Title: Have Economists Lost Their Cachet in Washington?
Introduction:
The role of economists in Washington has been a subject of interest, particularly in the context of their evolving influence in policy-making circles. This article explores the shift in perception and demand for economists in the nation’s capital and delves into the historical context that has shaped this dynamic.
Historical Context:
After World War II, the Employment Act of 1946 was signed into law, establishing the White House Council of Economic Advisers (CEA). This marked a significant moment for economists, as they gained a formal platform to advise the President of the United States. The CEA has been in existence for over 75 years, providing economic analysis and counsel to the nation’s leaders.
Initial Reception:
Despite the creation of the CEA, the initial reception from the political establishment was lukewarm. President Harry S. Truman, for example, was not particularly keen on engaging with economists. His appointees to the CEA, which included two Ph.D.-trained economists and a lawyer, found that Truman was more comfortable with business and political figures, including lawyers, than with economists.
Economists’ Influence:
In the 1940s and 1950s, economists did begin to make inroads into policy discussions, but their influence was limited. The Federal Reserve at that time was led by non-economists, and economists working within it were often kept out of the public eye.
Shift in Demand:
The article suggests that economists may now be facing lower demand in Washington. This shift could be attributed to several factors, including the evolving nature of policy-making and the increasing complexity of economic issues.
Who’s Taking Their Place?
With the apparent waning influence of economists, it’s worth considering who is stepping into the void. Are other experts, such as technocrats or political strategists, gaining prominence in policy discussions?
Conclusion:
The question of whether economists have gone out of fashion in Washington is complex and multifaceted. While their formal role in the CEA and their historical impact on economic policy are undeniable, the changing landscape of policy-making may suggest a shift in the perceived value of economists’ expertise. Understanding this shift is crucial for both the economics profession and for the policymakers who rely on their insights.
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