Former
Treasury secretary discusses economic outlook
By Tatiana Prophet
tprophet@atlantalatino.com
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Robert
E. Rubin
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Atlanta
Sept. 21.- About 600 members of the U.S. Hispanic Chamber
of Commerce attended the International Breakfast at Atlanta's
World Congress Center Friday morning and heard speeches from George
Muñoz, former chief financial officer of the U.S. Treasury
department; Rolando Santos, president of CNN Spanish; and Robert
E. Rubin, former secretary of the treasury under President Bill
Clinton and now an executive with Citigroup Inc.
All three addressed the national crisis brought on by the terrorist
attack on September 11."There's no question in my mind that
there will be permanent changes in the way our society functions,"
Rubin said. "On the other hand, I think equally strongly
that the fundamental strengths of our economy are not changed
in a material way. And the challenges to our economy remain largely
the same, although there certainly are new challenges as a result
of this great tragedy."
Rubin said that the short-term economic situation, which is a
natural "unwinding" of the excesses and imbalances brought
on by the previous economic prosperity, will most likely be more
uncertain than it would have been without the September 11 tragedy.
"But the long term prospects have not materially changed,"
he said. "There will be additional long-term challenges and
costs due to the threat of terrorism. But while these long-term
challenges and costs are real, I don't think they are material
relative to the size of our economy or the underlying strength
of our economy."
Rubin said he agreed with President Bush, that we need to "get
back to our lives and go about our work the way we are accustomed
to doing."
Rubin said the key to economic recovery would be, among other
things, a "healthy fiscal policy" by the federal government.
Short-term government spending-to respond materially to the needs
resulting from the September 11 tragedy-will provide a beneficial
stimulus to the economy, said Rubin. But in the long-term, the
government needs to establish a trend of responsibility in spending.
Another critical key to future economic growth, said Rubin, is
continued trade liberalization. But he cautioned that governments
need to help those who have been affected by globalization-through
educational programs and investment in both inner cities and depressed
rural areas so that their inhabitants are brought into the economy.
"At the same time that we pursue change through trade, we
also make sure that our people are equipped to deal with the economy
of change."
Rubin urged the Hispanic community to influence public policies
for the poor.
"I believe that your community has the potential to be an
immense and powerful force in American political life, and I would
urge you at least to make your voices heard behalf of those programs,"
he said. "I think in a way it has never been more important
than now, as our country works to meet the challenges [that are]
in many ways unprecedented and extraordinarily complex that will
affect every aspect of our life."
George Muñoz, who worked under Rubin in the Treasury department,
said all Americans-regardless of ethnic origin-are united in these
difficult times. "Americans are shoulder to shoulder in the
fight," he said.
Rolando Santos, president of CNN Spanish, said that now is a crucial
time for Hispanics. "Never before have Hispanics had such
a convergence of opportunity and power." But, he said, Hispanics
are not united. "Unfortunately, what we don't have is unity
among ourselves, to be one voice. I ask again, can we learn from
the coming together of the American people during the horrible
and unprovoked attacks of last week? I ask, can we put aside our
internal Hispanic issues to be one force?…. Now is the time
for ourselves, for our families and for our country." (www.atlantalatino.com)
