>> hi, everyone, welcome to "on the money." the mark else get off to a rocky start for the new year. a correction coming. what does the weak jobs number mean for your portfolio. america's war on poverty. 50 years later. who is paying the price. what should the government do? how far have we come? dramatic new way to think about your health from a pioneering doctor. hits surprising recommendations to live longer and better. on the money starts right now. >> a look at what is making news "on the money." a disappointing jobs number. the economy created 74,000 new jobs in december. that was the smallest monthly gain in three years. well below expectations of

200,000 jobs. unemployment rate dropped to 6.7%. the lowest number since october of 2008. that's because more people, were leaving the work force. actually, participation rate fell to 62.8%. the lowest level since 1978. the markets continued their choppy run to start the new year. falling thu ining thursday. stocks mixed on friday. history was made in washington this week. the senate confirmed janet yellin the first woman to lead the federal reserve in the 100-year history. that will make her the most powerful person in finance. and will take over end of the month. the fed released minutes from the december meeting. it showed members debating their decision to scale back the bond buying purchases. and cautious and all but one fed members agreed to trim its $85 billion in bond purchases by $10 million. and the cash keeps rolling in for apple. the company announcing customers spent $10 billion last year. including $1 billion just in

d.ecembe.cecember alone. disappointing jobs number, slow start for the new year. joining me is chief economic strategist and the chief economist at moody analytics. thank you for being here. really strange numbers came at us this week. friday's jobs report. something a lot of people are scratching their head about. what does it all add up to? >> nugothing. they're not consistent with any data we have gotten. and probably would have played a role, pretty cold. and there is some data in the numbers that suggest, more people not working because of the weather. broadly speaking i don't think anything changed. we'll see that in the subsequent months. >> gain of 74,000. write that off something adjusted. the thing that caught my eye, drop in participation rate. what is happening here? >> well, two things. one is, we do have -- the late

50s, early 60s retiring. the participation rate has fallen by 3 percentage points since the recession. 2 percentage points of that is due to retirement. other percentage point, people discouraged. they can't find work that pays anything. certainly not enough to compensate for, child care, or for, for, getting to work that kind of thing. so that, that percentage point represents what i would call typical -- discouraged workers. >> throw the numbers out. really hard to do when you are looking at the market every day. what do you do? >> i don't das grisagree. so many data points in a positive direction. hard to believe this it the controlling number. thankfully get another number a month from now. i am basically viewing this as noise and not a problem. banking that weather had a lot to do with it. the underlying e kn me really is improving, becky. for the first time -- i think

the risk to the -- the economy is to the upside not the down side. >> your predictions for the years. what do you expect happened. stocks this year. we know the economy is probably looking like it is finally improving. the stock market got a luft gailuft -- the stock market got a lot of gains. >> we did borrow some of 13, 14 in great gains. doesn't mean we have a down stock market. it will be more muted. little bumpier. call it a normal year. last year was abnormal for two reasons. the pace of gain. the way we got there. hardly any anxious moments at all when you look at a chart. this will be a bumpier year. we'll amy do okay. stocks will outperform financial assets. an important point. don't expect 30% auchlt o. >> we should gain 7%, 8% a year. >> maybe better than that. >> think bumpier. decline of 10% or something at this point?

up aawe corre awe off corrections are normal. having a 10% correction. surprise me if we don't have one. >> should you jump in if you see a decline of 5%. 8%. >> if i have money, i am dollar cost averaging starting to day. if i have extra powder and we do get a pull back, assuming the fundamentals are okay, yes use it as a buying opportunity. >> mark, one thing i am concerned about, what the fed thinks of the unemployment numbers. heard from them they're ready to start tapering. are they thinking my gosh. what were we thinking with that announcement? did we need to hold off on that? >> no. they're doing what i'm doing. saying this isn't reality. reality is something closer to what we have been seeingen previous months. that will become clearer in subsequent months. don't think they will change a thing. they have a script. stick to the script. >> stick to the script. won't see additional tapering past what they told us to this point until they see better numbers. >> exactly. pretty much told us they'll taper, $10 billion.

