you like to see the trend for markets and economics. after three months of 200,000 jobs created or more, people are saying, look, it's healing. things are going to get better. the rearview mirror is a slow jobs recovery. then you have a stall here. when your biggest customer has countries in it that are in recession, that doesn't mean if you're a big company in this country you wan to be adding a lot of workers. that could be a big bart of it. i want to look at the private sector of public sector jobs. 82,000 private sector jobs created. 13,000 public job sectors lost. there's the tug of war for the economy. the private sector trying to create jobs. the public sector losing jobs. you'll hear people in the gop say, look, this shows the president's policies aren't working. >> the problem is what is the answer to that? if the president's policies aren't working, how do those

cutting spending fit into the equation? >> cutting spending will mean more public sector job loss, no question. which means you'll have another drag here. for the gop you have the kind of double-edged sword for them in these economic numbers, if you're talking about the politics of the jobs report. most people aren't talking about politics. they're talking about the personal economy and whether there are more opportunities. >> if this is going to swing into politics real fast. possibly within the next few minutes. diane is the chief economist at messero financial. what is wrong? why after seeing and feeling an kbhi that looked like it was chugging along quite nicely have we seen this? we saw the revision to the last couple of months. what has weakened? >> a couple of things are important. first we juice the economy with unseasonably warm winter weather. we had payback to that. these numbers go far behind payback to unseasonably warm winter weather. they're weak in a lot of areas

that we need to take note of. it is important, too, you noted the deployment. that had narrowed. many people took on the gdp in the first quarter. with the first cut rising, that this would not be the head wind. yesterday the data was revised down. this week the data was revised down. now we're showing the state and local governments are continuing to cut the bulk of the public sector job losses were teachers. on the federal level you're getting postal worker reductions in payroll there. so mostly teachers at the state level, at the local level, and again the wedge. the public sector now beginning to play the headwind once again. also europe, let's face it. we're not an island. not only is europe weak, but china is weak. we saw news out of china to show china is weakening. china buys a lot of heavy manufacturing equipment. and we're not an island. this really matters. also uncertainty. we saw the buoyancy.

the irrational exuberance of the 1990s when people invested, even in wasteful investment. now we're seeing a pullback where uncertainties about policies. this is the third year in a row we've kicked down policies in the u.s. and in europe. it accumulated and got worse. there's no reason to make it certain about feeling a bet in the future when you have those in front of you. >> you gave fantastic answers to all of us without invoking politics. it was moments after the unemployment report came out that you heard from everybody politically about what is wrong with this world politically. i argue to you, will, that this issue transcends the ability of barack obama or mitt romney to deal with it. these headwinds are global, as diane said. some of them are ciplical. nonetheless, it will fit into our equation. >> i love the way diane broke it down. china, europe and uncertainty. i would agree with you on two of the three factors. china and europe are largely outside of the president, and

the policymakers' control in the country. uncertainty is not. if i have a criticism of barack obama, it lies in the realm of uncertainty. when businessmen across the country, don't know what the tax rate they will pay in the next year or what the regulatory environment might be or how the health care might be handled, that creates uncertainty. >> i want to bring in christine to complicate this a little more. >> it's not complicated, ali. >> no, it's not. you have a number. we're talking about underemployment. they say the unemployment rate has risen to 8.2%. people think i am flat out lying to them. >> yeah, you're not lying. there's a labor market that is measured. there's a people who are in the market, working or actively looking for a job, and the unemployment rate is 8.2% of the group. the underemployed is a bigger number. we saw it's 14.8%. those are people who are unemployed. they are margely attached to the

workforce. they're working part time for economic reasons. they would like to be working full time, for example, but they just can't get that job. so this is the underemployment rate of 14.8%. that's a more troublesome number. people who throw in real unemployment rates bigger than that. they're throwing in people who aren't in the labor market. people who have been discouraged and dropped out for years. people who would like to be working but can't. you look at the population, the american population that's working, it's less than 60% of adults working. so there are a lot of different numbers to look at. >> you're in the same studio as me, but you can't see will's face. i'm not sure whether he just didn't eat good food or something is troubling him. >> nothing is troubling me. >> you're looking at christine, and you're looking at that like that doesn't make sense. >> no, it all makes sense. you can play the death star music. the guy in charge of the

