Wall Street Week

Interview on Bloomberg’s Wall Street Week

In an interview on Bloomberg's Wall Street Week, Robert Rubin reflects on one of the most successful fiscal policy initiatives in modern American history—the efforts to balance the budget during the Clinton administration. Drawing on his roles as Director of the National Economic Council and Secretary of the Treasury, Rubin describes debates over the policy measures that would best reduce America’s deficits and national debt. As he recounts, the plan's success stemmed not only from sound economic policy but also from a unique political environment, when businesses and the public were concerned about fiscal responsibility, as typified by candidates Paul Tsongas and Ross Perot in the 1992 presidential campaign. Rubin also recounts the critical part of both tax and spending measures for deficit reduction.

Drawing parallels to today's fiscal challenges, Rubin warns that current debt levels—now at 100% of GDP, the highest since the post-World War II era—pose even greater risks than those faced in 1993. He describes the troubling economic effects of this situation on interest rates and other areas, but notes the difficulty of deficit reduction in the current political environment.