BIDEN TRANSITION | Economic Team (Guest Post by Dana Chasin)

The following guest post, on the President-Elect's economic appointments so far, is by Dana Chasin of 20/20 Vision in Washington, D.C.  A fuller list of senior Biden appointees, and some contenders for unfilled positions, may be found here. The list is regularly updated.  

Biden’s intent to gather a progressive coalition, perhaps the most diverse in history, is manifest. Janet Yellen was appointed last week as Treasury Secretary. Yellen would be the first woman to fill this position, if she is confirmed. 

Now Biden has chosen to fill out much of his economic team with five talented, experienced policy advisors and researchers. Several of them would also be historic firsts in their roles. However, confirmation struggles loom. 

Neera Tanden (OMB Director). If confirmed, Neera Tanden would be the first woman of color to head the Office of Management and Budget (OMB) in history. Tanden, a longtime Clinton ally and mainstay on cable news, helped found the left-leaning Center for American Progress in 2003 and is its current Chief Operating Officer. Her policy specialty is healthcare, having successfully helped draft the Affordable Care Act and shepherd it through Congress. More recently, her focus has been on the COVID pandemic and its economic fallout. New Jersey Governor Phil Murphy named Tanden to the state’s Restart and Recovery Commission this past April. OMB is a giant executive branch agency, in charge of evaluating performance of federal programs and policies, ensuring they align with the White House’s budget and priorities. Tanden is perhaps the most controversial of nominees put forward by the Biden team so far, never mincing words while critiquing both the right and far left. Her confirmation is no sure thing, and the upcoming Senate fight will be nothing if not engaging; we wish her the best. 

Wally Adeyemo (Deputy Treasury Secretary). Biden has announced his intention to nominate Obama Foundation president and economist Adewale “Wally” Adeyemo to be deputy secretary of the Treasury Department. Under President Obama, Adeyemo served as deputy director of the National Economic Council, assistant secretary for International Markets and Development at Treasury (as well as deputy chief of staff of the Treasury), and chief of staff of the newly formed Consumer Financial Protection Bureau under the leadership of Elizabeth Warren. When Adeyemo left the White House in 2016, he signed on as a senior adviser at the investment firm BlackRock, as well as at the Center for Strategic and International Studies. Adeyemo, a 39-year old Nigerian-born attorney with impeccable academic credentials to match his wealth of expertise, will likely sail through the Senate confirmation and become the first African American Deputy Secretary of the Treasury. 

Cecilia Rouse (Chair, Council of Economic Advisors). The Council of Economic Advisors (CEA) is a three-person team tasked with providing data and advice to the president on domestic and international economic matters. The agency produces the annual Economic Report of the President, which assesses the state of the economy and outlines economic goals for the coming year. Cecilia Rouse would be the fourth woman and first Black woman to serve as Chair of the CEA. Currently dean of the Princeton School of Public and International Affairs, Rouse is well-known for her work on labor economics, education, and workplace discrimination. In a renowned paper with Claudia Goldin, Rouse showed that employers were more likely to hire women applicants when the applicants were judged "blind", i.e., without knowledge of the applicants’ genders. During the Clinton presidency, Rouse served on the National Economic Council. Later, as a member of President Obama’s CEA, she advocated for increased fiscal stimulus in the wake of the 2008 recession. While her past confirmation to the CEA occurred in 2009 when Democrats controlled the Senate, Rouse’s previous experience in presidential administrations should smooth her path to confirmation, although conservative Republican Senators are sure to oppose her nomination. 

Jared Bernstein (Member, CEA). Biden has also nominated the other members of his CEA. Jared Bernstein, currently a senior fellow at the Center on Budget and Policy Priorities, a left-leaning fiscal policy think tank, has been a prominent economic advisor for Biden for years. Bernstein was chief economist to Vice President Biden from 2009-2016 and played a major role in crafting the $800 billion economic rescue package in 2009. During the campaign, he continued to serve as one of Biden’s top economic advisors. A longtime defender of the working and middle class and advisor to 20/20 Vision, Bernstein is also a known critic of free trade agreements, and he will refocus U.S. trade policy to benefit workers and balance trade relations. Further, throughout the pandemic, Bernstein has advocated for increased deficit spending, particularly on enhanced unemployment benefits. Bernstein’s nomination is a concrete indication of Biden’s commitment to smart, focused policymaking. 

