August 30th, 2010
03:19 PM ET
9 years ago

Goolsbee tells Blitzer: ‘We’ve got to be mindful,’ prevent a double dip recession

(CNN) - In an interview just taped for The Situation Room with Wolf Blitzer, Austan Goolsbee, one of President Obama’s top political advisors and the chief economist for the White House Economic Recovery Advisory Board, said he doesn’t anticipate a double dip recession.

But the economist added that economists should be “mindful” of the possibility.

The full interview will air this afternoon on The Situation Room with Wolf Blitzer starting at 5 p.m. ET.

BLITZER: How worried are you about a double dip recession?

GOOLSBEE: I don't think we will have a double dip recession. But it's –clearly anybody should keep their eye on that. You saw at the Jackson Hole fed conference in Wyoming that the - the fed is - is
eying that. The central bankers from around the world are paying attention to it. I think if we passed a small business recovery bill, if we do what the president is asking and extend the middle class tax
cuts, and if we go with his export initiative - he's outlined various ideas to promote exports. I don't think we will have a double dip recession. But it's clearly something we've got to - we've got to be mindful, and we've got to prevent.

Filed under: Austan Goolsbee • Economy • issues • The Situation Room
soundoff (30 Responses)
  1. lian liar pants on fire

    The Obama White House is incapable to telling the truth and being open with America. They try to shde things - exaggerate – and sometimes just lie. This is the Oblamo trademark – sleazy South Side Chicago politics being played out n the national stage - it is shameful - FOur and the Door President teleprompter - take your blame game back to Chicago

    August 30, 2010 03:22 pm at 3:22 pm |
  2. Shawn-GA

    As Europe is moving away from Socialism and moving toward Capitalism... the USA under the rule of this President and the Democrat run Congress (4 years and running) we are moving FROM Capitalism to Socialism... Why would we not learn from the lessons of the failures in Europe?

    This President in 18 months has thrown more money away in the name of stimulus then the entire Iraq war cost in 5+ years. Unemployment is still high (higher than Obama promised us it would go)

    Through all this he still blames Bush and so many "gimme something for free" people follow him.

    WAKE UP!!! Read and educate yourselves, slick speeches do NOT make a leader.

    August 30, 2010 03:23 pm at 3:23 pm |
  3. Dean

    He didn't think we would have unemployment above 8% either. With all those not reporting or getting unemployment any more the real rate is about 15%. Obama needs to bring jobs back to this country. Manufacturing jobs. And quickly.

    August 30, 2010 03:24 pm at 3:24 pm |
  4. Hugo

    Take your pick fellas, double dip recession (Depression) or hyper inflation with 10% plus unemployment, which is it going to be? Too much government liability with too little private sector revenues to fund it, get ready, it is going to be a long cold hungry winter!


    August 30, 2010 03:35 pm at 3:35 pm |
  5. Willy Brown

    Quit electing democrats then.

    August 30, 2010 03:51 pm at 3:51 pm |
  6. Randolph Carter, I'm no expert, but...

    gt August 30th, 2010 3:09 pm ET
    "oh really ,,, lets see you control all 3 branches ....give me a break and man up.... i guess you havent heard of the buck stops here...looser.."

    Really? I was unaware that democrats control the judicial branch in addition to the legislative and executive branches of government. Who knew? I guess that makes me a "looser." Have a nice day!

    August 30, 2010 03:51 pm at 3:51 pm |
  7. Sniffit

    "The biggest test he has is Israel and Palestine. Watch him insure they will not come together. This is not his agenda. The Muslims do not want harmony or peace there. They want Israel destroyed right along with Ameica. TAKE HEED AMERICA AND WATCH THIS ONE PLAYED OUT."

    Wow...seriously? talk about laying it on thick. Sooo, since Israel's founding in 1948 not a single person whatsoever has been able to figure out how to get Israel and the Palestinians to come together and agree on peace and your argument is that if Obama fails to do so as well, then it proves he's a Muslim trying to destroy the US and Israel? Grade-A retarded, pal...grade-A.

    August 30, 2010 03:56 pm at 3:56 pm |
  8. Dutch/Bad Newz, VA

    From the looks of it, republicans in Congress are trying to make a double dip recession. That's why they don't support anything. They want to see this President fail and they won't lift a finger to help small businesses or the American worker. Shame on them!

    August 30, 2010 03:57 pm at 3:57 pm |
  9. jim

    Shows what a complete disaster Obama economic policy has been .To be worried about a double dip at this point after 19 months in office is shameful.I guess this means the summer recovery that Axlerod called for will have to be delayed. !!!

    August 30, 2010 04:00 pm at 4:00 pm |
  10. rdepontb

    These too-young and inexperienced Democrats do not know how to play hardball with the Republicans, plain and simple. Their elder spokesperson is Larry Summers, a head-in-the-clouds academician if ever we've seen one in public office.

