Tuesday, June 7, 2011

Poor University of Chicago (redux)

Last January I lamented in a posting about the University of Chicago having Obama's chair of the council of economic advisors on its faculty. While I am certain that Austan Goolsbee has a sterling record of economic academic achievement to be a full professor at Chicago, he is also a liar. He has uttered a constant stream of pronouncements about the economy that not even the most ardent cheerleader believes. When the current rate of job creation was announced along with anemic economic growth, he actually said that we were on target. He along with Treasury secretary Geithner were spreading doom and gloom about not raising the debt ceiling - causing the effects "catastrophic". As I have pointed out before, no one believes that. The US takes in enough "revenues" to service the debt, pay entitlements and some other bills. Politicians consider it a catastrophe if they cannot spend ever increasing amounts of taxpayers monies. Since the debt ceiling is the only real hard stop to this government's profligateness, then it may be our only realistic solution to government spending excesses. While his predecessor Christie Romer (see my posting "Poor Christie Romer") actually had a pained look on her face when she uttered lies for the administration, Goolsbee actually looked like he believed the nonsense that came from his lips. I simply amazes me that he could do all this in good conscience. Now he returns back to the university where he can also make up stuff when he lectures to students. Hopefully they are smart enough to discount whatever he is opining.


Anonymous said...

Dr. Black,
In your opinion is it wise to drastically cut government spending with the economy still in fragile recovery? Entitlement spending MUST be cut back quickly for the country to avoid bankruptcy but it is difficult to determine the best policy for when and how to do so.

H.A. Black said...

Dear Anon, Spending cannot be cut quickly. The entitlement programs lurch toward insolvency only because of benefits currently promised versus amounts paid into Social Security and Medicare. The benefits can be cut (or put into a block grant) for those under 55 leaving those over 55 with the benefits untouched. The "retirement" age for Social Security can be raised to 70 for those currently under the age of 45 and that fund will be solvent. What we have demonstrated is that the rapid run up in government spending is not the answer and needs to be reduced to the 18-20 percent range.