economy, no matter whether he's truly to blame for it or not, is going to pay the price for all of this bad news. >> hold that thought. coming up next we're going to continue the discussion with all of these folks. i gave will a piece of chewing tobacco and didn't let him spit it out. unemployment benefits are being pulled back. what happens when the safety net is gone? a lot of you tweet me about it. let's talk about it. later it was 40 years in the making. one of the largest public works projects in american history. i went inside new york's new subway line. why no matter where you live, you're paying for a piece of this. there are a lot of warning lights and sounds vying for your attention. so we invented a warning.. you can feel. introducing the all new cadillac xts, available with the patented safety alert seat. when there is danger you might not see, you're warned by a pulse in the seat. it's technology you won't find in a mercedes e-class.

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you know, christine said something interesting a few moments ago. this whole discussion about unemployment is not so important. what's important is how it affects you, what you see around you. i want to show you a map of the united states color coded into red, green and gray. the states in red have an unemployment percentage, an unemployment rate higher than the national average. those stays in green have an unemployment rate below the national average. those in gray, while there is not as many of them, they are heavily pop lated. everything east of the mississippi, there's a lot of gray there. you're at the national average of 8.2%. this is interesting. there's a big chunk of the country in the middle that is doing well. but this election, christine romans, this election is going to come down to votes that take place in a swing states. places like ohio. places like florida. polices where, you know,

unemployment is going to matter. >> that's why you sthee the obama administration fine tune the attack on mitt romney's record as a job creator. his record in massachusetts. it started as an attack on bain capital and private equity and moved quickly into what kind of economy he really left in massachusetts. and they're going to keep hammering on that. they want to appeal to the lunch bucket democrats in towns and cities in battleground states who say, wow, the factory closed down the road. people like mitt romney who did that. and people like barack obama who saved the auto industry. the battleground states are really important this time around. >> i think this is an absolutely fascinating analysis. barack obama and the democratic machine have a tough pill here. they have a tough job. that's convincing the americans that the country is in the right direction. that's why they went for the bain capital attack. as that one different resonate.

they have to attack the stewardship from the left. you're attacking health care and job production record. that's not a strong place to attack from, unless you can micro target that. well the national job creation isn't that great. in ohio, not that bad. i don't know if you can micro target. but that's interesting. >> diane, you pointed out in the last conversation that a lot of these jobs are teachers. they are state employees. as state employment rates improved, in the green stated has improved, they lost the ability to offer extended unemployment benefits. by the end of summer the extended unemployment benefits will be gone. states are scaling back on seasonal benefits. the checks that might go out to a school bus driver, for example, 5.4 million americans officially out of work for more than six months or longer, this is a doubly complicated issue

now. we're going to pull back on some unemployment benefits. that's going to affect demand and unemployment further. >> one issue that isn't clear cut at all is many people thought once you pull back on the unemployment insurance, all the sudden the people on the sidelines would jump back into the lay fbor force and start working. in the last month, many of the workers dropped out. they ran out of benefits. nine states lost benefits in tp month of april. and many of those people, the long term unemployed fell. they stopped looking for a job for a month. now they started looking for a job, but there's no jobs to be had. that's where the difficulty is. even if they're looking for work, they're not getting jobs, and they're not getting paid now. we know many of the long term unempl unemployed, most of them have borrowed money from friends. have borrowed money from their families or are living with families, doubling up and putting additional financial stress on their families as well. that has collateral damage.

