Charles Lee Schultze (January 12 1917 – August 27 2006) was an American economist who held several senior positions in the United States federal government and in think‑tank research. He is most noted for serving as Chairman of the Council of Economic Advisers (CEA) from 1965 to 1969 under President Lyndon B. Johnson, and for later becoming Director of the Office of Management and Budget (OMB) from 1970 to 1971 under President Richard Nixon.
Early life and education
- Born in Chicago, Illinois.
- Earned a Bachelor of Arts in economics from Northwestern University (1937).
- Completed a Ph.D. in economics at the University of Chicago (1948), focusing on macroeconomic policy and fiscal analysis.
Career
Academic and research positions
- Joined the Brookings Institution in 1948, where he worked as a senior economist and later as a research associate. His work at Brookings emphasized national income accounting, fiscal policy, and the economic effects of government programs.
Federal service
- 1961–1965: Deputy Director, Bureau of the Budget (now the Office of Management and Budget).
- 1965–1969: Chairman, Council of Economic Advisers. In this capacity, Schultze advised the Johnson administration on macro‑economic policy, including issues related to the Great Society programs, inflation, and the financing of the Vietnam War.
- 1970–1971: Director, Office of Management and Budget, the first to hold the title after the agency’s renaming from the Bureau of the Budget. He oversaw federal budgeting processes during a period of rising inflation and fiscal strain.
Later work
- After leaving government, Schultze returned to Brookings, where he served as director of the Economic Studies Program until his retirement in 1981.
- Authored or co‑authored numerous publications on fiscal policy, national income, and economic forecasting, including the textbook "Fiscal Policy and the Economy" (1974).
Major contributions and influence
- Played a central role in shaping the Johnson administration’s macro‑economic policy framework, particularly the use of fiscal tools to pursue full employment and price stability.
- Contributed to the development of modern federal budgeting practices, emphasizing systematic analysis of program costs and benefits.
- His research at Brookings helped standardize methods for measuring Gross National Product (GNP) and national income, influencing both academic and policy circles.
Awards and honors
- Fellow of the American Academy of Arts and Sciences.
- Recipient of the Distinguished Service Medal from the Department of the Treasury.
- Held honorary doctorates from several universities, including Northwestern University and the University of Chicago.
Personal life
- Married to Margaret Schultze; the couple had three children.
- Died in Washington, D.C., at age 89.
Legacy
Charles Schultze is remembered for bridging academic economic research and practical government policy. His tenure at the CEA and OMB coincided with a transformative era in U.S. fiscal policy, and his contributions to budgeting methodology continue to influence federal financial management.
