Council of Economic Advisers

The Council of Economic Advisers (CEA) is a United States agency within the Executive Office of the President established in 1946, which advises the President of the United States on economic policy.[2] The CEA provides much of the empirical research for the White House and prepares the annual Economic Report of the President.

Council of Economic Advisers (CEA)
Council of Economic Advisers
Agency overview
Formed1946
Preceding agencies
HeadquartersEisenhower Executive Office Building
EmployeesAbout 35
Agency executive
Parent agencyExecutive Office of the President of the United States
WebsiteCouncil of Economic Advisers

Economic Report of the President

The report is published by the CEA in February of each year. It reviews what economic activity was of impact in the previous year, outlines the economic goals for the coming year (based on the President's economic agenda), and makes numerical projections of how the economy will perform. Criticism usually follows, sometimes attacking the importance placed or not placed on particular data, and also on the importance of particular goals presented in the Overview.

Actual data, related to or used in the report, are from the Bureau of Economic Analysis and U.S. Bureau of Labor Statistics.

History: 1946–1978

The Truman administration established the Council of Economic Advisers via the Employment Act of 1946 to provide presidents with objective economic analysis and advice on the development and implementation of a wide range of domestic and international economic policy issues. It was a step from an "ad hoc style of economic policy-making to a more institutionalized and focused process". In 1949 Chairman Edwin Nourse and member Leon Keyserling argued about whether the advice should be private or public and about the role of government in economic stabilization.[3]

Nourse believed a choice had to be made between "guns or butter" but Keyserling argued for deficit spending, asserting that an expanding economy could afford large defense expenditures without sacrificing an increased standard of living. In 1949, Keyserling gained support from Truman advisors Dean Acheson and Clark Clifford. Nourse resigned as chairman, warning about the dangers of budget deficits and increased funding of "wasteful" defense costs. Keyserling succeeded to the chairmanship and influenced Truman's Fair Deal proposals and the economic sections of NSC 68 that, in April 1950, asserted that the larger armed forces America needed would not affect living standards or risk the "transformation of the free character of our economy."[4]

During the 1953–54 recession, the CEA, headed by Arthur Burns deployed non-traditional neo-keynesian interventions, which provided results later called the "steady fifties" wherein many families stayed in the economic "middle class" with just one family wage-earner. The Eisenhower Administration supported an activist contracyclical approach that helped to establish Keynesianism as a possible bipartisan economic policy for the nation. Especially important in formulating the CEA response to the recession—accelerating public works programs, easing credit, and reducing taxes—were Arthur F. Burns and Neil H. Jacoby.[5]

Until 1963, during its first seven years the CEA made five technical advances in policy making, including the replacement of a "cyclical model" of the economy by a "growth model," the setting of quantitative targets for the economy, use of the theories of fiscal drag and full-employment budget, recognition of the need for greater flexibility in taxation, and replacement of the notion of unemployment as a structural problem by a realization of a low aggregate demand.[6]

The 1978 Humphrey–Hawkins Full Employment Act required each administration to move toward full employment and reasonable price stability within a specific time period. It has been criticized for making CEA's annual economic report highly political in nature, as well as highly unreliable and inaccurate over the standard two or five year projection periods.[7]

History: 1978–present

Since 1980, the CEA has focused on sources of economic growth, the supply side of the economy, and on international issues.[3] In the wake of the Great Recession of 2008-2009, the Council of Economic Advisers played a significant role in supporting the American Recovery and Reinvestment Act. [8]

Under the direction of Kevin Hassett during the Donald Trump presidency, the CEA released a report vilifying socialism and associating what they characterized as the "socialist" policies of liberal politicians to those of historical authoritarian regimes.[9]

Organization

The council's chairman is nominated by the president and confirmed by the United States Senate. The members are appointed by the president. As of July 2017, the Council´s 18 person staff consisted of a chief of staff (Director of Macroeconomic Forecasting), 15 economists (5 senior, 4 research, 4 staff economists, 2 economic statisticians) and 2 operations staff.[10]Many of the staff economists are academics on leave or government economists on temporary assignment from other agencies.[8]

