Obama has picked Christina Romer to chair the CEA. Romer is a good pick who knows alot about recessions, how to fix them and macro economics in general.
However, one thing that you will probably not read in news stories on the pick is some of the work she has done. National Journal writes:
“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.”
They disagree with the general conservative view of starve the beast but share the general conservative view that lower taxes are better for economic growth.
The Economist blog has more. James Pethokoukis has more.
In my book, no real Conservative believes in “starve the beast”.
The general rule is: Republicans believe in tax cuts, but real Conservatives believe in spending cuts.
Reason #4,521 I am no longer a Republican.
Good morning. I saw your blog listed in urbanconservative. I just started my blog recently, the New Republican (http://thenewrepublicans.net) and was just added to the urbanconservative list. Would you consider linking and commenting on my blog from time to time? Thanks so much.
Interesting post there. I also like the new republican site above. Keep up the good work guys.