the only silver lining is the weakness that we're seeing in the global economy has brought down oil prices. that's a de facto tax cut. prices at the pump are falling. right now oil prices are plummeting. that will help give consumers more disposable income that they didn't have earlier this year. as you pointed out before, the relatively mild winter also meant we didn't get to higher oil prices. so here's my question to you, diane. for all the people out there saying i'm going to vote for somebody and jobs is going to become a big issue, is there a logical solution to what is looking like the problem of our time of high unemployment and not fast enough job creation. >> i think will made a good point. if we were able -- our worst problems today, the economy is going to grow. we do that out of a financial

crisis. that's a given. the extent to which that happens is manmade. i'm zis appointed. there's not enough women leaders, i believe. that's my own personal view. but at the end of the day the problems we have are political in europe, and they're political in the u.s. >> right. >> and until we move forward on the political road maps, additional uncertainty is exacerbating the problem. when you're on the margin, it really matters. it becomes more than noise. it overwhelms. and we don't want that dissidents. and the more we've kicked our problems down the road, kicked the can down the road, the more they've accumulated. we now have the fiscal cliff of both spending cuts that are substantial and retroactive along with tax hikes at the end of this year, beginning of next year, that need to deal with within the context of long term deficit reduction. >> so when you leave, and i say thank you, i want you to go to the green room. and her book is called the spirit of compromise.

and i want you to explain why this uncertainty gets blamed on democrats by republicans. nobody is compromising. >> i would say this. i'll take it up with amy f before you throw a parade. you can also have uncertainty as a result of aauthoritarianism. >> you've got to be kidding me. >> just because you have one person or party that could get through whatever policies they wanted doesn't mean you get certain certainty. >> i got it. that's a good point. the president of the university of pennsylvania will be coming up to talk about partisan zip. i tweeted you to see who is more to blame? is it the politics, or is it the voters who put them there? always great to talk to you. christine romans, the host of "your bottom line", which you watch on saturdays at 9:30 a.m. m next, how is the economy

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[ male announcer ] when diarrhea hits, kaopectate stops it fast. powerful liquid relief speeds to the source. fast. [ male announcer ] stop the uh-oh fast with kaopectate. all right, you can be forgiven if you're confused by the recent news on the economy. some indicators are looking up. others are looking down. as we've been discussing, the most important thing is jobs. this is all the way from the beginning of the recession -- well, almost the beginning of the recession. this is 2008 all the way through here. we've had 20 straight months of job creation. but any optimism there has been offset by a severe slowdown in the number of jobs added each

month. let's look at how consumers feel. according to thompson reuters, they have consumer sentiment. in may consumer sentiment rose to the highest level since late 2007, before the recession, when the dow was at the all time high due to more favorable jobs and wage prospects. then a different body, the conference board, released its own report that says consumer confidence in may fell to its lowest level in five months because americans are less optimistic about jobs and business conditions. that sounds awfully pessimistic to me. this is all confusing. the latter report tends to be a bigger survey than the earlier one. why are they going in different directions. let's look at housing. the national association of realtors said exist home prices, most of the market, used homes,

if you would like, they rose in april by 10.1% compared to the previous year. it showed back-to-back price increases from the year earlier for the first time in two years. however, that was quickly followed by the s&p case-shiller index. a negative trend showing prices at the lowest since 2002. you getting confused? why the disdiscrepancy? it's the way they track prices. the national association of realtors attack existing homes that sell each month. they compare the price a home sells for compared to what the same home sold for in the previous sale. whatever the ek pla nation, it's very confusing. are things looking up? are they looking down?

a registered investment advisory. and he's the president and ceo of leader capital. a fund manager in portland, oregon. mike, let's start with you. you don't see mixed signals in the economy. >> jdp has been anemic. home sales have been very anemic. i tend to put more credence in the case-shiller index. look at payroll. the number of jobs created in may. and the most disturbing part of that ali, is that we lost, still, losing 15,000 goods producing jobs, even after the recession began in december of 2007, we are still not producing jobs in this country that can sell goods overseas. >> you're an investment editor. as far as you're concerned, things are not looking good. john, what's your take?

