Austan Goolsbee

  • Aired:  02/24/11
  •  | Views: 65,145

Austan Goolsbee says President Obama's budget will get America to live within its means and stabilize the debt. (8:44)

(CHEERS AND APPLAUSE)

>> Jon: WELCOME BACK, MY GUEST

TONIGHT, PRESIDENT OBAMA'S

CHAIRMAN OF THE COUNCIL OF

ECONOMIC ADVISORS, WELCOME BACK

TO THE PROGRAM AUSTAN GOOLSBEE.

(CHEERS AND APPLAUSE)

>> DID YOU GET THE BOUBON?

>> I GOT THE BOUBON FROM THE

KIDS.

>> Jon: LET THIS BE A LESSON TO

YOU, DON'T CHILDREN.

SO WHAT DO YOU HAVE THERE?

YOUR BUDGET?

>> WE GOT A BUDGET AND WE GOT A

JOBS COUNCIL AND I'M COMING DOWN

HERE TO TELL YOU WE'RE GOING TO

GROW OUR WAY OUT OF THIS THING,

JOHN.

(CHEERS AND APPLAUSE)

>> THE PRESIDENT, HE WENT TO

CLEVELAND AND CLEVELAND START UP

AMERICA....

>> Jon: UH-HUH.

>> NO, STOP WRITING THAT.

>> ALL RIGHT.

WE'RE GOING TO GROW OUR WAY OUT

OF THIS.

>> Jon: IS THAT HOW WE WIN THE

FUTURE?

WHAT IS THIS WIN THE FUTURE

THING.

>> I'LL TELL YOU....

>> Jon: LET ME ASK A QUESTION.

HOW FAR BEHIND ARE WE IN THE

FUTURE?

(LAUGHTER)

HOW BADLY DO WE TRAIL THE FUTURE

RIGHT NOW.

BECAUSE I THINK THE FUTURE

HAPPENS NO MATTER WHAT WE DO.

>> HERE'S WHAT I'M GOING TO SAY,

ECONOMISTS HAVE DOCUMENTED WHAT

LEADS TO GROWTH.

IF YOU ASK WHAT ARE THE

COMPONENTS OF GROWTH.

HUMAN CAPITAL, PHYSICAL CAPITAL

AND INNOVATION PRODUCTIVITY.

THEY WEREN'T AS INTO THAT.

THEY TRANSLATE THAT TO....

>> Jon: WHO?

>> THE MESSAGE PEOPLE.

OUTEDUCATE...

(LAUGHTER)

OUTINNOVATE, OUTBUILD THE REST

OF THE WORLD.

>> Jon: SO IT STILL MAKES SENSE

WE WERE GOING TO WIN THE FUTURE.

WILL WE KICK THE FUTURE'S ASS?

>> IF WE HAVE TO.

>> Jon: DO WE GET PENALIZED IF

WE TAUNT THE FUTURE AFTER

DEFEATING IT?

>> (LAUGHS)

WE'RE GOING TO WIN IT, WE'RE

GOING TO KEEP IT, WE'RE GOING TO

BE... IT'S GOING TO BE GOOD FOR

US.

WOE L WE STARTED THE RIGHT WAY.

2010 HAS GOT TO BE FASTER BUT

WE'VE HADED MORE THAN A MILLION

JOBS IN THE PRIVATE SECTOR.

THE PRESIDENT'S NOW TRYING TO

EXPAND THAT OUT BEYOND JUST THE

SECTORS THAT IT'S BEEN IN.

IT NEEDS TO BE BROAD-BASED.

THE 2000s WERE THE FIRST

RECOVERY IN U.S. HISTORY WHERE

THE MIDDLE-CLASS FAMILY'S INCOME

FELL BY $2,000.

>> Jon: THEY'RE GETTING

HAMMERED.

>> THEY WERE GETTING HAMER

BEFORE THERE WAS A RECESSION

THEN THEY GOT DOUBLE HAMMERED IN

THE RECESSION.

>> Jon: WE KEPT HEARING FOR

YEARS DEFICITS DON'T MATTER.

DICK CHENEY FAMOUSLY SAID,

RONALD REAGAN PROVED DEFICITS

DON'T MATTER WHEN PEOPLE CAME IN

THE REPUBLICANS CAME IN FOR

EIGHT YEARS, DEFICITS DON'T

MATTER.

SUDDENLY DEFICITS ARE THE ONLY

THING THAT MATTER.

>> WE'VE GOT TO LIVE WITHIN OUR

MEANS.

THE PRESIDENT'S BUDGET DOES

THAT.

IT CUTS THE DEFICIT MORE THAN

ANY PRESIDENT'S BUDGET HAS CUT

IT BEFORE.

>> Jon:

>> HE WOULD SAY THAT BECAUSE

HE'S GROWN IT MORE THAN ANY

PRESIDENT HAS BEFORE.

>> Jon: WELL, THE RECESSION GREW

IT.

