The World Around Us- Austan Goolsbee Zeitgeist Americas 2012 - Clip

Uploaded by zeitgeistminds on 15.10.2012

>>Austan Goolsbee: The Washington way of -- of confronting problems
is ignore it, when you are forced to deal with it, go back to what you did before, and
just try to recycle it, brush it off, and make that the starting point. So they almost
had a grand bargain last year. It came close before the insanity of the debt ceiling. They
were probably 85% of the way. But the extremes just prevented that from happening. I think
if Obama is elected and Republicans control the congress, there's likely to be a -- one
last celebrity death match over the fiscal cliff, the raising the debt ceiling again
and I'm actually not optimistic they'll be able to sort that out. The same forces that
blew the deal apart last year, I kind of feel like may blow that deal apart. But that then
makes me somewhat optimistic that in 2013 the American people are so pissed that their
taxes have just gone up $4,000, that they say, "Get the adults back in the room and
go sort it out." In which case, they're going to go dust off
the thing from last year and they will probably do a tax reform like that and it will probably
look a lot like Bowles-Simpson. If Romney wins, I think the first thing they're
going to do it -- I'm assuming the Republicans are in control of congress, they are likely
to extend all of the tax cuts, we won't go off the fiscal cliff. I think then as you
go into 2013, they are going to propose things like balanced budget amendment caps, big cuts
on Social Security, that won't go anywhere and I basically think our long-run fiscal
-- the chance of a grand bargain long-run is close to zero if you won't include any
tax revenue or if you want to add big tax cuts to the spending cuts and I kind of think
that's where they are. >>Eric Schmidt: So I think you all see -- I
should say right up front, I think we owe Austan a tremendous debt as a country. He
went into the government knowing a little bit about it. And he found himself in the
toughest situation a professional economist can ever. I would say that you and a few others
really rescued America. It is an honor and a privilege to have you here.
I hope you enjoy being in Chicago. >>Austan Goolsbee: Thank you.
[ Applause ]