The Blast

Levitt and Mankiw join the Obama Administration
April 1, 2009, 7:27 am
Filed under: economics

This could be cool. Another landmark economist from the ‘Chicago School of Economics’ (in addition to Goolsbee), and a highly respected conservative economist from Harvard. Unfortunately, I am ever suspicious that this is an elaborate April Fool’s Joke.

For example. A sliver of the above link when discussing Levitt:

When we finally reached Levitt, he was at McDonalds headquarters at Oak Brook, IL.  Some of their franchises have been cheating by hiding Big Mac revenues that they have to share with McDonalds.  Levitt has found a way to benchmark performance that can reveal suspiciously underperforming locations.  “This is what economists call ‘moral hazard,’ ” Levitt said over a carton Chicken McNuggets. “Look, economics is not rocket science.  Think of the US Government as like McDonalds, a bank and a toxic asset are just like a franchisee and a Big Mac.  Once you see it that way, its simple.”

And discussing Mankiw:

There is another factor at play.  True to predictions, Larry Summers has proved hard to control within the West Wing.  Orzag and Geithner have not been able to do it.   In any case, they are fantastically busy trying to implement Obama’s healthcare policies and manage the financial crisis.  Furman and Goolsbee , who were both students in Cambridge, are in awe of their former teacher and find it hard to contradict him.  Summers and Mankiw respect each other, or at least Mankiw respects Summers!  Obama has watched Biden and Clinton argue over Afghanistan policy.  As a lawyer, Obama has always favored the “team of rivals” approach and wants to replicate it in economic policy.

Joke or no joke, did anyone really think that they could contain The Larry Summers!!! I think not! Rawr!


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