THE MISSION ISN'T FASTIDIOUS BOOKKEEPING:

Grading Bush's Economic Team: What they've done and what they might do in a second term. (Fred Barnes, 05/18/2004, Weekly Standard)

[W]atch Josh Bolten. There are murmurings inside the Bush administration about a push next year for budget austerity to shrink the deficit. Bush has chafed at criticism from conservatives over his Medicare prescription drug benefit for the elderly and his signing of a bloated farm subsidy bill. Even Bush's Democratic opponent, Senator John Kerry, claims to be a fiscal conservative by comparison. So Bush is considering a course reversal. Both Snow and Mankiw, known as budget hawks before joining the Bush administration, can be helpful here. But Bolten is the key figure. [...]

Let's examine the five players:

Josh Bolten. He is building a powerful base at the Office of Management and Budget and could emerge as the most influential budget director since Richard Darman in the elder Bush's administration. He has hired two hard-core free market conservatives for his staff--economist J.D. Foster and Steve McMillan, a former aide to Senator Phil Gramm, an advocate of smaller government. Bolten is getting more acquainted with outside economic advisers. One ally is John Cogan of Stanford, who was twice offered the budget post and turned it down.

Gregory Mankiw. He may not speak out in public much these days, but he has influence internally. The biggest single fight was between Mankiw and Evans on protectionism. Mankiw, a tenacious free trader, is the major counterweight to Evans, who represents his constituency, the business community. On both rolling back the steel tariff and trying to force China to make currency changes, he prevailed over Evans. Mankiw believes China is better left alone on currency matters for the time being.

John Snow. He is a pleasant surprise, a perfect antidote to O'Neill. He's proved adept at dealing with finance ministers from G7 countries, notably Britain's Gordon Brown. He's done well in touting the economic recovery. He's adroitly taken the lead on issues such as tort reform, pension reform, and regulation of Fannie Mae and Freddie Mac. And he's developed a close relationship with the White House--and not just Friedman. He regularly invites Bush aides to private lunches at Treasury. Among others to come: political director Karl Rove, domestic policy adviser Harriet Miers, and lobbyist David Hobbs. But a fount of new ideas Snow is not.

You'd think Mr. Barnes at least would have figured out that President Bush is not a time-server. In the second term they'll roll the dice again on a few big issues: Social Security privatization (in keeping with the vision of an Opportunity Society), tax reform (most likely moving towards consumption taxes), and tort reform. Mr. Bush never takes his eye off of the ball. Balanced budgets aren't the ball.

Posted by Orrin Judd at May 18, 2004 9:46 PM