Outgoing Obama Adviser: Stimulus was Right to Do

By: Mark Knoller
Topics: Economy ,; Obama Administration

Christina Romer, outgoing chair of the White House Council of Economic Advisers, addresses a breakfast meeting of the Economic Club of Washington, D.C., Aug. 6, 2009.

(Credit: Getty Images)

On her last day on the job Friday as chair of President Obama's Council of Economic Advisers, Christina Romer saw the national unemployment rate inch back up to a disheartening 9.6 percent.

"I would give anything if the unemployment rate were a lot lower," Romer said in a CBS News interview in her office.

In January 2009, the month she took over at the council, the national rate was 7.6 percent. Her own council projects the unemployment rate won't be back in the mid-7-percent range until sometime in 2013.

But like the president that made her a top economic adviser, Romer is hopeful and optimistic.

She said the unemployment numbers for last month were "better than most analysts were expecting." She points to the 67,000 jobs created in the private sector, calling it "a sign the recovery is continuing," while conceding it's not happening nearly as rapidly as the White House would like.

And though the number of private sector jobs increased in August, the overall economy lost 54,000 jobs, producing the uptick in the unemployment rate.

"The reason it ticked up is that a lot of people came back into the labor force," which she said grew by more than half a million. Also, 114,000 temporary jobs at the Census Bureau came to an end in August.

"That we have to get that 9.6 percent down quickly is absolutely true and something the president thinks about every single day," Romer said.

Unemployment Rate Rises to 9.6% in August
Unemployment Gets Worse; 54,000 Jobs Lost
Unemployment Rises, but Economy Isn't Falling

She's leaving her White House post for family reasons, including a 14-year-old son who started school Thursday back in California. Romer will be returning to academia at the University of California in Berkeley where she is a professor of economics. She got her Ph.D. from M.I.T. and also taught at Princeton.

Christina Romer, Obama Economic Adviser, Resigns

During her 19 months in the White House, she has been one of several advisers helping Mr. Obama grapple with what he often says is the worst recession since the Great Depression.

The problem, she said, boils down to how to get consumer spending up, which will promote growth and hiring in the rest of the economy.

On her watch, trillions of dollars have been spent to do just that, but she doesn't think the government has spent too much.

"I think that if you look at the difficult situation that we're in, thank heavens we did the spending and the tax cuts we did in the Recovery Act," Romer said.

Since she assumed her post, the national debt grew by $2.8 trillion to $13.4 trillion. That's 92 percent of the nation's gross domestic product, the market value of the nation's output of goods and services.

"I don't want to sugar coat this; we do have a medium and long-run fiscal problem, no question about that, it's got to be dealt with," she said of record-high budget deficits and national debt. But she thinks the bailout of big banks and Wall Street firms was the right thing to do.

"It was the right decision," said Romer, "and it's what prevented a great depression."

As of this weekend, the responsibility for advising the president on massive economic problems is lifted from her shoulders as she heads back to life in academia.

"It will be wonderful to be back in Berkeley," she said, smiling broadly, "and it will certainly be different."

She says serving as head of the president's council "has been an amazing honor."

"It's been harder than anything I've done before," she said.

But Romer admits "it will certainly be nice to be back to my students and back to Berkeley."

Mark Knoller is a CBS News White House correspondent. You can read more of his posts in Hotsheet here. You can also follow him on Twitter here: http://twitter.com/markknoller.

Mark Knoller
Mark Knoller is a CBS News White House correspondent.
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by capsman727 September 18, 2010 3:49 PM EDT: After huge spending of nearly a Trillion-Dollars on the stimulis package, You shouldn't have to use a microscope to find the jobs it created.

It was nothing but a grab bag for the political groups, at taxpayers expense, that bahavior can not honestly be defended by anyone.

More loot means more looting.

The proper way would have been injecting a measured amount of stimulis released monthly, directly to areas that required action or promised growth, a controlled dispersion of funding with obvious results.

But that's not what the Administration wanted, they relied on massive spending and convoluted projects to help distract the monitoring process and funnel money to special interest groups as a reward for their support.

Does anyone really think spending a million dollars to teach African men how to was their junk will help the American economy?; Reply to this comment


by capsman727 September 18, 2010 3:21 PM EDT: And for every New job you can be sure the pay rate is much less than that of the job lost, but lets not talk about that right?

