Normal Economic Growth Is a Stretch in 2014: Spence

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Dec. 11 (Bloomberg) -- Michael Spence of New York University discusses the issues holding back robust economic growth on Bloomberg Television’s “Bloomberg Surveillance.”

So much of your economic work is the mystery of economic growth.

Will we see it in 2014 question mark will we get back to normal in 2014? no, i think normal will be a stretch.

But we will see subpar but real economic growth in america.

Very little in europe because the countries that need to recover are still out of bounds in terms of productivity.

And in china and developing countries i think you will see very substantial real growth.

You are a man of many geographies.

Stanford, now at in the -- nyu and you lived in italy and spent a lot of time in new york and are we through with the financial crisis?

Are you think about writing about moving on some day to the normal or are we still in the crisis?

By most definitions, tom, we are out of the crisis.

What we are doing is struggling with two things.

One is getting growth back to full potential and the second huge problem is employment, lagging growth.

Are those two separate issues or are they inextricably entwined?

Can we say a fog and all at 6:00 a.m.? -- could you please take it down to the con 101. what is orthogonal?

It means perpendicular, one thing unrelated to the other.

Is he talking about my bowtie?

Why whether ukrainians want closer ties with the europe when they have seen all the difficulties the european economies have had with financial stability?

I think they want to be part of the second-largest market in the world.

The economies, while they are struggling, are democratically governed and modern.

And because when you enter the european union, there are many, many steps.

But it is a path that accelerates reform and stabilization in your own countries.

On balance, they don't want to be in the eurozone at the moment . when you take a look at the staggering photos from kiev, as well as what we have seen in the middle east the last two years, what does it speak to about the massive inequality we are seeing around the world and the fiery protests that keep happening and spreading?

My view of that -- there are lots of different forces at work, but there are two powerful forces veteran getting rise to a -- that are giving rise to a suppression of middle skill jobs and elevation of the upper end.

One of them is technology.

We are stripping routine jobs out of the economy by automation , and then globalization tends to move lower value added jobs to countries in the developing world.

When you take those two together, those are pretty powerful.

2014 trend.

Michael spence, what we will bring comments about the volcker rule coming up.

The new ceo but gm but gm is also in the news saying it will stop production in australia.

This is after 69 years of production in the country.

Gm blames the strong australian dollar and the high cost of production in australia as reasons.

Ordained already announced plans to exit australia as well -- ford also announced plans.

Bmw may build engines in north america for the first time.

This is the capitalize on growing demand.

Bmw is said to be considering the u.s. or mexico as the site for the factory.

Blackstone brings up a break --

This text has been automatically generated. It may not be 100% accurate.

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