Terrorism remains the top issue on the campaign trail. As we look at live scene on the capitol hill on this christmas eveeve. Phone lines open. If you are say you were better off this year, if youre worse off the number to call is you can also join us on facebook at facebook. Com cspan. Thank you very much for being with us. Some of you are weighing in. Were taking an unscientific poll and comments on the economy and your own financial situation. Better off, worse off or about the same. You can join in at facebook. Com cspan. The Washington Post has a scene on fifth avenue. One of the busiest shopping weeks of the year. Consumer growth is strong over the holiday season. It accounts for about 70 of the consumer growth. The impact it has on Consumer Spending. Well have more details from the Associated Press on the top business stories of the year. First janet yellen announcing an increase by a quarter percent to the Interest Rates last week. Heres what she had to say. Earlier today the central open Market Committee decided to raise the mark rate for the federal funds rate by one quarter percentage point bringing it to one quarter to onehalf percent. This action marks the end of an extraordinary seven year period during which the federal funds rate withheld near zero to support the recovery of the economy from the worse financial crisis in rescission since the great depression. It also recognizes the considerable progress that has been made towards restoring jobs, raising incomes and easing the Economic Hardship of millions of americans. It reflects the committees confident that the economy will continue to strengthen. Host janet yellen announcing the first the what could be a series of Interest Rate increases. Joining us on the phone is nelson. He is in new york city on this wednesday morning. Thanks so much for being with us. Let me ask you about Third Quarter growth in showing the Consumer Spending accounting for about 70 of the economic activity. Well get more numbers today from the commerce department. But overall, what does this tell you about the state of the u. S. Economy and consumers in general . Guest well, i think the consumer is actually pretty well off these days in terms of spending. In fact, other parts of the economy, theres greater head winds. Exports are under pressure because of the strong dollar, some weakness overseas. Meanwhile businesses and Energy Sector cut back on spending. However the consumer is still spending a Pretty Healthy level. Especially with the sort of Unemployment Rate still falling. Employers hiring. Energy prices in terms of gas people have little bit of money in their pockets. I think the Biggest Issue is that wages and wage growth remains very subdued. The Unemployment Rate is falling, people are getting hired but you got a lot of people working at jobs where they wish they were getting paid more or at least have having to take jobs part time. Thats the challenge. There is more hiring going on. Host is the jobless rate a barometer of how people doing . Those who have left the workforce completely . Guest its a great question. The Participation Rate mainly the proportion of the population thats actually working is near low since the 1970s. The truth is the official Unemployment Rate, the headline rate you see is 5 . The Participation Rate were where it was before the great recession, the Unemployment Rate, the official one would be like more like seven or eight percent. Thats a real concern. On the other hand, everything is proportionate and companies are hiring. People are finding jobs but the question is are they finding jobs in with their education and with their experience and what you need to live on today. Host were talking with Nelson Schwartz. I want to go back a story. Rates are going up what could go wrong. As you point out in your piece, the fed embarking on a new chapter in Monetary Policy with regard to the fedss policy and the impact it has on consumers in the next year. What are you sensing . Guest so far, logistically, the rate increases got off successfully. This is the first rate hike in nearly ten years. There are people on wall street trading desk who never lived through a rate hike before, at least professionally. I think the fed is sort of its kind of feeling its way just like the rest of us. See if the economy can handle it it. Europe raised rates couple of times in 2011 and it proved to be premature. There was a double dip recession since the economy couldnt handle it there. I think most people think, u. S. Economy is Strong Enough to handle just a one quarter of one percent. Rates are still hat historic lows. I think this hike it will take time to percolate the economy. Most people feel like the economy can handle it. Host we keep hearing this reference like goldilockses. Is that how you see . Guest i would say, im trying to think of something, a reporter used that, not too hot not too cold just right. My sense its true in the sense its not too hot and not too cold. Where it falls short of just right, we really need to see stronger wage gains. You got unemployment running about 5 ,s can good. On the other hand, wages have been only rising between 2 and 2 1 2 a year sense the recovery began. That rate, wages barely keep up with inflation. It dont allow people to gain ground that was lost during the recession. We really need to see healthier wage gain for the 90 or 95 of the population. Host Nelson Schwartz is joining us from new york city. His work Available Online at ny times. Com. Thank you very much for being with us. Merry christmas. Guest you too. Host focusing on china. It took five years for people to become worried on chinas deceleration. The freak out finally hit Global Markets in august. The dow plunging 11 on fears that everyone had under estimated chinas troubles and their impact on the rest of the world. China its sharp economic slow down is the top business story of 2015 according to the editors of the Associated Press. Our phone lines are open. Are you better off worse off or about the same . Dave is first up joining us from from ohio saying he is worse off this year. Good morning. Tell us why. Caller im dave from ohio. Do you hear me . Host go ahead. Caller what it is, i had a ton of steel fall on me back in my 20s. Im 58 years old and i ended up on disability here in my 50s. What happened was i suspecting an increase on my disability here. Thing is, is that, they might save money at the pumps now but were taking the money we save off the pumps pay for the electric. Because the electric