A main theme of the discussion President Rubenstein conducted with Alan B. Krueger, Chairman of the Council of Economic Advisers, at the November meeting of the Economic Club was the implications of the looming fiscal cliff confronting Congress and the Obama Administration. Krueger said his greatest concern about the consequences of a failure by the Administration and Congress to reach a budget deficit agreement is the possible psychological impact such a failure to act could have, especially the uncertainty that would create for households and businesses. In the short term, [the impact of that uncertainty] and the perception that the United States government can’t solve its problems could be considerably larger than just the cash flow effects,” he said.
Excerpts from Event
“What I would like to see over the next 10 years is for us to make the kinds of effort that will put us in a place where we’re on a sustainable path, where the debt is not growing, where it’s manageable, where it’s not crowding out private-sector investment, when the private sector is closer to full employment.” ~ The Honorable Alan B. Krueger, Chairman, Council of Economic Advisers
“. . . we’ve had an opportunity gap in this country – and that goes back more than one decade – where people who are not born to fortunate circumstances have much greater challenges moving upwards in the American economy. That has taken place for a number of reasons related to technology, related to globalization. What I think is important about our proposals is that by asking the top 2 percent to pay more, that will provide more opportunity for others to have the same types of chances. . . that extra revenue . . . [is] going to be used to help keep student loan rates low. It’s going to be used to provide STEM education — science, technology, mathematics, engineering — education for more individuals to have the kinds of opportunities that have made it possible for so many Americans to thrive.” ~ The Honorable Alan B. Krueger Chairman, Council of Economic Advisers