Economic Recovery Advisory Board

Economic Recovery Advisory Board
Name	Economic Recovery Advisory Board
Formation	2009
Founder	Barack Obama
Type	Advisory board
Headquarters	Washington, D.C.
Leader title	Chair
Leader name	Paul Volcker

Economic Recovery Advisory Board.

The Economic Recovery Advisory Board was a presidential advisory panel convened by Barack Obama in 2009 to mobilize expertise from the private sector, academia, and labor to address the aftermath of the Financial crisis of 2007–2008 and the Great Recession. Drawing members from firms such as Goldman Sachs, institutions such as Harvard University and Massachusetts Institute of Technology, and labor organizations like the AFL–CIO, the board aimed to advise on financial stabilization, job creation, and long-term growth strategies. Its establishment followed the passage of the American Recovery and Reinvestment Act of 2009 and paralleled initiatives such as the Council of Economic Advisers and the Financial Stability Oversight Council.

Background and Establishment

The board was created in the wake of the Lehman Brothers collapse, the Troubled Asset Relief Program, and widespread turmoil in markets including the New York Stock Exchange and the NASDAQ. Announced by Barack Obama alongside appointments drawn from corporate executives, academic economists, and public servants, the panel was intended to supplement the work of the United States Treasury Department and the Federal Reserve System. Prominent early mentions appeared in discussions involving figures associated with Treasury Secretary Timothy Geithner, the International Monetary Fund, and policy debates referencing the Dodd–Frank Wall Street Reform and Consumer Protection Act.

Mandate and Objectives

The board's remit encompassed advising on stabilization of financial institutions such as Bank of America and Citigroup, promoting recovery in sectors like automotive industry manufacturers including General Motors and Chrysler, and recommending measures to reduce unemployment reflected in Bureau of Labor Statistics reports. Objectives included formulating strategies related to fiscal measures akin to the American Recovery and Reinvestment Act of 2009, supporting credit flows reminiscent of the Term Asset-Backed Securities Loan Facility, and advising on regulatory reform comparable to provisions in Dodd–Frank Act debates. It also sought to bridge perspectives from think tanks like the Brookings Institution and the Heritage Foundation, and international counterparts such as the European Central Bank and the Bank of England.

Membership and Organization

Leadership included a chair and vice chairs drawn from high-profile appointments, prominently featuring Paul Volcker and advisers with backgrounds at Goldman Sachs, General Electric, and academic posts at Harvard University and Princeton University. Members included executives from JP Morgan Chase, entrepreneurs linked to Google, economists affiliated with Massachusetts Institute of Technology, labor leaders from AFL–CIO, and nonprofit heads associated with Council on Foreign Relations. The board's structure comprised subcommittees mirroring institutional units such as those addressing finance, labor markets, and infrastructure, and coordinated with federal entities including the Federal Deposit Insurance Corporation and the Securities and Exchange Commission.

Policy Recommendations and Initiatives

The board issued recommendations on topics intersecting with legislation like Dodd–Frank Wall Street Reform and Consumer Protection Act and programs related to American Recovery and Reinvestment Act of 2009. Proposals ranged from advocating for strengthened oversight similar to the Financial Stability Oversight Council to supporting targeted relief for sectors such as automotive industry firms General Motors and Chrysler. Suggested actions included incentives for mortgage modification akin to measures debated at the Department of Housing and Urban Development, strategies for small business credit resembling Small Business Administration programs, and investments in infrastructure projects that echoed priorities of Interstate Highway System expansion and urban transit initiatives seen in discussions with entities like the Federal Transit Administration. The board also weighed in on international coordination with the Group of Twenty (G20) and multilateral institutions such as the International Monetary Fund.

Impact and Reception

Recommendations influenced policy debates within the United States Treasury Department, the White House policy shop, and congressional deliberations involving members of the United States Congress including committees like the House Financial Services Committee. Media coverage in outlets such as The New York Times, The Washington Post, and The Wall Street Journal highlighted the board's access to private-sector knowledge and academic research from institutions like Harvard University and Massachusetts Institute of Technology. Supporters compared its role to advisory efforts seen during the Great Depression era by referencing lessons from New Deal advisors, while international observers at the European Central Bank and the Bank of England noted its potential to inform transatlantic policy coordination.

Controversies and Criticism

Critics raised concerns about ties between board members and firms implicated in the Financial crisis of 2007–2008, citing affiliations with institutions such as Goldman Sachs and JP Morgan Chase and drawing parallels to critiques of the revolving door between finance and government. Labor organizations like the AFL–CIO and progressive groups voiced skepticism akin to debates over TARP implementation, arguing for stronger consumer protections championed by advocates linked to the Consumer Financial Protection Bureau concept. Congressional scrutiny from figures on the House Financial Services Committee and public commentary in The Guardian and Bloomberg News focused on transparency, potential conflicts of interest, and the board's influence relative to statutory bodies including the Federal Reserve System and the Securities and Exchange Commission.

Category:United States economic policy