After a mini-scandal erupted over his last pick for head of the Department of Commerce (see my post here), Barack Obama is in for more controversy with his choice of Senator Judd Gregg, the New Hampshire Republican.
Gregg has developed a reputation as a one of the more fiscal conservative members of the Senate in his 16 years there. The National Taxpayers Union, an advocacy group that supports less spending and smaller government, gave Gregg a B+ in their most recent ratings.
That means Gregg has often voted against the largescale spending projects similar to those that the Obama administration is putting forward as the centerpiece of its economic agenda. For example, he has voted no on recent energy and highway bills that fiscal conservatives complained were stuffed with pork barrel projects and special interest favors. In December he voted against bailing out the Detroit auto industry, saying "we should not put tax dollars into any of these which can't survive and where those tax dollars will just be wasted." Gregg did, however, vote for Bush's bailout of the financial industry in October. But overall, Gregg's record suggests that he'd be against the Keynesian spending stimulus approach favored by Obama and the Democrats, and that he'd be more in line with the supply-side stimulus that most Republicans in Congress favor.
On the other hand, actions speak louder than words. Matt Yglesias argues that by electing to join the Obama administration, Gregg is signalling that he does not feel at home with his colleagues' opposition to Obama's agenda. I find that hard to believe given Gregg's willingness to vote against big spending bills in the past. Yes, Gregg is a more bipartisan Republican than many, but it is on non-economic issues like a constitional ban on gay marriage where he diverges from his party, not generally on issues of taxing and spending. He seems quite willing to shoot down bills sold as of critical economic importance if they spend too much.
More likely, is what Charles Krauthammer has said. Gregg saw what happened to former senator John Sununu in the last election, and the general liberal direction his state is going. The spot in Commerce gives him a chance to go out without admitting defeat.
I'll speculate in future posts what this means for the direction of Commerce--and effects on small businesses and entrepreneurs.
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