the u.k. and germany are strong economies-- the 5th and 7th largest economies in the world-- and they continue to be very significant trading partners, even though their growth rates are stagnant. >> reporter: people move for many reasons-- not just a new job. it could be marriage, or a desire for a warmer climate. but there's no denying migration patterns tell a lot about regional economic differences. so where are workers moving to in the u.s.? >> washington d.c. has been the top destination for several years now. i think that's a reflection of the growth of not only governmental activity in washington, but it's defense contractors, and folks who are there to protect the interests of their company. >> reporter: oregon, nevada, north carolina, and south carolina are also popular places to move. on the other hand, states like new jersey, illinois, west virginia, new york, and new mexico had an exodus of workers. many of those departures are rooted in lack of jobs, high taxes, and expensive housing. economists are pleased to see a pick-up in moving, because it reflects greater job opportunities

the o.e.c.d. says. that will actually boost economies and make. make it easier for people to invest make it easier for jobs to created and so on moving on back in september your members very said to look into the practicalities of holding a general strike so far we've seen no general strike. does that mean that you found that it was impractical now we're still looking at the issue and seeking views from unions about it i mean i have to say the vote that was taken congress is an expression of the huge concern that unions feel about what is going on in the economy and that's something that shared across europe across the across the world what we're looking at is what is the most effective way that we can change government policy on where government is actually creating enormous amounts of damage and unions are looking for you know what is the way to stop this happening and is striking the way well striking is something that trade unions do the withdrawal of labor is a fundamental human rights and sometimes it's the most effective way to get a resolut

guess what i thought about the global economy. i actually think that growth will be moderate with not necessarily a lot of volatility around that. that it might be better, might be worse. >> see, i'm hearing a lot of positives about the u.s. economy if washington can get its act together, but europe is still a big issue. what do you think about europe right now? have we made progress and what's to come? >> well, i think there's some big long-term things they need to do in europe over the next five to seven years. they clearly have bought time with what mario draghi did, but they've done some structural forums. they've raised their pension ages. they've done labor market reform. nothing has happened in the united states. actually nothing. there's reasons for optimism from the shale. people are excited talking about that. and there's some optimism coming from the easy money, i suppose, still. but i think in the united states, you know, if we get to the consensus, which needs to be 3% at the end of the year, i think that would be good

the private economy did well up 3.4%. it was the government economy that fell. d like to see us finishing the spending cuts of the government. shrink the government more. grow the private economy by 5%. that is my vision. now there is more bad news for new jersey senator bob menendez as the fbi raids the offices of one of his close financial backers. will it present key evidence in the alleged prostitution scandal surrounding the senator. it's all unconfirmed but the potential legal fallout is huge. >>> israel takes no chances. the air force launches two air strikes in syria preventing the assad regime from transporting chemicals and weapons of mass destruction to hezbollah. if the red line is crossed israel will attack again. we cover it all. "the kudlow report" begins now. first up we learned today the fourth quarter gdp fell slightly, much to everybody's surprise. so the white house is blaming republicans for the fiscal tax cliff and the spending sequester which i think is hilarious. they invented the sequester. we have had tax, spend and regulate policies for

how much damage is there to the economy from in bill? >> well, i prefer the least rotten apple than spinach. i think that the two big problems here, people who believe that the rich should pay more do not understand the effects of marginal rates. when you raise marginal rates-- >> the next dollar of income that you earn. >> right, it lowers the incentive of the people that you want it take risk and to innovate and to create. that's one problem. so it will affect the growth of the economy. the other problem is, it does affect tax revenues. the guys with the green eye shades say well if we raise the taxes this much, we'll get this much more revenue. if you lower the incentive of people to take risk, generally what happens, revenue does not come in. >> paul: you don't get as much as you think you'll do. >> exactly. >> here, mary, look, the economy seemed, the stock market loved it, the hs blew out the next day and up based on the prospect that something would get done. housing markets recovering. i mean, the economy, the job market not great