>> we think things are getting better. nobody does anything until they have to. i agree with you. the numbers are confusing. let's talk about what is really important. let's talk about the bigger picture. what's going on in europe is the confidence in governments, to say the least, is waning. and to give you an example, the departments have issued 50% less debt in europe. corporations, however, have issued 300% more debt. and what you're seeing globally is a huge gravitation from institutions and people investing in governments to invest in corporations. they have their house in order. they run on gap accounting. so we're seeing borrowing costs for corporations coming in at all time levels. and you're seeing huge massive

amounts of refinancings. that's going to set the table for large, large, you know profits and house in corporations. you completely see this differently. so my confusion going into this is validated. my question is, mike, or let me ask you, mike. let's take your view. what does my viewer do about this? if anything? >> well, we exited most of our equity positions in may of this year. we own some gold and mining shares have already priced in. and if you can believe that central bankers across the globe will sit on their hands and watch a deflation nar investment

unfold, then the gold stocks are going to go down. but how far away is the ecb from another round of money printing. how far away is the federal reserve from another round of money printing? >> if you have a job and have a much more optimistic view of what's going on, your strategy is much more obvious. you are long. you are exposed to we canties. and you think this world gets a bit better. >> well, i'm a bond fund manager. so we produced a 4 to 5% return for the last five, six years. we beat the markets handedly without the volatility. in a short run i'm going to agree with the pessimistic view. in the short run it's going to remain volatile. interest rates probably go up.

we're providing a 4 pgt to 5% current yield. i think it's a terrific place to be. it has been for the last five years. >> gentlemen, we would love to have you back to talk about this some more. one thing we both agree on is this isn't ending any time soon. coming up next, the people are devoted to funding his republican rival. and why. and later, i went 100 feet below manhattan to find out what goes into one of the most expensive subway lines of all times.

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polls show president obama and mitt romney are in a dead heat. but mitt romney is winning upon wall street. the obama camp has raised $3 million. that's a pittance compared to the $8.5 million that the security and investment industry has contributed to mitt romney. compare it to four years ago. candidate obama back then raised $16 million compared to his rival, john mccain, $9.2

million. so what explains this shift? one reason could be that criticism of wall street has been a staple of the obama presidency. >> not everybody has been following the rules that wall street is an example of that. >> that is what the president said. but what has he actually done? let's start back in 2008 right before president obama took office. president bush signed t.a.r.p., the troubled asset relief program into law in order to prop up the auto sector. taxpayers are still owed $119 billion accord thing to the spel inspector general who oversees that. the stimulus bill. president obama signed it into law in february of 2009.

one year later, the president signed the health care reform into law. no republicans in either house voted for that bill. four mons after that the president signed the dodd-frank wall street reform and consumer protection act. one key was the rule designed to stop banks from making risky trades on their own account. they also established a consumer financial protection bureau. fast forward to this year. the president is unveiling a plan to cut the corporate tax rate from 35% to 28% and to close dozens of loopholes. don is a member of president obama's national finance committee. fund is a national affairs columnist for national review magazine. john, as a conservative, what is the number one reason why wall street has not had the ability to shed the tone deafness and say we were really responsible for a lot of this stuff.

maybe the president was politicking. why can't they get behind the fact that this guy is friendly to them? >> i am. wall street shares with main street an average americans the same goals, which are a stable, prosperous, growing economy. the economic recovery began three years ago this month. and how has it been doing? president obama said if you pass my stimulus bill, unemployment will not go over 8%. it just went up to 8.2. economy growth last quarter, 1.9%. stock market flat the last 16 months. how is that working out for us? i don't care if it's main street or wall street. after so many years, there's only so much you can blame the previous administration. this recoversy the most anemic in modern american history. 8.2% unemployment three years

