economy. we begin with alan kruegar, chairman of the president's council of economic advisers. >> the president made clear today that these going to lay out the components of his agenda, how he strengthened the elements of the middle class life-- high-quality jobs, affordable education, affordable housing that's secure, enable people to save for retirement, provide ladders of opportunity into the middle class. he made clear today he is going to use ever lever he has at his disposable. he is going to seek legislation. some things are much easier to do with cooperation of congress. but he's also going to use executive actions. he described a very important one to connect all schools to high-speed internet within five years. and he's also-- and i think this is important-- going to use his convening power as president to call on c.e.o.s to urge them to give the unemployed another look. too many long-term unemployed have been shut out of the job market through no fault of their own. he praised some

find out what's really happening to the global economy. the global financial headlines kaiser reports. mission free accreditation free transport charges free. range month free risk free studio time free. old free broadcast quality video. free. good laboratory was able to build a most sophisticated. fortunately. mission to teach me. this is why you should care only. fly from a. terrorist operation inside. now. allegedly joined by militant morsi supporters have been stepping up attacks on the military we've got the latest for you this hour. over one hundred people meantime a feared dead in overnight clashes in egypt as the muslim brotherhood claims supporters of the ousted president a big targeted by the military with a shoot to kill policy bus. germans are showing their anger to wall it's the n.s.a. spying program on their support towards whistleblowers edward snowden and bradley manning with demonstrations across the country and over forty cities join me peter all of the for more on this in a few moments. this conservative promoting push o

economies and so it's not really complete where it's around the table the g twenty the leading economies of the world and it's proven that it can take decisions particularly in two thousand and eight no and so i think that it's actually a sign that we're getting back to business as normal you know the world economy is not falling off the falling off. into europe it's not collapsing we have slow growth stagnation in europe we have and the u.s. and the u.k. picking up we have economies that were doing very well until recently struggling particularly in places like brazil and india as rising interest rates mean that their dependence on external finance causes them some problems i think actually normalizing. and the fact that the g twenty is a pretty orderly place that it should normalization. normalisation and other things going on with the normal things but still we think that we think that the global economy is going to move out of what we call twilight this stagnant level of growth that's not fast enough to reduce unemployment into what we call daylight which is the rate of growth that i

that accumulated debt is an economy that becomes the torah but the short term priority. is growth and job creation another topic on the agenda was greater tax transparency of multinational companies the secretary general of o.e.c.d. and helga ria presented the organization's plan to close loopholes that allow corporations to avoid paying billions of dollars in taxes receipts to the government investment in social policies easing job creation will be among the highlights at the g. twenty leaders summit hosted by president vladimir putin in september the summit will hopefully be marked by seeing russia dealing with accelerated growth issues the ministry of economic development anticipates the economy will be fueled by investment and so will expand more rapidly in the next two quarters. according to russia's federal service of state statistics russia's economy grew by one point nine percent in the second quarter of the year this is an improvement from the one point six percent growth it posted in the first quarter but still well below the best case scenario of three percent

our economy. it would be nice if it were larger but we could focus on improving the parts that we do have. host: there's an article this morning about our manufacturing, particularly bout 3-d printing. it says moving past paper. what do you see as an economics reporter? where's the growth area overall in manufacturing? and is this part of it this 3-d printing? guest: i know nothing about, it's pretty incredible. i think it shows the importance of investing in rd. i don't know which parts of manufacturing are thriving. i think one of the sad parts about what manufacturing revival we are having is one of the reasons we're having is that wages fell sufficiently in our year that we are now beginning -- and wages rose in china and other manufacturing nations so now our wages aren't quite competitive but getting there. that's not really great for the income of the people in the area. one of the huge -- one of the primary areas of our manufacturing sector really is the auto sector. so that's reflected in

lipstick may tell a tale on the economy.r says when money is tight women indulge in small luxuries instead of big ones but lipstick sales fell during the last recession so maybe we kiss this indicator good-bye. and from lips to jaws. in the movie amity island was packed. more people vacationing in the water and more shark attack. since the end of the recession the numbers have been trending upwards and there's the hot waitress index. illustrated by "two broke girls." >> please i really need this job. we lost all our money. >> reporter: the hotter your waitress the worse the economy. why, because in boom times beautiful women are more likely to work as promotional models, product reps and other jobs where hotness helps. ridiculous? yes. but it gets worse. sugardaddy.com surveys its clients on the economy, the dating site that pairs wealthy men and women with attractive sugar babies. in a survey those daddies are predicting a downturn. if they start buyiop buying unde should be worried. >> thank you, we're here every saturday

