Austan Goolsbee

  • Aired:  10/13/10
  •  | Views: 30,015

Austan Goolsbee says that extending the Bush tax cuts for the wealthy won't pull the American economy out of recession. (7:18)

EVERYBODY.

MY GUEST TONIGHT IS CHAIRMAN OF

THE PRESIDENT'S COUNCIL OF

ECONOMIC ADVISERS, BUT HIS DREAM

JOB IS ON THE JUSTICE LEAGUE OF

ECONOMIC ADVISERS.

PLEASE WELCOME AUSTAN GOOLSBEE.

( CHEERS AND APPLAUSE )

HEY, NICE TO SEE YOU AGAIN,

MR. GOOLSBEE.

>> THANK YOU.

>> Stephen: WELCOME BACK.

>> IT'S A PLEASURE.

>> Stephen: LAST TIME YOU WERE

HERE YOU WERE NOT THE CHAIRMAN

OF THE PRESIDENT'S ECONOMIC

ADVISER.

NOW YOU ARE.

IT'S CALLED THE COLBERT BUMP.

NOW ARE YOU LIKE THE JOINT

CHIEFS BUT FOR NONE?

CAN YOU... DO YOU HAVE A BIG RED

BUTTON WHERE YOU CAN LAUNCH

SOMETHING?

>> NO, WE'RE NOT REALLY IN

CHARGE OF ANYTHING.

IT'S MORE LIKE THE PRESIDENT'S

DATA HUNTER AND GATHERERS AND

INTERNAL THINK-TANK.

>> Stephen: NOW YOU... THE

PRESIDENT IS GOING TO LET THE

CORE OF THE BUSH TAX CUTS SUNSET

AT THE END OF THIS YEAR.

AND THE TOP 1% OF AMERICANS ARE

GOING TO HAVE TO PAY A LOT MORE

MONEY.

RIGHT?

>> WELL, HE WANTS TO EXTEND THE

98% OF THE TAX CUTS...

>> Stephen: BUT THE TOP 1%,

THE GUYS LIKE ME, GUYS LIKE ME

ARE GOING TO HAVE TO PAY MORE

MONEY, CORRECT?

>> ON THE PART OF YOUR INCOME

ABOVE $250,000.

>> Stephen: BACK TO WHAT IT

WAS UNDER CLINTON.

>> BACK TO WHAT IT WAS UNDER

CLINTON.

>> Stephen: THE BAD OLD DAYS

UNDER CLINTON.

THE DEPRESSION.

YOU EXPLAINED THIS WITH A WHITE

BOARD DEMONSTRATION RECENTLY,

WHICH IS UP ON THE YOUTUBE.

THERE IS THE G.O.P. PLAN.

THIS IS HOW MUCH TAXES WOULD BE

CUT.

AND UP THERE YOU HAVE ALL THE

RICH PEOPLE ABOVE $1 MILLION,

WHO EVIDENTLY FROM THE

DEMONSTRATION LOOK LIKE THEY OWN

JUPITER.

( LAUGHTER )

EXPLAIN THIS TO ME AS QUICKLY AS

YOU CAN.

WHAT ARE YOU TRYING TO PUT FORTH

WITH THIS KIND OF PROPAGANDA?

>> WELL, THIS WAS JUST TRYING TO

DEMONSTRATE THAT THE PRESIDENT'S

PLAN WOULD GIVE A TAX CUT TO

EVERYBODY ON THE FIRST $250,000

OF INCOME.

BUT WHAT'S HAPPENING IS THIS

PLAN, WHICH WOULD BE NEEDED AND

GIVE RELIEF TO 98% OF PEOPLE

WOULD FACE NO TAX INCREASE AT

ALL, IS GETTING HELD UP SO THAT

A VERY SMALL NUMBER OF PEOPLE

CAN GET A VERY BIG TAX CUT.

>> Stephen: BUT ISN'T THIS

CLASS WARFARE.

>> NO.

>> Stephen: WELL CERTAINLY

IT'S PARTISAN.

LOOK, YOU MADE...

>> NO.

>> Stephen: YOU MADE THE RICH

PEOPLE RED.

BAD GUYS ARE RED, FIRE RED, BAD

RED, EMERGENCY RED, ABSOLUTELY.

WHY DIDN'T YOU MAKE US GREEN?

THAT'S THE NATURAL COLOR FOR US.

>> RED IS A PRIMARY COLOR.

GREEN IS NOT A PRIMARY COLOR.

>> Stephen: I DON'T SEE COLOR.

I'M NOT A RACIST.

>> HOW DO YOU KNOW THAT'S RED?

>> Stephen: I HAVE A STAFF

THAT TOLD ME THAT WAS RED.

DON'T TRY TO TRICK ME WITH YOUR

ECONOMIC TRICKS.

>> WHAT I WOULD POINT OUT ABOUT

THIS.

>> Stephen: POINT IT OUT.

>> TO GIVE THAT BIG RED CIRCLE

WILL COST $700 BILLION.

>> Stephen: AND WE RICH PEOPLE

WILL PUT THAT RIGHT BACK INTO

THE MARKET.

WE WILL PUT IT RIGHT BACK INTO

THE MARKET BY INVESTING IN

CHINESE PAPER MILLS AND INDIAN

TECH COMPANIES.

>> LOOK, WE DID THAT IN 2001.

IT DIDN'T WORK.

WHY DO THAT AGAIN.

>> Stephen: WE HAD EIGHT YEARS

OF PROSPERITY AFTER THAT?

DIDN'T WE?

A LOT OF PEOPLE GOT RICH IN THE

LAST TEN YEARS.

