Austan Goolsbee Pt. 2

  • Aired:  08/03/11
  •  | Views: 24,297

Austan Goolsbee explains the economic stimulus plan and the subsequent spending cuts included in the debt ceiling deal. (5:47)

FROM AUSTAN GOOLSBEE, THE

OUTGOING CHAIRMAN ON THE

COMMITTEE OF ECONOMIC... I DON'T

KNOW WHAT YOU CALL IT.

SO HERE'S WHERE... SO WE'RE

TALKING ABOUT THE PRESIDENT

WANTS TO GO OUT AND FOCUS ON

MANUFACTURING AND THE GROWTH

AGENDA.

WE WANT TO GET BACK TO IT.

HERE'S WHERE IT FALLS APART FOR

SOMEONE LIKE ME.

SO THE PRESIDENT SAYS TO US FOR

QUITE A WHILE, THE ONLY WAY TO

GROW THE ECONOMY IS THE

STIMULUS, AND SO WE POUR A TON

OF STIMULUS IN, AND HE SAYS,

THIS WORKED.

WE GREW TWO MILLION... WE DID...

THIS STIMULUS IS GREAT.

IT'S GOTTEN US BACK ON TRACK.

SO NOW I AGREE, LET'S CUT

EVERYTHING, LIKE ISN'T THAT

THE...

>> I DON'T THINK THAT'S EXACTLY

WHAT HAPPENED.

IF THE STIMULUS WAS WHAT WORKED,

WHY WOULD THE NEXT STEP BE THE

OPPOSITE TO THE STIMULUS?

>> I WOULD SAY TWO THINGS ABOUT

THAT.

ONE, THE DESIGN, THE RECOVERY

ACT, WHY WE HAD TO RELY ON THE

GOVERNMENT IS THE PRIVATE SECTOR

IS IN FREEFALL.

YOU COULDN'T SAY, AH, WE'RE

GOING TO PASS A TAX CREDIT, TRY

TO GET THE PRIVATE SECTOR TO

LEAD THE RECOVERY IN THE SPRING

OF 2009 EVERYTHING IS GOING DOWN

THE TUBES.

WE'RE JUST TRYING TO PREVENT A

DEPRESSION.

>> OKAY.

>> NOW, IF YOU LOOK AT THIS DEBT

DEAL, WE HAVE TO ADDRESS

LONG-RUN FISCAL IMBALANCES IN

THE COUNTRY, AND THIS IS A

SUBSTANTIAL CUT TO THE DEFICIT.

>> Jon: I SAW THE CHART.

>> WELL, WE'LL DISAGREE.

>> Jon: ARE YOU QUESTIONING MY

PARALLELOGRAM?

>> I'LL GIVE YOU THAT.

LOOK, $2 TRILLION IS... I DON'T

THINK THERE'S EVER BEEN A BIGGER

CUT TO THE DEFICIT THAN THAT.

SOMETHING LIKE 1/1,000th OF

THE MONEY IS IN THE YEAR 2012,

AND THAT'S BY DESIGN.

IF YOU'RE GOING TO GO CUT $500

BILLION RIGHT NOW, YOU WOULD

LIKELY ADD ANOTHER HEAVY BLOW TO

THE ECONOMY, WHICH BECOULDN'T

AFFORD.

THOUGH I MIGHT ALSO ADD, DESPITE

SOME MEMBERS OF THE GOVERNMENT

SAYING, WELL, MAYBE A DEFAULT

WOULD BE OKAY, IT WOULD-BE --

WOULDN'T HAVE BEEN OKAY.

THE TREASURY SENDS OUT 80

MILLION CHECKS.

WE WOULD HAVE BEEN...

>> Jon: WOULD WE HAVE PAID OUR

CREDITORS AND THEN JUST GONE

INTO LIKE I GUESS YOU CALL IT

THE FETAL POSITION?

>> WELL, IT DEPENDS.

WHEN THEY SAID WE WOULDN'T

DEFAULT AS LONG AS WE PAID THE

CHINESE AND PAID THE

BONDHOLDERS, TO NOT PAY THE

MILITARY IN A WAR, TO NOT PAY

SOCIAL SECURITY FOR THE RETIREE

RETIREES... YOU'RE DEFAULTING ON

THE AMERICAN PEOPLE.

>> Jon: THEY WEREN'T EVEN

TALKING STRATEGY AND INSURGENCY.

THEY WERE WONDERING IN

AFGHANISTAN, ARE WE GETTING

PAID.

THEY WERE ASKING ME, AND I

DIDN'T BRING MY WALLET.

[LAUGHTER]

THE THING IS WHAT'S GOOD ABOUT

GETTING THIS DEBT SCREELG

DISCUSSION OUT OF THE WAY, WE'RE

ADDRESSING SOME OF THE LONG-TERM

FISCAL CHALLENGES.

