make our economy stronger.ake it easier for first-time homebuyers to get along, we will create not just more construction jobs, we will speed up your efforts to start a new company and send your kids to college and graduate school sunday. more families by that first home, make the economy stronger. if we keep investing in clean energy technology, we will not just put people to work on the .ssembly lines pounding into place for zero carbon components of the clean energy age, we will reduce carbon emissions and prevent carbon emissions down the road. --est in new american enemy american energy and make the economy stronger. if we make high quality preschool available to every child, not only will we give our kids a safe place to learn and parents go tohile work we give them the start they need to succeed in school and earn higher wages. today i am setting a new goal. by the end of the new decade, let's enroll 6 million new -- children in high quality preschool. that is an achievable goal we know will make the wor

economy. they are looking at bringing jobs back from china. what will the report tell us about the economy? fromng us is our reporter bloomberg news. peter coy.ring in he is the bloomberg economics at it -- economics editor. you say a fall in the jobless rate could be bad news. >> it could be. a it happens because there is lot of tightness in the labor market, we do not get a big increase in the labor force and unemployment's rainfall, we cannot handle the increase in and we will see upward pressure and wages. the ideal would be strong job growth. people are encouraged to find work. to tell the truth, the unemployment rate is high. the unemployment rate does not help the people unemployed for reasons out of their control. the president tried to assure americans the economy is doing better. is he getting that message across. >> the white house has not been good at staying on message. we are a month out, this number will be important if it indicate something positive. , 80big problem for voters

the economy is about the politics. if the politics don't work, you can't force the economy to work. quite so't think is close. but it works both ways. becomes economics of course. the government is a huge factor in any economy. the policy regime is crucial. people's expectations about how well they are going to perform will affect the economy and the other way, the economy over a long period fails to raise the society, if the economy generates huge crises it undermines democratic politics and that is how the book ends. whether or not politics caused the crisis, the economic crisis is a clinical crisis to. it is one of the reasons government is weekend. the prestige is weekend -- akened. makesncellor merkel decisions based on the politics. >> of course. like she has a problem, basically in charge of your grade in that situation, you can imagine a president of the united states, the person making the policies were elected by texas alone, you would have strange policies. the germans have done better than that. >> it is important, notwithstanding, not to exaggerate the story of slowdown

you won't have a perfectly steady economy but a much stabler economy. i don't believe that.h all the information we have about the economy, there should be feedback. you should feed back into the policy process what you can learn from the economy and then adjust policy not every day, but over a cycle or in light of various crises that hit the economy. you should adjust it in light of the information. i would say you can't iron out the little wiggles in the business cycle, that countercyclical policy may be useful if the economy gets very much off track. we have monetary and fiscal tools for dealing with that situation. we won't see the kind of experience we had in the 1930s. the policies that were pursued in the sixties and seventies-- trying to prevent 1 or 2% increases in unemployment that come about because of changes in consumer preferences or changes in investment behavior-- that's a futile activity and it almost inevitably leads to worse problems than the problems it's trying to cure. in 1985, sour notes in our economic performance warned that inflation and unemploymen

the economy is about the politics. and if the politics don't work, you can't force the economy to work. >> well, i don't think of it as quite so close. the economy has a life of its own. >> rose: but certainly -- >> certainly in the west. but it works both ways. i mean that is to say politics becomes economics, of course. the government is a huge factor in any economy. the policy regime is crucial. and people's expectations about that, about how well they're going to perform will affect the economy, and of course the other way it works. if the economy over a very long period fails to generate rising living standards for the majority of the people in a democratic society, as it has done here and in other western countries, if the economy generates huge crises t undermines democratic politics and that's how the book ends. this is, whether or not politics caused the crisis, i have no doubt the economic crisis is a political crisis too. it's one of the reasons governance and government is weakened, its prestige is weakened