DON'T REWRITE HISTORY, MY

FRIEND.

>> IT WAS FIRST BOOM IN RECORDED

U.S. ECONOMIC HISTORY IN WHICH

THE MIDDLE CLASS'S INCOME FELL

BY $2,000 OVER WHAT WAS SUPPOSED

TO BE A BOOM AND IT WAS FOLLOWED

BY THE WORST RECESSION SINCE

1929.

IT DIDN'T WORK.

>> Stephen: I DID FINE.

I DID FINE.

AND I'M MIDDLE CLASS.

I'M MIDDLE CLASS.

WHAT IS WRONG WITH THAT?

WHAT IS WRONG WITH THAT?

MAYBE THOSE PEOPLE JUST DIDN'T

WORK HARD ENOUGH.

DON'T YOU BELIEVE IN THE FREE

MARKET?

>> YES.

>> Stephen: IS THIS FREE

MARKET?

>> YES.

>> Stephen: HOW?

>> BECAUSE YOU'RE FREE THE TAKE

WHATEVER JOB YOU WANT.

>> Stephen: NO OTHER WESTERN

INDUSTRIAL COUNTRY HAS A

PROGRESSIVE TAX RATE WHERE THE

RICH GET TAXED MORE THAN ANYONE

ELSE.

NAME ONE OTHER COUNTRY.

>> FRANCE, THE U.K.

>> Stephen: I SAID ONE.

I SAID ONE.

I THINK YOU LOST THAT.

>> WE'LL STICK WITH FRANCE.

>> Stephen: OKAY.

SO LET'S TALK GENERAL ECONOMICS

FOR A SECOND SINCE I TOTALLY

DEFEATED YOUR ANALYSIS.

ON BEHALF OF AMERICANS OUT

THERE, WHEN WILL THIS END?

I MEAN, IT'S BEEN TWO YEARS OF

ECONOMIC CRISIS.

JOKE'S OVER.

WE GET IT.

WHEN WILL THE HAMMER THAT IS ON

AMERICANS' HEADS COME OFF?

>> WELL, IT STARTED IN 2007,

THIS RECESSION.

THAT'S THE WORST RECESSION SINCE

1929 AND OBVIOUSLY GOING TO TAKE

TIME TO GET OUT OF IT.

WE'VE HAD PRIVATE SECTOR JOB

GROWTH FOR NINE STRAIGHT MONTHS.

THE PRESIDENT'S THE FIRST ONE

OUT THERE SAYING THAT'S A GOOD

START BUT IT'S GOT TO BE MORE.

WE'VE GOT TO GET THE GROWTH RATE

HIGHER.

WE ARE GROWING, BUT IT'S A VERY

DEEP HOLE AND IT JUST TAKES A

WHILE TO GET OUT.

YOU KNOW, YOU LOVE THE CHILEAN

MINERS.

THEY PULL THEM UP ONE AT A TIME.

WE'RE GOING TO...

>> Stephen: ARE YOU SAYING ALL

AT AMERICA IS AT THE BOTTOM OF A

MINE SHAFT RIGHT NOW?

>> IN JANUARY 2009, IT WAS AT

THE BOTTOM OF A VERY DEEP MINE

SHAFT.

>> Stephen: AND ARE WE STILL

DRILLING?

>> WE'RE COMING UP ONE AT A

TIME.

WE'RE PULLING IT UP.

>> Stephen: THAT'S A GOOD

BATTLE CRY.

>> WE WERE LOSING 800,000 JOBS

PER MONTH WHEN THE PRESIDENT

CAME INTO OFFICE.

EPICALLY HORRIBLE.

ONE MONTH, THE MONTH OF JANUARY

2009 WAS ITSELF AS BIG AS THE

SPIRE RECESSION OF 2001 BY SOME

MEASURE.

AND WHAT I WOULD SAY IS WARREN

BUFFETT I KNOW A LITTLE BIT.

I MET HIM IN THE CAMPAIGN.

HE MAKES THE OBSERVATION THAT IN

1900 THE DOW WAS AT 50.

IN THE INTERVENING PERIOD FROM

1900 TO TODAY, WE HAD WORLD WAR

ONE.

WE HAD A DEPRESSION, WE HAD

WORLD WAR II, WE HAD VIETNAM, WE

HAD A WHOLE BUNCH OF THINGS GO

WRONG.

AND YET BY 2010 THE DOW WAS AT

10000, 11,000, WE MAKE 10, 20

TIMES MORE THAN WE DID THEN.

WE'RE OBVIOUSLY GOING TO GROW

OUR WAY OUT OF THIS.

WHAT WE NEED TO DO IS STICK WITH

PLAN WHERE WE'RE MAKING

INVESTMENTS THAT WILL LEAD THE

ECONOMY TO GROW.

THE PRESIDENT IS DOING THAT AND

DOING POLICIES THAT WE KNOW

DON'T WORK, THAT DIDN'T WORK

WHEN WE DID THEM FIRST TIME AND

THAT WE'LL HAVE TO BORROW $700

BILLION TO ENACT.

>> Stephen: DOESN'T MAKE ANY

SENSE.

THAT WAS AN EXCELLENT SPEECH.

WHAT I HEARD FROM IT IS TO GET

OUT OF THE HOLE WE NEED TO HAVE

TWO WORLD WARS AND A VIETNAM.

IS THAT WHAT YOU'RE SAYING?

>> NO, NO, NO.

>> Stephen: ALL RIGHT.

I GUESS I DON'T UNDERSTAND

ECONOMICS.

CHAIRMAN OF THE COUNCIL OF

ECONOMIC

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