low. forgive me. neil lost me at wages being flexible. the idea being if you have low wages, it will create more jobs. if that was true, there would be zero unemployment now. we have soaring tuition and healthcare cost. we have soaring clothing cost and gas cost for the american family. it s a dreadful trend. so the thing is, here is what is key to watch. wall street and companies know that they have been enjoying record profit margins because of the slashing so much. you cannot have the same gdp growth of 2007 with 8 million less jobs. companies know they need to hire. david: so bill, are the low wages good or bad for the economy? dade, what we need is not low wages but flexible wages. that means when the demand slackens, your employer would be cutting your bonus check. he wouldn t be firing you. it would also mean we wouldn t have people unemployed, sitting at home, losing their job skills when we have less demand. david: how do you see it?
should be. this is the worse recovery from a severe recession in american history. the reasons are apparent. weak dollar, uncertainty about taxes. massive new regulations coming across healthcare. that s why we re not having the job creation we need and should have and normally would have. david: neil, who is right on this? steve or dennis? he is not addressing the issue. do we have a good labor market when wages are going down? it shows flexibility. would we be better off in detroit when the wage were going up and up and we put ourselves in bankruptcy? that s not the way it works. if we re paid too much we have to have an adjustment. we re finding there is slack in the economy. thank god in our economy wages can go down. the alternative would be france. although, emac, if you had someone making $150,000 before now working as a barrista at a starbucks for $8 an hour, they don t think they were making too much before. right. this is a dreadful trend. i m sorry, but dennis lost m
that. we built too many houses and borrowed too much and built too much. we had overconsumption and now we have a risk of deflation. and the lower wages only feed in to that. david: mr. forbes? you could never have had a housing boom the way we had if the federal reserve hasn t printed the money to finance it. if you have a stable dollar, you don t get these bubbles. history shows that. neil weinberg? i don t want to debate bubbles. it s an important issue. you were talking about people in bangladesh weren t making money. that s how you start, pull yourself up by your fingernails. china didn t get where it is today starting out with swiss wages. what we need in the united states is moderate wages. we re not bangladesh. you re supposed to become japan. what is going on with japan? get rit of safety regulations. what is going on in japan is happening in the united states as well. this is scary for the american worker. 30% of the american workforce is temporary.