now you're telling me that's going to boost the economy. , barnes and nobles, cutting back stores, like 200 stores over the next decade. are they going to not cut back their stores because we're cutting transportation spending and education? i don't understand how this works, larry. what's the mechanism here? >> i don't think "a" leads to "b," but i want phil to set you straight. >> i think they're cutting back their stores because of something called the internet, i don't think it's because of their expectations about government spending. the reality is that every dollar that the government spends has to first come out of the private economy, in this case because we're in a large deficit position, it comes out there borrowing. i think it would be much better spent in the private sector. more over, if we can't even get these $85 billion in rep maining sequester cuts, it was supposed to be $109 million, but they kicked the can down the road. if we can't get it in a $3.5 trillion budget, i don't think there's reasonable expectation that anythi

to cross out the prospects of the russian economy in two thousand and thirteen i'm joined by my guest in moscow jacob no he's the chief economist at morgan stanley ben ayres he's the editor in chief of business new europe and yes laugh lisa volek he is the chief economist at deutsche bank russia all right gentlemen crosstalk rules and i mean you can jump in anytime you want before we talk about the swan analysis of the russian economy ben i want to go to you i mean newsweek a few days ago a writer on matthews and we have ed lucas over at the economist and you keep telling me for about a decade now that this economy is about to collapse now you're a journalist as well you don't say the same thing where's the disconnect. people tend to focus on the negative part of the story and the trouble at the russia story is that there are lots of problems and if you focus on those then you can forecastle source of gloom and doom the imminent collapse of the oil price that will bring the russian economy down in flames but the reality is that it continues to grind away and make progress and to you i

so, you know, the u.s. economyexpanding through most of the 1930s, after a terrible big slump at the beginning and another slump later in the '30s. and then it was expanding in between. but we call that whole episode the great depression because it was all a period of high unemployment and a lot of suffering. and, of course, we're in that now. it's not as bad as the great depression. you know, it's a great recommendation. not as bad as the great depression. it's terrible. we have a persistently depressed economy, persistent lack of jobs. so in that sense, it's a depression. and there's also a more technical meaning. depression economics is when the normal things you do to boost the economy, have the federal reserve cut interest rates a little bit, are no longer available or effective. it's a situation where the normal rules of what you -- of economic policy, have to be put on hold, and you really need to do extraordinary stuff. >> well, the fed has kept the interest late very low. and it has made a big difference,

the debt limit fight heats up it's looking more and more like the republicans will try to blow up the economy so they can get their way republicans refused to raise the debt limit how much damage will that inflict on our economy and reagan created tons of public sector jobs to help lift america out of recession in the early one nine hundred eighty s. and republicans happily went along with it then so why are they providing president obama for doing the exact same thing today. you need to know this want to tell you about a war being waged in america today. history is littered with the corpses of those who thought they could conquer the world or at least the known or important world through force of arms alexander the great caesar hitler the celts the ottomans the catholics various european asian and american empires in the seventeenth century dutch the eighteenth century french to the one nine hundred centuries british and the twentieth century soviets and americans others like the aztecs are less well known to westerners europeans and asians but no less ambitious all use some variation on war

why not what's really happening to the global economy with mike's culture there are no holds barred look at the global financial headlines tune into cars report. hello and welcome to cross talk russia's economy in two thousand and thirteen what are its strengths weaknesses opportunities and threats is the russian economy becoming more or less competitive is the pace of reform on track and is russia prepared to withstand external shocks. to cross the prospects of the russian economy in two thousand and thirteen i'm joined by my guest in moscow jake up you know he's the chief economist at morgan stanley ben ayres he's the editor in chief of business new europe and you just laugh lisa volek he is the chief economist at deutsche bank russia all right gentlemen crosstalk rules in effect i mean you can jump in anytime you want before we talk about the swan analysis of the russian economy ben i want to go to you i mean newsweek a few days ago a writer on matthews and we have ed lucas over at the economist they keep telling me for about a decade now that this economy is about to collapse now you

