Analysts Raise New Fears on Health of Economy
Inflation, jobs numbers, national debt increase concerns for economic struggles
- Duration 7:04
- Date Jun 2, 2011
Inflation, jobs numbers, national debt increase concerns for economic struggles
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-- Little levity of an hour back to serious stuff here we have some very big concerns over the health of the US economy.
A recent pattern of poor economic data at the end of fuel speculation that our economic recovery which we thought was getting some momentum.
May now be losing that momentum and that is as scary prospect it could start to possibly go in reverse.
Let's take a look at where we are today the April unemployment rate.
Not a good number that does not tell us the whole story right now.
We're waiting for new unemployment numbers as well the number for April which is considered the most accurate measure.
Is -- shocking fifteen point 9% this is the overall unemployment rate including those who have stopped working.
Or are unable to find full time working decided that they're gonna just ditch the whole effort 16%.
As an unbelievable number and the number of long term unemployed people jobless for 27 weeks in over stands at five point eight million.
Americans so what can be done.
Let's bring in our panel Dickerson as president I've got ghost writers and a democratic strategist.
Fox Business Network Cheryl Casone is here as well and Steve Forbes chairman and editor in chief of forced me welcome Todd good to have you here.
It is troubling and -- and so many levels because you just have people you know are in a very very tough position.
They're home is worth less they may be out of a job they're facing you know increasing bills inflation all of this in this potion.
That makes it really scary and you get that feeling Steve that that -- racquet out of it and -- times.
Now when it's true there are weather related things -- have held things -- -- the second half full look better in the first half.
About that's like a car gone from thirty miles an hour to say 38 -- forty when we should be -- seventy to stage a recovery there real headwinds out there the weak dollar.
Massive new regulations coming in from health care in the from the so called financial reform bill the spending -- still continues.
Unabated and uncertainty about.
Axis masses because that there's been talk of depression doubled debt.
Do you think that's where we're headed now.
At what we have is equivalent of a bad flu.
I'm not enough room.
Make you have pneumonia -- in the hospital but certainly sluggish and slowing you down.
We're going at a very sub par pace how -- stay in this kind of environments -- -- until we get those fundamental headwinds change stabilize the dollar that shouldn't be hard Bill Clinton did it why can't this guy.
Why can't this guy -- I have a slightly different perspective and Steve which is this -- but I think I do think we're in serious trouble.
In large part because.
The federal government has certain -- -- can hold influencing economies can spend it couldn't.
Cut taxes it could ease interest rates.
We've done all of that.
Exactly and we're still -- and where we particularly 600 billion dollars the Fed has pumped into the economy a trillion dollars in stimulus -- the economy does he knew we were particularly vulnerable to external forces like you know.
Why are we stood having dipped a little bit to get now -- attributing it to that a tsunami in Japan that are contributed to bad weather like Steve pointed out.
-- -- in trillion dollars in debt.
You know I mean absurd struck by -- -- you know when you look at -- it is to not only is it app awful awful natural occurrence but it doesn't change that fact.
That we barely manufacture anything here anymore we have fourteen trillion dollars in debt is difficult to -- in the way we're looking at the world right now in our country right now.
Where the newness wears the engine.
-- -- have to be job growth I mean we're gonna have to get jobs back to fix all of these other problems a particular.
Housing and Steve says maybe not a double dip recession for the economy how about a double dip recession and housing we have that's one terabyte well there's a mortgages underwater this country -- at.
When in force to -- well this gets to the so called cure -- -- never -- an economic recession.
Money printing has never done -- we should've -- that from the 1970s.
It's like doctor as the -- bleeding on the wonder why the patient is sluggish and not getting better.
Let's go what Ronald Reagan did it sound money low tax rates deregulation instead of massive new regulation this economy take off.
Like a -- if President Obama is -- you know obviously that's not his philosophy hasn't been his philosophy and how to turn things Iraq.
But I do wonder you know his presidency is you know just two years past now he's looking it -- possible reelection do you think at this point.
He sits an Oval Office and says to the south.
-- -- had a try the other way.
No it but I to Steve's point.
The Reagan is a pretty good parallel enough to look back to for politics.
Because what Reagan said was.
We're not out of the woods yet but we gotta stick with yes it's gonna work and -- -- confidence the American people that's the fundamental challenge for Barack Obama heading into this next election.
He's got to convince the middle.
That what he's doing is working if we give it time and that's make a change.
And go back to the policies the bush.
Wolf is no recipe for economic growth -- time work if we continue with these policies.
There are some things that he could do right now they refuses to do lower the corporate tax rate we have a lot ironically yeah.
It's -- I read it we have the highest effective corporate tax rate in the world and -- -- -- -- answers about lowering the corporate -- avid die hard Democrat -- -- way to work this morning that you know went on and on about how so many corporations don't pay taxes in this country.
You know there are a lot of little pulls out that out there but you know and that's -- global -- -- talking about is to flatten.
That's the top rate.
And then close a lot of loopholes we don't have a net loss of revenue again there's bipartisan support companies incentives to hire in this country instead of continuing to hire -- manufactured goods.
Outside of this country mopping -- -- yourself we don't make anything anymore look at the manufacturing data we got this week abysmal one idiots -- to that still aren't actually create jobs and it's about that's become a baffling question.
And one of the Obama administration's main ways to say that they wanna do that is to create green jobs green energy -- is actually get us anywhere Steve.
The government cannot create jobs what it can do is create an environment or watch -- -- business -- expanding businesses create jobs that's a lesson of Reagan and bush can get -- all right either either on the spending side or cheapening the dollar this administration but the dollars she -- on steroids so let's go back to what Reagan did.
Reagan stuff worked.
It's worked in American history.
Yeah can be I would I don't -- companies -- that -- from -- pockets and that makes someone that makes it that makes marginal difference and Bill Clinton did some of that but what Bill Clinton did.
Was at -- productivity economy than the federal government had a focus on increasing productivity.
That's when things that government can do it can six expand investments in human capital sort of a better educated better skilled workforce.
We can in invest in science we can invest in -- -- structure that will.
At the productivity that's what we shouldn't mourn the stimulus that will be I think -- Obama administration's.
The fact is their biggest mistake is that they didn't.
-- -- investments democratic congress to create that's right packet which had a ton apartment that didn't do anything is very scary you'll find out more tonight.
Human capital education we know a lot of the public schools don't work.
So allow parents to have choice and senate keep in schools that's on work smart -- -- -- get enough support from thankful that ain't thanks so much guys great conversation good thank you here thank you.