Tags: Morici | economy | growth | jobs

Morici: Economy Needs 360,000 Jobs a Month to Return to Full Growth

Friday, 02 Aug 2013 05:03 PM

By David Nelson and Dan Weil

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The economy added 162,000 jobs in July, but that's a far cry from the 360,000 needed to get the economy back on track, says Peter Morici, professor of international business at the University of Maryland and a Moneynews Insider.

"Essentially, the economy is firing on three cylinders instead of six, growing at around 2 percent instead of the 5 percent it should, and as a consequence isn't absorbing as many new workers," he tells Newsmax TV in an exclusive interview.

"Many of those that it does hire are part-timers. Increasingly Americans are relegated to a contingent work force where they work temporary jobs, part-time jobs and so forth. They can't get decent healthcare benefits despite Obamacare, and their wages continue to fall."

Watch our exclusive video. Story continues below.



Editor’s Note: Obama Donor Banned This Message (Shocking)

Part of the problem is the Affordable Care Act, also known as Obamacare, which will force companies with at least 50 employees to offer insurance to those who work at least 30 hours a week or pay a fine starting Jan. 1, 2015, Morici says.

"Folks are finding health insurance too expensive to provide employees, and if they cut down to part-time workers, turn three jobs into four, they avoid all that," he said.

"And that's what's happening. Some folks will have to work two jobs to make ends meet, and they still don’t get healthcare."

The employment picture has other negative elements, Morici says.

"One is the fact that because the economy's so slow and manufacturing isn't doing a lot better, we're creating service jobs, people waiting on tables at restaurants, bartenders. Those jobs are easily dividable," he said. Using part-time workers also enables employers to avoid unions, Morici notes.

Employers aren't hiring and investing because there isn't enough demand in this country, he says. "The gaping trade deficit . . . is the reason." The trade gap totaled $540.4 billion last year.

China, Japan and Europe all are keeping their currencies undervalued to "juice exports to the United States and shift unemployment from their economies to here," Morici said.

"We have a president who will do nothing about it," he says. "And until we fix that problem . . . America's not going to prosper, the country's not going to grow, people aren't going to find jobs."

President Barack Obama is "deaf to facts and blind to reason" on this issue, Morici says.

"This administration is actually bankrupt in its economic ideas," he says.

Young people, in particular, are suffering, Morici says. "We have college graduates now, two, three, four years out, who haven't found a decent job, still working at Starbucks, burdened by extraordinarily heavy college debt," he said.

"And the president's answer is to loan them more money at low interest rates." Students are emerging from college "in debtor's prison with $100,000, $200,000, $300,000 in debt, a job that they can't use to pay off the debt, and they can't get rid of this debt in bankruptcy court," Morici said.

"We're essentially throwing a generation of young people into debtor's prison to keep the unemployment rate down," he says. "We've had bloody well enough of those failed policies."

Editor’s Note: Obama Donor Banned This Message (Shocking)

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