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Brown University Visiting Fellow Davis Wyss on the outlook for the job market and the debt ceiling debate.
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Above 2% joining us now is economist David -- And Brown University visiting fellow and David good to have you with us let's start -- these numbers.
A lot of people were sort of dismissing this 155000.
Jobs -- what's your reaction.
That's about what we've been averaging for the year so that's not a great surprise it's little stronger than we expected originally.
It's just about exactly what you need to keep the unemployment rate -- -- and that's all we're doing.
All we're doing but at the same time we're looking at over 3% growth in the latest quarter reported here.
What's your outlook for this year how strong do you think they can get our we is prosperity -- hand.
Well we're looking for around two and a quarter percent growth this year which should be pretty close to what we had in 2012.
Nights I think when we get the numbers -- That's not a great number but probably a little below what we think of -- the long term trend that certainly not a disaster.
Well and also be significantly ahead of 2011.
The trend even if it's flat with 2012.
Wouldn't be altogether bad.
We we also have a debt ceiling battle it looks in prospect senator currents.
TARP they may have to shut down the government.
-- -- You know I'll like -- thing about the debt ceiling.
Debater budget battle heavy water college back in summer of 2011.
We saw thousands of points 2000 points stripped off the Dow.
What do you think.
But could be a real problem the last big when we had was 9596.
That was certainly a disaster.
Especially from Republican standpoint.
I don't.
It's not the right way to do things its previous to -- way of trying to manage the budget he should manage the budget not manage the debt ceiling.
Well that's easily sad and I couldn't agree with you more.
But the fact is.
This House of Representatives -- the last vestige of Republican is with at least when it comes to power in Washington right now.
-- role overplaying their hand I think expectations are significantly.
Well beyond the reality.
As to what they can accomplish our -- -- raw.
The House of Representatives passed or -- -- -- all spending bills.
But a -- adoptees the fact of the matter is that doesn't mean they get a budget.
By the not getting a budget that's for sure.
But they're not even trying very hard frankly they're they've got a lot of ideas none of them has gotten through the house that would make any real difference is there anywhere in the entitlement programs while the senate hasn't passed the budgets -- you know since 2009.
Over three years ago.
The president has added five trillion dollars to the national debt as a result of the fiscal -- be allowed another four trillion.
Over the course of the next ten years instead of 22 trillion at the end of his.
Time in office we're going to be looking about 26 trillion dollars.
In debt thank you very much mr.
Obama.
-- what in the world is the antidote to the -- the to the toxin that he is spreading in Washington.
But the basic point is that American people have to be convinced there's some tough medicine.
You've got to have cutbacks in the entitlement programs we're spending way more on -- and we can afford to spend.
Unless you're willing to go to European style tax rates.
Well let let's let's set aside the European style tax or it's just for moment because were.
What -- we -- and I -- -- step toward that this this week.
The reality is he's never -- -- I'm sorry.
You've never lived in Europe.
-- over there and you know I used to live there on the -- and -- now.
I've -- that it got a lot -- -- is David that's a crazy thing to say but nonetheless because I can read all about your but it is -- web place.
Let me ask you this if you don't think that the Republicans during -- thank you think the president cannon is there any way in which we can get.
Get to that point.
Well that the Republicans have got to have a strong stance somewhat they think needs to be done and what they're willing to vote for.
And so far we really haven't seen that on the entitlements you've got our return to if -- may.
President Obama.
Who is responsible for the government what would you have him do.
We need to have a strong proposal and I thought we were starting to see that to cut back on for example escalation of Social Security payments.
To make some real changes -- Medicare that would allow reduction in cost inflation at least.
And try to get things under control there's only four programs account anymore and its defense Social Security.
Health care and interest on the national debt.
If you eliminated the entire rest of the -- of the government.
Arguably good idea he still wouldn't balance the budget.
Well David we appreciate it let's hope that we get lucky this year David -- thanks so much for being -- -- up next.
