BenU Discusses Economy Recovery

By Tim Ziman

Photo Credit: Tim Ziman

Photo Credit: Tim Ziman

On Wednesday, Nov. 12 the CCL hosted a discussion on the Economy with guest speaker, Dr. Austan Goolsbee, a past chairman of the Council of Economic Advisors and member of President Barack Obama’s cabinet.

The discussion was focused on whether or not the economy will recover.

Dr. Goolsbee discussed a few different ideas, one being the art of Optimism and how the economy was previously in a V shaped system.

“The faster you go down the faster you go back up,” said Goolsbee. “It takes seven years before you start leveling out, which explains therefore the current lull in any form of activity by the economy.”

The discussion then led to how the economy seems to sometimes get stuck in a U shaped scenario.

“It’s wrong because this is a bus stop problem.” The Fed is still playing by the old rules and old ideas going back six years and waiting for those goals and aspirations for the economy,” said Dr. Goolsbee. “The government is just waiting at the bus stop for the same bus to come and holding up progress.”

According to Goolsbee, if we are waiting for the same economic bus to come back, the bus won’t come back. The old bus of the economy is long gone; the old economy is done and the new economy is what we should worry about.

He then turned his attention to issues happening in the D.C. area.

“D.C is doing nothing, because now that there is a new Congress, the chances of both parties ever agreeing is “0.5%”, which certainly explains the stalemate in D.C when it comes to international affairs,” said Goolsbee.

Dr. Goolsbee is still trying to remain optimistic about certain situations.

“Natural business cycle is in pent up demand and the U.S remains the most productive and skilled nation in the world,” said Goolsbee.

The audience changed gears in the discussion to the baby-boomer generation and how they are aiding the current growth of the economy as our population is increasing.

“U.S remains the most innovative, entrepreneurial and wealthiest economy in the world and if we believed we had it bad, there was always Europe, that was far behind us economically,” said Goolsbee.

According to multiple members of the audiences and Goolsbee, the short run as the economy can’t go back to what it was doing before the recession.

The discussion ended with thoughts on how it costs the government more because those students who cannot afford to pay off the debt will either drop out of school entirely, or just not attend college to begin with.