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Former White House economic advisor Todd Buchholz weighs in on President Obama and the economy.
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Thank you and we are covering every inch of that just as we did the Republican Convention election -- -- just about two months away.
Your money could very much be at stake one former hedge fund manager -- two issues that could affect the financial markets come November.
Todd Buchholz is a former White House economic advisor for the first President Bush and former managing director of tiger hedge fund.
And author of the book rush why we thrive in the rat race good to -- FX for.
-- and and so.
Before we get to specific -- just -- as is or any thing as the democratic.
Convention begins his or any thing that the Democrats could say or promise that might make.
Particularly small business owners a little less skittish a little more likely to invest in their business to hire more people.
Well of course right now this fiscal -- that President Obama seems rather comfortable with he's going to Jack up.
Tax rates on investors and on small business is at the capital gains rate is going to go up by about 50%.
The dividends tax rates going to go up by about 250.
Or 300 to 300%.
If if President Obama said you know what.
Now may not be a good time to raise taxes on small businesses and investors well I'd be quite happy to hear that I don't expect it.
But I'm waiting.
We just showed becoming a born to run nation and some of the points that you say we need to embrace and yet if we don't you say we thought this was -- Become a born to six nation.
And among them aside from don't tax capital gains more active propulsion coming from people not just expecting the government -- everything.
-- signing bonuses get people excited but what's wrong with our nation right now and have we become spoiled.
I don't know -- spoiled as the right -- we've certainly become discouraged.
And dispirited.
-- I look at the White House I think President Obama is running the Angry Birds economy.
You look at the White House in the administration and regulators and tax hikers.
And they look like they just want to launch missiles are launched themselves that businesses and they look at businesses and see them as some sort of greedy pigs.
You can't be in favor of investment.
And -- -- and against investors and against business in terms of born to run born to sick but there are some discouraging signs in this country.
A young people especially are far less likely to move to another state to accept a job than they had.
Had been in past generations that's why we see certain states like North Dakota for instance -- or Vermont that have very very low unemployment rates.
But we're not seeing a -- how flood of refugees.
From high unemployment states coming there to take those jobs in prior generations in prior recoveries that took place.
Right now it seems Americans are sadly.
Are more content or at least -- more likely just to be sitting home and grumbling.
As opposed to taking action and I wish the president encouraged people to move -- to take action as opposed to waiting for a handout.
Well it and frankly that the money has been coming out of -- -- the president -- the 99 weeks of unemployment insurance there -- a lot of other government programs -- -- -- in some cases.
Be delaying the inevitable which is that some people shouldn't have been in houses to begin with -- they overspent its that are so eventually as these government programs run out -- his people's wallets begin to get thinner and -- and his parents begin to get.
More more fed up with the kids that are still living there and or vice Versa won't that sort of movement that that historically we've had in this nation begin to happen.
Well yes eventually it happens but boy wouldn't it be better -- happen sooner -- most the conventional view of economists.
And Federal Reserve board studies say that 99 weeks of unemployment.
Added to the unemployment rate at least one percentage point eight point 3% unemployment 23 million Americans unemployed.
And some of that is because we've got three million job openings.
And not enough takers -- -- there may be a mismatch of skills but there seems also to be a mismatch of motivation.
-- there's one thing and we don't wanna look mismatch wanna be fair and balanced here you know corporate profits since the president took over are up 63%.
And the S&P 500 for example up 65%.
There are positive signs were all of this and yet there seems to be a decent clip nation to really embraced that is that all because of what about about this with Carlos -- is coming up.
The fact that we still have millions unemployed.
And would that solve much of our problem.
Will.
It's -- you're certainly -- -- is -- corporate profits have been high the S&P is you know rebounded.
How although if you if you look over twenty year period or ten year period I should say.
But not all that impressive but the corporate profits the money is there and in fact it is business investment that's been the weakest link in the economy.
Right now auto sales -- too -- restaurant sales aren't too bad consumers are showing some composure.
But businesses seem very sour.
And why not if you thought that the capital gains tax rate the dividend tax rate was either gonna go up somewhere between fifty and 300%.
You might be a little bit reluctant to spend some money is well we have to ask ourselves he's the United States of America right now.
An environment that welcomes business and welcomes risk taking.
And when you look at.
New regulations and we look at the kind of the antagonistic.
View of so many folks in Washington torture -- the pharmaceutical industry.
The HMO industry the banking sector the energy sector before you know it they're like a turret on a tank.
Eventually aiming at every single industry except the solar industry and if you're importing solar panels from China -- being aimed at as well.
Todd Buchholz former White House economic advisor thank you very much -- he is author of rush.
Why we thrive in the rat race is also ahead of the tiger -- could see it thank you.
