bring home big bucks. i'm fredricka whitfield. i'll be back in one hour. "your $$$$$" starts right now. >> from a land of opportunity to a land of confusion, the numbers say an economic recovery is under way in america. why do so many feel left behind? i'm christine romans, welcome to "your $$$$$." ali velshi is offer. hiring is picking up as employers added more than 200,000 jobs per month for three straight months. even the housing market leaving room for optimism 8.8% compared to a year earlier. an associate professor at columbia university. we'll see what we can get those two to agree on. i want to start with assistant managing editor for "time" and co-wrote "the wimpy recovery."

in the piece you asked people to honk if you feel the recovery. the signs are there but no honking. >> you don't hear honking in the streets. we're in recovery. in fact, weaver been in recovery for two years. it really says something, a lot of us aren't feeling it. the numbers are there as you mentioned it. this is bifurcated. the fact stocks are up, people who own stocks are wealthy. they are wealthy. a lot at the top, fast growing at the bottom but not enough in the middle. we've got a two-speed recovery. >> a lot of people saying that. another thing people with money feeling this recovery, people without aren't. i think that's something we can agree on. let's talk about mitt romney, the front-runner for the presidential nomination. he acknowledges a recovery is under way. he says he would be doing a lot better if he was in charge. >> i'm somewhat experienced in the economy. i'm not an economic lightweight. president obama is. we're not going to be successful in replacing an economic lightweight with another

economic lightweight. we have to replace him with someone that can run the recovery. >> he's saying if there's a recovery under way he has to say amidst the economic recovery, i'm the guy to really know how to make it better. >> it's interesting you see the shift. you have to recognize reality. we're seeing economic indicators point northward, up. his message shifted to, look, we could have done better. somebody like me could have done better. he points to the 1981 reagan recession, shorter, more robust. he says if you have somebody like me in charge, i can make this better. whether or not that's a fair comparison is beside the point. i'm not going to sit through that and tell you 25 years and two different types of recessions is a fair comparison. what i am going to tell you that's his argument and the one he's trying to sell. >> he's trying to change his tone, his supporters say it's a great line. we live in the country where we

built the hoover down and interstate system this president can't build a pipeline. he's trying to say if things get better he will leverage it. the president has to be careful about crowing about an economy that people aren't feeling. >> since the beginning, the economy is broken, president obama is responsible, has no idea to fix it, all things pointing downward unless he gets out of office. because it's pointing upward he has to celebrate it. the obama administration has done a terrible celebrating its successes and showing how it prevented the disaster from being worse. he can't flaunt that as people don't have work, living wages, has he to strike that balance and i think he's doing a decent jobs. >> jobs are part of this scenario. 200,000 jobs created three months in a row. we know this week you saw jobless claims the lowest in four years, fewer people heading to the unemployment line.

i say these things on television and get hate mail from people who say my brother can't get a job, out of work 14 months. don't overstate the strength in the labor market. a lot of people coming back and getting jobs for much less pay. >> going back to what happened in the '80s, '90s versus now. here is an important fact. every recovery since 1990 has been weaker and taken longer since the last one. this is the weakest and longest recovery in history. so there are just a lot of people out there either not coming back into work, or when they do having jobs much less than what they settled for before. >> inversely proportional to the speed of the economy. >> i agree 100% it's a physical fact that every recession has been longer and more painful starting in the '70s we've had this technological and industrial shift in the united states. that being said. you want a fair criticism of how obama handled this recovery you can make the argument very strongly he got distracted early on in his presidency.

>> by health care. >> considering cap and trade. talked about things and put attention on things that had nothing to do with the recovery thus prolonging it. >> i don't agree with that. i don't think they are competing agendas. it may have the political perception but i think he can walk and chew gum at the same time. >> whether or not the massive business sector across the economy not knowing future taxes, not knowing future regulatory scheme would be felt good investing in this economy. >> if i can jump in on taxes. warren buffett one of the greatest investors in the country if not the world said there was more investment in the '50s when taxes are higher than they are now. it's investing in education that will help us complete globally. that's what we have to do. >> i didn't make an argument about taxes, higher or lower. i made the argument in 2009 when faced with a massive recession, largest economy in the world you're going to restructure 20% of it in health care, impossibly

