The economy was a crucial issue in the vice presidential debate late Thursday with Vice President Joe Biden and Rep. Paul Ryan defending their positions on taxes, the deficit and economic policy. Mark Zandi, chief economist for Moody’s Analytics and author of “Paying the Price: Ending the Great Recession and Beginning a New American Century,” joins “Starting Point” to discuss the current U.S. economy and what the future might look like after the election.
The U.S. is “making progress," Zandi says. “Obviously we're not going anywhere fast. The economy is not improving fast enough to bring down that unemployment rate. But we are improving, and the best news, most recently is the housing market. The housing market has turned the corner and of course housing was ground zero for our problems. The fact that it's turning up is very positive news,” he says.
The chief economist also argues that “regardless of who wins the election” the economic recovery will continue to progress. “The unemployment rate peaked at 10% just about three years ago. We're now at 7.8%. I think it's very doable to get to 6% by the end of next president's term,” he adds.
Despite positive news for the economy, Zandi warns that the next president will need to address the fiscal cliff early in his term. “Either president has to lay out a credible path to deficit reduction to stabilize their debt load. If they can do that, and I think either president can, then our economy is going to, I think, get its groove back,” he says.