Bringing Economics into Policy Discussions: Reflections on the Office of the Chief Economist

Abstract

A major function of the chief economist at the U.S. Department of Labor (DOL) was to bring economics into social policy discussions in a way that had seldom been done. Most policy makers within departments and agencies at the political appointee level have a tremendous understanding of how to move legislation through Capitol Hill, but few have much economics expertise. The usual result: little discussion of economic constraints, opportunity costs, and implementation issues, and lots of discussion of how to best maneuver a particular initiative. The chief economist’s office helped offset that tendency.The office also improved policy through interaction with the administration’s National Economic Council (NEC). The NEC, which coordinated economic policy, drew on economic expertise from throughout the administration. For example, prior to a release of economic data, a conference call would be moderated by the NEC; the call included key administration economic personnel, including those in the Labor and Commerce departments. It was an opportunity for the economists to share insights on trends and quirks in the data. Calls also led to discussions about potential opposition to initiatives, implementation challenges, and ways agencies might cooperate. The NECsponsored dialogues gave added strength to the work of core economic policy agencies such as the Council of Economic Advisers and the Treasury Department.Although politically minded administration officials were sometimes influenced by their interaction with me and other academic “nerds” in senior policy positions, the academics were changed as well—in large part for the better. We now have a deeper understanding of where key policy debates lie, along with how important it is to translate economic expertise and bring it into the political world.