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Obama's Egghead Economic Saboteurs
Townhall.com ^ | June 8, 2011 | Michelle Malkin

Posted on 06/08/2011 2:58:16 AM PDT by Kaslin

Official motto of the White House economic team: Those who can, do. Those who can't, fantasize in the classroom, fail in Washington and then return to the Ivy Tower to train the next generation of egghead economic saboteurs. Life is good for left-wing academics. Everyone else pays dearly.

Take Austan Goolsbee, please. President Obama's "fresh-faced" University of Chicago econ professor arrived in Washington in December 2008 to fill two slots: chief economist/staff director of the president's Economic Recovery Advisory Board and member of the Council of Economic Advisers. In September 2010, he replaced CEA head and fellow academic Christina Romer, who retreated to the University of California at Berkeley last August when unemployment hit 9.5 percent. (She infamously projected that the Obama stimulus would hold the jobless rate below 8 percent.)

Goolsbee's primary task: translating all of the administration's big-government theories for us dummies. As Goolsbee put it to his university's student newspaper: "We've certainly seen in previous crises that it's quite important to explain things to non-experts. The American people can confront any challenge if they're comfortable with the approach."

And what exactly was the nature of Goolsbee's vaunted expertise? Making money as a business rescue-and-recovery expert without ever having had to meet a payroll.

Goolsbee, the 15th wealthiest member of the Obama administration, has raked in assets valued at between $1,146,000 and $2,715,000. He also pulled in a University of Chicago salary of $465,000 and additional wages and honoraria worth $93,000, according to Washingtonian magazine. As I've noted before, the government research fellow and Obama campaign adviser was a champion of extending credit to the un-creditworthy. In a 2007 op-ed for The New York Times, he derided those who called subprime mortgages "irresponsible." He preferred to describe them as "innovations in the mortgage market" to expand the pool of homebuyers.

Goolsbee's most recent "innovation": the "White House White Board," a weekly video lecture teaching everyone else how to hitch what remains of America's free-market system to the wagon of the state and how much (or rather, how little) we should make doing it. He illustrated his grand interventionist strategy to pick and choose "Startup America" winners by drawing a trough of broken light bulbs (symbolizing entrepreneurial ideas) piling up in a "Valley of Death" because they lacked government support.

A comical choice of imagery given the Democrats' enviro-nutty ban on incandescent bulbs. But I digress.

When Goolsbee joined Team Obama, the unemployment rate was at around 6 percent. When he announced his resignation on Monday, the jobless rate stood at 9.1 percent. Romer and Jared Bernstein (former chief economist to Vice President Joe Biden) had predicted unemployment would drop every single month after August 2009 due to the Obama stimulus. Bernstein bailed on the administration in April 2011 for the sanctuary of a liberal think-tank. He'll also now ply his failed wares as a financial pundit.

These hapless command-and-control ideologues were preceded by Peter Orszag, who hung his "Mission Accomplished" banner over the White House budget office in June 2010 after fewer than two years on the job, and by former National Economic Council head and hedge fund manager Larry Summers, who was caught sleeping on the job -- literally -- more than once during his brief tenure. Summers packed his bags in September. He was followed by Princeton economics professor and former top Obama Treasury Department official Alan Krueger in October 2010.

White House aides have lamented that the economic team is "exhausted." Apparently, Obama is tired of hearing from them, too. The Hill newspaper reports that he has stopped receiving daily economic briefings that were once treated with the same emergency status as national security briefings. So, the central planners continue to be paid to fail -- while their boss looks the other way at the destruction, whistling into what he calls America's temporary "head winds."

Nice non-work if you can get it.


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: 2012; austangoolsbee; epicfail; goolsbee; obama; obamafail; obamanomics; thedestroyers

1 posted on 06/08/2011 2:58:17 AM PDT by Kaslin
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To: Kaslin

Good post.

You know, I’m not losing sleep anymore over the coming election. I was fine with everyone in the field bringing in their own group.

Yeah, the guy Rollins for Bachmann has ticked me off, and I’ve lost some respect for her...

BUT HERE’S the deal. If this country re elects this egg head president to a second term.....WE are in real trouble. That means that reasonable, intelligent, working people in this country are totally ignorant.

I’m not losing sleep. I think anyone can beat this guy, and will. It’s up to us for form a long standing coalition of conservative thinkers...economists...doers.

Good article. He did bring in sabatours with every new day.


2 posted on 06/08/2011 3:07:01 AM PDT by nikos1121
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To: nikos1121

Bump.


