Robert Rubin: The biggest risks to the US economy are political, not financial

By Robert E. Rubin for Goldman Sachs

In a Goldman Sachs Talks session, former U.S. Treasury Secretary and Goldman Sachs leader Robert Rubin shares insights from his new book "The Yellow Pad," discussing critical challenges facing the United States with CEO David Solomon. While acknowledging the resilience of the U.S. financial system despite recent bank failures, Rubin emphasizes that the most significant risks today lie in the political sphere. He expresses concern about the government's current inability to address crucial policy challenges, from updating federal deposit guarantees to implementing necessary reforms in climate change, immigration, and education.

Of particular focus is Rubin's perspective on U.S.-China relations and climate change. He advocates for a shift in approach toward China, suggesting that both nations should first collaborate on shared global challenges like climate change and artificial intelligence before tackling more contentious issues. On climate change, Rubin highlights the complex dynamics between developed and emerging economies, noting that while the Western world has reduced emissions, global carbon output continues to rise, with over 70% of emissions coming from emerging markets. He stresses that addressing these challenges requires both effective government policy and sustainable economic growth, underscoring that corporations alone cannot bear the responsibility for protecting the climate while maintaining their essential focus on long-term profitability.