that's austan goolsbee. up next a great tweet can be worth a thousand words, and ill-advised one, a thousand headaches. that's next. and it can only be found in "the war room." ♪ gavin newsom shifts into high gear for answers on the gavin newsom show. in the middle of a department store. some parents might have scolded him. ♪ ♪ jonathan's parents gave him... gymnastics lessons. ♪ ♪ it's amazing how far you can go with a little help along the way. ♪ ♪ td ameritrade. proud sponsor of the 2012 u.s. olympic team. what's my secret for sunday lunch? my little helpers... and 100% natural french's yellow mustard. it has zero calories for me, and a taste my family loves. ♪ >> jennifer: here are a couple of "war room" fast facts for you. there were 1.8 million tweets sent on election day in 2008. that was at the time twitter's biggest day ever. fast forward and it takes six minutes to send that number of tweets. tweeters are paying close attention to the election and people who are actively using social media, are typ

it asked about austan goolsbee. he is a good sport. a really nice guy.ying to defend a lot of things that are indefensible. but my problem for them is how do they pivot and talk about if the record is not good. but then what policy do we have to propose that we would do a second term to make things better? that is totally missing from the conversation. >> greg: it takes guts for austan goolsbee to come on hannity to sell this economy. it's like bringing a hooker to a funeral. you are going to lose. >> kimberly: are you sure? >> greg: yes. to my funeral, no. it's not about obama. it's about romney. romney has to go after obama the way hannity went after goolsbee. the next debates in my opinion are the biggest debates in my lifetime. because you are talking about taking the ultra progressive and you have a person that has to counter those arguments or you're going to have four more years of the faculty lounge. it will have to channel his ener newt. we all have an inner newt. >> kimberly: great point. people may disagree or whatever with newt about some stu

austan goolsbee was chairman of president obama's council of economic visors for two years now he's an economics professor at the university of chicago's booth school of business. but more importantly at the white house correspondents dinner this past april i asked him for a prediction for the next jobs report. even after a drink or two, he nailed it. austan, i hope your numbers are always that good. thanks for your time tonight. >> they are. i appreciate you remembering that. >> eliot: i wouldn't have minded if you were wrong but you have everybody's respect as an economic wizard. what is it like to walk into the oval office and say mr. president, here are the numbers, and sometimes they're not so good. >> well, it feels better when they're good than bad, but before me the tradition somewhat was if the numbers were good, they wanted to give it themselves. and if they were bad, they would send one of the staffers to deliver it. i changed that. either way i would go tell it like it was. it's usually--if they're bad it's usually grim. if they're good, sometimes i like to mess with the pr

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. >>> coming up the long road to economic recovery, we've got austan goolsbee, one of our favorites, to get jobs manufacturing and investments in u.s. growing again, he'll talk investments as well and paul and mr. goolsbee i'm sure can do something interesting here. >>> the most sweeping piece of welfare legislation since the new deal, why the ceo of mt. sinai hospital says the affordable health care act must be implemented and what it means for patient health care, after the break. you know what i love about this country? trick question. i love everything about this country! including prilosec otc. you know one pill each morning treats your frequent heartburn so you can enjoy all this great land of ours has to offer like demolition derbies. and drive thru weddings. so if you're one of those people who gets heartburn and then treats day after day, block the acid with prilosec otc and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn. >>> fiscal issues, front and center, for both presidential campaigns. >> are you trying to trash

austan goolsbee says the tax plan cannot work.u cut tax rates 20% that will add $4 trillion to deficits other the next ten years on top of extending the bush cuts which will also add. he said for high income earningers you could take away deductions, special exemptions and carve-outs and you still are going to run up the budget deficit by up to $2 trillion. that means there has to be a middle class tax increase to pay for this. he was quite specific on his numbers, paul. i wonder if you can give a specific rebuttal. >> look, i didn't read the piece. but i know him well. we have debated over the years. they are measuring all of this against this massive tax increase coming in january which the congressional budget office told us yesterday if this happens and president obama gets his wish he'll go back into a recession. they are trying to measure the world against the massive tax increase they want to occur which they think will trigger a recession which hurts revenues. we are saying plug loopholes, lower tax rates. don't forget eig

