Tags: rubin | summers | stimulus

Rubin, Summers Back Big New Stimulus

Wednesday, 19 Nov 2008 04:35 PM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Robert Rubin and Lawrence Summers, both of whom served as Treasury secretary under President Clinton, advocate a major fiscal stimulus package to get the plunging economy back on its feet.

Democrats in Congress want to pass a stimulus bill during the current, lame-duck session, but Republican opposition makes it unlikely that a new package will be adopted before the new Congress convenes next year.

Rubin, speaking along with Summers at a Wall Street Journal conference, said the economy faces a long road to recovery. Both have been advisers to President-elect Barack Obama, and both are potential picks to be the new Treasury chief.

“A lot of damage has been done, and it will take some time to get through that, certainly well into next year,” Rubin says.

So what’s the antidote? “I think we need very substantial stimulus,” he says. But Rubin cautions that loose fiscal policy can’t last for too long.

“It’s imperative that we marry that stimulus with a real commitment to reestablish sound fiscal conditions once we get through this.”

In January, Summers advocated fiscal stimulus that would be “timely, targeted and temporary.”

But now, “the situation has deteriorated substantially,” he points out. “So I would go for speedy, substantial and sustained stimulus over a several-year interval.”

The stimulus won’t be all bad for the budget deficit, because the resulting economic activity will bring revenue back to the government, Summers says.

A group of major CEOs at The Journal conference called for a stimulus package of more than $300 billion.

“This really was far and away” the top priority, Roger Ferguson, CEO of TIAA-CREF, told the Associated Press.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Israel: Truce is Over

Friday, 01 Aug 2014 06:20 AM

Israel declared a Gaza ceasefire over on Friday and killed more than 50 Palestinians in renewed shelling, saying militan . . .

White House: Hamas Attack 'Barbaric' Violation of Gaza Ceasefire

Friday, 01 Aug 2014 08:56 AM

The White House on Friday condemned a reported Hamas attack on Israeli soldiers in Gaza as a violation of the newly reac . . .

Job Growth Cools, Unemployment Rate Rises to 6.2 Percent

Friday, 01 Aug 2014 08:34 AM

U.S. job growth slowed more than expected in July and an unexpected rise in the unemployment rate pointed to some slack  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved