The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Watch New White House Economic Chair Try to Spin Chris Wallace on “Recovery Summer”

Posted by iusbvision on September 13, 2010

At least Austan Goolsbee admits that unemployment will stay high, but that is where the directional truth from him ends.

GOOLSBEE: But I don’t think the unemployment rate will be coming down significantly anytime in the near future.

Political communication needs to be what I call “directionally accurate” that means that it cannot attempt to create a false narrative or picture even if some of the stats presented are accurate. Spinning a half truth amounts to a lie in the book of most people.

1 –  Goolsbee tries to tell us about the number of jobs the “stimulus” saved or created, but Wallace points out that much of that number is based on a an economic model (a simulation or prediction) and not hard data.

Most of the jobs “preserved” by the stimulus package were temporary jobs that were extended for a time or government jobs and often they amounted to hundreds of thousands of dollars per job, but this writer as well as many others have shown that. Many of the jobs they “created” never existed and in some cases so outrageous as to claim that if a man cleaned up a mess that was “creating a job”. So much was fraudulent that the Washington Examiner had to create the “phony stimulus map” and a database of media reports reporting the errors.  Note – Notice at  about 6:10 in the interview Goolsbee says that his numbers include the reports of those who received stimulus money, most of whom are political allies as you will see in the links below. These are the bogus numbers that so much of even the elite media has reported on in the phony stimulus map, and those are just the phony ones that people were able to catch.

LINKS: shows money flowing to nonexistent districts

Corruption: Stimulus Funds Spent in Democrat Districts…

Porkulus job fables in Michigan


2 – Goolsbee tries to tell us that when Joe Biden said that we were going to have “Recovery Summer” it did not mean that the economy would recover, he meant that more projects would be done with the “Recovery Act”. This is laughable and Wallace did not let him get away with it. While they did highlight some of the projects funded by it, the narrative that the economy would rebound over the summer was crystal clear. Ask the converse, did they tell us that we would not see improvement over the summer? The second quarter economic growth numbers were just revised down to 1.6% and much of that was debt spending by the government. By contrast the first year after the Reagan Economic Recovery Plan was implemented the economy grew by 8%.

3 – Goolsbee then says that most economists say that the stimulus worked. Oh really? That is not what the  National Association for Business Economics. who creates what is called the NABE Index had to say in mid April:  Profiles in the Obvious: New Survey of Economists Says Stimulus Bill Didn’t Work. Now keep that mid April date in mind as we continue.

4 – Goolsbee (at about 6:22 in the video) said that the economy was way ahead of where economists thought we would be at point after point. This is demonstrably false, so false that it is safe to just call it out as a not just a lie, but a whopper of a lie. Since most groups of economists are Keynesians most economic groups that the elite media went to thought all along said that the bad economic news was unexpected or a surprise. They said this month after month for over a year until mid April when it was so obvious that the stimulus had failed and they started reversing themselves. 

This web site, HotAir, and so many others cataloged what the elite media and the economists they interviewed said month after month and the following is just a small sample:

Elite Media: Job Losses “Unexpectedly” High Again for how many months now?

Housing Down Again 11%, Consumer Confidence Down, Underemployment Up, Elite Media “Surprised” Yet Again that Unemployment Claims Rise..

Elite Press Still Spinning Bad Economy for Obama – “Unexpected Growth in Job Loss” – Oh Really?

Administration playing games with unemployment rate; elite media covering for them. BIG UPDATE!

439,000 new jobless claims, media spins it as positive news (again)

Take a look at this Google link of how our friend at HotAir cataloged the “expected” bad economic numbers .

5 – At 7:20 the tax cuts conversation begins and so does the spin from Goolsbee.  Remember that Obama repeatedly blamed the tax cuts for causing the mortgage collapse (you having more of your own money somehow cause Fannie Mae to buy up those high risk loans and you having your money somehow caused them not to pay their own mortgage – good luck following the logic on that talking point) and are now talking about extending them.

This is where again Gollsbee gets pretty dishonest.

Wallace points out that the taxes that would be raised on the “so-called wealthy” are actually small businesses and sub s corporations such as the mom and pop pizza bizz that has two or three shops who turn around and put most of that money back into the business. Very few people actually make wages as regular people understand them for over $250,000 a year.

Goolsbee accuses Wallace of being ” highly misleading” saying that 97% of small businesses are unaffected by raising the top marginal rate.  Umm 95% of small businesses are 1 man operations, businesses that exist on paper for tax benefits (ie John Edwards) and/or businesses that operate at a loss. The small businesses that have between a few dozen to a few hundred  employees; meaning the ones that do over 75% of the hiring in this country are the ones that will get hit hard by these tax increases.

Goolsbee sits there and talks about millionaires and billionaires as if it is the “rich” he is out to tax. The truth is that Democrats have never gone after that crowd and won’t (these people fund the Democratic Party and its 527 groups like and Tides Foundation money that funds ACORN and the APOLLO Alliance etc). The John Kerry’s and George Soros’ of the world benefit from a tax code that declares most of their income to be “unearned income”, meaning that their income is not taxed at nearly the same level as people who work for a paycheck or run small businesses. For example, in 2003 John Kerry made $5, 072,000 and had a federal tax burden of about 12.34% because much of his income is considered non-taxable.

Goolsbee’s policies are designed to screw the middle class buy going after the people who supply most of the paychecks.

Wallace was wrong about the 13% tax increase as he left out some of the taxes that are going up.

NY Post: Small Businesses Facing 25% Tax Hike:

Jobbing small business

The 26 million small businesses in the US — like Eneslow Shoes, headed by CEO Robert Schwartz— are getting buried under an avalanche of new taxes, which include:

* An increase of 4.6% in federal taxes from 35% to 39.6% (expiration of Bush tax cuts)

* An increase in capital gains taxes from 15% to 20% (expiration of Bush tax cuts)

* A new tax of 3.85% on investment income, dividends, rents, royalties mandated in the new health care bill

* An increase in the Medicare payroll tax to 2.35% as mandated in the new health care bill

America’s jobs growth engine is being choked to death.

A record 25 percent increase in the taxes against US small businesses — from costs associated with new health care law, to an increased Medicare tax, increased capital gains taxes and higher state and city taxes — is repealing any ability of these entrepreneurs to add jobs to their payroll.

And the numbers for New York’s small- to medium-sized business are just as harrowing.

By one estimate, the effective tax rate on the 26 million small businesses across the country — which in the past have accounted for more than half of the job growth in the US — has jumped to 50 percent from 40 percent, sucking valuable cash from the businesses.

These dollars could have been used to add to payrolls or make capital improvements — but instead will be siphoned off by Uncle Sam, state and municipal governments.

“The impact of these higher taxes and reduced hiring will be a recovery cycle that will be much longer, be slower to take hold and be without much job growth,” said Al Angrisani, founder and CEO of Angrisani Turnarounds and former US Assistant Secretary of Labor under President Reagan.



One Response to “Watch New White House Economic Chair Try to Spin Chris Wallace on “Recovery Summer””

  1. Paul Geer said

    I think we all know what was meant by “Recovery Summer”, that we are all recovering from George W Bush policies.(eye roll)

    Hey! How about that BIG lithium battery factory in Michigan! That should do the trick! (more eye rolling)

    Truth is taxes will go up. Any cuts in taxes for certain groups is just bone throwing and will add up to nothing. All taxes NEED to be cut or eliminated.

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