president obama wants $447 billion to create jobs. the president cause it a jolt not a system ytimulus. aly is off this week. the american jobs bill, a tax credit for hiring unemployed veterans and modernization of 5,000 public schools and tax credit for hiring long term unemployed and position to help refinance mortgages at low interest rates. steven, the white house is steering us told analysis from well known economist mark zandi who says this plan if enacted could create almost 2 million jobs. let me guess, you're skeptical? >> i'm friends with mark for a long time but he's been wrong. he's the one who said we would create 3.5 million jobs. an amazing statistic. i just looked up the numbers. we have 1 million fewer jobs today than we did in february of 2009 when we created the $800 billion stimulus plan. let me use a football analogy if i may. if you run the ball up the middle three times and you don't get any yards, on fourth down you don't run the ball up the middle and that's what the president is proposing. a lot of proposals you just mentioned were things in the original stimulus plan or payroll tax credit. we did that in january of this year. none of it has worked to create the kinds of jobs. >> ken rogoff, in order to find a solution let's make sure we understand the problem. simplest terms you can think of. why can't we create more jobs right now? >> there are two basic problems. we're in the worst recession, whatever you want to call it since world war ii and it's lasting a long time and of course there's the slow grinding overhang of our growing trade with asia, the growth of china, india, brazil. that also is hitting american jobs, particularly for lower educated workers. >> is it right to throw money at the problem right now in the near term? it sounds like you're talking about big structural issues in the economy. >> i'd like to see big structural solutions coming out of this crisis, coming out of congress and from the president they don't seem to agree on everything. i don't think it's wrong to necessarily try to at least not pull back the stimulus, that's what's going on right now. but think of this as like taking aspirin when you're pretty sick. it will make you feel a little better but it isn't a cure. >> we have a football metaphor and aspirin metaphor. it's cnn's chief political anl sift, two thirds of americans say creating jobs is more important goal for this administration than reducing the deficit. the president called for a joint session of congress to deliver the jobs plan. clearly he wanted the american people to view him as a leader on job creation. did he convince americans? >> we'll have to wait and see. he was talking to independent voters out there, the swing voters that are so upset about the fact that congress isn't able to get anything done. what the president was trying to do was to say to voters, look, i am the reasonable man. i'm laying down a gauntlet for congress. they can decide if they are going to take it or leave it. but if republicans out there decide that they don't want to take this package, they are going to have to explain to the american voters why. what was very important was the president said i'm going to take this on the road, which means the game is on here for the 2012 campaign. and he's clearly positioning himself ala harry truman against a congress, if he didn't act, they did nothing. >> preparing 35,000 schools and giving states more money to keep teachers in your kids's classroom, unemployed veterans. you go down the line and it's going to be hard for a republican seeking re-election to say i veeted against american veterans. >> i agree with a lot of what gloria just said. there's no question that jobs is priority number one. it's also true the voters want quick action. the frproblem is if you look at the last reelection, what was their central promise? we're going to stop the spending and stop the debt. so to then turn around and say we'll have to pass a half trillion new spending and debt bill, i'm no so sure that goes on very well with people who voted for these -- >> i agree. we were waiting for the other shoe to drop which was on september 19th when the president says he's going to lay down his plan for the super committee. and that is apparently going to include how to pay for this. the one interesting thing i heard from the president, which is that he's willing to take on his own democrats on the question of medicare reform. let's see how far he goes with that. >> i've been in washington for 28 years. you've been in this town for a long time. the one promise that is always made that is always broken is that we're going to spend now and save money later. we never do that. we've been doing that since the late 1970s and that's the reason we have a $15 trillion debt. the president is going to say we're going to cut spending two presidential elections from now. who believes that. >> let me bring in ken. people say they want to balance the books and live within our means until they realize the entry country has been built on living beyond our means. when budget cuts mean jobs then they change their tune a little bit? >> they certainly do. americans have wanted lawyer taxes and more spending for a long time. now they say they want to have not so much debt but still want lower taxes and don't want to cut the spending too much. i think it is a very angry populist. i think a hard thing for the president as he tries to present a rational plan to this very angry voters quite unpredictable. >> do you think this would create jobs if the president in some idea world, if he were to get the whole thing through, would it create jobs? >> i think it would create some jobs, putting a number on it is hard. i don't think there's any question that the awful debt negotiations and debt deal over the summer sort of overdid it in the short run with cutting back stimulus while the economy is still weak. it didn't do anything. they kicked it to the super committee and pushed everything into the future. this is more of the same. it's getting pushed into the future but we are in a very deep down turn at the moment and need to be very careful. >> ken, i love your book. every economist should read it. there's so much wisdom in that. the one thing i would maybe challenge you on, what i glean from reading your book is that on this recession that we're in, this is a classic kind of debt recession where americans at the business level or individual level, there's too much debt out there. what i don't get about all of this and this is my kind of question for you, if we have too much debt, how is more