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Another Economist Abandons Obama – They Know They Have Failed

Posted by FactReal on June 7, 2011

The latest adviser to abandon Obama is Austan Goolsbee. Here is The Washington Times report:

Goolsbee exit comes at tough time for Obama, economy

By Dave Boyer -The Washington Times, June 7, 2011

The departure of President Obama’s chief economist comes as the administration’s nearly trillion-dollar recovery is losing steam and Mr. Obama admits lackluster job growth could become a trend.

“Obviously we’re experiencing some headwinds,” Mr. Obama said Tuesday of a rise in unemployment to 9.1 percent in May. (…)

But the advisers who helped Mr. Obama create that plan are leaving or already gone. Austan Goolsbee, chairman of the White House Council of Economic Advisers, announced Monday night that he is leaving his post soon to return to a teaching position at the University of Chicago. Former CEA chairwoman Christina Romer, former senior economic adviser Larry Summers and budget director Peter Orszag all departed last year. Jared Bernstein, economic adviser to Vice President Joseph R. Biden Jr., left last month.

Also, the Hill newspaper reported that Mr. Obama has stopped receiving his daily economic briefings, which his aides once likened in importance to national security briefings. The president does hold regular meetings on the economy and receives a daily report on paper.

Leadership at the Commerce Department is in flux, with outgoing Secretary Gary Locke headed for the ambassadorship to China and his replacement, John Bryson, facing a slow confirmation process in the Senate. The core of Mr. Obama’s remaining economic team is led by Treasury Secretary Timothy F. Geithner and Gene Sperling, head of the National Economic Council.

Amid that turnover, employers added only 54,000 payroll jobs in May, the fewest in eight months.

“This jobs report — which would be weak in any economy — comes at a particularly devastating time, when the labor market remains 6.9 million payroll jobs below where it was at the official start of the recession three years and five months ago,” said economist Heidi Shierholz of the Economic Policy Institute in her report on the data for May.

…And Mr. Obama’s job approval numbers are falling with the bad economic reports. Unemployment in May for black workers was 16.2 percent, and 11.9 percent for Hispanics.


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