Goolsbee: Get used to high unemployment

posted at 10:12 am on September 13, 2010 by Ed Morrissey

It’s a darned good thing that Austan Goolsbee is “young, energetic, and looks good on TV,” because otherwise this would look a lot like Jimmy Carter’s “Malaise” speech. Chris Wallace tries to get Goolsbee to discuss what kind of changes have been made to White House economic forecasts in 2010, while Goolsbee wants to talk about how difficult it was … in 2007, in Europe, or anywhere else than the US after almost two years of the Obama administration policies. The big takeaway is that Goolsbee and the White House expect no appreciable decline in the unemployment rate for the foreseeable future:


GOOLSBEE: But I don’t think the unemployment rate will be coming down significantly anytime in the near future.

WALLACE: Do you think it will — you’ll be — it’s now 9.6 percent. End of this year?

GOOLSBEE: I don’t — look, I try to stay out of the specific forecasting games other than our official forecast. I think it’s clear that the labor market is significantly weakened, has been for some time. We have to do everything we can to try to create jobs and get people back to work.

WALLACE: Could it be 10 percent by the end of the year?

GOOLSBEE: Look, as I say, I’m not going to speculate. We have official forecasts and we’ll release them when they come out.

WALLACE: But you don’t expect…

GOOLSBEE: We need to do everything…

WALLACE: … it to go down appreciably from…

GOOLSBEE: I don’t expect it to go down appreciably. That’s what — our forecast, and most of the private forecasts say the same thing.

Neither does anyone else, but it’s not because of 2007 or “headwinds” from Europe’s debt crisis. It’s because Obama and Goolsbee didn’t learn any lessons from Europe’s debt crisis, and continue to run up huge deficits and push for tax hikes instead of spending cuts. One of the authors of Porkulus, Goolsbee and his team want a watered-down sequel to Porkulus despite the program’s utter failure to produce results. Goolsbee now says it’s because they underestimated the depth of the economic crisis, but they also vastly overestimated the stimulating power of road construction, too.

The main headwinds in this economy come from Obamanomics and ObamaCare. Until those are reversed, we will not experience any kind of serious growth. It’s a recipe for malaise, not recovery, and the economic forecasts clearly show that direction for the US under current leadership.


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Translated: “Our plan is proceeding as intended.”

Bruce MacMahon on September 13, 2010 at 10:14 AM

that’s leadership we can believe in! It’s almost like they have no idea what they’re doing or something…..

search4truth on September 13, 2010 at 10:15 AM

Yeah, Carter must be happy. Aren’t you starting your job with the wrong attitude. Fired!

Don’t worry, we will find someone that believes in growth in 2012.

Oil Can on September 13, 2010 at 10:15 AM

Dem unemployment to spike this November, and again in November 2012.

Vashta.Nerada on September 13, 2010 at 10:16 AM

I guess nothing’s going to change until people no longer have to worry about what these fools are going to do next….

BigWyo on September 13, 2010 at 10:17 AM

Even as they push for more spending, you an already hear Obama’s supporters in and out of government trotting out the old Carter-era justification that the problems of America are chronic, systemic and intractable, and you can only hope to manage them, you can’t actually solve them given the conditions of the world today.

The eventual follow-up, of course, is that the presidency is just too darned big and complicated for one person to handle any more, and certainly not a conservative Republican, so why should voters even think of electing an ideologue like Reagan (name your 2010 nominee here) to the highest office in the land?

jon1979 on September 13, 2010 at 10:18 AM

But can’t you feel the Social Justice in the air?

trubble on September 13, 2010 at 10:18 AM

Get used to Democrats losing!

orfannkyl on September 13, 2010 at 10:19 AM

“We have to get people back to work by relentlessly badmouthing private employers and heaping incomprehensible regulations and taxes upon them.”

Great plan, pal.

NoDonkey on September 13, 2010 at 10:20 AM

Well that sounds like the kind of rhetoric that will inspire voters to reelect Obama: “Yeah, the economy sucks and we don’t expect it to get better anytime soon. FOUR MORE YEARS!!!”

