Romer resigns from Obama WH post

posted at 9:30 am on August 6, 2010 by Ed Morrissey

Christine Romer will resign from her position as chief of Barack Obama’s Council of Economic Advisers effective September 3rd. The White House says she wants to return to her previous career as an academic for family reasons; the AP reports that it has more to do with a conflict between Romer and Larry Summers about who gets the President’s ear on economic policy.  Either way, Romer leaves a mark on this administration of failure that won’t be easily removed:

Christina Romer, one of President Barack Obama’s most pivotal economic advisers, is resigning, a change that comes as the White House struggles to show signs of clear economic gains to a hurting nation.

She will return to her job as a professor of economics at the University of California, Berkeley. The White House cast the decision as an unsurprising one driven by family reasons; in a statement, Obama said Romer has long wanted to return to California, where her son will be starting high school in the fall.

Romer has been one of the administration’s most prominent voices on the economy, making frequent appearances on television and at White House events to promote Obama’s policies. Her resignation comes as the White House labors to convince the public that the economy is on the right track amid near-double digit unemployment. …

Romer’s resignation came amid a report that she had been frustrasted that she didn’t have as much access to the president as LarrySummers, director of the White House National Economic Council. One administration official, speaking on condition of anonymity to discuss internal relations at the White House, played down that notion, noting that Romer met with the president daily to chart the government’s response to the financial meltdown. The official said Romer and Summers often emerged as strong allies.

Romer’s legacy will probably mostly focus on the Porkulus chart that argued for a $775 billion stimulus package and predicted it would hold the unemployment rate at 8% or below.  The updated chart shows just how well Romer guessed in January 2009:

Romer also played a big role in botching the future deficits projection last year, missing the mark by $2 trillion.  King Banaian showed the arbitrary (and unsupportable) assumptions that went into Romer’s initial figures, and the lame excuses that followed their exposure.  Romer made a career in this administration of making unsupportable claims and bad bets, and she should have resigned a year ago over that amateurish episode.

That makes two key members of Obama’s economic team to depart this summer.  Peter Orszag, the budget director who couldn’t spot Romer’s $2 trillion error and who presided over the biggest deficit expansion in modern history, hit the road for family obligations earlier.  With approval ratings on the economy for Obama and Democrats crashing while unemployment skyrockets, it looks as though the White House wants to clean house and argue for a fresh start just before the midterms.  Until that “fresh start” begins to reduce spending, taxes, and regulatory burdens, though, the composition of Obama’s economic team isn’t going to make any difference at all.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Comment pages: 1 2

Well, they are out of moves. Now, it’s down to state jobs or benefit programs.
AnninCA on August 6, 2010 at 11:26 AM

Well, not really. There’s still approximately 460 billion left from the “stimulus” that hasn’t been spent, and Pelosi wants Congress to vote on another 26 billion “jobs” bill slated specifically for union members (teachers, cops and firemen). Democrat controlled cities have threatened to lay off or fire these people unless the taxpayers pay up.

darwin on August 6, 2010 at 11:30 AM

Ed:

You have this one wrong. She resigned because she could no longer perform the role of loyal mouthpiece for the President’s disasterous economic policies. All of Dr. Romer’s academic research pointed to the massive failure of the stimulus bill. She never believed any of it. Every member of a President’s staff has to mouth the party line.

jerryofva on August 6, 2010 at 11:32 AM

Well, not really. There’s still approximately 460 billion left from the “stimulus” that hasn’t been spent, and Pelosi wants Congress to vote on another 26 billion “jobs” bill slated specifically for union members (teachers, cops and firemen). Democrat controlled cities have threatened to lay off or fire these people unless the taxpayers pay up.

darwin on August 6, 2010 at 11:30 AM

What do you think? I actually agree with her on this. Another year to give states that aren’t blessed with a Cristi might help real people.

Ratchet down, in other words. People need time to adjust to what middle-class really means in this country now. And it’s going to be quite a spiral down.

Anything that the administration does to give real people a chance to adjust naturally is OK by me, anyway.

But what do you think? Are you for shock method?

AnninCA on August 6, 2010 at 11:37 AM

Best to get out now because the public is getting restless. No one in this administration wants to do what is necessary to take care of Americans whether it’s job creation or protecting them.

They’re incompetent ideologues who love being in power, living large on the taxpayer’s dime and explaining daily that we are stupid and have no idea what’s good for us and our families.

Too bad Romer can’t take more of these clowns with her.

Cody1991 on August 6, 2010 at 10:03 AM

I think this is the best summation of this administration I have ever read. Kudos to you!!