more with cap and trade injects a massive amount of uncertainty into what you hope will ab recovery economy. >> first of all, the mass anxiety the uber risen have that when there's a proposed bill. >> not just wealthy, business. >> the mass anxiety was not because of health care reform even though many didn't like it, the mass anxiety is their business went off a cliff. one of the real problems this administration and a lot of people underestimated how hard it was going to be to get out of this mess and at the same time was pushing, you know, the president's signature legislative agenda which will vastly remake the health care system. >> 50% of the american economy. that's what health care, energy on top that, cap and trade. >> i haven't heard the words cap and trade. >> you did in 2009. >> it wunt at the top of the agenda, very quickly pushed off the table. democrats pushed off the table

more than anyone else. >> three things to focus on they figured out two. stimulus, health care, cap and trade. cap and trade but we know the three things they focused on. >> it's something that quickly ended the conversation. >> i'll jump in and just say on health care because i think it is something worth bringing up, it was a huge issue, a huge thing to bite off. you can make the argument you just made but i think that it wouldn't have mattered because ultimately president obama did try and get through infrastructure change. he tried to make investment there and in education which any company will tell you -- i'm out talking to companies all the time they say we've got three or four joshs in high-tech airs they can't fill. >> the nauseous feeling you get when you go to fill up your car with gas. the biggest threats to recovery next on "your $$$$$." [ female announcer ] lactaid milk is easy to digest.

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gas prices are up nearly 20% this year. the national average creeping de los that $4 a gallon mark. everybody wants to know why gas prices are rising so rapidly and president obama says he has the answer. >> every time there's tensions that rise in the middle east, which is what's happening right now, so will the price of gas. the main reason the gas prices are high right now is because people are worried about what's happening with iran. it doesn't have to do with domestic oil production. it has to do with the oil markets looking and saying, you know what, if something happens, there could be trouble, so we're going to price oil higher just in case. >> as gas prices keep rising, republicans blame the president. would gas prices be lower if a republican was in office? >> no. in fact, you can make an argument it would be worse. can you make an argument

republicans would take a more hawkish stance against iran, more fear and speculation on global prices. that is fair and true. >> i don't think there's a more hawkish policy than president obama is taking. i do think you're right there's nothing to do with what we do domestically, which is why i'm frustrated when people on the right, sometimes left, mass drilling, oil production, ramp it up, it won't change anything. >> you went way too far. >> i'm surprised you guys agree in the first place. you're right gas is high because oil is high. not just the middle east but china -- >> the rest of the world, we don't move the needle anymore, folks. it's not about us. >> the rest of the world is growing like gang busters. >> there's nothing we can do about it. >> not a lot. the other thing worth

mentioning, we're more energy efficient than we have been in a long while, exporting more oil products -- >> when people make the argument what we drill locally won't have an effect on price they carry too far. >> sometimes, put up the keystone map, blockages in the midwest. you are having increased production in the midwest. >> not just increased production. this is a revolution. the state of north dakota has just moved to the second largest oil producing state in the nation ahead of california, or they are about to. >> let me explain this while will is waxes poetic. down at the bottom the orange, that is the keystone extension the president fast tracked, you heard this week, fast tracked. the blue part is the part that crosses the border -- i almost said with china, with canada. that part goes through the nebraska sandhills and there's environmental concerns there. the president didn't fasttrack it. they are already starting to build it there. he doesn't have the approval to

fasttrack it. the administration wants the pipeline but has to be careful how it's done. >> over the long-term they have put in place hurdles, made it hard for domestic oil production to move forward, drilling on federal lands off the continental shelf is down, not approving keystone pipeline, important to long-term energy future. what it has to do with current gas prices, nothing. >> what is more important to the future is green technology. you look over the last 100 years there's been a lot of oil spikes. every time there's been some new technology, some new shift, be it from oil to gas or coal to oil. now we need to make the shift from oil to green technologies. the more we can push that -- >> how about we have the department of energy give a blank check to a bunch of solar companies. oh, wait. >> i'm not saying that. a lot smarter like china, denmark, germany have public-private partnerships with universities, companies.

