and kevin hassett, an economist who has written papers on this subject. he's served in republican administrations and is now a senior fellow at the american enterprise institute. welcome to you both. robert kuttner to you first, let's start with the united states, whatre somexamples of policy right now in this country that you believe are hurting economic growth? >> well, we had the new year's deal that president obama made with the republicans that was supposed to head off the so called fiscal cliff. that took about $200 billion out of economy. we raised social security taxes two points. we raised taxes on the top 1% and to compound the damage we have the sequester which was executed in mar. those two things together according to the congressional budget office, which say bipartisan outfit, cut the growth rate in half this year from a projected 3% to a projected 1.5%. if you are in a depressed economy and you reduce purchasing power further you are only going to make the economy more depressed and far from getting closer to an improvement to debt ratio y

liz: kevin, no, kevin hassett, thanks very much. david: thanks, kevin. appreciate it. will have him again. that was great analysis i think. david: efforts shifting from rescue to recovery in oklahoma as the cleanup from monday's tornado begins and early estimates are in the billions of dollars. how do you convince companies to come back to oklahoma in light of these disasters that keep happening? we'll ask the head of the local chamber of commerce. liz: plus sony discussing a spin-off plan from its famous activist shareholder daniel lobe. will it bow to mounting pressure and could it unlock shareholder value? is this actually a good idea? we have got the details next. ♪ . welcome to the new buffalo... where new york state is investing one billion dollars to attract and grow business. where companies like geico are investing in technology & finance. welcome to the state where cutting taxes for business... is our business. welcome tohe new buffalo. welcome to the new buffalo. welcome to the new buffalo. new york state is throwing out thold rule book to give your business

kevin hassett. mark zandi. we'll stick around the rest of the show. thank you, guys. utely do. coming up, more on the market reaction. jobs report and the stocks on the move ahead of the opening bell. first, before we do that, new sec chairwoman mary jo white. we will bring you the details after the break. >>> monday on "squawk box", words of wisdom from the oracle of omaha. three hours with warren buffett on the markets, the economic recovery and berkshire's portfolio of companies. live on "squawk box" starting monday at 6:00 a.m. eastern. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." governor of getting it done. you know how to dance... with a deadline. and you...rent fr

kevin hassett. though the structural mismatch that employees have and employers need also plays a significant role. my question is -- how much of today's unemployment is cyclical and how much is structural? if a significant portion of today's unemployment is structural, then how does a highly accommodative monetary policy, as the fed is pursuing, boost employment cyclical or structurally over the long term? and if a significant portion of today's unemployment is structural, do we expose ourselves to significant risk of price inflation in the near term by continuing a highly accommodative monetary policy until employment -- the the employment rate drops below 6.5%? on the first question, how much is structural, nobody knows precisely. it has to be estimated. f1c makes its own. if we have 7.5% unemployment now, it is probably a couple of percentage points of cyclical unemployment, which can be addressed by monetary policy. the rest probably cannot be addressed by monetary policy except that cyclical u