in. does anyone think it's working? >> they left us with the biggest mess. >> here's the blame game. >> no, it's called accountability. not blaming. when you guys left office, there was not -- >> it's not my guys. >> when the conservatives stopped reeking havoc on our country, we were losing 400,000 jobs a month. now we're gaining an average of 168,000 jobs a month. rome wasn't built overnight. we need to exercise some patience. also the president's policies are working. we're making progress. we've had 26 consecutive months of job growth since he's taken office. he took office at a time when the country was at the weakest. he has cut taxes 18 times. >> much of the uncertainty has to do with things that the president can't have any effect over. right? >> just as presidents get more credit when the economy gets better. >> you said something that isn't

blaming president obama. >> the bottom line is at some point you have to accept some responsibility. and at this point i hear blame for a previous administration which deserves some blame. but the president has refused to accept ponlt. >> this administration can do more. congress can do a hell of a lot more. >> tell us what they're failing at. >> the administration should put more emphasis on job creation. >> instead they did obama care. how is that working out? >> obama care is not in place. is there a single job that hasn't been created because of what you call obama care? >> in january of 2009 -- in january 2009 -- >> john, answer my question. you're a smart guy. is there one job that has not been created. if you see it out there, tweet me and tell me. just answer that. do you know anybody? anybody in this country of 310 million people who didn't hire anybody because of a pending

decision on obama care? >> i know an employer in louisville, kentucky, i just spoke with about to drop health care insurance for all of his employees because he doesn't believe that obama care is going to work. and obama care creates incentives for people to drop employer coverage and throw them into the general pool. >> that could be a good argument. >> and they've also laid off three people because their health care insurance cost went up 37%. >> my health care costs go up 26 each year. it's was through bush's tenure as well. health care in america is out of whack. he's the first candidate who has attempted to tackle this issue. how many people work if you? >> i'm self employed? >> i'm small business. >> i'm small business, too.

and i started off, my company was $600. i prospers under ronald reagan. >> how you doing now? >> under george bush, under bill clinton and under barack obama. our business is now growing this year. >> god bless you. the reality is who the president of the united states is has some impact on business and some impact on the economy. we as business people. we as american citizens also have to accept some responsibility here, too. and the fact of the matter, banks are getting rewarded for not making loans. they're not making loans to small business who are going do create the jobs. wall street has acted for decades as a casino. >> and we never bailed them out. >> i hope you agree. >> you just said you had to bail them out. >> i am ending this segment right now. we have an agreement. gentlemen, we must do this again. >> he now agrees we shouldn't have bailed out wall street and the banks, but he said something

different five minutes ago. >> no, i didn't. >> yes, you did. >> john fund, national affairs columnist and national review. coming up next, washington is gridlocked thanks to a hyper partisan environment. my next guest says it's your fault, and actually mine. i'll explain next on "your money." there are a lot of warning lights and sounds vying for your attention. so we invented a warning.. you can feel. introducing the all new cadillac xts, available with the patented safety alert seat. when there is danger you might not see, you're warned by a pulse in the seat. it's technology you won't find in a mercedes e-class. the all new cadillac xts has arrived. and it's bringing the future forward.

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the word compromise has ten letters, except in washington, where it's a four-letter word. take a look at this chart from the university of georgia. congress is now many polarized than at any point since the 19th century. the higher the line, the greater the ideological distance between the parties. by the way, the blue line shows the distance between democrats and republicans in the senate. the red line shows the

difference in the house of representatives. when you see it over here, you can really tell the difference in the last few years how partisan the house has become. voters are showing their frustration with this gridlock, according to polling from gallup, congress' approving is at 17%. that's lower than richard nixon's approval rating during his impeachment. even congress is frustrated with congress. in february moderate republican olympia snow cited washington's hyper partisan atmosphere as the reason for her retirement. >> people are just stunned by the debilitating partisan polarization and the overall dysfunction. even at the most perilous times facing our country, we couldn't get it together. >> amy gutman is the president of the university of pennsylvania. she's the coauthor of a new book, the spirit of compromise. why campaigning undermines it. welcome to the show. thank for being here.