here and steve liesman and former council of economic advisers chairman and economics professor austan goolsbee alluded, wondering if you're as neglect of a as you have been. what are you looking for this time around? >> i expect only about 65,000 because of all of the stuff in europe, our growth rate is measly and with a measly growth rate there's no secret there are not going to be many jobs. i haven't seen much change in the dynamic the last three, four months. >> diane pointed she's looking for 95,000, saying there could be an upside surprise because of what happened to the autos, factories, a lot of noise with seasonality there? >> i hope so, but you know, the overall thing is if we're growing 1.5%, we're not going to have good jobs numbers. >> are you looking at 8.2%, too? >> i think it might go up to 8.3, but either stay the same or tick up a bit. >> okay, mark, how about you? >> i'm more optimistic as i have been, wrongly so, though. i think 125,000 for the month, but i will say this is, for me, a very important report because if it comes in soft again, i'll have to rethink things. >> y

. >> and austan goolsbee said don't bring out the party hats just yet but it is going in the right directionll the new entrants into the lay mor market, and that is something we always want to see. let's take a look at some of the other parts of this. 25,000 manufacturing jobs created. that's pretty important because we were really closely watching what's happening to american factories because of weakness in europe. 49,000 in professional and business services. 29,000 jobs in food services. that's a sign cop sup consumers maybe spending a little money this summer. i want to are break this down. you saw an improvement for hispanics from 11% unemployment to 10.3 with the rest of the major groups basically steady. here's where the politics comes in, carol, because the white house is pointing out that it's 29 straight months of private sector job creation, more than 4 million jobs cree yaeted over that period for the private sector and that is true. the gop is pointing out it's a record amount of time with the unemployment rate above 8%. that is true. we have three more of these jobs reports ti

austan goolsbee from the university of chicago's booth school of business, you know him as one of they on in his term. so what's a better job, being a professor or advising the president? [laughter] >> well, professor at chicago's the greatest job on earth: jenna: oh, really? >> the other's a great experience. jenna: they both sound pretty good. it's nice to have a job these days regardless. >> that's true. jenna: you say the go-go days of housing are over, so what does the new housing market look like, or what can we expect in the years to come? >> well, it's a super important question because we got lulled into a false sense over the ten years from 1996 to 2006 that was totally different than any previous period in u.s. history. we went for 70 or so years before that house prices rose about 1% a year. after inflation. and over that ten years they've rose about 12-15% a year. so we have a collapse, that was a bubble. we have a collapse, now it's great news that we're turning it around. but it's not going back to growing 12, 15% a year. it's going to go back, most likely, to what was

joined by austan goolsbee, former top economist, and writer for "the wall street journal."d all day, they're spinning this report. there's one headline that jumped out to me in bloomberg, said july jobs report is clear as mud. so from your view, clear this up. is it good, bad, indifferent, more of the same. >> there must be an election coming up. you're right. both sides tried to spin it their direction. it is a strange report. the labor department does two surveys of the job market. what happened is they both point opposite directions. one report shows healthy job growth numbers of about 165,000 jobs, pretty decent number. the other report is what's used to calculate the unemployment rate. went up a slight amount. also showed, that report showed loss of 195,000 jobs. as you can see, both are pointing opposite directions. one statistic that concerned me the most was that labor force participation rate which is the percentage of working age people that are actually in the labor market, that fell again. and this has been at a record low for a long time. >> you're taking july

i was debating austan goolsbee last week and he threw that statistic out. of clustering, moving to silicon valley and getting a job at facebook or intel is valuable. can the municipal move in and tax at higher rates, they can, you'd look at new york, california and you look at any of the big states that have really valuable clusters and what you're going to find is high local taxes. it's not the taxes that are driving growth up and down. it's the value of clustering and getting talented people together who can share idea. >> can't you just go back to the notion that capital is going to flourish where it's treated best and have some type of oversight? have you seen the way governments, it's just so simple -- >> i'm not arguing -- >> capital is treated better in the private sector than government sector. >> nobody at the table, including myself, is going to argue somehow that increasing tax rates is going to spur economic growth. the question is whether it's going to hurt economic growth. >> there's no way it can, there's no way money left for people to devel