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AEI Resident Scholar John Makin, and former George W. Bush Advisor Brad Blakeman on the outlook for jobs.
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-- Right Wall Street as we mentioned cheering today's jobs report.
But is is this report worth celebrating or is it just hot air with more.
John Macon resident scholar at the American enterprise institute and a former US treasury consultant and Brad Blake -- A former advisor to President George Bush.
-- -- I guess spread -- with you would you make of this report good news bad news.
I think it's horrible news when you take.
The job numbers that the ticked up to seven point 9% unemployment and growth anemic.
But you know it's it's all about policy Jerry let me give you an example the medical device tax which is part of obamacare has kicked in -- January.
2.3 percent excise tax on sales it's killing companies like a small company California named avenger.
Who's got a -- that's gonna say eighty to 90% of leg amputations.
-- they -- profitable yet they're hit for this tax as of today American companies.
Innovator to learn they are not -- one million jobs wouldn't talk about this job's report because this hits every American you know.
The rate seven point 9% as we just showed you that's higher than when Obama took office.
And really just got a report.
Last week about GDP in the fourth quarter actually being negative down a tenth of a percent gifts.
Well it it's pretty much businesses as usual out there.
The the numbers are mixed.
As you say we had zero growth in GDP of the work courtroom -- Jordan 50000.
-- must millions -- you wolf this is the worst recovery we have ever seen in this country the worst.
Business is I'm talking about the recovery in business business as usual in the recovery -- -- been going on for four years so I'm kind of used to it but.
I -- that's that -- meet tepid.
I give I give the I give the jobs report -- B minus.
The market like did.
I think a lot of professionals are uncomfortable as -- was saying about we're where the stock market is.
Here's here's by here's my take that we had.
A lot more hiring in the fourth quarter and this month that would then what would -- sense given the underlying path of the economy.
I think there are a lot of employers now -- and I wish I hadn't hired.
People are getting more taken out of their paychecks when a lot of fiscal drag so we're gonna see a slowdown.
And I think that the hiring increases are gonna slow and I think we'll probably have a negative quarter by the second quarter when all these.
Tax well you know what that means cut in the technical definition of a recession two consecutive quarters of negative GDP growth.
Once you know get into this for.
Yeah I mean every every year it slows down in the second quarter and that I think that's probably gonna happen here.
-- -- -- But let's dig a little deeper into this report.
-- I think there are things that you keep expecting to get fixed that never get fixed like the fact that people who -- long term unemployed.
This never goes away the number is static it remains at the same highs we've seen.
And then the job growth and does happen it's not the big companies doing it it's the small companies doing at the very people.
Then that president Obama's administration doesn't listen to they didn't put those folks on their jobs council which they subsequently disbanded.
-- it it's the big companies we're not really supporting them Brad TU.
It seems to me that in these kinds of problems get ignored and are being fixed.
At absolutely the fact that it's become the new normal you just hit.
The nail on the head Jerry that we become numb and and we we don't challenge.
The people who were in power.
-- to to actually provide results you know Bill Clinton said it best there's about a trillion dollars just sitting on the sidelines of people who have no competence anymore.
In not only our government fixing problems but they're able to do it.
So -- we what we need to do is hold the government's feet to the fire the Obama administration house the senate.
Because they are direct responsibility.
For why we've seen such anemic growth and to save it to somebody who's looking for job.
It's coming it's coming four years it's coming -- it should be unacceptable.
John I what she did talk to some of this participation rate.
Labor force participation rate issues we get a full screen -- they show.
Among sixty year olds it's growing the labor force participation rate among people who might be thinking about retirement.
-- actually -- We're actually borrowing is the more people who -- in that age category.
Are actually working now this -- -- everything you would think is going on and certainly the message we have the White House which they say hey boomers are retiring everywhere.
But it's not happening what's going on.
Well -- you know the and -- right a lot of people had to put off their retirement plans because.
The typical household lost a lot of money with the stock market went down -- their house is worth less than it was and so those retirement plans go out the window.
They're not sure about there.
Pension and so that's another reason they have to keep working so yeah it's difficult.
And the participation rate among those over sixty is gone up.
And so you've got have you got an underlying problem that did isn't gonna get solved.
With macro policy.
And and until we start could consistently growing it's going to be going to be difficult.
We'll have -- together -- -- -- Brad do you I don't think the president has a solution for this it looks is Johnson -- like we're gonna go into another recession here.
And I don't see the president saying -- -- any solutions for anything other than funding -- Energy.
That's right and he believes -- the market will repair itself.
And -- it well if he had his way Jerry.
He would have another huge stimulus package for the Republicans will not go along with the stimulus package because it's been a disaster in the last.
One the promise reduction in unemployment below 6%.
You know we have a backlog of people who are joining the marketplace and that's why you're seeing the numbers take up is because we can't catch up because people are staying in their jobs.
Well Janet -- Brad thanks for coming on tonight great job it's been a fascinating day in the markets today thank you so much.
Thank you.
