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Former Labor Secretary Elaine Chao on what is needed to boost job growth and economic recovery.
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Turns out private sector is still not fine only 84000 jobs -- added in -- that's the weakest in ten months so what went wrong.
The task Elaine -- the former secretary of labor for president George W.
Bush.
Eight point 2% all the money we -- this economy and this is what we have to show and remember you know the marketing of this stimulus package.
Was that if all this money -- -- right unemployment rate would drop to five point 4%.
And that clearly has not happened and as you -- -- we're just discussing it people want to see more money -- into the -- conscious astounding because of it didn't work before it ain't gonna work again.
So -- -- to happen what what's gonna make this work.
I think what's happening is that there's just tremendous uncertainty and anxiety about this economy by employers.
Two thirds of the net new jobs created in our economy are by small businesses -- and they are seeing coming down the pike.
-- -- -- stream to them.
Increase taxes from January 1 2013.
If nothing is done.
There's going to be a whopping tax increase -- everyone in this country especially those who create jobs.
Second of all the supreme court's decision last week.
About Obama care.
Has really caused a great deal of anxiety and a part of employers who now think of increased health care.
Ross and many of them may actually find that the mandate is too onerous and they may actually take the penalty -- the tax whatever it's called.
And two chest and not not be able to take care of -- employees which many of them do not like and then thirdly the Dodd-Frank.
Reform bill.
So called reform bill it has hundreds of new regulations.
Still coming out.
We have -- huge amounts of regulations coming out from Obama care from Dodd-Frank.
-- that's going to be coming on the next two to four years plus system not me.
Of regulations that are coming out of the executive branch as all of this has had dampening affect on job creation how do you stop this now because now it's just a big blinking.
Everyone is pointing fingers no one wants -- blame T you point this stuff is coming a dot frank is right now is coming.
Unless they repeal Obama care that's coming so.
What happens it's just -- right now what the president is saying that you know he got he inherited a bad -- economy.
Three and a half years into his administration it is now his economy -- he may have inherited bad economy but he made it worse.
The amount of uncertainty surrounding increased taxes then they again.
Avalanche of government regulations that are strangling small businesses at a private sector and plus the fiscal.
It.
Discipline to lock -- a better -- a lack of to fiscal discipline is putting our country at risk and in Europe the European situation.
Is very very you know -- -- dangerous and it's not contagious I think.
Asian -- Asian and emerging economy great comics they're slowing down.
So at this and that inter the locked.
Inter connected to world economy.
All of this has impact on our common but the uncertainty I think is number one reason that we hear from people why they're not hiring right but -- -- point how do you take it away.
I think the government just got to stop what they're doing that got to stop interfering.
They've got to pull back.
And -- -- amount of onerous regulations.
That are placing great burdens on our employers so that they can't create jobs.
We've got to make -- that's something is done.
To make permanent the lower tax rates -- Alaska -- years.
And in a very -- just -- -- not tighten our belts and have some fiscal discipline and yet we're talking about another round of quantitative easing terrible idea another round employment right into the market and you know weakened and obscene.
OK sure -- short term blip in the economy.
But it's not sustainable it is not the long term -- it's a delicate it's very harmful to it could also push up though the unemployment rate.
It can be because the what is -- called the employment population ratio -- of the labour participation rate is at the lowest.
And decades it's about 63 point 8%.
Out during the years 2001 and 2008.
The labor participation rate was about 67%.
Out of a population working population of a 155 million -- -- four percentage point three percentage points.
Mean a lot of people who have become discouraged they've withdrawn from the work -- they're not even looking.
So if -- common because to percolate a little bit more.
And hope returns.
Some of these discouraged workers will come back into the economy right and that could have been out and they will boost in the back at the unemployment rates really tough right now though why would I go look for job when I'm collecting unemployment and you know -- my paycheck could very well be similar -- -- stay home.
You know we want we all want -- to have good jobs and all want to put to have jobs and I think part of public this economy a large part of what's wrong with this economy now.
Is that there's no job creation.
So first and foremost our focus as a nation has got to be job creation.
And removing all the impediments.
That will harm job ration book cast you know put -- a dampening effect which again -- comes down to these federal regulation passed on the every four months this job supports -- -- Secretary thank you for being with us.
