Committee for a Responsible Federal Budget

Robert Rubin Joins the Announcement Effect Club

Aug 11, 2010 | Economics

Former Treasury Secretary Robert Rubin joined the Announcement Effect Club on "Fareed Zakaria GPS" in an appearance alongside another former Treasury Secretary, Paul O' Neill. In regards to the future short-term path of fiscal policy, he had this to say:

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.

Granted, he approaches the Club in a different way, talking about a plan's effect on confidence rather than interest rates. But since he equates confidence with improved economic performance--and given his fiscal track record--we'll count it. Enacting a plan now that takes effect in a few years would aid the recovery now.

Rubin's addition gives us two Treasury Secretaries in the Club. Its starpower is growing!