A Guide to the Council of Economic Advisors

What is the Council of Economic Advisors?

The Council of Economic Advisors is a Federal agency, comprised of a three economists who advise the President of the United States on economic policy. The Council of Economic Advisors is a part of the Executive Office of the President of the United States and provides much of the general economic policy for the White House and more specifically, the President of the United States. Although the Economic Advisors board is responsible for satisfying numerous roles and responsibilities, the President relies on these individuals, most notably, in regards to the preparation and delivery of the country’s annual Economic Report of the President.

Council of Economic Advisors Quick Facts

The following details outline the administration of the Council of Economic Advisors:

The Council of Economic Advisors are nominated by the President of the United States and subsequently approved by the United States Senate. The staff of the council consists of roughly 20 academic economists, plus an additional three permanent economic statisticians.

The current Chairman of the Council of Economic Advisors is Austan Goolsbee, who was formally appointed by President Barack Obama on September 10, 2010. The two other current members of the Council of Economic Advisors are Carl Shapiro (confirmed on April 14, 2011) and Katharine Abraham. Mr. Shapiro assumed office from previous chai, Christina Romer, who resigned from her post in September 2010.

The headquarters of the Council of Economic Advisors are located in the Eisenhower Executive Office Building in Washington, D.C.

History of the Council of Economic Advisors:

The Council of Economic Advisors was established by the Employment Act of 1946 to provide presidents with objective economic analysis and advice concerning the development and implementation of a number of domestic and international policy issues.

During the board’s first seven years of existence, the Council of Economic Advisors made five technical advances in policy making, including the replacement of the cyclical model for the growth model, the establishment of quantitative targets for the economy, the use of newly-constructed theories of fiscal drag and full-employment budget, as well as the recognition for greater flexibility in regards to a taxation model.

In 1978, the Council of Economic Advisors adopted the Humphrey-Hawkins Act, which required each administration of the Federal Government to move towards full employment and reasonable price stability within a specified time period. This legislation has had the effect of making the Council of Economic Advisor’s annual economic report highly political in nature, as well as highly unreliable an inaccurate regarding the standard two or five year projection period.

Government Agency of the Executive Branch:

Government agencies are defined as organizations, councils, and offices operating under the jurisdiction of the Federal Government of the United States of America; each federal agency retains specific administrative jurisdiction over specific facets latent within the operations of the United States Government.

The Council of Economic Advisors functions as a government agency under the Executive Branch of the United States government, which is comprised of 3 total branches; in addition to the Executive branch – which is responsible for the regulation and enforcement of operational legislation existing within the United States of America – there also exists the Legislative and Judicial Branches.