Chairmen and members

List of chairmen

Officeholder Term start Term end President
Edwin G. Nourse August 9, 1946 November 1, 1949 Harry Truman
Leon Keyserling
Acting: 1949–1950
November 2, 1949 January 20, 1953
Arthur F. Burns March 19, 1953 December 1, 1956 Dwight Eisenhower
Raymond J. Saulnier December 3, 1956 January 20, 1961
Walter Heller January 29, 1961 November 15, 1964 John F. Kennedy
Lyndon Johnson
Gardner Ackley November 16, 1964 February 15, 1968
Arthur M. Okun February 15, 1968 January 20, 1969
Paul W. McCracken February 4, 1969 December 31, 1971 Richard Nixon
Herbert Stein January 1, 1972 August 31, 1974
Gerald Ford
Alan Greenspan September 4, 1974 January 20, 1977
Charles Schultze January 22, 1977 January 20, 1981 Jimmy Carter
Murray Weidenbaum February 27, 1981 August 25, 1982 Ronald Reagan
Martin Feldstein October 14, 1982 July 10, 1984
Beryl W. Sprinkel April 18, 1985 January 20, 1989
Michael J. Boskin February 2, 1989 January 20, 1993 George H. W. Bush
Laura Tyson February 5, 1993 February 21, 1995 Bill Clinton
Joseph Stiglitz June 28, 1995 February 13, 1997
Janet Yellen February 18, 1997 August 3, 1999
Martin N. Baily August 12, 1999 January 20, 2001
Glenn Hubbard May 11, 2001 February 28, 2003 George W. Bush
Greg Mankiw May 29, 2003 February 18, 2005
Harvey S. Rosen February 23, 2005 June 10, 2005
Ben Bernanke June 21, 2005 January 31, 2006
Edward Lazear February 27, 2006 January 20, 2009
Christina Romer January 28, 2009 September 3, 2010 Barack Obama
Austan Goolsbee September 10, 2010 August 5, 2011
Alan Krueger November 7, 2011 August 2, 2013
Jason Furman[11] August 2, 2013 January 20, 2017
Kevin Hassett[12] September 13, 2017 Incumbent Donald Trump

List of members

References

  1. ^ a b Wage and Price Controls Encyclopedia.com n.d.
  2. ^ Council of Economic Advisers
  3. ^ a b Remarks by Chairman Alan Greenspan. Receipt of the Truman Medal for Economic Policy. Before the Truman Medal Award and Economics Conference, Kansas City, Missouri October 26, 2005, Council of Economic Advisers website under President Bush
  4. ^ Brune 1989
  5. ^ Engelbourg 1980
  6. ^ Salant 1973
  7. ^ Cimbala and Stout 1983
  8. ^ a b Flickenschild; Michael, Afonso, Alexandre (2018). "Networks of economic policy expertise in Germany and the United States in the wake of the Great Recession". Journal of European Public Policy.
  9. ^ "What Could Kill Booming U.S. Economy? 'Socialists,' White House Warns". Retrieved 20 November 2018.
  10. ^ Council of Economic Advisers. Staff Whitehouse.gov, n.d. accessed 29 July 2017
  11. ^ "Obama names Furman as new White House chief economist", Reuters, 2013-06-10
  12. ^ "Senate Confirms Kevin Hassett as Chairman of the President's Council of Economic Advisers", The Wall Street Journal, 2017-09-12

Sources

External links

Alan Krueger

Alan Bennett Krueger (September 17, 1960 – March 16, 2019) was an American economist who was the James Madison Professor of Political Economy at Princeton University and Research Associate at the National Bureau of Economic Research. He served as Assistant Secretary of the Treasury for Economic Policy, nominated by President Barack Obama, from May 2009 to October 2010, when he returned to Princeton. He was nominated in 2011 by Obama as chair of the White House Council of Economic Advisers, and served in that office from November 2011 to August 2013. He was among the 50 highest ranked economists in the world according to Research Papers in Economics.

