is supposed to flow through the banks and into the economy the real economy and you would see wage price inflation you'd have seen it years ago but the unfortunately the banks put on a centrally prophylactic around the real economy so that nothing can get out there's no ability for the central bank to inseminate the real economy with a quantitative easing release because of the prophylactic this been put in place by banks to banking terrace as i call them and therefore you have no wage increase whatsoever there's no growth not nine months not ever there's no economic babies that are being consummated as a result of quantitative easing because of this wall this put in place by the banks to take that money that's being printed by the central bank and that they give it back to the central bank and they just put it back to the central banker they make money on the money they've borrowed so it's a complete bastardisation upside down the zation of all that we consider holy in the room of economics and mathematics it's a repudiation of common sense and it's a tapeworm economy is example followe

economy g.d.p. is up is it up for the wrong reasons however as some are suggesting just tied to housing your thoughts well the housing market is enjoying a rally and our economy's too dependent on housing and finance few recoveries few by debts and money printing and so on and so forth the bottom line is we don't make enough stuff i think something like ten percent of our industry ten percent of g.d.p. is manufacturing once upon a time it was over fifty percent right so prior to the two thousand and seven two thousand crash the u.k. economy was over reliant on finance and housing so they after the crash george osborne decided to reinflate the housing and finance bubble that i think that's about right yeah so the g.d.p. numbers reflect a new bubble i would say so and but when it pops is the big question if if it will have a poll who knows ok so less than ten percent or less of the economy is actually export driven but for the most part it's all speculative excess again driven by a ponzi scheme george

and global economy. the one view is the stronger we are, then the better the global economy is, and therefore, we should do whatever it takes to get stronger, or regardless of what the economic realities are. that is one view. the other view is we are the issuance of the global currency issuer of the global currency. we provide a lot of public goods. we are in the middle of the global system. we hold it together. and therefore, when we implement policies, we need to be about the feedback loops through the rest of the world. what is happening today, to pick up on what john has said, when you look at the newspapers, the rest of the world finds it very difficult to navigate a world in which the u.s. is speeding the way it is. and the results of that is that the most powerful engine of growth in the last few years, the american world, is slowing down. and the reason why u.s. companies had been able to do well despite the sluggish economy in the u.s. is because they have been selling abroad. now the risk is w

they see it growing economy. instead we're slapped with this new cost, the tax, call it what you will with obamaare and mpanies want to be more flexible and they have to be by hiring part-time workers because they don't know where the economy or health care is going. >> if i could piggyback on gary's point, the part-time got eventually got a full-time offer. we're not seeing that. we've been waiting months and moose. that is just not happening. that has everything to do with the cost. i get what joe's saying. why not get a bunchof part-time jobs if people were off their butts getting multiple. but if you're only getting one, that doesn't put enough money back in the economy. >> they're stating they have a responsibility to their shareholders to control costs. they cannot say i have to share to part-time model to stay within that fiduciary cost. they're with holding from the workers. it's selfishworld and that's the way it's going to be unless we change the legislation. >> what's going to drive the change? it's go

this is not a healthy economy. we have 47 million americans in poverty and growing, record numbers right now. when you have an economy that is not healthy, the thing to do, and history has proved this, not to raise taxes. we cannot expect the government to be more efficient. we would be better off if they never came back from vacation but they should not raise taxes. >> consumer sentiment was at a six-year high in july. what does that tell you? >> it tells me a couple things. number one, it's highly volatile. the consumers don't have -- number two, the consumers don't have enough money to sustain that sort of viewpoint. they simply -- excuse me, with income levels flat over essentially two generations now, only women going in the workforce has allowed the middle class to keep pace with where they were 40 years ago. eventually, it's going to run out of steam because there just isn't enough consumer buying power. >> again, it comes back to tracy's point that if you take taxes -- if you hike taxes, you take money out

they helped to the economy. i quarrel with these temporary tax codes in 2008 it was a part of the stimulus to get the economy going. but everything i see is reducing the tax rates, reducing the lowest tax rates and we took the lowest tax rate from 15% to 10% to reduce the taxes on people across the board i think that was healthy and helped people out. the problem is we didn't control spending and it's gotten worse. >> he writes about the time he was serving as the treasury secretary from 2001 to 2005 in the first principle key to restoring america's prosperity. secretary taylor, you also write about what you called the nixon shock. what is that? >> amazingly in 1973 president nixon imposed wage and price controls on the entire economy so the readers of a market approach. and i think there was a shock. it wasn't expected and was a factor in the performance that really lasted throughout the 70's and it led to other problems that need monetary policy easily because they could say we don't have to worry got inflatio

