Find the latest episode of "This Is Uncomfortable" here. Listen

Bush adviser Glenn Hubbard on how to make entitlement reform fair

Jeremy Hobson Apr 9, 2013
HTML EMBED:
COPY

Bush adviser Glenn Hubbard on how to make entitlement reform fair

Jeremy Hobson Apr 9, 2013
HTML EMBED:
COPY

As we enter a new earnings season, many market watchers are cautiously optimistic about the state of the U.S. economy and its recovery.Yet some, including former Obama White House economic adviser Larry Summers, worry that the recovery is not happening fast enough.

“When the economy goes down there is less capital investment, some people who lose their jobs and never come back to working, some young people never get on the track that they hope to,” Summers told Marketplace. “So the temporary blemish of a downturn leaves a permanent scar.”

Glenn Hubbard, who was Chair of the White House Economic Council of Advisers under President George W. Bush, joined Marketplace Morning Report host Jeremy Hobson to discuss the economy and where its headed from his point of view.

On why stocks are booming despite a tepid job and housing market:

Hubbard: “It’s a complicated picture in the economy. I expect first quarter GDP growth to actually be relatively healthy. The economy has some underlying momentum in it, particularly coming from the housing sector and durable goods. But there is a lot of uncertainty in the economy, principally from public policy, and that really holds back the job market and long-term investments.”

On his advice for Washington lawmakers:

Hubbard: “The first thing would be to reduce uncertainty by agreeing on gradual deficit reductions. Unfortunately the debate in Washinton and in Europe tends to be about austerity today — that’s not really the issue. The issue is gradual spending restraint, principally in entitlement programs. It needs to be fair — let’s do the entitlement adjustments progressively, slow down Social Security growth and/or Medical subsidy growth for more affluent people.

To hear more from Glenn Hubbard on tax increases, entitlement reform and the deficit, click on the audio player above.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.