You're watching...
Harvard Economist Jeffrey Miron on what is needed to boost economic growth and job creation.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
And one of the reasons for the jump on the Dow today was the sudden drop in jobless claims.
While that's good news the markets and the economy have another big headache right now it's called Washington.
With me now Harvard economist Jeffrey Miron.
-- -- to CEO -- as always looks -- things legally weekly jobless claims numbers because it's getting some attention some buzz here they were down 5000.
To 330000.
That's the lowest level and I believe two years.
Pretty pretty impressive.
Is this a trend.
How I think it probably is a trend I think we'll see -- all that continual.
Improvement in the jobless numbers will gradually see some improvement in the unemployment rates.
I don't think it's going to be really fast I don't think we're gonna see overall growth of GDP.
Really speed up everything seemed to suggest we're gonna model along about what we've after -- last three years or so is the new normal.
Which is.
No better than a recession black did not nearly as fast as we had.
Normally expected what is part of -- -- due to Washington because they can't seem to solve any of the problems in front of them whether it's sequestration or the debt ceiling.
Why certainly things about Washington's policies play a big role.
I think that the economy is worried that the level of taxation is gonna have to go up and up an -- Unless we make significant reforms entitlements I think lots of the country is where they were gonna get lots more regulation and and various forms.
And is from a second term Obama administration.
And that the emphasis is going to be on redistribution.
Not on trying to choose policies which help from out of fast growth rate.
And so -- -- in my judgment that's why yeah.
What you know congressman Paul Ryan -- so famous for coming up with budgets that people and reject because he's trying to save money and not redistribute.
I was out today with his he's coming out of his own budget in a few weeks which is actually gonna.
Get rid of the deficit and -- -- in short order his previous budgets have done -- about thirty years this would do in about ten.
Here's what he had to say to day the house he says will not consider another debt ceiling increase unless the senate passed the budget.
We're not -- just keep raising the debt ceiling either.
-- seems to me indicated there will be steep cuts ahead.
What's the chances -- that -- you think.
Well I hope he's right but I fear he's wrong I think that -- Current mood of the country is more sympathetic.
To the president and the democrats' perspective which is that we don't really have a serious spending problem we have a -- spending problem.
We can deal with it a little bit -- and how raise taxes on high income households a little bit more and that we don't have to make fundamental -- In entitlements.
I think that's wrong I think we do have to make very substantial cuts in entitlements we should make substantial cuts in many other components of expenditures well defense -- non defense.
And that trying to address our long term fiscal situation with -- higher taxes is just gonna destroy the economy.
But the Democrats -- beaten the drum on this already Nancy -- -- anybody you listen to it from that side of the house is really talking about higher taxes look.
Republicans and conservatives in general like to talk about the power of economic growth.
Could robust growth that a lot of people think they're beginning to see the signs that could that.
Keep us from having to cut entitlements from having to cut Social Security Medicare Medicaid is there any chance we grow our way out of that problem.
I don't think there's a very good chance of growing our way out of the -- certainly faster growth helps.
Hey if we get back to 3% three and a half percent that's a big benefit but if you look at the projections that CBO has been doing for the last you know.
Decade they assume that we're gonna get back to normal 3%.
Per year growth and yet they still show an exploding debt so.
Faster growth is not enough you absolutely have to in my judgment based on existing numbers cut entitlements and -- partially have to cut them a lot.
Nobody wants to hear that and that's why we don't seem to be able to solve it.
Well my view we've made too many promises to too many people and we're gonna have to come back a little bit Jeffrey thanks for coming on tonight always great to see you.
My pleasure thank you.
