Robert Reich Tells KCBS Recession Recovery Will Be Slow

SAN FRANCISCO (KCBS) — Economists are saying that we’re out of the recession and into recovery, albeit a very slow one.

But high unemployment has meant less purchasing power, so few Americans actually feel the revival.

In this KCBS In Depth interview, Robert Reich, UC Berkeley Professor of Public Policy, gives us his current assessment of the economy and what needs to be done to get out of the doldrums.

(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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  • moravecglobal

    $500,000 public employee salary at UC Berkeley is not an asset to recovery. When UC Berkeley announced its elimination of baseball, men’s and women’s gymnastics, and women’s lacrosse teams and its defunding of the national-champion men’s rugby team, the chancellor sighed, “Sorry, but this was necessary!”
    But was it? Yes, the university is in dire financial straits. Yet $3 million was somehow found to pay the Bain consulting firm to uncover waste and inefficiencies in UC Berkeley, despite the fact that a prominent East Coast university was doing the same thing without consultants.
    Essentially, the process requires collecting and analyzing information from faculty and staff. Apparently, senior administrators at UC Berkeley believe that the faculty and staff of their world-class university lack the cognitive ability, integrity, and motivation to identify millions in savings. If consultants are necessary, the reason is clear: the chancellor, provost, and president have lost credibility with the people who provided the information to the consultants. Chancellor Robert J Birgeneau has reigned for eight years, during which time the inefficiencies proliferated. Even as Bain’s recommendations are implemented (“They told me to do it”, Birgeneau), credibility and trust problems remain.
    Bain is interviewing faculty, staff, senior management and the academic senate leaders for $150 million in inefficiencies, most of which could have been found internally. One easy-to-identify problem, for example, was wasteful procurement practices such as failing to secure bulk discounts on printers. But Birgeneau apparently has no concept of savings: even in procuring a consulting firm, he failed to receive proposals from other firms.

    Students, taxpayers, faculty, and staff are the victims of his incompetence. Now that sports teams are feeling the pinch, perhaps the California Alumni Association, benefactors and donators, and the UC Board of Regents will demand to know why Birgeneau is raking in $500,000 a year despite the abdication of his responsibilities.

    The author, who has 35 years’ consulting experience, has taught at University of California Berkeley, where he was able to observe the culture and the way the senior management operates

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