. hi, everyone, welcome to "on the money." dising middle class. will a move b a city help it grow or kill it off. and american pharaoh's bid for the triple crown. >> it is history. 140 winners and i'm one of them. i still can't believe it. >> get what you're worth at your job. don't apologize if you're wrong. and cocktails and calculators. why your next date night should a spreadsheet. having the money talk.

>> this is "on the money." your money, your life, your future. now, becky quick. >> here is a look at what is making news as we go into a new week "on the money" america's economy contracted in the first quarter of the year according to the latest government data that strange by 0.7%. that is not as bad as economists predicted, but it was revised down from.2% growth. the nasdaq his a new all-time high on wednesday on the holiday shortened week, but it lost the gains on thursday. the dow was down on thursday as well after a terrible day for china's stock market. pending home sales hit a nine-year high in april. the number is a sign of the strength in the housing market. they were up 3.9% ff the month. that was well above expectations and at the highest level since

may 2006. and google will soon allow you to buy things directly from the search page. facebook and twitter already have similar functions on their pages. >> at city will be in minimum wage substantially. it will be $15 an hour by 2020. joining us right now is former labor secretary robert reich who is now a professor at the university of california berkeley and his documentary is now playing. raising it so $15 over a series of several years, is it a good thing? >> i think it is, the minimum wage right now is about 25% below what it was in 1978 adjusted for inflation.

low raise workers do need a raise, the rest of us are subsidizing their employers because the only way they can stay out of poverty is if we provide medicaid, food stamps, and other benefits. those employers are getting a free rise on the rest of us. >> what about the cost of jobs in terms of what cbo put out last year. there was a study that estimates if it went to $10.10 that half a million jobs would be eliminated. it makes you wonder at $15 an hour. >> yes, a number of studies since that study, the researches found that what happens when the minimum wage is raised, let's say 15% or 20% a year, you bring into the wage market a lot of people who otherwise would not be interested in having a job and that means the employers have more choice, more people to choose from, and that gives them more reliable employees, lowers

turnover, and the other thing that researchers found is that minimum wage workers, pause they spend almost everything they're getting, that spending is local spending that stimulates the creation of jobs in the area. >> it makes sense to me the idea that worker who is are making lower wages are spending all they're making, but the idea that you could increase it 15% a year indefinitely seems like -- common sense tells you that at there is jobs that no longer exist. >> no, you're right you decent it indefinitely. what makes sense is you raise it to the point where you are pretty much where you would be if the minimum wage say in 1968 was adjusted for inflation and you throw down a little more for productivity improvements, you try to do it over a five year stretch, a, i don't think los angeles is doing this,

but you can index it to inflation. that has been thrown out there. warren buffett has weighed in and raised controversy saying he thinks there is a better alternative. listen to this. >> i want to see people have more money in their pocket, low income people, and i think the earned income tax create is a far superior way. >> he just wrote an op-ed say the earning income tax credit is much better than a raise in minimum wages. >> that really is the largest states.erty prog peop don't realize it and it is a very good and important program. it is a wage subsidy for people at the bottom. you need and what has been found around the country is that a combination of the earned income and the minimum wage, and ideally an increase in both that is the best.

>> secretary reich, let's talk about the shrinking middle class. we know it has been under assault for decades at this point. first it was the manufacturing jobs that started disappea more recently some of the government jobs have disappeared as well as states and federal governments have cut back. i'm trying to figure out where the middle class, the next sort of impetus is, something in the middle class, where do you think it is? >> it is very different to tell. one of the areas is what we technician jobs. they have to do with installing, maintaining, and upgrated complex machinery in offices, hospitals, and every place else. we have a shortage right now in technicians. i think it can grow in the future. i e are new let's call them the new plumbers of the future. plumbers do very well by the way. >> right, but how do we get them trained i guess is the question,