they didn't make enough effort to increase incomes and expand the economy. i'm determined to change the basic philosophy. i'm going to boost the profits of japanese companies to create jobs and increase wages. >> government leaders say the stimulus will help them create 600,000 jobs. they say they'll push through a supplementary budget on tuesday to finance the package. nhk world has covered obvious policy during his first round of prime minister and closely watching the situation today. tell us a little bit more about the stimulus measures. gene, the size of the package is the largest since one worth $150 billion during the height of the global financial crisis in 2008. japan is already in recession after two straight quarters of negative growth. china is slowing down, the eurozone is still suffering and the u.s. economy remains precarious so abe is determined to turn around the japanese economy. of course from is a political dimension to this. japanese vote again in july in the election for the upper house and abe needs to show he's doing something to speed

rules and i mean you can jump in anytime you want before we talk about the swat analysis of the russian economy ben i want to go to you i mean newsweek a few days ago a writer on matthew and we have ed lucas over at the economist he keep telling me for about a decade now that this economy is about to collapse now you're a journalist is well you don't say the same thing where's the disconnect. people tend to focus on the negative part of the story and the trouble at the russia story is that there are lots of problems and if you focus on those then you can forecastle source of gloom and doom the imminent collapse of the oil price that will bring the russian economy down in flames but the reality is that it continues to grind their way and make progress and. you're i mean look at the the situation in europe of the facts i mean russia at the moment although the economy has slowed considerably from about four percent stuff in the last year to about two point two you said your external reasons or is it domestically. both i think the more the problems in europe than anything else has dragged russia ye

we're going to build the new economy within renewables. that is where we need to put our investment. if you look at the withdrawal of a special provision of oil, gas, and coal, it tells a story about how we think you invest in the future. >> thank you. just a couple of thoughts. years ago i was taught what was called a harvard case study approach to solving problems. it was taught in business school and the idea was to your given this complicated situation with different things that would be a good thing to do. part of the discipline was that you should pick the number one thing, the first and essential element you have got to deal with. frequently that was the situation that would determine whether the company was going to succeed or fail. but as i take a look at the things that you are looking at dealing with within the budget, to some degree we are dealing with peripheral things and it seems that there has been pretty good emphasis, but the and velvet -- the elephant in the room is the tremendous growth of entitlements. i heard reference

. >> the economy is shrinking and the economy is playing the blame game. charles: welcome, everyone, i am charles payne in for neil cavuto. the administration is saying that it was hurricane sandy and defense spending cuts and uncertainty about marcotte. one more quarter and we are in a double dip recession with us tonight is xander -- sandra smith. >> that's right, they are trying to use this report. uncertainty when it comes to tax dollars in borrowing more money. charles: the mass media, i saw a report in new york. six reasons this wasn't a bad record. did you see that? >> the media was trying to spin this in every way that they could. they were trying to make it look like a god for them. what we need to do is say that as a lack of economic growth policy. where is the job growth policies? right now we have consumer confidence levels that we just got this week. they are plummeting because people are seeing their paychecks shrink as a result of the expirations of payroll tax cuts. people have less money to spend, they are less optimistic about the future.

in the administration of the economy. is absolutely lost. i have never seen more dismay in the business community in terms of what they feel about the national leaders of the economy and when we are now witnessing. i have been watching it for 34 years. so i think that is a real problem. if he doesn't care, that's his problem because it's going to have direct and negative effect on the economy. cheryl: but the problem, i would say for csn leaders the c'mon the business network like yourself is on the one hand you're frustrated with the policies are seeing, extra regulation, texas, but at the same time this is what we have for four years. you still have to have some type of relationship with washington and with the administration. how you balance the frustration with doing business on a daily basis? >> i balance it easily. i write editorials attacking policies which i have done quite frequently on the economy. frankly, it is clear. you can see, no effect. does not mean there were wrong. i still think it or recommend that big

but nothing, again, with the slowing economy, you're getting news out of the uk. in at 2.25, 2.5%. so it's really a muddle through economy. sdmra muddle through, that's what mortimer says. ross, it's been such a pleasure. stay warm out there. see you back here on monday. >> yeah. i won't be in on monday. i'll be in on tuesday. but that's it from "worldwide exchange" coverage in davos. "squawk box" is coming up next. >> our special coverage starts now.

