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First Trust Advisors Chief Economist Brian Wesbury on what is needed to speed up job creation.
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-- the number -- jobs report that nobody talks about really everybody shed over 22 million that are unemployed or under employed.
It is -- unchanged from November.
And it may be -- change is good sign right Westbury is joining us first trust advisors and economists.
-- -- hiring isn't stronger so far in this.
I've -- -- -- we were groaning and rolling her eyes at the idea that the unemployment rate.
Was revised up from last month -- lot of revisions that you don't often see -- in the rate at seven point eight number right about now this -- -- can -- -- seven point 8% it's unchanged from last month.
I don't know right did you roll your message -- I'm -- too cynical never.
Mean look at the you know seven point 8% unemployment is awful it went when unemployment -- over around seven or close to eight everybody knows.
Someone who's out of a job.
Or has a family member -- out of a job.
This that it it -- -- not in a good spot.
And the reason is is because government is true.
-- it's it's it's.
You know I imagine that the economy like -- -- source right on track and the jockey weighs a 112 and a half pounds but when government gets big like this.
We end up with a 200 pound jockey on the horse there's no way -- can win.
It runs a lot slower we have a higher unemployment rate we have a slower.
Economic growth rate.
And that's what we're experiencing today so even Bryant were still.
-- wanna come -- here we have I wanna I -- funds allows the government largesse lead and just mentioned this off the -- to Melissa here.
Government -- actually slowed in December but not by enough for the margins it make a difference in the size of government -- that you're saying.
I -- isn't -- big change in the right direction.
Down by like -- -- -- thousand payrolls.
-- -- govern government hiring is one measure of the size of government you know and we still have.
Huge.
A huge government in terms of employment so.
Losing thirteen thousand or 151000 jobs it is it is that a drop in the bucket what we really ought to look at.
Is how much the government spends.
And as specifically what it re distribute because that's what takes away.
Our our dynamism that's what takes away.
The benefits that we get from new technologies I mean if you think about our world today we have the cloud the Smartphone that the tablet.
Fracking.
With natural gas and oil I mean we are we are seeing monumental.
Improvements in technology.
And the economy's not benefiting like it did in the 1990s.
In the 1990s we grew 4%.
And we had a three point 9% yeah.
I'm sure we're seeing these developments and we're not getting the benefit in terms of the job there's red back -- -- -- -- -- -- and if you look at any of we add jobs at a rate just put -- perspective of a 155000.
Per month.
It would take like nineteen years to get back to -- -- -- which is you know assumed to be even noninflationary rate.
Of unemployment or what what is the natural rate -- you know what it is you're obviously -- just get deport would take.
Like nineteen year -- yeah it would take forever and the only way the only way we're getting back to 4% unemployment is if we shrink.
The size of government debt that's.
That is the burden on our economy today so.
I so I'd -- look at our data today and it and it continues what we've called.
Kind of just plow horse economy it -- -- it's moving slow its growing it's benefiting from these technologies.
But it's not benefiting enough and that's why it doesn't feel good.
But I'm -- -- there's -- point out that we are on the wage growth in December we haven't seen wage growth -- something like two years three tenths of an increase.
In December not much again -- you could say this too is a drop in the bucket but.
To the trends.
Well no I.
Hey look we've been one of the most optimistic set -- forecasters.
On the economy and lots of people have been looking for.
My depression or recession a double dip all of these things and we thought all along that we would avoid it so.
These numbers -- -- as a surprise 33 months in a row of job growth.
Wage growth is up consumer.
Debt burdens are down.
There's no reason to expect a recession in 2013.
I also expect great news for the stock market I think we're gonna have double digit gains in the stock market probably close to 20% this year take that we've been -- Dow or.
On the economy.
However.
We could be doing a lot better so we're we're I like to say we're doing fine when I always here's what I hear somebody say we're doing -- that they're fine.
And I know they're not right and that's sort of where the economy is it's OK my Australia got -- so right.
And thank you I'm --
