A Look Into Obama's Coming Economic Policy

If Barack Obama's newly named senior economic adviser is to be heard, expect that the president elect will aggressively trade short-term deficit increases for longer-term actions that create jobs and fix national problems.

Former Harvard President Lawrence Summers was recently named director of the National Economic Council for the incoming administration, and is likely to be highly influential.

So what will he advise? You can read it for yourself, in a September Op-Ed Summers penned for FT.com., written more than a month before the election. In it he supports:

  • More, not less government investment in healthcare, energy and education.
  • Tax relief to enable families to keep spending.
  • Higher deficts, although with a concrete plan to reduce them.
  • Planning to ensure the US is financially viable in the long run by addressing issues of entitlements and fiscal sustainability.
"The best measures," Summers concludes, "would be those that represent short-run investments that will pay back to the government over time or those that are packaged with longer-term actions to improve the budget. Examples would include investments in healthcare restructuring or steps to enable states and localities to accelerate, or at least not slow down, their investments."