is not a truck ok austrian economists when they teach about economics they explain how the economy is organic it's not like you just put gasoline in a car and then turn an engine on and that's how it works there are always organic bits and pieces of the economy that are fluctuating that no central banking share could possibly imagine could could come into the economy could come into play the problem here is that ben bernanke he thinks that if you just put money into one end of the economy that jobs come out the other end you know this is the failure of stimulus and keynesian economics certainly and we saw in two thousand and eight he was actually taking billions of dollars hundreds of billions of dollars from one sector of the economy he was blowing the money into the primary dealers in other mergence the facilities and then he realized that commodity prices were exploding and then he had to pull it out of another so he started actually selling t. bills during the summer of two thousand and eight and i think that's something that some of the austrian economists saw as a precipitated p

find out what's really happening to the global economy with my. no holds barred look at the global financial headlines kaiser reports. good afternoon welcome to prime interest i'm bob english in washington d.c. here is a story we're telling today the monthly jobs numbers came out this morning in the media outlets must be channeling charles dickens because it was hugh the best records for the worst reports according to the bureau of labor statistics we gained one hundred ninety five thousand jobs in june beating expectations but most of the gains were from. quality part time jobs so what about full time jobs us two hundred forty thousand of them were lost vaporized and there's one more number in the report and this one is even more important because that's the one the fed is using to judge when it will wind down its money printing quantitative easing program and this statistic the unemployment rate remained the same at seven point six percent the fed wants to see it head down to six point five percent of eventually and that's why the markets are so

economy is to agree. there's some bubbles are in there, maybe housing is something to watch, maybe certain credit markets are out of whack. we've got this. after all, this lon long historf solve the mystery of how to corral these forces that have caused booms and busts over the course of history. well, let's fast-forward to august 9, 2007. this was about a year before what most of us think of as the crisis, but for the central bankers this was the beginning point. it was a thursday. the governor, the president of the european central bank was on vacation on the coast of france. his phone rings about 7:30 a.m. it's ahead of the market desk of the ecb in frankfort. we have a problem. so the problem was that the major european banks had lost faith in each other. they lead very heavily, bought a lot of the subprime mortgage securities and u.s. those are all on their books and those he could return that were not worth as much what people thought were. things that were aaa were not at all to play. so what happe

the economy and the energy economy nosedives. denver was not an isolated economy. it's not that they were going to do poorly like some others were going to do really well. they got together in the business leaders said, what if we worked on this strategy that brought companies to the denver region. and we will be agnostic about whether they locate this in denver were in one of the counties. that is a bit like lindsey graham and barney frank having a taxation agenda that they can get all get behind. this kind of thing doesn't happen. but it does happen in denver. and the politicians always going on in the the business community and they said to the politicians, are you going to get on this train, or are you not. and that was the next big initiative, which was to build a first-class transit system in denver. give people the impression that denver was a world-class city. that was successful. the example that they give for the new federalism is that political collaboration and cooperation is possible. it is not particularly heroic. it involves one mayor goes out for di

the economy, the energy economy in colorado nosedives in the 80s. business leaders got the message really quickly that denver wasn't an isolated economy. it's not that denver was going to to do do poorly played over or centennial are some of the other counties were going to do really well. so they got together in the business leader said, what if we were, business attraction strategy that brought companies to the whole denver region and we are going to be agnostic about whether they locate in denver or if whether they located one of the towns and as mayor williams will tell you that is a bit like lindsey graham and barney frank having a taxation agenda that they can also get behind. this kind of thing doesn't happen. but it does happen in denver and then the politicians saw what was going on in the business community and the business community said a to the politicians are you going to get on this train or are you not? the next big initiative was to build a first-class transit system in denver to kind of give people the impression that denver was a

