tv On the Money CNBC January 28, 2017 5:30am-6:01am EST
ings . welcome to "on the money." i'm becky quick. higher ed at a lower price. a new plan for tuition-free klemp. the dow hits a big number, but should a stock market milestone change what you're doing for retirement? the high price of saving lives. hard decisions first respond verse to make because of skyrocketing drug costs. diet and your dna. losing weight and listening to what your genes have to say, and forget the nachos and wings. a new type of super treat for the super bowl. "on the money" starts right now. >> announcer: this is "on the money." your money, your life, your future. now, becky quick. we begin with free college
tuition. what new york governor andrew cuomo is proposing for two and four-year degree are for state klemps for low and middle income families. sounds great. but it's one part of paying for an education. that is our cover story "the cost of college." >> if you come from any family earning $125,000 or less, the state will provide free tuition. >> the average cost of tuition at a public college nationwide is approaching $10,000. at private schools it's more than $33,000. but that's only part of the actual cost. room and board averages more than $10,000 at public klemps and even larger expense in tuition. nearlies 12ds,000 at private schools. more than 20 million americans attend private or universities and many taking on massive debt. in 1996 the average college student graduated with nearly $13,000 in loans. the 2016 graduates that number
nearly tripled. >> it should be a wake-up call to this nation if you really want to be competitive globally we have to have the best educ e educated work force. >> so is governor cuomo right? a senior foley oh at the manhattan institute and co-author and sarah in sociology at temple university and beth, start with you. you are a graduate of the state university of new york, but you are not a fan of governor cuomo's plan for this. why is that? >> that's right. though i really just have one big complaint about cuomo's proposal it's largely regressive. free college proposals in general tend to benefit the more well-off households in particular, this one's even worse just because of the way it's designed. students will go to the federal aid system to get frantz from there. that's going to cover a lot of the cost for the lowest income households and in a new scholarship proposed will kovler the difference. so that gap is biggest, or the highest income households. >> the people who don't qualify
for the other financial systems along it's way. both of this money going to pay for middle and higher income students. >> exactly right. >> sarah, talk about this a little more. your bok called "plays the price." you say middle income students are struggling with tuition, housing and food. do you think this plan would help? >> i do think this plan would help. one reason, certainly, the middle class would finally get some financial assistance they so desperately need and that low income students contrary to what beth is arguing would have the biggest benefits of this plan. the main reason is while there is existing financial aid available to them, many of them never come to college to receive it in the first place. what a lot of this plan is really about is a strong, simple message, that you need to come to college in new york state, and we will make it tuition-free. >> i can understand both of your perspectives on this. the idea making college more
affordable, make everyone understand they can get to college. a lot of goals. but if we suddenly put lots of taxpayer dollars towards higher education it allows what may be a broken business model, higher education system as it is, to continue to not fix itself, not get disrupted in the ways it needs to be. beth what do you think about that? >> exactly right. college is very expensive, no question, and sarah and i both can agree on that. >> education is out-pacing the inflation rate the country as a norm. >> exactly. inflation in education exceeds inflation in any other market in the economy including health care. i argue taking the bill sending it to taxpayers ran than the individuals too benefit from college itself is not the way to address the problem. >> sarah? >> i have to say in the public sector costs are not out of control. what's risen is the price. that's entirely happening because the states are withdrawing their support, meaning that they're putting in less and asking families to pay
more. we don't actually need disruption in this sector, frankly. we need actual support. >> i would disagree with that. i mean, look, you can look at it a million different ways, but the amount that goes in versus what you're getting back for that. i mean, there are things that need to be fixed when it comes to just the higher education stape loan. assay this as somebody who went to a public college as well. >> honestly, we haven't really seen any declines in college completion rates even as we've sent more people to college with less preparation than before. >> but have people coming out with $60,000, $80,000, $100,000 in debt. >> we have a student debt problem the problem is not $68,000 our $100,000 worth of loans. the problem, people graduates with debt usually $5,000, and no degree. meaning no chance of paying it back. one main reason is that is happening to so many people out there is they can't afford to stay enrolled in college very