Heather Boushey (Member, CEA). Long-time advisor to President-elect Biden, Heather Boushey will serve as another member of Biden’s CEA. Boushey is currently the president and chief executive of the Washington Center for Equitable Growth, a nonprofit she co-founded in 2013. Boushey is best known for her 2019 book, Unbound, in which she identifies the ways that economic inequality undermines economic growth. During the COVID-19 crisis, Boushey has advocated for automatic stabilizers — both for unemployment benefits and state and local aid. Prior to heading the Washington Center, Boushey served as an economist for the Center for American Progress, the Joint Economic Committee, the Center for Economic and Policy Research, and the Economic Policy Institute. Boushey would have served as Chief Economist for Hillary Clinton’s 2016 transition team. At the CEA, Boushey will continue to push for policies that will facilitate an inclusive post-COVID economic recovery. 

Summary.  In strong contrast to the previous administration, Biden’s economic team is characterized by expertise, diversity, and inclusive economic policies. While Biden was perhaps the most moderate of the Democratic presidential candidates during the primary, his nominees are committed to addressing economic inequality and protecting the most vulnerable Americans. Their confirmations will also be among the first tests of Mitch McConnell’s obstructiveness should Republicans keep control of the Senate. If they are confirmed, come 2021, we can expect Biden’s White House to put forward a large relief and stimulus package, which will be crucial to keeping small businesses, states, and families — that is, the economy — afloat until the virus is under control.

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NYC | In the Eye of the Storm, OMB's Mark Page

Ross Sandler (L) and Mark Page. All photos by JT Marlin. 

NY State's Gov. David Paterson has  agreed with legislative leaders to close a NY State budget gap for FY 2009 of $1.6 billion.

But now a monster gap of $13 billion is awaiting the Governor in ten days.

In some ways, NY City is better off than NY State, because the biggest part of NYC's tax base is the property tax.

NYC's annual property assessments are averaged over five years, creating a surge of revenue as the averages keep rising for two or three years after the beginning of a decline in property values.

When recovery starts, of course, NYC doesn't get as much revenue as it would if assessments were recognized more rapidly, but then the income-and-sales taxes are bouncing up and the City doesn't need the money as much.

However, when NY State catches a cold, NYC gets pneumonia because NYC depends on the State for aid.

Half the State’s revenues come from NYC, but something less than half comes back to NYC in aid. So a gap of $13 billion at the State level without raising taxes might mean $6 billion less aid for NY City.

That's another thorn in the side of Mark Page, the man who has been a steady hand on NYC's fiscal wheel as director of NYC’s Office of Management and Budget since Mayor Bloomberg took office in 2002. He was introduced not long ago by Mr. Ross Sandler of the New York Law School.

Mr. Page is a graduate of Harvard College and the NYU Law School and his responsibilities as OMB Director include

developing and implementing the city’s budget, monitoring and forecasting the revenues and expenses of the city, analyzing the economy, evaluating agency management improvement initiatives, and issuing bonds in the public capital markets in conjunction with the New York City comptroller.

Mr. Page joined OMB in 1978 as deputy counsel, was named general counsel in 1980 and had the title of deputy director added in 1982. He is reputed to hate giving speeches and is hard to locate at a podium other than responding to questions from members of the NY City Council. He's actually a pleasure to listen to as he speaks in perfectly formed sentences without any apparent reference to notes.

I had a chance to listen to him at New York Law School and took some photos and notes. I started reporting below what Mr. Page said, but midway I received word that a videotape of his comments had been posted online, at which point I decided I would stop typing up my notes. I have posted the link to the NYLS videotape at the end.

NYC OMB Director Mark Page.

REMARKS OF MR. MARK PAGE, DIRECTOR, NYC OMB

The banking industry has been engaged in in an extended use of vapors. Washington is engaged in a dramatic wielding of stimulus dollars.

Here in New York City, we are engaged in questions about the frequency of garbage collection, the number of workers in the parks during the summer, and high school class size, the daily oatmeal of government.

Government budgeting is not that complicated. It has to do with handling the fact that we want to get more services, like more frequent garbage collection, and pay less taxes... and preferably eliminate taxes.

Henry Stern.

It’s easy to do more and tax less when you’re getting more money out of existing tax rates. Economic expansion gives us more.

But then when you get in the inevitable reciprocal cycle, a given tax structure gives you less money to spend on services. 

As I have heard it said very loudly at MTA meetings, in a downturn you are likely to have to tax more for less services. This is not a very seductive premise, particularly as government is political.

To make this point, we have divided our spending into controllable and uncontrollable costs. In government there are some things that are very difficult to avoid paying for. For an individual, the analogy might be with mortgage payments.

Jonathan Gelber (L) and Roger Herz.

For New York City government, the stuff you are really stuck with paying starts with debt service and pension benefits.

We’ve done a lot over the last seven years with bringing the East River and Harlem River bridges up to standard. We’ve spent a lot on building and maintaining schools and roads. And we have the debt to show for it.

To hear how Mr. Page's speech proceeded, with questions from audience members like Jonathan Gelber, Roger Herz and Henry Stern (all shown in photos) go to the videotape here.