Tag: Austan Goolsbee

Goolsbee Off Message

I always kind of liked Austan Goolsbee. He was one of the few reasons I had hope that this Administration wouldn’t completely screw the economic pooch. After he resigned, I saw him on The Daily Show and he was giddy as a schoolgirl at the prospect of leaving politics.

And now it looks like Austan is off-message:

Former Obama administration economic adviser Austan Goolsbee said Thursday that if given a second chance he would not have backed the Cash for Clunkers program or the home buyer tax credit passed in 2009 to stave off further economic distress.

“Because we didn’t know if [economic recovery was] going to be short or long,” the Obama administration tried measures to address both scenarios, Goolsbee explained on MSNBC’s “Morning Joe.”

“If you look at Cash for Clunkers or the first home buyer tax credit, they were geared to trying to shift [recovery] from 2010 into 2009. Given it’s taken this long [to recover], I don’t think you would do that short-run stuff,” Goolsbee added.

What he’s saying is that that the fiscal and economic crisis were far worse than anyone knew. The economy was shedding jobs and GDP at rates never seen. We really were headed for a Great Depression.

What exactly prevented that is debatable. Goolsbee thinks it was the stimulus. It might have been the Federal Reserve. Other think it was TARP. Zakaria argued that it was globalization — we were able to lean on the economies of India and China to prevent a complete collapse. Personally, I think it will be along time before we know why we ended up here instead of in Hoovervile. It was decades before anyone really understood the Great Depression. And Keynesians still don’t.

In any case, we’re finally getting to the point where even Team Obama have to admit that, given the severity of the crisis, all these ridiculous gimmicks like Cash for Clunkers didn’t work and could never have worked. Of course, conservatives knew this all along and were pilloried for it, just like we’re being pilloried right now for opposing Stimulus IV: Hire More Government Workers right.

State of the economy

The next time some libtard tells you that the left cares about jobs and is actually concerned about employment, remember this Bloomberg report on how bad things are:

McDonald’s Corp. (MCD), the world’s biggest restaurant chain, said it hired 24 percent more people than planned during an employment event this month. McDonald’s and its franchisees hired 62,000 people in the U.S. after receiving more than one million applications, the Oak Brook, Illinois-based company said today in an e-mailed statement. Previously, it said it planned to hire 50,000.

Bold is me. Get that? 1 million people applied for work at McD’s. That’s one million. That’s one million people without jobs willing to work at McD’s and ask you if you would like fries with that. Some 62K got jobs. That’s how the demcorats create jobs for ya. Obama was too busy to comment. Joy, joy.

UPDATE: Lucky for those of us that are not insane, it looks like most Americans get it. This economy sucks. What the left believes in sucks. The dollar is in a death spiral, and they don’t care. For those of us that know history means something, there is this great article about the Reagan vs. the Obama recovery

Growth: It’s been nearly two full years since the recession officially ended, and the economy is still struggling to get off the ground. It didn’t have to be this way. When the Commerce Department released its estimate for first-quarter growth — a meager 1.8% — President Obama’s chief economic adviser, Austan Goolsbee, at least conceded that “faster growth is needed to replace the jobs lost in the downturn.”

And granted, the economy needs to expand by at least 2.5% just to keep up with growth in the labor force. So at 1.8%, we’re essentially losing ground, a fact that last week’s 429,000 initial jobless claims underscores. But what Goolsbee didn’t acknowledge is that the economy could be growing at a much faster rate, and would be if it weren’t saddled with Obama’s reckless policies. How do we know this? Compare the two worst post-World War II recessions. Both the 1981-82 and the 2007-09 downturns were long (16 months and 18 months, respectively) and painful (unemployment peaked at 10.8% in 1981-82 and 10.1% in the last one).

What’s dramatically different, however, is how each president responded.

Obama massively increased spending, vastly expanded the regulatory state, and pushed through a government takeover of health care. What’s more, he constantly browbeats industry leaders, talks about the failings of the marketplace and endlessly advocates higher taxes on the most productive parts of the economy.

In contrast, Reagan pushed spending restraint, deregulated entire industries, massively cut taxes and waxed poetic about the wonders of a free economy.

For the economic illiterates this means Reagan trusted in the ingenuity of the American people, set them free of their government bureaucracy, and they flourished. Obama on the other hand expanded government, scammed the tax payers out of over a trillion dollars for his friends, lobbyists, operatives, and the many demcorat campaign coffers, and has run the most anti-business government – unless you are one of these mega corps in bed with the left of course like GE – since the stupid demcorat imposed schemes, laws, and scams resulted in the worst economic collapse of my life time, then promptly blamed Bush for that.