President Obama mentions Krugman and Stiglitz in interview...

[kentuck]

http://www.nytimes.com/2009/05/03/magazine/03Obama-t.html?pagewanted=4

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IV. Where the Economists are Coming From

I want to talk broadly about policy. When you and I spoke during the campaign, you made it clear that you had thought a lot about the economic debates within the Clinton administration. And you said that you wanted to have a Robert Rubin type and a Robert Reich type having a vigorous debate in front of you. And clearly you have a spectrum of Democrats within your economic-policy team.

THE PRESIDENT: But I don’t have Paul Krugman or Joseph Stiglitz. (7) (Laughter.)

No, this wasn’t about them. But they have made it clear that they are not working in your administration, haven’t they?

But in your inner circle, it really is dominated by Rubin protégés. And I’d be interested if —

THE PRESIDENT: You know, the — I mean, look, Larry Summers and Tim Geithner obviously worked at Treasury under Rubin.

And Peter Orszag, I think.

THE PRESIDENT: And Orszag — fair enough. You know, Christy Romer didn’t.

Jared Bernstein doesn’t — and Jared sits here every morning as part of my economic team. And Austan Goolsbee doesn’t. (8)

I mean, the truth is that what I’ve been constantly searching for is a ruthless pragmatism when it comes to economic policy. It is probably true that, given the financial crisis that had arisen, that the fact that both Tim and Larry had familiarity with financial crises was a plus, because I thought that we needed some people who could hit the ground running and would be comfortable dealing with some very large and difficult economic issues. And frankly, that list is pretty small, because the last Democratic president we had was Bill Clinton; he was on the scene for eight years, and for a big chunk of that time, Bob Rubin was his primary economic-policy maker. So it’s not surprising that anybody who had experience in those fronts was going to be coming out of a shop that would have been influenced by that.

Keep in mind, though, I mean, I have enormous respect for somebody like Joe Stiglitz. I read his stuff all the time. I actually am looking forward to having these folks in for ongoing discussion. Somebody who has enormous influence over my thinking is Paul Volcker, who is robust enough that, having presided over the Carter and Reagan years, he’s still sharp as a tack and able to give me huge advice and to provide some counterbalance.

The last point I’d make, though, is I think that — and I may have mentioned this to you — but now that I think about it, maybe it was post-election. When I first started having a round table of economic advisers, and Bob Reich was part of that, and he was sitting across the table from Bob Rubin and others, what you discovered was that some of the rifts that had existed back in the Clinton years had really narrowed drastically.

They agree a lot more than they used to, but not entirely.

THE PRESIDENT: Not entirely. But, I mean, the fact is that Larry Summers right now is very comfortable making arguments, often quite passionately, that Bob Reich used to be making when he was in the Clinton White House. Now Larry might not like me saying that —

Larry Summers is the new Bob Reich —

THE PRESIDENT: — that he’s become a soft touch. But, no, I think that one of the things that we all agree to is that the touchstone for economic policy is, does it allow the average American to find good employment and see their incomes rise; that we can’t just look at things in the aggregate, we do want to grow the pie, but we want to make sure that prosperity is spread across the spectrum of regions and occupations and genders and races; and that economic policy should focus on growing the pie, but it also has to make sure that everybody has got opportunity in that system.

I also think that there’s very little disagreement that there are lessons to be learned from this crisis in terms of the importance of regulation in the financial markets. And I think that this notion that there is somehow resistance to that — to those lessons within my economic team — just isn’t borne out by the discussions that I have every day.

If anything, the only thing I notice, I think, that I do think is something of a carry-over from Bob Rubin — I see it in Larry, I see it in Tim — is a great appreciation of complexity.

And a willingness to admit what you don’t know, in many cases.

THE PRESIDENT: Yes, exactly. And so what that means is that, as we’re making economic policy, I think there is a certain humility about the consequences of the actions we take, intended and unintended, that may make some outside observers impatient. I mean, you’ll recall Geithner was just getting hammered for months. But he, I think, is very secure in saying we need to get these things right, and if we act too abruptly, we can end up doing more harm than good. Those are qualities that I think have been useful.

[MasonJar]

1. When Volcker disagreed with Geithner, Volcker was relegated to some hinterland.

Obama is just deluding himself. Get Stiglitz and Krugman and Volcker in there, Barack, and listen to them. You have a very one-sided discussion going on. That situation is detrimental to the public and its taxpayers.