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Former BB&T CEO John Allison weighs in on the state of the economy and small business.
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April was another week month as we know for jobs and even more concerning more than 500000.
Half a million Americans dropping out of the workforce altogether just giving up joining us now John -- Former CEO of -- and C and a member of the job creators alliance and I guess the first question John -- Where all the jobs gonna come from you'll with the creators alliance where these new jobs gonna come from.
-- a very good question you know if you.
Look at the the recent numbers that they're this urging but more discouraging is where we are in this economic cycle.
We have five million less jobs and when that the recession started at this point in an economic cycle we'd normally have.
Two or three million jobs more than when the recession started so we're missing -- eight million jobs.
And unfortunately I believe it's almost always all the calls ago policy.
We've had -- -- -- interference in markets from incentives to clunkers and -- read history is redirected to effort.
Of CEOs and businesses the United States still has -- number of very globally competitive business and almost all of those businesses are under attack beginning for example with financial services where we have traditionally been a world leader.
And where Dodd-Frank is really paralyze the industry.
Now -- -- businesses -- engine of our economy yet we heard recently from them at their confidence is down we saw recently that they're not hiring.
Nothing's happened in their world and and they seem to be just stagnant right now.
You -- -- been a lot of time talking to small business.
Leaders for gulls beating he -- -- small business banking and there's there's two phenomenon going on first to credit environment is still not good for small businesses primarily because of the regulatory attack.
On the banking system particularly own community backs.
And then secondly small business leaders are really worried about the overall context of our our government.
They know running massive deficits they don't see how we're gonna fix those problems they know -- just taxing rich people is not gonna fix the problems so I don't see a -- -- to make note though that the overall financial well being of US US itself better and therefore they're just that even ones that are doing okay are very afraid I had been.
Well with that uncertainty John in the market selling off today down 173 now on the Dow looking forward how do you play this is an investor.
I think is an investor you have to be very cautious and and the market's been pretty optimistic.
And we still have Europe and we still have.
The probably.
A slowing job growth picture in the US economy so I think caution is that is the right word.
You know as a member of the jobs creators alliance you you are with some really is in big people John -- from whole foods -- markets from Monday -- Big corporate America people what is it that the jobs creator alliance want to see come out of this administration.
Number one is that in the regulatory attack on business.
There's an assumption under the Obama administration that the calls of the financial crisis was deregulation.
And and therefore we need more regulation in fact the -- of the financial -- was government policy to create a bubble in the housing market.
Through their affordable housing programs not the regulation but there's a regulatory attack on all businesses.
What that does it takes people's energy away create -- fear.
It it it makes businesses less productive.
Secondly they -- apply in a financial -- the United States they look you know they think about in business terms and here's a country run one point.
Three trillion dollar operating deficits they look at the president's.
Budget and they know it's not really a budget is a real -- -- what -- and they they wanna see a real -- and and and that that looks like cut expenses that's what you do in business it looks -- -- -- growth by reducing regulation right it looks like some kind of rational tax strategy because I know that.
Even they don't wanna be taxed but is beyond that they know you're just taxing rich people will not fix -- all right they -- some real leadership.
That's it or let uncertainty not -- -- old John Allison of the jobs creator -- John thank you so much for joining us.
I never.
