Christina RomerChristina Romer, a Berkeley economics professor, is reportedly leaving the White House as chair of President Barack Obama's Council of Economic Advisers, according to the, which cites an anonymous source. Is she taking the blame for policies hatched by director of the National Economic Council, Larry Summers -- policies that she disagrees with?

A source told NationalJournal: "She has been frustrated. She doesn't feel that she has a direct line to the President. She would be giving different advice than Larry Summers who does have a direct line to the President."

Romer could be the fall guy for the White House's forecast that unemployment would stay below 8% -- jobless rates blew through the projection to peak at 10.2% in October 2009 and now sit at 9.5%. Whether Romer is responsible for this forecast or not, her resignation would signal that she has taken the blame.

The NationalJournal quotes Bert Ely, a banking consultant: "You have to wonder why Summers isn't the one that should be taking the fall. But Larry is a pretty good bureaucratic infighter."

Far From a Fix

With a Labor Department jobs report coming out tomorrow -- experts predict a loss of 87,000 nonfarm payroll jobs for July 2010 and a boost to 9.6% in the unemployment rate -- the rumor of Romer's resignation could signal that tomorrow's numbers are going to be worse than expected. Regardless, Romer's departure will likely not go far enough to fix the policies that have been keeping the jobless rate so high.

Given Summers' direct line to the President, it's doubtful that Romer's departure will unleash a dramatic improvement in the administration's job-creation strategy.

Increase your money and finance knowledge from home

Economics 101

Intro to economics. But fun.

View Course »

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

Did you hear Obama on TV today? He talked about a small business that is doing great, hiring employees, etc. Well that company is the company that got the contract to make the “Putting America To Work. Project Funded By The American Recovery and Reinvestment Act". You know the signs that our tax dollars are paying $10,000 a sign to make - check out this link to learn more about this story -

August 06 2010 at 4:24 PM Report abuse rate up rate down Reply

As a small bissness owner let me say i pay tax on my income plus what profit we make the profit is paid as personal income so i pay whats on paper not in my pocket.When the tax rate goes up i will cut back on my work force just do enough
to pay the bills my presonal income will stay the same without paying the higher tax rate bottom line i won't work to give half of it to the goverment.

August 06 2010 at 1:36 PM Report abuse -1 rate up rate down Reply

Romer's ever-jolly facade when delivering her overly-optimistic slant (all the while glossing over terrible economic news) made her lose credibility for over a year now. She always seems to be the last one to realize that the plan is not working and the future is bleak. She should have been more honest with us and with herself. Good riddance. I just hope Obama doesn't raise taxes during this recession. That would be the final nail in the economic coffin.

August 06 2010 at 1:04 PM Report abuse -1 rate up rate down Reply

Let's hope Romer is out. She struck me as a dimwit.

August 06 2010 at 12:11 PM Report abuse +1 rate up rate down Reply

Have you ever been to college and been forced to take economics classes? I have, and I can tell you from experience that the people teaching theoretical economics
have about as much practical business sense as Obama does-none! Appointments such as this one are exactly what I would expect from a socialist. It's a marriage made in Democrat-socialist heaven: a President with no experience in business, running the largest business in the world (U S Government)with a staff of college professors like Kagan and Romer who have little or no pragmatic experience in their fields (but are willing to make policy for us). Perfect!

August 06 2010 at 12:07 PM Report abuse +3 rate up rate down Reply
Frank S. Pedigo

Everybody keeps saying we need to lower taxes to increase jobs .Well Bush did it for 8 years and see what it got us ? If anything we need to end FREE TRADE AGREEMENTS !!!!!!!!!! These have our jobs going overseas at an alarming rate but everyone only seeing the smoke and mirrors put up by big business and the Republicans .When Eisenhower was president the taxrate on the upper 5% was over 60% and the economy was strong and Americans were working . When Clinton was in office we only had 1 freetrade agreement NAFTA after Bush left office we have almost 30 and see wheree are jobs have gone . China ships here free of tariffs and charges 40% on our goods sent there . India ships here free of tariffs and charges 50% on our goods sent there . wake up fools ,it isnt lowering taxes that will help .That only puts more money in the pockets of CEOs who spend it overseas and dont reinvest in America .Also we are the major stockhoders in General Motors but they are building new plants in China but only reopening 1 here . This isnt right we should all demand that GM build new plants here and close plants in China,Mexico and Korea .

August 06 2010 at 11:20 AM Report abuse +2 rate up rate down Reply

I blame Obama for all of the messes being created. He has to sign off on them.

August 06 2010 at 11:12 AM Report abuse +8 rate up rate down Reply
1 reply to spotapony's comment

I find it hard to blame Obama.THe man isn't smart enough to make an informed decision. We no nothing of his college background. No one has ever seen any of his written opinions. For all we know, like so many others they, he may just be mediocre. He has never had a job that required any management skills. He has never had to deal with a budget. If he needed more money you went out and got "donations". Now he has a whole department that can print him more money regardless the circumstances.

August 06 2010 at 11:41 AM Report abuse rate up rate down Reply

"And another one bites the dust" I agree with locyod. Romer is not to be blamed. She has not done anything wrong. Except to NOT agree with policies that Sommers and Obama want in place. I commend her for leaving and not putting up with or doing What She Knows Is Wrong. Unfortunately she is not the only one who has left for those reasons. We as a Country, as a Nation NEED those people. WE NEED for them to Stand Up and Not Be Silent !!
The Country TOLD Congress,House of Representatives and the President... WE DO NOT WANT THE HEALTH CARE REFORM BILL. PERIOD !! Did they listen NO! Obama is a spoiled child, wants everything his way and will do whatever it takes to get it.
Come November EVERYONE Must Vote remove all those who have done Obama's bidding !! Put People in Office who will listen to the American People. Who will not be intimadated or bullied into doing what they and the people they represent. Into doing what they must do.......

August 06 2010 at 11:09 AM Report abuse +10 rate up rate down Reply

Well looks like obama is tossing another one under the bus. This is what America gets for electing a wet behind the ears president with NO experience at anything other than looking at himself in the mirror and letting that head of his swell up.

August 06 2010 at 11:09 AM Report abuse +6 rate up rate down Reply

Why doesn't Obama resign, he's the one that failed! His cabinet are only advisors, but he's the one with the final say and the one who institutes policy. He's the one who picked the "most qualified" available. What do you expect with a cabinet of tax cheats?

August 06 2010 at 11:07 AM Report abuse +7 rate up rate down Reply
2 replies to HERBSTNEBEL2SS's comment

Sorry, if we had to endure eight years of Bush destoying the country, then Obama desrves more than two years to clean up his mess!

August 06 2010 at 11:21 AM Report abuse -6 rate up rate down Reply

dolfantfc. Your eight years of Bush were finished off with a Congress that was a Democratic majority. The Democrats have had control since 2006. The economy has gotten worse. Since the Democrats have had control for 4 years now, it should be obvious that they don't have a clue how to improve this mess. Obama blames everyone else. You need to get off that worn out phase of blaming Bush. It's getting more and more obvious that Obama doesn't have a clue on how to get things back on track. Spending the USA in to bankruptcy isn't working. It sure would be nice to see the government Pay as you go. Oh wait, that was another promise this administration didn't keep.

August 06 2010 at 11:37 AM Report abuse +5 rate up rate down Reply