Robert Rubin Argues Against 'Major' Stimulus And For Deficit Reduction
Bob Rubin, the former Clinton administration Treasury Secretary and routine foil for many progressive-minded economists, argued on Sunday against a second "major" stimulus to revive the economy.
Appearing on CNN's "Fareed Zakaria GPS," Rubin said that the president would better be served focusing his efforts on the task of long-term deficit reduction.
"I wouldn't do a major second stimulus because I think...we run a risk that it could be counterproductive in creating a lot of additional uncertainty and undermining confidence," Rubin said. "But at the same time -- and what I'm about to say is easy to say and very hard to do -- at the same time I would try over the next six months to put in place a very serious beginning of deficit reduction that would take effect at some specified time in the future. And I would guess something like two years. So it wouldn't take effect right now, when the economy is still so vulnerable, but if you could do it and it was credible and people believed it and it was real, I think that could do a lot for confidence. The problem is that's very easy to say and very hard to do."
Praised for shepherding lengthy economic growth during the Clinton years only to be bemoaned, in retrospect, for ushering in the era of deregulation that contributed to the current crisis, Rubin has been a relatively quiet voice during the Obama administration. His main impact on economic policy has been through the various disciples that he has working in key administration posts. His pushback against a second major stimulus effort doesn't necessarily have practical political impacts. But it's a viewpoint that is shared by those figures who actually affect the president's decisions.
Link:
http://www.huffingtonpost.com/2010/08/08/robert-rubin-argues-again_n_674772.html
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