austan, in fairness. he spoke about it recently.is issue, he's been open to finding a permanent solution. but when you have a president who didn't do it when he could have in those first two years, la teen yo and his panic voters don't want to be duped twice. they care about economy and jobs and health care and whether they can afford their kids' college tuition. they hook at this economy and say, how did it work under president obama? not well. >> you would concede that mitt romney said they're doomed if they don't get the hispanic vote. >> he has spoken consistently and regularly about immigration issues. but he has also talked about the need of having an economy that's growing. it's an important issue, tone is important. so that's the only issue, a referendum up or down on that, they also care about the economy. i think he has a strong message on the economy. >> we heard governor jeb bush speak this past week. he's deeply worried about the fate of his party. it will be doomed if it connect with latinos. not just mitt romney. it's

we can get there a cheaper way or more expensive way. >> austan the politics of mr.rible. >> if you're going to hold a monetary together without a fiscal union it's going to involve some kind of subsidies from countries like germany and the northern european countries. if they're counting on holding their monetary union together for money from the u.s. and china, i don't think that's a great future. >> rick -- >> austan, are the germans going to hold it together, the finns going to hold it together? how does this play out? from they have to hold it together. >> do you think that's what they end up doing? >> i don't know. i've been publicly probably more pessimistic than most, but i wish the skeptics hadn't been getting proven right as this thing was going along. i think it's going to be hard as europe is going to decide how bad do they want the thing to hold together. if they do it's going to cost money and we know that's true unless they want to have massive labor mobility or start running inflation, all of which seem pretty questionable politics in that circumstanc

joining us from chicago austan goolsbee former council under president obama. university of chicago economics. douglas holts eye eicken. did president obama create 4 million jobs, did he? >> no. there is more lipstick on that number than on sarah jessica parker quite frankly. last month 1.4 million fewer jobs than there were in december of 2008, the last month of the bush presidency, what's even worse for those who did have jobs we have seen no income growth. the median family income is down 4,000 dollars. overall disposable income is growing barely at all. enormous number of people out of work. he hasn't created jobs those who have them still not doing very well. >> mr. goals buy you say? >> the 4 million jobs so ever the last two years. what doug is talking about mixing the big drop from the recession and then six the recession ended they have added more than 4 million jobs. that's over the last two years. i would just say that's the way each of the candidates running for re-election, including ronald reagan, george bush, and others, that's the way they count

. >> that was former white house economic adviser austan goodsbee and financial problems are killingitement here in the u.s. the dow jones opened in the red and stayed there most of the morning. s&p down, as well. the nasdaq up by 7. cnbc senior senior analyst joins me now. if it's not greece, it's spain. there are fears of italy potentially, as well. portugal. the global markets avoided a kas to to fee but how worried should investors be here at home moving forward? >> thomas, it's interesting. the u.s. is holding up relatively well come paired with the rest of the world even than china. europe as you said dodged a bullet. the least worst results in the election. they run out of cash roughly in july. spain is an epicenter with borrowing rates above 7%. the real issue is can the europeans as a continent carve out a deal in which they become more tightly knit, not just in monetary terms but political and fiscal terms? that is the big question and the only solution that drives them towards some resolution of this crisis. >> and again, people here at home need to understand this impact

and yet i hear larry summers, and i hear austan goolsbee, and i hear paul krugman, and i hear joe stiglitzall of my colleagues, talking about how we need to stimulate the economy with more government spending. government doesn't create resources, it redistricts resources. redistributes resources. to people who didn't produce them. it just makes no sense. state governments, too, look at what's happened to my home state. and forgive me for being a little cheaf fistic here, but i'm from cleveland, ohio. and in 1972 cleveland did not -- ohio did not have an income tax. we had more fortune 500 headquarters in ohio than any other state in the nation. we were the booming state. and all of a sudden they came in and west virginiaized my home state. [laughter] i went back to cleveland. my mom and dad were born in cleveland, all four of my grandparents were born in cleveland, we're all up there in the cemetery, i went and visited my family and went and saw 'em all, and then i drove around cleveland. have you seen cleveland? eleven states in the last 50 years have introduced a progressive income tax.