too. there is something like five million jobs open and we still have high unemployment levels. >> there is a big mismatch between what employers need and the traini skills that people have. we have got to -- and we talked about this for years. we have to change our unemployment insurance system into a reemployment insurance system so when people close a job, they immediately get into job counselling and job surge assistance. th can move onward and maintain on try to maintain their incomes. we don't have -- community colleges should be the hubs of that kind of job reemployment system, and we don't have it yet. >> all right, secretary reich, thank you for joining us today. >> thank you, becky. up next, we're "on the money." the story of the triple crown contender that reads like a fairy tale. why the owners of american fair

pharaoh hope his race to the finish is only the beginning. and we'll talk to morning tv anchor and author mik mika b bring us your aching and sleep deprived. bring us those who want to feel well rested and ready to enjoy th aleve p.m., the first to combine a sleep aide and the pain --

the technology changes. the design evolves. the engineering advances. but the passion to drive a mercedes benz is the same for every

in just about a week we'll know if horse racing has the first triple crown winner 30 years. they're hoping there will be a storybook ending to their unlikely rise to the top of the racing world. robert frank joins us now with a story of mud, sweat, and cheers. >> this has been a remarkable journey. a owner that started off selling

beer in germany. they could make history. >> two years before american pharaoh won a race, he sold for $300,000. he earned more than $1.4 million in prize money. his value was pegged at about $10 million. in a sport filled with old money, ahmed and his son just tin are newbies. they started zayat rating. they have placed three times. out of 41 winners, i'm one of them, it's history. i can't believe it. >> the prize they walked away with was just the beginning.

when american pharaoh crossed the line, his value was estimated between $15 and $20 million. that is based on racing performance, physical shape, and most importantly his potential to breed another champion. two weeks after the derby, in a torrential downpour. >> why is the weather doing this right now? >> american pharaoh stormed the track and reigned supreme once genuining by seventh lengths. his value was upped by another $5 million. the next stop was new york's belmont stakes where the most famous hours in america takes a final shop at the rule of the triple crown. a race against history. one that no other horse has conquered in 37 years. american pharaoh expected to

jump in value north of $30 million if he is a winner. >> if he wins, his slvalue wille $30 million, more than 100 times his sale price. >> i understand the zayat family eleme lost the horse at auction. >> he is a businessman, if you bred a horse and it can sell for a million, you have to sell it. the last bid was $250. he got sellers remorse, he said i'm going to buy him back so he bought his own horse back for $300. people say that was crazy and now it looks like the smartest thing he has ever done. >> up next we're on the money. morning tv host and author mika brzeznski talks about

increasing your

every auto insurance policy has a number. but not everyone insurance company understands. those who serve with your time. we know what it means to serve.

others are earning a living. it's just what you do for family. it's hart to get past what you can't see today. balancing your career with your daily life is a challenge. in "grow your value" mik brzeznski shares strategies to achieve that work life balance. >> thank you for having me.

>> i think what struck me the most is the idea that work/life balance is almost impossible to hit, and you're very up front and very honest about that. >> i wrote "knowing your value" a few years ago and it talks about such a response. it is all sort of old tattered phrases. it is about what is your own definition and if you know your value and you communicate it effectively that should be a good starting point to growing it. >> let's take one step back and start with knowing your value. that is something that you came about through firsthand personal ex. men around you were getting paid more. >> it through a process of really working to fix that. half of it was me. there is part of the equation that women can control and that we should control and that we shn improve upon in the way that we advocate and

negotiate for ourselves. i did an event about a year before i started writing the book, and i had all of these wanted to know about their value. these are women who i was asking a reay good at that. and i said have any of you had any struggles at home giving your success and your incredible severs. they all looked as if i, seriously -- like something smelled bad in the room. they were like you went there? it was an awkward moment that didn't go away. i was like we have to write about this, and i went back and she talks about it in the book, they talk about the gymnastics they do in their mind to try and make it work at home. it's not easy stuff. >> part of your act in the white house whb you had a woman there who was the ceo of b.e.t.