people want though. >> he's shaking his head. >> teaming up. >> you know why, you want to talk about having a smarter energy policy, i think it has a complete lack of humility to suggest you know what energy future of tomorrow is when we have energy future of the past for the past 200 years pulled more people out of poverty, warmed more homs, put more people on the roads than any energy source in the history of mankind but you suggest you know what tomorrow's is. i'm going to stick with what's working. >> the big bufl buffett buy of northern, santa fe, look at how much -- i was in nebraska a couple years ago. the amount of coal coming out, they are making a bet we're going to be burning stuff, stuff like oil and coal for 200 years. >> nobody is saying fossil fuels are going away. what i'm saying is we have access to about 12% of the world's entirely fossil fuels, the rest in the hands of -- >> let me ask this question. people think in this country they have a right to very low gas prices. do you have a right in this country to low gas prices.

gas prices go up, people go crazy, will. >> no, you don't have a right. >> it's like -- gas prices go up, it becomes more important than any poll out there. it becomes blame president, republicans, congress. >> i don't think it's about a right. the american people have been duped to think this is something manageable or changed to a legislative policy. it's not that they have right they feel it can be fixed. >> how long in the future will you argue it is a right. we're arguing health care is a right, why not gas. >> since we're talking about gradual recovery i want to talk about rifbs. are gas prices the biggest risk to recovery? european debt, american debt? >> european debt. >> european debt. you don't see a euro sign over the pump every day when you go in to fill your car, which is why we think so much about gas but europe can blow up. solutions have been piecemeal.

if that happens we could find ourselves in another slowdown. >> leave it there. so wait, does the recovery last? >> of course. of course the recovery will last. things will be great. jobs will be created. >> i'm the only one with humility, tell you the right answers. i don't know. >> we'll keep that under will's name. thanks so much. the health care debate goes before supreme court this coming week. this is an issue that affects every single one of you washing now. how can it shake out? jeff toobin and will cain work through it for you next on "your $$$$$." definitely the ecoboost option. what's pretty amazing is that you can get the fuel economy of a car in an suv. that basically did it for us. and the technology... oh, my goodness, the technology is amazing. everything is touch. you can actually talk to the car and it talks back to you. what have your friends said about your explorer? can we drive it? can we borrow it? what's your answer? no. no way. uh uh. (laugh)

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president obama likely considers it his signature achievement the health care reform signed into law two years ago. this week it's headed to the supreme court. six hours have been set aside to hearing argument. most supreme court cases get just one. will cain back with us, jeffrey t tubin on all things.

the mandate stating all americans must buy health insurance or face penalties. if that's unconstitutional is the entire law dead? >> that's up to the supreme court. of the judges that declared the law unconstitutional and there have been a handful of them, most of them, except for one, have said only the mandate is unconstitutional. one june, a trial court judge in pensacola said as a result of the mandate being unconstitutional, the whole law is unconstitutional. >> the mandate is the glue for the whole reform. >> there are many other decisions not legally controversial. >> pre-existing, not allowing insurance companies to deny you coverage if you have a pre-exists condition. >> or requiring children to be allowed to stay on their parents' health care until age 26. that is not constitutionally controversial. there is one judge that threw out everything. if they throw out anything it will be -- >> how deep are the divisions in the court.

>> there are four judges appointed by democrats, who are virtually certain to uphold the law. there is one judge thomas who will strike it down. can they get one more out of roberts, scalia, kennedy, alito. i think the odds are it will be upheld. those four justices are really going to hold the outcoin their hands. kennedy as usual the swing justice. >> i've been hearing so much about the commerce clause. what is it they are fighting the legality of this? >> what's important to remember about the federal government you don't usually think about this. the federal government has limited powers. it's limited by the constitution. article one says congress may regulate commerce among several states. that's a key provision. most of what congress does with regard to the economy is use of that power. >> is that like fuel economy,

standards in cars. >> minimum wage, medicare, medicaid, all financial regulation. >> why isn't requiring someone to have health care face a penalty, why is that different? >> the obama administration says it's not different. it's just the same. the argument against it, and will will certainly give this, but the argument against it is that it's okay for congress to regulate economic activity like paying someone the minimum wage but congress cannot regulate economic inactivity. it can't force you to enter into a commercial transaction with a private party, an insurance company, or pay a penalty. that's the argument against. >> that's correct. jeff said that really well. congress has an enumerated list of powers. one is the congress clause which has a simple one-sentence line congress has the ability to regulate trade among states. originally the intention or how it played out was to avoid trade wars between the states.

