US economy comes to a screeching halt
Debate on weak new GDP numbers
- Duration 6:29
- Date Jul 27, 2012
Debate on weak new GDP numbers
Also in this playlist...
This transcript is automatically generated
Hi everyone I'm Laura Ingraham in for Bill O'Reilly thanks for watching us tonight now let's get right to our top story the US economy.
It came to a screeching halt this spring growing at an anemic rate.
Of one point 5%.
And if that wasn't bad enough news for president Obama's reelection chances a new poll from Gallup.
Shows that approval of him by American business owners -- the second quarter of 2012 to just 35%.
-- what will the political fallout be from these reports joining us now from Washington DC economist Peter Murray State and Simon Rosenberg president and founder of ND NA it's a center left think tank.
All right gentlemen great to see you tonight let's let's talk first Peter about these numbers because one point 5%.
Seems to be disastrously.
Slow operate GDP growth we need to grow jobs at about 200000.
-- per month pace and right now our domestic output is crater act what to what say -- Well we have to grow at 3% a month to a quarter -- -- seems to get the kind of jobs creation we need in this is half that rate.
Simply consumers lost confidence in the second quarter they don't believe mr.
Obama's policies are working their very skeptical about its criticism of the private sector.
And this is just a terrible report it means more lousy job reports this summer.
Simon the president came out today with a new -- and it debuted on a national television but.
Saying I believe I believe in free enterprise I believe that's that's nice but.
The fact of the matter is that looks like free enterprise is -- believing in him as it might have two and a half three years ago.
Well there's no question that I think that Barack Obama which is the economy was growing.
At a more rapid rate now and then Mitt Romney which is that it was growing at a slower rate I don't think the economy is growing as fast as Obama wants or is doing.
As bad as Mitt Romney wants to Andre -- an election that that process wants the economy to yeah.
There my my term answer your question ridiculous thought Garnett -- that's okay so.
I think the point of this is that I I don't think the economy's growing as fast as Obama wants or as slow as Mitt Romney's campaign needs.
For Brock to get an -- Brock and the latest polling.
It's still up by six points in the Wall Street Journal poll the election were held today he would win I mean that's the opinion that matters most in the United States the opinion of those voters.
And I think what we're gonna see now is a debate about what to do now.
And I think on those grounds the balanced Obama approach right.
Tax cuts for working people investments in infrastructure.
Long term -- -- education.
And and -- -- path to bring the deficit under control.
Is much more what the economy needs now much more voters want I think he's in a strong position -- get reelected Simon.
Do you think what the president has done.
And what he pledged his path forward would bring to America has that come to fruition.
I think he's gotten a lot more done and there's been a lot more progress than is commonly understood when he took office we were losing almost 700000 jobs a month.
We now grown for.
Twelve consecutive quarters.
There is growth it's not sufficient I'm not gonna be pollyannish about this thing -- certainly don't -- we ever had in the history of the country since the sense that it really isn't a recovery it is a recovery and when he came and he was facing the worst economic conditions.
In 71 player.
If they're clearly beneficial that things are clearly better they're just not a good thing like debate.
They did a different way Peter need to reacted as if the president -- campaign in 2008 and said.
By the end of my first term voters you're gonna have a one point 5% GDP rate because my stimulus and my health care plan.
Are gonna bring this whole new air -- to the way we we would know or excuse -- the -- -- thinking about business in the United -- giving -- -- -- -- elected in 2008 with that campaign platform.
Certainly not folks -- it translated that into an 8% unemployment rate.
You know this guy did not inherit the biggest hole of any post war president Ronald Reagan you -- -- terrible mess and unemployment peaked at ten point 4% band.
Not 10% the way it did for mr.
Obama you know at this point mister -- -- wrong.
Reagan had the economy growing at 6%.
Where is mr.
Obama has a growing at 2% he had gotten unemployment down -- 7%.
Obama has it about 8% simply misguided to have an area bigger mess when he does his alibi better than anybody ever -- -- why is out Mitt Romney not ahead in every single poll and not ahead significantly.
If in fact things are as bad as you say Peter and -- there's some economists are saying and Romney isn't certainly turning this into some big.
That path to victory at least not so far.
Well -- two factors one is that he has not done a good job of explaining how do you.
Would create jobs are running around the country say tax cuts and deregulation reminds folks too much of George Bush.
And the other is he keeps committing these gaps I mean we -- we we may take -- comments about the Olympics in context -- in that context that that they did just fine however.
In the press takes them out of context there isn't that the only mistake he's made the guys simply got to do a better job campaigning and it's.
Why do you think got Simon by the next quarter.
We'll see a greater growth you think there's any signs on the horizon that indicate that things are getting better and significantly -- Yeah I think two things one -- I think the projections for the third quarter has GDP up over 2%.
Which means that the president will be be able to say in that final month of the election the economy is getting better he's not gonna say it's great he's never said that -- that he can say -- it's getting better.
And the second thing is that -- one agree with Peter for second which is Mitt Romney's struggle with making sense of things I mean if you look at what he's saying now.
But how he wants to create growth he's saying we've got to get rid of this debt.
You know we've got -- -- the private sector and -- his own plan for the economy increases the deficit by two trillion dollars.
Look at the three things that he's promoting right now tax cuts defense increases rolling back obamacare.
All of those -- -- a hole in the deficit much bigger than what President Obama.
Has proposed so he's not making any sense right now which is one there is I don't think he's connecting the American people on the basic economic power station -- so I think over the selection.
I think that that 35%.
Approval rating that Barack Obama is getting from the business community.
Is quite telling.
I mean you can't spend that number I mean -- five points here six points there.
Something I think something is not clicking there what Obama and the premarket.