THREE MORE NOBEL-WINNING ECONOMISTS BACK CLINTON'S ECONOMIC STRATEGY July 3, 1992 Three more Nobel-prize winning economists today expressed support for Clinton's "Putting People First: A National Economic Strategy," as a sound combination of significant deficit reduction and economic investment. These endorsements bring to six the number of Nobel Laureates who have expressed support for Clinton's economic plan. "Governor Clinton touches all the bases in his economic statement--problems of public debt, deficits, unemployment, education, income distribution, [and the] environment. I do believe that he has laid out some very sensible and admirable policies for initiating a vigorous recovery of the economy in a stable non-inflationary environment," said Lawrence Klein, Professeur of University of Pennsylvania. Massachusetts Institute of Technology Professeur Paul Samuelson said, "Clinton's economic program makes prudent sense. America most needs capital formation -- human and material capital, private and public capital. Reagan-Bush structural budget deficits reduced the nation's savings available to finance these investment." "I am greatly impressed by Governor Clinton's honesty and courage for providing the country with his program and its fiscal implications," said Massachusetts Institute of Technology Professeur Franco Modigliani. Last week, Clinton's plan received strong support from Professor Kenneth Arrow of Stanford University, Professor James Tobin of Yale University, and MIT Professor Robert M. Solow. The complete statements by Professors Klein, Modigliani, and Samuelson are attached, as are Professors Arrow, Tobin, and Solow. STATEMENTS FROM NOBEL PRIZE WINNING ECONOMISTS ON BILL CLINTON'S NATIONAL ECONOMIC STRATEGY Statement of Lawrence Klein, University of Pennsylvania 1980 Nobel Prize Winner Governor Clinton touches all of the bases in his economic statement -- problems of public debt, deficits, unemployment, education, income distribution, environment and other important issues. Few candidates in recent years have been willing to face up to the deterioration of the American income distribution, and I admire his statement for addressing the inequalities that trouble our country. I do believe that he has laid out some very sensible and admirable policies for initiating a vigorous recovery of the economy in a stable non-inflationary environment. Statement of Professor Franco Modigliani, MIT 1985 Noble Prize Winner I am greatly impressed by Governor Clinton's honesty and courage for providing the country with his program and its fiscal implications. And there is a good deal in his program that offers definitive improvement over the past years of serious mismanagement of the economy. In particular, I support his emphasis on four issues that must urgently be taken care of to re-establish the health and leadership of our economy: namely, more investment, public and private, better education and training, more effective management of welfare and health, and reducing the budget deficit -- even if at the expense of somewhat higher taxes for the wealthiest. His deficit projections may be somewhat optimistic and some further tightening may be required in the end, but his stance is in the right direction. I hope the nation will understand this program and stand by its worthwhile proposals. Statement of Paul Samuelson, MIT 1970 Nobel Prize Winner Clinton's economic program makes prudent sense. America most needs capital formation -- human and material capital, private and public capital. Reagan-Bush structural budget deficits reduce the nation's savings available to finance these investments. It is both fair and effective to generate some of the needed tax revenues from those of us at the top who have made out extraordinarily well under Reagan-Bush tax concessions.