that all changed in 1942. this will be the precedent based on where a farmer in ohio was growing wheat on its land. there was a law where congress was trying to boost the price of wheat. thought it would be good if we had a higher price. they said it would not be good if you had more wheat, you cannot grow more and he did. activity and inactivity. they didn't tell that farmer to boost wheat you buy more wheat, they put a limit. it comes to inactivity to activity from those on the conservative side looking at the law. >> a new poll, 26% of americans want the supreme court to uphold the heck law, 25% want to get rid of the individual mandate and 42% want the entire law thrown out. you're not only a resident conservative. you're an attorney. what's your take on this?

what does the public want and will the public be satisfied if it's thrown out? things will change for them. things under way health care reform implemented. >> as most things in the political arena, the public wants its cake and eat it, too. they want to not buy health care but also want insurance companies can't deny you for pre-existing. they are intricately linked. if you tell insurance companies they can't deny people with pre-existing conditions it falls apart. they can't just accept sick peop people. >> every time he says insurance -- >> it's true. the public will have to realize if you want that condition you have to have the mandate. if you don't have the mandate you get that condition as well. >> it's already implemented. talk to people at hhs, talk to doctors, i was talking to a guy running a big urban hospital system. they are working toward a lot of these things and working

assuming it will be upheld. there's nothing they can really do. >> it's the law of the land now. it has not been suspended. when we talk about this activity, inactivity distinction, one of the judges made a very interesting point in one of the early opinions upholding the law. he said there is no such thing as being outside the market for insurance. if you choose to get health insurance -- if you choose, i don't want to buy health insurance. if you're hit by a car on the street they will take you to the hospital. >> it's federal law. >> you have to be treated. somebody has to pay for that. so we're all paying for it if you don't pay for it. >> you can't be inactive. >> that's the argument of the obama administration, that it is not -- there is not inactive about not buying health insurance. that is a choice you make. and in order to promote the general welfare to take care of overbody in the insurance mark, which is everybody, we have to force you, just like if you drive a car, you have to buy car

insurance, this is the law of the land. >> for those opposed the difference between those conditions that jeff just laid out like buying car insurance is this law, this mandate, is a precondition to living while car insurance is a precondition to driving on public roads. so for the first time, and this is what we see as the key distinction, you have a condition to live in this country buying health insurance f you're inactive not buying health insurance, where does it stop? where is it limited. >> if this is overturned provides more energy to people for several years to the people saying the president was wrong on this, his signature achievement is a failure and this is government overreach. does it reenergize that movement? >> the political movement. >> absolutely. >> that's an interesting question. i don't know how it plays out. >> absolutely. >> does it help gop in november. >> if obama loses this appeal it is a catastrophe for them. most of all a catastrophe on the substance. this is what he cares about.

what he's going to be in the first room when you walk into the presidential library. the substance matters more than the politics, but the politics is terrible for him. he spent all this time embracing a law that turns out to be unconstitutional. >> for a constitutional law professor. >> forget constitutional law professor, for anybody. that you made your signature achievement something that is so outside the mainstream it's unconstitutional, i think it is a train wreck for him. >> very powerful for his opponent, you hung your hat on something that isn't within the purview of american governmental power. >> absolutely. the stakes are enormous. mostly they are enormous because 30 million people won't get health insurance if this law is struck down. subsidiarily it's a das ter for the president if he loses. i don't think he will lose. >> you don't think he'll lose it. >> no. >> you tlng as a chance. >> if he doesn't lose this we have a new question, what is the limit of american governmental

power. >> sounds like a book. >> jeff toobin, will cain, thanks to both of you. ready to buy into the recovery. two competing ways to grow your money, which is right for you. that's next. and zyrtec® is different than claritin® because it starts working faster on the first day you take it. zyrtec®. love the air.