Austan Goolsbee

Austan Dean Goolsbee (born August 18, 1969) is an American economist who is currently the Robert P. Gwinn Professor of Economics at the University of Chicago's Booth School of Business. Goolsbee formerly served as the Chair of the Council of Economic Advisers and was a member of the cabinet of President Barack Obama.Goolsbee served on the three-member Council of Economic Advisers from the start of the Obama Administration. He advised President Obama during his 2004 U.S. Senate race and was senior economic policy adviser during the 2008 Obama Presidential Campaign. He took over in September 2010 as the Council's chair, replacing Christina Romer, who had left to return to a teaching position at the University of California at Berkeley. On June 6, 2011, he announced that he was departing the administration and returning to the University of Chicago.Since January 2013 he has been a strategic partner at 32 Advisors. He leads their Economic Intelligence practice.

Beryl Wayne Sprinkel

Beryl Wayne Sprinkel (November 20, 1923 – August 22, 2009) was a member of the Executive Office of the US President and chairman of the Council of Economic Advisors (CEA) between April 4, 1985 and January 21, 1989, during the Reagan administration.

Raised on a farm near Richmond, Missouri, Sprinkel was a member of the 2nd Armored Division, which led the attack that penetrated and defeated the German offensive near Celles, Belgium, in the Battle of the Bulge during World War II.

Charles Schultze

Charles Louis Schultze (December 12, 1924 – September 27, 2016) was an American economist and public policy analyst. He served as the Chairman of the Council of Economic Advisers during the President Carter Administration. Schultze was appointed the Assistant Director of the Bureau of the Budget by President John F. Kennedy in 1962, and was the director from 1965 until 1968 during President Lyndon Johnson's Great Society agenda. He was also a veteran of World War II, during which he served in the army.

Christina Romer

Christina Duckworth Romer (née Duckworth; born December 25, 1958) is the Class of 1957 Garff B. Wilson Professor of Economics at the University of California, Berkeley and a former chair of the Council of Economic Advisers in the Obama administration. She resigned from her role on the Council of Economic Advisers on September 3, 2010.After her nomination and before the Obama administration took office, Romer worked with economist Jared Bernstein to co-author the administration's plan for recovery from the 2008 recession. In a January 2009 video presentation, she discussed details of the job creation program that the Obama administration submitted to Congress.

Clarence Long

Clarence Dickinson "Doc" Long, Jr. (December 11, 1908 – September 18, 1994) was a Democratic U.S. Congressman who represented the 2nd congressional district of Maryland from January 3, 1963 to January 3, 1985.

Long was born in South Bend, Indiana. He received his bachelor's degree from Washington and Jefferson College in 1932, and his master's degree and PhD from Princeton University in 1935 and 1938, respectively. He also served in the United States Navy during World War II. He was a former member of the United States Council of Economic Advisers to the President (1953–54 and 1956–57) and in the 1930s was a professor of economics at Wesleyan University and later Johns Hopkins University (1946-1963).

Long became Chairman of the subcommittee on Foreign Operations of the House Appropriations Committee. In this role he supervised the foreign aid budget. Long's support for the anti-Soviet Mujahideen was recounted in the film Charlie Wilson's War, in which Long was played by Ned Beatty. Long was defeated for re-election by Republican Helen Delich Bentley in 1984.

Council of Economic Advisers (Scotland)

The Council of Economic Advisers (CEA) in Scotland is a group of economists and captains of industry who advise the Scottish Government. It was established in 2007, meeting for the first time on 21 September.

Minutes of its quarterly meetings will be published a fortnight after each meeting. It is intended that the council will publish an annual report on the condition of the Scottish economy.

