Congressional Budget Office
Douglas W. Elmendorf
Director’s Blog

Hello.  I’m Doug Elmendorf, the new director of the Congressional Budget Office.  I am honored to be appointed to this position and excited to be joining the talented and dedicated analysts here at CBO.

I want to begin by thanking Bob Sunshine, the deputy director of CBO, who has served as acting director since Peter Orszag resigned in November.  Bob has earned the admiration and appreciation of everyone at CBO for his dedicated service over many years and his sure-handed leadership during the past two months.

Perhaps I should tell you a little about me:  I have spent my career as an economist working on public policy.  After receiving my PhD at Harvard, I taught there for several years (including a course on American economic policy) and then moved to Washington.  My first job in Washington was as an analyst at CBO (and it’s great to be back).  Then, I worked in turn at the Federal Reserve Board, the White House Council of Economic Advisers, the Treasury Department, and again at the Federal Reserve.  Most recently, I was a senior fellow at the Brookings Institution.  In the course of these jobs and in my own research, I have spent a great deal of time thinking about budget policy, Social Security, Medicare, national health reform, the financial system, macroeconomic analysis and forecasting, economic volatility, and more.

More important, probably, is to remind you about the role of CBO.  Our mission is to provide information to the Congress to help it make effective budget and economic policy.  We are committed to providing information that is:

• Objective – representing not our personal opinions but the consensus and diversity of views of experts from around the country;
• Insightful – applying the best new evidence and innovative ideas as well as the lessons of experience;
• Timely – responding as quickly as possible to the needs of the Congress; and 
• Clearly presented and explained – so that policymakers and analysts understand the basis for our findings and have the opportunity to question our assumptions.

At this time of financial and economic crisis, and with many long-standing budgetary and economic challenges also demanding attention, policymakers will be making unusually difficult and consequential decisions.  We at CBO understand the responsibility we bear in this process and are looking forward to our further opportunity to assist the Congress in its efforts to enact good public policy.

By the way, many people have asked whether I intend to continue this blog, and I am happy to let you know that I will.  I hope the blog will continue to increase people’s understanding of our work at CBO.  Please keep reading.

CBO has been privileged, for the past two years, to have Peter Orszag as its Director.  During that time, he worked tirelessly to ensure that the Congress received the timely, high quality, budget and economic information and policy analysis that it needs to address the important public policy issues facing our nation.  He also expanded the agency’s focus on key areas like climate change and health care, with particular emphasis on the long-term fiscal threat posed by rising health care costs.  CBO’s work, under his leadership, was done, as always, in a scrupulously objective and nonpartisan manner. 

Peter’s broad knowledge, energy, wisdom, and dedication have been enormous assets to CBO, and the agency wishes him well as he begins the next phase of his career in public service.

Bob Sunshine, Acting Director

Today President-elect Obama announced his intention to nominate me as director of the Office of Management and Budget.  I am therefore resigning as director of CBO and this will be my final blog entry.

I have absolutely loved my time at CBO.  CBO is unique because it combines rigor, relevance, and range.  Rigor reflects the intellectual integrity of what CBO does.  Relevance speaks to the importance of what it does.  And range reflects the wide array of topics upon which CBO has something important to say – from national security to labor markets to natural resources, health care, immigration, and the list goes on and on and on.  (This blog has also been a special treat: it has provided another way of discussing CBO’s work and some of my own views about the policy world.)

Perhaps most fundamentally, CBO is a reflection of the smart and hard-working but also warm and wonderful people who work here.  (If you find it hard to believe that budget analysts and economists can be warm and wonderful, please just take my word for it.) I have worked with many outstanding people in both the public sector and the private sector, and the CBO staff is truly exceptional in its analytical capability and its devotion to the work it does.   

I will very much miss CBO, and hope that I will do it proud if I am confirmed by the Senate to assume my new post.

Peter R. Orszag

The Institute of Medicine of the National Academies of Sciences announced its new members this morning. I’m quite honored to be included in this group — along with Jose Escarce, who is on CBO’s Panel of Health Advisers. I view my inclusion as testimony to what the outstanding CBO health staff has taught me about health care and health policy, and look forward to continuing to learn from them and other innovators in the field.

While I’m on the topic of health care, I’d like to make a point related to the current turmoil in financial markets. Many observers have noted that addressing the problems in financial markets and the risks to the economy may displace health care reform on the policy agenda — and that may well be the case for some period of time. (As a small example, I know that over the past few months I have been spending less time on health care because the turmoil in financial markets and associated issues have consumed much more of our time and attention at CBO. This displacement is a matter of finite time and energy, not budgetary resources.)

Although it may not seem immediately relevant given our current difficulties, it will be crucial to address the nation’s looming fiscal gap — which is driven primarily by rising health care costs — as the economy eventually recovers from this current downturn. Indeed, our ability to address our current economic difficulties (through both financial market interventions and potential additional fiscal stimulus) would be severely impaired if investors were not so willing to invest substantial sums in Treasury securities without charging much higher interest rates. That willingness reflects the (currently accurate) view among investors that Treasury securities are extremely safe investments.

If we fail to put the nation on a sounder fiscal course over the next few decades, though, we will ultimately reach a point where investors would lose confidence and no longer be as willing to purchase Treasury debt at anything but exorbitant interest rates. If that were to occur, we would lack the kind of maneuvering room that we currently enjoy to address problems in the financial markets and the economy. So if you think the current economic crisis is serious, and it is, imagine what it would be like if we didn’t have the ability to undertake aggressive and innovative policy interventions because creditors were effectively unwilling to lend substantial additional sums to the Federal government…

CBO has a fantastic internship program — I regularly hear from former interns about what a wonderful experience they had as part of the program. In addition to our summer intern program, we also recently created a Health Policy Internship, which may be available on a summer, semester, or year-long basis depending on work needs and students’ availability.

Here’s a photo of this year’s CBO interns:

The summer internships normally last about ten weeks and include compensation based on academic level and work experience.

Interns contribute to CBO’s work in program areas such as budget and tax policy, health care, national defense, the environment, education, retirement and other income assistance, regulation, and public investment. They participate in an educational program that includes briefings on the agency’s role in the budget process, and may also participate in seminars offered by other Congressional support agencies and in the Congressional Summer Intern Lecture Series. (Our slots are unfortunately already filled for this summer!)

For more on our internships, see here.