We're in a continous downward spiral, like circling-the-drain.; Reply to this comment


by rocketjl September 9, 2010 12:16 PM EDT: Maybe Obama is starting to listen to Americans and is firing his economic team.; Reply to this comment


by 1checkinout September 7, 2010 5:06 PM EDT: Berkeley???????????? What the heck do you expect?????????? What does the economics department at berkeley know what to do other than dole out food stamps and grants. Of course they think the answer to a failing private sector is more government. Now the unions are in control and the rich are filthy stinking rich. We just borrowed a bunch of money to give to the banks and insurance companies and brokerage houses and unions and auto manufacturers but then they put Madoff in jail forever for stealing from the public. So what just happened??????????? Its not stealing if its the government????????; Reply to this comment


by Joutue September 7, 2010 11:07 AM EDT: By Jontue September 7, 2010 9:56 AM

Obama is a snake oil president, he use to talk a good game at it, but not anymore. Most people know him for what he is. He's in it for himself,
and no one else.
How does he think, he will be elected again , when he's being corrupt
himself. Helping out the big corporations, banks, wars, more profits for him. Shiit on what the people need and want.
The wars for instance have eat the united states up for the last eight years. And Obama has added to it, by continuing to listen those corrupt commanders, such as patraeus, making sure he has a job. Robert Gates Sec.
of pentagon, a college professor who knows diddley squat about how to over an illegal war, let along a real one to protect us.
Obama is a real weak human being to bent to, these dishonest situations.
Where is the transparency he promised.
People ought knew bettern to elect a black president, blacks were borned to steal from people.; Reply to this comment


by cleantheDCcesspool September 6, 2010 4:11 PM EDT: What do you expect her to say? "Okay, obamao and I blew it. I know now, and I knew then, that his goal was to turn this country into a third-world ghetto"?

In January 2009, the month she took over at the council, the national rate was 7.6 percent. Her own council projects the unemployment rate won't be back in the mid-7-percent range until sometime in 2013.; Reply to this comment


by Iamfedupwiththis September 6, 2010 1:20 PM EDT: Obama Can Kiss My ass, 9.6 percent? Sound familiar? What happened to this wonderful Stimulus? I am not a republican, Believe Me. I hated the Bush administration just as much as Everyone else, but as far as this one, He is a Lying snake, Full of backroom deals, Bills that get rushed through congress, A vacation more then He should, He is on the TV everyday when he should be doing HIS JOB. You people Voted for him WHY? to get Bush outta office, Or because you felt that IF you didn't vote for the First Black president that you'd be labeled a Racist? I don't care what you label me, I don't care If you Think I am a scaremonger or what ever, I Am AN AMERICAN. With a Deep love for my country, and When I see ANYBODY trying to change How America is Ran, I will do what ever it is in my power to stop that. Have you ever Wondered why The American Government couldn't give the PUBLIC some of that $900 billion? Think of how many people there are in THE WORLD let alone America. They could have Easily gave EVERY AMERICAN A BILLION DOLLARS AND STILL Would have had 3/4 the original amount. Do you Realize HOW Much Money would Have POORED in to the Economy? WE would have been out of that rescission in as Little as a month. People would have been spending left and right, Buying new cars, OH THERE Goes the Auto Industry out of debt. BUT NO THEY DIDN't. All it was, Was one big Pay back to every body who supported Obama. It went to places that we don't even know. It went over seas, it went to Wall street, It went to companies who SCREW US EVERY CHANCE THEY GET. Seriously People Think about what you Could have done with a billion dollars. Paid of every ounce of Debt, Bought a car in full, bought a new house in full, could have got your Kids a Full College degree paid IN FULL. DO YOU GUYS THINK ABOUT THIS STUFF OR DO YOU JUST SWALLOW EVERYTHING THIS MAN SELLS TO YOU. You ever wonder Why they sold those pens from the health care bill, Or why did he need what was it 28 pens? He is MONEY HUNGRY. POWER HUNGRY. COME ON AMERICA, I AM 18 Years old And i could have Got us out of Debt quicker then The president. STOP IMPORTING GOODS AND START EXPORTING YOU IDIOTS. How can America ever expect to pay off the debt if we ALWAYS BUY EVERYTHING OFF OF OTHER COUNTRIES? Do me a favor, Next time you are in WAL MART OR ANYWHERE for that matter, See how many things you can find that has been made in China. EVERY DOLLAR Bill you have to your Name is fake, Worth Nothing. If our government is supposed to back up these dollars bills with the promise that this Dollar bill has some worth of gold somewhere, How can They when every ounce of Gold they have is debt to other countries. When China Realizes that America is throwing around Monopoly money, They could shut of all supply to us. Now think about how bare every single store would be. Stop Importing, Start Exporting like we used to. Yeah it'll cost more to make here, BUT EVERY BODY WOULD HAVE A JOB TO WERE THEY COULD AFFORD IT. It is basic economic policies. We start selling our OWN GOODS, we can Start making our OWN MONEY. SIMPLE SIMPLE SIMPLE. THINK ABOUT IT, don't just defend your 'Savior' Obama. He is not In it for America, He is in it For the perks, just like every president since FDR. Its Fame, Its Fortune, Its TV time, Its Vacations, Its POWER. Please please please, For the sake of Our kids, and Their kids, Get this Man out Of office, And actually PICK a candidate that is worth more then A pretty picture. Values people, STAND UP FOR THEM. Do you actually want a nanny state? Do you not Feel like everyone in power treats the American Public like retarded little four year olds who Just don't know whats good for them, Or Do you want them To treat us Like THEY WORK FOR US?!?!?!?!; Reply to this comment