>>> this sunday, the state of the economy. and will washington make it worgs with another partisan showdown? the president on the road again to sell a second-term economic blueprint and to blame republicans for standing in the way. >> you can't just be against something. you've got to be for something. >> but what is the president's record on the economy? and what is his agenda? plus, will washington go to the brink of a government shutdown this fall? this morning i put these questions to the administration's point man on the economy, treasury secretary jack lew. plus, a showdown this week in the house over the nsa's controversial post-9/11 surveillance program. >> passing this amendment takes us back to september 10th. >> a measure to shut down the program was narrowly defeated. but where does the debate go from here? will there be more privacy safeguards put in place? and the snowden saga. i get the latest from the chairman of the house intelligence committee, michigan republican congressman mike rogers. and our political ro

has that helped the economy? >> it brought longer-term interest rates down but the fed's studies that suggestion the easing is unlikely to have a large effected on the economy. the economy needs an improvement on business confidents that could come better from fiscal policy than monetary. >> there is not much more the fed can do? the rest has to come from washington? >> removing the gridlock and fi fiscal policy is more important. >> your book is talking about financial i'm banbalances and a of it you say has to do with history over politics. >> right. >> where are the pitfalls? seems like we're at an inflection point where this knowledge of history might be important. >> when politics don't keep up with economics, politics stumble and it's the large debt builtup and the political institutions don't seem to be able to control it. we need to make change if we want america to remain on top of the economic power list. >> why has the political system not been able to keep on top? isn't that their job? wasn't that you

>> i think our role in the consumer economy. we were talking about the consumer and the economy. i think we need to think about how we as people in the economy, want to keep on buying. want to keep on doing stuff and as i talked about, media and the future of media, what it will look like, it will not look like this in ten years. >> thank you both very much. up next "on the money." a rare conversation with former treasury secretary todd paulson, and the grammy award-winning cellist, on the changing music industry and arts education. >> welcome back to aspen, colorado, as the market s speculate on the federal reserve's next move, i have with me hank paulson. five years after managing the financial crisis, he weighs in to fed pull-back and washington's deadlock and the future of the economy. >> ben bernanke has done an excellent job of preparing the fact, for a fact, that the extraordinary intervention by the fed and low interest rates will have to end. as i look at it from 100,000 feet, what the fed has done has been very important. over the last five years, we've had a very neces

this economy is needed to blossom. when i talk to business people they say to me we need confidence, that the rules are going to be static, consumers say to me i need confidence, i buy a house and i am confident that the system will remain status and knocked dynamic. i thank you for your service and trust that we will help instill the confidence to augment or supplement the good work you have done. >> thank you. >> the chair recognizes the gentleman from virginia, mr. hurt. >> thank you, german ben bernanke for being here today, thank you for your hard work. i represent a rural district in virginia, one that has not seen the same economic growth other places in this country have seen. we still have a places in our district where we have jobless rates that double digits, we certainly look to washington to adopt policies that will make it easier for our businesses to succeed, families to succeed as opposed to making things more difficult. in listening to your remarks you talk about systemic -- adopting policies that go t

this is very helpful to the economy. >> big tax cut for the economy, austin? think you guys are getting the order mixed up. growth leads to less spending because we have the stabilizers that will allow tax revenues to go up. you have to operate out the improvement of government spending as a share of the economy that is coming from growth. i don't think it's causing it, most of the private forecasters are saying that the fiscal drag is more than a full percentage point off of gdp growth this year. and that is where i basically think it is. >> austin, you have got just -- before i go to art. you have two trillion plus in spending cuts. the caps that were put in place in 2011 and the sequester, about which president obama had nothing good to say today in his speech, in fact he criticized it repeatedly. i will agree with you part of the way, austin, but the cyclical recovery, even though it's slow has reduced spending and increased revenues and deficits. >> true. >> i have to say to you, policy measures are as tight today, in some sense, you will go back to the k

the economy pays or the banks the banks position is save us not the economy so the government says ok we're going to do it we're going to treat america essential like the international monetary fund has treated third world countries for thirty years we're going to impose austerity the way of solving things the only way that the banks think is to treat america like greece to treat it like europe is treated italy to impose austerity and really tighten the screws nobody has found an alternative to impoverishing the economy to pay the banks something has to give so let's talk about what might give here i mean before the bust as asset prices were rising families were taking on more and more debt and we've seen the leveraging since two thousand and eight what's in store for the average person not necessarily the. banks but in terms for the average person. well unemployment is still pretty high the average family is pretty debt ridden now you have student debt rising. a lot of families are drawing down living off credit cards to breakeven they're not able to get mortgage loans so they can't

economy. very focused on jobs. we have not been as focused on jobs. legislation that can produce jobs, much of it as lynyrd and has not had an opportunity to move forward. i just believe that in the final analysis art could york will be lot of them applauded and will need some help from the policy makers in terms of working together to us instilled confidence. confidence is needed. think this economy is ready to blossom. but when i talked to a business people they say to me, when -- we need confidence. many to have of the rules will be static. consumers take a minute conference. i will buy a house. i am confident that the system is going to remain static in not dynamic. i think you for your service and buttress the we will be a will to help instill the confidence to augment and supplement the good work you have done. >> thank you. >> the time of a gentleman has expired. the chair recognizes the gentleman from virginia. >> thank you. >> mr. chairman, thank you for being here to it. we thank you

