By David Chalian
Former Obama administration official Steven Rattner says there is a simple reason why neither of the presidential candidates are touting specific job creation plans that would immediately bring down the unemployment rate. "There is no silver bullet, really," he said in the accompanying Daily Ticker interview.
The former Treasury department official who oversaw the successful auto industry bailout said that getting the job creating engine of the American economy humming again is going to take some time.
"Part of why you don't see either Governor Romney or President Obama out there actively going through their ten point plan in great detail is because there is no silver bullet, really. We have to de-leverage ourselves from this financial crisis. Households over-borrowed and then, of course, you had the home price collapse and so they're feeling the pain of that. And government, of course, is over-leveraged. And, so, it's a process. It's a little bit like an alcoholic going through detox. It takes a little bit of time. Nobody wants to say that, particularly on the campaign trail," he said.
Rattner, who supports President Obama's reelection effort, said the president's American Jobs Act is "as good an idea as there is in the short run." But, he acknowledged, there is no real chance of the remaining pieces of the plan to be passed by Congress.
"The first thing Washington can do is provide some certainty," Rattner said. He also added the need for a long term deficit reduction plan and some investment in infrastructure and aid to state and local governments as key ingredients to the mixture of actions needed to jump start an economy that still looks quite weakened according to the July jobs report.
On Friday, the Bureau of Labor Statistics reported 163,000 jobs were added to the workforce. The unemployment rate ticked up a notch to 8.3%.