we will turn to another aspect of the economy. one that showed pretty good results, car sales in 2012. we will talk about not only the actual sales but their contribution to the economy with justin hyde of yahoo auto. later steven ellis from the taxpayers for common sepnse wil look at the sandy emergency bill the $60 billion bill that has troubles because of things that were added to it as far as projects and some people call it pork. we will look at that with stephen ellis later. first we want to let you know hat if you turn to book tv and american history tv you can see the work of our local content vehicle. they travel around the country talking to people and finding interesting places to give you not only a sense of the places they are visiting but how they play out historically and through their literature. providence, rhode island, is the focus of this weekend january 5 and 6. we will learn about the history and literary life to give you a sense of what is going on with the network as far as specifically what you can see you

economy. i don't know if you want to talk about the broader economy or not, but we can come back to it if you like. we have been seeing some improvement in the labor market. it is still not where we would like it to be. growth has been moderate. there are some positive signs to look at. one of the key positives that are already made reference to its housing. as you know, house prices in the u.s. fell 30% and the amount of construction fell extraordinarily over this recession. now for the first time really since 2007 or 2006 we are starting to see increases in production, rising house prices will affect household wealth. so that's one positive factor that will help us have a better year in 2013 and in 2014, i hope. if a few other things that are positive, one is that state and local governments, which have been in very contraction in remote because the loss of tax revenue during recession and laying off people, having postponed spending, they are in much better shape now than they were in a few years ago, including michigan. as a result, they will not be the drag on the economy they have been t

the economy is getting better. then i said black unemployment is almost 2% worse than it was when the president took office. general powell had no answer for that. yet, 93% of blacks vote for barack obama. >> correct. >> bill: it's worse for them now than it was four years ago. >> let's cut through all the spending and get down to it other part of it is people flat out don't like the republican party. a lot of obama what he is benefiting here the view of the republican party is a waste -- a negative party of no everything. >> bill: that may be true. >> not maybe, it is true. >> there is emerging leadership in the republican party that people are responding to. however, when you are asked a question, do you approve, you can say i don't approve of president obama or the republic party. but the 60% who are answering approve of barack obama. >> that's right. >> they do. even though the economy is bad after all this massive spending. >> you say it is bad. it is better than it was. >> bill: no it isn't. >> it is too. how

they are continuing to boost the economy would he make of the fed's move?cause they are talking about different procedures. you know, they did talk about the parts of the economy, which we actually have seen in terms of the gdp numbers, but there are some other signs of slow growth strength, particularly in the housing market and it doesn't change the fundamental view of the economy that is growing but not great. gerri: that's a long way to go, professor. the fed itself says that it's going to keep it but to the title. how long might that take? >> the previous discussion was telling us that they expect the end of 2016 to be consistent with your threshold. it is a big problem for them. gerri: it seems to me all the advanced countries, we are barely growing, if at all. shouldn't we be concerned that the federal reserve has tripled its balance sheet at this point? >> there are always issues but i think that a lot of people have gone this dead wrong, which is they're looking at what is called goldstar monetarism that extends the balance sheet and that means the

hard slap in the face tonight from reality. economyught to be improving shocked experts and shrank in the final months of last year. huge falloff from gain last summer. white house correspondent wendell goler with an explanation and reaction. >> less than two weeks after the president said in the second inaugural address that an economic recovery had begun, the commerce department said not so fast. the biggest drop in defense spending in 40 years combined with a decline in exports and slow growth in company stock piles slashed economic growth from 3.1% in the third quarter to minus 1/10th in the fourth. first negative quarter since 2009. white house downplayed the report and gave the republicans part of the blame. >> home prices are starting to climb back. consumer confidence overall has been rising and consumer spending is rising. but there is more work to do. our economy is facing a major head wind that goes to your point. republicans in congress. >> carney cited comments by house speaker john boehner about using threat of across-the

