Fox Business
Expand
Browse All Video
Watch Live

You're watching...

How is China Impacting U.S. Job Market?

Details

  • Description

    Professor Peter Morici discusses China’s economy and the current state of job creation.

  • Duration 3:29
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

University of Maryland economist ahead of of course the jobs number and a couple of hours Peter but before we talk about that in detail.

The markets are ugly now this morning we just -- it Germany's getting killed if you look at the European.

Markets and the -- been badly here in the US for example started we have manufacturing -- the PMI in Chicago rough.

We had to China overnight rough with the UK.

-- the worst number since 09 that they had so no matter where you look globally now.

What what do you make of those numbers on large -- manufacturing that are telling -- and what are they telling.

Us -- global economy is at high risk a lot of the basic structural problems that caused the Great Recession have not been resolved.

You know we know about banking in New York JPMorgan illustrating that but also China operating on this notion that has had huge trade surpluses.

Why things that wasn't touched on in the China segment.

Was that China is now depreciating its currency more in -- than any other month.

Right in an effort to gain global competitiveness well that essentially targets US and German high technology goods they can't send us any more coffee makers.

That's the last thing the Germans need to need to -- right now.

And it means what then for the job what's zero -- on the US and in McIntyre about global jobs but you know people watching probably.

Artists concerned about -- -- German employment as they are about their own here in the United States we're gonna get that number almost exactly two hours.

From now.

Tell me something that that I don't know that I should be looking for that number later today.

Well that they're real question is does that number come in lower than we expect you know in the first quarter we were creating about 225.

To 230000 jobs a month.

Now in this quarter looks like less than 150 a month.

You know that's the number -- -- eighty or 90000 and that's the case.

Then the economy slowing even more than the GDP mountain data that we just saw.

A more likely gonna -- pullbacks in areas like Telecom and finance which got bloated during the during the boom and -- need to be trimmed back.

But the real question what we're we're really should be looking at -- things like host cell trait.

And retail trade as that'll tell us about for traffic in the stores and how those folks see things playing out in June.

And if it is below expectations then you start to have that drumbeat of of calls on governments to have come -- again whether it's print money whatever it is some sort of you know essentially a bailout we've talked about it in Spain already with their banking system earlier we mentioned it did.

In China where there's more calls for the government to this try to do something about their economy and I'm sure -- the US right for the Federal Reserve what options are laughter what do you think will happen.

What we could have more stimulus -- stimulus only provide you would a period of grace to undertake.

Fundamental structural reforms in the United States those were greatly botched.

The bank reforms have consolidated deposits in the hands of the New York banks who don't make loans to small and medium size businesses in the midwest.

We don't need to further regulate JPMorgan and had a 110 regulators embedded in JPMorgan at the time of these trades and most of Dodd-Frank.

Is in effect don't listens to the White House rhetoric.

Rather we need to break up these large banks so that smaller banks will be making loans in smaller cities.

Also trade policy with regard to China.

Two years ago missed the president said to the president of China if you don't move on the currency I have options they called -- swap he hasn't used any of them.

If we don't fix China and the banks America's not gonna have jobs.

-- China and the banks -- -- thank you Peter Greece is gonna see is always out of Washington today University of Maryland.

Economists say now.

Load More