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Voters have spoken and now the market and CEOs are speaking even louder blue chips dropping over 400 points.
-- little companies announcing new layoffs since the election.
Forget that fiscal -- is this is -- job creators are worried about what's to come even with the deal.
Hi everyone I'm Brenda -- death is Bulls and Bears yeah Bulls and -- this week.
We've got Gary B Smith Tobin Smith Jonas Max Ferris along with Todd -- -- and -- and Fitch -- everybody okay Todd for more years of big government means four more years of job losses.
Absolutely Brenda and I'll tell you why look big government is not the answer we've went through this for the past four years we've seen government expand over an ever again.
And now you had the same composition -- congress as well as with the president in the White House nothing is going to change what does this mean.
We're looking at obamacare we look at it Dodd-Frank heavy regulation heavy overhead costs and companies will not go out.
And hire a -- -- and you great.
Well I mean I agree partially because -- I think we should be concerned about government growing out of control but.
Not so sure actually go with his facts -- government -- quite a lot.
During the bush years and we had pretty robust private employment expansion during those years campground and actually government has.
Well the government's actually come down significantly as a percentage GDP that Tax Policy Center took a look at this.
It popped up that 30% I certainly not is that the very beginning of the of the Obama term but it's actually come down since.
I think we're gonna see that drop a little.
In the next 34 years I don't think he's a raid that anti government guy don't get me wrong but I don't think he -- -- job government expander that that he's just been described as.
Okay well a lot of that the job cuts were actually at the state and local level and Jonas what do you think this means that for the the labor market.
Well I think actually for the labor markets if you define success is a low unemployment rate the government actually can deliver that in some cases and I don't I don't think it is a good measure success wouldn't come back in four years and they all now that unemployment 6%.
That big government really works well that is not a conclusion you should draw -- did you look at Japan they've been running some sort of fiscal stimulus for like twenty years now.
-- -- an unemployment rate under 5% but a terrible economy.
At a terrible stock market so you wanna natural unemployment rates low to -- going -- now with -- artificial constant perpetual government deficit spending.
And I get I think our government can lower it over a couple percent over the next four years that's not necessarily good policy for the country and economy and the stock market.
Well in theory that the question is does government does government dropped today grower is a private sector -- that's really where you get the true growth for for for the economy.
Knew exactly Grammy and a shared in the graphic this -- -- open up the segment that caterpillar.
For examples one of the companies laying off jobs you think caterpillar in this environment.
You know with things like sandy going on things -- before casting job growth -- be hiring people.
But instead they're laying off people -- -- you know yet a long list the companies on that.
And the reason is they see a sour economy why -- they see as our economy because government is growing -- -- fans.
Numbers you know he -- -- -- a government as a -- GDP right now about 24% study after -- is shown.
That his government takes over a bigger percentage of GDP which it surely will.
Because it's going to be growing faster than -- perceived or are forecast to GDP growth.
It crowds out private invested -- crowds out -- growth period.
In the economy's slower growth means fewer jobs that's why do you see that list that we had at the beginning that's why -- will grow longer.
As the the weeks.
Unfold okay -- the next four years bigger government what's it mean for the Adam went right.
Well Greta you know that -- bigger government met for more employment and California in France would have been tough but I don't have confidence in the world right I -- just -- that a lot of parts of the country the last three days speaking with small businesspeople.
And and you know my coverage of course you know drew millions but be really excited plus the blood that they couldn't.
To get you.
-- -- But it was via the lecture on how to keep your company below 49 employees ways to -- your company's Actuate so you could avoid Obama care.
And that I listen to the guide socket is never one conclusion was the tireless people and it reveals that you know what you're right.
You can't layer on another layer add another layer -- another layer to small business people on market talk that big guys.
And for the small business guys who say what that's my money I'll just have to -- people and I'll make up the difference of profit but by the people -- hard at work.
Wilson can't we did see a big sell -- in Wall Street they voted after the election and then we did see these layoffs from a wide variety of industries have you read that what does that mean hiring.
I you know I've just always been real suspicious of people try to read too much in the stock market I think he did have a couple bad days I think probably use a little conservative to -- there.
But but I think the layoffs by the way I -- I don't want to second guess employer's decisions and I think I think a lot of times.
Caterpillar included they may be making decisions to.
Two get more down with fewer people I think you know we're we're playing it's a bit dangerous to read too much into that as well.
But having said that I think -- -- is sort of silly not to pay attention to government and make sure that we.
In a government should be trying to spur hiring it should not just be out hiring for itself -- you know yes of course he's -- more teachers but I think.
There's there's such things too much I just don't believe though that Obama is the big government expander that he is sometimes.
Our visiting out of time I'm glad that's an if you look at 2008 -- actually had the US government was borrowing twenty cents on the dollar now the borrowing forty cents on the dollar just recover the -- and cost.
Because our government has expanded that much look they continue to expand typically it's 20% of GDP.
Gary -- right at 24 plus percent and growing it's taking over more of the GDP.
Therefore you get that the federal government -- everybody but let's be honest -- are you gonna pay everybody if you don't have the private sector taxi funding.
Their efforts are also allows those businesses looking at this expanded debt and as I say -- that we got -- -- -- you guys maybe in Washington double we ought to do math.
And and some it's going to be very hard and it's going to be higher taxes right but higher taxes is lower profit that's -- what.
I think you'd think caterpillar is making a call based on potential future policy I think you're short what they are saying is foreign governments and their demand is actually what's going on right now the rest of the -- -- much you're on America.
And it was because they were shrinking their -- a little too early into the recession they were going a little too quick and austerity.
And one other actors and -- -- what is California's America's greatest -- us not forget that is much bigger than all many many states combined well now with their recent tax increase maybe that will change but right now that is to drive and America and well technology industry press got a guy that big doesn't necessarily mean greatest that's very happy.
Well I know it does.
-- end and more Jonas is right we'll have a chance to see how.
Could -- a quote unquote.
California's economy grows but I wanna come back to one other point we seem to be settling into this thing in -- Jonas made the comment.
Government -- can create jobs government can not create jobs.
They've personal rights job is not the hire teachers that's the biggest con -- out there that's that.
The state and local governments job to hire teachers at the federal government sort of all -- Jonas was right where we're -- all millions and millions of net jobs.
Created from the stainless and so we saw instead we -- a zero turn that -- the government does not create jobs so that's silly.
A -- -- as quickly respond.
China has created a lot of jobs they're not good jobs it's -- planning -- and if you think government's K great job look at all the jobs they lost when the government shrunken state level across the country by house went out what they're just -- You don't know -- what -- -- right before it is crowding out good private that you don't would you can create jobs of the -- Japan I've talked to me that decades.
That dietary B yeah that's where you are.
I got Joan had two jobs if I give my mind to the government and the government.
You know admit makes up some job.
That's money I would've spent elsewhere in another employer would have -- someone's some talk -- net job to just move some money from one pot to another.
Creating should quote unquote jobs which are real okay that's going to be the last toward thanks.
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