debt the solution to getting out of this crisis. i think it's probably exactly the wrong thing to do right now. >> i agree that the idea of a jolt and suddenly you'll be better again is wrong. and the president did talk about doing something about the mortgages and the housing. that's where i'd like to see more of the focus. i think that would really help pull us out. i'm not giving a blanket endorsement but saying we need to be careful. >> let's take a break here quickly. the economy is slowing down, recession fears are everywhere, it's if it's about to get worse, how long can we expect the down turn to last? we'll look at that next. don't go away. exclusive to the military. and commitment is not limited to one's military oath. the same set of values that drive our nation's military are the ones we used to build usaa bank. from free checking to credit cards to loans, our commitment to the military, veterans, and their families is without equal. ♪ visit us online to learn what makes our bank so different. usaa. we know what it means to serve. economists differ on whether america is headed for another recession. but most americans find that question irrelevant. 82% of those responding to a recent cnn poll say we're in a recession. if four out of ten are feeling like this is a recession then a continued slowdown seems to be inevitable. >> the only thing i can say is the polls have a lot of interpretation in them and what consumers are doing matters more than what they are saying. not so long ago, in july, durable goods, refrigerators and things like that were picking up rather crisply. so maybe the hard numbers are not as bad as the mood. but if the mood keeps this way, of course, it will feed into the hard numbers. >> steven, is this a crisis which may require an entirely different approach for the recovery? >> it does need a total different approach. when ken was talking in the previous segment about this being the worst recession since the great depression, in some ways it is but the 1970s, the whole period from the late '6s through 81, 82, that even worse time for economic decline for this country. stocks lost 67% of the value in real terms. what makes this different from that recession is that reagan came in and did use an entirely different approach. he deregulated the economy and got federal spending under control and fought inflation and we did a big tax cut. within 18 months of that presidency, we had an incredible expansion. where we were creating 57,000 jobs a month. if we got the policies right, there's no reason this has to be a three or five-year long recession. i think the economy can turn around pretty quickly but i don't think these prescriptions are working well. >> you think the president's policies are what's delaying the recovery but ken, what we went through was pretty horrific, it will take time no matter what anybody does. >> i disagree with steven on this one. this is worse that what we were in the '70s and state of the financial system and financial crisis typically is associated with something much worse. i do think we could have expected three or four years of difficult employment. the trouble is it's not looking better going further out. what should we be trying? that's a fair question. i don't think anyone -- i think if john mccain had won in and become president in 2009, i don't think it would be real different today. >> i think the political problem here is that we're trying to spend and we're trying to cut at the same time. >> right. >> and we're -- the american public wants everything and that's what politicians want to give them. they want to say, okay, we care about deficit reduction and we understand that's the key to the future, on the other hand, we want to spend some money and give you your -- extend your payroll tax cuts so that we can put more money in your pocket. it's very difficult political situation, not only for the president but also for the republican party and for members of congress who's approval rating is at 14%. so they understand the public wants them to get something done. >> there's also been -- if you look at the data and i've been looking at this closely. i think there's been a misdiagnosis of what the problem is with the economy. the problem is we don't have enough demand and don't have enough consumer spending. but in fact if you look at what's happened, consumer spending has been rising at a pretty robust pace. what has fallen dramatically and not caught up to where it was prerecession was business investment. i'm a big believe that investment, spending by businesses is what creates growth and you're not going to get -- >> i thought all of those years of tax cuts would make weather creators -- >> in the president's plan he talks about small business and helping small business. there are some things in his jobs proposal that would encourage small business to hire, which i think republicans will embrace. >> we're going to pay for this with a big tax increase, they are looking forward to -- the president is going to raise taxes on employers in 2013, that's a negative. >> i think demand makes small businesses hire -- everybody wants demand, right, ken? >> they do but i certainly agree with steven, they have misdiagnosed. this is a typical recession. they said we need a big jolt of spending and we'll get out of it. it is not a typical recession. we never got out of the last one. i want to pick up on president reagan did a great job. nobody is perfect. we almost had a catastrophic savings and loans crisis. it's very tough to be president in these situations. >> it's tough to be president in the best of times. i do think that presidents get too much blame and too much credit. bottom line, too much blame and too much credit and a lot of different moving parts. we need leadership and confidence. another great discussion, guys. a republican presidential candidates have a thought or two or in romney's case, 59 thoughts. we're breaking it down next. this one works. ooh, the price sure doesn't. i'm tired of shopping around. [ sigh ] too bad you're not buying car insurance. like that's easy. oh, it is. progressive direct showed me their rates and the rates of their competitors. i saved hundreds when switching. we could use hundreds. yeah. wake up and smell the savings. out there with a better way. now, that's progressive. try capzasin-hp. it penetrates deep to block pain signals for hours of relief. capzasin-hp. take the pain out of arthritis. the first thing i lefrned covering the markets is that gridlock is good for business. diane, full credit to you, a year ago when we were heading