it's not the economy. it's not macro environment. it's our own politicians in washington that are causing our economy to be slow and our unemployment to be high. that's the country's going to hell when that occurs. 535 people are causing, you know, 240 million people to suffer economically. that's just not right. >> amazing. dick, good to have you on the program. thanks so much. >> thank you, maria. >> we'll see you soon. dick kovacevich joining us. >>> up next, we're "on the money," the daughter of beatle and 29-year-old fashion phenom have in common? three letters that make up the fashion world's biggest power houses. ppr ceo on the >>> from high tops to awe couture. conglomerate ppr blankets the industry with 20 luxury and lifestyle brands. like kate middleton's favorite, alexander mcqueen, gucci and mccartney. athletic retailer puma. francois-henri pinault, husband to actor thelma hyatt, oversees the $22 billion company founded by his father. his goal, to turn the holding company into a fashion and sports power house, finding its

the point is, does this kind of thing affect the economy? the answer is unequivocally yes, it does. >> if nothing else got better shall yes, it would, but the parts of the economy that-- >> it's nothing, it's not going to make other things better. what, as walker said, you think we're going to fix the social security fund because of this? >> gary is right. and the solution is-- >> go ahead, go ahead. >> although gary is correct, there's no solution where it could stay lower and yet pay off the benefits that it's supposed to be paying off indefinitely either. so the cuts would have to come if not from the payroll tax increase, through social security and hurt the economy through spending as much as it's going to by raising the payroll tax, the fantasy is making up for the difference of borrowed money. >> we're very good at that, walker, go ahead. >> i do not share at all jonas' utopian view, to redistribute anything in the way of benefits. one of most ineffective and inefficient created. we're in deep need of reform and congress better address

you're i mean look at the the situation in europe of the facts i mean russia at the moment although the economy has slowed considerably from about four percent starting to see it's about two points if you sell your external reasons or is it domestically more both but i think the more the problems in europe than anything else of trade for russia it is still growing the fastest growing country in europe and will continue to be this year and depending on what happens in the second half of the year particularly it should pick up and you know it will do better than everyone else but will still perform below its potential to russia story jake are you a big surprise to the economist when it comes to russia and no i think there is a there is a sort of deep rooted skepticism about russia among many commentators and i think it's not helps perhaps by some of the decisions that have been taken recently for instance about the the orphan adoption law but fundamentally you know i think russia is in a very strong position at the moment i think it ran a fiscal surplus last year had a current account surplus of

so ihink the economy is going to feel this. i think we're ging to be in recession the second half of this year. melissa: dennis, what do you think about that. >> that is just exactly wrong. i agreeith you, melissa. allowing the payroll tax to go up on 160 million workers in this country, 77%, from 4.2% to 6.2% was wrong and they shouldn't have done it at least not for the next year because of the economy. you notice nobody is talking about that because that only applies to people who make $110,000 and less. nobody was talking about them. they don't care about them. everybody was worried about the richest one or half of oners in this country. melissa: all over this network all day long peter barnes has been doing reports how everybody, there it is right on the screen. >> talking about in the debate that we just had in washington, nobody was talking about that. melissa: you're correct about that. >> that, i'm, so that is going to hurt. we shouldn't have done it. we should have been paying attention to those people who are going to