$15 mainder of the year. that's the script. don't think they change that. unless job growth accelerates to above $250,000 a month. they will speed up the tapering. or we go back. and then they will chill things down. other than that. they have a scrip, stick to it. >> we are about to get into earnings season. what will we hear? >> earnings will be okay. the fourth quarter. fourth quarter. all kind of unusual, nonrecurring sorts of things. what i am looking at, what do they say about 2014. if they say my number, i have no clue what tomorrow looks like. that is not good news. more coming out. saying we have visibility. things are a little better. >> what would you tell people? stocks are a better police to be putting their money. are there sectors, stocks within that that you think are the best plays though? >> believing the economy will have its best year at 3%, not a

beg numb big number in a decade. lean cyclical. be in the way of improvements in the economy. soen dus tr eindustrial stocks. i prefer softer cyclicals. deeper ones. energy. materials. prefer pricing material we won't get yet. >> >>en -- why do you look them? >> they're not cheap. i don't disagree. we'll get positive earnings surprises. a subset of that. the defense stocks. have done well. more to go. >> bob, mark, thank you for being here on set. really appreciate it. up next, we are on the money. it the american dream just that. just a dream for america? upward mobility, 50 years after a war on poverty was declared. the leading cancer doctor who says the way to make health care less expensive. use less of it. and tips. and look at how the stock market ended the week.

>> this administration today, here and now, declares unconditional war on poverty in america. >> we will not be a short or easy struggle. >> he wasn't kidding, the war on poverty hasn't been easy. 50 years after president lyndon johnson made the declaration has it been successful? programs like medicare, medicaid, safety net a way of life for many elderly and low income families. are they kushg tcuring the pro ? joining us is jared burnstein, and adviser to vice president

biden. joining from american enterprise institute is the president, arthur brooks. jared, arthur, thank you for joining us. jared, you first has the war on poverty been successful? >> i don't think you can put this into a win/loss framework. you've miss too much nuance. there still are too many poor people in america, if you measure poverty accurately, and the official measure people agree should be kind of thrown out. because it really doesn't account for all the stuff you mention in your introduction. we have 50 million poor people in america. told that to president johnson after all we have done, i think he would say, wow, what's going on. at the same time -- the poverty reduction impact, of the programs he introduced and many have been expanded since then have been actually quite successful in terms of reducing the rate of poverty. they kept -- something like 40 million people including 10 million kids out of poverty last year. >> arthur, what is your take? >> jared is mostly right.

the fact that the -- 50 years later and $20 trillion later. we have less of the misery. the poverty that was so grinding at the time, lyndon johnson made the pronouncement. a safety net is something that is a real accomplishment. something we should be proud of. that said, we haven't expanded an opportunity society for people at the bottom. i'm sure jared would completely agree on this point. that if we actually don't expand opportunity, we haven't won the war. >> you do agree with the basic points at this point. you both have slightly different takes on how we should fix the problem or improve the sich wtun from here. arthur, what it the way you think this need to happen? >> key thing when you talk to advocates for the poor and poor people lifted out of poverty. number one is transformation. personal transformation. people in poverty. that means policies that don't get in the way of the precursors of success and happiness. faith, family, community, work.

the government is in the way of those things too often. that's, that stops personal transformation and relief. relief is kind of what we talk about with welfare programs. most importantly, opportunity. we are not taking, education reform seriously in this country. we have -- entrepreneurship that helps rich people. but terrible for poor people. almost impossible to sort of landscaping business or hair braiding business the way in years past people would escape. >> arthur looks at the government as impediment to get things done. jared, you look at the government as, the way that things, the program should begin. awe up alet me take issue with one big number, arthur threw out. i do think that is misleading. i agree with a lot. he said $20 trillion. if you accumulate all the spending. medicaid, middle-income people. spent down their assets. you can get the number. it is 5% of gdp. we scare people when we say 20%. i agree with enterprise.

