Dangerous Territory

" Employment -- double digits in October climbing to a stunning. Ten point 2% the bad news came the same day the President Obama signed a bill giving out of work Americans up to twenty more weeks of benefits the bill also extends until. April 30 a tax credit. For first time homebuyers that was set to expire. At the end of this month we're back with Dan heavier hand -- And also joining us is Wall Street Journal assistant editorial page editor James Freeman so -- you've been looking. At the details of this jobs report. Are the details any. More reassuring perhaps than the Tom nine."

" Leo and the reason this number was surprising to economists kind of scary. Is that there -- some other good news in the economy where you thought this is where jobs would start to rebound but the -- corporate profit efforts -- growth is up. Productivity surged after employers cut payrolls to the bone. This would be the point in the cycle where you'd expect some hiring again but. Ten point 2% unemployment it's really closer to 20% if you count people who have given up looking. Or who were working part time because we can't find a full time job so. It's basically there's something dragging the jobs down and I think he'd have to say it's the Fear Factor robot addition -- what's going on in Washington."

" Well in the for the future there's -- Number that I focus on which is a -- average jobs worked in the weekend -- 33 when more normal -- forty what that tells me is that you're gonna have. Maybe a ways to go before people start to hire new people like forty hours a week because they're gonna. Make that work we go out people working part time temporary got to work going to be hired first for more hours. And that means the job growth may be -- company yet in coming."

" Well I think that's right and I take issue with just one thing Jane -- which was so employer's been cutting jobs -- I think they're actually coming into the bone mountains. I mean the only reason productivity is up this because they're getting more work out of the people we've got and Johnson & Johnson just this week announced was going to lay off 7% of its workforce that's a huge number of people. Healthy company if Johnson Johnson is still laying people -- you know there's got to be a lot more marginal companies out there doing the same thing so there is really no."

" Upside at the moment can I suppose in Washington -- very the panic among Democrats is going to be palpable here and they're gonna scramble to try to do something because they promised. -- when they pass a stimulus that -- we're past you could keep the jobless rate below 8% below. 8% now it's 2.2. Percentage points higher than that so they're scrambling now with unemployment benefits. What else is is in the policy -- here."

" Well not mean that's absolutely right if you look we -- just -- by the Virginia election we've got looking at this race and here's a guy who went out there and he wanted. Almost 60% of the state Bob McDonnell by talking about the need to create jobs not all the stuff that's going on right now in Washington about. Health care and climate change -- there's a growing feeling out there among Americans that. You know Democrats -- warrant for -- growing government -- they are growing jobs. So you Saudi unemployment extension you -- the in the extension of the tax credit first time home buyers is is all designed to give them a little bit of cover. But they are a little bit in a pickle right now because there are stuck in the middle of this health care debate they feel -- they can't do anything else until that debate is over it may well get dragged out into next year. And all the while the American public is saying what have you done for a slightly on the job front."

" Let me let me give you the definition of insanity economics and he has a five point 4%. Surcharge on small businesses that create jobs with a ten point two unemployment. -- and yet that five point 4% surcharge is in the house health care bill."

" Well you know looking at this is the glass is half full the if they they would just stop the insanity that there -- But people eager to hire I mean it we we're getting in good news for my retailers. Starbucks is is getting more bullish I mean this is the ultimate discretionary purchase right so. So all Washington has to do say we're not gonna go over the cliff on health -- cap and trade and I think you'd see you see this economy you know what you think we have."

" The jobs for if they just stopped you agenda that you would begin -- your employer would begin to say you know what OK I can I know what my costs will be per person I higher. I'm willing now to hire somebody. Well -- gonna insists that they keep going with the health care bill but you know I think we may be kind of a tipping point here. A lot of Democrats are getting nervous. Senator Jay Rockefeller West Virginia card carrying liberal if ever there was one. Said this week. I don't think the people on my -- gonna stand up as they're cheering over Copenhagen which is the climate change conference next December he said people are concerned about jobs. -- more Democrats are talking like this I think we have a problem with -- health care -- Kim the some Democrats are -- jobs tax credit which would be temporary giving employers. Certain amount of money for each new hire they tried this in the 1970s though and it really didn't work Jimmy Carter. Abandon -- after about a year or so is that where they're going here and other jobs tax credit."

" Well you know they're looking for something that they can do they can say they've passed and hopefully not also college stimulus which is starting to become a dirty word. You know one of the problems of that idea that isn't that even some tepid Republicans support and if you saw the unemployment benefits. And that will pass this weekend and also the -- tax credit and and the support with which they were passages looser suggests that Republicans too are a little worried about suggesting that they're doing something. Here in Washington. That you know but -- That but there they are getting a bit of running out of stuff that they can actually propose -- and one of the problems that they're stuck doing the things that look like they're actually gonna meet the economy war."

" Maybe if we pass another stimulus we get -- jobless -- of the thirteen or 14%. Call the whole thing off. We have to take one more break."