The Necessity of Economic Stimulus

Governor Corzine began his career on Wall Street in 1975 when he was recruited by the New York investment firm Goldman Sachs. After taking a job with the firm as a bond trader, he and his family settled in New Jersey. Corzine was named a partner in 1980, became a key player in crucial strategic decisions, and was eventually named chairman and chief executive officer in 1994. Three years later, Corzine was named as chairman of a presidential commission to study capital budgeting as a means of increasing federal investment in schools, technology, and infrastructure. During Corzine's tenure at Goldman Sachs, Fortune magazine named the firm one of the 10 best companies to work for in the United States, and Corzine was named by Time magazine as one of the top 50 technology executives in the country in 1997. He left Goldman Sachs in May 1999 after converting the investment firm from a private partnership to a public company – a bold move that yielded handsome profits both for stockholders and Goldman employees. Shortly after his departure from Goldman Sachs, Corzine entered public services upon election to the United States Senate in November 2000. While serving in the nation’s capitol, Corzine was the driving force behind a forward-looking, progressive agenda. As senator, Corzine served as a member of the Committees on Banking, Intelligence, the Budget, and Energy and Natural Resources, and parlayed his position in leadership to advance numerous initiatives beneficial both to New Jersey and the nation as a whole. As a member of the United States Senate, Corzine co-authored the Sarbanes-Oxley Act, a piece of legislation designed to crack down on corporate malfeasance crafted in the wake of accounting scandals surrounding Enron, Tyco, WorldCom, and other major corporations. Corzine was also a sponsor of the Start Healthy, Stay Healthy Act, which expands children’s health care and expands coverage for pregnant women. He supported legislation outlawing the practice of racial profiling and, with Kansas Senator Sam Brownback, was chief sponsor of the Darfur Accountability Act to address genocide in the Sudan. Corzine was also only one of 23 members of the Senate to vote against the Iraq War Resolution. Corzine entered the New Jersey governor’s race in 2005, and shortly after his Election Day victory, resigned from the U.S. Senate to take the oath of office as New Jersey governor on Jan. 17, 2006. As governor, he has continued to build on his reputation as a progressive, yet fiscally-responsible public servant. Corzine is a 1969 graduate of the University of Illinois at Urbana-Champaign and served in the U.S. Marine Corps Reserves until 1975. He received his Masters of Business Administration from the University of Chicago.
  • Transcript

TRANSCRIPT

Jon Corzine: I’m Governor Jon Corzine, Governor of the great State of New Jersey.

Well, fiscal responsibility is a very important objective over the longer term.

Right now, we have, what I learned in Econ 101 back in my college days, we entered into a liquidity trap where people aren’t spending money. You can lead a horse to water, but you can’t make it drink. And right now, consumers are not spending money, banks are not lending money, people don’t have the confidence to move forward.

And we need an outside demand coming in to economic life. And I think that can only be the federal government. So, unfortunately, even though I believe, on the long run, we need to have fiscal responsibility and balanced budgets, in the short run, we need to stimulate the economy.

We need for the federal government to fill in for what is not happening with the consumer, what is not happening by business spending. And that is only going to come from the federal government.

We need a very substantial stimulus coming in to the economy, I’d say, 2% to 3% of GDP to put you in the $300 billion range, might even be a little bit more to try to fill in the space that is occurring because our state governments, like New Jersey, are consumers, people on Main Street and businesses are not spending in the way that they would to keep the economy growing.

 

Recorded Nov 13, 2008.


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