Tim Geithner Joins the 'Announcement Effect Club'!
Treasury Secretary Timothy Geither has just joined CRFB's 'Announcement Effect Club', a group of prominent economists and leaders who have called for policymakers to show a credible commitment now to bring down deficits to sustainable levels once the economy recovers -- and warned that failure to do so could threaten the recovery. His below statements yesterday before the House Ways and Means Committee qualify him for membership (emphasis added):
"That is why we believe that even as we take emergency action to spur demand and job growth, it is not too early to begin the process of imposing policies that can start bringing the deficit down to sustainable levels once recovery and job growth have a firm footing. Failure to show our commitment to bring down medium-term and long-term deficits can weaken a recovery. Failure will mean higher rates for families that want to buy a home or businesses seeking to start or expand. Failure will limit the government's ability to respond in future crises."
Welcome to the club, Tim. We hope other members of the Obama Administration will follow your lead.