>> BEFORE THE....

>> Jon: DID I JUST LEAVE THE

FUTURE?

IS THAT WHAT HAPPENED?

>> I THAT'S DISTURBING ME.

>> Jon: BEFORE THE PRESIDENT,...

>> BEFORE THE PRESIDENT TAKES

OFFICE THE CONGRESSIONAL BUDGET

OFFICE SAYS THE DEFICIT IS ABOUT

TO BE $1.3 TRILLION BECAUSE

THAT'S WHAT HAPPENS WHEN YOU GO

INTO RECESSION.

NOW WE ARE COMING OUT OF THE

DEEPEST RECESSION WE'VE GOT TO

GROW.

IT DOESN'T MAKE SENSE.

WE'RE GOING TO LIVE WITHIN OUR

MEANS BUT IF YOU'RE GOING TO CUT

GRANTS THAT ARE GOING TO KEEP

NINE... YOU KNOW, THE EDUCATION

MONEY FOR NINE MILLION COLLEGE

STUDENTS, THAT'S NOT HELPING

CREATE A JOB NOW, IT'S NOT

HELPING WIN THE FUTURE JOB.

>> Jon: TWO QUESTIONS AND PLEASE

DON'T USE THAT PHRASE AGAIN.

(LAUGHTER)

TWO QUESTIONS.

THE FIRST IS IF STILL US WILL IS

THE THING THAT GOT US OUT OF

THIS RECESSION AND WE STILL NEED

TO STIMULATE THE ECONOMY TO

GENERATE JOBS, WHY THAT HAS

ADMINISTRATION IN SOME RESPECTS

BACKED AWAY FROM STIMULUS

SPENDING AND SAID WELL, ACTUALLY

STIMULUS SPENDING DID IT THERE

BUT NOW WE ACTUALLY HAVE TO

ADDRESS THE DEFICIT BECAUSE

YOU'RE RIGHT AND THE SECOND PART

OF THAT QUESTION IS... I MEAN,

IT FEELS LIKE THERE ARE SOME

DRACONIAN CUTS IN HERE.

I MEAN, THE HOME HEATING OIL

SUBSIDY PROGRAM FOR LOW-INCOME

FAPL PLEASE?

THAT FEELS LIKE WE ARE NOT

FUNDAMENTALLY CHANGING OUR

ECONOMY TO WIN THE FUTURE, WE'RE

TRYING TO KILL POOR PEOPLE SO

THAT THE FUTURE DOESN'T KNOW

THEM.

(CHEERS AND APPLAUSE)

IS THAT...

>> LET'S START WITH THAT.

>> Jon: ALL RIGHT.

>> BECAUSE, LOOK, A BUNCH OF

THESE CUTS, THEY PAIN ME IF YOU

LOOK AT THEM AND THE

PRESIDENT... THERE'S NO...

NOBODY WANTS... FEELS GOOD ABOUT

CUTTING ANYTHING.

IF YOU TAKE THAT PROGRAM CALLED

THE LAHEY PROGRAM, IT WAS RAISED

DRAMATICALLY IN 2008 BECAUSE OF

T PRICE OF OIL WAS $140 A

BARREL.

>> RIGHT.

>> AND SO IT WENT UP A

SUBSTANTIAL AMOUNT.

NOW THIS WOULD CUT IT.

IT WOULD CUT IT BECAUSE WE'VE

GOT TO GET OUR BUDGET WITHIN OUR

MEANS BUT IT CUTS IT BACK TO A

LEVEL THAT IS MORE PROPORTIONAL

TO WHAT THE PROGRAM WAS BEFORE

IT WENT ON BECAUSE OF THE OIL...

>> SO PRICES RIGHT NOW FOR HOME

HEATING OIL ARE HIGHER THAN...

>> THEY ARE HIGH.

>> Jon: THEY'RE HIGHER THAN THEY

WERE...

>> THEY'RE NOT HIGHER THAN THE

$140.

>> Jon: NO, NOT THE BARREL BUT

THE HOME HEATING OIL INDEX IS

3.6 INSTEAD OF 3.4.

>> I'M IMPRESSED.

I LOVE THIS CONVERSATION.

>> Jon: CAN I TELL YOU

SOMETHING?

I'M ACTUALLY READING THAT OFF

YOUR FOREHEAD.

(LAUGHTER)

I GOT THAT RIGHT BEFORE THE

SHOW.

I GOT PEOPLE, BABY.

>> TAKE THAT OR YOU TAKE THE

PELL GRANT.

REPUBLICANS ARE TRYING TO GET

RID OF A WHOLE BUNCH OF THE PELL

GRANTS THAT ARE, AS I SAY, WOULD

AFFECT NINE MILLION STUDENTS.

OBAMA HAS PROPOSED CUTS TO PELL

GRANTS, THE RESEARCH SHOWS THAT

THE CUT THAT HE PROPOSED IS

ABOUT PELL GRANTS FOR SUMMER

PROGRAMS.

