If you talk to economists, left, right, center, they generally express respect and admiration for the academic work of Austan Goolsbee, the University of Chicago economist who is Obama's chief domestic policy advisor. That said, Goolsbee is a straight, up the middle centrist Democrat in his politics.

He's not a "Chicago-school" economist, but he does work at Chicago and, well, that tends to exert certain pressures on one's worldview. For this reason I've always though Obama's selection of Goolsbee has his chief advisor was strange and disappointing. It's good to have sharp technocrats around you, but when it comes to economic policy, ideology isn't a bad thing. Many of the problems we face are problems of political economy, problems of distribution and not problems for which there are straightforward technocratic solutions. Goolsbee's a tax economist, which might explain Obama's frustrating tendency to talk about economic inequality as being caused by the Bush tax cuts, with the obvious remedy being to reverse them. But the problem is that there's been a consistent and troubling rise in pre-tax inequality, and the remedies for this are much more obviously political: strengthening unions, for one. But because of his beliefs and sociology of the profession and university to which he belongs, Goolsbee simply isn't going to invest tremendous energy in calling for stronger unions.

I thought about Goolsbee during the last few weeks and how much he must of been squirming as Obama attacked NAFTA in Ohio. And I think whatever was said in the meeting he had with the Canadian consulate in Chicago, the revelation of the meeting really did have an effect in Ohio.

It may be time for the Obama campaign to reconsider whether Goolsbee is the person they want as the face of their domestic policy.

Comments (30)

1. I'm sorry, Chris, but that next-to-last sentence is unreadable. What do you mean?

   Posted by tnac.1 at 03/05/2008 @ 11:31am

2. I'm sorry, Chris, but that next-to-last sentence is unreadable. What do you mean?

   Posted by tnac.1 at 03/05/2008 @ 11:31am

3. A "Goolsbee Problem"???????

   How about an Obama Problem?? The man gives his opinion to some Canadians....that's what advisers do!

   BTW, I respect the Univ. of Chicago....applied to its heavily Quant-based MBA program--good thing I didn't get in--I really didn't want to stay up north afterward....:~)

   Posted by Happy at 03/05/2008 @ 11:37am

4. Why can the Nation (among Obama's other apologists) not bring itself to mention the the most relevant fact about Goolsbee which is that he is the staff economist for the DLC [dlc.org]

   This puts him not "in the center" but well to the right of center of mainstream progressive economists.

   Of course, this flies in the face of Obama's repudiation of his ties to the DLC, a line which the Nation evidently bought into hook, line and sinker.

   Posted by john.halle at 03/05/2008 @ 11:46am

5. Mr Hayes, you are NEVER going to get a "Robin Hahnel" as a Democrat's economic advisor!

   Posted by Mask at 03/05/2008 @ 11:47am

6. Obviously our economic problems came before Bush, they really took off under Reagan, and continued peacefully through Bush Sr, Bill Clinton, and Bush Jr, and here we are. I think it is a bit premature to start going after Obama's advisors though. When he starts picking a cabinet, then that's alright, but seriously, at this point it is a little premature to accuse Goolsbee of anything, or to assume that the DLC is going to be running Obama's campaign because of staff overlap.

   Posted by bridoc at 03/05/2008 @ 11:55am

7. whoever doubts that ALL THREE of these "candidates" have "been up for a visit" is a fool.

   whoever doubts that ALL THREE of these "candidates" haven't soothed the money dudes "running*" their largest trading partner and petroleum supplier is a fool.

   IT'S 3 A.M.

   YOUR KIDS ARE SLEEPING

   AND ON THE RED, SINISTER PHONE,

   BARACK OBAMA IS TALKING TO

   CANADIANS!!!!!

   Posted by frosty zoom at 03/05/2008 @ 1:09pm

8. http://www.suntimes.com/news/elections/823895,CST-NWS-camp04.article

   It turned out that the Canadian consulate in Chicago contacted one of my advisers, Austan Goolsbee, on their initiative. Invited him down to meet with them. He went down there as a courtesy and at some point they started talking about trade and NAFTA."

   i smell a set up.........

