You're watching...
The Conference Board executive vice president Bart Van Ark breaks down what will promote growth in the U.S.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Minutes -- out -- like now.
Are -- -- cutting estimates for the US economy you can now expect US GDP will grow paltry 2% this year.
Fitch is warning that weak growth may lead to credit downgrades and US companies Bart van Ark the conference board.
Is with me up you know this is this is basic question -- how you get this economy to grow or they had nothing but headwinds regulatory.
Yeah that that's a really really hard question I mean we were growing the economy at about two and half free free and half percent before the recession into way don't -- And since then except for to -- -- immediate recovery after recess and -- been one big growth disappointments and even this year again.
But -- actually started off on a positive note we again see -- housing it's -- it's hopeful but it is still slow in getting back.
Labor market is terrible and the consumption is not -- so.
-- cop out that you -- you know that well.
You know the problems in -- her affecting the United States -- you know and and China is only growing at 8% -- -- that's our problem but at what point do we have to stop.
Blaming.
Other countries.
And start to look and yet well.
I mean to headwinds from the rest of the world do absolutely payroll so I mean we cannot understate that I mean -- markets how they're very important for US businesses.
However it is true that ultimately what we need to get at is to invest in our own economy we need to invest in equipment that is that you bringing us to new innovations in the new technologies.
But the reason why basis are holding back is because confidence is so low confidence has a very show at a very low short shelf life right now.
And you know as a consequence -- mrs.
Arnold moving forward we need to see some recovery in the markets and in demand as.
-- don't let me ask you about that because business is actually small businesses are gonna have a hard time especially with taxes visit the president announcing yesterday a one year extension.
On the bush tax cuts but it's under 250 -- return a thousand so many small business I'm not gonna have a good time -- -- -- Unfortunately it doesn't mean anything coming -- -- Washington literally promoting growth.
I mean if you had your druthers right now what would you what does -- -- when you make to have the country grow your small business for.
Yeah and I did that's a big -- right now a lot of the talk about Texas and song is all very much sort of short term.
And I think you know what it may very well be at the electorate is increasingly going to look at you know what what is is going to mean for the long term -- can -- ever get my job back can actually before school and health care and those kind of things.
So it is it is really all ultimately about innovation and it is about productivity growth productivity growth in the US economy is going to manufacturing.
The rest of the economy -- us history that this negative actually yeah.
Don't put us addressing the job but -- the services sector well we -- manufacturing.
Really hasn't shown how much -- that a lot now and I mean growing jobs in serves -- sectors that do not have to productivity growth is not sustainable because you know you can't you cannot continue to putting more jobs if -- due -- -- on the productive and -- and wages have Benton.
Relatively.
Flat or actually wages have been holding back and and -- -- a bit of the circle there are of course because because wages were so slow.
We have slow income growth and because -- have slow income growth every time.
That you know people -- income falling to dipping into their savings in -- sort of keep their consumption political.
Are so so yes it's it's it's a circle that's going around we need to innovate we need to invest in education it's along whole Cheryl -- we -- make something in this country right now there are no current -- Bartlett Eric thank you very much from the Cairo where they.
