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Former White House Chief Economic Adviser Austan Goolsbee on efforts to extend the payroll tax cuts and the European debt crisis.
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-- other democratic says it's Republicans playing fast and loose with the facts on the clocks.
With -- -- former White House chief economic advisor the chairman of the council of economic advisors Austan Goolsbee also always good to have you what are -- negatives battle their parents say it.
Well look gotten quite surprised that your juxtapose that those two clocks -- I I thought -- the people.
All who are looking at the debt -- do not believe.
That raising taxes reduces the deficit.
If you think we can't afford to extend tax cuts to the middle class because of their impact on the deficit.
Why are you supporting tax -- for -- income people.
So you saying that there are just mixed messages here -- to support something that at least at this point -- -- -- plan isn't -- -- On is perfectly in keeping with the debt clock that race is out of control.
No I think the main.
The fact that has driven the short run deficits up.
Is quite distinct from the long run fiscal challenge facing the country the long run challenge.
Is clearly rooted in the aging of the population the rise of health -- -- would you risk that title its payroll tax cuts -- might compromise that very system.
But the payroll tax cut.
As you know is a very short run phenomenon we're given going to be temporary I don't know he's -- it is usually -- -- -- -- -- -- tickets that are Enron.
Yes -- -- it should be if they were talking about a permanent change.
I think that would not be a great idea -- also.
Make of the fact that the that the latest compromise if there is one and I I think guiding -- -- but I don't -- and the words and I think you'd think -- -- -- get apparel tax cut extension.
But it's going to be.
To work.
Their average workers it won't be seeing more employers in many employers were looking for a shaving in their -- -- so -- -- advise them to higher.
I'm the president himself expressed some regret -- that do you.
Yeah I was a little surprised that it seems like congress has has not been able to converge on that that was an idea of that of that for that came from the president seem like it would have.
Bipartisan support -- I would say yeah I am a little surprise that that that didn't come out of the negotiations.
You know also when you're in the White House.
Com.
In my -- you were one of the two adults in the room and actually knew what you're talking about -- not disparage deal but there's very few administrations have economic doesn't -- Republican.
Or Democrat -- -- young guys so.
I mean that when I say that.
Having said that I think I'll take it as a couple bids if you believe they Austin it was events and in that -- but but they said that.
How close he would did you guys probably eat the pace of the economic numbers I asked that because now the days.
Is a little bit better not -- I think is he setting your prior visit that we we would like stronger numbers but they're getting.
Better month did a month out and and that this trend is helping the president.
And it -- his economic team is looking at that.
As validating his policies it's not going to as a get us back to the unemployment rate when he took also -- it -- you don't know.
But but that is enough suit suit soon to validate this president and get this president elect.
On the economic side we would monitor the data prove quite closely you you know would have of -- -- policy side is and is not as much the political impact of that.
Reality of the daughter and everything and gets older having a little bit set out Lauren this is -- in wearing clover.
What how that nobody really review usually get the album the Zell usual we're telling me the unemployment rate is if you know is.
Not -- but specially in 2009.
It was.
You know the data were coming in every month was -- was get worse.
I think the thing to remember is that the government.
Doesn't really get that data and tell one to three months later.
Silva a lot a lot of the data that comes out of the private sector itself.
It is fresher is more indicative of how the market is doing.
Then you don't we get the GDP numbers they come out the one month after the end of the quarter so it's really 34 months after.
Win -- the growth was so where were always.
And in both parties no matter who's in there is trying to get.
As up to date of information on your credit and that's why they seem most concern the financial while corridor right here about an economist and the news advisors on both sides -- -- -- is Europe that did that goes from glories.
It's sort of like days of -- 02000 and all over again this time reading this president what do you think.
Yet you know losses sadly that might be true that the the there are multiple uncertainties I think there are pretty tough spot.
In Europe and -- and I've publicly he's has said that.
I think they've got.
A banking crisis they've got to deal with immediately and then they've got a longer run fiscal and growth crisis.
It's going to be much harder for them to to address so they may have a kind of a Groundhog Day version of this where.
Every six months were back in the same spot.
But apparently -- -- the current administration's ready with money and hand maybe -- -- Joseph -- it -- -- yesterday with the -- president.
To give money without congressional approval whether they really really -- it they'll do it.
I don't know anything about that I do know if you're asking that.
If stuff goes badly in Europe what impact -- gonna have on us.
Probably nothing good I mean -- of Europe's a big part of the world economy if they're not growing our exports are gonna be -- fast as they should be in people.
Just close your eyes they'll be looking at your 401K because we're gonna have a Lotta days up and down 304 points all right we'll watch it closely also great seeing you again be well.
Yeah average -- again -- -- -- just over -- -- for now.
