To be sure, there is a coordinating role that someone needs to play on the economic side. In past administrations, the OPD director oversaw an Economic Policy Council (EPC) chaired by the treasury secretary, which performed this function. On a day-to-day basis, a mid-level staffer organized working groups, set up meetings and ran the EPC.

 One reason why Clinton did things differently is that he wanted a high-level White House position for Bob Rubin, one that would justify a West Wing office and the other trappings of status that go with it. Consequently, the NEC was really designed around Rubin's considerable abilities. And by all accounts, it operated well during his tenure.

 But eventually, Rubin moved on to become treasury secretary, and since then the NEC has slowly gone downhill. During the early days of this administration, it had a bit of a revival when Larry Lindsey, Bush's closest campaign economic adviser, was named director. But for unknown reasons, Lindsey was fired in late 2002 along with Treasury Secretary Paul O'Neill. Friedman, who like Rubin formerly headed the investment firm of Goldman Sachs, replaced Lindsey.

 I have always been puzzled by Lindsey's dismissal. O'Neill went out of his way to be a pain in the neck and was widely viewed as not being a team player in an administration that prizes loyalty above all else. But Lindsey was (and still is) as loyal as the day is long. I continue to feel that he was very badly mistreated. There was no reason to publicly humiliate him the way Bush did. It sent a signal that loyalty is a one-way street in this White House.

 The only negatives I ever heard about Lindsey were that he was somewhat disorganized and overly outspoken with the media. So it was not surprising that he was replaced by someone known as a good manager who has been virtually invisible in the media.

 In any case, the departure of Friedman and Spellings creates an opportunity to merge the NEC and OPD, and get back to a more efficient White House structure. I think it would improve economic policy and make it easier for Bush to pursue issues like tax and Social Security reform.