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Randall Kroszner, former Federal Reserve Governor, and Joanie Ruge, employment industry advisor, on household income falling and how this will impact ...
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Household income is falling.
Since he became president it is off more than 8%.
And staggering indeed unprecedented drop for a president seeking reelection.
How much of a factor will have on this election.
The former fed governor Randall -- star and -- -- industry advisor.
Joni reveal on what to make of all -- Randall you first how they get attacked.
Well I think this is something that's very important average Americans have not made progress over the last few years.
Some of this is due to this statistics because son -- the average house holds a little bit smaller for time.
Also we have more elderly people who tend to have lower -- comes for their.
Living more often there -- -- savings which unfortunately aren't as big -- it -- that used to be but still this is a major challenge I think it makes people feel uncomfortable.
Now what's it Jazeera -- -- that John is all the things we equate our senses self worth.
Our home our portfolio.
Our -- -- and and and in the aggregate down 8% over the course of this presidency.
The president will argue well.
Yes technically but in the last few months we've been picking up steam will that be -- -- You know I don't know if it will be enough because it really comes back to how people are feeling.
You know we saw this week that.
Consumer spending you know was also up but then if you look at inflation that kinda -- -- out.
You look at you know gas prices have been -- reason why consumer spending is up for people having.
To pay more for food I so to look at that people are having to dip into their savings.
And it really take money out of their pocket.
There I'm not making as much money they're not keeping up with inflation.
So their confidence isn't going to be very good and I think it's going to be a real concern for the American people.
You know -- minute -- marketing -- -- days on the Fed.
When people expressed more confidence in the -- is that the number of this week hitting seven or whatever.
Do you guys measure that you guys say -- a quantifiable.
Economic booster because the better you field I guess.
Presumably the more you're inclined to spend.
And it that is the case and people are feeling a tad more confident.
Good to -- or what he's.
Well certainly -- if people are feeling really uncertain about the future they tend to pull back.
That's true of businesses because of the uncertainty on the fiscal cliff the and -- on regulation.
They're less likely to invest in individuals -- they don't know if their house prices going to go down if they don't of the gonna lose their job.
-- gonna pull back a -- so certainly the feeling of confidence the feeling that the future will look good.
Allows people to spend more today.
If they feel that the future doesn't look very good they're gonna pull back.
You know Joni you guys of the experts but as you know I play -- -- C and I read a prompter setting -- qualified to challenge your views.
But it in all seriousness and -- one that I do see of late.
Is this minimal expectations.
As a country we have of numbers of our environment you know the housing data still pretty dead but as long as it doesn't keep going down we're grateful.
We -- you we we look at our 41 K statements and you know as long as they haven't been hand.
We're grateful -- they take up a little bit so that might.
Change your thinking.
But toward the reality it's a reality for you is.
-- years of a pathetic numbers that not now warrant so pathetic what do you make of.
Well I -- I do you think people are probably grateful that it happened.
Gotten worse but at the same time they're still all this uncertainty out there.
As you know I -- I still aren't yours and you know by this optimism that seems to have.
Faster and -- you don't quite buy that.
No I I really don't because I think where people are spending money right now is.
-- you know they might have to still pay of course housing makes up the biggest cost and most people are underwater in their homes.
There's -- -- pay more for -- paying more for food.
They're not taking those vacations.
They're not getting the raises that work are seen their incomes really increase.
So there still is a lot of uncertainty out there at their cost says.
On they're really waiting to see what's going to happen I think they're looking at both candidates plans for.
You know who's gonna have the most job creation and who they believe in is really going to give them.
You know the bests you know next four years.
-- Williams -- and.
We'll give it up -- -- idea we can ever have another boom.
In this country have they just sort of -- because they've been pounded for years with us.
The boom days are gone the typical recovery you see where the jobs growth should be triple what we regularly say.
These numbers should be off the charts compared to what we see that may be -- have gotten used to this notion well I guess those days.
I hope people haven't gotten up I mean this is what America's about is about.
It just.
Real positive about the future about the ability for someone to to pull themselves up to have opportunities to to act have a boom to have growth.
And so I hope people haven't given up -- that would be very disappointed I don't think that's what America's about.
I think there's still hope that we are going to to get -- get back on track adding up a lot of uncertainty about where they're going to get there but I don't think people have said.
No this is this is it will never make progress that's not what America's about joining.
Yes I I would have to agree with that I I didn't I certainly hope that people haven't given up.
Hope I think they know it's out there they're just not sure how far on the horizon come before they really start to -- you know see things turn around.
-- Brazil debate is -- the light at the end of the tunnel is.
Is it just an oncoming train you never -- on these guys thank you hopefully not -- -- -- -- Tokyo thank you both very.
