The Beginning of a Job Boom?
Michael Mandel explains the US economic recovery
- Duration 8:09
- Date Apr 3, 2012
Michael Mandel explains the US economic recovery
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DC -- now.
Michael Mandell chief economic strategist for the Progressive Policy Institute with -- Michael -- -- -- -- us.
Good afternoon Trace it so I just read up as budget economic data and it.
Like some good some bad some beat some doesn't -- Markets down 52 points right now I feel like the market is -- at this point thrown its hands up to -- I don't know where to know.
Well I think what's happening economy right now is pretty clear.
The US this is slowly having a recovery.
The job market is recovering orders are recovering domestic manufacturing is slowly recovering.
It's not I'll rip roaring recovery but it's there and it's real and it's coming at a very propitious moment frankly for president -- Obama agreed at the same time now many are saying it's a slow -- -- -- seen in history.
So it's not all that charged by any stretch -- no.
Now is that the -- but what did you think that people react to change of direction a case it would have been one thing if people felt that was sluggishness and no growth but what happens is that when you start to see growth.
Even if it's kind of slow the what happened and you know it changes Peter changes people's mood it's.
That there is no doubt they think that could still happen to sort of to put the -- -- on this recovery.
But it but it's there and it's real.
You know we have big jobs number on Friday that's really what I think -- -- in here are we creating jobs in this country.
What's your thought what's gonna happen Friday morning.
I think we're creating jobs I think what's happening is there were being to have the beginnings of a communications.
Driven boom and -- economy -- -- -- that's driven by.
By wireless by apps by social media it's something that we've never seen before so yes it's good that they and it's good that that their car manufacturers are coming back.
It's good that manufacturers coming back but at at the heart of this recovery is is -- -- and all the the new stuff that's being that's being created at this point at this will be very different sort of recovery we won't we don't necessarily have the right indicators from Everett.
You know it's funny because President Obama would like to take credit for this recovery but based on what you're saying we -- credits Steve Jobs.
With this country can't basically the phone and -- -- fat and all of the -- the underground economy that was created because of those products is basically what you say is turn this country around.
That's exactly right what's happening is that innovation coming out of the tech sector the -- sector.
All of them all of these all of these industries -- really they -- they kept powering even through the downturn there and they're growing even more strongly now.
Is there's a sign that innovation is lifting of the US economy which is really -- which is the best news possible.
According to recent article.
-- 218 US we'll meet as many as 490000.
Workers with deep analytical skills one point five million.
Data savvy managers are -- are we prepared for that.
No we're not and that's good news okay because really what has to -- we have to train.
A new generation of workers and people coming out of school.
To know statistics are known to have to be normal -- to be to be.
To be data literate it's it's a whole new set of skills and it's really it's if you go back to the beginning of the autos you know what people had to learn how to sort of do make it to be -- to -- mechanics sensitive to the had to learn how to pump get to have -- learn how to put cars.
Taking apart -- back together again this is very much the same sort of thing is so.
Right now there's there's opportunities for people to get into new areas that are creating jobs.
And that are -- -- accessible to almost everyone and it's not just it's not just rooted in the closest it's across the whole country.
Yet we are still -- technology companies -- people -- -- IBM had layoffs recently you know we heard from Intel's so.
They're not that that layoffs aren't done.
Now we could -- you're talking about as you're talking about companies that have one foot in the old tech economy.
And one fight in the -- -- -- so what's the you know the thing is that do you think there is it.
And not everything moves of the -- it's -- what we're talking about I was very clear about this a communications.
It was that it was in the -- alrighty hardware driven boom -- is really very different.
It's funny because I mean I guess it hearkens back to be dot com error rate -- sort of got us out then.
And yet that's right you know and what if you remember you probably don't that that that senator Bob Dole in 1995 and 1996.
Was running against Bill Clinton on the basis of a weak economy a weak economy in 1995 -- what happened is the weak economy evaporated.
-- to a strong economy -- put put Clinton into a much stronger position than they would have been.
I do remember that I was a financial journalists and back then covering all that M I also remember is Bill Clinton walked away with the award for picks in the economy -- at the end -- today.
I'm not entirely sure then he could take that -- credit.
About you know what do you know what else issue he walked away with the election where nobody -- got all that though that's only need it.
Consider -- -- right and that's again we might have history repeating itself right.
It it has a funny sort of feel to it because I remember 95 that that the economy felt really sluggish through talk about a jobless recovery.
And and and then the jobless recovery vanished and -- -- to packed full of jobs.
And it happened just empire for Clinton -- it's happening a little bit later for Obama but it may be just in time to save him.
Couple things President Obama has going against him though are.
The housing market.
-- I think inflation at some point and gas prices.
-- crisis that really could deter this up potential economic turnaround.
Gas prices guess prices are tough I kind of think that people of discounted housing at this point is very important but.
But I don't think that it's become a big -- in terms of who wins or loses this election gas prices could be imported -- you know at the end of the day you mentioned jobs.
Jobs -- the essential.
And if -- are being created.
I was so looking at a report of this word has said that the job market for young college grads is improving -- -- -- very glad to hear that my sons graduated from college here I want him to find a job other to make a report back from the job front.
-- the awesome actually because you know and just to change -- -- dig a little bit we hear that student loan debt is hitting a trillion dollars that that actually.
Nearly nine out of ten student loans backed by the government or guaranteed by the government so that again another -- turn to the recover.
-- you know you've you put your finger incredibly important point because.
You -- young college grads have took it on the chin not just over the last couple years but almost ten years has been -- since 2000 has been terrible to be a young college grad wages have been falling and has been as been -- -- employer rates.
If we see and then the and then -- to the -- have been rising but if we see that turn around.
If we -- that could be incredibly significant elegance and of that to be one of the most significant effects.
It advent of 2012 of the young college -- employer market turned around this year.
I -- but don't you think it then the student loan market has to be fixed any.
The easier -- -- -- coming -- -- inheriting debt are first time homebuyers are not buying homes their lives that their parents so.
That's right I can tell you if I -- tell you my -- not coming home with me.
I thought I thought I know this is a few -- it all three of them -- -- -- grammar even now I will probably regret that some point.
But I did think these kids ever -- are coming out of school and -- and I graduate finished grad school I couldn't wait to get my own place do my own thing these kids are not feel that way.
That I feel that way they're feeling they're feeling they're feeling downcast so so I think if -- if you -- -- -- young Democrats I think you've learned something.
Very important about the economy I consider them to be.
Canaries in the coal miners are worth they're not doing well nobody's gonna be doing well if they're doing well it's a sign that the that the economist about the -- turnaround.
Recovering and and that would be just great news for everybody.
Yeah I agree with you my god help -- come back and talk to is more because this is a great conversation.
I don't know why I love talking futures up and I'll -- back again -- Michael -- chief economic strategist Progressive Policy Institute bomb on Twitter -- Michael -- doubt you have a great day.
Thanks -- it's good stuff.