    Maybe not everyone liked Greenspan, but he called it as he saw it, and he told us what his decisions were based on. These goofy guys with the goofier names (sorry, I'm not one to talk-but I don't go representing the country) come across as "the smart nerdy kids are finally in charge, so nyah nyah nyah!" twits, of no use to the nation at this time, at least not in their present capacities.

    Adult supervision needed, if only to swat the Republicans brusquely on the side of the neck and say "The nation's at stake here! Let's do it right!!" If it takes Obama to say he won't run for a second term, so be it. Many would love to see Hillary take on the wimps this time around.

    August 30, 2010 04:06 pm at 4:06 pm |
  11. Sniffit

    " I don't think we will have a double dip recession. "

    Not if the GOP has anything to say about it. They are DROOLING over that possibility. Whatever you do, keep your yap shut about what might cause it or they will for sure start trying to do so. as for talking about what will fix it? Well, just watch how quickly the GOP/conservatives fling turds at any and every idea suggested...while simultaneously refusing to produce any of their own other than "continue the Bush tax cuts that are the single largest controbuting factor to the national debt and deficit."

    See, here's the thing folks...and it something the GOP/conservatives will fight tooth and nail against until their dying breaths: trickle-down is wrong because it's SUPPOSED to trickle UP. Yep, you read that right. According to every cogitation of "free market capitalism" you will ever read, your job is to build the better mouse trap and convince people to buy your product. In other words, convince people to send their money up the line to make you rich. That takes too long and is too much effort, so the GOP/conservatives and big business invented a lovely little lie that allowed them to posit that "if you just give us your money FIRST, we'll make you a better mouse trap...we promise." Who do you know who gets paid before the freekin job gets know, other than the elready extremely wealthy and giant corporations? CREATE JOBS AND WE'LL GIVE YOU TAX CUTS, BUT NOT BEFORE.

    August 30, 2010 04:06 pm at 4:06 pm |
  12. Tom-Vermillion Ohio

    As long as the Republicans maintain the 'Limbaughian attitude' of wanting President Obama to fail, no economic recovery concept presented by the President Obama will get through Congress. The same can be said of the 'Beckian attitude' that having a 'progressive agenda' is somehow bad for the country.

    What Austan Goolsbee is speaking of in the article above has progressive undertones to it in that these actions must be done in the very near future or we face a 'double dip' recession. I agree with him. Might Austan Goolsbee agree with me that a depression is at hand?

    Certain individuals, corporations and non-profits have made or 'earned' an obscene amount of money in 2009 during the decline. The question is, who are they specifically, and why would they want to see the economic situation improve when they 'profit' so handsomely during economic downturns. This is what has to change prior to stimulus endevours. Otherwise, the President is just beating a 'dead horse'. It's those 'live horses' who need to be exposed and have their butts kicked and whipped.

    August 30, 2010 04:12 pm at 4:12 pm |
  13. Randolph Carter, I'm no expert, but...

    rdepontb August 30th, 2010 4:06 pm ET
    "....Maybe not everyone liked Greenspan, but he called it as he saw it, and he told us what his decisions were based on....."

    And when the whole trickledown deregulatory scam came crashing down, Greenspan was man enough to admit he had been wrong. Have a nice day!

    P.S. Ayn Rand was a second-rate romance novelist and a raving sociopath.

    August 30, 2010 04:13 pm at 4:13 pm |
  14. Cindy Merrill

    Nice try, but most of us are not buying it, sorry. Democrats had complete control of all three branches of Government, and they blew it- instead of "Jobs, Jobs, Jobs", the Obama Administration and the DNC decided to create a Stimulus bill that rewarded their Corporate donors, and the rest of us got $13 a week- ( and the banks responded by raising their fees, so we didn't even get half of that!)

    August 30, 2010 04:14 pm at 4:14 pm |
  15. Claudia, Houston, Tx

    Palin has created jobs: one for herself, one for her husband Todd campaigning for Miller, one for her daughter Bristol and one for Bristol's baby daddy Levi. That's 4 jobs, all in the family.

    August 30, 2010 04:17 pm at 4:17 pm |
  16. LacrosseMom(the real one)

    IF some of the Conservatives posting here, would open their minds long enough to read something other than GOP propaganda, they would realize that without the Stimulus our Nation would have been a whole lot worse off!

    History Lesson:

    During 1981-1983, when Reagan was president, our Nation was also at ......10%....... unemployment. In fact, Reagan's lowest approval numbers were ....40%...... same as President Obama's are now. Reagan spent 8 years in Office blaming his predecessor, Carter for the Financial Woes of our Nation!

    And Reagan was reelected even though the Economy stunk!

    "This President in 18 months has thrown more money away in the name of stimulus........" What DO YOU CALL THE TRILLIONS BORROWED FROM CHINA....... BY BUSH........ TO FUND THE WARS?


    August 30, 2010 04:22 pm at 4:22 pm |
  17. Silence DoGood

    Bush put up the Mission Accomplished military banner when nothing in Iraq was really accomplished.