economy. the international monetary fund also cutting its growth forecasts but says there's one bright spot. the u.s. >> but how bright is it? a new survey suggests the economic recovery here still has a long way to go, and americans may be tired of waiting. >>> and housing triple dip? they say it wouldn't happen again, but now some experts are warning of yet another pullback in home prices. we have all that and more tonight on "nightly business report" for tuesday, october 7th. >> good evening, everyone, and welcome. stocks took a real tumble today. closing at a two-month low on weak manufacturing data out of germany. the economic engine of europe, and deepening worries about a slowdown in global growth overall. that's after the international monetary fund trimmed its outlook for global growth this year and next, singling out the troubled economies in europe, japan and latin america most especially. with that, stocks here sold off sharply after they did in europe. on wall street they began th

all of that has gotten the economy rolling again, despite the fact that the economies of many other countries around the world are softening. but as americans, we measure our success by something more than our gdp or a jobs report. we measure it by whether our jobs provide meaningful work but give people a sense of purpose and whether it allows folks to take care of their families. and too many families still work too many hours with too little to show for it. job growth could be so much faster and wages could be going up faster if we made some better decisions going forward with the help of congress. so our task now is to harness the momentum that is real that does exist and make sure that we accelerate that momentum, that the economy grows and jobs grow and wages grow. that's our challenge. when the typical family isn't bringing home any more than it did in 1997, and that means it's harder for middle class americans to climb the ladder of success. it means it's harder for poor americans to grab ahold of the ladder into the middle class. that's not what america's supposed to be about. it off

by 1959 the economy was improving.sident eisenhower wanted to leave office with a balanced budget so he began to push hard for a surplus in 1960. but vice-president nixon was running for president that year. he wanted a growing economy, so he argued for a deficit. many economists agreed with nixon, but ike stuck to his guns. his chairman of the council of economic advisors raymond saulnier remembers the pressure. you don't have any problem with how much money is going to be spent. you are surrounded by people prepared at the drop of a hat to spend untold amounts of money. that's never a problem. what the problem is, to raise the funds to meet that. so if we were pushing hard in 1960 -- and my recollection is that we were -- we were pushing hard to reach this equivalence of income and outgo. schoumacher: many of his advisors thought eisenhower did not have time to oversee a complete recovery from the recession of 1958 that his drive for a budget surplus was premature. they urged him to continue spending to fuel the reco

make our economy stronger. if we make it easier for first time homeowners to get a loan, we don't just create even more construction jobs and speed up recovery in the housing market, we will speed up your efforts to start a new company and send your kids to college. families. more young make our economy stronger. if we keep investing in clean energy technology, we won't just put people to work on the assembly lines, pounding in place, we will reduce our carbon emissions and prevent work costs of private chains down the road. let's do this. invest in new american energy to make our economy stronger. if we make high quality preschool available to every child, not only will we give our kids a safe place to learn and grow while their parents go to work, we will give them the start they need to succeed in school and earn higher wages. i am setting a new goal. by the end of this decade, let's enroll 6 million children and high quality preschool. that is an achievable goal that we know will make our workforce stronger

economy.> exactly. you have more disposable income, you can spend more money on goods and services. and we have to go to upper income individuals as well, where we double tax dividends and capitol gains. and we could change the capital gains tax laws and do that in a way to get away from the tierney of three-month earnings which also goes into one of the factors of why we have gotten into this plan, the easiest way to do it is cut compensation, so we have to change capital gains tax laws. anything less than five years is ordinary income, less than five years is tax free. >> you pay a lower tax on your gains from an investment but you don't have to hold thank investment for five years. you can do it in a year. >> correct. >> you are saying if you want to save your tax, you have to make investments that you commit to for a period of time, >> correct. >> so you want a company to say, hey, make 20% over five years. >> correct. and that's pivotal because right now we have what i call the tierney of

economy? question of wanting to a little bit at a time -- winding it down a little bit at a time? >> they say they may not get to what they consider a study balance sheet until the end of the decade. there is the passive runoff from the portfolio and the markets will be able to absorb it. >> you have got to hope that you get some growth. you have got to hope that the economy -- that everything works out well. they are walking a very fine line, and what do we have left? maybe they could do qe4. but if europe is as bad as some it isk is -- some predict an asia is weakening as well, does that krakauer economy -- does that drive our economy into a significant slowdown? >> we talk about this on "street smart," it is all about jobs, jobs, jobs. are they living wage jobs? >> are they paying? we have seen basically no inflation in this economy. i scratch my head and say how can that be? how can you have six years of record low interest rates, three rounds of qe, and not have any kind of inflation? thi