>> it has moved from a production economy to a service economy. service jobs pay far less than the old manufacturing jobs d. the truth is, the country has moved more toward finance and away from production and that leads to massive inequality. >> corporate america and the economic emerged and the republican and democratic party merged and brought in low, cheap products and offered a lot of jobs and changed america, not for the better. >> eleanor? >> i agree there's no significant labor move in the country and we really could use it. corporate america is the bull in the china shop, and china metaphor there is also meant. but when i look at the setting with amazon, if you're the owner of an independent bookstore, you're not going to like the president chose this setting. they did announce they're creating 4,000 jobs, setting up distribution centers and the phrase that's use side bricks and click. they have acknowledged that they do support some sort of an internet tax, and so there could have, on the progressive end of how it works with our tax syst

that is the economy nationwide. we want to get your take on the economy. is it getting better or worse yet go and how much washington how -- or worse yet go and how much does washington -- influence does washington have. again, for our first 45 minutes on the to get your take economy. you can call us on those lines. if you want to reach out to us on social media, twitter @ cspanwj. on facebook we have about 13 comments. you can always send us an e-mail at journal@c-span.org. here are the figures from the front page of the wall street journal -- it also talks about the unemployment figure, standing at 7.4%. that is dropping from 7.6%. here to give us a little bit of the numbers and what the numbers a reporter from "the wall street journal." aside from the actual numbers, what is the real story behind these figures? guest: good morning. the real concern is where these jobs are being created. we are seeing a lot of job growth in areas that typically have low wages like retailers, we are not seeing big growth in even the medical area where you need an advanced

america's economy will almost never grow that fast, because of more mature economy typically doesn't. today we have been asking you how do you measure your personal growth. i looic this one from mike. he says by how much i can borrow. >> this viewer seems to agree. an increase means little if i can't keep up with costs. tell me what you think by tweeter@aj real money or leave us a comment on facebook. what was the biggest driver of the growth in this country. it was exports. exports account for almost 14% of our nation'sgdp. and ships this emto places like brazil and bermuda. david joins us now from his home, good to see you, sir, thank you for being with us. tell us a little about what you were -- what your business was before you discovered exports? well, it is a pleasure to talk to you. initially we were trying to deal with the domestic market, i have to say like right here. this is a purchase order we received which will be for nine palates of sausage, that will be shipping to brazil within the next two weeks. >> how did you get into this? >> how did you figure out how to sell stu

economy the very same thing debts that were.created through large banks are being pushed into the public sector for the public to suffer through austerity so if the argentinean model is in the u.s. and that's why it's important we are thoughts yeah well and in both my books they'll just picnic and really isabella paris is exactly the point i've been making the things that were that were basically tested in the third world on argentina and equity and been brought home the difference is that the origin times have learned their lesson they've been caught up with those debts were forced on the arjen times by military dictatorship so what happened is that of citibank made loans so all kinds of argentine companies and the military during the dictatorship then the i.m.f. and the banks in the u.s. government force argentina to take on its public debt the debts of these bogus companies of these of these connected operation i going to cut it off their route of time but that be on again soon the new book from great palaces billionaires and

, it's a by product of the economy.look at the horrific crimes, this in particular and say this is irrationm. it's disgusting. it is. it happens in the less strong economies where the people, young people don't see a future where they can succeed, produce, and achieve their i agree with you on so many things, mostly constitutional things. i'm not sure crime is result of bad economy. rudy giuliani cleaned up times square and the crime went down. economy was better and crime went down. which -- is it the dog chasing the tail? >> it goes hand in hand. if you have a bad economy people aren't employed and therefore they are busy doing other things than working. if you have a good -- i think you have to bolster areas so people can come in and work. if you don't clean up the areas even in a good economy people won't want to be there. the bottom line in this case, we are talking about teenagers here, not talk about adults. this is teenagers under the age of 18. this starts at home. you can revach areas in new york city all that

