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Today Molly thanks so much the latest jobs report shows.
That only 88000.
Jobs were added in March according to the Bureau of Labor Statistics the unemployment rate dropped to its lowest rate in four years but only because.
People stop looking for work CEO and editor in chief of Forbes media Steve Forbes joins me now.
With his take on what all of this means for the economy Steve good to see if things were looking good here.
The stock market was soaring to look like that the housing market was even beginning to recover we thought maybe this economic recovery was finally taking off and then this.
I think what happened is that the tax increases that were inactive in January and now finally starting to slow this economy down.
You also have the continuing drag of the uncertainty about the mammoth regulations.
Coming with Obama care.
People don't know what the cost of their labors going to be when they hire somebody.
And what's hurting too is that every small business now knows if they reach that fifty threshold.
A fifty employees.
They're gonna have enormous increases in terms of the hiring people.
So they're now ramping down instead of expanding in this country you don't want to reach a threshold we're gonna hit with a lot of new cost she put all that together no surprise this thing is starting to slow again.
Now the White House is saying this is a self inflicted wound here pointing -- not to the payroll tax inquiries.
There was part of that fiscal cliff deal back at the beginning of January but pointing to the sequester.
Are they right to point to the sequester in terms of what happened with the jobs.
Absolutely not the sequester is barely kicked in at all and only affect the start an impact on March 1 and it's gonna be months before has a real impact.
-- employment only went down 2200 well on the state level state workers -- up 7000.
So you can't blame the sequester what you can blame are those tax increases especially hurting capital creation.
And the enormous regulations continue to come out by the thousands on Obama care and no small business can cope with those.
Talk to us about the unemployment level here went down to seven point 6% which on the face would look good I remember during the election campaign.
There was a reduction in the unemployment rate the job numbers were sort of middle and a lot was made of of the reduction but that this is going down.
For all the wrong reasons and it.
That's right you mentioned earlier that the labor force participation rates now the lowest since march of 1979.
Moreover are part of that jobs report is very disturbing and -- -- the number of jobs created by small businesses.
According -- household survey.
Was only about one point two million in the last year.
At this point after four years recovery to have that kind of -- job creation what's supposed to be the sweet spot of the economy.
That a small businesses which create most of the new jobs to have that a level of new job creation.
Is very very disappointing and does not harbor well for future job creation.
So we had some pretty robust job growth in the first couple of months of of this year and now we see this report is is this a a one month blip.
As the payroll tax and and these new changes from obamacare or observe our our absorbed or could this be the started a longer track.
Well what it is yes this was a particularly bad month.
But even if you look over the last three or four years we've created if we had any kind of job creation that we've had in previous recoveries.
We have about -- over four million new jobs today.
And instead that we have that declining labor force participation so that's about a 100000 jobs absent each month that we normally have and normal recovery.
So even though this month was particularly bad couple previous months were up okay.
The long term 34 year trend very very disappointing.
Now there's a new offer coming from the president later this week in his long awaited budget which will cut entitlement is type entitlements.
In exchange for -- -- revenue raisers do you see that the is their chance first of all -- that would pass and secondly could that at a little bit of and it is a little bit more certainty.
In terms of what the corporations across this country are looking yet causing them to perhaps start to hire more people.
No not at all the -- cuts in the on the out -- Part of -- a Social Security.
-- fooling around with the cost of living index you could make a case that's already lower than it should be if you go to grocery stores of the fuel pump.
The idea that we have no inflation is preposterous.
And I think the president just throwing out there make the Republicans look like they're the bad guys.
And a putting in new tax increases mean my goodness the president got a -- with -- major tax increases on the so called wealthy in January.
Now is coming back again what does that tell capital creators in this country.
There may be more down the road which just increases uncertainty.
So this budget as a non starter from a host of reasons both in terms of dealing with entitlements and in creating confidence Steve Forbes this after this Steve good to -- to thanks so much for your always John thank Garrett take care.
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