time to cut dicits is when the economy is in recovery as bill clinton did in 1990ss clinton got economy to surplus in context of high growth, you have a soft economy, that is a time to have defkit sit spending becae you need stimulus. john: mark, respond? >> what we're suffering from today is imprudent fiscal policy, what the government is doing with their irresponsible welfare payments with interfering with business and so forth. is keeping the private sector, which is the majority stakeholder that should be the focus here, with employment and so forth, they are the key. we have to really encourage. john: what abou don'to poi -- bo point? >> tre are many examples in private sector where banks, companies i was a consultant for ibm they went 3 a difficult down size -- through a difficult down siding in 1990s they fired a quarter of their workers. a hundred thousand workers, like at ibm today, united states, same situation. if we adopt austerity, prudent austerity we can turn our country and blossom like we've never done before. john: bob, when you say now is not the time, when is the tim

the chinese economy to accelerate a bit mall and avoid this three percent. sanaa well there have been chinese whispers that the government is planning to implement a huge spending package to boost the country's gross rushing out a new route ways and infrastructure the government also intends to dig itself out of debt most of the country's risk comes from having high death and bad loans now all of this sounds bad it's nothing compared to the situation in europe where the year area is expected to contract and over in the u.s. growth is expected to reach just below two percent and china's spello emerging markets are expected to go to five percent the fact remains that while time is some point five percent growth may be ruffling a few feathers most of europe can only dream of being able to fly i. want to talk more about china and its place in the global economy with james corbett the editor of the corporate reform website to serve thank you for the time to speak with us some economists as you just heard in the report there is the china slowdown as a signal of a

to four for the economy to grow. economy grows is supported by offshores taxes are lower and people are investing huge amounts of money from offshore since the mainland or on the quantum is and this supports the economy grows you for taxes will be put. where will they are the mainland like in russia where we have twenty percent corporate income tax eighteen percent tax etc etc you for taxes across the world will be the same level economic growth across the world with much lower interest in this surprise for dear dear friend but the gain doesn't mean that we should. support existing coffers we should treat them as normal a way to put money in but we need more transparency need to understand what's worth and i mean is the future of offshores i think it will be used in the less intensive way it will be more transparent governments will know who is holding money offshore in real try to tax more than ways to get the can can say it was the losses but the governments will not write to you could date overflowing and so this

position is quite poignant for an economy isn't it we. talk about the mortgage jubilee with economist steve king later in the show and jamie diamond can't seem to find its share of that isms of the hot seat j.p. morgan is about to shell out a few hundred million and a settlement with the federal energy regulatory commission that would be for allegedly manipulating energy markets in california enron style barclays already battle for four hundred thirty five million dollars and a similar settlement for j.p. morgan in what amounts to well just one sixtieth of its twenty six billion dollars and revenues reported last friday no word yet on how much of it actually profited from allegedly bilking american oil with the subprime is back the consumer financial protection bureau just strengthen mortgage underwriting standards which we don't fund fall under the new rules don't worry that's because the guy who helped write the rules that the c.e.o. to be just went private and he started a company that will service the very old regulatory body you know

we think our economy is producing the lowest potential and monetary policy is trying to help the economy returned with potential and i would be sustainable growth that we can achieve their armies we given this experience and it's important that we know what is going on. the relationship is a complicated one and on the one hand very low rates for sustained period of times and risky behavior, other risky behavior. we're trying to address that are oversight and monitoring and that is our first line of defense, certainly for dealing with the sorts of issues. as you point out, it is a simple relationship because you've economy is also weaker credit quality and less funding opportunities and more delinquencies. our strategy is to try to focus on inflation and unemployment using monetary policy and to pay close attention to any developments in the financial stability spare and using the supervisor tools that we have is the first line of defense. >> i appreciate that. the reason i asked those questions is because there has been a great deal written and said about this and as i look at what is ha

