Monday, November 3, 2008
Robert Rubin: preparing us for governance?
Robert Rubin was Secretary of the Treasury from 1995 to 1999. He consuled Clinton to focus on deficit reduction and deregulation. I was struck by his article, co-authored with Jared Bernstein, this morning in the NY Times. The most important point he makes, from a psychological perspective, is that we shouldn't worry about the deficit so much, that it is a false choice between "fiscal rectitude" and "pubic investment". Since Rubin is one of Obama's closest advisers and might very well serve as Treasury Secretary again, I think this is a way of getting us ready for an Obama proposal to jumpstart the economy through a large public works program, probably centered on "green" technology, infrastructure and renewable energy. "Public Works" is something Republicans hate as a concept and I suspect most Americans view it suspiciously as well (although when the government offers jobs in a jobless economy, their views might change). But I was bemused by this "deficit hawk" now using his credibility to get the public ready for a big spending program by playing down the issue of deficits,
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I guess this is another example of the Obama team trying to lower expectations. While I hate to admit it, most likely Obama will have to run a deficit in at least his first couple of years in office if he plans on stimulating the economy with some of the alternatives you mentioned. I would love to see an ideal scenario in which the economy recovers and the Govt runs a surplus, but I know this is unlikely to happen.
I have always been an ardent protester of war and all military matters, and I think this comes from my disgust with anything and everything having to do with the Cold War. So many Americans see Russia as an enemy, and for decades this has fueled our military spending (to completely absurd levels). My hope is that military spending can be cut in half or more (though Obama says he wants to increase these levels). I think its possible for Obama to fund his programs responsibly if he cuts into the nearly $500 billion a year we spend on the Military. People need to realize that military build-up leads to Fear, something Obama has endlessly preached against. We need disarmament, and this will lead to valuable economic, social, and political gains. If the Govt can put aside tensions and project a confidence in world relations, the people will follow...
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