3 posted on 06/08/2011 3:13:54 AM PDT by GlockThe Vote (F U B O ! ! !)
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To: Kaslin

EXCELLENT writing.


4 posted on 06/08/2011 3:15:58 AM PDT by AmericanInTokyo (Sign of a good, decent FREEPER: Promoting your own GOP candidate & not disrupting threads of others')
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To: nikos1121
Yeah, the guy Rollins for Bachmann has ticked me off, and I’ve lost some respect for her...

Because Rollins became her campaign manager, or because the way he put Sarah Palin down? Notice that #1 Michelle Bachman has said that she liked Sarah Palin and 2 Rollin was also Mike Huckabee's campaign manager and what good did that do him

5 posted on 06/08/2011 3:38:56 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: nikos1121

SpongeBob Squarepants could beat Obama at this point. His policies may not be as destructive either, given that SpongeBob has no policies.
Even Mutt Freakin’ Romboy could beat the golfer. Even without my vote.

But I’m holding out hope that someone with better Conservative values and credentials can pull out in front.


6 posted on 06/08/2011 3:56:19 AM PDT by Big Giant Head (Two years no AV, no viruses, computer runs great!)
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To: Kaslin

Yeah, these guys are smart.
Yeah, they are ALSO destroying the economy, part by part in a systematic manner.

It is very hard (read: IMPOSSIBLE) for me to believe that DESTRUCTION is NOT THEIR INTENT.


7 posted on 06/08/2011 4:04:34 AM PDT by Flintlock (Photo IDs for voters: Let the dead rest in peace!)
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To: Kaslin
In the end, to fix the US economy, we need to do three things:

1. Aggressively audit every Federal, state and local government agency and used the audit results to start cutting down the size of government--agency size and regulations--by 30% initially and over 50% in around four years. For example, we need to merge Social Security, Medicare and other social services into a singular Department and potentially save over US$300 billion per year off the Federal budget.

2. Massively overhaul our income tax system to reduce compliance cost and to encourage American residents and businesses to keep their savings and capital investments in the USA. The flat income tax plan proposed by Steve Forbes in a book he wrote in 2005 should be at minimum what tax reform should be, in my humble opinion.

3. Aggressively oversee the financial markets by requiring real liquidity backing for hedge funds, derivatives, and other "new"-style investments (or ban them outright as financially too risky), increasing the minimum margin requirements (MMR) for futures trading to 20% (and require the buyer take 40% physical delivery of goods bought on the futures market), and re-imposing the Glass-Steagall Act to "firewall" bank assets from the ups and downs of the stock market. Too much of the wealth generated nowadays is through the financial markets at the expense of almost everything else in the US economy, in my humble opinion.

Somehow, the "egghead" economists who work for the Obama Administration don't understand just these three fixes would go a LONG way towards real economic recovery. By freeing up more financial resources normally taken by government, encouraging the keeping of savings and capital investments in the USA, and stopping the financial excesses of Wall Street, it does the best thing of all: bringing back the manufacturing base, which would quickly cut the unemployment rate, and with companies now back operating in the USA, it also means potentially much higher tax revenue to the government, which could mean finally we can tackle the issues of government debt and how to save Social Security and Medicare.

8 posted on 06/08/2011 4:09:26 AM PDT by RayChuang88 (FairTax: America's economic cure)
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To: Kaslin

How I see Miss Malkin.

And how a typical leftist Obama supporter sees Miss Malkin. (michellemalkinisanidiot.com)

9 posted on 06/08/2011 4:15:46 AM PDT by Daaave ("I'll hit you so hard they'll arrest you in El Paso for speeding.")
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To: Kaslin

I don’t like the guy’s tactics. He’s producing fodder for the democrats. Right out of the gate the bas*ard attacks Palin and does so personally and without basis.

There is a huge.... huge difference between being a politician.... ie senator, rep and a governor....They govern. They make decisions that have consequences. That’s why politicians seldom make good presidents.

I don’t really know what Bachmann brings to the table. I think she is smarter than Palin, at least when she opens her mouth....but Palin is a doer....

She would be good for this country...


10 posted on 06/08/2011 4:26:21 AM PDT by nikos1121
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To: nikos1121
I hate to disturb your sleep, but “reasonable, intelligent, working people in this country” are unfortunately in the minority. 51% of our population don't pay taxes! Who do you think they will vote for? A president who believes that it is perfectly fine for them sit on their a$$ why the government redistributes your hard earned dollars. Or a president who believes that you should keep what you earn and if you want to eat, then get to work?

Bottom line, the government has intentionally created an underclass totally dependent on them for their existence. So I do lose sleep, knowing what another four years of this disaster will bring to our country.