the dangers of a profound effect on the economy, equally real.erous commentators observed that the parallels to 1929 were ominous. even the upturn in the market in late 1987 had had its parallel in the 1920s, only to be followed by a further collapse and the greatest depression of all times. but it didn't happen. and one reason was that theories of long-run steadiness gave way immediately to an appreciation of the crisis. did we need more money, more liquidity? we would have it, the fed told us, quickly and unequivocally. forget general rules -- handle the crisis first. which leaves us where? perhaps better off in economic facthan in economic theory. cruise control is great in automobiles on the open highway, but when the traffic gets hot and heavy, there is, alas, no substitute for human judgment. hopefully, good judgment. monetary policy was an effective factor in holding down inflation in the booming '90s. the federal reserve was also successful in limiting the damage from various crises to hit the u.s. economy, including the financial crisis

even less how deep the world economy is. how much of that is produced in china or the united states. of course you don't need to know these numbers. you need to know only one thing, hoover. [laughter] but my view is actually you need to know some of these numbers. and lets you know some of them, if you have some fuel about what they are, about whether you should look like and so on, you didn't even know what to look for. and also if you brought ideas about these numbers, you can develop very distorted views of the real world. let me give you one example. in the days of euros on crisis when, especially greece was a problem, there was this widespread narrative, mainly coming out of germany, which basically argued that greeks are in trouble because they are lazy. they walk like a greeks and they spend like germans. [laughter] this cannot be done. so you need to buckle up and work harder your now these people would not have been able to say that if they went to the oecd website and looked up the annual average working our of the

economy.resident rattled off some familiar statistics, like the fact that businesses have created 10 million new jobs in the last 4.5 years. and it's indisputable that the country is stronger than it was when he took office. but those statistics aren't worth much when many americans don't feel economically secure. patricia sabga looks at the reason for the disconnect. >> reporter: president obama thursday walking a fine line on the economy. >> our broader economy in the aggravate has come a long way, but the gains of recovery are not yet broadly shared. >> reporter: during his speech in illinois, the president highlighted the recovering stock and jobs market while honing in on one of the economy's most troubling weak spots, wages. last year was 8% lower than 2007, a decline that helps explain the widening gap between rich and poor. most americans got the bulk of their income from take-home pay as opposed to investing in assets that have increased substantially in value since the great recessio

that's quite a lot of cash for any economy. we are a $1.6 trillion economy. replicate that across smaller economies of asia and we're the fourth largest economy in asia after china, japan and india. this equation is unfolding. so part of the american response is the transpacific partnership and the diplomacy associated with that. and for which there is a chinese counter narrative as well. i won't go into the probabilities and relative merits of both proposals. >> let me open it up for one or two questions. andre? >> thank you. i'm the chief representative from vietnam for the intrastate traveler company. wonderful address. thank you so much. so comprehensive. i just was taking notes from your remarks here. only thing that i have a question on is, in working towards this constructive realism, great term. you defined it well. but it seems like a fly in the ointment, so to speak -- >> seems like a what? >> a main obstacle to working towards constructive engagement with all those variables is that, of all the parties to the equation, only china -- only china -- c

it's a stronger economy mirk it's an industrial economy, it's an exporting economy. it relies on that natural gas, it rely on his energy prices to keep that engine going. and it's feeling this hit. but, again, how does the voter connect that to president obama and the democrats and republicans running in their district? >> oh, you know, i think that we could have a long debate and i know you and i have over the years about president obama's policies. the near term truth, though, is with equity markets dropping a lot, economies slowing, people feel more anxiety about the economy going in to the general election. and historically when that happens, the party, the president suffers -- party of the president suffers whether it's just or not. republicans are going momentum and the bad economic news sucks life out of democrats. >> if someone shows you can, a the example i use is a mar mart. i can parents a beautiful picture of america, 225,000 jobs created every month. unemployment dropping. the price of gasoline going, natural gas half of what the world pays for it. inter

