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Former Bain Capital Managing Director Edward Conard on the economy and the President’s negative ads focusing on Bain Capital.
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99 days until Election Day and the Obama campaign ripping into Mitt Romney welcome everybody I'm Liz MacDonald in -- Neil Cavuto.
And Fox Business on top of an Olympic size negative ad push.
-- during the Olympics.
-- he admits that over the last two years he's paid less than 15% in taxes on 43 million new album.
Makes you wonder if some years you paid any taxes at all what his Mitt Romney hiding.
We've got former Bain Capital managing director at Conner he says instead of all but calling.
Romney attacks Sudanese says the president should be taking heat for the economy and what to make of this -- Well I think when unemployment above 8% probably closer to fourteen in the economy's growing -- an anemic one and a half percent a year what LC in -- you have to divert attention from the economy.
To your opponent do whatever you can the -- So -- this is just a diversion in other words.
The vice president said you know two years ago we are basically in the summer of recovery over the economy still in recovery work right.
Sure I think everybody they they keep waiting for the big rebound that's gonna bring government spending down from 24% of GDP but for years after the after the crisis -- it's pretty obvious that we're not gonna have a quick rebound so ultimately this is going to be -- an election about do you want private enterprise silly the recovery anything the government's gonna -- the recovery so.
You smear private enterprise through -- and Bain Capital and ordered try to make the choice.
Government I I just can't believe that.
People are gonna buy.
Our closest dozen members quickly one point 7% is this six month -- -- in other words for the first half that's the annualized GDP rate that's economic growth rate.
You know weaken the president took office with a one point four percentage GDP growth rate and you know 2009 -- -- -- -- You know percentage points that you have -- decimal points off of that right -- -- we're no better.
You normally get a big rebound after recession that -- that makes up some of the lost ground we've had no rebound here at all we made of not a -- -- And so we're left with high unemployment slow growth and very little chance for any rebound that's gonna bring things back into balance we have to start taking a tough tough measures.
Yeah the president second raising -- saga about how you know we did people need to pay their fair share for the deficit doesn't want to ticket.
You -- out the deficit by five trillion follow -- -- and I think they want to pretend that just because they could raise tax rates in the past when.
There was much more growth in the economy whether that was -- 1950s the 1990s with the commercialization in the Internet that they can raise taxes and data cover much more government spending today.
The never had back -- and that it won't affect our growth rate obviously well.
You -- -- is doing he's saying look at about for example Bain look -- -- costing the US economy jobs the president's been attacking him on that.
And that run is coming -- saying look I retroactively.
Retired before all that outsourcing happen that Bane what do you make of that response from Mitt Romney.
I think people are confused about outsourcing and -- because says we did help companies is that -- outsourcing some of their operations of domestic US operations we did very little offshoring I was they had manufacture what do you mean by that what he's trying to say well and that shaking jobs over to China as a way to reduce -- guess what all the competitors in the same thing there's no profit there there's nothing good for investors in doing that.
Those are things and investors try to avoid for this -- if you're losing jobs.
I I think really when you look at the history in the United States in the last twenty years you see great productivity gains relative to Europe and Japan.
And much higher employment growth relative to Europe.
I mean clearly it's for the viewer is that any big income -- out -- and say look we actually create a lot of jobs the president -- was.
You're not gonna find the true answer -- SEC disclosure filings don't have it but what is true though is that the president as -- campaigning.
A quietly and on -- the success of his things like his free trade agreements.
With South Korea Colombia Panama isn't that also a form of outsourcing jobs free trade agreements.
Of course -- of -- of course they are.
I just go back to -- record really -- Two and a half times faster than the S&P 500 when I was there that added about a hundred billion dollars of revenue the idea that -- didn't add jobs is just.
Ridiculous.
Are -- we have Newsweek now coming out with a cover saying Iran is a -- for the -- to them.
Well I think he is gonna have to make in defense of private enterprise but -- if I were him might be saving that until September or October.
When it matters I don't think people are paying much attention here in the dog days of July travel and by the way music is a magazine that was -- for a buck so yeah.
I've got settled.
Ever -- but go ahead.
Well I just think you are gonna have to make -- defense about the choice between you think government's gonna pull us out of this recession.
An increase -- own party think private enterprises who do you think satisfies the needs of the people -- the customers.
And the people better government or business who deploys our.
Our capital more effectively the government or business I think the choice is gonna be straightforward do you think that the American people get -- that the question could be you know -- taxes.
Higher taxes with a way to go otherwise California's unemployment rate.
At above 12%.
Right and act in California let's go to Europe where they have higher taxes mean they have had no growth in their employment hours of employment for working -- people.
For twenty years Germany and Japan -- -- negative growth in the total hours worked in the US has 50% more hours of employment.
Per working age adults than Europe had asked me if higher taxes -- the answer we'd see some comparability in the performance of the two economies you.
There's no comparison between.
So you know at me look at what the president's doing it is that campaign it does feel like a real diversion right I mean you know we have -- -- young for example coming out saying.
Look the higher taxes the president wants -- -- it will hurt small businesses you know lose over 700000 jobs there -- 200000.
Jobs lost in the small business sector since 2008 right.
I think any time you diverting from unemployment and slow growth to -- taxes.
That's another victory another day of victory for the Obama campaign as we're not talking about the issues that matter.
The -- you can go the better off they'll be.
Alright Ed -- former Bain you're actually managing director there that's the title thank you so much for joining us tonight really appreciate this --
