Epiphanyblog

All about ideas…

OP-ED: No More Economic False Choices

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If Obama wins the election tonight, and there’s a very good probability that he will, he’s going to face an enormous challenge getting our financial house in order after eight years of profligate spending and decreased revenues. Plus, there are added problems of the continuing credit crunch, vast numbers of mortgage defaults, and increased job layoffs as the recession deepens.

How he’s going to deal with these problems is on everyone’s mind. Well, here is a good indication of what he will do. Robert Rubin was the Treasury Secretary under Clinton and is a financial adviser to Obama.

This op-ed in the Washington Post yesterday explores how to get the economy working again and encourage job growth…as well as deal with the deficit.

Fiscal rectitude versus stimulus and public investment: The Bible got this right a long time ago (paraphrasing slightly): there’s a time to spend, a time to save; a time to build deficits up and a time to tear them down. Though one of us (Mr. Rubin) is often invoked as an advocate of fiscal discipline, we both agree that there are times for fiscal discipline and times for fiscal largess. With the current financial crisis, our joint view is that for the short term, our economy needs a large fiscal stimulus that generates substantial economic demand.

We also jointly believe that fiscal stimulus must be married to a commitment to re-establishing sound fiscal conditions with a multi-year program that includes room for critical public investment, once the economy is back on a healthy track.

The U.S. faces a number of challenges, but most Americans agree that the two most important are dealing with the economic problems created during the Bush years and rebuilding our image abroad. This op-ed gives us a pretty good idea of how to deal with the economy…and what we will see from an Obama administration.

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Written by Valerie Curl

November 4, 2008 at 9:23 PM

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