Gene Sperling Back At National Economic Council

Joy-Ann Reid and Benjamin Kirby should be forewarned before going into cardiac arrest. I am going to offer President Barack Obama praise.

Obama's selection of Gene Sperling as director of the National Economic Council maybe the best appointment he has made. The NEC was created by President Bill Clinton's executive order. Much like President Richard Nixon Office of Management and Budget to be an in-house think tank and deal with the intricacies of the massive federal budget. Clinton created the NEC to be an economic think tank. Economic policy heavyweights Robert Rubin and Laura Tyson. Sterling was Tyson's replacement under Clinton.

To shows what happens when a President doesn't take the NEC seriously, George W. Bush appointed Lawrence Lindsey. Former Treasury Sec. Paul O'Neill documented Lindsey's incompetence in Ron Suskind's book. "The Price of Loyalty." Lindsey actually believes in the debunked theory of supply side economics.

Obama correctly cites Sterling's previous experience and success as NEC director. Sterling is also rather progressive. There are not enough progressive voices in the Obama administration. Sterling will have credibility holding a cabinet level position.

Who Will Replace Summers?

Excuse me if I don't get excited about Anne Mulcahy replacing Lawrence Summers as director of the National Economics Council. The business community feels more comfortable with Mulcahy because she is the former CEO of Xerox Corp. Mulcahy has also served on the Board of Directors of the Washington Post, Johnson & Johnson, and Citigroup. She certainly has an impressive business resume. However, there are bankers and economists who have a better nuts and bolts understanding of the economy.

President Barack Obama is not going to select a progressive. Laura Tyson is on the shortlist. Tyson is an economic realist. In Bob Woodward's book "The Agenda," Tyson was not afraid to bring up bad news in the Clinton White House. Obama doesn't another NEC director more conserned with access and politics than good policy. Tyson would be a good fit for the job. The question is does Obama want to hear what Tyson has to say.

Other candidates on the shortlist Diana Farrell and Ann Fudge.

Update: Brad Delong proposes that Tyson become Treasury Secretary and Tim Geithner become the director of the NEC. Delong also gives Summers underserved praise. Summers is Delong's mentor.