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Economist Peter Morici and Economic Policy Institute’s Christian Dorsey debate what is needed to boost jobs.
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So much anticipation for the jobs report today is this how much disappointment now that the numbers -- and the already meager consensus estimate could even be hit so -- is going nine.
Let's bring in two experts on the subject my favorite economist Peter breezy.
And we -- -- -- Christian Dorsey from the Economic Policy Institute thanks to both of you for joining us.
Peter I don't know if you were able to hear Steve Forbes there.
Yeah but he you know he he feels like government is in the way and and that's sort of the problem of our economy right now what did you think what -- -- -- -- a lot to what he had to say he did neglect some points out there's not enough demand in the economy you know consumers really have spent quite a bit of money since the recovery began.
But too much of it goes overseas for imported Chinese goods and that block our stuff they won't let our stuff back again.
You know so we get paid for -- exports and we import too much oil.
To that I let the Peta President Obama.
He promised to do something about the trade deficit with China when he was campaigning in 2008.
At all he has done is talk shuck and jive he just having gotten it done.
With regard to energy he shut down on the golf you know we can easily cut our oil deficit in half.
Alright Christian what what -- you -- a lot to digest what do you think about that.
Well you know look -- -- President Obama has increased actually domestic gulf oil production so that's really not something you can -- speed I think Melissa what we've learned today.
Something that's been apparent for quite awhile and that is government is not helping but it's not for the -- the you've been talking about it's because governments particularly.
At the state local level have contracted during this recession.
And that combines all with these jobs that are normally gained in the public sector.
Means that there are about one point one million fewer jobs are government public sector jobs that you should have -- Peter what.
What more mailman -- more firemen and it would that solve the problem -- that bring demand back he said there's no demand Christian wants to hire more mart you know local state workers.
Well to do that -- have to borrow more money.
The trade deficit before it's into the budget deficit before the Great Recession began in 2007.
-- a 161.
Billion dollars.
Now what the federal level it's one point three trillion dollars to do a Christian would like -- to do we -- the drive that up to general trillion dollars.
You know we simply cannot use the Greek solution.
Barring our way to prosperity and if you do -- by raising taxes.
Why -- hire a fireman -- by firing a dry cleaner that doesn't work either Crista Moore broke I mean that got us some more stuff to other people I think that's kind of the only way to get it done.
How we're gonna sell more stuff to more people we have to increase demand in the economy and how are you gonna do that you've got to get.
More of our unemployed workers back to work and you've got to see wages.
Another people who has well that's -- now is it without yeah that's our study was trying to circle and that's the only way you're gonna increase demand.
Men and why the increased demand to me are you -- -- Peter.
Basic let's do something about China let's put -- tax on each Dolly on conversion to do something about their undervalued currency let's make it worth what it's supposed to be.
That would reduce imports and cause it and we make a lot more of the products that we import from China here it's going to bring -- to the bargaining table to start accepting our exports like get rid of that 25% tariff.
On US automobiles.
-- we opened up the golf.
You know North -- didn't happen because the president wanted to explore Beck he'd like to lock that down that's why is not building the pipeline but we opened up -- -- we get to increase oil production in the United States.
-- -- about you know a couple of million barrels a day that would create 250 million dollars more GDP 2.5.
Million jobs those are real policies that what works the promises were the president has promised repeatedly to do something in those fields heading that.
Doesn't think yeah front Christian respond to that up.
There appear to pose things would not happen tomorrow especially with the oil exploration that something that we -- -- prior decades down the road but I'm talking about -- changing the situation for American workers today.
And -- right that's right do you have basically hot cause more harm hit a ball not cause more harm.
How how we change the situation -- workers today we need to be able to sell what ever it is that they're making that's the only way to create demand.
-- -- -- -- -- It would look to China are we need more inventors come up with things like apple does but the rest of the world wants to buy parts of that money is flowing into our country you hire workers and -- products.
You create more tax revenue we have to be more productive.
No we don't inflated their Melissa but those are not things that we can do tomorrow what we can do tomorrow.
Is restore the same ratio of workers in the public sector that we have before the risks that we can't -- you did that.
You would lower the planet somewhere around 7%.
-- -- pockets empty have a deficit to -- -- you don't have any money to do that I know Peter what do you think.
What look the bottom line is that we can do the things I'm talking about tomorrow we started developing the gulf again that would put people to work making cement making steel -- and so -- just as they -- Christians -- -- you know building roads I mean the way Democrats wanna do what is infrastructure I'm talking about privately financed infrastructure.
Also if we took the policies -- -- with regard to China we'd be making more products here.
-- in a very short period of time you know we also -- -- stimulus spending that he advocates it takes much time to get that money out the door as well.
We've given that a try keep it has failed its failed.
-- is where where the resources that you wanna use Peter gonna come from where the resources that you -- -- use gonna come from.
Well if you -- if you open up drilling in the gulf it'll be private resources that are used in the oil.
Companies have what -- you money that the president let me.
-- -- -- -- -- I don't think they're not spending -- an investor right -- gentlemen I wanna thank you both for coming up.
Because you both represent a point of view that's out there right now and it's great to debating here both sides we appreciate it.
Haven't.
