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Goolsbee: Cash for Clunkers, home-buyer tax credits were mistakes
Hot Air ^ | October 22,2011 | Ed Morrissey

Posted on 10/22/2011 11:08:02 AM PDT by Hojczyk

Barack Obama told Jake Tapper on Monday that “I believe all the choices we’ve made have been the right ones” on economic policy. One of the architects of Obamanomics disagreed just a few days later. Austan Goolsbee, one of Obama’s key economic advisers, admitted on Thursday’s Morning Joe that the gimmicky, short-term stimulus approach was a failure:

Former Obama administration economic adviser Austan Goolsbee said Thursday that if given a second chance he would not have backed the Cash for Clunkers program or the home buyer tax credit passed in 2009 to stave off further economic distress.

“Because we didn’t know if [economic recovery was] going to be short or long,” the Obama administration tried measures to address both scenarios, Goolsbee explained on MSNBC’s “Morning Joe.”

“If you look at Cash for Clunkers or the first home buyer tax credit, they were geared to trying to shift [recovery] from 2010 into 2009. Given it’s taken this long [to recover], I don’t think you would do that short-run stuff,” Goolsbee added.

Goolsbee, the former chairman of President Barack Obama’s Council of Economic Advisers, said the administration misjudged how quickly the country could recover from the economic damage of the 2008 economic collapse.

Goolsbee’s admission completely destroys the notion that Obama made all the right decisions on the economy, but he’s still missing one key point. The economic “recovery” hasn’t been this bad because the recession was so deep; it’s been this bad because the policies he and Obama have pursued and are continuing to pursue will produce no other result.

(Excerpt) Read more at hotair.com ...


TOPICS: Business/Economy; Government
KEYWORDS:

1 posted on 10/22/2011 11:08:03 AM PDT by Hojczyk
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To: Hojczyk

*ahem* the election in 2008 was a mistake.


2 posted on 10/22/2011 11:10:09 AM PDT by ClearCase_guy (I won't vote for Romney. I won't vote for Perry.)
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To: Hojczyk

2008 was the beginning of our end.


3 posted on 10/22/2011 11:13:09 AM PDT by NoGrayZone ("Get ready for an aberration of historic proportions" - Herman Cain)
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To: ClearCase_guy

Cash for clunkers was an indirect pay off for union support of the criminal enterprise party. If inventories were not reduced quickly, many union slugs would have been laid off. It was also a fascist way to inject the federal oligarchy into more of the nation’s life.


4 posted on 10/22/2011 11:13:35 AM PDT by MHGinTN (Some, believing they can't be deceived, it's nigh impossible to convince them when they're deceived.)
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To: Hojczyk

This clown is a financial advisor to The One and he just figured this out? At the time my high school age daughter asked my if this didn’t just move demand and not increase it


5 posted on 10/22/2011 11:14:40 AM PDT by muir_redwoods (Somewhere in Kenya, a village is missing an idiot)
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To: Hojczyk

Ghoulsbee is such a f’n economic idiot.


6 posted on 10/22/2011 11:17:41 AM PDT by Paladin2
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To: Hojczyk

I’m not sure if there is any accurate, non-biased research on the home tax credit. From the sources I have the most trust in, it appears the effect was almost nil.

If it had convinced people living with their parents to buy a home, it would have had a beneficial effect. From what I have read, most of the people that took advantage of it were already planning to buy a house, and would have done so with or without the credit.


7 posted on 10/22/2011 11:17:42 AM PDT by I cannot think of a name
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To: Hojczyk

I’d forgotten about cash for (economic) clunkers (the ‘rat party).


8 posted on 10/22/2011 11:19:23 AM PDT by Paladin2
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To: muir_redwoods

It also bled the after market of cheap used cars, raising prices and making it that much more difficult for low income people to secure transportation. Obama socking it to poor people to pander to the wealthy union thugs.


9 posted on 10/22/2011 11:20:12 AM PDT by hinckley buzzard
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To: Hojczyk

I liked the home buyers tax rebate! I got $8,000 of my tax money back for a house I was going to buy anyway. Even so they kept more than $25,000 in income tax that year...


10 posted on 10/22/2011 11:20:26 AM PDT by El Laton Caliente (NRA Life Member & www.Gunsnet.net Moderator)
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To: El Laton Caliente

Obama’s stimulus plans to jobs plans are all about subversion and funneling cash to ACORN and all who hate America.

http://www.wnd.com/?pageId=346617


11 posted on 10/22/2011 11:32:33 AM PDT by Lumper20
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To: Hojczyk

Only a damned fool would say they always made the right decisions.


12 posted on 10/22/2011 11:33:19 AM PDT by Venturer
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Are You A Whining FReeper?

Got A Gripe So You Won't Donate?