Doughboy on September 13, 2010 at 10:20 AM

Just think Goolsbee; come January of 2013 there’ll be high unemployment at your house.

CurtZHP on September 13, 2010 at 10:21 AM

With leaders like Boehner…we can find a way to lose this thing.

tomas on September 13, 2010 at 10:23 AM

In other words, the economy theory shouldav worked, we are fresh out of ideas.

But hey, continue to vote for Obama and Dems, we’re better than Republicans cause we care.

Sir Napsalot on September 13, 2010 at 10:24 AM

what a worthless interview…

what a worthless “expert”

Gee that old Lasalle Ran great…

golfmann on September 13, 2010 at 10:26 AM

I watched him with Wallace yesterday. I wanted Wallace to just end the interview with, “Mr. Goolsbee, you have not answered any of my questions. Each of your responses were canned and started with ‘all the experts agree’, even when you are disagreeing with my quotes from industry experts. I would now like to ask my producers to NEVER invite you back on this show, unless you choose to answer my questions honestly.”

But it is a game. Wallace and others can’t call the guy a liar even when they catch him in one, or the administration will never send another reprsentative.

I liked part of Breitbart’s speech over the weekend when he said he was going to have his own network news broadcast. The first day he would say ‘Let’s talk about whether or not Katie Couric is racist’

barnone on September 13, 2010 at 10:27 AM

I would think that Obama and his administration would appoint someone who at some point in their life actually had real world experience, not just a bunch of lame book learning. Somebody in his administration must have told him that might be a good idea, unless his entire staff is nothing but yes men, or he refuses to actually listen to anyone. My bet in on the latter.

Johnnyreb on September 13, 2010 at 10:28 AM

Goolsbee was going the “don’t answer the question, talk about something else” tap dance from which I concluded that Goolsbee and the Obama Administration can’t talk about what they are doing, or going to do, or they don’t know what they are doing. It’s really difficult to figure out.

They are either insanely delusional or insanely dishonest.

Skandia Recluse on September 13, 2010 at 10:29 AM

This is more PROPAGANDA coming from the globalists!

When will the socialists realize the American people will push back when forced to go against their very nature…every time!

You can’t keep us down! We will not be silenced or crushed by artificial means of economic destruction!

Like the force of a river, the American people will find a way to cut a new course and force our way around those who seek to stymie the spirit and exceptionalism that has been part of out DNA for hundreds of years.

katy on September 13, 2010 at 10:29 AM

Rule 1: You can’t impose socialize on a prosperous people. You have to impoverish them first.

The Rock on September 13, 2010 at 10:30 AM

I would think that Obama and his administration would appoint someone who at some point in their life actually had real world experience, not just a bunch of lame book learning.

I don’t even think they read many books, unless porn magazines count.

NoDonkey on September 13, 2010 at 10:31 AM

How to create prosperity:

1. Start drilling for oil here. It would create up to 2 million jobs.
2. Start building nuclear power plants. You will have to offer loan guarantees to pull this off.

The Rock on September 13, 2010 at 10:32 AM

This administration is both incompetent and thuggish–a very dangerous combination.

In July 2009, he [Austan Goolsbee] said on The Colbert Report,

“In one year, the economy is going to be in a very happy place.”

http://www.economicpolicyjournal.com/2010/09/new-cea-head-on-epjs-unrequited-emails.html

Sebelius Has a List
Political thuggery from HHS.

http://online.wsj.com/article/SB10001424052748703597204575483900330728436.html?mod=WSJ_Opinion_LEADTop

The threat to use government regulation to destroy or harm someone’s business because they disagree with government officials is thuggery. Like the Obama administration’s transfer of money from Chrysler bondholders to its political allies in the United Auto Workers, it is a form of gangster government.

http://townhall.com/columnists/MichaelBarone/2010/09/13/gangster_government_stifles_criticism_of_obamacare/page/full/

mountainaires on September 13, 2010 at 10:32 AM

Meh… the newest capuchin monkey for the Obummer organ grinder.

bloviator on September 13, 2010 at 10:32 AM

Bring in the next clown.