NJ Red on August 6, 2010 at 11:41 AM

But what do you think? Are you for shock method?

AnninCA on August 6, 2010 at 11:37 AM

Governor Christie did the shock method. Right now he has almost 50% approval rating. What do you think?

NJ Red on August 6, 2010 at 11:42 AM

All these democrat women are ugly inside and out… They look the same on the outside, like fat middle aged men, because what they believe makes them look that way… I’m glad she’s out but another worse person will probably be coming in.

CCRWM on August 6, 2010 at 11:43 AM

But what do you think? Are you for shock method?

AnninCA on August 6, 2010 at 11:37 AM

First, we shouldn’t be using federal funds to bail out unions. The unions and politicians are to blame. Secondly, helping them out for a year will not fix the problem. It only puts off the inevitable for a year. The problem has to be addressed now. Benefits and retirement packages have to be renegotiated, or cut.

All giving states money does is pass the problems off until next year … which is what the democrats want of course, after November 2010. Then they’ll use the remaining stimulus to cover themselves for 2012.

Ratchet down, in other words. People need time to adjust to what middle-class really means in this country now. And it’s going to be quite a spiral down.

Not necessarily. Ever heard of the Roaring 20′s? Lower taxes, massive spending cuts and reduced burdensome government regulation literally ignited the economy. We can have the same but we must shrink government, cut spending and reduce their control on us and the market.

darwin on August 6, 2010 at 11:49 AM

Aunt Bea is going back to Mayberry…darn.

Wyznowski on August 6, 2010 at 11:50 AM

Governor Christie did the shock method. Right now he has almost 50% approval rating. What do you think?

NJ Red on August 6, 2010 at 11:42 AM

I think NJ had truly faced rising taxes for years. This was the best moment for a Crist-type.

And he seized it. I admire that.

He’s honestly on the side of real people. Time to buckle down and get real.

So, in short, I applaud him, but not every state was in the same position. FL is, in my opinion. Definitely CA, but I don’t hear the same straight talk out of Fiorina or Whitman. We’ll see. NY is so in the same spot. Heaven help them.

Conservative states are quicker to pull the trigger, I think. MO, VA, WVA, etc.,

I think personally that conservatives will retake most states in terms of local levels, and the national battles will depend upon the candidate. NV will go back to Reid. Sharon is simply too odd, too much the far-right, to win. Even though she’s within range, I think she’s hit her max in attraction. From now on, she’ll decline.

She had a shot, but she just is too steeped in Christian right talk to appeal.

So Harry will return.

And CA will give the GOP a slight win, but not enough of a mandate to fix the problems. I think, personally, that CA is depending on a federal bailout.

The US is simply not prepared to let CA truly burn and flame.

It’s a major source of our economy, and that would mean the end of the US economy, so they’ll bail out CA in some way.

How, to me, is the real question.

AnninCA on August 6, 2010 at 11:54 AM

Not necessarily. Ever heard of the Roaring 20’s? Lower taxes, massive spending cuts and reduced burdensome government regulation literally ignited the economy. We can have the same but we must shrink government, cut spending and reduce their control on us and the market.

darwin on August 6, 2010 at 11:49 AM

We are close in agreement. I just posted a comparison of the 90′s to the roaring 20′s.

However, do remember that doing nothing resulted in the starvation of Americans.

Are you honestly ready for that?

AnninCA on August 6, 2010 at 11:56 AM

One commie down, so many to go.

Dave R. on August 6, 2010 at 11:57 AM

However, do remember that doing nothing resulted in the starvation of Americans.

Are you honestly ready for that?

AnninCA on August 6, 2010 at 11:56 AM

Uh … getting a little carried away? Starving? All unions have to do is agree to renegotiations. Union members have been living fat for years … it’s they, not the average person that must make some sacrifices for the good of the country. Everyone will sacrifice some, but the main point here is either we do this now or face total collapse down the road. Union benefits are simply unsustainable.

darwin on August 6, 2010 at 12:00 PM

Reading this thread suggests to me that Bambi’s “Clenis stategy” is working.I’m wondering how many people here at HA are going to end up voting for Bambi in 2012.
Even here people have taken their eye of the ball,and Bambi has two more years to deflect attention away from himself.
I read all the time how he is going to be a one term POTUS,but judging from this thread it is clear to me that we are stuck with him till at least 2016.
If the commenters here can’t see through his strategy,how can we expect the independents to see through it?
The Liberals he brought into government are nothing but a smokescreen for his Islamic agenda for America.

DDT on August 6, 2010 at 12:13 PM

Romer shouldn’t be allowed anywhere near an economics classroom in any capacity other than as a student.