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welcome back to "your $$$$$." i think at this point everyone agrees the economy is in a slow recovery. that can mean opportunity for you. home prices are at the lowest levels in 10 years. interest rates are still incredibly low. the 30-year fixed rate is 4.19%. in 98 of the top 100 metro housing markets it's now cheaper to buy the house than rent it. what about the stock market? right now stocks, believe it or not, they are cheap. dividend yields are up. interest rates are low. if you're ready to buy into this recovery, which is the way to go. buy stocks, a house, real estate? how about buying both.

executive producer of hg tv income property. nice to see both of you. assume we have money in our pocket burning a hole. we're seeing these signs. matt make the case for stocks. >> as you mentioned stocks are cheap here. pe ratio, value stocks cheap or expensive. right now trading at 13. historical average is 15.5. what that means get back to where we should be historically the market is 20% undervalued now. at the same time dividend yield last year s&p 500 2.1%. now a dividend on s&p 500 of over 3%. that's versus 2% for locking your money up for 10 years in a government bond. to me stocks are the best out there. >> in a bank account you're going 3%, you kidding me.

scott, your real estate is real estate. is it a good time to buy? >> i absolutely believe it's a great time to buy. a lot of good opportunities out there. we're still seeing negative news, good for buyers. it's keeping prices low. interest rates are extremely low. price points into the market are good which means you don't need a huge down payment. affordability is there, at least affordability coming back because interest rates are so low. instead of trying to time the market, which a lot of people are trying to do waiting for a recovery and trying to jump in, why not get in while it's low and just do the long-term play with real estate. >> you know, matt, i want to talk about stocks, for everyone or people proceeding with caution on the stock front? >> not for everybody because everybody thinks, well, i want to be in the stock market. if you're 65 years old and have two more years to work, no, you shouldn't be in the stock market. over the last century the stock market has been the greatest wealth generator we've seen. the problem is if you need the

money a year from now or two years from now or five years from now, you may have to step away from the stock market because we're going to have ups and downs. even though we have ups and downs, we go higher. if you need money in five years you can't be in now. depends on your age and risk level. in the stock market you're going to lose money. if you can't deal with that. >> if you need money in the next five years you can't put it in the housing market either. it may take a while before prices recovery. interesting, too, a lot of people paying cash. 33% of existing home sales in this country are cash. so people taking advantage of those low interest rates, they are still waiting. >> yeah, it's true. they are still waiting. anything both stock market and real estate you do need to be thinking long-term right now. but the beauty about real estate if you're getting into real estate for investment purposes, the long-term buy and hold positive cash flow model is great because it's like getting

dividends every month, right? as long as you're buying the right investments. the fact they are going to go up in price in the future is a bonus. we can't time that. a lot of people think is it going up next year, a year later, you need to be able to start making money right away, which is why you need something that has rents above caring cost of the house, above cash flow is a safe situation and waiting for the economy to recover while you're getting paid to wait. >> scott, i know you bought your first house at 21. 21, that's a financial risk. according to survey, people in 20s carry an average debt of $45,000. clearly home ownership isn't for everyone right now, especially people with a lot of other high-interest debt. is that going to hold back that generation? >> well, i think, you know, there's been a lot of lessons learned over the last few years. it has to be -- it's cool to be frugal. savings is awesome. you have to be excited about that you need to be able to save

up a down payment in order to buy a house. i think people need to discipline themselves. they need to take advantage of the low house prices that are probably going to stay low for the next couple of years. use this time to build up some savings so you can get in while the price points are low. i bought early but i was modest. i tell people all the time, look, i had my first house when i was 21. the only way i could do it was by renting out the whole upstairs to a group of people whose rents covered all the costs. i lived in the basement apartment. yeah, i lived in 800 square feet one-bedroom apartment below my tenants for almost eight years. that was the reason why i was able to afford it. had i lived upstairs the situation may have been different, my debt would have continued to build instead of the reverse order. i was able to stay in that apartment and buy my first 50 houses over that timeframe. >> my first 50, then my next 50

came. he's obviously turned some money out of that one situation and that's great. right now should you be saving money, put it in the bank or owning stocks. is that the better investment for the long-term over the long run. >> first i want to talk to scott. i'm the only guy in america that bought three homs and lost money every time. i need to talk to him about this. >> he doesn't have stocks. >> you want to save money. you always want an emergency fund. with interest rates so lo money markets paying less than .5, losing money with inflation, i think right now you have to ask yourself do you want to be in the stock market. if you say yes right now is the best time. based on evaluations, based on the fact good dividend yields, no reason not to be in the market. it is a long-term gain. scott, you're buying into a home as well, tough to time it. you don't want to time the market. you want to get in when the stock market is cheap. history proves long run you're going to make money in the stock market. >> last word to scott, i guess,

