Clinton Makes Good Choice in Laura Tyson

Laura D’Andrea Tyson’s appointment as a chair of the President’s Council of Economic Advisers is an excellent choice at this juncture of the U.S. economy.

Prof. David M. Gordon’s analysis in The Times of Sunday, Jan. 24, deserves a lot of credit, as he points out her strengths in many fields that are badly needed to shape a strong domestic and international economic policy for the Clinton Administration. Sour grapes describes many of her critics.

Let us look into the issues that Prof. Gordon discussed in the article and see if Tyson’s critics (described as leading economists) are justified or have missed the boat.

First, her critics say Tyson lacks analytical skills and that the appointment of Allan Blinder to the council was a relief to those critics. Since when does the chief economic adviser have to be analytical in order to qualify? The fact is that such a chair would have many analysts to tackle the various economic issues.

Second, that Tyson uses one type of mathematical modeling instead of the one preferred by traditional economists. It is a known fact that economic modeling forecasts fall short of the judgmental forecast that is based on experience. For a few thousand dollars, you can have access to any mathematical model. So what is all the fuss about?

Third, that Tyson does not blindly subscribe to the sacred cow label of “free trade.” It is about time the United States has an economic policy adviser who is more pragmatic and less dogmatic when it comes to international trade. A “free trade” policy without regard to “fair trade” enforcement, which has been promoted by lobbyists of foreign countries and was adopted by the Reagan-Bush administrations, has cost the United States $1 trillion in transfer of wealth to Japan, Germany, Taiwan and many other countries, and also was responsible for the transfer of no less than 2 million jobs out of the U.S. economy during the last decade.

Fourth, that Tyson is relatively unknown and does not rank highly among the mainstream of the economic profession. This is nonsense and prejudicial against young and non-conventional professionals.

I admit that, as an economist, I did not know much about Laura Tyson or her work. However, the more I read about her work and her philosophy in economics, the more I think she is an outstanding choice by President Clinton.

RAYMOND JALLOW

Los Angeles

The writer is board chairman of Jallow International Ltd., a Los Angeles economic consulting firm.