>> pleasure. you heard even on this show there's a lot of partisan ship. you pointed out you think there's a few reasons for this. one is the cost of campaigns. the need to raise more money. this 24/7 echo chamber. what else? >> relationships have disappeared in congress. that's part of the campaigning mentality, which is that politicians are campaigning all the time. as if every day were election day. that means they're not sitting down and doing the work of governing. >> when you look at olympia snowe and the people who have left, one always tends to refer to them as one who reached across the aisle and had great relationships with other people. what has changed? why is that absent? those relationships? >> olympia snowe could have won

by a landslide. she decided to leave because she was fed up that she couldn't get anything done in washington. what has happened is very simple, actually, and very sad. which is our politicians are out of washington more times than they're in there, and they don't have the kinds of relationships, they don't know each other enough to extend the respect of sitting down. familiarity breeds attempt. we don't have the attempt to compromise. >> what we have heard at every stage in the conversation about the economy is the uncertainty, the unknown about how politicians will deal with it. and by the way, this is in europe as well is what's crippling businesses and people. we will elect the budget people who will come to some reasonable solution. >> yes, here's the hope. after this election nothing is going to happen before the election. everybody agrees on that. we're now in election mania.

the sequester is going to go into effect. that will be a disaster by everybody's rights sochlt the voters are electing people who they're going to want to sit down and compromise and not just kick the can down the road. here's a striking fact. the majority of tea partiesr wanted their representatives to compromise in the face of the debt sealing crisis. >> then you have people like grover norquist who comes on the show a fair amount, you sign a thing that says no tax increases under any circumstance, and many congress members are beholden to that. >> and you have alan simpson who says that's crazy. it's the kind of big bold compromise that this country needs and that the vast majority of citizens would rally behind if there were leadership in congress. three republicans and three democrats voted in favor of it. 3-3 voted against it. and the president didn't rally behind his own commission's recommendations. that was, i think, the low point

of the uncompromising mindset in in country. i think we'll see a shift after the election. >> it's been a pleasure to have you here. >> my pleasure. the president of the university of pennsylvania and the author of the spirit of compromise. coming up next, facebook stock has flopped in the last two weeks that it's opened. is this your chance to get in on a bargain? i'll tell you as a culinary manager i make sure our guests

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followed by your choice of one of 7 entrees. like new coconut and pineapple shrimp or shrimp and scallops alfredo. then finish with something sweet. all four courses just $14.99. [ reza ] it's so much food for such a good value. i'm reza, culinary manager. and i sea food differently. it was the big fear before the facebook ipo. retail investors like most of you out there wouldn't be able to get the stock unless you pay a lot more than the $38 initial price. fear not. stock dipped below $27 this week. mack mccall is the founder of penn financial group. matt, with facebook stock around $10 cheaper than the opening, do you recommend this stock to viewers today? >> no. i continue to be bearish and negative on this stock at this price. there's a lot of uncertainty going around the stock right now. that keeps people away. we've seen big money shy away.

and now a lot of negativity floating around the stock. i truly facebook can see the lower to mid-20s. at that point it actually becomes a decent value. and comparable to, let's say, apple and google. no, continue to sit on your hands and be patient and you'll get a lower price. >> i want to give our viewers a sense of what you're talking about. it's not just the legal mess or lawsuits around the whole thing, there are a couple of important events ahead that are likely going to dictate where this stock goes in the near future. this is the most important thing when you buy a stock. it's the earnings. how much is that company going to earn. sometime in july or august, facebook will disclose its revenues, its expenses, taxes, profit, every public company does this, for everybody to see. wall street's got big expectations forecasting 20% growth over the next year. the second thing you have to remember is the end of the 90-day employee wait period, that expires in august after which a whole bunch of employees who may want to get rich off

