Thursday, May 26, 2005

Robert Rubin Rallies Democratic Reps

The Hill reports that former Secretary Robert Rubin met with the House Democratic Caucus and gave them some sound advice:
In a sweeping review of the fiscal health of the country, the strength of the dollar and international trade, Rubin said that Social Security ranks third behind deficit reduction and Medicare reform as the most important economic policy issue facing the country.
“Here’s a guy who was in a position of authority when we experienced this incredible amount of economic growth,” said Rep. Joe Crowley (D-N.Y.). “It’s important that we hear from them from time to time. His whole take was no more deficit spending and no to the president’s Social Security plan.”
Criticizing Bush’s plan for Social Security reform, Rubin said, “I haven’t ever heard a bond marketer talk about savings 50 years out,” according to a Democratic leadership aide.
A central principle of Rubin's successful economic strategy was to signal the bond market that federal debt would decline, which in fact it did. Bush claims that his Social Security plan, which would require hundreds of billions in new federal borrowing, would somehow reduce the deficit 50 years out.


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