into a midterm election, we knew it would result in republicans taking over the house. you stood up against the conventional wisdom and said this is exactly the wrong time for gridlock in washington and you were so right. since then we've had a near government shutdown and debt ceiling crisis that resulted in a downgrade of the credit rating. more importantly, we've got an economy that literally didn't create any net new jobs last month. do you think things will get better in the year to come? >> i think the status quo is more likely. the problem is we're about a 50/50 coin toss chance of recession at this stage of the game. that's one of the hard issues as we debate these different jobs programs, the reality is the old models, historical models that tend to give us estimates on what they might do for the economy don't work. you already had ken rogoff say post financial crisis economy is different. it really is different. that's what is the problem here is that people keep trying to use the old solutions to new problems. and that's not going to help us, although it is important to preserve the status quo because as bad as the status quo is it could be worse. many of the proposals out there will help to preserve the status quo and that's what we need to focus on at this stage in the game. >> the president's jobs plan, is that preserving the status quo and that's the best we can do right now? >> parts of it. the whole plan, no, it isn't. there are parts where they made estimates, models have estimated it would create as many as 2 million jobs. as much as i respect the people that make the estimates, i don't agree that's how many jobs will be created because of the structural problems we face. that said there are parts of the president's plan that are very important. we can't have a tax hike he quifl lent of letting the tax cut expire at the end of the year at this critical time. unemployment benefits are keeping a floor on consumption. treading water and keeping our head above water even though it doesn't feel like we're moving forward to most americans is critical because the alternative is going under. >> roland, when president obama took office it was 7.8% and today it is 9.1%. republicans argue this is because of his policies not despite them. why aren't the president's policies creating more jobs? zl that's if you accept the republican rationale. somehow it ignores the rest of the world. we're sitting here acting as if that what a president can do alone somehow can fix the economy. look, we gave banks money under the view that somehow they were going to lend the money out. they didn't. they shored up the balance sheets. also, our economy is all based upon consumer demand, consumer spending. if you don't have the confidence, they don't spend. if you own a restaurant you won't add more employees if you don't have more customers. it's ridiculous to think a presidential policy alone somehow would drive this. we were operating in a whole new world these days and politicians don't want to accept that. any time you hear republicans and democrats say this is the sole reason, they are playing a political partisan game and not a real game of what's happening in the real world. >> all right, i want to look at the economic plans that republican candidates would put in action. they overlap on a few conservative ideas. they want to cut the corporate tax rate and shrink government. that's the traditional conservative model. mitt romney wants to develop this reagan economic zone. he's talked tough about china, more tough talk than anybody else. jon huntsman what's to cut tax rates to 8%, 14%, 23%, do total tax reform and he was endorsed by the wall street journal. michele bachmann, mostly people are talking about her pledge for $2 gas. she would like to lower corporate tax rates. -- >> hello again, i'm fredericka whitfield in atlanta. we continue our coverage of the remembrances of 9/11, ten years later. you're looking at live pictures right now at the pentagon where president barack obama has just arrived after spending a poignant and moving morning and midday at both ground zero in lower manhattan with the relatives of the victims of 9/11 and paying respects at the solemn shanksville, pennsylvania, president barack obama now arriving at the pentagon. we understand there that's where american airlines flight 77 as you recall ten years ago crashed into the pentagon claiming the lives of 184 people. you're looking at the live shot right now and also in the foreground you're seeing these benches. these benches mark the 184 lives lost that being in mem or yam of the very many killed on that fateful day. the president will be arriving there, meeting with some of the families of the victims who will also be there. we understand he'll be laying a wreath. there will be a moment of silence taking place. you see there president barack obama with the first lady, michelle obama. we're going to take a short pause here and listen in as the president and the first lady make their way. [ applause ] >> get out of the way. snoest ♪ ♪ [ playing amazing grace ] >> we understand the president will be meeting now with the victims' families and other survivors of the tragic day ten years ago. he'll be enter a memorial there along with the first lady and having that face to face time with the family members and victims. on that day, ten years ago, our pentagon correspondent barbara starr was also there. she is there once again, helping us to recall what happened ten years ago and of course moving forward now as the nation stops to remember what happened. barbara, this moment is interesting because there have been several appearances at the pentagon representing two administrations at least. the bush administration with donald rumsfeld being there earlier throughout the weekend, seeing the vice president there earlier today and now the president of the united states at the pentagon. >> reporter: yeah, you know, fred, i think here at the pentagon at a moment like this as we look at the flag, the point of impact when that plane slammed into the building, for the pentagon today it's really family business, not politics. so many of these families have been out here every year. today they were out here of course early in the morning for the earlier ceremonies and have waited for hours in the sun to see the president of the united states as he previously had been in shanksville and in new york. this is sort of wrapping up today's events. the memorial is actually open to the public. if people come to washington, they can't go inside the pentagon necessarily but they can visit