Dave R. on August 6, 2010 at 12:14 PM

The US is simply not prepared to let CA truly burn and flame.

It’s a major source of our economy, and that would mean the end of the US economy, so they’ll bail out CA in some way.

How, to me, is the real question.

AnninCA on August 6, 2010 at 11:54 AM

How much do you think the US depends on the economies of NJ and NY??? Until they learn that the current unions demands simply cannot continue to be met, they WILL crash and burn. And the rest of us will pay for it. As Christie says, there is no one left to pay their bills.

NJ Red on August 6, 2010 at 12:17 PM

The ordinary function of government is to destroy talented people, but Romer’s epic failure has an additional element of tragedy. As an economist, Romer did an excellent job [pdf] of establishing that New Deal stimulus failed to end or seriously mitigate the Great Depression. As an Obama team player (and poignantly, a sunny supporter of the then-senator’s campaign), she made a 180-degree turn toward pro-stimulus hocus pocus.

Rae on August 6, 2010 at 12:18 PM

DDT on August 6, 2010 at 12:13 PM

I think you are right.

ORconservative on August 6, 2010 at 12:49 PM

professor of economics at the University of California, Berkeley

This is the eff-ing problem. She’ll go back to Berkley and teach a new generation of students how to eff-up an economy with fuzzy math combined with communist dogma. Nice.

Claypigeon on August 6, 2010 at 1:07 PM

Am I the only one here who thought this person reminded him of Petunia Pig?

madmonkphotog on August 6, 2010 at 1:34 PM

professor of economics at the University of California, Berkeley

This is the eff-ing problem. She’ll go back to Berkley and teach a new generation of students how to eff-up an economy with fuzzy math combined with communist dogma. Nice.

Claypigeon on August 6, 2010 at 1:07 PM

Today Rush Limbaugh said that as a professor she wrote about tax cuts and how they could help stimulate an economy, and that material was deep-sixed when she went to the White House. Perhaps she does have a brain.

slickwillie2001 on August 6, 2010 at 1:51 PM

Today Rush Limbaugh said that as a professor she wrote about tax cuts and how they could help stimulate an economy, and that material was deep-sixed when she went to the White House. Perhaps she does have a brain.

slickwillie2001 on August 6, 2010 at 1:51 PM

She also wrote how the New Deal was a Raw Deal (see my post above).

Rae on August 6, 2010 at 1:59 PM

How much do you think the US depends on the economies of NJ and NY??? Until they learn that the current unions demands simply cannot continue to be met, they WILL crash and burn. And the rest of us will pay for it. As Christie says, there is no one left to pay their bills.

NJ Red on August 6, 2010 at 12:17 PM

I was talking about CA, which is 1/8th of this nation’s economy.

That isn’t peanuts.

AnninCA on August 6, 2010 at 1:59 PM

I was talking about CA, which is 1/8th of this nation’s economy.

That isn’t peanuts.

AnninCA on August 6, 2010 at 1:59 PM

Yeah, but keeping CA alive just drains resources from every other state. If CA is to survive then it has to do it on it’s own. All states have to. To bailout failure fixes nothing, it just keeps the problem alive.

Unions and illegals are the two biggest drain of public funds around.

darwin on August 6, 2010 at 2:08 PM

Those who can, do. Those who can’t, teach.

mwdiver on August 6, 2010 at 9:47 AM

Those who can’t teach, teach gym…

PatriotRider on August 6, 2010 at 2:09 PM

Actually it is:

Those who can, do.
Those who can’t, teach.
Those who can’t teach, administrate.
Those who can’t administrate run for office.

sclemens on August 6, 2010 at 2:31 PM

Those who can, do.
Those who can’t, teach.
Those who can’t teach, administrate.
Those who can’t administrate run for office.

sclemens on August 6, 2010 at 2:31 PM

The Peter Principle?

fossten on August 6, 2010 at 2:37 PM

I don’t personally think

Personally, I thought

I personally thought

I thought

I’d be willing to bet my last dollar

I always knew

made me convinced

Makes sense to me

AnninCA on August 6, 2010 at 10:45 AM

I suggest a writing course.

/

fossten on August 6, 2010 at 2:42 PM

Reading this thread suggests to me that Bambi’s “Clenis stategy” is working.I’m wondering how many people here at HA are going to end up voting for Bambi in 2012.

Oh, I know I am. I can’t stand to see any vote end up as unanimous, so I’ll cast mine for JugEars.

