12 questions for Robert Reich

By James Paton, Rocky Mountain News (Contact)

Published April 25, 2008 at 8:30 p.m.

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Photo by Angela Rowlings / Associated Press/2002

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* Robert Reich, who served as Labor secretary under Bill Clinton, made headlines last week when he endorsed Barack Obama.

But that's only one topic the prolific writer, blogger and University of California at Berkeley professor is tackling these days. Reich talked to the Rocky's James Paton before First Western Trust Bank's annual client meeting this week, shifting from the nation's economic challenges to the Fed while dishing out opinions on everyone from Alan Greenspan to Jon Stewart.

1. You have ties to the Clintons, but you publicly backed Obama.

I was not going to endorse anyone, but I've become more and more impressed with Obama and his policies, which I think are the most sensible, and also his capacity to get people involved in politics, which is a necessity if we're ever going to rescue democracy from special interests. I was also frankly turned off by the negative tone of (Hillary Clinton's) campaign, particularly in the last few weeks, so I felt I had to speak my mind.

2. Why hasn't he knocked her out?

Although he has continued to gain ground, it is hard for him to gain as much as he would like with the white working-class voters who make up a significant portion of Pennsylvania, Ohio and New York, particularly because they don't know him very well. They're very familiar with the Clintons. Pennsylvania is right next to New York. The Clintons did a lot for the working class. I was secretary of labor and very proud to be associated with that administration. Obama's performance in Pennsylvania was better than in Ohio. White working-class voters like the Clintons. But as they get to know (Obama), they'll come around.

3. Have you talked to the Clintons recently? Did you give a heads-up?

I tried to get through, and I was unsuccessful.

4. What are the headlines the next president will face on day one?

Whoever is the next president is first going to have to attack head on an economy that is facing not only fierce head winds but also frustrations with many middle-class people who have a hard time getting wage increases. Secondly, a backlash against globalization and immigration. Thirdly, all the problems related to baby boomers retiring - Medicare, Social Security, pensions and a work force under increased strain.

5. What do you think should be done to help the middle class?

Unemployment insurance has to be extended. I think it's very important to provide people who are in danger of losing their jobs with job counseling, search assistance, training and even wage insurance, which would provide people with a portion of the difference between the wages of their old job and a new job for a certain period. I think the earned income tax credit can be expanded. It has worked extremely well. K-through- 12 education is critical as well as access to affordable health care.

6. With all the bleak economic and financial news, you'd think we're on the brink of an apocalypse.

The optimists say we'll be out of the woods at the end of this year. I think that's a little too optimistic. My reading of the economic indicators is that we're probably going to go into 2009. We are in a recession already, I believe, and I think it will continue until at least the first quarter of 2009. There are too many trends working against the economy. The two most obvious being the bursting of the housing bubble and the credit crunch. You have oil prices soaring. Food prices are soaring. Americans are deep in debt. I don't want to be a doom and gloomer. I'm quite upbeat on a number of things, but on this one, I'm concerned.

7. Your last book was called Supercapitalism. What's next?

A textbook on introductory economics with Laura Tyson, who was part of the Clinton administration. I'm also working on a book about the four fables of American public life, but I won't tell you what they are because then you won't buy the book.

8. You're a blogger, too.

I did it mainly to blow off steam. I'm surprised people read it but apparently they do.

9. Let's turn to the Fed.

I do blame Greenspan for a lot of the problems we're facing, though in the 1990s I gave him great credit. He helped prolong the recovery and get a lot of people jobs, and I salute him for that. But in the early part of this decade he blew it. He and the Fed reduced interest rates to 1 percent in 2003 and did not monitor lenders, did not oversee the financial industry in the ways the Fed is authorized to, rejected ideas for new means of oversight at a time when a lot of people were telling him abuses are possible and a bubble will result. He didn't listen.

10. Are you coming to Denver for the Democratic National Convention?

Not if I can avoid it.

11. What can we expect?

If the Democrats are still undecided, all eyes will be on Denver. It may be an absolute mess. I would hope this thing is settled by June.

12. You seem to enjoy being on Jon Stewart, Colbert and Bill Maher.

I like comedy. I'm a frustrated stand-up comedian. Also, I believe people can learn through a little comic relief. A spoonful of sugar goes a long way. And I think most people under 30 get most of their news from The Daily Show.

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