Get Government Out of Job Market

" Yes he's been bullish all along and he has been accurate but is he still bullish with a word the government wants to spend even more. Even though the dollar keeps taking hits let's ask him. Brian Wesbury chief economist at first trust advisors and author it's not as bad as you think which is due out later this month Brian good to see you and you know be with you this this problem about the growing. Institutionalizing. Of the unemployed just barge unemployment number are concrete going to get bigger and stay for. Some period of time what do you predict and are we going to be able to finance that we afford this this huge gap of people on the goal."

" Sure you know. It looked job losses are painful life you know it being an analyst sometimes make you should make you seem cold hearted but. Army seemed cold hearted but I I'm not I care about this greatly. If you go back to earlier this year we were losing about 700000. Jobs a month we had a little bit of a pick up in June. Where the improving trend got a little worse and then another one in September but we're on track. To be gaining jobs by the end of this year or early next year it's going to take us awhile to get back anywhere close where we work. But what scares me is now we're talking about all of this government action to create jobs and government always in my opinion destroys jobs for example. If we're going to give a tax credit to small business for creating jobs. And I'm a small business why wouldn't I wait to see if that tax credits going to come eventually so that's going to hurt job creation today. Until we find out whether we're actually going to get better -- I think this is a very dangerous thing I think the government should back off and not get involved in the job market right now. Anymore the economy is healing on its own like it almost always does."

" Yet but we've always as you know the last two recessions we've had jobless recoveries are very slow job recoveries eventually they caught up and you go back in the eighties when we -- out of over 10% that lasted for months and months and months. So -- how are we going to see in this job creation you're talking about words are gonna happen. You know Tom I I don't know how to."

" Say this without standing -- sounding like an old folk here or something but. You know it takes awhile if you get the flu -- you can't get rid of it in two days there's no drug that helps you we wish there was one. It takes ten to fourteen days when you have a recession. It takes a while I mean after the damage is done it takes a while and that the problem is is that the more you try to get it going on unnaturally. You're gonna we're going to slow up that process of healing. The bigger the government look at Europe they have tried for decades on decades and decades to try and make unemployment painless or or create jobs and cut the work week they've extended unemployment benefits to a year you can be honored for five or six or seven years in Europe. And they have consistently had an 8910%. Unemployment rate for for decades and in Europe and that's what happens when you get the government to involved. I wish we didn't have to have pain I but but that's part of innocent wife and and I and I just worry. That we that are all this trying to take away pain. What happens is that we end up making more pain -- we showed Perot we are we facing. What Japan faced the law but lost decade as we now call it actually for Japan has been longer than that are we looking at them. No absolutely not wait as long as we. Remain a capitalist systems in Japan. Gave that up long ago their boom if you think if you think about it in the seventies and eighties was because they guessed right face and I you know we're going to do is we're going to make small transistor -- things were going to make cars were going to make motorcycles. And we're going to -- forum. And it worked for a while but but in the end -- government always loses they can't run the Postal Service they can't run Amtrak. And Japan couldn't run these small consumer. Oriented export businesses. It eventually you need entrepreneurs you need capitalism. That's what the US has going for what scares me is that if we kill that. Then we will have a lost decade but right now I don't think so we haven't passed health care yet. Who knows we may we haven't passed cap and trade tax rates haven't gone up we are still a very entrepreneurial. Very capitalist system. That's what keeps you from having a lost decade all right Brian Wesbury always good to talk to unite to see you economist of -- advisers thanks so much."