That’ll fix the economy.

David2.0 on September 13, 2010 at 10:34 AM

I saw that interview. Painfull.

My takeway on Goolsbee: He’s a better comedian than economist.

WisRich on September 13, 2010 at 10:34 AM

How to create 5 million jobs:

There are 12 to 20 million illegal aliens in the US. They hold between 5 and 10 million jobs.

Make it impossible for illegal aliens to stay here.

1. Offer a $10,000 reward to the first person (illegal alien or otherwise) to turn in an employer who hires illegal aliens and failed to do due diligence to screen them out. Every illegal alien knows who they work for.
2. Make it illegal to rent housing to illegal aliens. The penalty would be: The landlord gets to refund all the rent.

No employer or landlord would risk hiring them or renting to them.

Frees up millions of jobs.

Unemployment over!

This will never happen as you must first impoverish a people before imposing socialism on them.

The Rock on September 13, 2010 at 10:37 AM

Goolsbee now says it’s because they underestimated the depth of the economic crisis, but they also vastly overestimated the stimulating power of road construction, too.

The Administration said that they spent $28 billion, or about 3.6% of the Porkulus money, on road construction. Most of the rest went to states as a one-time aid to (state) government employees, enabling Governors to put off tough decisions (like those made by Chris Christie of NJ) for a year or two, but that doesn’t create jobs in the private sector.

If the Porkulus had been $100 billion spent ONLY on needed infrastructure projects, it would have created far more construction and engineering jobs, and we would be $700 billion less in debt, on which we’ll probably pay $28 billion a year in interest for decades. But for all the talk about “shovel-ready” projects, over 96% of Porkulus went to other things which DIDN’T create jobs.

Steve Z on September 13, 2010 at 10:38 AM

It’s going to get even more fun after energy costs necessarily sky rocket under a Cap & Trade scheme that the Obama Administration will use the EPA to initiate and enforce. Stay tuned after the November elections. A lame duck administration may well be even more dangerous to jobs, the economy, foreign policy, etc. than the one we have now.

Ordinary1 on September 13, 2010 at 10:41 AM

In other words: A more equal global balance of wealth requires the continued devaluation of America and the further propping up of Africa and South Asia.

abobo on September 13, 2010 at 10:44 AM

Looks like the indoctrination of young people is well underway with the Dems Campus Progress program to get all the young people to come out and vote in November. They are using Justin Bieber, who is not old enough to vote and is Canadian, and whose fans are 12 years old, in a campaign to lure them to the polls.

silvernana on September 13, 2010 at 10:44 AM

If Bammie has messed up and hired someone unwilling to lie for him, he’s in big trouble. Goolsbee may not last long.

Re high unemployment, what makes anyone think that the democratics care about high unemployment? They appear to want to transform the country into a European-socialist paradise, and a given feature in such a system is much higher unemployment. They may have accepted that price.

slickwillie2001 on September 13, 2010 at 10:44 AM

Goolsbee now says it’s because they underestimated the depth of the economic crisis, but they also vastly overestimated the stimulating power of road construction, too.

Or it’s because they are lying liars who are not really trying to stimulate the economy but rather paying off their cronies. Just a possibility.

samuelrylander on September 13, 2010 at 10:45 AM

New Slogan: Democrats are Rooting for Americans to Fail!

BuckeyeSam on September 13, 2010 at 10:47 AM

Goolsby sounds like a great Halloween name. I predict a horror show from the Whitehouse. The economy is a horror show.

petunia on September 13, 2010 at 10:47 AM

Artificially induced economic destruction! Artificially induced malaise?
Uh yah…

http://weaselzippers.us/2010/09/13/feds-spent-800000-of-obamas-stimulus-bill-teaching-african-men-how-to-wash-their-junk-after-having-sex/

katy on September 13, 2010 at 10:48 AM

I saw this tool Goolsbee (quickly being renamed Ghoulsbee) and he was an absolute bust. He refused to offer opinions, prognostications, confidence levels, or anything forward-looking in spite of having economic data that probably justifies extending the tax cuts indefinitely.
.
He has said in the past that his main preoccupation, other than being a loudmouth professor and halfassed comedian, is to help Øbummer politically. Whenever Wallace pushed him on the issues and asked for conclusions based on data, Professor Ghoulsbee would repeat his previous answer in a louder volume with more force, as it Wallace were deaf or dense. I dislike buffoons like this intensely. He’s a jerk.

