Former Obama adviser plays defense on jobs report

Former Obama Council of Economic Advisers chairman Austan Goolsbee defended President Obama in the wake of Friday's disappointing jobs report during an appearance on Fox News Sunday.

The August jobs report found only 96,000 jobs being created. The unemployment rate fell to 8.1 percent from 8.3 percent but most of that was from people giving up looking for work. 

“As in good months and bad months, all economists say...you never want to take one month's report,” Goolsbee said. 

Goolsbee argued that the unemployment rate has been reduced by 1 percent in the last year and “most of it” is from new jobs. He also said the August report reflects people choosing to go back to school and retiring. 

He admitted however that “the root of the problem is modest growth in the U.S.” but said growth here is faster than in the rest of the world which is still trying to recover from the 2008 financial crisis. 

Goolsbee also argued that the policies of GOP candidate Mitt Romney which he said included “cutting taxes for Mitt Romney's horse which counts as a small business under their definition,” will not help the situation. Instead broad-based growth that includes government investment is the answer. 

Romney senior economic adviser Glenn Hubbard countered that Obama's policy of raising taxes on the wealthy would hurt growth further.

“I can't imagine an argument that raising taxes on high income people is a recipe for growth,” he said, adding that “one can debate fairness arguments.”

Hubbard also had to play defense under tough questioning from host Chris Wallace. He declined to give new details on how Romney can balance the budget by 2020, two decades sooner than the House-passed 2013 budget.

---