   Posted by frosty zoom at 03/05/2008 @ 1:10pm

9. I was interested in the comments by the "Native" of Ohio about Democratic doubts concerning Obama and Clinton. I thought the Canadian consulate visit might have an effect on the Ohio primary, and the Clinton "big" win there may reflect that incident. NAFTA and "Free Trade'" will come back and bite both parties in this election, 2010, and 2012. The economic crash is just beginning!

   Posted by P. J. Casey at 03/05/2008 @ 1:22pm

10. of course it did...it is ALL about electability now.

    Must read for those into American politics!!!! I found some brilliant/awesome analysis on Obama's current happenings on the campaign trail. I haven't seen anything like this mentioned anywhere in the MSM. Check out the article "Super Tuesday 2: Revenge of the Clintons" on http://savagepolitics.com/?p=177, "Follow the Money" on http://savagepolitics.com/?p=165, "Bush's Twin and the G.O.P." http://savagepolitics.com/?p=172 and "Barack Obama's Apotasy" http://savagepolitics.com/?p=101 Check their "Political Analysis" and "Humor" sections for other striking perspectives and comedic analysis on both parties.

    Posted by elsylee at 03/05/2008 @ 1:33pm

11. "That's this guy's language," Goolsbee said. "He's not quoting me. I certainly did not use that phrase in any way."

    Posted by frosty zoom at 03/05/2008 @ 1:34pm

12. Posted by FROSTY ZOOM 03/05/2008

    This link looks broken to me.

    What story, etc, are you referring to?

    Posted by gloryoski at 03/05/2008 @ 6:13pm

13. Oops. Sorry. (Mensa...)

    Posted by gloryoski at 03/05/2008 @ 6:15pm

14. From ChicagoTribune.com, Jurors in the Rezko Trial have been selected, estimated 3 months gig:

    Judge keeps jurors' identities hidden

    March 5, 2008; 4:48 p.m.

    The jurors in the Antoin "Tony" Rezko corruption case have been picked, but for the foreseeable future, they'll have to toil in anonymity......

    Posted by Happy at 03/05/2008 @ 7:43pm

15. "must of been squirming" !!!!

    Was this written (and edited?) by an illiterate fifth-grader?

    Posted by mts231f at 03/05/2008 @ 8:42pm

16. I too was concerned when I saw Goolsbee's pedigree, still am. He is concerned about growing wealth inequality, and how the tax system exercerbates it, with some cogent analysis. He also, however, buys into the idea that much of this wealth differential has to do with skill differential, a favorite argument of people like David Brooks, and a dubious one at that. Capitalism and wealth inequality are two peas in a pod, the exceptions occur when there are serious government efforts to make it otherwise and/or sometimes war (WWII for example).

    Posted by shoebeacon at 03/05/2008 @ 9:15pm

17. Harper says information leak unfair to Obama, probe in progress

    Last Updated: Wednesday, March 5, 2008 | 7:18 PM ET

    CBC News

    Prime Minister Stephen Harper said Wednesday the leak of information about Barack Obama regarding NAFTA was unfair to the U.S. senator's presidential campaign and possibly illegal.

    "This kind of leaking of information is completely unacceptable and, in fact, it may well be illegal," Harper told the House of Commons, adding it "was blatantly unfair" to the Democratic candidate and his campaign.

    boooooooooooo!

    Posted by frosty zoom at 03/05/2008 @ 9:47pm

18. 'NAFTAgate' began with remark from Harper's chief of staff

    ALEXANDER PANETTA

    The Canadian Press

    March 5, 2008 at 8:53 PM EST

    OTTAWA -- If the Prime Minister is seeking the first link in the chain of events that has rocked the U.S. presidential race, he need look no further than his chief of staff, Ian Brodie, The Canadian Press has learned.

    A candid comment to journalists from CTV News by Prime Minister Stephen Harper's most senior political staffer during the hurly-burly of a budget lock-up provided the initial spark in what the American media are now calling NAFTAgate.

    hmmmmmmmmm...........

    Posted by frosty zoom at 03/05/2008 @ 9:49pm

19. At the end of an extended conversation, Mr. Brodie was asked about remarks aimed by the Democratic candidates at Ohio's anti-NAFTA voters that carried serious economic implications for Canada.

    Since 75 per cent of Canadian exports go to the U.S., Mr. Obama and Ms. Clinton's musings about reopening the North American free-trade pact had caused some concern.

