Former U.S. Secretary of Labor Elaine Chao speaks at a luncheon sponsored by the Heritage Foundation at Mount Vernon in Washington D.C. on September 19 (CORRIE DOSH)

With GDP growth stagnating and job seekers giving up on the hope of employment, the United States' economy is still "very fragile" without the quick recovery that usually resolves a long and deep recession, said former U.S. Secretary of Labor Elaine Chao, at a September event sponsored by the conservative Washington D.C.-based think tank The Heritage Foundation—and, Asian-American communities, in particular, are suffering the consequences.

Speaking on the impact and concerns of Asian-American voters in the 2012 election cycle, Chao, the first American woman of Asian descent to be appointed to a president's cabinet and the only member of President George W. Bush's cabinet to serve his entire term, said anemic job growth numbers are not keeping pace with the population growth.

"I'm very saddened when policy makers make the wrong decisions that hurt the economy and hurt job creation. The government doesn't create jobs, the government creates the environment through which the job creation by the private sector can occur," said Chao, a distinguished fellow at The Heritage Foundation and political commentator.

The only way to compete against low-wage manufacturers in countries like China is to maximize America's greatest strength: a labor force that is innovative, highly productive and creative, Chao said. America should focus on "high-end" jobs that pay higher-wages and are of higher value.

"Don't underestimate Americans," Chao said. "There is something in the system here that allows for such ingenuity, such creativity and teamwork that they can do wonderful things. Americans value the underdog."

Chao, who immigrated to the United States from Taiwan at the age of eight, said the American Dream is still alive and still attracts people from around the world seeking a better life for themselves and their families. Even as Asian countries develop and their economies improve, America remains a "beacon of hope" to immigrants.

"Why do you come to America? It's a different language and a different culture. People are strange here, and different than what you're used to. So why do you come?" Chao said. "People come because they think America is a very open, tolerant country in which there are lots of opportunities. I hope that is what we will continue to cultivate and develop."

American remains a place where entrepreneurs can build a company without fear that a single mistake will ruin their dreams, Chao said. The United States is a place of reinvention, where it is never too late to realize success. However, the Obama administration has threatened that tradition with its inability to pull the country out of recession, she said.

"If it were any other president who had the poor economic record that this president has had, there would be no question that there would be a change in the presidency," she said. "Most people will acknowledge that President Obama is a nice man with a lovely wife and two beautiful children, but he seems incapable of managing the economy."

The formula for job creation is "pretty simple," Chao said. One, you have to "stop doing the bad things" like raising the specter of increased taxes and, second, lift oppressive regulations that act like "a tax" on small businesses.