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June 11, 2008

The heresies of Obama's new economic advisor

Unions and anti-globalists are unhappy with Obama's selection of Jason Furman as the campaign's chief economic advisor, according to a story in the LA Times. I don't know anything about Furman; he's said to be a "centrist" who has worked for Brookings. According to the story, Furman's putative faults are 1) He claims that Wal-Mart's low prices confer economic benefits. 2) He once talked favorably of private Social Security accounts. 3) He favors free trade but believes people hurt by globalization should be aided.

"I hope the lesson that Democratic candidates take from this is not to bash trade and call for protectionism, but instead to call for a robust safety net," Furman told an NPR interviewer last year.

This is not exactly the voice of Milton Friedman talking. Good for the Economic Policy Institute's Jared Bernstein for defending Furman.

One economist from the left-leaning Economic Policy Institute, Jared Bernstein, offered praise for Furman, saying he understood why some critics were unhappy, though he thought their fears were misplaced.

"I understand the concerns, given positions he has taken" on some issues, Bernstein said. "But I am 110% certain that it will be Barack Obama -- not Jason Furman or Robert Rubin -- who will be setting the policies for the Obama administration."

Although Furman has directed think-tank work on some controversial topics, Bernstein said he would be an effective campaign staff member. "If you look at his body of work, it's quite clear that the ultimate goal is very much the same as Obama's," he said.

Posted by Jay Hancock at 11:32 AM | | Comments (0)
        

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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