entrepreneurship, sure. and, i think it is especially important for, poor people to have access to, not only those kind of programs but the quality education. i think where maybe we part company is the role of massive market failures. you do have a giant housing bubble, and a crash, and innovative finance on wall street. really hurting the prospects of people who are poor. due to, no fault of their own. and i think we have to have a solid safety net in order to catch them. >> gentlemen. let me ask you both before we jump off. marco rubio, senator this week tried to take this and make it his own with his own issue with his own war on poverty. the republicans take this issue from the democrats what do you think? >> yeah, i think they can. this it the new right. i think the new right will inevitably win on the basis of fighting for people as opposed to fighting against things. look, the republicans and the right have, basically, found themselves in a, in a terrible political situation because they have been in the business of

fighting against things. fighting against deficit, debt, taxes et cetera. i agree with fighting against those things. fundamentally the right has to be in the business of fighting for people. jared and i. look, prakt camctically agree. we have got to fight about something. let's talk men minimum wage whe you are completely wrong. >> look. i hate to agree with him. but it's, the point, that's exactly the discussion we should have. but here we, here is the real substantive. it is morp th turf of cutting dt and deficits. shrinking government. marco rube yo and paul ryan have in this debate, the rhetoric is about let's help people i you get a few levels down and you really should. i encourage arthur and his institute to do so. you look at the budget. look at the idea. for exam pple.

fixed amounts to states. let them deal with the problem. that completely takes away the counter cyclical ability of the safety net to ratchet in a recession. it will increase poverty. rhetoric, is there, the ideas are going the wrong way. >> hate to leave it on that point. but, i want to -- >> great poent int to leave it . >> you are both smart on the issues. have you back soon. thank you for being with us. >> thank you, becky. thank you, jared. >> we are on the money. looking to live to 100, afford it. short rules for a long life. you can start today. just stay away from the snackize lo -- snacks i love so much.

>> who are we? the thinkers. the job jugglers. the one whose turn idea into action. we made our passion our life work. we strive for the moments where we can say, i did it. we are entrepreneurs who started it all. we are the signature. legal zoom helped start over 1 million businesses turning dream nears business owners. and we are here to help start yours.

>> if you had all the information that may help you live a longer life would you use it? my next guest says what you do today could help avoid illness and costly health care in the future. professor of medicine and engineering at the university of southern california and author of a short guide to a long life. doctor, thank you for joining us. >> thank you, a pleasure to be here. >> the book has a lot of comments and things. things we know we should do. but it is really important to do all these things correct? >> listen. we have been talking health care finance for the last decade in the country. we don't talk health. the conversation need to change. if we prevent dims easease we wo better. health and financially.

>> want people to know you are not a pop culture doctor. you are somebody who is a well-known, cancer doctor, cancer researcher, you cam e to the question trying to figure out why people are sick. you got tired of telling people the cancer fight was over. there was nothing more you could do. >> couple times a week, i tell them i have no more drugs to treat your cancer. i don't want to do that. i believe most diseases we can delay, prevent. we have ability, technology. we don't use the it. >> we may not do that. i said a lot of things were common sense. say things like cohabit, practice good hygiene. some as easy as making sure you take care of your teeth. >> the data thing. >> what art, if you had to pick one of the most important of all of those, can you do it? >> it is always hard how to pick one. something as simple when you have your meals and go to bed. schedule is tremendously important. people who graze, that is eat whenever they're hungry have 81% more diabetes. if your lunch at noon, tomorrow

at 2:00. stress hormones. metabolism goes down. you gain weight. you don't function as well. just having your meals. impact on health. if i am ceo of the company. i would make elevators coin operated. >> didn't use them. >> every time they don't take stairs. it is costing the company money. one case of heart attack costs the company $78 t prevent it. >> in terms of other things we should be doing. one of your lessons is make sure you eat real food. what does that mean? >> simply. you know, we were designed to eat and absorb real food. away from the vitamins, supplements, shakes, juices. anything where there is something you can't pronounce. avoid it. get real food. perimeter of your grocery store. get to know your grocer. what came in fresh today? >> people called you a controversial doctor. makes me chuckle. what is controversial about some of the common sense things.

