Former treasury head calls for stimulus

Oct. 26, 2008 at 6:11 PM

WASHINGTON, Oct. 26 (UPI) -- Former U.S. Treasury Secretary Robert Rubin said the nation needs another stimulus package to kick-start the economy.

The former Clinton administration official -- a supporter of Democratic presidential nominee Barack Obama -- said on CBS's "Face the Nation" a lot has been done with the $700 billion financial industry bailout package but there is "a good deal else" officials can do.

"I think it is imperative that we have a very large fiscal stimulus, although I do think that stimulus needs to be married to a commitment to long-term fiscal discipline, so we don't risk undermining our bond market and our currency market," Rubin said.

Rubin said a new stimulus package could include such things as $1,000 tax rebates for families and financial assistance to city and state governments in need of funds to make infrastructure improvements.

Douglas Holtz-Eakin, a former director of the Congressional Budget Office and currently a senior policy adviser to Republican nominee John McCain, said a McCain administration would be open to a stimulus package.

"Well, obviously, Senator McCain would never take off the table anything that would be helpful. But the idea that somehow tough economic times are a license to spend money on anything you can think of is something you want to look at very carefully," Holtz-Eakin said.

Like Us on Facebook for more stories from UPI.com  
Latest Headlines
Top Stories
North Korea blasts arrival of U.S. submarine in South Korean port
Putin reassures PM Alexis Tsipras after 'no' referendum vote in Greece
South Korea rescues 5 North Korean sailors
U.S. lottery lowers portion of cash allocated to jackpot prize
F-16, Cessna planes collide midair in South Carolina, killing two