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What is Holding Back Private Sector Hiring?

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    Former Labor Secretary Elaine Chao on what is needed to boost job growth.

  • Duration 5:26
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Well our next guest says the economy needs to be generating 200000.

Net.

New jobs each and every month just to keep pace with population growth.

He says part of the problem is the Obama administration's notion.

That America's private sector employers.

Are public enemy number one.

Joining us now -- out -- former secretary of labor under president George W.

Bush a distinguished fellow at The Heritage Foundation.

A Romney advisor and -- and that she's been nominated to the board News Corp.

our parent company here at Fox Business Network.

Elaine -- it's wonderful to have a quick view of what -- -- -- Selma thrilled to have you here tonight so as you know when the most troubling aspects of the August jobs report.

Is the labor participation rate 368000.

People simply giving -- how do you turn this trend around.

I think first of -- And that the government deficit position.

And we're talking a lot about that today because of all the talk about QE3.

Yet that is actually hurting job creation and the employers -- holding back because they're not quite sure what the fiscal landscape is gonna be looking ahead.

They don't understand what their obligations are until Obama care.

And they're looking act -- Dodd-Frank which is freezing liquidity within the banking system.

So there's a lot of hurdles -- the economy which is holding employers back from investing in longer term.

In the economy in their own companies and therefore hiring more people absolutely -- the very start.

But principles on there -- start adding there has to be.

A much more clarity about the administration's -- going forward in dealing with the tax situation.

And also what the avalanche of government regulations that have been pouring out of this administration in the last -- three and a half years so -- regulations.

Movement.

I have an idea how -- -- -- -- -- -- I I'm sorry adamantly bit of a direct.

I wanted to come -- though we if this idea of -- he's presented his multi point plan and both of twelve million jobs to be created.

He's been pushed a little bit for more details specifically on the taxes can you help us out here to understand it more fully.

You know it's really not that difficult I think the basic premise has to be -- the private sector.

Is the main engine.

Of private thought total employment the government does not create jobs.

The government creates the environment through which the private sector creates jobs.

And that notion has been noticeably missing in the last three and a half years.

Employers have been bombarded with -- of increased taxes as I mentioned increased regulations.

And the government's deficit position it's hurting our competitiveness.

Abroad and again creating a dampening affect on job creation.

Sold going forward governor Romney's plan for job creation is really very simple.

In still stability in our economic system by car buying what the tax situation is going to be.

That our national debt has hit sixteen trillion dollars when the Democrats are -- in North Carolina I mean how apropos.

But our situation abroad is impacted but what we do internally here domestically we cannot continue.

To -- these huge amounts of debt which brings us of a question about QE3.

If indeed fiscal stimulants were enough to jumpstart the economy based on the government's tremendous amount of spending in 2009.

Our economy should be humming along.

Right now okay it is here is.

-- the other side of the coin -- to -- arguments in favor of another round of quantitative easing.

More inflation and when you say inflation people sort of worried ago who not not higher prices but inflation has been flat this country for so long that.

May -- the Fed wants to gin up a little more inflation because that improves the debt situation.

Do you buy that -- -- I think that's a very.

I have great respect for the Fed I think that's pretty dangerous -- because what we are facing is we do not get economic output going.

And and we don't kick up kick start our economy.

When you spent all this when you flush the system was so much cash and there's not the economic growth and goes with it.

-- gonna create conditions for stagflation and I think that's very very risky.

All right so let's talk about the fiscal -- -- right because this is the near term problem.

This mix of tax increases in spending cuts that'll -- -- before.

The new president takes office are you at all optimistic.

That we can resolve this and I mean they Congressional Budget Office predicted if we don't resolve it.

And look -- I think to have a recession.

How how how I think -- have to be result has kind of -- look at -- -- eyes on anything in the last year.

Whether it's gonna be a lame duck session after the November 6 election and this issue will be handled during that time I think what is very important to note.

Is that the what happens during the election.

We'll have an impact on the length of the resolution of the fiscal cliff.

If indeed it is a status quo election that I think of Democrats and Republicans are more likely to think of a longer term solution.

But if indeed it will be different kind of solution that I think either side would be kind of motivated to have a different -- shorter term.

-- -- resolution to all of this so elections do have consequences.

And we need to be looking ahead I think.

This fiscal coefficient must be resolved by the end of the year and it will be.

We're optimistic with you Elaine Chao thank you so much.

Thank you.

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