Republicans Still Enamored of Romer's Research in Favor of Tax Hikes
The House GOP's tax-cut-heavy alternative stimulus plan may have failed this week, but they've become addicted to erroneously using past research by Dr. Christina Romer, the chair of President Obama's Council of Economic Advisers.
House Minority Leader John Boehner (R-OH) and his crew have been claiming that Romer's math proves their plan creates 6.2 million jobs -- a crafty blurring of a 2007 paper by Romer and her husband, Berkeley economist Dr. David Romer. And Mitt Romney was at it again today during his speech to House Republicans at their retreat in Hot Springs, Virginia:
First, there are two ways you can put money into the economy, by spending more or by taxing less. But if it's stimulus you want, taxing less works best. That's why permanent tax cuts should be the centerpiece of the economic stimulus. Even Christine [sic] Romer, the President's own choice to lead the Council of Economic Advisors, found in her research that tax cuts are twice as effective as new spending.
Sorry, Mitt -- as Brad DeLong has pointed out, Romer's paper never found that. You're actually citing former George W. Bush economic adviser Greg Mankiw, who drew his own wacky conclusions by comparing two totally different studies, with different methodologies.
But if you want to use Christina Romer's 2007 research as a model, that's cool. Since she also found that "tax increases to reduce the deficit appear to have little negative impact on output," can we roll back the Bush tax cuts now?
















The Obama Administration can let them run with it for awhile before having Romer herself explain why they're wrong and misusing her findings.
January 30, 2009 2:40 PM | Reply | Permalink
How about we go off of Romer's numbers for 2009 instead? Seriously, 2007 numbers. There is a world of difference between 2007 and 2009, to say nothing of 2010.
Here's Romer and Bernstein's report:
http://otrans.3cdn.net/45593e8ecbd339d074_l3m6bt1te.pdf
4 million jobs just as Obama said- without having to distort the numbers. Would I like more jobs? Well sure. In any case it's good to know Obama isn't blowing smoke up our asses- unlike the GOP and their fuzzy math.
January 30, 2009 2:53 PM | Reply | Permalink
Romer is also in favor of trickle-up economics- how about we start implementing some ideas to make that happen.
The GOP couldn't complain- considering how highly they regard Romer's work.
January 30, 2009 2:56 PM | Reply | Permalink
Republicans are in the process of figuring out how to "remake the party". How does having Mitt cite non-existent facts help? This seems to me like business as usual for conservatives: make crap up, then shout about it.
Note to right-wingers: we're onto you.
January 31, 2009 6:47 AM | Reply | Permalink