Well, this is interesting. Obama has named his new economic team and it has me quite intrigued. Geithner, Summers and Romer will be advising the new President when he takes office and, to be honest, I am a bit optimistic about it, particularly Romer’s presence. Christine Romer is hardly a Leftist. In fact, if you do your research, you’ll find out that the Left is not happy about her appointment. However, Wall Street responded favorably. Why? Because she is more of a supply-sider than a socialist. Romer could easily serve in any Republican administration, she is very much right of center, which is a good thing for economic times like these. She is pro-free trade and market oriented. She does not believe that government intervention can revive or stimulate the economy. She has been quoted as saying “…tax increases are highly contractionary” and cause a “…large, sustained, highly significant negative impact on output.” All indications show that both Geithner and Summers tend to lean this way as well.
What does that mean? Well, it tells me that Obama may govern as a centrist. That he will listen to economic advisors when they tell him that raising taxes during a recession is disastrous. It means that there will be no tax hikes in 2009, and possible not even in 2010, even though Obama has stopped short of officially announcing it. If this is true, then he improves his chances of re-election dramatically and stands to succeed as our leader. That’s good news. Now, let’s hope that he stands strong against Congress when they try to strong-arm him and his economic team, which is sure to happen. I only wish he would just come out and announce that he will not raise taxes during his first year. That would have a dramatic impact on the market and could potentially trigger a recovery. Why he has failed to do this, I don’t know.
So I give Obama a B+ on his economic team. His campaign rhetoric on redistribution of wealth so far appears to be only that. Hopefully, he won’t follow through on it. We’ll have to see how the media responds. Interesting how they brutalized Hillary and McCain for their economic proposals and have been rather silent so far regarding Obama’s economic team when that team could have just as easily been appointed by Obama’s former opponents.
Now the bad news. Hillary for Secretary of State??? Are you kidding me? This is very disappointing. I suppose Obama is attempting to mend fences here but couldn’t he have named her to a lower level cabinet position? She is not qualified for the job and has a very shady history relating to Bill’s final days as president. Foreign leaders will not take her seriously and may consider her a pushover. This is dangerous. My only hope is that her past will prevent her from being confirmed, but that’s a long shot. Obama missed it big time on this and it looks like nothing more than politics as usual, something he promised to stay away from. This gets a big fat “F” from WEP.
Good job on the economic team, very bad on the Sec State appointment.