
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paula deen, we are so happy you could be with us today. contrary to popular belief, she does cook without butter occasionally. these are recipes that don't include butter that are healthy and economical and good for a tired mom like me who has to use a crock pot when she gets home. >> right, christine. you know, the crock pot can really be your friend. and in this issue of the magazine, "cooking with paula deen" and we talk about crock pot cooking. and this is a three-bean soup. it's made up of three different
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types of dried beans. everybody knows how healthy -- >> right. >> -- dried beans are. >> flavor, too. >> yes. your flavor, yes, and it will -- if you pull it apart, it will give you enough meat that your family will feel like, if they're real meat lovers. you'll get a chunk of meat. here's the deal. these beans are so rich in protein for the children, and it's quick, easy and delicious. >> so take me over here. you have something here that is a twist on your normal, easy, boring spaghetti sauce. this is vegetables. another way to get the veggies to the kids. >> oh, it's so easy. listen, just put everything in this crock pot. plug it in. cover it up. >> is it going to turn into goo if i keep it in there too long or stay good? >> oh, my goodness. >> delicious. >> how delicious is that?
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and parmesan cheese. >> serving it over linguine. >> uh-huh. and most children love pasta. love pasta. i think they're born with a macaroni and cheese gene. it really is all about moderation. because there's so many different types of food that we need. first one more than the other, and you want a lot of balance. >> is that your message for parents trying to struggle with jobs and busy days and feeding their kids? healthy balance? >> yes, yes. >> moderation. >> yes. healthy balance, and, christine, there is -- we do have problems in our country right now. so many people are unemployed, and i'm partners with smithfield hams. yesterday we were in jersey and we brought into the food bank 30,000 pounds of protein. >> fantastic. i knew were you involved with this same group last year around thanksgiving. wasn't than the famous flying turkey episode or something?
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>> flying ham. swine flu. >> thank you so much for stopping by, paula deen. >> thank you. >> recipes fantastic. magazine looks so nice. >> thank you. i'm so proud of this magazine. we just celebrated our fifth anniversary. "home cooking with paula deen." >> love it. thank you so much. >> thank you, darling. >> thank you for being game for -- i'm going to give you the book where we talk about our -- >> i want a copy of your book. >> i got it for you i. want you to keep a copy of this magazine because it's important to me that i can help you young mothers out there juggling a lot of balls in the air. >> you've been there. you have been there. >> i think this is going to solve some of your problems. >> all right, paula dean, thank you so much, paula. so nice to see you again. >> look at us, we both have on red. >> that's it. wrapping up for this show. hope you will connect on twitter. i'll get these recipes for you
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