a redistribution in our economy. he has said from the beginning, because we have a few differences which we have inherited. the tax shield from the previous government costs something like 3 billion euros. we have to pay that back now. there is a huge deficits. half will be from savings. half of the from new taxation's. is what we're doing from the beginning. >> that is a drop in the bucket. >> it is an amount which is quite important. i think with the government is doing today is taxing more of the very rich but not the enterprise. they are suffering the most. >> we have had the credit, the tax credit for the enterprise to be able to have new margins. this government is doing things for business, but it also has to reduce the deficit. >> i will let you speak. we have take a quick break. when we come back, i want to hear your answer. stay with us. >> welcome back or welcome if you are just joining us. samples of the stories we will be following for you at the top of the hour right here. u.n. inspectors in damascus re

a low wage or a low wage economy is much better than a no wage economy and what happens is when you're trying to raise the minimum wage across the board you're hurting the people who are unemployed who are unskilled who are unable to get jobs when you raise a minimum wage what you're doing is you're saying that only the certain group of people are going to be benefiting from this program and it's a politically motivated issue it's not an economic issue politicians don't care about economics they don't care about small business owners they don't care about helping the economy all they do is they try and pander to votes for people that think that they're going to get their rate wages raise and some people will get their wages raise but the those are the people who are going to complain the people who are complaining are the people who don't have a voice in this debate are the people who are the unskilled workers who don't have anyone out there speaking on their behalf and those are the people who can't get jobs because they don't have the skills necessary to pay the wages that they're de

continues to slow more signs of weakness in the world's second largest economy we've got an economy which just isn't slowing version of our economy that's collapsing considering parts of europe are dealing with flatow even negative growth right now why all the fuss over china that we're fuzzy let's take a look at what some point five percent of china is going to be actually equates to well it equals the whole of switzerland economy one of the wealthiest economies in europe so if time is growth was to stay this way the country would be adding the whole of the switch the quantum way to its balance sheet every year or three graces if you put it like that even so is a seven point five percent such a disaster while right now i'm joined by a say have formal morgan stanley chief asia pacific economist joining me from hong kong today so can you tell me what you make of this seven point five percent is it such a disaster well our finger china is going through our necessary phrase of adjustment rebalancing the economy over the. last a five years china investment too much part of it to support

"on the money," the economy, the economy. the economy. new focus on the numbers.to work, and later a rare interview, with amazon founder. and a billionaire that changed the way we shop. and they are helping high schoolers dream for the way they change the world. when they leave here, they want to, they want world peace. it's, you know, okay. we want to solve all those problems. >> here is the bottom line, i'm willing to work with republicans on reforming the tax code, as long as we use the money from transitioning to a separate tax system for a significant investment in creating middle class jobs. that's the deal. >> the president said he has a deal to create jobs in exchange for reforming business taxes. will it work? here for an analysis on the recent economic push is glenn thru is sh and tony flatto, gentlemen, good to see you, thank you for joining us. >> good to be here. >> so the president went to an amazon.com facility in tennessee this week, laying out a plan that he called a grand bargain. that would create jobs, particularly middle class jobs. proposing

economy. they downgraded it. no mention of tapering. when do you expect they will begin to taper. can they begin to slow down the bond purchases? >> i think the fed will begin to taper toward the end of the calendar year. probably not in september. i don't think quantitative easing right now is having a very large impact on the economy any way. i think the feds feel quite optimistic. >> and david, you don't think the fed's forecast is too optimistic? >> now, i think they expect it to pick up. again, if i'm right that the economy doesn't have the capacity to grow that fast, even a small pick up really does reduce excess capacity and make it more important that they move away from quantitative easing. >> the second quarter gdp is coming in slightly stronger. we're still looking at a below 2% grower. >> a typical recovery for a deep, downturn is very sharp, we haven't seen it. we should be doing it a lot better than 7.7%. >> i think it was 180 billion that came out. what are you telling clients t

the economy's running at 2? that means the fair value given the fundamentals today is over 3.5%. >> nominal gdp is running 2 president 9%. there's a close correlation as well. there's a lot of metrics you can measure by. bonds should remain a little expensive. you know, i think ten basis points, 20 basis points here or there does not -- is not that big a deal, but, again, looking -- people are going to stay on the sidelines. it is a tough environmental for bonds but we need more robust data. >> bottom line, does anybody on the panel think that the fed begins tapering this september given what we saw today? >> i don't -- they won't do it if they think there's going to be an impact on the economy. >> anthony chan? >> i think what they'll do is make that. what they'll do is alter the amount. >> so, yes, september. >> yes, september. >> anthony valeri, september or no? >> yeah. i say 70% chance february begins to taper in september. >> dave, you're up. dave fleischer -- yep. if there's any indication that there's go

