FRAMESHOP:OBAMA'S ECONOMIC TEAM (FOR DUMMIES)
A "cheat sheet" on Obama's economic appointments.
If you are like me, you are following Barack Obama's appointees to top economic positions with keen interest, but cringe worthy ignorance about the actual posts these folks are about to take up. What the heck do these people do, anyway? The following is a 5-minute Q&A Cheat Sheet on that very subject, written for those of us who should know what goes on in our government, but do not and are too embarrassed to ask.. Feel free to print out this cheat sheet and then email it to a friend with the subject line, "I obviously know this stuff, but in case you don't."
Who are the three top appointees?
Secretary of the Treasury: Tim Geithner
Chair of the National Economic Council: Larry Summers
Chair of the Council of Economic Advisers: Christina Romer
What is the 'Secretary of the Treasury'?
When Obama becomes President January 20, 2009, he will become the boss of 15 executive departments. Together with the Vice President, each of those 15 department heads (called 'Secretaries') constitute the President's cabinet (see the current cabinet here). Tim Geithner will become the head or 'Secretary' of the Treasury Department and as such a member of President Obama's cabinet. Among other technical functions, Secretary of Treasury implements the economic policies of the President--a position that will be hugely important as the economic crisis grows. Also: the Treasury Secretary's signature goes on every piece of currency issued while he is at the helm. If you look on the bottom right corner of the bills in your wallet, you should see the signature of the current secretary (Henry Paulson) and, possibly, the last one (John Snowe).
What is the 'National Economic Council'?
In addition to his cabinet, when Obama becomes President he will also inherit a bunch of organizations established at various times to advice him on important issues. All these councils and offices operate like in-house policy boards to help the President accomplish his agenda and, basically, do a good job. Attendees or 'members' of any given council will consist of heads of various departments in the executive branch (cabinet secretaries), plus other non-cabinet level advisers appointed by the President. The National Economic Council was established by President Clinton in 1993 to coordinate domestic and international policy issues and to make sure the policy decisions taken by the cabinet are on par with the President's overall goals. Once he begins, Larry Summers will likely preside over regular meetings with the Vice President, the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Commerce, and other department heads and advisers involved in implementing President Obama's economic agenda.
What is the 'Council of Economic Advisers'?
Beyond departments and councils, the President has a certain number of advisory boards made up of experts to give him advice on key issues. The Council of Economic Advisers consists of a group of scholars and experts tasked with evaluating the situation in the country and the President's policies in the form of objective advice. It was created by the Employment Act of 1946, to make sure there was a group of people who could give non-political advice directly to the President on such issues as jobs, tax plans, inflation, and trade. As Chair of the Council of Economic Advisers, Christina Romer will likely help evaluate how President Obama's economic agenda is working in terms of lifting the country out of recession. She also has the fun job of helping to prepare the economic reports the President will deliver.
What else should I know if I want to sound informed?
Christina Romer: Economics Prof. at UC Berkeley - Expert on economics of U.S. in post-Depression era
Larry Summers: Former President of Harvard - Former Secretary of Treasury
Tim Geithner: Current Head Of Federal Reserve of New York - Arranged the rescue and sale of Bear Sterns
What do these appointees suggest about President Obama?
Christina Romer: Her appointment suggests President Obama is looking deeply at the policies of FDR as a blue print for dealing with the economic crisis.
Tim Geithner: His appointment suggests President Obama is trying to reassure the financial markets with a very pro-business liberal appointee.
Larry Summers: A controversial figure with expertise in public financing, Summer's appointment suggests President Obama's early economic agenda will be very aggressive.
As President Elect Obama continues to roll out appointments, undoubtedly we will all need to study up more to understand what they will be doing. But this is a start.
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