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-- -- -- wanted were starting to see those signs pop up again the private sector creating more than 200000.
Jobs last month.
Meanwhile Uncle Sam is handing out pink slips it's a trend we've been seeing lately so our private jobs going up because government jobs are going down.
Hi everyone I'm Brenda but -- -- his Bulls and Bears let's get Iraq should shambles and there's this week Gary B -- Jonas Max Ferris John -- -- all along with -- camp and Sasha burns welcome to everybody -- -- -- Private sector hiring because the federal government is finally cutting.
Well -- brand that governments pending -- runaway train that everybody knows knew what's threatening the economy and threatening our economic recovery.
So I have to do -- -- start talking about a little bit.
Maybe slow down the pace of that runaway train and the private -- is going to respond to that.
The private space sector like that there were at least talking about it again that you government cuts is a good thing.
The government would lead us to believe.
That they take one of our dollars and run it through other channels and make videos where they didn't have expensive -- says they give it back to -- and it's gonna have a multiplier effect.
That's not the -- the real -- world works.
That keep the dollar the private sector to begin with and you're -- are better their body knows that.
Such hit kind of it's -- it's known as the crowding out which is that government that spends money and it kind of push isn't crowds out private sector spending and hiring -- I don't.
Now -- -- The job growth is in -- at this Questar -- related drag it's not because of that and what the numbers are about is there's been a continued trend of growth.
The numbers we have right now -- April and -- the numbers were increased from what we thought they -- -- And they're the highest they've been since April -- so it's not about the sequester it's been a study study -- Okay Gary B and we have seen job growth of about 200000.
Jobs created a month for the last few months what do you say about that what what is causing that is that because the government does this -- Well I yes I do think it's a contributing factor -- there have been in in a response that was Sasha was saying there been quite a few studies showing that.
Government spending and increase government spending does crowd out.
Private spending it -- you know first of all more taxes have to go to fund the government in the government is in there in their doing jobs that private.
Industry could do so that's that's a fact for one.
Number -- is as the government.
You know the private sector comes in and is it enabled to grow look I think people are optimistic that the -- that the public sector.
Is shrinking because as Jim pointed out every dollar they spend it there's no multiplier impact a lot of studies Christine -- I believe found that for every dollar spent to get 95 cents back then to GDP so.
I think this is all good thing I think there is some cause and effect there -- just happy that that.
Public sector -- shrinking at this.
And that was you were referring to the former economic advisor exactly thank you mama okay.
Just do you see a connection between private sector hiring and govern the government to handing out pink slips.
Look the connection is that if we were in a really strong economy with really low unemployment not unemployment above 7% and yet you can make the case that the government is sucking up labor that the private sector desperately wants -- you really can't make that case today it's not like.
Did they need to fire people so the private sector can find workers does not us it's not that tight out there the economy's not that good.
Now there are cases where it's like they're denying these are probably like that so I wouldn't play -- too far in this economy I will say the economy is strong enough to let the government shrink which it's been doing for years not you don't like government this is a good news in that sense.
Because normally this would cause a recession is -- the government is state federal local.
Kept firing people on my that we can handle that now because there's.
I -- in the private sector -- you buy that.
I Bible a book first part what jones' side and that that -- is really not a correlation between government crowding out.
Look we're not reining in government spending guys we live from -- and forty cents remembered all the -- what.
38 cents of every dollar and they were -- -- track -- -- this is using the jobs number this was a very good jobs number were still two and a half million jobs underneath what we were at the peak of November in 2007.
But the government has nothing to do it at all with -- all in west Texas the -- -- city in America Midland Texas.
All the way to North Dakota the government has nothing to do with natural gas being at -- -- -- manufacturing now is more economically feasible the United States -- it is.
Elsewhere the government has absolutely nothing to do that the best thing that happens the government.
These guys hate each other so bad up there at that they get nothing done and when enough people don't get anything done that's good that's the gridlock argument -- Yes absolutely okay -- Me -- they did.
I -- I think they're they're not now the issue is not that they're hiring workers away from the private sector.
That's not the issue the issue is that the resources that normally should be -- productive in the private sector.
Our our Ben missed placed and -- to non productive sectors in the government.
And -- the bigger government growth the bigger worry allocating our resources to non productive parts of the economy it's not an issue of them stealing workers from the private sector.
It's -- issue of productivity.
And -- stealing resources.
Okay -- was speaking to you you.
Well for another good mostly just moving money around so to say that it doesn't have the multiplier of other spending or that -- -- -- resources out of like apple could do it by giving Social Security -- I don't know I don't see how it's it's that big of a drag on the economy when the government -- -- money in a lot I think it's been through the private sector who hires people as well so it's it's a little less obvious than this correlation as far as the the feel the government's biggest consumer of fuel so they are helping the oil business and opt for the other curious though there was -- and as far as the government's job.
The -- Will -- not just moving money Iran a look at how much money -- -- with Fannie Mae and Freddie Mac an Amtrak and the post office.
Anyway look Obama might have been angry at at Watford captain.
Scott productive use of above all the private sector loans in the sub primary that was all bad news the capitol to resign the governor isn't a monopoly on values of capital that happens they just both public and private sector up and I have -- -- -- -- ever a -- yeah.
I want to go back to something that John said he said the government's not you know Agassi that the cause are responsible for that.
The increase but what the government can do unfortunately is slowed things down.
So you know you look at a lot of departments whether it's the EPA our Homeland Security event are the IRS would just.
You know -- workers on furlough they -- this kind of I attack.
Acts on the -- productive part of the economy just because of their.
Rules and regulations so that -- they do the lets people they have implementing these.
Confounding rules and regulations.
The last the better the private sector can work so.
I think that you know again you see -- shrinking of the public sector you're gonna see the private sector really take off Sasha.
What do you say about that say at the end of the day so me and hire a new worker because of what the government is doing and -- to this question there are gonna worker because.
The profit margin that they're gonna get out of it is worth more than the cost of the new -- so it.
It's not about the government's about the housing market doing better it's about consumer confidence up it's -- So you think that that government can throw to any kind of level -- a long slow down the economy.
But -- that said.
That's a totally different argument we're talking about our tag about whether the government we're talking about god loves all right now we're talking about the flip side though as government constraints.
Will the private sector -- I make the argument that it does.
And I'll make the argument that at this point the numbers we've seen from the shrinking and -- sequestered so now all they've done anything -- -- -- John when he sank.
I say that laying all but cops.
And teachers in Detroit has nothing to do with the Bakken shale formation in south and North Dakota and that's what's driving the -- right now.
Gary -- is 100% correct in the fact.
That it -- -- government can hinder things look at the bottom ratio was drilled in California that wipes out -- California deficit if we have a national energy plan we can create millions of jobs by knowing if a pipeline works for the pipeline doesn't we don't know that we don't have what were the only -- out into the world not -- what that does hurt OK can't take him on.
Well like I may know we've got a lot of part time workers in this jobs report today why is that.
Because of government mandates that were relating -- obamacare.
There's a lot of government intrusion in this economy and you can say whether it's grading out or just red tape or regulations.
The problem is they are not creating a good playing field for small businesses and that's -- small businesses are not hiring.
Okay two Texans get the last word thank that and -- yeah.
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