ExpressoBold on September 13, 2010 at 10:48 AM

Another odumbo dork

ultracon on September 13, 2010 at 10:49 AM

Looks like the indoctrination of young people is well underway with the Dems Campus Progress program to get all the young people to come out and vote in November. They are using Justin Bieber, who is not old enough to vote and is Canadian, and whose fans are 12 years old, in a campaign to lure them to the polls.

silvernana on September 13, 2010 at 10:44 AM

I’m thinking thats a career that ends young.

Poor kid, he can not even imagine that no matter what his talent, half of American parents will never buy anything he is selling again.

petunia on September 13, 2010 at 10:50 AM

Thundering hoofbeats of yesteryear rides the Lone Ranger Jimmy Carter……..Zippy!

Herb on September 13, 2010 at 10:53 AM

WisRich on September 13, 2010 at 10:34 AM

I thought he did a poor job yesterday and he wasn’t even funny. It’s amazing how they always talk up liberals as funny, e.g. Kagen, this dweeb, but when conservatives make a joke, the left immediately is offended.

TimTebowSavesAmerica on September 13, 2010 at 10:53 AM

Wouldn’t that be a hoot if the Global Warming people took the same stand?
Look, it is warmer and getting warmer, so everything is okay because that is what we predicted. Our forecast is for warmer earth, and that is what we are getting, so we are on target and everything is just dandy.
Somehow I just don’t think that would work for his liberal friends…
The fact is, they know nothing, and have no plan…they don’t even know what is actually happening, why it is happening, and what to do about it, if anything…and that goes for Climate Change, and this administration. They are both clueless…

right2bright on September 13, 2010 at 10:55 AM

samuelrylander on September 13, 2010 at 10:45 AM

Along with being liars they also underestimated the intelligence of the American people.

Herb on September 13, 2010 at 10:55 AM

That was some comedy right there. Just what we needed during the Great Recession.

faraway on September 13, 2010 at 10:56 AM

Voters: Don’t get too attached to your current job.

Kafir on September 13, 2010 at 10:57 AM

With Obama’s administration, Americans have found out what happens when economic theory meets economic reality. “The smartest people in the room” turned out to be far from it.

kingsjester on September 13, 2010 at 10:59 AM

Poor kid, he can not even imagine that no matter what his talent, half of American parents will never buy anything he is selling again.

petunia on September 13, 2010 at 10:50 AM

That is an excellent point!

silvernana on September 13, 2010 at 11:00 AM

No jobs equals angry voters. Tapdance to that, schmuck.

SurferDoc on September 13, 2010 at 11:01 AM

This guy’s job should be eliminated, he has nothing to offer except wasting our time with his ass covering.

echosyst on September 13, 2010 at 11:04 AM

We have here the tingle in the leg of lowered expectations.

Who’dathunk that what a supposed idiot has supposedly done, the Bringer of Change (TM) could not undo?

unclesmrgol on September 13, 2010 at 11:04 AM

Obama is the example we’ll use for years to come of why one should not hire someone who isn’t qualified, who doesn’t have the knowledge, skills or ability to do the job. One Big A$$ Mistake America!

CCRWM on September 13, 2010 at 11:07 AM

In an interview with Tim O’Reilly, Goolsbee said that unemployment would be one of the last improvements in a recession recovery. However, if you listened to the prez when he was promoting the stimulus, unemployment was the first thing to improve although the stat was probably directed at fellow democrats and cronies.

AltTuning on September 13, 2010 at 11:10 AM

Goolsbee now says it’s because they underestimated the depth of the economic crisis, but they also vastly overestimated the stimulating power of road construction, too.