BobMbx on August 6, 2010 at 3:44 PM

Perhaps Mr. Obama could resign his post for ‘family obligations’.

locomotivebreath1901 on August 6, 2010 at 3:59 PM

who the hell would take an economics class from her? To pass her class, you need to be ready to fail at life.

Daemonocracy on August 6, 2010 at 4:37 PM

Anything that the administration does to give real people a chance to adjust naturally is OK by me, anyway.

But what do you think? Are you for shock method?

AnninCA on August 6, 2010 at 11:37 AM

Pony up babe, I do not want to pay for their bad governing,thank you very much. They elected the people who took them down. Let them learn a lesson for once. It has taken decades of Democrat rule to get them there, bail them out and you get more of the same.

IowaWoman on August 6, 2010 at 5:08 PM

The US is simply not prepared to let CA truly burn and flame.

It’s a major source of our economy, and that would mean the end of the US economy, so they’ll bail out CA in some way.

How, to me, is the real question.

AnninCA on August 6, 2010 at 11:54 AM

OHHHHHHHHHHH, I get it now you want a bail out.

IowaWoman on August 6, 2010 at 5:12 PM

Just out of curiosity, is anyone keeping track of the number of resignations / firings / disappearances from this administration?
.
How about the number of “appointees”, who, like Van Jones, were quickly shown to be grievously unqualified?
.
It seems to me that the numbers are high, much higher than any previous administration. Ever.
.
The reasons for leaving, almost always “family”, seem to be, in all cases, a euphemism for “inability to do even the basics of the job
.
How many are former academics? The percentage looks to be very high.
.
This looks like an excellent campaign issue: the claim of “He’ll surround himself with the best / most capable minds”, used by a few Democratic candidates for President in the last 20+ years, as a means to cover for the Candidate’s obvious inability and lack of experience, is now clearly a sign ……
.
…… a sign that the Candidate is a bad choice, not up top the job, incompetent, will screw up again and again, ……
.
This needs to be hammered home in November … 2010 and 2012.
.

Arbalest on August 6, 2010 at 5:14 PM

OHHHHHHHHHHH, I get it now you want a bail out.

IowaWoman on August 6, 2010 at 5:12 PM

Ding…ding…ding!!!

The entire country should take it in the shorts because a state full of ‘smart’, ‘caring’, ‘enlightened’ people are about to go tit$ up because they are so full of ‘empathy’ and ‘diversity’ and ..blah…blah…blah…

Hey, California…Kiss My A$$…

BigWyo on August 6, 2010 at 5:27 PM

We do need to put some thought into how a state can go bankrupt. We need to take the process applicable to a corporation and see if it can be adapted to a state, and how federal law might support such a process. We need to find a few good respected bankruptcy judges and get them on board. If no laws, pass some. Time is short.

slickwillie2001 on August 6, 2010 at 6:18 PM

Man these liberal women all look alike.

carbon_footprint on August 6, 2010 at 9:31 AM

They are very handsome men.

cableguy615 on August 6, 2010 at 7:29 PM

“The problem with socialism is that eventually you run out of other people’s money.” (Margaret Thatcher)

KMC1 on August 6, 2010 at 7:52 PM

She has a son?

txag92 on August 6, 2010 at 8:55 PM

The Village Idiot found a new home…see you later, porkchop.

David in ATL on August 6, 2010 at 9:12 PM

So… when does Obama announce that Paul Krugman is being brought on to replace her?

agmartin on August 6, 2010 at 9:30 PM

Family reasons, huh? Wonder what kind of scandal she’s involved in?

abcurtis on August 6, 2010 at 10:28 PM

I’m glad she’s out but another worse person will probably be coming in.

CCRWM on August 6, 2010 at 11:43 AM

But of course, look who will be appointing her replacement; you think he’s learned any lessons here?

AZfederalist on August 6, 2010 at 10:31 PM

Like watching a bad NFL team!

A lovely lady from Vegas says The One is about to do something really stupid and large before the elections. This comes from her watching folks under pressure. And she has studied Psychology.

I am betting on a goof by His staff. I figure to at least tie since I have hundreds of morons and she only has The One.

IlikedAUH2O on August 6, 2010 at 11:20 PM

She is an economist. I am an optimist. I give her the benefit of the doubt and suspect she can see some truth.

The hours she is instructed to spin bad news into good news took it;s toll. They do know what Obama does hurts growth and jobs. They know why it does.
carter was so stupid he had no clue. She leaves because she sees advice is tossed aside and the Obama doctrine does it his way. Accountants often leave their jobs when asked to cook the books.

seven on August 7, 2010 at 10:33 PM

Comment pages: 1 2