    Mr. Brodie downplayed those concerns.

    "Quite a few people heard it," said one source in the room.

    "He said someone from (Hillary) Clinton's campaign is telling the embassy to take it with a grain of salt. . . That someone called us and told us not to worry."

    Government officials did not deny the conversation took place.

    Posted by frosty zoom at 03/05/2008 @ 9:58pm

20. CTV News Vice-President Robert Hurst said he would not discuss his journalists' sources.

    But others said the content of Mr. Brodie's remarks was passed on to CTV's Washington bureau and their White House correspondent set out the next day to pursue the story on Ms. Clinton's apparent hypocrisy on the North American Free Trade Agreement.

    Although CTV correspondent Tom Clark mentioned Ms. Clinton in passing, the focus of his story was on assurances from the Obama camp.

    He went to air on Feb. 27 with a report that the Democratic front-runner had given advance notice to Canadian diplomats that he was about to engage in some anti-NAFTA rhetoric, but not to take it too seriously.

    sources.....

    Posted by frosty zoom at 03/05/2008 @ 10:00pm

21. Posted by SHOEBEACON 03/05/2008 @ 9:15pm

    Wage levels can be closely associated with skill/productivity levels. Before we launch into the small percentage of trust-fund baby tales, (there is a certain political family in Mass. that leaps to mind) look at any sports franchise, which player gets the biggest contracts? The individuals who have a history of high performance at their current position and, where there is a high level of confidence that that level of productivity will continue.

    On another note, I just saw the Forbes Billionaire list; Bill Gates has 58 billion dollars. Try as I might, I can not identify one of those 58 billion dollars that I have a legal, moral or ethical claim to.

    Posted by Next Door at 03/05/2008 @ 10:02pm

22. seems like mr. harper only wants to investigate the second (memo) leak

    but not the first leak (that of talks).

    his chief of staff 'doesn't recall'.

    Posted by frosty zoom at 03/05/2008 @ 10:05pm

23. Wage levels can be closely associated with skill/productivity levels.

    So women and minorities are on average less skilled than white men? They certainly make less on average.

    Also you know nothing about sports. The highest paid player is the one with the history of high performance? Somebody should tell Isiah Thomas. Or Matt Millen. Or whoever is in charge of the Yankees these days.

    Try as I might, I can not identify one of those 58 billion dollars that I have a legal, moral or ethical claim to.

    Then go read some Rawls. Or some Sandel. Or some JS Mill. Or Kant. Or St. Thomas Aquinas. Or Aristotle. Or Plato. Or any of the great moral thinkers of our time or in history (Sandel doesn't really count, but he is Rawls' most significant living opponent) who all seem to agree that Gates does not deserve all that he has.

    Posted by dentedpat at 03/06/2008 @ 02:51am

24. Or the Bible.

    Posted by dentedpat at 03/06/2008 @ 02:51am

25. Obama's initial denial was in response to a CTV story about talks with Canadian Ambassador Michael Wilson in Washington. The Canadian Embassy ALSO denied any conversation took place.

    Later and post-memo this was corrected to a casual 40 min meeting with Canada's consul general in Chicago. Bear in mind this meeting has never been a secret.

    Prime Minister Stephen Harper's chief of staff, "leaked" this memo to the US media, and in turn Obama's campaign. Again Obama was forced to defend his position.

    Obama needs only to reiterate. He knows not to feed our media with answers for them attack for attack sake, which is the only thing this is about.

    Duck Soup, a recipe for mis-charictarization.

    Goolsbee was indisputably clear, "A: In no possible way was that a reference to NAFTA. And B: In no possible way was I inferring that he was going to introduce any policies that you should ignore and he had no intention of enacting. Those are both completely crazy."

    We are not alone in this. NDP foreign affairs critic Bob Rae said, "This is Republican International in action."

    "I'm stunned that the Harper government would insert itself into the U.S. election," said Leslie Swartman, director of communications for Liberal Leader Stephane Dion.

    I have read + heard that the current admin in Canada may currently be under investigations for an unrelated scandal involving the bribing of and Independent Party Legislator for votes. There may be motives of their own to Wag the Dog. Since this will be just yet another case for the prosecutors to handle, slowing them down.

