Our country faces massive problems: a recession that is deepening; unemployment that is soaring; and business failures and foreclosures that are occurring at a rate not seen since the thirties. As a result, the federal government is racking up deficits and accumulating debt that will take a generation of sustained effort to overcome.

During a time when we are plagued with problems, we can at least be thankful that the Obama Administration will have Peter Orszag, a steady hand at the helm of OMB.  Although Peter is young, he has experience beyond his years, a keen intelligence, and a breadth of knowledge about public policy. Over the last several years, he has trained his focus on two of the most vexing issues that overhang our future:  fixing health care and securing retirement.

While at CBO, Peter expanded its capacity for health care policy analysis.  He beefed up the health care staff and created a new panel of health advisers to bring together some of the nation=s leading policy experts to inform CBO=s work. The investments he made have paid off.  CBO=s efforts have improved our understanding of health care and the myriad proposals for reform. CBO=s work has helped illuminate why health care spending is growing faster than the overall economy, and why it may be possible to reduce that growth without harming outcomes by spotlighting medical spending that is of limited or no health benefit.

Before his work in the economics of health care, Peter authored what may be the best treatise yet on Social Security.  He analyzed its long-term problems, and then laid out a path to solvency that included better benefits for those needing them most.

Beyond his mastery of economic issues, Dr. Orszag has a great gift for explaining complex matters simply and succinctly.  This talent has made him an invaluable resource on Capitol Hill and will stand him in good stead at OMB.

Because of his clarity and insight, long before he became Director of CBO, Dr. Orszag was a frequent witness at our committee. As director of the Hamilton Project, he was searching for innovative ways to promote economic growth. These dwelt on ways to strengthen education, ways to help families cope with economic change, and ways to make government more effective – all useful pursuits if we are to build a stronger economy for the future.

In the last two years, when Peter was Director of CBO, we have called on him to testify before the House Budget Committee thirteen times.  His testimony ranged from such topics as the outlook for the economy, the cost of the war in Iraq, how we can derive more value out of health care spending, and the impact of controlling carbon emissions.  No matter the economic issue, Dr. Orszag=s testimony has been informed, incisive, and eminently understandable.

In the 1990s, Peter Orszag worked for President Clinton=s National Economic Council and the Council of Economic Advisors.  Armed with knowledge, commitment, and copious quantities of Diet Coke, Peter helped the Clinton Administration and the Congress fashion good fiscal policy.

Peter Orszag has worked in government, in the private sector, and in academia and the think tank sector.  A summa cum laude graduate of Princeton, he won a Marshall Scholarship and completed two graduate degrees at the London School of Economics.  He has published six books on retirement and homeland security and papers too numerous to cite.  He has successfully managed a large staff at CBO.  All of the above, in addition to his integrity and work ethic, make him a superlative choice for Director of OMB.

Our economy is in recession, but this is not your typical business cycle recession, and there are no off-the-shelf solutions to turn to.  In times like these, we need our best and brightest. Peter Orszag fills that bill. He has the skills, temperament, intelligence, and experience needed at OMB.  I urge his confirmation.

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