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Former Obama adviser Austan Goolsbee sounds off on the vice presidential debate and its big topics: government spending and the economy
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The only way you can find five trillion dollars.
In loopholes.
Is cut the mortgage deduction for middle class triple cut the health care deduction middle class people.
Take away their ability to get a tax break to send their kids the college.
That's why there -- -- wrong about that is wrong about that.
There obviously you can cut -- rates by 20%.
And still preserve these important preferences for middle class taxpayers not mathematically -- it is mathematically possible.
It's been done before exercise were proposing it has never been done before it's been done a couple of times I -- never Jack Kennedy lower tax rates increased growth -- already out your Jack Kennedy Ronald Reagan.
That's an economy that is what most Americans care about Austan Goolsbee is a former chairman of president Obama's -- of economic advisors he joins us -- Austin.
Deb -- revenue Bagram.
Doesn't tell me really surprised that the unemployment rate went down from eight point 1% down to seven point 8% was that a surprise to him.
Yeah definitely.
It was bigger than what most people expected.
Every -- was if you look at that data it looks like it was kind of and out liar there's a lot of variability on that unemployment rate numbers.
And it was is bigger than I thought it would make.
Is it ever realistic and fair numbers and in one that you're confident does sound even though -- surprised.
I would say it's probably some component of statistical.
Noise so I wouldn't be surprised if it takes back up a little bit next month.
You know those.
That these survey of people which is what the unemployment rate comes from.
It has that job creation.
Margin of error of plus or minus 400000.
A month so.
Anybody as I say -- every month.
Don't take any one month's number to mean anything take a three month average if you want to know how the job market's doing.
-- -- let me ask about three months and average asking if a congressman Ryan was correct tonight this somebody said tonight he said jump growth in September.
Was slower than job growth in August -- said August was slower than job growth in July.
Does that mean we should expect job growth in October will be slower and that there's actually more grim news on the horizon or not.
I don't think so I mean that it -- you go look at those that's obviously heavily pars statement.
I think that was before they had all the revisions that -- it -- -- costly gets revised and they were revised up for the previous months.
So we'll have to see what happens to the revisions.
From from this month.
I think this big if congressman Ryan's overall point is the job market is not.
Booming yes that's true amended private sectors added.
Over two and a half years about five million jobs.
That's at a pace that's OK but not that great and that reflects the fact that the economy's growing at a modest pace.
Now that this thing that's hard here is that.
As modest as growth has been in the US that's the fastest growth in the entire advanced world.
So what you know -- world economy is in a tough spot where we're all trying to struggling trying to aid to get out of this.
-- I found.
And the Republicans always say and tell me if this is wrong they -- it'd be raising taxes on the on the welcome that you will they're gonna -- the job growth.
Is there -- risk that job growth will be stalled or slowed if attacked if taxes are raised on the rich is that is that true or not.
I.
Don't think that's true there's all of it could massive amount of economic research on the data on that question.
And most all of that research does not suggest that high income tax rates have an especially big impact on the growth rate.
In the US and and you just got to take a step back and say.
Okay the first three quarters or so of the Reagan administration the top marginal rate is 50%.
But we grow quite substantially.
-- Clinton raises the rates are at the top but we're still growing.
-- those kind of anecdotes comport with what the data shows which is the growth rate that top marginal tax rate are virtually on the net uncorrelated.
So I think -- it's a way overstatement and certainly if they're using that to say the tax cuts are gonna pay for themselves there's overwhelming evidence that that's not the case.
Hostin thank you always nice to C -- Really -- again Greta.
Up neck.