11 posted on 06/08/2011 4:40:02 AM PDT by Shane (When Injustice Becomes Law, RESISTANCE Becomes DUTY.----T.Jefferson)
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To: Kaslin

Keynesian economics exists to give a pseudo-intellectual basis to socialism, to give supporters of socialism a seemingly rational basis on which to believe that socialism can work.

Unfortunately, it can’t work. Replacing one Keynesian with another on the White House economics team might bring a different approach to trying to get Keynesian economics to work, but since the foundation is still quicksand, it won’t work.

It is no big deal that Obama has quit attending daily economics briefings—they haven’t been doing any good. (It almost makes me wonder if Obama is beginning the long intellectual journey towards accepting conservative thought, as he apparently has begun to realize that the economic aspect of socialism can’t work.)


12 posted on 06/08/2011 4:43:54 AM PDT by exDemMom (Now that I've finally accepted that I'm living a bad hair life, I'm more at peace with the world.)
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To: Flintlock
The anomaly of the current recession is the anomaly of Zer0's political philosophy and worldview.

Obama never intended to 'deliver.' Obama intended to redistribute wealth and punish successful people.

Winning rule in 2012: Direct political attack on Obama!

Hopefully Zer0's massive incompetence will move more non-blacks to vote against him in 2012. We'll see.

In A Ditch2
13 posted on 06/08/2011 4:45:10 AM PDT by BobP (The piss-stream media - Never to be watched again in my house)
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To: Kaslin

They’re doing O.K. considering their assignment is to destroy the middle class in this country.


14 posted on 06/08/2011 5:18:06 AM PDT by RoadTest (Organized religion is no substitute for the relationship the living God wants with you.)
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To: nikos1121

“Yeah, the guy Rollins for Bachmann has ticked me off, and I’ve lost some respect for her...”

I don’t believe there’s any friction between Bachmann and Palin. I see the Leftists and RINOs trying to promote friction there. Divide and conquer.


15 posted on 06/08/2011 5:20:42 AM PDT by RoadTest (Organized religion is no substitute for the relationship the living God wants with you.)
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To: Kaslin

I’m no economics prof at the U of Chicago or Cal Berkeley, but my advice would be cut taxes across the board (income and capital gains and corporate), de-regulate with respect to commercial and enviromental requirements, and stand back and watch the economy zoom.


16 posted on 06/08/2011 5:21:12 AM PDT by Rummyfan (Iraq: it's not about Iraq anymore, it's about the USA!)
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To: nikos1121
MB is Romney's stalking horse.

MB hearts Myth.


17 posted on 06/08/2011 5:28:49 AM PDT by newfreep (Palin/West 2012 - Bolton: Secy of State)
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To: RayChuang88

Agree 100% with your suggestions, but.....

Imam Ozero is NOT interested in fixing the US economy.

Imam Ozero WANTS the US economy to fail and force more Americans to depend on Fed government.

Imam Ozero wants to overthrow America’s free market, Contitution based system and replace with his marxist beliefs.


18 posted on 06/08/2011 5:34:20 AM PDT by newfreep (Palin/West 2012 - Bolton: Secy of State)
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To: Daaave
Wow, I almost pushed the abuse button because of the second picture, until I read "And how a typical leftist Obama supporter sees Miss Malkin."

The leftist lunatic 0bama supporters hate any conservative

19 posted on 06/08/2011 5:39:56 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Rummyfan

“...but my advice would bge cut taxes across the board (income and capital gains and corporate), de-regulate with respect to commercial and environmental requirements, and stand back and watch the economy zoom...”

Sounds like you want miracles from psychotic, adolescent
Progressives.

They’ll never vote for low taxes and mimimal regulation and will always vote for high taxes, regulation and the power to manipulate public monies into their personal coffers by whatever specious means necessary.

IMHO


20 posted on 06/08/2011 5:40:27 AM PDT by ripley
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To: Kaslin
University of Chicago salary of $465,000 and additional wages and honoraria worth $93,000

That's sick. The average debt burden taken on by students and parents to get a collage education in 2010 is $34,400.

A lot of recent graduates simply can not find decent jobs and are earning under $30K a year. Starting salaries for college graduates dropped 5% between 2002 and 2007 (inflation adjusted), and are likely to have fallen MUCH further since the economic distress of the last three years.

Today about 70% of college graduates graduate in debt. One in seven student loan holders have defaulted and are in collections. Many are in garnishment, and up to 25% of disposable income may be garnished -- although anecdotal reports are heard that claim higher garnishments. The law limits it to 25% but some collectors are aggressive, and the persons in default are shy and beaten.

