Economist Disagree About Current US Policies

Cristina Romer announced on “Meet the Press” that “We have put in the biggest, boldest recovery package in history… incredible medicine for (the) economy, and we fully expect it to work”. She continued to state that the underlining economy is in good shape and a recovery is expected with the current stimulus packages.
Romer is one of the economists who believe that increase government spending is the answer to the U.S. Economic crisis however some disagree. Cristina received her PH.D from MIT in 1985 and has been considered one of the top female economists in the world. In 2008 she was vetoed by Drew Faust to become a tenure professor at Harvard University’s Kennedy school of government.
Romers suggestions to the White House which is now policy is being debated by many economists. Paul Krugman of the New York Times believed the stimulus plan is not large enough to turn the economy around.
Romer stated “it is premature to talk about a second stimulus package” without giving the first one a chance to work.
There is no doubt that the heated debate of Romer’s recommendation, if inaccurate, will have serious consequences for the not just the U.S. economy but for World whom has looked for American leadership for economic success.
Harvard economist Jeffrey Miron said it’s a good idea that the Obama administration is focusing on long-term economic goals but the current U.S. budget proposal is “wildly optimistic”
“First, tax increases will probably not produce as much revenue as being forecast, and second, he hasn’t really touched the two really important programs that account for a huge fraction of our future liabilities (social security and Medicare,” said Miron.
Peter Orszag, the director of the Office of Management and Budget disagreed and said there will be substantial cutbacks.
Of course in Academia there will be many debates on what would be the best policy recommendations but the fact that Cristina Romer’s views are highly criticized is not consistent with the Obama’s statements that he has looked for a consensus of policy recommendations. Basically, no economist knows if current U.S. economic policies will be successful.
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