    Lest we forget our own Republicans and/or Hillary had a time of tending to our less than honest media with this pablum.

    Dont' be fooled!

    Posted by Silverlark at 03/06/2008 @ 05:22am

26. Posted by DENTEDPAT 03/06/2008 @ 02:51am

    "So women and minorities are on average less skilled than white men?"

    By nature of their gender or ethnicity, no, you need a closer examination of the facts surrounding the case in point. Wage differentials have numerous causal factors. A visit to the BLS site will give a good overview. But the factors having the highest correlation to wage levels disparities are experience, training and ability.

    "Also you know nothing about sports."

    Why did A-Rod get his 250K contract when he was in Texas? Sports Franchises are in the business of putting butts in the seats and that is best done with winning teams and that begins with good players. It may be easier to view a sports contract as a bet, management is betting, based on a player's history that they will perform at a certain level. In your opinion, what are the factors that cause some players to be paid more than others?

    "…all seem to agree that Gates does not deserve all that he has.."

    I did not implicitly or explicitly state the Gates did not have responsibility to society to make life better for those around him, I'm pretty sure we all have that responsibility. I meant that I could not walk up to him and look him in the eye and say, "Sir, you have something that belongs to me."

    Posted by Next Door at 03/06/2008 @ 1:09pm

27. I am a longtime Nation subscriber, and I was extremely disappointed to see its recent endorsement of Obama. The primary reason for my growing disillusionment with Obama is Goolsbee, and what I see as his influence on Obama's domestic policies.

    The Nation continues to paper over Goolsbee's ideology, which is hardly centrist, as well as Obama's apparent market ideology, which increasingly appears to be libertarian, as reflected in his policy proposals.

    His health care proposal is just one example of this. Obama's subprime mortgage "plan", if one can call it a plan to offer less assistance to homeowners than the Bush administration, is another.

    And just as disturbing as his proposals are the rhetoric he chooses to defend them. When he talks about mandates, what free market libertarians hear is the defense of the free market and an excoriation of government intervention. When Obama claims that Hillary's rate freeze plan, which applies retroactively and only to 2/28 and 3/27 subprime ARMs, will raise interest rates for all mortgages, he is mimicking the Wall Street Journal oped pages, and expressing the argument that any government intervention into markets will raise costs across the board.

    I am indeed highly disappointed in the economic writers of the Nation, who place Obama as center-left on economic issues, and Goolsbee as a "centrist". As you may know, the Wall Street Journal editorial board also calls Obama a center-left candidate and Goolsbee a centrist.

    I never thought I'd see the day when the Nation's viewpoints reflected those of the WSJ oped pages, particularly after a Rupert Murdoch takeover of the latter. Has Murdoch also quietly bought out the Nation's oped board?

    Posted by DAVEMIN at 03/06/2008 @ 3:03pm

28. Goolsbee on health care. He seems to ignore the fact that our current health care system already spends a disproportionately exorbitant amount of money on overhead. He also seems to ignore comparative economics, arguing in the abstract that single payer will cause longer waits, and rationing, and poorer care, without citing any facts, and omitting the fact that single payer systems are generally superior to our own in both cost AND in quality and quantity of care.

    http://www.slate.com/id/2169454/

    Posted by DAVEMIN at 03/06/2008 @ 3:17pm

29. Here's Goolsbee in March 2007 arguing against the regulation of subprime brokers, because subprime ARMs with exploding balloon payments were such a good thing for minority homeowners (who were being targeted with subprime mortgages, even when they qualified for prime ones): http://www.nytimes.com/2007/03/29/business/29scene.html?ei=5090&en=9a15c 212b118d691&ex=1332820800&partner=rssuserland&emc=rss&pagewanted=print

    Posted by DAVEMIN at 03/06/2008 @ 4:09pm

30. The more information that comes to light, the more it would appear that Mr. Hayes and Mr. Nichols are among those who've been somewhat taken in by Slick Hilly. It's no great shame, and they're not the only ones, but here we are now in seven more weeks of Groundhog Day.

    I certainly wouldn't mind seeing more Hahnels among the advisors, especially since social and ecological costs are very real, but the point here seems to be what really happened, and on that score I think the story is still largely untold.

    Posted by Donald Weed at 03/06/2008 @ 4:28pm