Ex-CBO director: US must not accept 'new normal' on economy
New warning about rate of job growth
- Duration 3:36
- Date May 4, 2012
New warning about rate of job growth
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Most economists tell you the US needs to consistently at -- at least 200000 new jobs every month in order to get back on track my next guest says.
That's not nearly enough dug -- she's she's a former director of the CBO the Congressional Budget Office.
And president of American action forum and Doug welcome back here to America's Newsroom you just -- just wrote a piece for national review along with Ling chow the former.
Labor secretary you had very little good say in this.
Including this our question is why why has creating 200000 jobs become the litmus test.
-- be successful jobs report were not -- that number.
And you're not impressed are you.
Well I've been more thinking 200000 will be successful -- we got today a 1151000.
Was well below that and today's report bill was was long very little sunshine in fact.
So little at 342000.
Americans simply gave up and went home stop looking for work we we need to do a lot sort of -- VP labor participation.
Rate is dismal.
Of the percentage of Americans are eligible for working you'd have to government that the numbers -- 63 point 6% today.
You have to go back -- 1981.
Before the numbers that well.
This is a testament to I've completely failed set of labor market policies -- this is the lowest fraction of Americans who were even trying to work.
In in three and a half decades.
We need to put in place policies which encourage businesses to expand to add to their their factories to add to their payrolls.
We're not seeing that kind of attempt to what we're likely to see instead is more calls for temporary stimulus and we're in the fourth year of that failed experiment it's time to try to go back to the principles.
They gave us three and 400000 jobs in the expansions in the eighty's and ninety's that we get to the solutions in a moment here but I think there's a very important point for people understand how we dig ourselves out of -- you mention.
We had -- 1151000.
Jobs in the last month many economists say you have to be higher than 200000.
You say that's not even good enough you -- have to be -- 250000.
Just hit it to match the population growth.
We would expect the population to grow and we would expect these discouraged workers to come back into the the labor market you need 250000.
Jobs a month to take care of that.
And that wouldn't put all the the unemployed workers back to work south.
A much more aggressive strategies necessary to many Americans have been out of work for far too long.
Well based on that logic Doug you would need to double.
The number of jobs added in the month of April and then go beyond that which is.
It's a long way from there right now okay were pro growth policies that you spells.
What do you think Washington could do and we think Washington too willing to do with the moment.
Well certainly if Washington looked around -- world economic history it would find out that if you're a big debts and -- growth.
The recipe is to keep taxes low and -- them to be pro growth so don't talk -- tax increases talk about tax reform.
And you have to reform entitlement programs that's the source of the red bank that's the source of the -- explosion.
And it's also a threat to future low income Americans and seniors who social statement is eroding underneath them so.
But that's it tax form entitlement reform and we're not -- in Washington to -- and on those points big swing and a miss over the past year and a half dug -- he can thank you for your time all right.
To our viewers at home shooter he -- a hammered foxnews.com or on Twitter.
-- Bill Hemmer because USB YA are online right now he can fire way about our economy.
How your feel and how things -- are in your neck of the woods you know where you live and for the night I think we're on our way back or.