There are nearly two million young folks who have borrowed for college. One in four is delinquent, but not yet in default.

An graduate in default, is in default because they have a poor paying job. Say $12 an hour -- that's typical. Take home is $10, take away 25% garnishment, and those debt trapped youths are taking home $300 a week. The indentured slave class that supports the nearly $600,000 yearly income of Obama's economic Professor Egghead.

That's disgusting and sick.

Sources:
  • http://www.coloradodaily.com/ci_18076249
  • http://online.wsj.com/article/SB124181970915002009.html

  • http://www.latimes.com/business/la-fi-student-loan-20110423,0,3353776.story

21 posted on 06/08/2011 6:04:26 AM PDT by bvw
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To: All

Also I’m sourcing my own recollections of data and cases I saw when I worked for a major debt collection company.


22 posted on 06/08/2011 6:06:35 AM PDT by bvw
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To: RayChuang88

You want to fix the US economy via an “aggressive audit”??? You sound like an incumbent congressman — you are FAR too timid. We can only save the nation via a huge rollback of government and complete abolition of about 2/3 of the agencies of fedzilla.


23 posted on 06/08/2011 6:08:54 AM PDT by ProtectOurFreedom
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To: Kaslin

Goolsbee should be the poster boy of just what roams around in our universities.

A highly paid “professor” with absolutely NO real world experience and transferring his “no real world” knowledge to his students.

Hell! This guy would not know the difference between a P&L report and a balance sheet. Worse yet, he could not run a profitable lemonade stand.

What exactly is his pay based upon? I don’t think there is an answer...only “that’s the way it’s always been.”


24 posted on 06/08/2011 7:06:29 AM PDT by DH (Once the tainted finger of government touches anything the rot begins)
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To: RayChuang88

You are correct in your statements. However you should add item #4 to the statements.

Item #4 should be to review and immediately identify and end “OVERLAP.” ALL governmental offices strive to do the work and obtain the responsibility of some other governmental agency’s chartered functions so that they can “empire build” and grow larger.

Government overlap is tremendous and you might have 150 agencies doing at least some of the duties that duplicate the original chartered agency’s founding duties.

On top of that, the CFR (Code of Federal Regulations) has grown to the point that it is almost impossible to actually pin down any SINGLE agency’s regulations that don’t conflict with some other agency that has encroached upon their founding charter.

What all of this amounts to is a massive expenditure of taxpayer money to pay for governmental functions that only need ONE agency to run...not hundreds of them.


25 posted on 06/08/2011 7:16:04 AM PDT by DH (Once the tainted finger of government touches anything the rot begins)
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To: Kaslin
These hapless command-and-control ideologues were preceded by Peter Orszag, who hung his "Mission Accomplished" banner over the White House budget office in June 2010 after fewer than two years on the job, and by former National Economic Council head and hedge fund manager Larry Summers, who was caught sleeping on the job -- literally -- more than once during his brief tenure. Summers packed his bags in September. He was followed by Princeton economics professor and former top Obama Treasury Department official Alan Krueger in October 2010.

White House aides have lamented that the economic team is "exhausted." Apparently, Obama is tired of hearing from them, too. The Hill newspaper reports that he has stopped receiving daily economic briefings that were once treated with the same emergency status as national security briefings. So, the central planners continue to be paid to fail -- while their boss looks the other way at the destruction, whistling into what he calls America's temporary "head winds."

Nice non-work if you can get it.

those that can....do......those who can't.... teach

26 posted on 06/08/2011 7:23:20 AM PDT by Donald Rumsfeld Fan ("Science is the belief in the ignorance of experts." Richard Feynman father of Quantum Physics)
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To: Kaslin
I was only going to post a flattering picture of Miss Malkin. I was going to say how much I liked her and the article. I wanted to thank you for posting another fine article by someone I enjoy reading.

But I saw that second picture and the name of the website. I thought if I have to get this angry, this early, everybody else should too.

27 posted on 06/08/2011 12:54:33 PM PDT by Daaave (Magically delicious!)
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To: DH
Actually, bureaucratic overlap is part of the things that my suggested aggressive audit roots out. Why do I suggest we have only ONE agency--my proposed Department of Social Services--handle Social Security, Medicare and other social services? Lot cheaper and a lot less hassle with one bureaucracy for social services, not dealing with multiple ones like we have now.
28 posted on 06/08/2011 4:45:45 PM PDT by RayChuang88 (FairTax: America's economic cure)
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