Market Expert: Jobless Recovery in 2011

" Think it's fair to say and tell me if you agree that 20% unemployment. Is worse. Than a possible trade war. All much worse it's it's it would we've had been in you've talked about it in the run up to this Brian we've had jobless recoveries before. This one is momentous in terms of its magnitude. And it's likely duration. I am sadly suggesting that we're going to dig out of this if we are really aggressive towards the end of 2011. This -- is off the deed it's thirty million women and men who were seeking better employment opportunities. To be in what's called full employment where you you sort of tolerate a 5%. Unemployment rate across the board we need to find 22 million jobs."

" Going through everything you said about what needs to be done this situation. In America's economy. Is the focus in Washington by the administration on health care reform cap and trade -- to top priorities. -- place or they need to re direct the focus."

" Absolutely you you you should have started with fixing the basic economy. What we did is we resuscitated Wall Street we didn't even -- yet where you're in this. -- may be two years depending on your -- we have a reformed Wall Street we've resuscitated it pretty well we've ignored main street. And and and that and that problems that the congress is confronting on health care and soon will confront an energy. Would have been made much easier by a much him domestic economy. Is the entries second stimulus plan or something else could you know I don't calls for -- are going to grow in Washington. I think it's almost a political impossibility to use the phrase second stimulus. That suggests that the first stimulus was was an adequate and people don't like to admit that. So let's call it the US domestic investment -- call -- whatever you want now I am fully mindful that we have to pay for. We have to find mechanisms through the tax structure to pay for we we we have a very appropriate concerned -- speaks -- often. About deficit building through we gotta be careful that. But when the house is on fire. And right now the sort of the analogy you -- in the house is on fire you do everything you can. And I you re prioritized you know I think that's that's number one you establish a specific manufacturing policy. Articulated goals of doubling in the contribution to GDP. Doubling the amount of women and and actually employed in the sector. And then you have to go after the trade issues that we know or imbalance."

" It it is an issue of choices in not what you are going to spend money on. The president's getting ready to sign the extension of unemployment benefits would take them to not a nine weeks in spur some people in some states. But also an extension of the home buyer tax credit an expansion of it is that money not well spent."

" Well the unemployment is is is a sad reality that we have to address that that's death insurance. -- are ready unemployed. Very appropriately for humanity humane reasons we obese people sustenance as we dig out of this. But that is technology hub had the problem is. And I would do everything I could on the east palliative responses to people in great distress. But more than cash for clunkers more than first home buyer credits we need a infrastructure investment program immediately. We have to have some comparable reciprocal. By domestic by American policy. Not unfair not invest in relative to our our trade competitors but imbalance within hours."

" And and and the retailers. Will screen. Right about any kind of -- by domestic because the fear might be manufacturing costs would rise that's been the argument. I think it's time to stop worrying about whether or not we can get it but cheap T shirt. We have on the line to get somebody employed instead -- we don't need a six dollar teacher."

" Well we don't need that one dollar hammers either Brian ended. We crossed the point roughly in 199899. When any benefit to the average consumer from cheap imported goods. Was exceeded. By the cost to the economy from these unemployed women and -- we -- way past that point. And I'm not talking about urine -- day in his personal purchases I'm -- about the federal government's only. The -- by domestic programs are simply attributable to -- to the federal authority the central authority in every country. And again nineteen nations -- found them acceptable. We go and and I raise them is how do you -- and if you have a."

" A road crew. That they are strongly encouraged to by Caterpillar bulldozers over eight -- Well."

" The let me let me give you -- to to really great examples of the bridge that was repaired in Minneapolis. Was built rebuilt with Chinese steel. We we've we're talking about greening this economy with air with wind and and so our. Most of the commodities coming into the country didn't do better being manufactured in China. Yet China insists that in its wind and solar operations it be a 100% Chinese. There are wind farms being built in Texas today using Chinese -- That doesn't quite cut the mustard. So you can't have a national infrastructure initiative Brian. Without coupling it with domestic employment but do we even have the capability in this country anymore to ramp up manufacturing where you're talking about absolutely I mean. We can get and card today hopefully it at domestic car and drive to Detroit and I can find you shuttered facilities. That with a light switch -- date and could come right back on we we have the we have the facilities. We don't have that a lot of the political will. There are The Wall Street Journal had a story on that today on the front page of their website 80000. Empty factories and warehouses in Detroit this film up. You know it that this isn't just me talking or the progressive side of the political spectrum Jeff Immelt one of the finest chief executive in my opinion in this entire country. -- GV he is gone on the record saying we need to double manufacturing. Domestically and doubled the number of women in in this sector. So it's not just sort of the progressive side of the political spectrum as I said. But you know mandating something the government buying American it's a slippery slope and the mandate could expand to a lot of other area that then you have to be cautious mid nineteen nations have already embarked if it's such a slippery slope. I argue for it only because Germany has that the United Kingdom Canada Japan and China especially. And so we sit here and I had this argument with people at the US chamber of commerce -- said oh my god you can't go down that slippery slope it's protectionism. And the answer is you you don't decry the Chinese by Chinese policy as protectionist. Well you know if we started -- you say look we're not starting it we're trailing. Leos an excellent discussion and and I think you hit a lot of interest in points hopefully some people are listening. I think -- I think last Tuesday I think three days ago the canary in the coal mine passed out. Yeah he passed out and died over in New Jersey a very able governor I had to enormous amount of respect and affection for lost. Because the women and men New Jersey you're anxious about their employment. But sure the women and men of Virginia who voted out a democratic administration put in a Republican. But it's not it shouldn't be about Republicans and Democrats that should be a full attention yeah at least thirty million women and men."

" It's gotta be about jobs Leo make up any jobs and jobs and jobs are jobs Leo Henry thank you so much -- thanks both."