According to reports, Christina Romer, Chairman of the President’s Council of Economics Advisers (CEA) is calling it quits. Why does this matter? Another ignored economist leaves Washington with a slightly tattered professional reputation to be received joyously back in the arms of her colleagues in academe having served in a glorious cause—pass the brie and chablis. Well, it matters, at least a little. It matters because the notice given means the CEA still matters. As a CEA alum, I’m encouraged that even in this Administration the outward appearance, at least, …
The economic effects of prolonged unemployment insurance (UI) have become a controversial topic recently. Conservatives have pointed to a raft of economic studies to demonstrate that, in addition to the benefits they provide, extended UI benefits also come with an economic cost – lengthening the amount of time that those without jobs stay unemployed. Many liberals ridicule conservatives for suggesting this could happen. Speaker Nancy Pelosi recently called the notion “an insult to these millions of people who have lost their jobs through no fault of their own.” If liberals …
Last summer, National Economic Council director Larry Summers said that in order to be effective, any stimulus bill “must be clearly and credibly temporary.” More and more people are beginning to notice that President Barack Obama’s trillion dollar spending plan completely fails that test. The Associated Press reports today: If the government spends billions on education to help jump-start the staggering economy, what happens when things improve and schools have grown used to the largesse? … The measure making its way through Congress would achieve a long-sought goal of Obama …
The Heritage Foundation is no believer in Keynesian economics. There simply is no credible evidence that it works. But there are many in President Barack Obama’s administration that are Keynesians. And before they were in Obama’s administration, some even laid out what a stimulus package would have to have in order to be even theoretically effective. Before he was appointed to be the head of the White House’s National Economic Council Larry Summers wrote (thanks to The Atlantic for the link): Poorly provided fiscal stimulus can have worse side effects …