BUT IT ALLOWS US TO GET BACK TO

LET'S STOP PAYING ATTENTION TO

WHAT KIND OF EYEBROW CUTTINGS DO

THE MEMBERS OF CONGRESS HAVE AND

WHAT HAVE YOU.

LET'S GET BACK TO THE BUSINESS

OF THE COUNTRY, WHICH ARE, AS WE

WERE SAYING BEFORE THE BREAK,

LOOK, LET'S PASS AN

INFRASTRUCTURE BANK WHERE IT

TAKES ONLY A LITTLE MONEY FROM

THE GOVERNMENT, IT WILL

EVERYAGES PRIVATE CAPITAL.

WE CAN BUILD OUT THE

INFRASTRUCTURE THAT WE NEED TO

COMPETE AGAINST OTHER NATIONS.

>> Jon: THAT SEEMS PERFECT

BECAUSE THAT'S THE ONE PLACE

WHERE YOU CAN'T ACTUALLY HIRE,

OUTSOURCE CHINESE WORKERS TO

COME AND BUILD OUR BRIDGES.

WE HAVE TO DO THAT.

>> AND IT'S IMPORTANT IF YOU

TALK TO... THIS IS A PLACE WHERE

BOTH LABOR AND THE CHAMBER OF

COMMERCE AGREE.

THEY'RE SAYING, WE NEED MORE

ECONOMIC INFRASTRUCTURE IN THE

COUNTRY.

WE HAVE A PATENT BILL THAT WOULD

ALLOW ENTREPRENEURS TO GET...

INSTEAD OF WAITING THREE YEARS,

WHICH IS HOW LONG IT TAKES ON

AVERAGE TO GET A PATENT, WE CAN

GET IT DOWN TO ONE YEAR.

YOU CAN GET AN ANSWER SO YOU

WOULDN'T BE BROKE BEFORE YOU GOT

IT.

>> Jon: THAT SPEAKS TO A

LARGER ISSUE.

DOES THE PRESIDENT BELIEVE

BUSINESS IS OVERREGULATED?

DOES HE THINK WE ARE

BUREAUCRATICALLY SO SNAFUED AND

ENTANGLED THAT THAT IS THE

PROBLEM WITH THE ECONOMY RIGHT

NOW?

>> AS A GENERAL MATTER, NO.

THOUGH THERE CERTAINLY ARE

INDIVIDUAL THINGS THAT COULD BE

DONE DIFFERENT AND STREAMLINED

WHERE, YOU KNOW, THEY HAVE TO

SUBMIT PAPER FORMS.

THEY CAN'T DO IT ON THE WEB, YOU

KNOW, THINGS OF THIS NATURE.

BUT THE PRESIDENT SAID FROM WAY

BACK WHEN, JUST BEING FOR RULES

OF THE ROAD DOESN'T MAKE YOU

ANTI-MARKET.

WHAT WE SAW IN THE FINANCIAL

SYSTEM, WHAT WE SAW IN OIL

DRILLING IN THE GULF AND A BUNCH

OF PLACES, RIPPING UP THE RULES

OF THE ROAD, WE'RE DEVASTATING

TWO BUSINESSES.

IT WASN'T JUST THAT IT WAS BAD

FOR SOCIETY, IT WAS BAD FOR

THOSE COMPANIES THAT NOBODY WAS

FOLLOWING THE RULES OF THE ROAD

BECAUSE WHEN YOU LOSE PUBLIC

TRUST, YOU DON'T HAVE IT.

>> Jon: I WANT TO THANK YOU

FOR ALL THE TIMES YOU'VE COME ON

THIS SHOW AND LET ME LIKE

BASKETBALL ON AT YOU BECAUSE YOU

ARE A PROFESSOR OF ECONOMICS AND

YOU KNOW A LOT OF THINGS.

AND I HAVE SAT HERE THROUGH

NUMEROUS APPEARANCES AND TALKED

OUT OF MY ASS, AND YOU HAVE

NEVER ONCE...

>> THAT'S NOT TRUE.

YOU'RE SELLING YOURSELF SHORT.

>>JON JON OH, NOW WE'RE BACK TO

SHORT.

IS THAT IT?

[LAUGHTER]

YOU ARE, I SWEAR TO GOD, YOU ARE

AS GIDDY AS A SCHOOLGIRL.

>> PEOPLE FROM CHICAGO, YOU GET

THAT IN YOUR BLOODSTREAM.

WE'RE LIKE THE SALMON OR

SOMETHINGMENT I'M JUMPING OUT OF

THE LAKE.

I'M HEADED HOME.

>> Jon: I'M NOT GOING TO TELL

YOU WHAT HAPPENS AFTER THEY GO

UPSTREAM.

I DON'T WANT TO SPOIL YOUR

PARTY.

>> THE ATLANTIC SALMON.

>> Jon: AUSTAN GOOLSBEE, WE

WISH YOU WELL.

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