and they integrated them into the world economy. they grew through the world economy, as exporters. and they did that very well. >> rose: and was it essential that they had the government play the role it did? >> i think given where it had started, namely it was all government, they had to play a role. whether they need to continue being so much in control is less clear. but when it started and for 10, 15 years they had to do that. >> rose: and will they be able to turn from a exporting economy to a domestic consumption economy in a reasonable amount of time? >> that's what they want to do. and they keep talking about it. but it hasn't happened yet. i would like to add run thing. the chinese economy of today is more than double the size it was ten years ago. when it's growth declines to 7%, 7. --, it's adding more to global demand than it did when it was growing at 10%10 years ago. because 7 and a half percent of a big pie. >> right. >> has been growing. >> rose: and the united states? >> the yoobted states managed, although it's hard for americans to believe, managed the crisis bet

and global economy. economy is, and therefore, we should do whatever it takes to get stronger, or regardless of what the economic realities are. that is one view. the other view is we are the issuance of the global currency goods. we are in the middle of the global system. we hold it together. and therefore, when we implement upicies, we need to be about on what john has said, when difficult to navigate a world ofthe most powerful engine down. in countries like brazil, because it is very difficult to navigate a global system with that is so fluid with capital flowing in and out. dealing with what is calledwhen a tourist goes to a developing country, they normally go with great enthusiasm. they're going to go see a lot of nice things, etc. then suddenly, something goes wrong and they don't know the country well enough. the first reaction is to go to the airport and get out. a lot of capital has been pushedand has gone to countries -- crossover capital, where interest and the risks they are underwriting. e

economy. to cross-talk mcdonnell ization i'm joined by austin peterson in washington he is the c.e.o. of stone gate and editor of the libertarian republic dot com and in new york we cross to eric draitser he is the founder of stop imperialism dot org all right gentlemen crosstalk rules in effect that means you can jump in anytime you want and i very much encourage it eric in new york do you want to term mcdonnell as ation of the economy you like it dislike it in different. well the term is sort of something that is very recognizable particularly in the united states many of us remember in the one nine hundred eighty s. you know mcdonald's had become sort of emblematic of what low wage jobs were that the mcdonald's work was essentially the lowest one could possibly imagine of course this is a mythology but that was sort of implanted in the popular culture in the united states at that time and i think that recently we've seen symbols such as wal-mart sort of take over that mantle of the low wage

and that's partly a philosophy of the sharing economy as well.nd 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

private debt has got them down the housing bubble is bursting bursting bursting the economy is contract ing us terry is biting. on. and unemployment is rising but how is this possible when the dutch current account is positive the government deficit is smaller and exports are doing well something does not add up we need to bring in stacy herbert to see what the frick is going on over there in the netherlands well max remember at the beginning of this financial crisis when it was and the economic crisis across europe and we needed to bail out greece and spain and italy and portugal and all these people with a profit get bad spending governments of the south well you know now the netherlands were always the one that were pushing the most foster care ity but it turns out private debt might matter more than government debt and the situation deflating housing bubble at heart of netherlands economic blues household spending has been falling for three straight years and it dropped again two point four percent year on year in the second quarter dragging the entire economy down with it so they j

take it out of the private economy, does it help, one, the economy? and two, innovation? >> i agree with everybody on this panel. but we can have arguments about little areas to cut and debt ceilings and sequester. at the end of the day it comes to entitlement. if you want to balance the economy for the next generation, look at that. >> david: i know you are not terribly concerned about the deficit in general. you don't like big government spending but the deficit doesn't scare you. but the taxpayers pay for the interesten the deficit. >> rather than pay interest on the government discovering new programs. being back to rick's point, would yo prefer genentech and pfizer or merck discover cure for cancer or the government? >> go ahead, rick. >> what i prefer is whatever gets the job done. ask genentech -- let me finish. you asked me the question. ask genentech how much of whatsn with the assistance of the government funds. >> david: emac. >> in social economies you don't see the major american brands like we have there, the soft economic power. you don