long. this plan does address that exact issue. >> there's a misconception that the people who have lots of debt are necessarily struggling the most and she's right, that people at the very low balances having the highest rates of default and other measures of financial hardship. age should be targeted against towards lowest income individuals rather than broadly delivered through a free college regime. >> thank you both for joining us. >> thank you very much. >> thanks for having me. dow 20000 happened this week first time ever. how big a deal is it and should 2 change what you're doing? richard bernstein ceo of richard bernstein advisers. thanks for joining us today. >> thanks, beck. >> if you're saving for retirement and you see this dow 20000 milestone come up, does it matter? what should you think about it? >> well, i don't think the number really matters, although i guess judging by the question, people are starting to wake up that maybe there really is a bull market after seven or eight years. but what should you do? i think if you're a millennial,
a 20-something, 30-something, whatever happens to the market, the ups and downs, the gyrations, are completely meaningless. think about it. 30-year or 40-year time frame. older, approaching retirement, an old rule of thumb. i don't know if it means anything, the rule of thumb, take 100 mine es your age how many equity you should have in your portfolio. you do that rule and not close, thinking to do. why haven't you been there? why are you sitting on the sidelines. >> go over that rule of thumb for people who don't know it well. you're say, 60, take 100, subtract 60, 40%. percentage of your portfolio in stocks versus bonds? >> more or less. there's nothing that really says -- no academic research that says that's the perfect number but it's not a bad rule of thumb and if you're not even close to that number, like at 20%, your example, should be 40%, you have to really wonder why am i not to some kind of
normal allocation? whether 40%, 45%, doesn't make much difference, but sitting there at 10% or 20% equities there's something wrong with your allocation. >> rich, it's impossible to time the market. you pointed it out. people sitting at home realizing, wow, the stock market has been on a bull run. seven, eight years come more than 13,000 points from the lows after the financial crisis. is it too late? you see 20,000? think, wow, i missed the entire run or think there's something here that could let this run higher? >> no. i don't think it's too late, becky. we're in, to use the hackney baseball analogy, we're roughly in the seventh inning, maybe the seventh inning stremp, which mean there's is more to go and i think the normal signs that would give you a warning that you should start reducing equity allocation, in other words, the probability of a recession increasing, the probability of the fed tightening monetary policy too much, the probabilities earning, falling over and we're a profits
recession. despite the normal richlgs always in the equity markets. remember no free lunch. i don't think rinks are exceptionally high now. as i said, under-allocated to equities, yes, you should probably be in the equity market. >> rich, great to see pup thank you. >> thank you. up next we're "on the money." dollars and the hard decisions first responders have to make when it comes to saving lives. later, is losing weight one are your new year's resolutions. why looking at your dna may actually unlock the recipe for your perfect diet. a look how the stock market ended the week. now here's a
average closing above the 20000 mark first time ever and nasdaq arnot s&p setting records. markets climbing on hopes of a strocker economy, less regulation and lower taxes. though stacks were mixed on friday. america's economy grew at an annual rate of 1.9% in the fourth quarter of last year. gdp slightly below what economists expected and down from the previous quarter. consumer spending, home building and business investment all strong. if you've got an amazon echo for the holidays you weren't alone. amazon sold more than 3 million of the devices which answers to alexa when you speak to it bringing the total to more than 8 million since its debut in 2014. amazon doesn't release sales number but that figure is based on consumer surveys. more people in the united states are dying are heroin overdoses than gunshot wounds. that startling statistic is stark evidence of a growing opioid epidemic and there are tools and drugs that help. their cost rising putting a
squeeze on first responders. >> reporter: firefighters in farmington, new mexico carry four life essential medications. aspirin, albuterol, epinephrine and -- >> the important medications and the only once we carry here. >> reporter: medicines that can mean the difference between life and death and snore their cost has been a problem. >> it's up to almost $60 a dose now. in years' past, narcan was $15,s 20ds a dose. >> reporter: narcan is used to reverse overdoses from opioids, like prescription painkillers or heroin. as seen here in this video, it works rapidly as an antidote. >> there he is. back from the dead. >> reporter: but rising price comes at the same time as an explosion in opioid overdose in the united states. opioids kill more than 33,000 people a year in this country. deaths from heroin overdose alone according to the centers for d.c. control and prevention have now surpassed those from gun homicides. >> we deal with overdose issues
on a daily basis. >> reporter: approved in 1971, there are multiple forms on the market. a study found from 1996 to 2014 it reversed more than 26,000 overdoses in communities not including count lds more in hospitals. like san juan regional in farmington, this emergency physician confronts it's issue daily. >> it is an absolute vital medication for us in the medicine department. vitals to ems personnel. >> reporter: increasingly public servants want it in the hands of at many as possible especially first responders to use it to save lives. the prices pose a problem. increased costs investment in research and market dynamics. for first responders that often means making hard choices. >> if our medications cost more then that's less money available to buy to upgrade bags, for instance, or upgrade different things we may choose to or want to. >> reporter: so it's a story we've heard again and again.
