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Claims for unemployment benefits dipping slightly to 450000.
In the latest weekly report it's actually good news it's showing little change though in the struggling jobs market.
And former president George W Bush's labor secretary believes part of the problem is what she calls bloated government solutions we welcome Elaine chow.
It's great to see -- thanks for coming in now it went unemployment went over -- -- percents.
It was a conserve free of those are there.
You -- that you -- -- gotta ask didn't you.
I got really nervous and unemployment rate went above 5% and it's unbelievable amount that it nine point 6% -- -- -- okay.
How Long Will it stay above 8% which is sort of the benchmark that the president said it couldn't go above.
Well when the president -- -- with the president's economic own economic advisor.
Sad that if we pass the stimulus bill the congress passed the stimulus bill the unemployment rate would never go beyond 8%.
And not retrospect that was a very foolish and unwise statement because we have seen unemployment -- -- above 10%.
But what's really happening -- that this administration is terribly anti business and they forget.
That business and employers are synonymous.
And that employers are the want to do the hiring and with a tremendous deficit.
That the employer community now see in the horizon for a long time to come.
A tremendous increase in taxes that will automatically take place in January of next year and aid.
Floodgates opening up flooding the -- economy with also to regulations.
And these are causing employers great hesitation.
And whether they should invest for the future and hire more workers frankly -- hoarding their cash.
Big businesses -- -- corporate.
-- the F and 500 non financial companies are hoarding the largest amount of cash over 800 billion dollars.
And it's because they're concerned they're worried about the future and nothing from Ron Washington can mandate.
Add them to create jobs if they have that feeling of -- eased enough uncertainty and it got it right -- -- our current.
And you talked to companies and in fact they say that Wall Street and a lot of big companies have two emotions like agreed our total -- and clearly were not total fear -- that we've seen.
-- in the past but secretary -- Up on the one hand we talked a lot of business leaders who say even business leaders who voted for the president feel that they.
That the administration is really talking an anti business talk.
However -- of them look at what the president just announced such as a 100%.
Tax write offs for brand new buildings and plants and things like that.
And then certainly giving all kinds of tax incentives to businesses at the moment plus the R&D credit.
With -- which businesses complained that President Bush hadn't made permanent now that the Obama administration is taking that a step further.
-- is -- and all -- branch handed to businesses now and a positive step in the right direction.
Well you're right there's great buyer's remorse on the part of many people.
Who voted for change not a doesn't it but like I applaud secretary I'll change it to my question though -- -- -- question let me answer your question.
And that is that many of the proposals that are in the small business bill.
-- are one -- the Republicans suggested.
And the Republicans I've been very -- they would look at I think everything.
That has a chance of stimulating.
Of reviving the economy.
But the one in particular for example.
The small -- bill that the president with Jeff -- recently.
It has a -- provision -- -- that with us inserted in the FedEx.
By amendment that this -- the -- to the small business bill is not what most people want what you have the federal government once again.
Taking equity positions is small business is that the American people want is this play is needed in our free enterprise economy -- helping some.
In terms of creating jobs though which do you think would have a greater impact the kind of targeted we've seen.
Already the president himself said we've already put out as seven rate tax credits so far and haven't really done that much to change the unemployment figures.
In the grand scheme which would have a greater impact on the economy this these targeted tax credits or maintaining tax rates where they are.
I think the first important thing to understand is.
The tax rates have been at this low level now.
For all over the nearly a decade it is the law of the land well we're talking about now.
It's an increase in taxes in January if I doubt that at least eleven in the overall.
Scheme of things -- sector which which would have greater impact on the economy maintaining the tax cuts for everybody or.
Individual tax credits is the president has been outlined.
Stopping the tax increases in January 2011.
We'll be very important.
Because what this administration has been doing it's giving a little bit on the one hand and then -- -- -- With the other taking away tremendous amount of freedom and the free enterprise system they're regulating their taxing it other -- And they're creating great uncertainty in our economy which is a tremendous disincentive to investing and hiring for the future.
Former labor secretary Elaine -- thank you so much for joining us here -- box -- -- yanks.
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