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Jefferies chief financial economist Ward McCarthy and former labor department economist Bill Rodgers discuss the labor market.
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Here's another -- 4155000.
Jobs added in the month of December that's according to the Labor Department -- the big number this morning.
Unemployment unchanged from November's revised rate of seven point eight -- is Washington doing enough.
To deal with the nation's stubbornly high unemployment rate joining me with their take -- house.
-- party's chief economist at Jefferies and former Labor Department economist.
Bill Rogers were not gonna start with you when you're on the show back in November you wanted tax reform -- said -- this country.
We've got meaningful tax reform and that the employment picture will get better we didn't get that -- now what happens.
Well we know we did not get that unfortunately.
That the best that we got was removing the the prospects of 514.
Billion tax hike in 2013.
We still got a tax hike but not quite as severe as it was.
The best thing that washing thing can do to help the labour market.
Is -- just resolve all these political differences.
Get -- pass the debt ceiling get this passed.
Whatever spending cuts are going to be necessary for a long term budget deal and I think the economy is poised to generate much stronger job growth -- we saw today.
-- being boost with.
From the housing sector from the energy sector and also from manufacturing which is undergoing a revival.
-- bill we did get at this book club discussion finally ended but at the same time you got really what you wanted you wanted to see unemployment benefits.
For instance extended you got your wish but now we have an unemployment rate.
Unchanged month over month.
Yeah I mean have -- -- -- I think really gets stated and I agree with them that you know we really have to get these to head winds in this what's creating all this uncertainty around.
You know sort of the short term and long term fiscal issue.
And -- for me that will then I think really put more wind in the sails of households of of people on main street.
Because they're still are -- They have to reduce the their debt and increase their savings.
Bill that well -- in their homes.
And I think that will be one of the key drivers is that we -- -- -- -- 70%.
You know national income comes from personal consumption.
Given -- the same time I mean I don't know -- that building up savings rates among of the nation's.
That on the middle class of -- gonna happen when we did see at the payroll tax that holiday expired -- one instance of how.
Paychecks are going to be different we're going to be talking about that today on the show.
Yeah but he also conversely if you've got -- -- had a payroll tax it go back to its original level to help preserve.
Social Security in the future funding but you also had a variety the earned income tax credit was -- was it was held it.
-- for another five years the child care tax credit was also help another five years.
And then you have the that the tax cuts that we're done you know up up until the -- thousand dollar -- thousand dollar threshold so.
So why he doesn't want -- you had a very positive piece there.
But but what about -- about the debt ceiling debate we're about to go through another round of arguing in Washington at what do you think they should do.
To help stimulate and build jobs in this country which we still don't have on a meaningful level.
They should just get it done as -- what they should do.
If it is not just the debt ceiling the debt ceiling is the point of leverage.
The real issue here is how much are we going to cut from federal government spending.
To get the the budget deficit in line with what it needs to be in a long term basis and they're already squabbling over that.
The other thing is that there -- only tracking -- discretionary spending.
And entitlements represent about 60% of overall -- so we really cannot get to the promise land unless we also address.
The entitlement situation which of course is politically unpopular because.
Politicians that fear that it may threaten their job.
Security.
Bill what do you say hey -- -- and I don't let's go ahead I'll we have -- we have to amended that pisses fiscal cliff 2.0 I guess some people are talking about -- today.
And but I think we have to be careful we can't take a scorched earth approach and just have -- -- -- across the board cuts.
That we have to make sure we minimize.
The adverse effect on and on middle income families for example in New Jersey we've identified about one point one million households -- lottery out of a million households we call Alice these are people -- -- asset limited income constrain and employed and there are some of -- people in poverty.
But many of them marks in middle class families families earning 5060000 dollars a year.
And if we pull back in the to a scorched earth approach what we pull back on education training.
On productive as investments investments or expenditures.
That not only you know provide opportunity today but there -- but they help us.
Minimize poverty in the future to help us minimize okay people getting access hurting themselves in a downturn that bill that we run that we run we run -- run the risk of pulling back productivity but don't -- -- The standard.
Hello my question was -- about entitlement reform mean don't we need to address on a national level.
It's how the reform got -- and also security Medicare right.
I as sure exactly when and where and end right now you know there's a sort of blanket commented -- -- fixed rate raised the a retirement age.
That's and that's -- cultural scorched earth approach well.
Yes we've moved out of manufacturing to a service economy but there are still many many occupations.
Where trying to work until you're 65 to seventy.
You know it's it's it's it's mentally taxing physically taxing to be a nurse I'm a police -- so it just can't be done you know sort of across the board behalf of a thoughtful.
Not long list you know you do not agree on on the phrase get it done and I think most Americans feel the same way were going to be big for me it's -- -- at the yes it is yet nobody -- yet -- and I.
Well you know somebody got yes somebody got no what McCarthy Bill Rogers -- -- thank you thank.
