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Harvard University Professor Martin Feldstein on what is needed to boost U.S. job growth.
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Tonight we continue with legendary Harvard economist professor Martin Feldstein.
Talking jobs the unemployment rate at eight point 3%.
Some twenty to 25 million people unemployed and underemployed or given -- being employed.
This is the professor's view on what it's going to take to get those folks back to work.
Indicate stronger growth of demand.
As simple as that it's gonna take more firms wanting to invest.
More firms wanting to produce.
And that'll give us more jobs.
But we're not seeing it now.
And why is that I mean we hear that I agree political argument that -- that the federal government is sucking up too much.
Of the economy.
That the private economy itself is not being resilient it is not being driven.
Isn't being innovative is that and it normally is in in recovery.
What what is the problem.
Well one problem is that there's a -- him.
A worry on the part of the business community about what the government is going to do next what kinds of regulations what kinds of taxes.
Are going to be imposed.
I think that some major drag on the economy if you ask what's gonna hold us back and 2012.
We're going to be held back by the fact that our exports are not gonna do that well.
We've Europe being slow wins.
China slowing down the market for American goods is not gonna be so so strong.
So.
And the American consumer.
Really stretched.
Last year reducing savings rates -- are in order to spend more.
And that can continue so where's the demand gonna come from if it doesn't start live incentivizing businesses.
The consumer 70%.
Is always and -- dramatically that the consumers make up 70% of the economy.
Is that likely to be the case in the years going forward because we have is an economy people don't like to talk about that but we have we have been depended upon population growth for economic growth.
Resource.
Consumption -- -- You know enlarging year after year.
Is it possible that we're at a point at which that is no longer going to be the -- I don't.
Think that's a problem I think our population continues to grow that distinguishes us from Japan are from Europe.
So I think we will continue to have population growth eventually that will lead to more demand for for housing and other things.
Energy in the US has turned the corner there are some bright spots because in the new technology and then new discoveries of of our resources that we can now path.
So how does it feel to be able to save the United States has the largest energy reserves and all the world it's pretty nice movement it is very nice and then -- here.
S suddenly had a very large hammer come down that me.
-- this administration saying but we're not going to exploit and produce those people who are beginning to -- -- regardless of what.
In many states around the country and those -- the states where employment is now growing fastest.
So that's a double plus plus because it makes us less dependent on energy from the rest of the world but also because it's creating activity here at home.
Energy.
Automobiles and housing always have been drivers of this economy.
To what degree are they likely to be the automobile industry seems -- resurgence housing still at its nadir.
Housing is still in terrible shape.
The house prices.
Fell again across the country last month they fell a month before -- down in real terms by about 8%.
So we're really not seeing any substantial.
Reasons for people to wanna -- out and buy a home.
Well hopefully those reasons will be found soon.
Mark felt -- thank you very much for being.
