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Former Labor Department economist Bill Rodgers and Jefferies managing director Ward McCarthy on what needs to happen to get businesses hiring again.
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-- the presidential election brought -- this is some of the certainty they've been waiting for.
Will that prompt them to start hiring but -- Bill Rodgers former Labor Department economy and ward McCarthy Jeffries chief financial economist.
Bill let's start with you -- -- -- you know more.
I mean we've got.
We've got capital gains tax going up dividend tax rates going up -- state taxes going up.
Taxes on the richest small businesses going up so our business is going to be in the mood to party on start hiring -- you accelerate this bill.
Well the -- the elections you know -- -- decide in one piece of uncertainty but as you just mentioned in your litany of universe policies you know we're -- that next next set of valuation of uncertainty.
-- for me the issue isn't so much starting hiring there aren't even -- You know we've already been adding four point five million jobs since server 2000 intent of the issues acceleration -- -- deceleration.
They're not gonna happen you say II I'm I'm pessimistic.
Now -- and offered right now pessimistic okay ward.
-- what do we need to get businesses hiring again beyond it's actual demand rising which we can't do a whole lot about.
Well we need some clarity -- we need some -- parents as far as -- fiscal policy is concerned.
We -- we have neither at this particular point in time the elections really didn't change -- -- we have the same administration.
The same controlled the house and the senate in the same personalities or whether the leadership so what we need is a change in attitude.
On the part of the political leaders that we really do need to address these issues that not.
Insurmountable problems that's just common sense.
That also looking out for the best interest of the country rather in the best interest of the individual targets right -- billions yes I don't -- -- -- and I think.
I created that you look at the -- the results you we're kind of back we were square one but the constraints.
That are -- -- will be binding at the end of this month are much much bigger they are much much bigger and you know the conversation is very much focused on Wall Street.
But the big losers if we don't get to some resolution we don't get to -- will be mainstream -- people on people on main street you've got a host of unemployment unemployed individuals -- -- 128 million plus the -- -- here -- a Democrat he you don't wanna see us not.
Raise taxes on millionaires and -- you don't wanna see if not lift the capital gains tax trade deal are you saying that we ought to not do -- -- wouldn't give businesses the higher.
We have to have a comprehensive.
Right sort of picture of our package what we do and I think we're gonna have to see the year the bush tax cuts extended.
But I do think that they they need to expired for those at the upper part of the income scale it.
We also need to reauthorize unemployment insurance you know you -- -- back to the previous recoveries.
We haven't we in those recoveries we did not begin to pull back on -- -- cut benefits this early with elevated unemployment rate type war -- -- -- -- -- -- -- -- -- about everything -- just -- won't do anything to -- small businesses to start -- well.
Well I think we need tax reform rather than their hodgepodge approach that we.
We take right now quite frankly raising -- tax rates on upper -- really doesn't solve any any problems it's not going to.
Put a significant dent into the budget deficit.
And frankly a well you know continue to be a problem as far as that job growth is concerned so I think tax reform would -- would be better than.
What -- just mentioned plot I'm not saying I don't think there'll.
There what are the other I think you got to do both I mean we've got -- I think first the president and the leaders in congress have to come out and they've got to.
Put together right frame -- to express their framework.
On how they're gonna solve this problem to help to reduce some of the uncertainty and fear that's out there.
And -- they've -- -- by the end of this month ended December they've got to deal with these issues of expelled the -- tax cuts expiring.
Of the Social Security tax cut.
Expiring and I am favoring that that that goes back to where was and the end we get into the next year.
It's -- recur in that first year well above the other tax reform look at to do get these bigger bigger issue returned -- Warren -- if it really has to happen in.
It's going to have to start in the first quarter.
And be done by mid year -- we going to get another downgrade.
And the reason it's going to start in the first quarter is that the debt ceiling will again become.
A binding constraint and that of course will increase the risk of instructions to treasury financing possibly government -- -- And it's this type of crisis that in the past has has traded congress sending -- politicians in general.
To address the budget deficits OK I think that's really what's going to happen.
And then we'll have you know through the second quarter to finally get things done by what will be back where we were in August of 2011 we'll leave their -- -- cradle holding a fiscal -- so -- that -- made earlier is actually -- way to work that out thanks so much Bill Rogers.
