Joel Prakken, chairman of Macroeconomic Advisers LLC, discusses his latest report on President Obama's proposals to create jobs, and on the counter proposals offered by Republicans. He says, "Housing is the single biggest factor in the economy right now." Prakken speaks with Bloomberg's Sara Eisen and Michael McKee on "Bloomberg On the Economy" on Bloomberg Radio. Bloomberg's Vonnie Quinn joins in on the discussion.
A shutdown of the U.S. government would reduce fourth-quarter economic growth by as much as 1.4 percentage points depending on its length, economists say, as government workers from park rangers to telephone receptionists are furloughed.
The U.S. Treasury will continue selling debt in the event of a government shutdown next week, while economic reports from the Commerce Department will be suspended and the Bureau of Labor Statistics will stop operations.
Consumer confidence in the U.S. rose last week to the highest level in more than five months and the pace of firings declined, showing an improving job market is bolstering the biggest part of the economy.
A strengthening economy that encourages more Americans to seek work would have a paradoxical effect: making it harder to lower the unemployment rate to the level Federal Reserve policy makers want to reach before considering an interest-rate increase.