create the money to help its economies recover the american economy has a federal reserve and that can create enough money to spur recovery the question is is this money that the federal reserve is going to create like the thirteen trillion that it's given to the banks going to help the banks recover or is it going to help the economy recover well president obama says we can give thirteen trillion to the banks but in forty years we're going to have to spend one trillion for social security that's all. we can only give money to my campaign contributors on wall street not a penny to the voters who elected me not a penny to the economy no warren most lawyer wants the government to create this money to spend into the economy to recover employment to spend on the real economy but the federal reserve says well we're monetary modern monetary theorists in a way we are going to create the money like you want mr most lawyer but we're only going to give it to our campaign contributors we're only going to give the money we can we can create to the banks to buy their mortgages we're not going to he

economy -- and the global economy -- but in terms of growing inequality. we do not know how to grow the economy enough. competitiveness -- we are not trained. we do not have enough workers who are trained to be actually function in this economy. these are terrible threats, not just to people who are suffering but the overall economy. we need to see him more holistically. one of the things that frustrates me on my think tank side -- the debate seems very stale. what i have not seen our whole -- new ideas, which is how we will deal with these and the globalize hypercompetitive, hyper integrated economy. i am hoping the issue is so deep and profound that people are starting to understand how it has such a ripple effect in the economy that some of the great minds will start moving in this direction and coming up with a new ideas. what concerns me is leaving the fiscal piece out of this discussion. the economy is an integrated mechanism, right? we need to be thinking about growth and inequality and our fiscal sustainability and all of these pieces together. we

economy and world economy, it is irresponsible, and i think congress learned that lesson in 2011. >>thought been given in the white house to calling congress back to session if this is as desperate a situation as jack lew suggested, why is washington going away for the summer? >> the prospect of government shut down or more drama around the debt ceiling would be bad for the economy. there's no doubt about that. and i think again, that is a view shared by leaders in congress in both parties. so there's ample time for us based on that general agreement. there's ample time for us to make sure that doesn't happen. >> ample time, jonah. really, everybody is leaving. the president going to martha's vineyard, congress is heading out, and here is this looming debt ceiling battle that everybody is going away until after labor day. >> i think everyone feels like we have seen this movie before, it feels so groundhog dayish. i think they're going to get it figured out because they have to get it figured out. at the same time, i think the republicans are making a mistake, putting this all on the

and that's partly a philosophy of the sharing economy as well. whether it's a need for space, people need to have space as they did in the aftermath of hurricane sandy, or now in oklahoma, or whether they needed to get a car because their car was damaged, or they needed some repairs in their house, they're trying to relight the pilot in the stove and they didn't know how to do it. they can't find the big utilities enthralled in a great effort elsewhere. these sorts of things people can help each other and we can access the companies that are part of bay share and the share economy to get some help for people right away. it's all in the general effort that i want people of san francisco in every single neighborhood to know we want them here as part of the recovery, that they're not going elsewhere, we're not leaving them alone. we're not leaving them isolated. i learned that big lesson as myself and others who went with me to new orleans a few years back a couple years after their levees broke. we tried to understand the frustration of people in t

it's our economy that reduces our exports and good jobs in the u.s. economy.e have seen the financial instability abroad creating financial impacts which impact americans 401(k)'s. [inaudible] >> you're absolutely right. the united states supports modernization of the imf and the government's reforms to reflect the growing realities of the growth in the emerging markets that remain something that we support in pittsburgh. we were very instrumental in drafting and brokering the agreement about increasing the share of dynamic emerging markets by five or 6% which was reflected in the 2010 deal. so currently has this been the case the u.s. is the largest shareholder in the imf buried we have tremendous influence in this institution and i think we need to preserve that leadership position. and the budget proposal that we submitted provides for doubling" of but it also provides for a reduction in the nlrb. we are not putting a dollar into the fund budgets importing to move forward to the 2010 reforms and we are seeking to do so and it's important for the world and i

the economy, the fundamentals of the economy are showing greater than 3% rate and with that in place as the drag disappeared in the second half of this year, you'll see the private sector fundamental reassert and growth not of 2.5% in the second half of second part of this year. >> if that is true and accelerates, maybe more into the fourth quarter, what is the implication for interest rates and federal reserve policy? >> that's an interesting question. i think at this point what the fed signalled that their intent is to reduce the level of stimulus and they are looking at three things. for one, they want to see the confirmation in the economy that we are making a turn for the better and the pace of the recovery is accelerating. i think they will get confirmation for that and the september time in the market seemed to have price it appropriate at this time. so at that point, i think the fed will get the indication that the economy needs less support and would starts1] reducing th level of stimulus providing to the economy. >> so how does this translate for people out of work and loo

