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Forbes Media Chairman Steve Forbes on the impact on the economy of further stimulus by the Fed.
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-- adding only 163000.
Jobs last month an economic growth still really weak.
The looming question is whether or not the Federal Reserve should go ahead within another major round of stimulus healthy recovery.
Tomorrow's release of its FOMC minutes may provide a big can't but in the meantime.
Atlanta fed president Dennis Lockhart made a strong case against it earlier today.
There is a risk that monetary policy is -- to aggressively.
And without affect.
To address economic problems that can only be resolved.
By fiscal reforms.
That involve making tough choices.
About the allocation.
Of public resources.
So what -- third round of quantitative easing finally do the trick in get the economy moving or would just make things worse.
Joining us now Steve Forbes chairman and editor in chief of Forbes media and the author of a new -- -- -- -- Sir thank you for being here and I want to talk about the book but let's first go back to what are fed is doing should they be given more money to the markets.
No they're harming the patient not helping the patient that are -- ultra low interest rates -- faction hurt small businesses.
And of real -- for government debt financing and big companies but the job creators still having a Dicey time getting credit.
So the Fed's doing more harm than good anytime we destabilize the dollar make it go up and down like a Yo-Yo like the clock you don't have sixty minutes and our very hard to do commerce.
What's interesting though is we see what's happened from.
QE1 QE2 love diminishing returns right we had a nice little bounce for want to the first one after the second one.
Maybe the market was up -- -- a couple weeks and that was the end of it.
We also see that businesses are sitting on cash no -- is hiring because everyone is concerned and nervous so why -- -- even thinking about doing this again.
That's nice thing about being a government agency failure does not deter you just -- try it again whereas in the marketplace if you do something that doesn't work.
You keep doing the bad stuff you're going to be looking for a new job.
So.
Most people still think it's going to come out what happens it's us.
I think the the markets may have one day of saying all help is on the way.
-- the realizations gonna sink -- no structural changes in not being made printing more money in and storing and it back at the Fed.
Not gonna get this economy moving.
What happens though I mean -- an election to to change.
The way people think because up until the election we have the same -- That's the problem well -- so also the opportunity.
I think -- one of the things that I hope come out of the election's not only change in the government.
But also a change at the Fed the Fed has tried stuff but has not worked its job should be a stable dollar stop trying to punish savers in the name of saving the economy.
And again when you have something stable you can plan for the future so the Fed does its -- congress does there's this economy can come back to life.
-- inching -- we be here tomorrow -- the FOMC meeting -- in the past we've started to hear the Fed kind of punted to congress and say congress.
Get your act together but they're kind of not either are -- Now the Fed's got to get its act together.
Zero interest rates is not worked in Japan for twenty years very clearly is not worked here so they got to get their act together.
Congress got to get their act together and the next presence got to get his act together.
Black -- for attention -- congress in particular they -- this huge fiscal cliff we've been talking about it for months now nothing's getting done about it.
Do you expect anything to -- before the end of the year.
We'll see after the election together -- prospect of new president may be a President Obama.
Will make the deal but I think the market shall realize that come on January from the comes in.
They will have an extension of the avoid the fiscal cliff everything will be put off for -- -- I -- deals with tax code.
And -- so even if it takes three weeks Romney takes office January 20.
I think everyone expects it'll be made retroactive to January 1.
Am I I'm I'm in the same camp as you are on that let's talk about the tax code a little bit what should be done because it isn't.
-- -- -- -- -- hated it it shows the worst of a -- government where you go they -- you don't garnered in the marketplace should deal with through lobbyists and a change in the tax code.
And we we pat 141000.
Changes since 1986.
It is insane I think we should just throw the whole thing out -- Paul Ryan would like to do is start over he would have to rates I think we can do with one.
But that drastic simplification -- the brainpower seven billion hours last year we spent filling out tax forms for what purpose but.
Is there of the political where with to junk the book like I'd like to -- Only if you get a real mandate from the people.
Congress won't do -- on on its own why because -- huge source of power everyone comes with their -- -- -- we got to change it Paula tenure reception.
Right where they Amphenol favors if we -- -- -- the tax -- that's about your book now freedom manifests I have -- -- here tell us about it.
Well it makes the case that free markets are moral and big government is immoral.
And that is in the past we've always been told -- government is out even if it's an efficient helps the small guy.
Take some rough edges off the markets the markets are a moral and cold.
-- big government is the one that turns out to be greedy.
Big governments -- -- turns out to be in the way of opportunity free markets creates opportunity he take the example one of the examples we site.
Apple vs slim for apple -- in the marketplace -- new products great jobs higher stand living Solyndra crony capitalism.
You know our founding fathers.
Wanted free markets and then somehow we got away from it.
-- think we'll ever get back there again.
Yes I think give the real debate when the big debates is coming as what best serves the public good.
I think free markets a sensible rules the wrote.
The founders understood -- we understood until the great depression and -- -- realize basic principles positive principles of freedom again.
Can't pick up Steve's book freedom manifests.
Steve thanks for -- gonna -- thank interest.
