Today Obama announced his economic team. What I cannot figure out is why he picked Christina Romer to be his head economist. She seems pretty good but she believes that high taxes hurt growth. I don’t remember that being apart of President-Elect Obama’s platform. Politico has it here:
“President-elect Obama plans to name Christina Romer, an expert on tax cuts and recessions who is an economics professor at the University of California at Berkeley, to chair his Council of Economic Advisers, aides said.
This should come in handy: Romer was once the co-author of a paper called, “What Ends Recessions?”
The three-person council, appointed by the President and confirmed by the Senate, is a part of the White House apparatus designed to give the president policy advice and objective economic analysis.
At the same time that Obama is calling for higher income taxes on people making $250,000 or more, the Romers have found that tax increases are generally bad for economic growth and that they primarily discourage investment — the supply-side argument that conservatives use to justify tax cuts for the rich. On the other hand, the Romers have shredded the conservative premise that tax cuts eventually force spending reductions (‘starving the beast’). Instead, they concluded that tax reductions lead only to one thing — offsetting tax increases to recover lost revenue.”
Go figure. If there is one thing I can say for sure, is that no one knows who the real Barack Obama is.
The rest is here.