Former Obama Economic Adviser Warns Unemployment Could Rise

ABC News ^ | George Stephanopoulos

[Kartographer]

The economy has added more jobs than expected in each of the past three months, pushing down the unemployment rate to 8.3 percent and marking the best six-month streak of jobs numbers since 2008. But President Obama’s former economic adviser said today that this seemingly rosy economic picture probably won’t last. “I think the main thing that [President Obama] ought to worry anybody is that the growth rate is probably not as sustainable as at high a rate as it’s been, so the pace of expansion, which for six months has been pretty impressive, it may just slow down a bit,” Austan Goolsbee, now an ABC News contributor, said today Sunday on “This Week.”

[Kartographer]

OBAMAVILLE

Gett’n a head fake,

watchin' msn’s take;

All of their pundits oozing foul oil.

Clean’n my six gun on my front porch swing.

Felling my blood--
It’s beginnin' to boil.

Wasted away again in Obamaville,

Searchin' for a job so I can earn my salt.

Some people claim that Bush is to blame,

But I know it's Obama’s fault.

There’s no rhyme or reason,

They are all commitin’ treason

With nothing to show but a brand new tax or two.

But they are real beauties,

Despotic duties, how they got passed

I haven't a clue.

Wasted away again in Obamaville,

Searchin' for a job so I can earn my salt.

Some people claim that it’s Bush we should blame,

Now I think,-- hell with them it’s Obama’s fault.

I blew out my flip flop,

Stepped on a pop top;

Cut my heel, but I just cruise on back home.

Because no medical care will the doctors render

They say there’s little service I can tender

And there’s no need for me to hang on.

Wasted away again in Obamaville

Searchin' for a job so I can earn my salt.

Some people claim that Bush is to blame,

But I know, it's my own damn fault.

Yes, and some people claim that Bush is to blame,

And I know because of my vote it's my own damn fault damn fault.

[Wissa]

I think the main thing that [President Obama] ought to worry anybody is that the growth rate is probably not as sustainable as at high a rate as it’s been...

Seems to me that I saw that it isn't significantly more than the growth in the total population. Not enough to put a real dent in the number of unemployed. And now they're saying that pitiful growth rate is unsustainable?

[massmike]

Former Obama Economic Adviser Warns Unemployment Could Rise

So now that's there's been a warning,will it still be "unexpected"?

[familyop]

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[tomkat]

..so the pace of expansion, which for six months has been pretty impressive..

[mikrofon]

They’ll continue to discover just how bad a mess Bush left him with....

[Kartographer]

It was impressive, because it was so unexpected.

[magooey]

Gallup Poll says the unemployment rate is 9.1%. There have been a number of financial types who have looked into the 8.3% unemployment claim and think it may not be the most accurate estimation.

[MasterGunner01]

In Mr. Austan Goolsbee’s world, real world cause and effect is a “special case” and therefore “unexpected”. The perfect example of a man promoted beyond his ability.

[upchuck]

Austan is now a “contributor” to ABC News. I guess that’s okay. Until you notice that ABC will hire just about anybody.

[aimhigh]

Here's the logic behind the drop in unemployment claims. 100,000 people file for unemployment in 2009. Normally most of these people would claim for 2 to 6 months, return to work and file again a year or two later. But in 2009, they qualified for 2 years of benefits, and a almost third of them exhausted their benefits.

Under normal circumstance, these people who have returned to work, or seasonal work, and eventually file for unemployment again. But not now, because they don't have any new earnings to file against. Therefore, the number of new unemployment claims fall, but the number of people who are unemployed remains high.

[Son House]

Why Goolsbee was just an optimist;

June 5, 2011
http://abcnews.go.com/Politics/austan-goolsbee-stiff-headwinds-slow-job-creation/story?id=13765851#.T10xy3ms9IU

Goolsbee maintained that “the trend is really clear” on positive job growth in recent months, when the economy added one million jobs in the private sector.

“Don’t make too much of any one month’s job report because they are highly variable,” said Goolsbeenoting that the economy has improved dramatically from the picture two years ago. “After the last recession, in this comparable period, post-recession, we had lost 100,000 jobs. We’ve added more than two million jobs.”

[jonrick46]

With gas prices rising, unemployment will follow as Americans cut back to pay for transportation to and from work:

[Lmo56]

Unemployment Could Rise ...

Unexpectedly, no doubt ... /sarc

[tet68]

now they’re saying that pitiful growth rate is unsustainable?

Now that is frightening.

[kiryandil]

The economy has added more jobs than expected in each of the past three months...

You can pretend that "there have been more jobs created", but you can't pretend how much state personal income tax is paid.

Why are the income tax revenue numbers for the biggest states FALLING? :-)

[ding_dong_daddy_from_dumas]

Seems to me that I saw that it isn't significantly more than the growth in the total population.

So how can the unemployment rate go down?

[The Duke]

You can pretend that "there have been more jobs created", but you can't pretend how much state personal income tax is paid.

You've hit the nail on the head there - looking at the trend in tax revenues coming in compensates for the many cases in which highly professional people are underemployed, and shows the *REAL* picture.

[Cheerio]

[MNDude]

Lol! Great question.