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Here's a bad -- for you only 23% of American companies plan to add workers over the course of the next six months that's from the national association of business economics survey for the month of June -- -- Forbes opinion editor joins us now.
Up from DC and these companies in large part John are blaming Europe -- -- think.
I don't find -- very compelling certainly Europe's problems wouldn't help but let's remember Europe's economy after World War II is literally on -- back yet US companies hired.
Substantially it if you go back to the late ninety's.
Both Europe and Asia ran into serious economic trouble due to currency problems.
Yet US unemployment then hit an all time low I think to get a better sense of why they're not going to hire we -- look internally to -- been made in Washington DC.
And it -- matter what the cause is because once you first you have to identify why something's happening -- and you.
You figure out I guess how to fix it just to for the sake of numbers 47% of these companies said.
Sales they figured were down because of Europe you say it's more internal so that gets as to how does this change.
Well how does it change if we look at it in terms of hiring we we have to be very basic labor is a cost.
On the end and when you raise the cost of hiring workers that are you're going to hire less the -- main factors right now our of course are that the out.
Beat the upholding of obamacare which means that employers -- to have to pay a lot more for health insurance for employees that is going to raise the cost them hiring them.
Also if you look at unemployment insurance that's reached 99 weeks.
That raises the -- for employers to lure workers from the sidelines they have to pay them that much more to get them back into the working world they're not willing to lower their wage demands is they're being paid to stay sideline.
Because you're setting assays then obviously for the fall.
Hi campaign wants to get passed -- the state capital stuff and everything we've been talking about for the past few days.
This is going to be the main argument you would think what's the approach -- and there are far different by the way between President Obama.
And Mitt Romney cents a -- be lined up certainly more with what Mitt Romney's talked about but I said the president will argue hate.
This is what -- recovery from a financial crisis looks like it takes a long time.
-- -- Think that's wildly incorrect the simple truth is the deeper the recession the greater the rebound in the reason for that is that recessions are cleansing.
They are the happy process whereby you get rid of the misuses of labor all the Mal investment.
Economies bounce -- so I think Obama's presumption is is is false.
-- the way -- approach it is again remove these barriers get rid of the unemployment insurance or reduce the amount of weeks.
Don't make obamacare so onerous and I think biggest of all right got to return to the strong dollar policies of Ronald Reagan and Bill Clinton just for that is what -- Deserves exodus adjust for the sake of argument got to go back to your previous statement isn't it a crisis different that a recession or now.
Well you see I would argue that the crisis was caused by the government's intervention I would argue that is caused by the bailout so in -- -- she could say that the bailouts.
In -- sense robbed us work recovering economies need to hit bottom businesses need to hit bottom right so that new owners can take over.
But I I I don't think that's a fair assumption for Obama to make -- the recession was deeper and that's what he ran on.
Then by definition of the recovery should be very strong and he can't point that so we have to point some errors made by hand and by I would say the US treasury and fed.
And that's the yard that's what the campaign again should be about it at some point it probably will be about the argument on both sides of the of these issues we've been talking about John -- good stuff thank you very much.
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