Skip to comments.Goolsbee: Cash for Clunkers, home-buyer tax credits were mistakes
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 weve 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 Obamas key economic advisers, admitted on Thursdays 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 didnt know if [economic recovery was] going to be short or long, the Obama administration tried measures to address both scenarios, Goolsbee explained on MSNBCs 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 its taken this long [to recover], I dont think you would do that short-run stuff, Goolsbee added.
Goolsbee, the former chairman of President Barack Obamas Council of Economic Advisers, said the administration misjudged how quickly the country could recover from the economic damage of the 2008 economic collapse.
Goolsbees admission completely destroys the notion that Obama made all the right decisions on the economy, but hes still missing one key point. The economic recovery hasnt been this bad because the recession was so deep; its been this bad because the policies he and Obama have pursued and are continuing to pursue will produce no other result.
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*ahem* the election in 2008 was a mistake.
2008 was the beginning of our end.
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.
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
Ghoulsbee is such a f’n economic idiot.
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.
I’d forgotten about cash for (economic) clunkers (the ‘rat party).
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.
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...
Obama’s stimulus plans to jobs plans are all about subversion and funneling cash to ACORN and all who hate America.
Only a damned fool would say they always made the right decisions.
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.
Only a bigger damned fool would have made such moronic decisions in the first place.
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.
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.
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.
2008 was Year One of the Zombie Apocalypse.
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.
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.
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.
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.
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.