be worried about europe's economy? there's plenty of good news here, interest rates are still at rock bottom, mortgage rates are dipping again, unemployment rate are the best we have seen in almost a decade, and gas prices many americans are now paying less than 3-dollar as gallon. >> it definitely helped out. when it comes down 20 to 30 cents that means i am not putting 80-dollars in here. lower prices may make you feel better, but take a broader view. and the benefits to your wallet now could be offset later if the economy faltering. let's get back to the markets, yes, in the past five days market power looks bleak. i think our markets need volatility, it is healthy, moving in one way, one direction, up or down is nos healthy. maybe the new fear is just a reality check, a correction of sorts. and that is what global investors are trying to tell us the world economy, the securities market, and the economy that begins at your front door, this time on the program. are companies really worth trillions less, what the stoc

economy is part of a global economy. of the u.s.corners economy, i'm quite confident we're on quite a sustainable and increasing growth path p or we're not impede -- pass. th. we are not immune to the world as it has a spillover effect. i am eager to have the highest possible growth rates, so even a small, incremental impact is something. i think each of these countries has a much more fundamental reason to take a hard look at the policies because for their own domestic reasons, they need to grow, they need to have very high unemployment rates come down, they need to have a stable foundation for the future, and it is not just developed countries. in the emerging markets, we have have hadountries that the right balance are doing better than countries that have we have many challenges in the united states. i do not pretend that we have tackled every long-term problem that we have, but we have got the right mix of thinking about how do we gw the economy in the short-term, build a foundation for stable economic growth, and k

economy -- economy.. >> asou just said, we are looking at a market that every little thi can set traders off and does. out on theooking horizon, you're not worried about ebola. >> nobody shouldld be worried about it. o of companies are doing badly because they are not wellrun, basically ibm and mcdonald's are not very well run companies these days. did very,market still very well because there were really good profits reports. >> the other thingeter did not touch on is energy. oil is $80 a barrel now. the more energy gets cheap, the better it is for our economy. >> y talk about the ice of creang -- >> it ts money in consumer's products -- pockets. it hasas not fallen enou to hurt domesticroduction. >> green lht, red light or yellow light for t company - economy? >> greenight. >> green light. >> i will say yellow light. one day my son came to me and said, "dad, let's go shoot some hoops." i couldn't play with him. i didn't have the energy, i was just so overweight. it just made mfeel like i was nothing. and then my sister introduced me to herbalife. i started drinking the protein shakes,

and global economy. there's still challenges of course, but broadly speaking, the economy has made a number of steps toward as healing and eventually trajectory of growth. they treat the number of words within the statement. they importantly kept considerable time in toward guidance. they changed the description of the labor market. they took out i phrase significant resources and mentioned while there's underutilization it's gradually diminishing. that was a step in a positive direction. the next step of course is when does the fed start hiking interest rates? we're still several months from that. our baseline forecast some point second half of next year. they'll begin a period of higher interest rates. one of the things thaim monitor carefully is inflation. we're still well below the fed's target of 2%. recent data has zone down side risks to inflation. if i had acknowledged this in the statement saying near term risk are down side as a result in decline of energy prices and other factors. the risks th

fear is adding to the health of the global economy. that recession started because of the commonly crisis sparked by bad mortgages in the united states and spreading through the world. i speak about the crisis and the author of a book called "the shifts and the shocks", what we have learnt and still to learn from the financial crisis. i started by asking him to answer the question posed in the title of his book - what have we learnt? here is what he said? >> the most important thing we learnt is the fundamental system and the way it interacts and the dangers of leverage, accumulating huge amounts of debt, particularly in the financial sector and the household sector. this is something we shouldn't repeat. we have a group growing up thinking debt is great. >> that's how it seemed for 30 years, until it ended. the assume was true in other countries, for the last 6-7 years we reduced leverage and debt. there has been a lot of bankruptcy, corporate and more in households. it's painful. as we have seen as credit is more available, as jobs a

for a while when it comes to the economy. i don't know if you're overstating it to make the case because one can look at things in this economy that are really good but in fact, there is something going on with the consumer and key can't figure out what it is. >> i agree with you. there is certainly fear. there is certainly a lack of confidence. what the markets have been showing over the last two weeks is a catch up. what the consumers know, consumers are people who have to pay bills. they're people who need jobs. they are people who know that the companies they work for will be there and they can survive and pay their bills. if they can't do that they're not about to buy extra things. that's one of the things that is happening. the fact that the market has been deteriorating so quickly and the volatility has increased but all the policies that have bouyed the market from zero interest rates to corporate buy backs have basically created this artificial market, which has not reflected the aggregate economy that most people li

