Obama’s Chief Economist vs. Obama’s Other Economists
This is Gregory Mankiw, writing in The New York Times:
Christina D. Romer, the chairwoman of the president’s Council of Economic Advisers, in work with her husband, David H. Romer, [found that] each dollar of tax cuts has historically raised G.D.P. by about $3 — three times the figure used in the administration report. That is also far greater than most estimates of the effects of government spending.
Other recent work supports the Romers’ findings.
Beyond the multiplier effect, $1 of tax cuts allows taxpayers to consume an additional dollar worth of goods and services they prefer.
Moreover, even if it were true that government spending stimulates the economy and raises GDP, stimulating demand for more bureaucrats doesn’t boost my happiness.
Obviously she was a lot better before she went to work for the Obama Administration.
She made immensely more sense when she was in the private sector.
Bottom line: she was a good economist, before she became a government economist.