Our Aust(eri)an Goolsbee Nightmare Is Finally Over

Or is it?  Despite the headline (which I think is punny and the important thing about my pieces is that they amuse me), if I really believed that I’d be guilty of what lambert calls a category error.  Expecting a freshwater economist from the Chicago school to promote anything but the discredited theories his academic position is based on is as naive as blaming anybody but his boss, Barack Hussein Obama, for hiring him in the first place and listening to them.

Discredited?  Oh my yes.  All you have to do is look at the economic history of the last 30 years to see how wrong their predictions and policies are.  They don’t practice science, it’s faith-based voodoo (my apologies to practioners of Santeria).

Unless, of course, you wish to consider them straight out thieves and con men in which case it makes perfect sense.

So of Obama’s apocalyptic economic team only Geithner the Wall Street toady remains, apparently for the duration.  Given the results achieved their tenure in government would likely be more limited than in academe anyway.

Scarecrow’s Nightmare: Austan Goolsbee Defends President Romney’s Economic Plan

By: Scarecrow, Firedog Lake

Sunday June 5, 2011 7:00 am

Goolsbee correctly told us that a smart economist wouldn’t get overly excited about one month’s jobs and growth numbers but would instead look at the overall trend. Of course what he wouldn’t want to concede is that GDP grew at a meager annual rate of 1.8 percent over the first three months of 2011 and so far was predicted to grow at only 2.8 percent for the next three. And the overall trend for job growth was still not enough to make a serious dent in unemployment unless you believe taking 5-10 years to get back to full employment is okay.

So Goolsbee was in denial from the opening moment because he didn’t have a decent story to tell even in his own framework. When Amanpour asked him what the Administration could or should be doing to improve conditions, he ticked off items you’d expect to hear from a typical GOP Presidential adviser: we’ve got to get the debt under control; we have a White House effort to identify and get rid of governmental regulations that are preventing the private sector from growing the economy; we should pass “free trade” agreements backed by the Chamber of Commerce; and we should leverage limited public dollars to release billions in private funding for investments.

Goolsbee’s bottom line: “It’s now up to the private sector.” That’s exactly what you’d expect from President Romney’s economic adviser.

…

I’m sure I imagined all this. The country wouldn’t possibly be dumb enough to elect an unprincipled moral chameleon like Mitt Romney President. And we’d never put up with someone as defensive and unconvincing as Goolsbee was today, though we’d wonder how the voters got taken.

No, that couldn’t be real, so when I really wake up, I’ll let you know what the adviser for the actual Democratic President said today about the sagging economy and the undefensible unemployment numbers.

Scarecrow Awakens: Austan Goolsbee To Go *Poof!* But It Won’t Help Economy

By: Scarecrow, Firedog Lake

Monday June 6, 2011 5:53 pm

In recent weeks, after a near stagnant first quarter, we’ve seen one forecaster after another lower their forecasts of economic growth from about 4 percent this year to under 3 and perhaps as low as 2.5 percent. This quarter is expected to grow at an annual 2.8 percent rate or less. Last week, we got confirmation of the slowdown via disappointing jobs numbers, with the unemployment rising to 9.1 percent. While that followed more hopeful March and April numbers, the trend level is clearly unlikely to make a significant dent in the overall unemployment rates before 2013. In fact, at that rate, it would take about ten years to get back to normal.

…

With reputable economists starting to use the words “panic” and “depression” to describe the potential risks to the economy, it was left on Sunday to Austan Goolsbee to explain why the White House was stuck on stupid, unwilling to change course or even concede that the recovery was in serious danger. We were asked to ignore that the nation’s unemployment is back above 9 percent, extended unemployment insurance is running out, and states are continuing to slash their budgets and payrolls. The latter are offsetting what little stimulus might have come from last December’s tax cut deal. Even someone with straw for brains can see we’re going the wrong way.

…

Faced with this insanity, even a Chicago economist should have the good sense to get out before the worst is blamed on him, when he’s likely just the apologist for Larry Summers. And following his, uh, strange performance on Sunday’s shows, he got a clear signal from those who might be inclined to be more charitable about motives and predicaments. When a former Democratic Administration econonomist like Brad DeLong linked favorably to Mark Thoma questioning how the Administration could continue to have it’s head in the sand and not see the need to pivot towards job creation, Goolsbee may just have seen it as a sign it’s time to announce his departure.

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Why become the front for a team that remains committed to failed policies that may very likely take the economy down with them? And when a Nobel laureate has to tell the White House via the New York Times that he’s withdrawing his nomination to the Federal Reserve because Washington, including the White House, has become dysfunctional, it’s pretty clear the communication between the President and the economic team is not what it should be.

More boring numbers-

Austan Goolsbee Is Almost Correct, Just Not in the Fashion He Thinks

By: dakine01, Firedog Lake

Monday June 6, 2011 11:03 am

Now a million new jobs over the last six months sounds good, right? Not so fast there Bucky. In an economy that needs to add roughly 125K jobs every month just to maintain status quo (that would be 750K jobs for a six month period), then a million jobs in six months doesn’t begin to put a dent in the 14 or so millions of unemployed, much less the un and underemployed numbers sitting somewhere between 25M and 30M.

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Now I actually went back seven months rather than six months and using information gleaned from the monthly BLS press release for jobs created, I still only come up with 784K jobs. And I haven’t accounted for the little nugget in this past Friday’s report that the March and April numbers were revised down 39K, placing the seven month total at 745K jobs created. 745K jobs created instead of the 875K jobs needed just to maintain the status quo, still leaving the 14M unemployed and the 25M to 30M un and underemployed.

Electoral victory my ass.  NO president has been re-elected with unemployment above 6% except Reagan and then it was trending down.

Barack Hussein Obama is no Ronald Wilson Reagan.