we went through ten or 15 years where people thought there was a get rich scheme in the housing market. i think that is over. do you agree? >> it was over even when people thought it was happening it was over. it was destined to fail. there's no such thing as money for nothing. it's a long-term play. you have to work hard to make money in it. there's just a couple of opportunities right now that make it really attractive for investors with low price points and low interest rates if you're willing to play that long-term real estate game you can win big right now. >> all right. scott and matt, nice to see both of you today. thanks for making your cases, gentlemen. one thing is clearing during this recovery, united states needs innovators and invasions to set it apart from the world. should it come from the government, big business? we're going to ask the man once named, yes, the real sexiest astrophysicist by "people" magazine. don't miss it next on "your

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we're all about solutions on "your $$$$$," what's the solution to fixing the economy. one thing we hear again and again is the need for innovat n

innovation. an astrophysicist and author of "space chronicles facing the ultimate frontier." nice to meet you. nice having you on. >> thanks for having me. >> next book is space exploration, one of the great things is gets them interested in science. in the 20th century it's the foundation of tomorrow's economy. >> yeah. i think traditionally people have always imagined and thought of space exploration as driving some kind of economic spinoffs. sure. i want to try to raise the dialogue beyond that and have people recognize that when a nation invests in a big way in a major frontier, among the list of great frontiers that can attract the next generation of explorers you have space. when you do that, what you do is cultivate an innovation

attitude, cultivate and innovation culture. when you do this the act of advancing a frontier, everyone is society participates in that adventure. consult really, emotionally, psychologically. even if not a scientist, engineer, a poet, journalist, comedian, whatever. >> teacher. >> teacher, whatever it is your subject, you will embrace that advance of the frontier and have an influence in the rest -- these other aspects of society. >> back in the day it was the government that supported finding new frontiers. >> it's always been. >> and space industry. but things are changing. now we want the private sector to have more of a role. that is going to foster innovation in a different way or is it dangerous? >> there's a lot of misunderstanding there. of course nasa has always partnered with private industry from the beginning. nasa doesn't have all that innovation and technology in its

own centers. so just a great example is right here in new york, so on long island they designed and built lunar excursion module. they went on the moon. you go down in the neighborhood, they are still proud of that. somebody had an uncle, brother, a participant. it's one of the strongest points of pride to this day in that community. so you can see the effect that participating an advancing frontier has on a culture. corporate participation in nasa's adventure. the misunderstanding is nasa is out of the space business and privatized. >> they are not out of the space business. it's a different model for it. much more high-profile retiring the space shuttle fleet is a big moment. >> it was a big moment and some people shed a tear. i could you have those people of not actually understanding why they shed a tear. an era comes to an end.

that's not why you're shedding a tear. you're shedding a tear because there's not another vehicle ready to continue that venture beyond the shuttle. no one shed a tear when gemini stopped because saturn 5 was there. as long as the adventure continues you have something to look forward to tomorrow to dream, in vent. >> tomorrow science and technology in this country looks what? >> the emerging model, nasa has been in orbit, risks assessed, costs understood, it's a private enterprise. we should have done that 30 years ago if you ask me. private enterprise -- so private enterprise presumably will do it more cheaply, efficiently in the economies of scale that private enterprise brings to bear on a property. so what will not happen and will never happen and a good reason why it can't happen private enterprise never led a big, expensive, dangerous adventure with uncertain risks.

>> because private enterprise reports to shareholder and investment return. >> exactly. >> big ideas and exploring frontiers is meant to make somebody some money. >> exactly. so if you've never done it before and can't assess the risk you can't go to an investor and say here is the money you give me and the money you get back in a certain time. governments have always done this. when columbus went over the ocean, government did that. okay? i recently learned some private money had contributed to that but the bulk of that was government. and once the maps are drawn and you see where the demons aren't and where the trade winds are and if there's wealth, then you bring back those maps and private enterprise says i'll take that route and that route and i can make money. who is coming with me. it's been this way forever. >> so it's a partnership. >> it's always been a partnership but the government has to take those leaps. >> let me ask you in this country leaders of technology, apple computer.