NEW DEMOCRAT SLOGAN: We’ll get it right — sooner or later!

LASue on September 13, 2010 at 11:12 AM

the beatings will continue until morale improves

DrW on September 13, 2010 at 11:20 AM

Goolsbee and his team want a watered-down sequel

Call it “Just-add-water economics,” a direct reference to his comedy group and his main line of work. Hit him in his “craft.”

Christien on September 13, 2010 at 11:20 AM

Can we call it un-O-ployment in honor of Barack?

profitsbeard on September 13, 2010 at 11:23 AM

Leadership you can believe in! If it doesn’t succeed the first time, do it again. After all, Socialist Thought is CORRECT thought. All else is error. The Plan will succeed, only people fail.

GarandFan on September 13, 2010 at 11:24 AM

Obama is the example we’ll use for years to come of why one should not hire someone who isn’t qualified, who doesn’t have the knowledge, skills or ability to do the job. One Big A$$ Mistake America!

CCRWM on September 13, 2010 at 11:07 AM

Unfortunately thousands of companies and colleges across the country are forced to do exactly this every year. It’s called affirmative action. If you don’t get with the program, Al Sharpton appears on your doorstep with a bullhorn and the federal government comes after you.

slickwillie2001 on September 13, 2010 at 11:26 AM

I’m sure he needed a fresh Depends, but Jimmy Carter must have been dancing with he saw that. Even one rung up the ladder feels great when you’re no longer on the bottom.

Extrafishy on September 13, 2010 at 11:51 AM

From the Laffer Curve to the Goolsbee Gulch. The biggest single expenditure in the history of the public fisc wasn’t quite enough, so they want to spend more to tweak it, because this time they know exactly what effect the additional money will have.

Knuckleheads.

percival on September 13, 2010 at 11:54 AM

Malaise is the right word. Our Enlightened Betters pass their grand plans on how the run an economy. Even make specific predictions about how well their great ideas are going to work. When they don’t work we start hearing how the economy is now in a “new normal” phase. Our best days are behind us, they say.

We’ve heard this crap before. All the best and brightest telling us how our day has passed. Might as well call the “new normal” the new “malaise”. Carter talked about a crisis of confidence among the American people. Jerry Brown ran in the Democrat primary under a theme of lowered expectations. Reagan came along and changed the world.

The Fatal Conceit rears its ugly head again.

Dale Wyckoff on September 13, 2010 at 11:55 AM

Goolsbee: Get used to high unemployment

It is uplifting sentiments such as this that will get your worthless, unimaginative and inexperienced academic a$$ kicked to the curb in 2012, Austen Goolsbee, International Man of Telegenicity …

ya2daup on September 13, 2010 at 12:19 PM

Obama knows that in order to remake a country in his statist image, he must first destroy it’s private economy and redistribute what’s left of our private property.

CliffHanger on September 13, 2010 at 12:29 PM

Even FDR would make hash of the current administration.

Roosevelt brought us rural electrification and built massive hydroelectric dams. What has this gang of fools made other than disasters?

Dark-Star on September 13, 2010 at 12:45 PM

GOOLSBEE: But I don’t think the unemployment rate will be coming down significantly anytime in the near future.

Why has Obama has moved this fellow, who already admits defeat, to the head of his economic commission?

One question left after this interview was: “How many years of high unemployment will Obama accept before he changes his policies?”

- – - –

I really wanted to ask GOOLSBEE one question in this interview.

How did the tax cuts for the middle class, the ones you want to extend, contribute to the destruction of the middle class that you are claiming was the goal of the Bush administration?

Freddy on September 13, 2010 at 1:11 PM

This was the exact, same tactic during the Carter years: the new ‘normal’ for unemployment was to be 6%. He missed that, too… Then the talking heads started to ratchet that number up. Why in no time 7% was the new ‘normal’!

This is called lowering the bar on performance.