economy is healing. people say that the rising dollar going to hit the gdp and trade and will a little bit. keep in mind, the expansion of the '80s when we saw the economy as well as the stock market go up so dramatically, the dollar tripled. i still like stocks here. i think this is a buying opportunity. i do not like the energy space, though. >> rob, why do you think oil is getting hammered to the magnitude that it is? down 4%. i mean, relatively speaking, that's as if the dow went down 600 points. >> scott, i think actually it's a combination of a few factors. you talked about the fact that hedge funds camping in the energy trade. i think the stocks were overbought to begin with. i think there was a lot of ignoring of the fact that the u.s. is awash in oil. and also, too, there's a realization that, okay, europe is going to do qe next year and the dollar's probably going to be strong. all three of those factors kind of combined all at once to just really hammer crude. >> meg green, give us your take h

. >>> things don't look so bright for the japanese economy. we're joined now from the business desk with the latest on the economic situation. what can you tell us? >> good morning, catherine. analysts at the international monetary fund released their outlook, and things are looking rather gloomy for japan. the analysts slashed their growth forecasts for the country citing a strong reaction to the consumption tax increase. the ims world economic outlook downgraded this year's forecast for japan from 1.6% to 0.9%. the report said personal spending and investment have fallen since the consumption tax was raised to 8% in april. exports are sluggish as well. >> potential growth in japan is very, very low. and so the only way we are going to grow faster is by increasing potential growth. this is the chance of japan. >> blancheard unched the japanese government should ease the monetary policy. the annual growth forecast for the global economy was lowered from 3.4% to 3.3%. the report called the eurozone the weakest of the advanced economies. officia

they have a good economy. best state economy in the country. there's a lot of energy production in colorado, along with north dakota and texas. the races are close, and some look like they may lose. the state is divided between what i describe as the new colorado, people that come in, and the old colorado, the old timers. the senate race in particular looks like a choice. the opponents have been around for a long time in colorado. and the state is divided. more to the point republicans are furious at obama for all kind of reason, primarily the economy. democrats are demoralized, particularly latino democrats that have been disappointed that the president has not been able to deliver immigration reform. >> that's a state where immigration was supposed to be a key ballot attractor forments democrats coming in to vote. i know you meant cory gardner, running it. >> running against hipenlooper, immigration was supposed to be the gift that obama was giving. it didn't happen, that's why the numbers on the economy are so important, especially in that s

economy in illinois. ballot. >> another high school football player died during a game, the third in the past week. shock. >> an ohio woman suing a sperm bank. they mixed up a sample. >> it wasn't as if she was calling in october 2011 ordering a pizza. >>> the latest on the ebola scare in dallas, as many as 100 people may have had direct or indirect contact with thomas eric duncan. the liberian national is in serious continue at texas presbyterian hospital. the number of elementy students that may have had contact issate. that had some parents taking their kids out of class. four of duncan's relatives, exposed to him while he was showing symptoms of the disease home. >> no one is supposed to go inside the apartment. they are in the apartment. they cannot come out or allowed to come on the porch. >> let's go dallas, and al jazeera america correspondent heidi zhou-castro. good of you to join us, you were at the apartment complex on thursday, where duncan had been staying in dallas. are people concerned. wha

that is quite a lot of cash around the economy would've 1.6, $1.7 trillion economy. replicate across the smaller economies of asia that were at the fourth largest economy after and germany. this equation is unfolding. so part of the american responses to transpacific partnership in the diplomacy associated with that. and for which there is a chinese counter narrative as well. i will go into the probabilities of the proposals. >> open it up for one or two questions. the >> street here in the middle. thank you. >> i am on i am entrÉe and the chief representative from the interstate company and it was a wonderful address. thank you so much. just taking notes from your remarks in the only thing i have a question on is in working towards this constructive realism, great term, you defined above. but it seems like -- >> seems like a well quick >> a fine obstacle, the main obstacle to working towards all those variables is that of all of the parties to the equation, only china -- only china continues to violate you think i went to intrude into the exclusive economic zones of