Edwin Griswold Nourse

Edwin Griswold Nourse (May 20, 1883 – April 7, 1974) was an American economist. He served as the first chairman of the Council of Economic Advisors between 1946 and 1949.

Greg Mankiw

Nicholas Gregory Mankiw (; born February 3, 1958) is an American macroeconomist, who is currently the Robert M. Beren Professor of Economics at Harvard University. Mankiw is best known in academia for his work on New Keynesian economics.

Mankiw has written widely on economics and economic policy. As of April 2016, the RePEc overall ranking based on academic publications, citations, and related metrics put him as the 23rd most influential economist in the world, out of nearly 50,000 registered authors. He was the 11th most cited economist and the 9th most productive research economist as measured by the h-index. In addition, Mankiw is the author of several best-selling textbooks, writes a popular blog, and since 2007 has written a column, approximately monthly, for the Sunday business section of The New York Times. A 2011 survey of economics professors named Mankiw their second favorite living economist under the age of 60, just after Paul Krugman and just before Daron Acemoglu.Mankiw is a conservative and has been an economic adviser to several Republican politicians. From 2003 to 2005, Mankiw was Chairman of the Council of Economic Advisers under President George W. Bush. In 2006, he became an economic adviser to Mitt Romney, and worked with Romney during his presidential campaigns in 2008 and 2012.

Harvey S. Rosen

Harvey Sheldon Rosen (born 29 March 1949) is the John L. Weinberg Professor of Economics and Business Policy at Princeton University, and former chairperson of the Council of Economic Advisers. His research focuses on public finance. Harvard University economist and former Council of Economic Advisers chairman Greg Mankiw credits Rosen as one of four mentors who taught him how to practice economics, along with Alan Blinder, Larry Summers, and Stanley Fischer.

Herbert Stein

Herbert Stein (August 27, 1916 – September 8, 1999) was an American economist, a senior fellow at the American Enterprise Institute and was on the board of contributors of The Wall Street Journal. He was chairman of the Council of Economic Advisers under Richard Nixon and Gerald Ford. From 1974 until 1984, he was the A. Willis Robertson Professor of Economics at the University of Virginia.

Janet Yellen

Janet Louise Yellen (born August 13, 1946) is an American economist at the Brookings Institution who served as the Chair of the Federal Reserve from 2014 to 2018, and as Vice Chair from 2010 to 2014. Previously, she was President and Chief Executive Officer of the Federal Reserve Bank of San Francisco; Chair of the White House Council of Economic Advisers under President Bill Clinton; and business professor at the University of California, Berkeley, Haas School of Business.

Yellen was nominated by President Obama to succeed Ben Bernanke as Chairwoman of the United States Federal Reserve. On January 6, 2014, the U.S. Senate confirmed Yellen's nomination. She was sworn in on February 3, 2014, making her the first woman to hold the position.

Jason Furman

Jason Furman (born August 18, 1970) is an American economist and professor at Harvard University's Kennedy School of Government and a Senior Fellow at the Peterson Institute for International Economics. On June 10, 2013, Furman was named by President Barack Obama as chair of the Council of Economic Advisers (CEA). Previously, since January 28, 2009, Furman had served as the Deputy Director of the National Economic Council, which followed his role as an advisor to candidate Obama during the 2008 presidential campaign. Furman's research and policy focus includes the subjects of taxes, health care, macroeconomic policy, competition and inequality, technology policy, and the U.S. Social Security program.

Professor Furman teaches at the Harvard Kennedy School. Starting Fall 2019, he teaches Ec 10, the year-long introductory economics class at Harvard, together with David Laibson.

Kevin Hassett

Kevin Allen Hassett (born March 20, 1962) is an American economist who is the Chairman of the Council of Economic Advisers. He is known for his work on tax policy and for coauthoring the book Dow 36,000, published in 1999. On June 2, 2019, President Trump announced Hassett's impending departure from the Trump Administration.

