Obama鈥檚 economic team: Triage completed, it's time for tougher choices.
The Washington Post invited me (and other economists) last week to . I tried to be dispassionate about it and anyway didn鈥檛 have the space to rag about the Bush/Obama tax cuts for the umpteenth time鈥搘hich are more a forward-looking issue anyway (and we can鈥檛 change the past, after all). Here鈥檚 my about-200-words perspective on how the 鈥渢eam鈥� did over the first two years, and why the next two will be different:
DIANE LIM ROGERS
Chief economist at the Concord Coalition and blogger at EconomistMom.com
President Obama鈥檚 inaugural economic team did about the best it could, given the terrible economic circumstances it inherited and the challenges it faced in Congress. Its individual members would have preferred policies more effective in dampening the recession and in improving the long-term budget outlook. The stimulus might have been structured to provide greater short-term 鈥渂ang per buck鈥� with elements better reflecting Larry Summers鈥檚 own 鈥渢hree Ts鈥� 鈥� timely, targeted, and temporary. And the health-care reform could have been heavier on long-term cost-saving measures to 鈥渂end the health cost curve鈥� more to Peter Orszag鈥檚 liking. But given the political constraints, the policies enacted were decent successes.
The departing members of the economic team were chosen for their pure intelligence and their well-tested policy instincts 鈥� exactly what was needed to perform triage on a failing economy. Over the next two years, however, there will be more time to develop a fiscal policy strategy that will best transition our economy from a 鈥渟timulate demand鈥� mode (throw the money out there fast) to an 鈥渋ncrease supply鈥� (start living within our means) mode. Because this will necessitate many difficult policy choices that can only be achieved by working with Congress in a bipartisan manner, it is crucial that the new members of the Obama economic team have unusual people skills 鈥� not just book smarts.
Some may interpret my reference to the need for more 鈥減eople skills鈥� on the economic team as my call for more women on the team, but I鈥檓 not necessarily saying that (although it is a shame we are 鈥渄own one鈥� in losing Christina Romer). I just mean people who have very good communication and diplomacy skills, whether they be women or men. The hardest part about fiscal policy right now and going forward is getting everyone to talk about the tough choices and tradeoffs, and their own preferences on them, in an straightforward, open, honest and respectful (with ears as well as mouths open) way.
Maybe we need some 鈥渆conomist therapists鈥� on the new team.
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