NEW YORK (TheStreet) -- The economy hasn't been doing well for the past seven years and is in need of change, former Wells Fargo (WFC) - Get Report CEO Richard Kovacevich told Fox Business News' "Cavuto: Coast to Coast" on Friday afternoon. 

"We have the wrong monetary and fiscal policies," Kovacevich said. "The policies that have worked in the past have been ignored." 

The biggest problem with today's economy is the "extreme level of regulation" that weighs on businesses, he pointed out. Because regulation is two to three times greater now than under any other administration, productivity has taken a hit and businesses no longer have faith in the U.S. economy, he explained. 

In order to fix the economy, we need to work on raising productivity, reducing regulations and reducing Obamacare costs for businesses, he said. "All of these things have been very, very negative for business and job growth," Kovacevich said. 

The corporate tax rate should be around 25% or a little lower, in his opinion. 

While 39% is reasonable for the upper income tax rate, a better solution is to lower marginal income tax rates to 25% to 30% and eliminate reductions, he said. That way people have "relatively level income coming in" and everyone pays the actual rate because reductions wouldn't be an option, he explained. 

"That's a much better way to have the economy grow," he concluded. 

(Wells Fargo is a holding in Jim Cramer's Action Alerts PLUS charitable trust portfolio. Want to be alerted before he buys or sells the stocks? Learn more now.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Wells Fargo as a Buy with a ratings score of B. This is driven by a few notable strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.

You can view the full analysis from the report here: WFC

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