NOW THE RESEARCH SHOWS... IT

STILL STINKS NOT TO HAVE THAT,

BUT THAT DOESN'T LEAVE KIDS TO

DROP OUT OF SCHOOL.

>> Jon: IT JUST FEELS LIKE ONCE

AGAIN YOU'RE FIGHTING THE BUDGET

ON THEIR TERMS IN TERMS OF THE

THEORY OF WHAT GOVERNMENT SHOULD

ACCOMPLISH VERSUS... YOU KNOW,

88% OF THE FUNDING, YOU HAVE TO

CUT 1.1 TRILLION...

>> OUT OF 12% OF THE BUDGET.

I AGREE WITH YOU, TO ME THIS

IS... WE GOT FUN HEALTHY.

WE GOT OUT OF SHAPE, WE GOT

OVERWEIGHT.

THE DOCTOR SAYS YOU NEED TO LOSE

WEIGHT AND GET HEALTHY SO YOU

START AN EXERCISE REGIMENT....

>> Jon: WHAT ARE YOU LOOKING AT

ME FOR?

>>

(LAUGHTER)

>> I'M LOOKING AT MYSELF, TOO.

WE NEED TO GET ON AN EXERCISE

REGIMENT, BUT WHAT WE DON'T NEED

IS LET'S CUT OFF OUR FINGER,

THAT WEIGHS EIGHT OUNCES.

>> Jon: I UNDERSTAND THAT.

BUT YOU DON'T GET HEALTHY BY

SAYING "BY THE WAY, NO MORE

SPINACH."

THERE ARE CERTAIN THINGS THAT...

THE ARGUMENT HAS TO BE MADE...

IF YOU WANT TO MAKE THE ARGUMENT

FOR GOVERNMENT THAN THAT

ARGUMENT HAS TO BE MADE.

THESE HAVE TO BE FUNDAMENTAL

CHANGES IN THE WAY WE LOOK AT

ENTITLEMENTS.

THAT'S WHAT THEY'RE DOING.

THEY'RE USING THE BUDGET TO

FUNDAMENTALLY CHANGE THE WAY

THAT GOVERNMENT OPERATES.

>> TO TRY THE CHANGE THE WAY

GOVERNMENT OPERATES.

>> AND THEY FIGHT THAT IN THE

SAME BATTLEFIELD...

>> BUT I DO NOT AGREE WITH THE

PREMISE THAT THE PRESIDENT IS

JUST PLAYING INTO THAT.

HE ISN'T.

HE'S HIGHLIGHTING THESE ARE TWO

TOTALLY DIFFERENT ISSUES IN THE

SHORT RUN WE'VE GOT TO GET THE

ECONOMY GROWING.

NOW, WE KNOW WE'VE GOT TO LIVE

WITHIN OUR MEANS, THE BUDGET IS

ABOUT GETTING US LIVING WITHIN

OUR MEANS AND STABILIZING THE

AMOUNT OF DEBT WE HAVE AS A

SHARE OF THE ECONOMY.

BUT IF WE'RE NOT GENERATING JOBS

WE'VE GOT NOTHING.

WITHOUT GROWTH WE'RE NOT GOING

TO BE ABLE TO BALANCE THE

BUDGET.

PERIOD.

SO THAT'S WHY THE PRESIDENT....

>> Jon: ARE YOU... THE GROWTH

PROJECTIONS THAT YOU PUT OUT,

THEY'RE PRETTY HIGH

COMPARATIVELY FOR WHAT PEOPLE

SAID.

DO YOU FEEL GOOD ABOUT IT?

>> I FEEL GOOD ABOUT IT AND FOR

2011 AND 2012 WE HAD TO LOCK IN

THE PROJECTIONS BACK IN NOVEMBER

BEFORE THERE WAS THE TAX DEAL,

BEFORE THERE WAS THE PRIVATE

SECTOR SAYING CONDITIONS ARE

GOING TO GET SUBSTANTIALLY

BETTER SO WE'RE ACTUALLY FOR THE

NEXT TWO YEARS BELOW WHAT THE

MARKET IS.

>> Jon: I APPRECIATE YOU COMING

HEAR WHAT THE BOUBONS.

ARE YOU HEADING BACK TO

WASHINGTON?

>> YUP.

BACK TO WHERE WE'RE PUTTING

PEOPLE BACK TO WORK.

>> Jon: YOU CAN'T MISS...

>> I'M NOT GOING TO SAY WINNING

THE FUTURE BUT I'M GOING TO SAY

EDUCATE, INNOVATE, BUILD, WE CUT

THAT, WE'VE GOT PROBLEMS.

>> Jon: IF YOU WERE TO RIP OFF

YOUR SHIRT NOW, THAT WOULD BE ON

THE, THIS SHIRT UNDERNEATH, I'M

SURE.

EDUCATE, INNOVATE, BUILD!

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