we can grow the economy. the best way to do that is to put american, middle-class workers back to work. to me, every time you talk about stifling the economy through these very aggressive cuts to services and earned benefits, you are not helping the economy grow. the jobs deficit, to me, is the biggest deficit we face. but we have a lot of other challenges. social security medicare are among bashar not among the most immediate challenges. if you ash social security and medicare are not among the most immediate challenges. we have paid some $15 trillion in payroll tax to take care of social security benefits. how much have we actually used in benefits received by all americans? $14 trillion. we have a one dollar trillion -- $1 trillion in cash. all the trillions of dollars we have paid towards this have earned interest to tehe tune of about $1.5 trillion. $2.5 trillion in unused surplus. why should we cover the cost of tax cuts for the wealthy? >> those monies have been tapped for other priorities. >> that is t

is it possible to raise taxes and grow the economy simultaneously? >> absolutely. i don't think that's the best model, i think the economy can grow in spite of that. >> you have art he said that we need to put the taxes on the back burner? >> absolutely. the one we will finish this later. we will have you guys back again soon. thank you all for watching this show. we will have you back soon. t bul you hear what we found out about made in america. also, markets hit new highs. what's driving the latest run? can it last? your smart fun about to shame you in public. tonight, we have the apps that keep you in line and on time. "the willis report" is on the case. gerri: "the willis report" is on the case more on those stories in a moment, but, first, when you buy made in america, how do you really know it's made in america? labeling laws are confusing, and some products, well, they just outright lie about where it's made. if you want a healthy economy, keep jobs at home, how can you be sure you do the right hing. to sort through it all is todd marks. todd, great to have y

if you strip out all the flaky stuff there, we're still in a 2% economy. out there, but fourth-quarter growth is fine. >> mark, you agree with that, dump the gdp report in the wastebasket? >> yes, i think it was expected. a lot of companies and people were paralyzed over the government discussions and i think we'll see acceleration move in the second half of the year now that we have clarity on taxes and so forth. >> let's say we ignore the gdp report and don't put much credence into it. do you want to be investing any differently post those numbers? >> i don't think so. i feel most remarkable about the gdp numbers, the market ignored it. we think you should ignore it and the market ignored it which means they are feeling the fed is bullying them into risk assets has finally taken an effect and they don't feel like they have anywhere else to go. >> right, right, right. that's what i was just saying a moment ago because you've got corporates sitting on a huge amount of cash, 3.6 trillion and they are paying out dividends what. are the alternatives today? ma

it's not the economy. it's not macroenvironment. on that are causing our economy to be slow and our unemployment to be high. that's the country is going to hell when that occurs. 535 people are causing, you know, 240 million people to suffer economically. that's just not right. >> amazing. dick, good to have you on the program. thanks so much. >> thank you, maria. >> we'll see you soon. >>> up next, we're "on the money" what the duchess of cambridge, the daughter of a beatle, and a fashion phenom have in common. three letters that make up one of the fashion world's biggest powerhouses. ppr ceo on the luxury consumer. >>> look for us on facebook/mariaboard romeo. >>> from high tops to couture. french conglomerate ppr blankets the retail industry with a staple of nearly 20 and luxury and lifestyle brands. like kate middleton favorite alexander mcqueen, gumpy, and stella mccartney, and puma. ceo francois, husband to actor selma hyak oversees the company founded by his father. he wants to turn it into a fashion and sports powerhouse, fin

the u.k. has turned over to a gambling casino economy part of the key scene a gulag economy because if you go back to two thousand and six the headline reads take from the poor to to give. super casino plan so here john redwood said he blames the poor he says it's not the casino companies that had documents from two thousand and six they clearly stated that they will not bother with areas that are not poor because they need the poorest of the poor in order to make any money in these casinos that's what i'm saying yes it is financial services when you put the pound into the slot machine and the ghetto it goes and i was more of pocket to pay his debt. it's a financial they're all consolidated it's all owned by the same glum aeration it's a genocide of the poor that's their poll so yes the final solution jack george osborne were to get that idea all right susan thanks so much for being on the kaiser report thank you max. state and first talking to us. me if you eat. food. the. government no longer represents the fear on the people or going to take the term. we. traditionally put into the revoluti