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Chris Stirewalt, FBN's Nicole Petalides and Michael Barone discuss the latest economic data and the political repurcussions.
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There's also a symbol.
The things about free enterprise.
Free enterprise the president means taking money from the taxpayers.
-- giving it really to his friends.
-- -- As Republican nominee Mitt Romney -- in -- place they call Solyndra a California solar panel manufacturer they've got a half a billion dollars in federal no interest loans as part of the -- stimulus.
As Mitt Romney continues to make his case against president Obama's economic policies particularly.
The stimulus and this is power play.
I'm Chris -- welcome back to studio three it's good to have you here on this Friday.
Even if the jobs numbers.
Are not too happy.
We are happy that Michael Barone is here.
Mr.
Brown's introduction take some time so let's get right to it fumble blah blah blah blah we don't love -- we say that you are the senior political analyst for the Washington examiner that you are fellow at the American Enterprise Institute.
Yeah and that you are the principal editor author the almanac -- -- off our co author.
The almanac of American politics -- most important book in the political business.
Welcome but the ground.
Well welcome -- -- all right quite so now the jobs numbers out today.
Neither you nor I know any thing too much about the economy having given our lives over to politics.
Mostly.
We will be joined -- -- that -- from the Fox Business Network momentarily she will bring us up to speed but we do know this.
At 69000 jobs created in the month of may.
We are well behind what you need you need economists see -- need at least 90000 maybe as many as 120000 just to tread water with population growth well.
And if you go back to the Reagan recovery in 198384.
You hit one -- that was 760000.
Jobs that's more than ten times.
The number of the net new jobs last month so I think for a -- over the president's team heard this news it was what I call a true word moment of which.
Our question of -- -- lonely relay the first word on this podcast which is all.
Cold yes oh yes and it's not -- Now the problem and in looking at this in the long -- historically speaking they view in the second quarter of the year.
He's -- voter attitudes sort of get baked in the cake about how things are in the country how things are going and voters tend to render a decision and that's what happened George H.
W.
Bush.
In 1992.
Was that the first quarter was okay.
And then the second quarter was not so hot blog was block.
And basically people got the message that they thought we were still in recession technically we weren't an actual number of economic research -- Gibson we got out of this recession in June 2009.
Well.
You know we're sitting here three years later and you've got 57 to 67%.
Of folders depending on your poll saying.
We're in a recession.
Yeah it's a problem.
And perception trumps you know the White House today is out today and that their spend their take on the situation as -- look we we're losing jobs under George W.
Bush we were losing.
Jobs when we had.
When the president first of office and we're still gaining even if it's not enough we're still getting but the trend line.
Well basically we saw was this is apparently -- graphics.
We went up like this we were going up like this it looked pretty good and then starting in April it starts going the wrong direction.
And the trend matters more than almost anything.
Well and we saw the revisions in the past months downward revisions in the number of jobs that are created according to be honest your -- -- and left and we also saw yesterday that last that the first quarter gross domestic product number shrank in the big downgraded it from 2.2 21 point 91 point nine is not us it's not a strong recovery let's put it that way.
I Michael bell let's talk to somebody who knows something about economics instead of just you and I talking -- this bit of economics.
And welcome to the big show for the very first I'm Nicole Petallides.
You know her from the Fox Business Network she's on the floor at the New York Stock Exchange -- everything.
-- -- now Nicole welcome.
It's -- stock exchange it exactly right yes.
Okay so I take it that this number this job number has not been well received by the folks there.
Not at all you know the hope here is that ideally they hope for better numbers and I was talking to a Wall Street -- this morning.
He said the idea did you expect anything else call.
So the truth of the matter is that while they hope for -- better they hope for improvement ultimately makes fact that they're going to see tough economic numbers including mess that the monthly jobs report.
Which is the worst in our late it's most important number we get because how can America function if Americans don't have job.
And what's the outlook for this quarter of my.
You're talking about the fact that this is 200 the year in which voter attitudes is that what's the outlook for the summer.
Well what's interesting is you have a very much a wait and see mode now right ahead of elections.
This corner also -- is already -- thus far.
We haven't gotten -- June yet but he had several lanes in the Dow that are down more than 20% in this quarter so JPMorgan Bank of America city.
Not Citigroup caterpillar.
Cisco Systems those all down 20% just this quarter in June -- and that hasn't been executed yet but going forward for this summer.
It's going to be very tricky -- people go back and forth the volatility index -- fear index.
Now one is an all over the place so it shows you that while people are interested in getting in there -- still very nervous about doing -- It is still the New York Stock Exchange in -- is always call the ladies thank you so much for that but that's -- have a great day.
All right Michael so the the wait and see if it has been.
If there's an interest staying irony for President Obama about this the uncertainty itself of the possibility of political change.
Causes.
People to -- it causes industry causes business men and women to say well if there's the possibility.
That we're gonna have a change in regime in the United States and that we're gonna have a much more.
Free market -- kind of leadership and Mitt Romney.
Why not wait until you make your big financial decision.
Well I think that's one of the things is going on there's also changed some policy that are currently.
You know in training which is the you've got the good tax amendment.
Again -- at the end of care and respect.
You know and under current law you're gonna look I have huge cuts in the defense budget you're gonna you have a big increases in -- rates.
And so forth unless congress does something about it and obviously.
You know vs the president does fight the grand bargain negotiations with speaker John Boehner last summer.
It's obviously congress not gonna do anything before the election and do you have budget.
You know senate budget chairman Kent Conrad Democrat of North Dakota saying well of course we can't do anything before the election.
But isn't that kind of logical we have the most liberal president since Lyndon Johnson.
And we have the most conservative house since Nicholas longworth why wouldn't there I mean this well this is as fast -- you know this is do we we can blame James Madison team this -- that other members of the constitutional convention because we have you -- these six sets of elections every two years.
2008 was by some measures were the most the most democratic -- in history there -- also popular vote with 36 man southern states.
Highest democratic percentage ever 2010 by some measures was the most Republican here in American history.
The bite if you take white voters the Republicans and house popular folk on a higher percentage in 2010.
They've ever gotten before so.
You know both parties have histories going back more than a hundred years so.
You know the constitution gives us -- president elected and he usually democratic your house selected and hugely Republican here.
-- senate two thirds of which were elected -- democratic leaders among third and every Republican here.
It shouldn't be surprised that they don't agree with me.
Term for that is is as good as they would say tried Althea is on now and that's why we gotta have this election and that's why Michael Brown's book is on every desk of every person who does anything that has to do with politics and that's where they read -- the examiner.