i've heard a lot of people say we're going to applize the country, design it here, build it someplace else. i've always thought, a lot of evidence to back it up, innovation comes from the factory floor, where you're making something, making it better. are we losing something by in venting stuff and not making it in this country. >> okay. if we want to claim, assert our mark economy is global, then it is expected that they will take their factories to someplace where they can make the product cheaper where at the end of the day they are serving their shareholders. we shouldn't cry foul your interglobal company, international global company found a cheaper place to make the product than here. we shouldn't be surprised by that. we are surprised. we want tariffs, tax incentives, rebalance the playing field to enable us. i assert if you're always innovating, always innovating, you can end up creating products

no one else has figured out how to make yet. that way you keep your jobs. it's only when you make a product and then it kind of stabilizes. they say, hey, i know how to make that. i can make that. i can build a factory to make that. then the jobs go overseas. in the 1960s and '70s jobs weren't overseas. if they were they were jobs nobody wanted here. everything was innovation throughout the entire erachlt i did a quick calculation on the gdp per capita decade by decade, it's gone up since the '60s every decade. however the amount it's gone up as a fraction of the total has dropped. >> wow. >> so in fact it's flat lined this decade. so i long for that time. not for the civil unrest that poisoned the '60s, i long for the era where everyone dremd about the city of tomorrow and home of tomorrow. >> we'll have to leave it there. a nice thought to leave it on. very nice to meet you. >> thank you. >> invented personal transportation system.

known for his music. two bright minds, two very different worlds. put the two together and our other ali velshi, pure innovative collaboration. that's next on "your money." man, i'm glad aflac pays cash.

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wshg back. dean cayman is a top innovator having invented the segue. what happened when will.i.am. crosses paths with someone like dean cayman? you get something called "first" designed to inspire kids to build their science technology and engineering skills through a mentor-based program. >> reporter: you're the accessible inventor. you're the guy who thinks up crazy things and some we actually use. >> every once in a while we get one right. >> reporter: what's your thinking about all this? we're in this environment where we think our future is going to be powered by science and engineering. >> we don't think it. it's the only plausible alternative. technology, whether you like it or not, is the only solution if

we expect the next generation to have access to a better life. technology is the only way that 9 billion people will be able to share more wealth instead of the 6 billion people fighting over less wealth. >> the benefits and blessings of traveling the world, seeing what's coming tomorrow. hanging out with folks at google and with dean and seeing what's happening. and then i get concerned. like, wow, that means my ghettos, still be a ghetto 20 years from now. >> reporter: right. you're seeing the rest of the world, you're seeing the way it's changing and want to bring the ghetto along with you? >> if i can at least go to my yet ghetto and tell the youth, take and theft in science, technology, engineering and mathematics so you are prepared many years from now. not just prepared like, you can get a job, but understanding it to where you can create jobs. >> i have never felt any pressure running my business compared to sitting in a

classroom and feeling, i'm going to get picked on to do something, that i don't understand and -- look like an idiot. >> that's the magic. that's probably what keeps a lot of kids out of science, technology and math courses. anybody of come back to you and say, why do you care? >> no. because i did it -- it was a cool way. >> reporter: right. you're making that cool? >> you make it cool. my friends, probably like, you always on that geek stuff. why you so geek ji that's geeky cool. it started getting a bunch of traction and people were talking about it and the hash tag with, i am first. >> first is about giving kids a taste of what the real world can be like for people that are properly prepared, willing to work hard and solving complex problem, and they get so passionate and so excited, it's like they go to the football game, because they don't know who's going to win. right? but they can try hard. if they don't win this week it's okay. it's not judge mental. they don't get an f.

maybe they'll win next week. >> what's missing here? buy-in technology, right? because we're -- infatuated with it and it helps us connect and communicate. why isn't it cool in culture? so i was like, we got to put it on tv. >> we just proved that, you know what? math and science and engineering are every bit as accessible, every bit as fun, every bit as rewarding and way more likely to lead to careers than anything else they can do. >> so wouldn't it be cool if next black friday, an 18-year-old had the best selling product on the shelves of best buy? >> reporter: right. >> right? or, you know, electronics. that's when it all changes. >> reporter: when it becomes obvious to the kids in the neighborhood that, hey, i can be that next kid. >> right. >> we'll tell what you everyone will be talking about this coming week next on "your money." but we gained the knowledge that priceline has thousands and thousands of hotels on sale everyday

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