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Former Obama Economic Advisor Austan Goolsbee breaks down whether gas prices will impact the 2012 presidential election.
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Joining us right now the former.
Top of -- economic advisor to the president -- states he was his economic.
-- dollar during the campaign very nice.
Individual decides they're very Smart.
-- -- very good to have you.
On thanks for having me back -- also what do you -- -- These poll numbers I know you don't fixate on the main economic who were you are but.
Americans seemed to.
Are divided as to whether an improvement in the economy means we've got a good economy and it's and -- get out of the president predictably guests.
If you're the president you were -- and -- today.
Would you -- -- worried.
Yeah I think I probably would tell us somewhat worry I mean do it with gas prices.
You always get in a weird dynamic range that you can't tell the difference when you look at the gas pump -- -- price the part of the price that's going up.
Because the economy's getting better and there's more demand.
That's not all bad the part of the prices going up because there's instability in the politics of the Middle East that part is all bad and so.
You know the history is that is not tremendously kind on that point so I think everybody ought to be a little worried about that.
On what is the economic school of thought on that -- and before a price at the -- Filters down to as were already seeing in some areas the grocery store the cost of delivering goods to itself.
Vanity and nothing gets -- her -- but it gets worrisome it spreads.
Well I think that fear that you'd have for a for something like this where it's not just prices going up because of the economy's getting better and driving up demand.
But there's also just some.
International component is driving up the price.
It's not that it would necessarily throw you into a double dip recession I think most people view that is fairly unlikely it's that it might cut.
You know half full point.
-- the growth rate but that makes a big difference if you're only -- in two and a half percent two point 8% -- cut half a point off a bit.
You back into the range where you would.
Severely -- job creation so I think we we -- we do need to keep an eye on that.
Do you think that this gas thing just surprised the president he wasn't prepared for.
No I don't think it necessarily I don't think -- surprise of president I mean it as Wilbur said before every summer that the price goes up.
When the economy starts improving the price goes up and -- stuff goes starts going wrong in the middle of a surprise goes on what about all the hallmarks of an accident -- -- real -- it's -- On a -- of late NASDAQ first summary 3000 -- years does that help.
I do think it helps some you know you have people their money's an air 401K they got various assets -- they see that going up they feel a little more comfort.
I think you've seen.
Pretty strong retail numbers that came in some of that program whether some of that -- because economy's coming back.
And housing you saw little spark of construction.
But you know it's decidedly mixed mail I got to tell you I here and I agree on that are -- thank you very much a -- dramatic.
