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Last yeah we're joined now by commerce secretary and -- law.
secretary thank you very much indeed for joining as.
My pleasure Stuart you'll colleague Christina -- said look this is the most positive news to date on the economy.
Go ahead -- make your page.
Well we're very pleased by this news it's perhaps the strongest turnaround.
Of any recession in recent history.
But the president and the administration will not be satisfied until we actually get more people working.
Which is why today the president announced a series of tax cuts forced me small and medium size businesses that would reward them.
For quickening the pace of hiring a tax credits for hiring new people are offering get more.
Hours or raising wages.
And so this is something that the Congressional Budget Office the nonpartisan arm of the -- -- that is the most effective way of incentivizing and bringing on new hiring.
And has also been supported by businesses so we're responding to what the business community is saying that point.
But look you you can't spin this as -- you really rapidly recovery from recession because all of the stimulus plan.
Look in the last three months of last year in every month jobs -- lost even though you've got a five point 7% growth rate.
The economists around this morning -- a -- that was inventory restocking.
We've had an economist on this program says look this current quarter -- the -- -- in you look at five point 7% growth rate you'll get maybe one and a half.
A cent growth.
I had -- it seems like you've got to spin this positive because the underlying news is negative.
Well no we're not saying that this is the result of the stimulus that part of it is but it's that part of the growing confidence of the business community if they were simply re stocking inventory they would not have to restock it to this level.
But it also this figure reflects.
Investment by businesses in purchasing equipment.
It's technology computers if this was simply restocking low inventories you would not have such widespread activity as we have seen.
But nonetheless that president is not satisfied with -- the president is not focusing on just or rely on these numbers that's why.
Today and over the next several days and weeks we will be announcing a whole series of measures to provide tax relief.
Which the business community has been calling for.
Tax relief tax cuts for businesses especially if they hire additional people or increase -- hours.
Their workers are engaged in.
Or if they're giving raises to those employers -- got a lot of companies where we know that a lot of the companies were planning on doing this anyway but this is an incentive for them -- isn't that activity.
Our own Charles Payne knows a thing or two about small businesses he's got a question about these tax -- -- -- -- child's mind yes sir I sure you know while I remember when President Bush did some similar things and that's a small business owner.
You know the incentive to buy equipment and they get 50% off its its intriguing but.
How about now buying it and keeping all of the money in my pockets of particularly when you talk about raising.
Salaries and things like that -- -- the administration isn't focused on demand because that's a small business owner at the end of the day I need to end the man to really make money.
That's why -- tried this incentivized that demand with parts of the stimulus package -- the more people that are working in America.
That means that they have money to spend to buy the products that you and other companies make we know that we have to increase consumption.
And the way to do that is to have as many people working as possible so that they have that money that -- the shopping malls eat in restaurants remodel their homes purchased cars.
And to the extent that we can hasten that economic recovery by providing incentive for companies that probably we're gonna hire anyway.
But having them higher as quickly as an article and giving them an instant tax credit.
Either so just saying that with respect to jobs but the people that are working right now how about a they were able to keep more of their money and they had that confidence maybe that was sparked it could that the animal spirits that are missing and I have not been sparked by any of the things you've got -- tried so far.
Well actually a third of the stimulus of bill from last year wasn't that a reduction in the income taxes.
That individuals pay.
95% of Americans are in fact paying smaller taxes less taxes today than they were a year ago thanks to the Recovery Act in the stimulus act.
That has pump the money into the system.
Which has resulted in.
The economic recovery that we've had not all of it.
And even economic advisors to Senator McCain when he ran for president and independent economists have said that the stimulus the tax cuts for middle Americans 95% of Americans has in fact.
Help stimulate the economy and put more purchasing power flowing throughout the economy.
And resulting in in.
Better business climate.
If you if you'll writes it's about a business climate the money is flowing what shall -- cast economic growth -- -- the first six months of this year.
While we believe that the recovery will be slow that's why the president is most focused on.
Trying to provide incentives for companies to hire as many people as quickly as possible.
We know that with the growing confidence does this coming out of -- -- necessary effect on us like we got to make sure they -- is coming down as possible -- right but coming out of previous severe recessions.
That was -- that -- rapid expansion of the economy over a long period of time.
This time we've got a very slow recovery.
This is a slow recovery that you're gonna see a worldwide.
And it's it this took many many years to to create it wasn't an overnight situation it's gonna take a long time to get out of it but were encouraged.
But the president is not focusing just on -- Better than expected numbers today.
And that's why he is on unveiling a whole host of packages incentives and programs are lost you we've -- a second really all I can -- -- flat out of time Soledad thanks for joining us this all right we appreciate it thank you.
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