And it only happens with holier than thou Democrats in office.

ajacksonian on September 13, 2010 at 1:20 PM

That wormy little snake is a fitting addition to Obama’s merry band of progressive Marxists.

rplat on September 13, 2010 at 1:39 PM

More unemployed-more unemployment benefit extensions-more Democrat votes. Pretty simple

Hummer53 on September 13, 2010 at 1:50 PM

There comes a time when all citizens need to evaluate the goals, aspirations and commitment to the
laws of the land we have chosen.
That time is well upon us.
Perhaps for the very survival of the United States depends on the answers to these basic questions:
• What is the Economy in a Death Spiral.
• Why are there immigration quotas.
• Who benefits from the illegal immigration work force.
• Why does the Federal Government passively condone such an illegal work force.
With an annual budget of $3,518,000,000.00 (2009 Federal Budget alone) and little going back into the
community, the Death Spiral starts. At one time money would go from my pocket to my neighbors,
then from his pocket to his neighbors. This was the multiplier effect of economics spending. Now it
leaves the community never to return. The Death Spiral starts.
It is basic to any immigration policy to have the knowledge of Who,Why, Where and How Many.
This way the process of immigration can be supported by the community and accounted for by the
Federal Government. Our Elected Representative have certainly lost control of these basic tenants. The
math is simple. If there are 17,000,000 (or any number you want) illegal immigrants working, that’s
17,000,000 Americans that are not.
In the 1970′s , companies would say they were going to move over seas for inexpensive labor (most
did not move). They found it less expensive to stay in place, bring the labor here and shift much of the
expense onto the Federal Government. With some of the savings, buy a few Elected Officials (feeding
their never ending need for re-election cash) to run protective interference.
What to do?
• 17,000,000 is a sustaining population. Get over it they are here. Close the borders, don’t let
more in, for now. Make it easy to go back.
• Get rid of any and all politicians that have in any way, at any time, or for any reason, supported
ACTIVELY or PASSIVELY this current dementia.
• Aggressively pursue RICO violations against companies and politicians who traffic in this
human labor at sub-standard rates. This is Racketeering and this is Slavery.
• Do not allow, stand for or tolerate any more slaps on the wrists or look the other way politics.
Follow the truth and the Law no matter where it leads or how high it goes. It is a criminal act.
To this I put my name so that all will know me. I am a third generation of a proper immigrant. Served
24 year and three wars in the US Army. Son of a 36 year veteran of the Chicago Police Department.
Grand son of a 30 Veteran of the Chicago Fire Department. Nephew of two retired Chicago Police
officers, three WWII Sailors Two Army Air Corps and brother-in-law of two Korean War Vets. My
Family has served the country that my Grandparents legal adopted.
Joseph Stanley Price

jpcpt03 on September 13, 2010 at 2:09 PM

Did I miss it? Was Obama annointed king of the US? He must have been; Trichet just said so:

Karl Denninger wonders:

Did We Just Cede National Sovereignty?

http://www.bloomberg.com/news/2010-09-13/trichet-says-he-s-confident-basel-regulations-will-be-implemented-in-u-s-.html
Or when should I expect the Senate to ratify this treaty?


What has been decided is what’s necessary for all banks at a global level,” Trichet said. “We’re in a global economy, which is a pertinent entity economically and financially, and we have to get a level playing field.”

Ok, that’s an international agreement.

The Constitution says (Art 2 Section 2), on The Presidency (Executive Branch):

He shall have Power, by and with the Advice and Consent of the Senate, to make Treaties, provided two thirds of the Senators present concur…..

So while Trichet can express his hopes all he wants, I must ask:

Do we still have a Constitution, in which advice and consent of 2/3rds of the Senate is required to form a binding agreement between nations, or will President Obama and Treasury, along with Ben Bernanke,once again treat the US Constitution as toilet paper?

http://market-ticker.org/akcs-www?post=166504

mountainaires on September 13, 2010 at 2:19 PM

A young Jimmy Carter. With guys like this in Government, we can all expect things to get much worse. They have screwed up the Country big time and now- just to tell us that it will be the norm. This guy looks good on paper, went to Ivy League Schools but the way he conducted himself on Fox News- one would think that he went to a two year community college.

flintstone on September 13, 2010 at 3:36 PM