Another year of high unemployment?
Former Secretary of Labor Robert Reich talks with Stacey Vanek-Smith about the unemployment picture, and possible solutions to create jobs.
Robert Reich (Robert Reich)
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TEXT OF INTERVIEWS
Stacey Vanek-Smith: No matter whose numbers you believe, nearly 10 percent of this population is unemployed. And pretty much everyone agrees the economy can't really recover with so many people out of work. Robert Reich is the former Secretary of Labor and is a professor of public policy at Berkeley. Good morning Robert.
Robert Reich: Well good morning Stacey.
Vanek-Smith: So it seems like job losses just keep mounting. Is there a light at the end of the tunnel?
Reich: Well eventually. But things will get worse before they get better. The experts I talk with expect double-digit unemployment through most of next year.
Vanek-Smith: I thought that we've been hearing a lot about how we've kind of turned a corner in this recession?
Reich: Well we may have turned a corner, but jobs are the last things to come back in a recovery. And this time around, I'm afraid that they will be even slower because of the huge borrowing binge that led up to the recession. Consumers and businesses are reducing their debts and cutting their expenses, which means less demand for all the goods and services that people produce. And that means fewer jobs. Profits are up, but in many companies that's because they're cutting payrolls.
Vanek-Smith: What does another year of high unemployment mean?
Reich: Obviously it means hardship for millions of American families. Right now, 1 out of 6 Americans who wants and needs a job is either unemployed or underemployed.
Vanek-Smith: So Robert, what is a possible solution to this pretty bleak-sounding job picture?
Reich: Well I wish there were a simple solution, Stacey, there isn't. There's no magic bullet. Next year is a mid-term election, so Congress and the administration are going to want to do everything they can, or at least show that they're doing everything they can. So expect for example, a new jobs tax credit for small businesses that create new jobs. I'd also expect more small-business loans, continuing spending from the stimulus package. That's going to help, that continuous spending from stimulus package because much of it will be spent next year. But it's going to be offset by the states, which are cutting their budgets and laying off workers. The states are engaged in a kind of reserve-stimulus. So the White House might try to increase or extend the stimulus.
Vanek-Smith: In other words, we're going to battening down the hatches?
Reich: I'm afraid so, Stacey. I wish this could be a more upbeat report.
Vanek-Smith: Robert Reich is the former Secretary of Labor, and a professor of public policy at Berkeley. Robert, thank you.
Reich: Thanks, Stacey.
Comments
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From Mountain View, CA, 10/30/2009
Reporter Stacey Vanek-Smith opened the segment with, "No matter whose numbers you believe, nearly 10 percent of this population is unemployed." In fact, the number is far higher than that when you factor in those who have stopped looking, are off of the employment rolls for other reasons, or are underemployed. Robert Reich himself cited "one out of six," which is nearly 17%. In my view, we will never tackle this issue as fully as we need to if the numbers are underreported. Accordingly, I ask that, in future, you use all-inclusive numbers, not limited base numbers, and both types of information are available from the Bureau of Labor Statistics.
From Atlanta, GA, 10/30/2009
I would challenge Mr. Reich's position that "The states are engaged in a kind of reserve-stimulus" What else would you expect? They can't print money like Washington, who is engaging in a future reverse stimulus by inflating the money supply. I heard lots of statement of the obvious here and very few solutions.
From Oak Harbor, WA, 10/30/2009
Referring to Mr. Reich as "Mr. Reich" or "Professor" would sound more professional, especially since this is a professional broad cast. Respect and civility make us better people.
As for the subject of this discussion I agree things will get worse before they get better.
All the fancy manipulations of Wall Street Washington (intentionally described as one entity) will not produce something real and positive in the economy. It requires gainfully employed people to turn this economy around.
"10 percent unemployed means 90 percent employed." I'm so sick of that argument. This country is so deep in debt, so structurally weak, so educationally and medically behind that it requires everybody to have gainful employment so they can reinvest in themselves, their children and this country.
From Dallas, TX, 10/30/2009
I dont see anything wrong with Robert being referred to as, well Robert! It is his name after all! Maybe as a young American I just dont see the necessity for all these pointless formalities.
From Tallahassee, FL, 10/30/2009
It was startling to hear former Labor Secretary Robert Reich referred to as "Robert" three times during the interview. It was grating and detracted from the interview. Would the interviewer have called former Secretary of State and General Colin Powell "Colin?" Or would she have called former President George W. Bush as "George?" It was inappropriate.
From LA, CA, 10/30/2009
Stacy:
'Good morning, "Robert"?' I have never, ever heard an interviewer call a guest by his first name only. It seems disrespectful, even infantalizing. Why not call Robert Reich Professor Reich or Mister Reich or Mr. Secretary? Even if you are his best friend, because we wouldn't know that.
Thanks.
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