Consider the following commentary concerning the incoming Chair of the Council of Economic Advisers, Christina Romer:
She burst into the economic scene with her doctoral dissertation that fundamentally changed how economists viewed the Great Depression.
Economics data indicated that the business cycle before the Great Depression was much more volatile than the economy after World War II. Economists widely assumed the data demonstrated the success of the post-Depression stabilization policies. Romer proved them wrong by showing that what seemed like a decrease in market volatility was really due to improved data collection.
“Post-Depression stabilization policies” were New Deal, policies, of course. Romer helped trash a key portion of the supposedly golden New Deal legacy. An arch-conservative economist could hardly have done better, I imagine.
Since then, she’s done extensive work researching the causes of the Great Depression and the roles that fiscal and monetary policy played in the country’s economic recovery. More recently, she has focused on the impact of tax policy on economic growth in papers co-authored with her husband.
Her findings have been cheered on both sides of the aisle. In a November 2008 paper, the Romers concluded that tax cuts can increase economic output, a finding cheered by in low-tax, Republican circles.
Romer supports trickle-down economics! Barack Obama’s campaign slogan against John McCain notwithstanding, perhaps with this pick, Obama has shown that he was the one running for George W. Bush’s third term.
Need I mention at this point that Barack Obama is not the Messiah and that to the contrary, he is just another politician?