... and ask for two milkshakes. The bartender gives them each a 50-page contract, explaining that they can borrow the cost of the milkshake at a low interest rate that will increase with each sip, but don't worry -- they can refinance later for a fee. "These incentives are terrible!" Goolsbee says, and walks out. "I'll take mine plain vanilla," Warren says.
Seriously, though, the appointment of economist Austan Goolsbee to replace Christina Romer as the chair of the Council of Economic Advisers is today's "big" news, but in terms of actual governing change, don't expect to see too much; Goolsbee's appointment is less about changing policy than elevating a tenacious defender of the administration's current course. Noam Scheiber has the best backgrounder on Goolsbee, who's been an Obama adviser since his Senate days.
Scheiber also argues that because the president now has no top-level female economic officials in the White House, he will nominate Elizabeth Warren to lead the new Consumer Financial Protection Bureau. While I hope he's right, I am doubtful of the signalling here -- if Obama is worried about highlighting female contributions to economic policy, he can focus on Janet Yellen, his nominee to be vice chair of the Federal Reserve. At Obama's press conference after announcing Goolsbee's new job, he was asked about Warren and repeated the long-standing line that she has been consulted but no announcements are forthcoming.
Warren remains the top candidate for the job, and the fact that her appointment wasn't announced today could have as much to do with giving the announcement maximum media impact (i.e. not right before the anniversary of 9/11 and NFL kick-off weekend) as with some kind of hesitancy toward appointing her. Obama still has the opportunity to recess-appoint Warren over the weekend (Congress comes back to session this Monday); even better, he could announce the pick in September, and if she faces serious opposition, recess-appoint her in October when Congress returns to the campaigns, which might be the best timing of all.
-- Tim Fernholz