bush. >> rose: that's why ey called you deficit hawks, you and bob rubin andthers. so now these two last questions. number one, and then george bush comes in and he has the surplus. helso got a... 200 and later afghanistan and then later iraq and all those unexpected expendites and other thins and spent... had a huge spenng progm. and reduced taxes. >> yes. rose: ending up with a huge deficit. >> biggest fiscal swing in the historof the count. >> re: my queion is, just in economic picy, th idea that lowering taxes increases growth and is a good ideaall other thingseing equal. >> well, look, if tax rates ar 90%, as we saw, for example, in britain years ago and actually at oneoint in the united states 50 years ago and you rece them, you're goi to get owth because taxes at that level are stiing growth. they're suffocang growth. if taxes are where they are today, % for people like m at the highest ra and you raise them, for example, to 39.6, which esident obama is talki abt, which we had under president clinton, that'sot going to have any suffocating affect on growth. >

bush. >> rose: that's why they called you defic hawks, you and bob rubin and others. so now these two last questions. number one, and then george bush comes innd he s the surplus. he also got a... 2001 andlater afghanistan and thenater iraq and all those unexpected expenditur and other thins and ent... had a huge spending program. and redud taxes. >>es. >> rose: ending up wi a huge deficit. >> biggest fiscal swing in the history of the country. >> rose: question is just in econom policy, the idea that lowering taxes increases growth and is a good idea allther things being equal. >> well, look, if tax rates are 90 as we saw, for example, in britai years ago and actually at one point in the united states 50 yes ago and you reduce them, you're going get growth becauseaxes at that level are stifling owth. they're suffocating gwth. if tes arehere they are today, 35% for people le me at theighest rate and you raise them, for exple, to39.6, which president obamis talking about, which we had und president clinton, that's not going to have any suffocati affectn growth. rose: b

bob rubin, the former head of goldman was the head of obama's economic transition team. government as they have been for the last two decades and their influence is pervasive. >> matt, thank you very much. contributing editor for "rolling stone." good to see you. you'll be on rachel tonight. >> later tonight. >> we'll be tivo'ing. >> the theme here is not that complicated. something has to be fixed and the people who are being asked to fix it are being asked to change their friends and they're not. >> that's why when the housing crisis happened, you heard people say out loud this is criminal when those huge bonuses, it's criminal. it's criminal but now what? the song is the same but it seems like we're falling for the tune. >> absolutely. >> up next, a top aide to south carolina governor mark sanford quits. >> should governor sanford take the cue of his spokesman? our political strategists face off next. introducing the all new chevy equinox. with an epa estimated 32 miles per gallon. and up to 600 miles between fill ups. it's the most fuel efficient crossover on the hig

"time" magazine characterized him along with bob rubin and alan greenspan as the committee to save the world. larry is now back in that position while attempting with good success so far to save the world. it is a great privilege and pleasure for this audience here at the institute to welcome him back. before he came back to government, he was a member of our board of directors and a chairman of our committee, a frequent participant and seminars and conferences here, and is a distinct honor, larry, to welcome you back -- and is a distinct honor, larry, to welcome you back -- and it is a distinct honor. larry summers. [applause] >> fred, thank you for that. you saved my working with the peterson institute for last. i came to washington and learned about the economics of national crises, and then i returned to harvard and learned about politics. [laughter] xdit is good to be back at the peterson institute. i have updated what i used to say. during the clinton administration, i would remark on the fact that it was said that everything policymakers did was really just a distilled frenzy of

"time" magazine characterized him with bob rubin and alan greenspan as the committee to save the worldlarry is now back in that position of attempting, with good success so far, to save the world. it is a great pleasure and privilege before this record audience to welcome him back. before he came back to government he was a member of our board of directors, chairman of our advisory committee, frequent participant in seminars and conferences here, and it is a distinct honor, larry, to welcome you back to speak on rescuing and rebuilding the u.s. committee, a progress report. larry summers. [applause] >> fred, thank you very much for that generous introduction. you saved what was most important, my service to the peterson institute, for last. it was interesting the way you characterized my background. i came to washington, and on your description, learned about the economics of financial crisis. then i returned to harvard and learned about politics. it is good to be back at the peterson institute. i have updated what i used to say during the clinton administrati administration. during th