Can Political Leaders Actually Create Jobs?
VELSHI: The fiscal cliff we are racing toward is just the latest frightening example of the incompetence of our elected officials. It's also proof of what a small world we live in since people running for office around the world make unsubstantiated claims about job creation all the time. See, for all the things that matter in an economy, jobs matter the most. And in a desperate world outlandish promises can give a candidate traction or even victory. Joining me now from London is my esteemed colleague, Richard Quest, the host of "QUEST MEANS BUSINESS" on CNN International and a man who would never make a promise that he couldn't keep. Richard, today's Q & A question, can political leaders actually create jobs or are voters around the world like those in America being lied to and given false expectations? I'm going to go first. Ring the bell, and give me 60 seconds. Presidents don't do as much to fuel jobs growth as President Obama or Mitt Romney would like you to believe, Richard. Dysfunctional legislators have more impact, but it's really about the business cycle. U.S. job growth may have more to do with slowdowns in Europe and Asia than with anything Washington does. The only thing presidents can do is instill confidence in consumers who will feel safer spending their money thereby creating demands, thereby creating jobs. Mitt Romney, Richard, after making a ridiculous pledge to create 12 million jobs in four years -- a pledge by the way that the Obama camp quickly matched -- now argues that the way he'll cut taxes without increasing the deficit is that so many jobs will be created under his administration that people will be working and spending the money that they're not paying in taxes. It could happen. I could also become as tall and handsome as you are, Richard, but I don't go around promising to do so. And I'm not asking anyone to vote for me. How much can politicians actually do to create jobs? I guess they can create stability and an expectation of what will happen and low taxes and regulation. I don't know, Richard. What do you think?</s>RICHARD QUEST, HOST, CNN'S QUEST MEANS BUSINESS: I'm glad you asked. Politicians do not, cannot, and will not create jobs. We agree on that. We also agree on the fact that they create an environment that allows the private sector, men and women who start businesses, to actually go out and create the jobs that we all seek. But here's the important point. There is a no difference this time -- a big difference this time around because what has happened is the awful deep structural recession. We are slowly but surely crawling our way out of a mess that took years to get into, and we certainly are not going to solve in a matter of a couple of months. That is why politicians who make promises are so disingenuous. That is why politicians who promise jobs are so dangerous. And that is why politicians who promise jobs should be ignored. In the European Union, we have unemployment over 11 percent and it is rising. That is the true disgrace of politicians and jobs.</s>VELSHI: The difficulty, though, is when they both make the same -- both sides make the same promises and you get stuck in the pickle that you're in.</s>QUEST: But, but -- hang on, hang on. I heard you, Ali Velshi.</s>VELSHI: Yes.</s>QUEST: Maybe they can find the moment when you promised this. You promised that if one of those political promises were broken, I think you said you'd wear a dress.</s>VELSHI: I -- if they make it, if they get -- create 12 million jobs in four years, I'll wear a dress, but I'll be so happy that the economy is doing so well that it won't even matter. We'll erase this tape. Hopefully this doesn't get recorded.</s>QUEST MEANS BUSINESS." QUEST: I'll pay -- I'll pay you money. I'll pay -- I'll pay good --</s>VELSHI: Somebody cut his mike, cut his mike off right now.</s>QUEST: I'll pay good money to see --</s>VELSHI: Speaking about money, we have to raise some so we're going to take a commercial break. When we come back, investors have cashed out a $5.1 million worth of U.S. stock mutual funds. That's just last week. Since the financial crisis hit, you've been scared, and I don't blame you. But other than me, who's looking out for you? The Consumer Financial Protection Bureau. They've been busy. I'll tell you what they're doing to protect your money. Coming up next.