. >> i think there is no question that there are what economists call historesis. people have a very hard time going back to work. if you look at what the congressional budget office thought the american economy's potential was in 2014 as of 2007, and you look at their estimate today, it has declined by close to a trillion dollars. that trillion dollars, that is more than $3000 for every american. that is not what we are producing. that is what they think your potential is to produce. that is because worker skills have atrophied and that is why it is so urgent to promote growth in the short run because growth in the short run also raises the level of long-run potential. >> when you look at unemployment and the budget deal that will be voted on soon, next week, what happens -- i was struck by this what happens to people who can't get unemployment insurance, who cannot get it extended and have no possibility of a job? what happens to those lives? >> it's tragic and there is increasing evidence that the children of those people end up being much less successful in sch

>> i think there's no question that there are what economists call historesis effects. that refers to history dependence. people who have been unemployed for two years often have a very hard time going back to work. that's why it's very interesting if you look at what the congressional budget office thought the american economy's potential was in 2014 as of 2007 and you look at their estimate today it's declined by close to a trillion dollars. that are trillion dollars, that's more than $3,000 for every american. and that's not what we are producing. that's what they think our potential is to produce. and that's because we haven't invested in capital. that's because workers' skills have atrophyed and that's why it so urgent to promote growth in the short run because growth in the short run also raises the level of long run potential. >> rose: when you look at the unemployment and the budget deal that will be voted on by assume next week what happens-- and i was struck by this-- what happens to people who can't get unemployment insurance? who can not get it extended and