Speaking at her farewell luncheon, the departing Chair of the President's Council of Economic Advisors didn't mince words. Ms. Romer made four salient points:
- She had no idea how bad the economic collapse would be.
- She still doesn't understand exactly why it was so bad.
- The response to the collapse was inadequate.
- She doesn't have much of an idea about how to fix things.
Regarding the first, few if any economists did. This was a direct result of their flawed theories about the economy. The same explanation applies to point #2. As for #3, what is the definition of "adequate"? No explanation there.
And lastly, her admission about having no idea on how to "fix" things, is a delightfully candid departure from the smoke and mirrors the Obama administration has been serving up since before Inauguration Day.