Click The Pic

Isn't That Like Setting Fire To Your Own Home?

When FR Is Gone, Where Will You Go Then?

13 posted on 10/22/2011 11:34:14 AM PDT by DJ MacWoW (America! The wolves are here! What will you do?)
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To: El Laton Caliente

If we hadn’t waited until after the tax credit was gone, my house would have been $25k more than we paid for it. I’m quite happy without it.


14 posted on 10/22/2011 11:42:57 AM PDT by perfect_rovian_storm (Perry's idea of border control: Use both hands to welcome the illegals right in)
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To: Venturer

Only a bigger damned fool would have made such moronic decisions in the first place.


15 posted on 10/22/2011 11:44:54 AM PDT by perfect_rovian_storm (Perry's idea of border control: Use both hands to welcome the illegals right in)
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To: MHGinTN

And it was a stupid waste of resources too. People’s usage of an automobile varies greatly. A cheap gas-hog clunker might be the ideal thing for the proverbial grandma who only goes to church on Sunday and grocery shopping on Wednesday. Or for the person who works nearby where he lives. She appreciates the protection of the land yacht, and does not use much gas in total. A Prius would be wasted on her, assuming she could afford it. Letting the clunker be traded in and resold was more energy wise than destroying it.


16 posted on 10/22/2011 11:58:00 AM PDT by HiTech RedNeck (There's gonna be a Redneck Revolution! (See my freep page) [rednecks come in many colors])
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To: perfect_rovian_storm

I don’t think I could have gotten the seller off the price much more. I knew they had turned down a couple of really low ball offers.

We got a engineered, milled log house 2400 sq ft on 43 acres with a 3 car garage across the street from the second largest lake in Texas for $85 a sq ft and $1,775 an acre... I don’t think we did bad.


17 posted on 10/22/2011 12:09:11 PM PDT by El Laton Caliente (NRA Life Member & www.Gunsnet.net Moderator)
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To: El Laton Caliente

I think it depends on where you are. Much of the country saw prices fall well below that $8k tax credit. We were looking at houses over that period of time and got a hard sell from the real estate agent, but I knew better and we definitely came out ahead. And here in Upstate SC, real estate saw much less of a fall off than many other areas.

The owners of our house didn’t want to go any lower either, but they also wanted to sell their house, so they had to eventually. Thankfully, there was a foreclosure in the neighborhood that we were able to use to make our case for a lower price.

God was on our side, because that foreclosure dropped their price by another $20k on the morning we were negotiating, which got them to immediately accept our offer.


18 posted on 10/22/2011 12:20:15 PM PDT by perfect_rovian_storm (Perry's idea of border control: Use both hands to welcome the illegals right in)
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To: Hojczyk

2008 was Year One of the Zombie Apocalypse.


19 posted on 10/22/2011 12:38:47 PM PDT by Blado (Herminate Bambi with Extreme Prejudice! Beat Bambi with a Cain! Yes, We Cain!)
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To: perfect_rovian_storm

I’m in a timerland area and generally average land goes for +/- $2500 per for raw land and replacement on the house would be about $150 per sq ft.

We are in the East Texas piney woods.


20 posted on 10/22/2011 12:40:49 PM PDT by El Laton Caliente (NRA Life Member & www.Gunsnet.net Moderator)
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To: El Laton Caliente

How bad are the taxes? The property taxes are really what soured me on Texas. I know some areas are better than others, but I just couldn’t justify paying that much ‘rent’ to the state.


21 posted on 10/22/2011 12:47:37 PM PDT by perfect_rovian_storm (Perry's idea of border control: Use both hands to welcome the illegals right in)
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To: Hojczyk

The Clunker deal was bad. Waste of money and ruined alot of used motors for nothing. Some people do not want to buy or can’t buy new cars. I put a used motor in my pick up truck before this terrible program began.


22 posted on 10/22/2011 1:06:52 PM PDT by therut
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To: perfect_rovian_storm

A little over $2400 this last year. They hit oil and gas in the county so that could go down because of the increase in value of the oil producing properties.

No income tax. Property taxes decrease after 65. Sales tax is about 8%. Overall no too bad.


23 posted on 10/22/2011 1:56:26 PM PDT by El Laton Caliente (NRA Life Member & www.Gunsnet.net Moderator)
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To: therut

The Clunker deal was another example of the stupidity and the fallacy of the Keynesian ‘broken windows’ theory that proposes destruction of resources will stimulate demand and result in overall economic growth. It’s as unnatural as Gay Marriage.


24 posted on 10/22/2011 1:57:46 PM PDT by iopscusa (El Vaquero. (SC Lowcountry Cowboy))
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To: Hojczyk

O ne
B ig
A ss
M istake
A merica


25 posted on 10/22/2011 6:27:26 PM PDT by PGalt
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