to four for the economy to grow. economy grows is supported by offshores taxes are lower and people are investing future amounts of money from offshore since the mainland or over on the corner and this supports the economy grows you for taxes will be put to the level they are in the mainland like in russia where we have twenty percent corporate income tax eighteen percent added tax and said that it's up to you for taxes across the world it will be the same level economic growth across the world we would much lower interest in this surprise for dear dear friend but again that doesn't mean that we should. support existing coffers we should treat them as normal a way to put money in but we need more transparency need to understand what's worth and i mean is the future of offshores i think it will be used. in the less intensive way it will be more transparent governments will know who is holding money offshore in real try to tax more ways to get the compensate for the losses but the governments will not write to you coul

economy now and in the future.overnment does a detroit bailout, i hope it will not do the same old thing of just propping up failure. instead u.s. dollars would be given to create a detroit bestn's city using the technology, making it incrementally healthy, and pleasant. this 2200 city would be a place where experts would come to see, study, teach how to create cities of the future. host: katherine talking about detroit in a moment of opportunity, trying to create the next generation community. heidi shierholz. guest: i do not know a lot of details about detroit, but she brings up a really good point. one thing we could be doing is making investments in places that have been hard hit by unemployment. detroit would definitely be one of those. host: who should make the investment? the private sector or government? guest: it is time specific. at a time when we are in a slump and private companies are not investing, this is the time when the government should be doing it. it was never tried. packageinal stimulus was no

twenty will bring results benefiting itself and the world economy. the money all right. all right gentlemen let's talk about g. twenty chris what do you make of russia's presidency of the g. twenty because it is point we see so many contradictory. statements coming out of the g twenty. when we look at the staring we look at you know borrowing i mean how do you make sense of it because there's a german position collapsed of the americans one job growth is the most important thing because toronto in two thousand and ten it was austerity austerity austerity now it's a mixed game yeah i think when it comes to g twenty and russia look at it in two parts one what russia hoped to get out of it and what it may end up with which i think is living much less than was hoped for certainly a year ago russia was talking up much more up to mystically using the g twenty is kind of a stage almost a launch pad for kind of a new investment environment in russia to start attracting a lot more investment in the country and to broaden out the growth drivers away from say purely consumer to mor

a certain point when the economy is strong enough. it does not delay normalization by very much. >> but you are not expecting the winding down of the balance sheet at any time tsoon. the three-rect?>> part sequence i described you, there again it would not -- we are not planning at this point to sell any in bs. what we would be doing would be allowing at some point -- we m to run allowing the off and not replacing them. >> as long as you continue to hold, doesn't this lead to credit mispricing and investor risk? >> i don't think so. particularly when we are winding down. i don't see that there is any real difference between our holding mortgage-backed securities, which is intended to strengthen the housing market, and usual monetary policy, which lowers long-term interest rates through short- term rate cuts, which is also intended to strengthen the housing market. the housing market is always an important channel of mark -- of monetary policy. i do not see there is any significant misallocation going on there. >> thank you. >> senator

more concerns about china's economy. it is the june trade data, which has people thinking. it confirmed growth is slowing. imports way below forecasts. expectations were for those to grow 8% and exports missed, down 3%. reuters looking for 4% annual increase. china's first export decline in nearly 1 1/2 years. beijing is blaming weak external demand, and rising labor costs. latest report came after chinese officials began a crackdown on illegal capital inflows as trade bills. joining us with his fews, john stockford at invest tech. china's equity markets have been a pretty poor place to be as well. what have they been telling us? >> they rallied today despite the worse than expected data. generally you're right. they have been on a fairly consistent downward path, confirming the sense that chinese growth is struggling to recover. policy is moving away from being outright stimulative to focusing a bit more on the quality of growth rather than the quantity. >> in the long-term, this is the right thing to do, isn't it? >> d

it's not the economy that americans dreamed should be their economy. it's not this world of endless prosperity opening up like a funnel going forward and that sense of limitations i think is a cultural issue. we need to separate the cultural issue which is we don't have the economy we had 30 years ago with the structural issue. we have a very stable system that has lots of flaws and problems but is certainly not going to implode, is likely to modestly expand and should at least give us the space to deal with all these issues of health care and immigration reform and wealth inequalities. >> and the american private sector is extraordinarily resilient. it manages to adjust its balance sheet, it sheds jobs when it needs to, it adjusts. >> it does. you know, if you stripped out the government and the public sector, you would be closer to a 3% economy right now. the private sector numbers have been great. last monday's job numbers were really stellar. i think it's a bifurcated recovery. there are jobs at the top and a lot at the bottom. eight of the ten fas