welcome back to conversations in the great minds i'm speaking with dr jared bernstein former member of president obama's economic team and previous chief economist and economic adviser to vice president joe biden he's currently a senior fellow at the center on budget and policy priorities. dr bernstein today a. new york times suggested that there's you know trying to come up with some logic about why europe is all concerned about the debt crisis and let's throw the money basically at the top at the bondholders let's keep them safe safe and solvent what happened here with the banking that we were just talking about why everybody's talking about. tax cuts and not about jobs and these kinds of things that the and the most macro sense in the in the biggest picture possible he said maybe this is all about what randy a's you know the old kind of henry george notion even going back to that economic school or or arguably even ricardo if you go back to the value theory of labor and take it forward anyway that it's the that let's protect the bondholders basically let protect wealthy people right

i'm jared bernstein. >> tom: that's "nightly business report" for monday, june 13. i'm tom hudson. good night everyone, and good night to you too, susie. >> susie: good night tom. i'm susie gharib. good night everyone. we hope to see all of you again tomorrow night. this program was made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> more information about investing is available in "nightly business report's" video. to order this dvd, call 1-800- play-pbs or visit online at shoppbs.org. >> be more. pbs.

and jared bernstein. he was economic policy advisor to vice president joe biden until this past april. from boston ken rogoff of lar vard university, previous chief economist at the imf. i am pleased to have all of them here. i will start with paul krugman. what's happening to the ecomic recovery? >> there really has never been much of an economic recovery. when all is said and done i like to look just-- what are the fraction of adults who are employed that fell off a cliff between 2007 and 2009. and it has really not recovered at all it is bouncing along. so basically we' in a holding pattern. in an economies that's growing but job growth is no faster than population growth. >> rose: does job growth have anything to do with increased prottivity. people are still doing more with less in terms of workers. >> that always happens. what ihappening now, it i not that there isn't work for these workers to do. it isn't that there isn't spending power. people aret spending enough to employ the people that we have

be seeing more of that right after the break we'll continue our conversation with economist dr jared bernstein in our conversations with great minds. you know sometimes you see a story and it seems so. you think you understand it and then you glimpse something else here so you saw the part of it and realized everything you thought you don't know i'm sorry there's a big. welcome back to conversations the great minds i'm speaking with dr gerard bernstein former member of president obama's economic team and previous chief economist and economic advisor to vice president joe biden is currently a senior fellow at the center on budget and policy priorities. dr bernstein today a. woman's op ed in the new york times suggest to there's you know trying to come up with some logic about why europe is all concerned about the debt crisis and let's throw the money basically at the top of the bond holders let's keep them safe and solvent what happened here with the banking that we were just talking about why everybody's talking about. tax cuts and not about jobs and these kinds of things that the and in the m

every one of them, jared bernstein, larry summers, peter or zag, christina romer and most recently itaustan goolsbee, all of them leaving. and you know what, the much ballyhooed daily economic briefing the president was going to get, it is gone. unemployment is going up. job creation down. and there doesn't seem to be any real plan to deal with it. so republicans are jumping all over this. here's what mitt romney told piers morgan last night. >> right now the message that you're hearing from republicans is government is too big, it is too intrusive, and the economy is a wreck. people are in crisis and the president doesn't understand it. just the other day, the president said, look this 9%, 9.1% unemployment is a bump in the road. this isn't a bump, mr. president. these are americans. >> joining me now from harvard, cnn's david gergen and from los angeles, former labor secretary robert reich, author of the book "after shock." welcome to you both. david, let me start with you. isn't this getting untenable at a political level for the white house not to have a specific, articulate clari

house, here you have really the four -- four of the top economic people have left, larry summers, jared bernsteinhristina romd all have been unhappy with things then administration, or they talked about trying to get the president to focus on the debt without success and, they felt it was put off done the road and what you see is a sense, the democrats have both houses of congress and the white house, kiosks, for 2 years, did everything they wanted to do, did every kind of policy changes they wanted from stimulus to obamacare to the dodd frank financial reform and here's what we have as a result. unemployment is now higher than when the president took office. not only to suggest everything that happened is his fault but the fact is that the recession ended officially, two years ago, in june of 2009 and we're in june of 2011, now, and unemployment is going back up. housing starts have reached a new bottom, you have consumer confidence along the bottom and all kinds of measurements telling us the economy slowed down despite record low interest rates, despite enormous amounts of pumping by the gover

jared bernstein, who was the chief economic adviser to vice president bind, he left as well, jared, presumablymic news, which i don't have to tell you about, and this morning, a poll in the "washington post" indicating that about three out of five americans don't even believe the economy is recovering. about nine out of ten americans have a negative view of the economy and about 45 -- about 60% give the president a very -- very negative marks on his handling of the recovery. at the same time, those people polled in this "washington post" poll said 45% of them now give -- trust the republican gop congress to handle the economy better than mr. obama, who comes in at 42%. so the economic numbers make you wonder why all of these economic advisers are leaving to go become to the comfy confines of ac deem yament not. doubt. then this old story, governor rendell, they are going to be stripped of their tenureship if they don't rush home. come on the i don't believe t mika doesn't believe it. come on, man. >> you believe it. >> okay. you don't believe it either? what do the futures look like? >> the fu

as recently articulated by jared bernstein on the center of budget priorities. research and development can be expensive and hard to capture profits. firms often need assistance in applying economic innovations to the production process. manufactures often face barriers to accessing credit for entry expansion and innovation. we need a ro bust manufacturing strategy because the fate of the industrial sector of our economy is too important to be left to a gaggle of competing and satisfying theorys of why it's been declining. the decline of manufacturing is not inevitable or desirable. high regulatory costs or inefficiency. let's look at germany. germany's global shares of manufacturing outputs and exports have held steady over the past decade while america's have declined and china's has risen sharply. average manufacturing wages in germany is $48 an hour. in the united states they're $32. germany has a strategy for boosting manufacturing focused on skills, technology, investment, demand and centers. labor business, government and collaboration. aggressive trade p