economy. not only is the condition for enterprise that is also a measure of information and a criteria for creativity. shannon's information theory, which is a foundation of all of these technologies we enjoy is based on freedom. that's why freedom fest is a good place to celebrate shannon. >> talking with several economists and people with opinions about the current political situation in america. and a couple of intervenes we have done here people have expressed concern about the debt that the u.s. ask carrying and there's going to be a come up pans shortly. do you subscribe to that? >> no. i think that is serious. but the great thing that this book shows if we have a knowledge economy an economy of mind, it can change as rapidly as peoples' minds. the problem in the united is not that. it's socialism. and you address the problem of increasing exercise and government power to make up for government ignorance, and to displace the nojt -- knowledge of entrepreneurs. that's the problem. debt is

economy. not only as a condition for enterprise, but also as a measure of the permission and as a criterion for creativity. so shannon information theory, which is the foundation of all these technologies that we enjoy in, all the information tools that are the heart of world economic growth is based on freedom. that is why freedom fest is a good place to celebrate shannon. >> host: george gilder, we are talking with several economists and people with opinions about the current political situation in america. a couple of the interviews that we have done here, people have expressed concern about the debt that the u.s. is carrying and that there is going to be a comeuppance shortly. do you subscribe to that? >> guest: no. i think that is serious. but the great thing that this book shows if we have the knowledge economy, and economy of mind, it can change as rapidly as people's minds change. the problem in the united states is not dead. it is socialism. we address the problem of increasing exerci

based economy. and that will not be frictionless. that will be bumps along the way. i'm not saying they can't do it, but will not be frictionless. the chinese have to get much more engaged with the economy. and they'll have to stimulate growth in other areas other than just moving roads, trains, bridges, et cetera. they have to really -- >> also the core inflation report today out of the bank of england. waiting to see if we get forward guidance. they'll try to anchor the short end of the bond market. what is your view of gilts at the moment and what is happening with bond funds? >> short-term, long-term, today the inflationary report is the biggest change in uk monetary policy since black wednesday and that sounds like hyperbole, but this is the biggest change since black wednesday. this is the next stage in what a 12 to 18 month project to move uk investors away from focusing purely on inflation. we're moving to inflation plus another variable. >> yeah. are we subsuming inflation? are we downgradi

finally on the economy, we believe the u.s. economy is gradually lifting as we move through the middle part of the year, but it is set to be held back by some important drags. the lift is coming partly from a fiscal drag, which we think will be fading in the second half of the year. it's coming partly from a global economy, which is being helped by europe's exit from recession. and we do believe even though the fed is tapering, that the impulses coming from monetary policy are positive. we can see the lift beginning in the manufacturing data. we see the lift also likely to show up in the capital spending and equipment space. the consumer, we think, is going to be on the sluggish side but not restrain the economy in a significant way. we're looking for a 2.5% growth rate in the next two quarters after having seen the economy grow at only a 1.4% pace over the last four quarters. >> that was bruce kasman, chief economist at jpmorgan chase. >>> executives at the japanese electronics giant soniy are rejecting what they see as a bad

well a low wage or a low wage economy is much better than a no wage economy and what happens is when you're trying to raise the minimum wage across the board you're hurting the people who are unemployed who are unskilled who are unable to get jobs when you raise the minimum wage what you're doing is you're saying that only the certain group of people are going to be benefiting from this program and it's a politically motivated issue it's not an economic issue politicians don't care about economics they don't care about small business owners they don't care about helping the economy all they do is they try and pander to votes for people that think that they're going to get their rate wages raise and some people will get their wages raise but the those are the people who are going to complain the people who are complaining are the people who don't have a voice in this debate are the people who are the unskilled workers who don't have anyone out there speaking on their behalf and those are the people who can't get jobs because they don't have the skills necessary to pay the wages that t

increasingly we live in an economy that's driven by fire that would be finance insurance and real estate now over the last three decades it's quadrupled in size relevant to the size of the rest of the economy here to discuss this and the nature of how financial bubbles are fueled and destroyed is dean baker he's the co-founder of the center for economic and policy research and also author of false prophets dean thank you for joining me for a man so how did we get here in this fire economy over the last three decades well soused part of this long process of the u.s. we had this sort of golden era coming out of world war two where we had rapid productivity rapid wage growth for broadly shared prosperity which things were going right that sort of breaks down for a variety reason in the seventy's and then we get a very very different regime beginning in the eighty's and that's really the send and see if finance in over that period you've seen this enormous growth in the financial sector and i often focus on the very near zero investment banking securities and commodities trading sector that