increase. This year, theres no Christmas Gifts in this home this year. No christmas meal. Were down to one meal a day. I know i used to eating three meals a day when i was working. Im just thankful that we got one meal a day. Now were not better off. I wish we would have got an rate increase on our disability. I kept working all those years even though that ton of steel bashed my body up. Host how long have you been on disability . Caller probably about three years now. I added up my my heart took the electronics. I had that blood clots in both lungs and legs. I was sitting there and i had back trouble from the steel falling on me. Ive always put up a pain through the back. When i went up there to the hospital, i had blood clots in both lungs and legs. Host listen, good luck to you i hope you have a nice holiday. The question is are you better or worse off. Jan said this point p thats year its gas and this year on stuff. Next is a caller from ohio. Jennie. You say youre better off this year. Caller im better off. Im on permanent disability. The government helps me. I dont have any complaints. Im very grateful for what i get a month. I get help with my prescriptions and help with food. Lot people, they complain about being on disability or whatever and they need to quit smoking cigarettes. Quit spending their money on silly things. Host thanks for the call. Carel has this, the state of economy is in the stay of malaise. It is a wash for most, nothing to brag about. Steven black has this comment on facebook, he is tremendously better off. Business is great, profits provide for me, my husband and college tuition. Linda said its about to change from worse as there is no cost of living. We just cant afford along with other groceries insurance company, mortgage. That comment from our facebook page. Facebook. Com cspan. Marissa is from montana. You say youre better off. Why . Caller thank you so much for taking my call. I love cspan. I wish you would phrase your question a little differently. This this is such a negative question. Its like were such whiny americans. How about phrasing it like, what have you done to bless and help your economy. What have you done to bless and help your neighbors . What are you doing to increase the prosperity. Im so grateful that i live in america. All the incredible opportunities and this government that takes such good care of us. I dont know what well do without our president , barack obama. He worked so hard to help us and do so much. Im so grateful. Could you guys please do a little bit more on Animal Rights legislation for the livestock animals. If you can get pita back on. Thank you so much. Host thanks for your enthusiasm. Glad you like book tv as well. Thats 48 hours of nonfiction books on cspan 2. Lot of holiday programming coming up on those network and some of the best in book and history on the cspan network. All tv available on our all of it oavailable on website. We welcome our listeners on cspan radio on xm and streamed on the web. Iphone app available. Steve harrison has this on twitter, doing well, best advice i can give appeal to the young especially to the young, save early, make a top priority. This story inside of the business section of the new york times. Its called aging Society Poverty at old age. Exert from the piece. One of the Great Success stories of the 20th century was the decline in pother among the old poverty among the elderly. Typical American Worker averaged out about 46,000 a year in todays money could retire this year at the age of 65 with a Social Security benefit worth 39 of the career average. Unless something is done, by the year 2035 the First Pension check might amount to as little as 27. 5 of their career wage. Next is lily joining us from in hawaii. Good morning to you. Caller good morning. Thank you so much for cspan. Host what time is it there now . Caller i am five hours behind you. Its 2 15 a. M. Host why you up so early in the morning. Why are you worse off this year . Caller im a night owl. I do like to catch at least an hour of washington journal. I kind of turn it on in the middle of the night. Why am i worse off this year . Im a senior. Im retired. I lost my house in the great downturn in the late 2000s. I been disabled since i was 30. I started a Home Business and i did very well. Only in america, right. I also lost my husband recently. So im living off my Social Security. I get a good check and im thankful for that and i have a small pension. What i see happening here is that food almost doubled. Utility has at least tripled. Theyre taking dollars out of my medicare and my secondary insurance for health insurance. Doctor visits and medical things that i have to have done have really gone up. Even veterinarians. They charge as much for animal care as they used to for people. Of course, medicines some of the medicines that i used are no longer covered by my insurance. Gasoline has gone down. Thatsed good news. I would like to im very disappointed that i did not get a raise in Social Security this year. It really would have made a difference. Thats about all i can say. I would like say one more thing. I think Social Security should be tied to the cost of living i would like the government to keep its hands off it. I thank you very much and very merry christmas. Host sorry about the loss of your husband. Well move on to head who is joining us from west virginia, good morning ed, welcome to the program. Caller good morning. Host you say things are about the same for you . Caller yes, i guess so. Lousy. Ill be 81 years old in less than a month. Host well happy birthday. Caller thank you. I appreciate that. Things are just terrible for me. Im on medicare. Thousand dollars a month for the time you take your rent, its you get 400 a month. All your other bills and all of that stuff out of it. Medicare pays 8 . They send to another doctor and he charges 200 for patient care. I have to pay somebody to take me because i cant drive. I live by myself. Things are just terrible for me. Then the president of all the guts, give all workers a raise. He cant give me a raise but he can give them a raise. I am just disgusted and fed up. I like to say one more thing. It does have something to do with today. When i seen those soldiers were killed yesterday in afghanistan that had to be fed up. He knows the time and when they will walk over there. American soldier has to wake up and realize, he cant trust them people hes working with over there. Host this is headline frommed in the Washington Post. Openly gay fair