President Takes Swipes At GOP Over Economic Proposals

President Barack Obama spent a good portion of his eighth full press conference in office touting his administration’s efforts to turn the nation’s weak economy around.

Responding to questions from reporters, the president accused his White House predecessor, former President George W. Bush, of creating a years-long recession America has yet to climb out of. Obama said his decision in the past year to cut taxes for middle class Americans and spend billions on domestic programs saved the U.S. from succumbing to a depression.

The president did not mention Bush by name, but argued that the two-term Republican’s poor stewardship of the economy ignited the loss of hundreds of thousands of jobs in the months before Obama took office.

“We know where that led,” the president said of Bush’s eight years in office.

Mr. Obama touted his recent proposals to create jobs by spending even more on infrastructure. Though he would not refer to his new plan as a “stimulus” measure, he argued that last year’s Recovery Act has worked, albeit not as well as the administration had hoped. In perhaps a mini-battle over semantics, Obama told CBS’s Chip Reid his new proposal would be aimed at stimulating job growth.

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In his opening remarks before taking questions, the president spoke with a firm voice, leveling blows at Republicans for disagreeing with him on not wanting to renew tax breaks for wealthy Americans, and imploring his political opponents to stop standing in the way of passing a small business jobs bill.

“If the Republican leadership is prepared to get serious about doing something for families that are hurting out there, I would love to talk to them,” he said.

Obama did, however, kindly acknowledge Ohio Senator George Voinovich (R), who earlier in the day said he would urge his GOP colleagues to vote ‘yes’ on the bill when Congress returns to session next week.

Obama To Appoint Goolsbee As CEA Chair

President Barack Obama has selected one of his longtime economic advisers, Austan Goolsbee, to replace Christina Romer as Chair of the Council of Economic Advisers, according to a White House official.

Romer recently stepped down amid a withering economy with plans to return to California to be with her son as he starts high school this fall. She is expected to take a teaching position at the University of California at Berkely. 

Her replacement, Austan Goolsbee, a University of Chicago professor of economics, has been serving as staff director of the President’s Economic Recovery Advisory Board, a new Obama administration advisory committee, since Obama took office. Goolsbee also served as Obama’s senior economic adviser during the 2008 presidential campaign but slid under the radar after he reportedly told Canadian officials Obama’s stance on trade was ‘political positioning’. He disputed the allegations and later resurfaced in a series of debates with Sen. John McCain’s (R-Ariz.) economic adviser, Douglas Holtz-Eakin.

Additionally, because the 41-year-old Goolsbee was confirmed by the Senate as a member of the Council of Economic Advisers, he does not need a second confirmation to ascend as chairman. 

President Obama is expected to make his appointment public this morning at a news conference from the White House.

White House Counting On Bipartisan Agreement Over Wall Street Reform

Minutes after President Barack Obama gave a speech calling for swift passage of financial regulatory reform, a top White House economist told reporters he is extremely confident that Republicans will back the bill being considered in the Senate.

"There is every indication that we can [achieve a bipartisan bill]," said Council of Economic Advisers member Austan Goolsbee. "Fundamentally, I'm very optimistic that we're gonna have a clean bill that is supported in a bipartisan way by a lot of people."

Goolsbee said the message of the President's speech today was simple: Firms on Wall Street must help pass reform, not obstruct it.

"The lobbying expenses that have been incurred by opponents [of reform] who are trying to preserve the status quo that got us here is not acceptable."

Obama promises tax cuts for middle class, increase for the wealthy

Sen. Barack Obama's tax plan would cut taxes to rates that are lower than those seen under Ronald Reagan, according to Jason Furman, the Obama for America Economic Policy Director. He and others held a conference call to discuss Obama's tax plan, and to dispel any myths that they feel were spread by Sen. John McCain's campaign.

Furman went on to say that taxes on middle class families would be significantly cut, with the overall tax rate brought down to less than 18 percent of our nations Gross Domestic Product (GDP). In addition, he said Obama would supplement these cuts by ending the war in Iraq responsibly and cut subsidies to Medicare HMOs. Furman also said that any family earning below $250,000 annually can expect no tax increases under an Obama administration, while McCain cannot say the same thing. He said that McCain's plan, for the first time in history, would force Americans to pay taxes on health insurance they receive from employers. Furman said this would result in a $3.6 trillion tax increase on middle class Americans.

Austan Goolsbee, Chief Economic Advisor for Obama for America said that the top one percent of households would see their taxes go from 21 percent to less than 25 percent. In addition, Goolsbee said that Obama would lower taxes on dividends and capital gains.

Former Treasury Secretary Larry Summers points out that while the McCain campaign and Conservatives in Washington have said that a Democratic tax plan would cause a recession, he points to the tax plan of the early 1990's under President Clinton. This plan was followed by the largest economic boom our nation has ever seen.

Obama Campaign: relieve the squeeze on ordinary Americans

Jason Furman, Sen. Barack Obama’s (D-Ill.) economic policy advisor, along with Austan Goolsbee held a conference call as a preview for Obama’s speech to take place in Raleigh, North Carolina as part of his “Change That Works for You” campaign. The purpose of the call was to contrast the economic proposals of presidential candidates Obama and Sen. John McCain (R-Ariz.).

Goolsbee explained the “economic pinch” that the American population has been feeling due to the jump in the unemployment rate and the rising cost of oil. He said that the dismal state of the economy is a culmination of a failed philosophy of cutting taxes for wealthy Americans without making investments for ordinary citizens.

Furman explained the clear and direct contrasts between Obama and McCain’s economic policies, saying that McCain has no short run stimulus plan and a long run theory that is “flat out false.” While McCain proposes enormous tax cuts, nearly twice as large as President Bush’s current plan, Obama wants to implement a tax relief for ordinary Americans, cutting up to $1,000 worth of taxes and giving direct tax relief to subsidized interest payments, a program which would not increase the economic deficit.

Both Furman and Goolsbee explained Obama’s belief that a short run stimulus is crucial for the American economy. After five consecutive months of job decline, a job stimulus is needed in order to get money into Americans’ pockets.