Text of Secretary Paulson’s Speech This Morning

By January 22, 2008Economy, Taxation

UPDATE (8:30 a.m.) Paulson’s prepared remarks were made before Fed made its 3/4 of a percentage point rate cut this morning.

The Four Criteria speech.

Four criteria will guide my efforts going forward. As the President said, the legislation that will best serve our economic interest must be swift, robust, broad-based and temporary.

It must be swift. The legislation must be enacted quickly, and the elements of the legislation must have immediate impact. If we miss this, we miss the mark.

It must be robust. The President proposed a package approximating one percent of GDP — anything less than that will not have a meaningful impact. Raising taxes to offset these initiatives will diminish potential job creation and growth benefits. The last thing we should do right now is take money out of the economy.

It must be broad-based. To be effective, the package must reach a large number of citizens. To move quickly through the legislative process, we should keep this proposal simple. Debates over favorite programs will inevitably bog down the process. We want to act in time to help families get through a tough economic time.

And, finally, it must be temporary, to avoid impacting our long-term fiscal position.

A serious, calm and reasonable speech. Initial AP story here.

Nevertheless….the challenge for the day. Come up with the metaphor that embraces these four characteristics. Swift….robust…broad-based…temporary.

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