Prior to becoming Chairman of the Council of Economic Advisers, Hassett was the State Farm James Q. Wilson Chair in American Politics and Culture and Director of Research for Domestic Policy at the American Enterprise Institute, a conservative think tank. He was John McCain's chief economic adviser in the 2000 presidential primaries and an economic adviser to the campaigns of George W. Bush in the 2004 presidential election and McCain in the presidential election of 2008. He was among Mitt Romney's economic advisers for the 2012 presidential campaign.In early 2017, Hassett was nominated by President Donald Trump to become the 29th Chairman of the Council of Economic Advisers. The United States Senate confirmed him in an 81–16 vote on September 12, 2017. He was sworn in on September 13, 2017. He announced his departure on June 2, 2019; to be finalized in the proceeding weeks.

Laura Tyson

Laura D'Andrea Tyson (born June 28, 1947) is an American economist and former Chair of the US President's Council of Economic Advisers during the Clinton Administration. She also served as Director of the National Economic Council. She is currently a professor at the Haas School of Business of the University of California, Berkeley.

Leon Keyserling

Leon Hirsch Keyserling (January 11, 1908 – August 9, 1987) was an American economist and lawyer. During his career he helped draft major pieces of Fair Deal legislation and advised President Harry S. Truman as head of the Council of Economic Advisers.

Martin Neil Baily

Martin Neil Baily (born March 29, 1949) is an economist at the Brookings Institution and formerly at the Peterson Institute. He is best known for his work on productivity and competitiveness and for his tenure as a cabinet member during the Clinton Administration. He was one of three members of the Council of Economic Advisers from 1994 to 1996, and chairman of the Council from 1999 to 2001. He currently co-chairs the Bipartisan Policy Center's Financial Regulatory Reform Initiative and serves as a senior advisor at Albright Stonebridge Group.

Baily was a senior fellow at the Brookings Institution (1979–89) and subsequently professor of economics at the University of Maryland (1989–96). He was vice chairman of a National Academy of Sciences – National Research Council panel investigating the effect of computers on productivity. Baily co-founded the microeconomics issues of the Brookings Papers on Economic Activity. He was a principal at McKinsey & Company's Global Institute (1996–99) and has been a senior adviser to McKinsey since 2002. He joined the board of The Phoenix Companies in 2005 and is an academic adviser to the Congressional Budget Office and associate editor of the Journal of Economic Perspectives.Baily earned his Ph.D. in economics at the Massachusetts Institute of Technology (MIT) and his undergraduate degree at Cambridge University (UK), and taught at MIT and Yale University. He is the author of numerous books and articles and coauthor with Jacob Kirkegaard of Transforming the European Economy (2004).

Murray Weidenbaum

Murray Lew Weidenbaum (10 February 1927 – 20 March 2014), was an American economist and author. He was the Edward Mallinckrodt Distinguished University Professor and Honorary Chairman of the Murray Weidenbaum Center on the Economy, Government, and Public Policy at Washington University in St. Louis. He has served as Assistant Secretary of the Treasury for Economic Policy (1969–1971). He was chairman of President Ronald Reagan's first Council of Economic Advisors from 1981 to 1982.

Paul McCracken (economist)

Paul Winston McCracken (December 29, 1915 – August 3, 2012) was an American economist born in Richland, Iowa.

He held an M.A. and Ph.D. from Harvard University in Economics and a B.A. from William Penn University. He was the Edmund Ezra Day Distinguished University Professor Emeritus of Business Administration, Economics, and Public Policy at the University of Michigan. McCracken was chairman of the President's Council of Economic Advisors from 1969 to 1971 under President Richard Nixon. In 1976 he was elected as a Fellow of the American Statistical Association. He chaired the American Enterprise Institute's Council of Academic Advisors and served as interim president of the institute in 1986.He died on August 3, 2012 at age 96.

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