    Obama put up the Mission Accomplished economic banner when nothing was really accomplished.

    Tell me again how Obama's lies are better than Bush's lies?

    August 30, 2010 04:29 pm at 4:29 pm |
  18. kelly

    I don't think 9.5% unemployment is anything to brag about.Obama promised if we did thing his way it wouldn't get above 8%.Vote these blame and borrow dems out in NOV.!!

    August 30, 2010 04:29 pm at 4:29 pm |
  19. Orlando Patriot

    NEWSFLASH!! WE ARE STILL IN A RECESSION!! I get soooo frustrated when I read "double dip". In order to have a "double dip" an economy MUST recover from the FIRST recession and be labeled by the NBER as out of the recession.

    The NBER has NOT officially labeled us out of the recession. Note: general definition "rule of thumb" of "two consecutive positive GDP" means out of a recession is NOT the official definition but is a "rule of thumb" to give to people who do not understand what the official definition is.

    End result is we are STILL in the recession and have NOT recovered. WHY? Because of the ATROCIOUS policies and laws passed by the Obama administration!! Reminder: You CANNOT have economic growth without private sector growth and increased productivity. Punish business (like Obama has done) and you do not have growth – PERIOD!! Thank Obama for KILLING this economy!!!

    August 30, 2010 04:31 pm at 4:31 pm |
  20. Willa

    The GOP Tea Party are putting your dreams on hold, until November! What a joke. Don't hand the keys back to the GOP Tea Party! Iraq War not paid for, Tax cuts for the rich not paid for, Prescription drug plan not paid for, the economy meltdown not paid for, but Wall St kept their billions in bonus. And now the want a tax cut for all this mess! Don't vote for Republicans Tea Party just say no!

    August 30, 2010 04:31 pm at 4:31 pm |
  21. Soap

    This is where we are headed thanks to that moron obama unless all this is his intent. On another matter, when obama visited Walter Reed the last time he played basketball and only visited the troops for a few minutes as an after thought. President Bush visited the troops there without the media because he did not want to make a circus of it like obama. Now obama is taking his human rights agenda to the UN and complaining about the Arizona law. Good lord, he is supposed to be the President of this country and he is campaigning to the UN against the US. What kind of simpleton is he?

    August 30, 2010 04:33 pm at 4:33 pm |
  22. Marcus

    Just read a comment from someone called Shawn about 'Europe moving away from Socialism and going back to Capitalism while the USA are in the opposite direction' (or the likes) as the reason why the Govt. shouldn't spend one cent more on 'assistencialist' bills and programs in order to stablize the budget.
    Too radical to work and based on faulty assumptions.
    Europe is not moving away from what he/she perceives as 'Socialism', they realized that their system has a lot of problems (that became far more eveident with the current crisis) and are working on fixing them. They are improving their system, not changing it. Carefully and very well planned, all their actions are to try to fix the whole idea, not overturn it.
    While in US soil proofs and more proofs that 'tax cuts' don't work, that deregulate the economy only helps souless greedy sharks and that (at the very least) SOMETHING DIFFERENT than what was tried and done between 2001/2008 must be done appears every day.
    Of course, a kneejerk reaction is not the solution, but neither are 'more of the same' if it was the 'same' that brought the US to the point it is in now.

    August 30, 2010 04:34 pm at 4:34 pm |
  23. water bearer

    The Corporate community, fueled by the GOP, WANT this recession to continue. They are putting hiring on hold until after the mid-terms because they WANT the econonmic situation in this country to remain bad, hoping it will garner them enough votes to gain control of at least the House.


    August 30, 2010 04:37 pm at 4:37 pm |
  24. Randolph Carter, I'm no expert, but...

    Cindy Merrill August 30th, 2010 4:14 pm ET
    "Nice try, but most of us are not buying it, sorry. Democrats had complete control of all three branches of Government, and they blew it...."

    Really? All three branches? Wow! Have a nice day!

    P.S. You do realize that 41 votes is now considered a majority in the senate, don't you?

    August 30, 2010 04:37 pm at 4:37 pm |
  25. T'SAH from Virginia

    The RepubliCAN'Ts have BIG CORPs in their back pocket – BIG CORPs are NOT hiring – BIG CORPs/GOP hope the GOP will get control of Senate/House – If GOP get control of Senate/House, BIG CORPs will begin hiring – Unemployment rate will go down – GOP will then take credit for the downfall of Unemployment!!! And they will accomplish this by continuing to say NO!!!! In the meantime, small businesses are suffering and the Middle Class are getting CRUNCHED and the poor is getting poorer!!!

    And all of the haters who feel that President Obama was supposed to resolve all of the ILLs of this country in 2 years -when it took over 8 years to belly-down, then you need your head examined!!!

    Democrats must unite and vote to prevent the GOP from taking over!!!

    August 30, 2010 04:40 pm at 4:40 pm |
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