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Ed Lazear, former White House Council of Economic Advisers chairman, on what today’s election results mean for the economic recovery.
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The current national unemployment rate is seven point 9% of those people had to the polls today and tonight.
This might be what's really driving their decision so what can we expect President Obama or governor Romney to do if elected in what will the results of today's election mean for our economy.
And frankly your world joining us now -- -- he's former chairman of president Bush's council of economic advisors -- so good to have you on election night and the of the real question becomes no matter who wins.
How will they figure out what is needed to be done to create jobs.
Well if you look at the economy right now and and when I say right now really for the past four years and we've been just muddling along after the -- recession ended back in June of 2007.
To 2009.
We started growing but we've grown at a very slow pace of about 2%.
Job growth that currently is -- about a 170000.
Per month but that's only about 50000 above.
Where we need to be just to keep pace with population growth so with those kinds -- numbers -- talking about thirteen years before we make up for the lost jobs during a recession so.
So what I think you're you're seeing right now is -- an economy that looks.
Unfortunately a lot like Europe's look for the past couple of decades very slow growth very slow job growth low wage growth high unemployment.
All of the things that characterize.
Place that we don't want to be.
So the question becomes what can we do to change that I think you know my view is that if we.
If the president is reelected you know you can expect more of the same -- he hasn't announced any major changes in the strategy and I don't think he sees any major changes.
Being warranted.
So expect more the same if the governor is elected there is a chance because he will.
Focus on policies that at least historically have had some possibility.
Success.
And those policies would be.
A low and efficient tax system it enhanced trade with other countries and in his case particularly.
With Latin America's what -- featuring more cautious side to regulation.
He wants to impose cost benefit analysis on any additional regulation.
And a cap on government spending which is definitely needed at this.
Well I'll I talked to people who who -- this all the time -- -- -- you -- demand if you wanna start seeing companies -- they need to see people buying their product.
And you can't just create demand because a new guy is an office how I -- at -- from an economic cat like you.
How do you create demand and -- it can't be as simple as.
Clear out some of the uncertainty what is it.
Now no I don't I I agree with you I don't think it is clear out the uncertainty in fact you know I mean the uncertainty is an issue but I think.
Uncertainty has been overstated the problem is not the uncertainty it's the certainty.
Economic measures that are going to hinder economic growth so the way I see it is that.
We know that that the major way to get wage growth in this economy is to get productivity growth if you look at the historical data.
What you find is there's a very strong correlation between productivity growth and wage growth and so.
How do you get productivity growth -- get productivity growth primarily through investment and how do you get investment to get investment by having a pro business environment which means again low official low and efficient taxes and a reasonable regulatory environment and obviously you know fiscal responsibility so.
I would say that if you had those you'd start to see incomes grow -- start to see jobs growth.
And that would be the way that you create demand so that's what that's where you'd see it happening in it we tend to feed on itself.
We need it atlas air thank you so much for joining us we appreciate it but you.
My pleasure.
