Sobering Number

" it is indeed about jobs and it is a sobering number and the sign of the times the US unemployment rate hit a 26 year high. A ten point 2% and that number does not even factoring in discouraged workers who have simply given up their search. And millions of part time workers who would rather work full time in fact one out of every six people who wanted work. -- unemployed or underemployed last month won in six. And that puts the actual unemployment rate at a staggering seventeen point 5%. The New York Times says it is almost certainly the worst jobs picture since the Great Depression. So when will the job market pick up again joining us live senior economic writer for The Wall Street Journal. And the author of the end of prosperity Stephen Moore thanks for joining us and hi good morning. So we have a full screen showing the so called total unemployment number for October 2009. At fifteen point seven million people. So what is included we mentioned it's sort of in this broader measure and why is it more accurate."

" Well and when you look at these employment numbers. The official unemployment number does not and I include what we called discouraged workers social workers who aren't even bothering to look for a job anymore because no businesses are hiring. And when you add that number -- them another 45 million Americans who don't have jobs. You mention the fact that the -- would be discouraged worker unemployment rate is now 18% you know what's even more tragic. It's that there are a number of big states states like California State like. Michigan and Ohio where the unemployed the real unemployment rate is closer to 20% that means one out of every five Americans don't have a job and as you just -- that's the worst employment picture we've seen since the great depression and -- interstate when you think about this in the context of what they'll have always just saying about the stock market. -- bell stocks are up. Business profitability -- and you know how they're achieving that they're cutting costs they're laying off workers it's just a terrible job market right now."

" And they are other indicators that the economy might not be doing so well retail sales have fallen the number of homeowners delinquent on their mortgages are in foreclosure has risen. If some people still say we're in her recovery but others say that those. Recovery numbers are propped up by phony figures like the Fed artificially holding down interest rates. "

" Yeah outlook -- not Joe Biden runs around the country telling the American people that the economic fiscal stimulus plan has worked. Well beyond his wildest dreams most Americans are wondering what country he's talking about. I mean the fact is for most Americans -- recovery is when the jobs come back and we continue to lose about an average of about 200 to 250000. -- jobs a month. Here's my point on this. I believe the villain in this picture is Washington DC. Congress if you think about the things that they've been doing over the last six to nine months they're all jobs killers and -- about it in the context of that. -- health care bill that passed on Saturday that we all -- we -- with fifteen day twenty million unemployed people and and the Democrats in congress want to raise the payroll tax on small businesses want to raise income taxes on small businesses want to raise energy taxes. I think it's craziness I think everything Washington has done has made the unemployment picture worse."

" You know we mentioned the Great Depression. Some people now saying you know FDR's new deal everybody says it ended the depression but some people believe it prolonged -- what about that approach."

" I don't think there's any question that this is what a great apologies. Our history -- is that there FDR's government spending programs helped get us out of the process the truth is 88 years after the new deal was implemented we still had a 15% unemployment rate in this country but. I believe if I could be the economic -- We could do something that would get America back to work instantly we ought and this is a radical idea that we get this a radical problem. We need to suspend the income tax in this country until we get the unemployment rate back -- 8%. Now imagine that we told every worker and every business in America you don't have to pay income taxes until we get the unemployment rate dot I think we within six months we have about millions more Americans were picked a really give."

" So do you similarities. Between our current economic situation and the lead up to the Great Depression."

" Well she's that's a terrible. Question because it means the very much to remember we got out of water rates as high as twenty but at 30% during the Great Depression to I don't know. -- wanna go down but I do see a lot you know we're I think the civilized more like the 1970s. When we just had one reception after another we just couldn't get it. Economy out of recession and let's not forgot what got us out of the terrible 1970s stagflation it was the Reagan tax cuts so I would ask. Barack Obama Nancy Pelosi where the tax cuts for small businesses right I'm here on the west I'm here on the west coast at a busy businessman's conference and that the that what that person has. Why is Washington. Try it did you know destroy us and that's what a lot of businessmen are saying all right Stephen Moore the in the heart -- here thank you -- at the end of prosperity thanks for a few years."

" If you why -- more -- he can go forever -- so much to say about what's going on right now that you regulate what about the stock market that's the only place people making money right now -- we'll talk to you. A bit later they went through."