the price of many or medicines rising often exponentially and in this place putting municipalities in a tough position dealing with this opioid issue. >> and the market dynamics have changed. code for charging more because we k. a lot of people react and say to that. what we see actually, multiple 230r78s of the generic form in the market. when some players raise the price, others raise the price. competition instead are bringing costs down is looking like it's driving costs up. >> not a competition like with epipen? >> right. now seeing more epipen competition potentially bringing costs down. >> meg, thank you very much. >> thank you. up next we're "on the money." a new start-up wants to help you get in shape. how they do it may surprise you. later, planning on hosting or going to a super bowl party? we've got food ideas that will step up your game. en used to the smell of lingering garbage... ...in her kitchen yup, she's gone noseblind. she thinks it smells fine, but her guests smell this.
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a few years ago neil grimmer start add baby food company called plum organics, running the business day in day out developed unhealthy eating habits and gained weight. he needed to make a change and his unique approach to his diet led him to make a new company called habit. neil, thanks for being here this morning. i love your story. because anybody who's ever tried to take care of kids, worked outside of the home now as you
focus on kids, work, other things, it's easy to slide a little on your own health. you took control of this by using science. dna tests, bloodworks, figure out what your diet should be. explain what you've found and how this works. >> correct. my journey led me to figure out that a lot of the answers to what foods we should eat are actually inside of us. we have a natural intuition of what our bodies need and in modern society where we have too much food, too much drinking, too much caffeine, not enough sleep, exercise, healthy food, sometimes we lump those into ints tuitions we have. habit is designed to tap into what our bodies are telling us using dna, bloodwork, a test we do on your metabolism to figure how you process fats, carbs and proteins, take it, put it in a personalized nutrition dashboard just for you and make it super easy, fresh prepared meals customized to your body delivered to your door. >> what did you find out when you did your own dna testing?
what did you have to change, in terms of maybe foods you were or weren't eating? >> yeah. the first thing i found out, that i was a middle-aged guy. that was a shock. but beyond that, you know, i found out that i was caffeine sensitive, means that the three cups of coffee i was drinking every day were not only keeping me up late at night, also were creating a higher risk for me to have heart issues in the future. i also realized that i was pre-diabetic, high risk for heart attack and lactose intolerant. after learning all those things i crafted a personalized nutrition plan with a group of specialists, and after three months felt better than i had felt in years. after six months, lost 25 pounds and had more energy than i had experienced in a long time. in fact, my daughter, my 13-year-old daughter was like, who is this guy? you know? so it was a life transformation for me and one that led me to believe that, you know, this idea and this kind of insight into your own health should not just be available for those who
can spend thousands of dollars, do globe traveling to get it done, but should be available to all americans. >> i agree. sounds fantastic but expensive. how much does this cost? >> well, again, what we tried to do, take what is out in the world a very complicated and expensive process and bring it down, make it really easy to do. and accessible for folks in the country. so the at-home test kit we're doing dna, bloodwork and this metabolic challenge is $299. and that, with, comes with that, the digital dashboard, really your personalized nutrition plan. >> who's your target customer? it's available in san francisco i know right now, but when could i do this on the east coast? >> well, we're hoping to get it national as soon as possible. but our target customer is really anyone who wants to really take the dot out of eating healthy. you know, anyone who wants to lose fwhact a more sustainable way or anyone that really wants 0 to drive their physical or mental performance with food.