their shares may want to sell their shares of facebook. what could happen then? >> when shares go on the market, there's a lot of millionaires that work for facebook. they're millionaires on paper. until they actually sell those shares, and they're not real millionaires in my mind, a lot of people have been sitting back on these shares for years when facebook was nothing. now they've become this millionaire, they want to take this money. sell the shares as soon as they are able to do that. plus they've seen their paper value fall from $38 now down to the mid 20s. their value, they may be millionaires now, they may only be worth $700,000. their wealth is going by the wayside -- >> they may want to panic and get out. and then we'll have this, which is going to be about two months from now basically. at some point at the end of august, if we're having this conversation and facebook is still around, low 20s or mid-20s, or high 30s, at that point would you able to make a call that it's a good or bad

buy? >> i think i would be in a much better position to make that call. the employees that want to sell today, they'll be out. also, once we see earnings, keep in mind, earnings from 2011, 2012 grew about 27%. if we drop down to 20%, we're seeing acceleration in earnings growth. that's not good for a company for a company that should be growing at 50% to 60%. >> people will ask questions and you'll be able to get answers. we'll continue to have this conversation. a lot of you are interested about whether or not you should buy facebook. matt, good to see you, always always. more than $1 billion a stock. that's just for starters. one of the most expensive subways of our time. waing.. you can feel. introducing the all new cadillac xts, available with the patented safety alert seat.

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it is one of the biggest public works project in american history at a cost of $4.5 billion. that's just for the first mile and a half. i'm talking about new york's

second avenue line. it would run nearly the length of manhattan, would cost between 22 and $24 billion. what is behind this mammoth tab? i went ten stories beneath manhattan's surface to get to the bottom line. backhoe excavators that can cost $700,000 apiece, man lifts that sell up for half a million bucks. see that hi drawlic drill jumbo? they can go for 800 grand a pop. these are machines of modern-day civil engineers. new york city has them working full speed ahead on the new subway line. way back when the first subway in manhattan was 21 miles and it cost $35 million. this one is about a mile and a half for about $4.5 billion. that's more than $1 billion a stop. and that's just for phase one.

we went digging ten stories below manhattan to find out what goes into the bottom line on a new subway line. >> it's a bargain. $800,000 a pop. >> reporter: the most massive piece of equipment used is the tunnel boring machine. the last time new york built a subway, it used the cut-and-cover method. digging from street level. boring is much more efficient and disrupts life above ground a lot less. >> the one that did this is 22 foot in diameter. it can go on average about 50 foot a day. >> reporter: one of these things costs $12 million and requires 20 people to operate it. at 50 feet a day, boring two mile-and-a-half tunnel -- >> you must do the tunnels before you do this. >> reporter: and highly specialized laborers are the ones doing that. sand hogs, or urban miners, work

alongside operating engineers who drive and maintain the machinery. >> on average, we pay a guy about $1,000 a day. and that's base salary plus benefits. >> reporter: it's putting people to work in a tough economy. the metropolitan transit authority expects phase one of the subway, that's 3 1/2 stops and a new tunnel at a fourth stop, to create 130,000 jobs, with an economic impact of almost $18 billion over the nine years of construction. >> new yorkers keep asking why it takes so long. it is normal. it is what it takes. >> reporter: all the while americans are footing the bill. no matter where they live. >> second avenue, right now, $1.3 billion comes from the federal government, and the rest, 3.15 comes from new york. >> reporter: the portion from new york comes largely from new york state bonds, and mta bonds. >> 2016, when we swipe our card

and ride their first train, it will feel real good. >> thanks for joining the conversation this week on "your money." we're here every saturday 1:00 p.m. and sunday 3:00 p.m. stay connected with us 24/7 on twitter. have a great day. -- captions by vitac -- www.vitac.com you're in the "cnn newsroom." i'm fredricka whitfield. we're following two big stories right now. breaking news from nigeria, a plane with more than 150 people onboard crashes. zimmerman is back in jail. george zimmerman was quiet and cooperative when he turned himself in. let's begin in sanford, florida. that's where george zimmerman has reemerged after six weeks in hiding. and is now back in jail. his bond was revokedy