Let's Get Serious

Robert Rubin, Treasury Secretary under Clinton, has an excellent OpEd in today's Wall Street Journal. The basic message: stop the posturing and the party warfare, re-establish our seriousness of purpose and change policy direction.

Mr. Rubin asks the president to "bring together the leaders of both parties and both houses to make the decisions which are needed for us to move forward and not get swamped by the fiscal realities of the 21st century world". He's calling for the bipartisanship that has vanished in recent years, but was so instrumental in moving this country forward in prior periods of uncertainty and doubt.

He outlines four components that a sensible strategy must include:

1. "Establish sound fiscal conditions for the intermediate term and put in place a real plan to get entitlements on a sound footing for the long term."
2. "A strong investment program - paid for, not funded by increased public borrowing - to promote productivity growth, to help those dislocated by technology and trade, and to equip all citizens to share in our economic well-being and growth."
3. "Pursue an international economic policy that continues global integration, especially multilaterally, and proactively addresses our other international economic interests."
4. "Work towards a regulatory regime that meets our needs and sensibly weighs risks and rewards."

He quotes Business Week - "the deficit morass is due as much to a revenue shortfall as excessive spending" - in repeating the CBO's estimate that 80% of the expected 10-year deficit of $4 to $5 trillion will be the result of the tax cuts of 2001 and 2003. And reminds us that "free lunches are politically appealing, but economically unrealistic".

All in all, Rubin is pleading for our political leaders to do just that - lead. Forget about ideology. We are facing severe problems that require us to rationally evaluate alternatives and summon the will to choose the best alternatives regardless of party or political intentions.