>> i'm as conservative as you can get. everything we talk about in the book, all 65 rules are data, based on clinical trials, best medical journals saying what to do. a lot of people, take vitamins, supplements makes me stronger. no data the i say show me the data. >> something interesting, particularly for a business audience. there are massive industries, built up. making sure you take your vitamins. make sure we take these foods we tell you are healthy. did so much to mack them healthy. >> we spend more on vitamins and supplements than medical research. in the history of man kind. 60 plus different randomized studies showing no benefit to supplement, harm, cancer, diseases. we need to take note. make change. whether you are a parent. ceo of a company or an individual, we have to pay attention to, we want to change health in our country. >> there was information this week showing that the rate of growth for our spending on health care actually declined a

bit. should we be excited about that. how do you read the information? >> no offense. still growing. the rate of growth is going down. it is crazy. our country is about treatment of disease. have to focus on prevention. can't wait until something happens and react. let's go the opposite way. a pill a day if you tack ke it reduces death rate of cancer. heart disease by 22%. stroke by 17%. >> the pill? >> baby aspirin. if everybody over 40 took a baby aspirin, dramatic effect on life extension. >> take it if your doctor hasn't advised you or don't have a profile this runs in the family? >> fantastic point. discuss it with your doctor. health care will change from the bottom up. conversation. go to your doctor, say why aren't i on a baby aspirin? you don't have any risk factors at all, or but for most people it works. heart disease and cancer are going to get most of us if we can delay or prevent them, good thing. >> doctor, thank you so much for

coming in today. >> my pleasure. thank you. >> the book is called "the short guide to a long life." check it out. up next, take a look at news this week that will have an impact on the money. what your boss isn't telling you. secret to on- the-job satisfaction. it's nice work if you can get it. ♪ ♪ >> it'some pull physics, a body at rest tend to stay at rest. while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms.

>> for more on the show and guests go to our website.

and you can follow us on twitter,@onthemoney. our handle. the stories coming up that may move the market and impact your money. earning season is back with big financial, jp morgan chase, wells fargo, bank of america, goldman sachs and city, reporting quarterly results and industrial general electric. mun da monday, the biggest car show in the united states returns to detroit. tuesday, retail sales for november are due. friday, the housing starts for month of december are out. also on friday, the first lady michele obama, celebrating her 50th birthday. happy birthday to mrs. obama. finally not your imagination. your boss is happier than you. those in charge at the office they like it. that is according to a study out this week from pew research center. 75% of self identified managers say they're very satisfied with their current job compares with less than half of the workers. the happiness gap translates to

home and money as well. more bosses than workers satisfied with their family and financial situation. turns out it really is good to be king. that's the show for today. thank you for joining us. next week, rolling along in detroit. we'll see the latest and greatest from america's biggest auto show. make sure you watch next week, we are on the money. see you here. have a great week, everybody. see you next weekend. [ female announcer ] i like to mix things up a bit

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for your school. good morning. picking up the good morning, picksing up the pieces, severe storms wreak havoc up and down the east coast, collapsing construction, turning roads into sheets of ice, causing nasty flooding. this morning, dylan has a wrap-up of the damage and a look at what's coming next. taking another swing, new york yankees slugger alex rodriguez vowing to you fight his suspension for the 2014 season, the most reserve punishment for doping in major league baseball history. this morning, what some fans are crying foul. all that glitters