by eastbay75 September 6, 2010 10:01 AM EDT: If it's the right thing to do, why you quit your job?
Did they let you go because the stimulus does not work. The right thing to do for what reason?; Reply to this comment


by RobAla September 6, 2010 9:03 AM EDT: Talking about denial... and the President wants another stimulus.

We have a record breaking $1.47 trillion deficit for the year already, because of the bogus stimulus packages, bailouts, and the expansion of the federal government. This guy has to stop. He has to do things that will unleash the creation of jobs in the private sector. Congress has to stop him from adding more to the deficit with another stimulus package.

The main thing that is killing the jobs market right now is the stupid health care bill. Several companies are sitting on cash, instead of hiring people, because of the additional cost to their businesses they see coming from the health care bill. This stupid bill has to be repealed. The entire bill has to repealed, not just tweaked. The federal government should be reducing the burden on business if jobs are to be created. A stimulus is only a short term band aid approach that will leave the nation in more debt. Call on Congress to say "no" to this politically based gimmick by the President. Democrats are in trouble politically, due to more than a year and a half of bungling. This stimulus is a political gimmick to try to make the nation think Democrats are creating jobs. We have to change course, with a federal government which is reduced to a manageable size. This has to stop.; Reply to this comment

by mb91764 September 5, 2010 12:51 PM EDT

Why do'nt you people get it through hard heads,this nations is rule by the rich and powerful.This women is just a talking head for Obama,she cares less what going on in this nations.She will be collecting a large pay check for the rest of her life,for doing nothing.Anybody read a old book call"1984"?Were everthing is twisted,bad is good,etc.we are living with a government thats speck this way to the average persons.I long ago quit beliveing anything i hear out of washington.Grew up watching nixon,reagan,80's S&L scandal,cliton did not have sex,Bush WMD in Iraq.And now saving the big banksand giving them bonus,we had no choice,we had to do it.We whine about jobsthat will never come back,they are inChina and Mexico now.Thanks to that big bailoutthey move them overseas.People will argue what i say,but that is my right and yours in this nations.I feel sick that anyone with a brain can believe what there goverment tells them is true.Believe in yourself,look at both sides of a issue,take any word from a goverment officals with doubt.We were one time a great nations,now we are slowly falling in a state of greed,immoral,dog eat dog,pool of crap.I'm 47 ,self empoloyed,own my house and cars,keep my money at home in safe now,can you really truat somebody else with it now days.Oh yea, i built my house with my own two hands,why give somebody a big profit for nohing.Sorry, i got off the issue here.Really we are running short on commcn sense in america.Quit putting your trust in something said because they have a college degree,it doesn't make that much smarter if you notice lateiy.They say the rich arethe ones that make jobs?i know a few millionre were i live,they are the most selfesh,penny-pinching,greeding people iknow.Always wanting something for nothing.Only way out of this mess we are in is for the middle class to fight back against the power that lord over us.Lets vote the whole bunch out in congress,vote for a differet partythen the two we have to choice from now.No more big company bailouts,let them fail just like small companys have been doing.Just stop believeing that your local congressman is trying do right for you.To him its all about the money,how come you think they got so rich inthe first places.Do you think they spend millions to get elected to a office that pays only in the thousandto help the average person?Then you can believe Obama walks on water.I could go on but most of you could care less,i love my nation but its to far gone to turn back.

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by propitiation September 5, 2010 6:48 PM EDT: mb,

Actually, I think there are a great number of Americans that agree with almost everything that you have written.