i think the people of colorado are talking about the economy. you know if you look at the last several years the median household income has declined over $4,000, people are working fewer hours because of obama care, you scratch the surface and people are hurting. >> tomorrow's jobs reports will provide another scenario where the economy is heading. president obama hopes to give democrats like senator mark udall something to brag about. i'm john harwood in more son, colorado. >>> still ahead, would you buy a car from warren buffet. why he decided to get into the auto selling business. >>> warren buffet is getting into the auto business, his company, berkshire has bought the auto dealer. the economy has rebounded and that caught buffet's attention. phil lebeau has more. >> reporter: it is the big business that has made a big comeback, running an auto dealership. now, warren buffet is getting into the game, buying the tire group which is the majority of the owners around the u.s. >> this is just a very, very good operation. the partnership approac

predominantly in the advanced economies go but up only the advanced economies.e are dealing with the challenge of creating jobs for those people looking for the man making sure that those are coming to the job market in all cultures of the world have the means to access it and make a living end of it we currently have about 200 million people looking for jobs of which 759 of under the age of 25 to win and that is a we should focus on. focusing on the fact that apart from the 01 percent of the wealthiest in canada has been stagnant for most. you quoted me put it is not just a moral issue good that sustainable growth with the labor market that works better. some people think it's not right. there are countries that have tried and have succeeded. if you look, for instance, at some labour market policies is inside then successfully captures of germany, countries like esther oyer, countries like sweden. there is no magic recipe because it has to be specific predestine deal with the particularities of the skill set to the educational system and, indeed, the kind of gr

the risk of a slowdown in europe oslo economy. -- europe's largest economy.prime minister is in london to explain his economic strategy. "hopeless" and "downbeat" about the meeting according to a ceo. marketsnd out how the are dealing with the news. losses.eeks of friday.lose we saw significant gains. the bit of a catch-up rally on the dax. you see out performance on germany. i wanti get to the euro, to talk about some numbers. $914 billion. that is the amount that s&p 500 companies are poised to spend on buybacks and dividends. in 2014.5% of earnings unreal. it is called financial engineering. if you want to engineer a bull market, that is i you do it. orders dropping by 5.7%. it is not just about the dynamic with russia and the fed being a bid -- big trade partner, it is about the eurozone as well. the drop-off is remarkable. you are looking at around 10%. monday to friday, big gains for the dollar. friday was pretty incredible. gains across the board. the dollar high against every d10 currency. -- g10 currency. i want to bring up bonds for you right here.

the federal reserve is giving the economy a boost. unemployment is coming down and the houseing market is on the road to recovery. given the sombre news from the eurozone, it's not hard to see that we may be headed for a growth gap between the two sides of the atlantic. >>> the european union is the biggest trading partner of the united states. what happens in germany and the rest of the e.u. matters on this side of the atlantic. we have to ask the question - when will europe's economic weakness take a toll on growth in america. joining us to answer that and other questions is matthew bishop, globalisationed tore for "the econ mist", when does it happened? >> a bright spot is a relative term. no one in america feels that the economy is powering on all cylinders. we are talking about the best of a bad lot. >> it's relative. >> it is. there's a serious concern about what is happening in europe will eventually take a toll on america. one of the things happening in europe is a lot of the people in charge of economic policy there is hoping

economy and the china economy. there's $520 billion in trade every year. $520 billion investment really reflects, the whole picture of the economic relations. that's indeed so close a connection between china and the u.s. it is so connected. and it is so important relations. we must value that. and we appreciate very much the u.s. support of the development of the china-u.s. economic and comprehensive relations. we also know some key programs we must put together. in the bilateral treaty, between president xi jinping and president obama, it's a very important consensus. china and the u.s. will launch the negotiations on the b.i.t., based on the pre-establishment class. it is so important. it's a big achievement of the ecb. and now all sides have that very deepening concern over that negotiation. i am glad to report to you that the pact of the treaty has made big progress on clarification. both sides, comparing each sides to the pact. based on the agreement by this year at the ecb, into next year, both sides should