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The Jordan Company Chairman John Jay Jordan on the outlook for the U.S. job market.
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When he's not coming out now.
Meantime 200000 that is the number they're looking -- the number of jobs added to the economy last month that if they get it.
It would confirm a trend that's actually been going on for a while -- more jobs.
But to hear my next guest talent not nearly enough jobs.
And more this state of a recovery not even close to the number of jobs already lost.
And again -- -- so is right I respect him for a long time I would take note.
Maybe never coming back to Jordan on -- the recovery.
Is a real piece of work.
That is a little bit of a bomber that those jobs might never come back.
Well I think you're right you know one of the things and I'm concerned about our economy when I -- in this business in the early seventies.
Structural full employment which is 4% on.
You have those who were unemployed the one -- worked -- a judge and those didn't want to work.
Today we may be in a different world -- structural full employment is 7% six -- 7% on do you really think so.
I'm concerned about it because I've seen a lot of jobs would have gotten out of the system that are not coming back.
And we look at our own companies and we've had.
We went through the cycle obviously we downsize downsize meeting.
Real numbers of jobs.
Our output per man hours gone up dramatically so productivity gains have.
Pushed us in the direction hey we want to give that back too soon we can.
We wanna keep that up productivity so some of the jobs that we have.
And gotten it over aren't gonna come back into our business -- -- -- now.
The administration -- taking a hard line on this very issue -- you know saying well.
The reason why that's happening is because we're literally giving tax breaks to companies to hire abroad and and chase those jobs overseas.
So.
We're not -- you know.
-- -- -- -- -- I don't know -- necessarily agree with that -- mean there's there's ways that the government can get that repatriate that cash.
There's.
Trillion dollars on corporate balance sheets but holding -- do say.
We want to action bring -- back and guess what corporate America will be -- it's always a string attached and one of the strings that is.
Mixing metaphors are but one of them is -- -- -- -- the higher you're -- to hire workers and money.
-- -- I I think restriction should be made you can't repurchase stock of that money or pay dividends.
So what's the natural conclusion is investment investment will automatically.
Increase output and it in order to increase -- -- people don't think administer this administration would dot I don't think they'll do it either but I think that's.
That was a solution that I had you know two years ago coming out of this -- but you may -- AdSense for that would normally.
-- the only country.
That penalizes to the extent.
We do.
Companies that want to expand in China bush and the and apparently kicked him out conquer the world I mean this is due to.
To my knowledge yes -- -- yes and one of the things that I've been asked often is about the regulatory environment here and it's really unstable and you don't have a stable regulatory environment to -- and invest capital but.
One of the things that's sort of Bellwether recently is what the government has done not a -- an intact -- are number one exporter.
-- -- one of the great companies in the world.
And one of our top employers.
Telling Boeing.
Well we're gonna tell you where you can build the plant who you have to hire and how many people -- -- and what you have to pay now.
This is folks like myself watch this they say hey if they can do that -- they can do to us.
So why would we invest money in the US and get under attack we don't have the -- started investing abroad.
We -- abroad but I'm saying this is the Smart people -- and the president and it's for them not on how we also have historically -- a lot of investments here grown jobs here but I'm saying.
With but that's changing the domino effect of what.
The -- situation.
As indicated is that -- We're very afraid to invest now let's go to China really operate every wanna stinking like Europe.
Exactly and many of morrow talked another what happens every what happens so people.
Business people.
And implement do not invest in America -- invest overseas where the welcome where it's not a great recovery.
It's not a great recovery what do you see happening here well.
Number one.
There's still deleveraging process taking place and a debt driven that debt driven cycle takes longer recovery than normal business cycle -- We are starting to see and our businesses order rates are increasing vendor delivery schedules are expanding which means.
They're busy with other customers should be closer to -- -- will go to customers and -- -- -- Well just.
Nationally were at the steel suppliers to give her whatever we're buying inputs from US and the president has taken -- -- -- is -- look at this.
This is the wind at our back well.
It's not a friendly business environment in this country at this point and that's -- that you argued there's a limit of this recovery.
Well I think there is a limit and we're still very cautious were still very cautious is gonna take some time.
I think this the job growth thing is a very difficult number to figure out because you have -- numero uterine denominator effect two point six million jobs have been there are worst job seekers have gotten out of the job seeking business.
If you put them back into the mix.
-- that eight point 3% could be ten point 3% and we've all heard about the with the underemployed and the hello we'll hold you put all together you could be in the mid to the higher -- unemployment so I don't keep going back protected politics of the of our great financial brand in -- that beat.
Why the president's poll numbers so good or at least in the middle of all of this them that the Dicey recovery.
He beats in the latest survey in the swing states Mitt Romney snapshot though it is -- the snapshot right now looks very good for him.
I must tell you know about how many political person and now I just respond as a businessman.
-- -- -- -- I'd like to -- if that's okay.
Well a free market of course government -- we react government actually react so we're reacting and in the number -- I don't know.
I'm not the person ask about politics or numbers are popular here -- -- but you do have a we know this whole.
The class warfare business which it is very unhealthy.
That's obviously having an effect but to pit one constituency against another instead of hey let's solve the problem.
Let's bring yeah I think it's -- and I think we have to be Holden -- nation.
That that many at a record high percent of Americans get something from the government right you don't want Iraq that.
Well I thought I would rock that that they wouldn't put her pocket and you know it it it's too bad it'll change the whole dynamic -- we will move -- -- more European socialist.
Community.
-- there.
I'm not sure they're -- percent that we're we're heading that direction and look at some legislation -- -- -- the Dodd-Frank which to me is disasters and this doesn't really accomplish with access to accomplish.
Trulia.
Frightening.
To me.
-- hysteria that -- at the time or what -- -- busy guy John.
Mines on money out there what he's doing here I have no idea but anyway very good good very good -- you know.