really targeting those folks. >> neil, appreciate it. thank you for joining us today. >> thanks for having me. up next "on the money" a look at the news for the week ahead, and looking for the perfects snack for the super bowl? these are not diets we're going to tell you about right flou. we've got 25i69y ideas for the big game.
otm @cnbc.com and follow us on twitter @upon themoney. monday, pending home sales for december. then on tuesday, see how the consumer is doing with the consumer confidence index. wednesday, the auto industry will announce how many cars it sold for the month of january, and the federal reserve is set to make an announcement on interest rates. will we have a long winter? we're going to find out on thursday, when punxsutawney phipp, the groundhog, makes his prediction. friday, the labor department tells us how many jobs were created in the first month of the year. next sunday is the big game. finale of the football season, the super bowl. of course, our thoughts naturally turned to food. joining us now to give outside the box ideas for your football party is alana carp, head chef and culinary co-founder of plate it. first, talk about plate it. a food delivery subscription service you started in 2012. an industry that's kind of heating up. you hear about all kinds of places like blue apron and hello fresh, how do you distinguish yourself in that group? >> first of all, we think
there's so much opportunity in this space and really listen to the customer. 11 different recipes every week you can choose from that suits a variety of palates and dietary preferences. and we really listen to customers in terms of flexibility, when you want to order, how much you want to order. and how they want to interact with us, be that on android app or iphone app or through our website. >> basically i say i want this box you're offering this week. shows up. has all the ingredients i'm going to make something out of it? >> exactly, yeah. >> talk about the ideas for the super bowl. i have to admit, surprised me how does some of the stuff looks. i heard buffalo chicken pizza, i don't know if that's for me, but that's what this is and looks pretty good. >> took the idea of buffalo wings, classic football food, lightened it up on a pizza. you have the chicken with buffalo sauce a greek yogurt ranch and a thin rolled out pizza dough. >> it's not nearly as many calories as i thought, or am i
tricking myself? >> somewhere in between. >> this is super easy to transport. kind of keep all the pieces separate and then put them together at the party you're going to. >> really good. what's the second item you have? sliders? >> these are saucy meatball sliders, a couple things make them special, one is there's ricotta inside that makes it super moist, and the sauce is actually a meat sauce. use some of the meat from the meat balls to make the sauce. also nice about this, you can make it a day ahead. meatballs actually often taste better the next day. >> that is great! i'm not even a huge meatball fan but that is great. wow. really good. so you have your buffalo chicken pizza, meatball sliders. what do you do for dessert? >> this is a skillet cookie. i'll bring it over here. this is a fawn way to have dessert. >> can't forget the ice cream. >> sorry about that. >> all right. ice cream and homemade cookie. wait. this is the real deal. you're not eating any of this and making me eat alone.
never supposed to do. >> i 25i6789ed it all beforehand to make sure it was good for you. >> i love it. >> this was also easy to transport, great for a group, make as fun presentation. make as cookie feel special. >> fantastic. >> you'll be watching the super bowl taking this stuff with you? >> for sure. making these for next week. >> bring them back. i'm going to invite you to my super bowl. thank you for joining us. >> thank you for having me. that's the show for today. i'm becky quick. next week do it again, because we have more food. produce of the future grown inside trailers with no dirt no sunlight. it's a miracle. each week keepright here we're "on the money." have a great one and we'll see you next weekend.
. hi there live on the market site. a busy week for the markets. the guyless make sense of it all getting prpd here's what's coming up on the show. >> honestly we're outta gas. >> what the charts are saying about one hot sector. we'll tell what you it is and how you can cash in. plus -- >> $1 million isn't cool. >> buying facebook for just $3. we'll show you how to do it using options, and -- a soaring group of stocks could be in danger of stalling out and here's a hint. we'll tell you how to profit. the action begins right now.