when they offered her a job they asked her to name her salary. >> she names something way too low. >> this is what women do, we depreciate ourselves in realtime. this is something that we have to learn to do that men do really well. they're overconfident. they make up stuff they think they can bring to the table and then they say it. and you know what -- >> they sound good saying it by the way. >> they sound great. but i found when you overwhen sate in terms of your value and say i can do this and this and that, chances are becky you can. >> what is the defining moment are you really said okay, it is not just work, it's also home. >> i always say that to myself. i was always trying to figure out how how how. and it is still a struggle, actually. i have no solution or pretty bow at the end of the book, but there are moments in it, the book starts with i hate you, i hate you, i hate you.

that's a quote from my 10-year-old daughter. it's moments like that where i don't know how to do it. and i say that to myself and i think that is just as important for women to know that people like you or me, we don't have it completely solved. and we have the solution, anper. the imper fegs and the struggle that we sort of try and make up for every single day is, as a compensation, that we are always compensating and trying -- >> people pleasing. >> yes, that is the stuff can tweak. stop apologizing. dodepositdepricate to your employer or child. is there something that men can take away? >> they can learn a lot about the women in their lives and the women that work with them or for them. the women their married too. >> great advice, mika, i want to thank you very much. >> thank you, thank you for

on. >> up next, a look at the news for the week ahead. and why the topic of your next date n

for more on our show and guests, go to otm.cnbc.com. on monday, we will be getting personal income and spending for april, also an

important manufacturing index for may. tuesday brings may auto sales that is always a key economic number. on wednesday, the federal reserve releasing their beige economies. and the lunch with warren buffett charity fundraiser. last year the winner paid $2.2 million. people don't enjoy talking about mo is th biggest conflict in couples. how can couples get on the same page? sharon epperson is here about how couples can get the conversation going. >> the solution is to have open communication and talk regularly about your future.

maybe have financial date nights. making financial decisions should not be a shore. i talk to one couple who gave us the inside scoop on how they handle their money dates. >> many cups may think date night should be all about romance, but for brian and tera feldt, it is oft 10:00 at night. we're usually tired by ten, so that is our together time. >> we talk about budgeting. trying to set money aside for certain activities with the kids coming up. different expenses. summer camps. >> even on those rare nights out away from the kids, money matters are usually the main topics of discussion. >> when we do get to go out, and we have a babysitter, that is the topic of choice.

>> budgeting for vacation, buying a home, or day today finances, disputes over money are the leading cause of happiness in the home. communication is key for couples that want to find common financial ground. >> not talking about your money is what results in a lot of financial anxiety. people we find through studies, the one that's are most concerned about their money that have the biggest anxiety around this issue are people who don't know. >> financial advisor stacey francis says they should prepare for it once a month. make an agenda, share it with your spouse in advance. review key topics in the date night and add one or two issues to go over next month. it may not seem all of that romantic, but francis says it can be. >> overtime once you continue to do this, you're going to find that it does become romantic. especially when you find yourself on the same page.

couples on the same page financially those are the couples that stay together for the long term. >> brian and tara feldt agree. >> we have to talk about it. >> they don't always act on every financial issue they discuss, some months they may not mete their short-term goals and other months they make significant progress. either way they know that convening regularly is null to g their goals. >> what happens if you're in a relationship and the couple starts disagreeing on where things are headed. once the argue starts, what is best? >> respect, realize that you have to approach the conversation with respect for the other person, and what financial advisors say is important is to take the emotion out if you can b with and try to find a time when it is not a heated moment to have the discussion again. revisit it at a later time. and the key is to really just talk about it. and we were just saying often

thy text is via text. you have to sit, look at the person, have a conversation, and discuss what your goals are together so you can meet them together. >> definitely a good goal to strive for. sharon, thank you. that's the show for today, i'm becky quick, thank you so much for joining me. mark your calendars, national donut day is next week and we'll have the ceo of dunkin' donuts. keep it here each week, we're "on the money."

♪ this weekend on "extra." bobby flay's love triangle. his ex formally accusing him of having a relationship with "mad men's" january jones. >> the mystery around january's baby. the brokeback bachelor shocker. >> falling in love with a fan never crossed my mind. >> is the new gay twist really a giant stunt? then why the rock is going head-to-head with kim kardashian. >> you beat out kim kardashian. breaking celebrity wedding news.