Sunday, February 5, 2012

Would President Gingrich Hire Christina Romer as Economic Advisor?

Christina Romer presented an excellent discussion on the effects of fiscal policy with this closing line:

The one thing that has disillusioned me is the discussion of fiscal policy. Policymakers and far too many economists seem to be arguing from ideology rather than evidence. As I have described this evening, the evidence is stronger than it has ever been that fiscal policy matters—that fiscal stimulus helps the economy add jobs, and that reducing the budget deficit lowers growth at least in the near term. And yet, this evidence does not seem to be getting through to the legislative process. That is unacceptable. We are never going to solve our problems if we can’t agree at least on the facts. Evidence-based policymaking is essential if we are ever going to triumph over this recession and deal with our long-run budget problems.

Gingrich isn’t exactly known for seeking reality based advice, which is why this stunned me:

Newt Gingrich said Sunday that an “age of austerity” is the wrong solution for the economy and would “punish” the American people. He said he prefers “pro-growth” policies instead. The comments appear to pour cold water on the modern Republican belief that austerity and growth go hand in hand.

I just wish we could take the latest from Newt seriously!


Godfree Roberts said...

Our decision-makers are sponsored by people whose interests they must protect. "Ideology" is fig leaf.
We are competing against a government, China's, whose decions makers are not 'sponsored' and are free to make decisions rationally. That their decision-makers are professional problem-solvers (engineers) improves the quality of their decions and, thus, China's competitive position.
And the Chinese give them an 86% trust and approval rating, which is food for thought.

spencer said...

But remember, what he means by pro-growth policy is lower taxes for the wealthy regardless of the fact that it may actually make the deficit worse.