Reich: Poor Need Help Despite Strong Economy

WASHINGTON (CNN, Nov. 11) -- It is possible for the U.S. economy to avoid a recession in President Clinton's second term, but a "soft landing" for the economy could be difficult, departing Labor Secretary Robert Reich said Sunday on CNN's "Late Edition."

The "great unfinished agenda" of President Clinton's first term is to find a solution to the vast income disparities between the wealthiest and poorest Americans, Reich said.

"Though we brought jobs back, we still have to worry very, very much about those people who are still struggling," Reich said. (192K WAV sound)

Education and job skills training should be the president's top priority to help poor Americans join the country's economy, he said. Clinton needs to focus on those people in "the bottom half" of the economy if income inequality is to be remedied, Reich said.

The welfare reform legislation has presented states with a "huge challenge" in moving people from welfare to work since welfare recipients will have to compete with six million other unemployed Americans for jobs, he said.

While Reich was one of Clinton's most enthusiastic cheerleaders in the first term, he was rumored to have been privately opposed to Clinton's signing of the welfare bill. Reich, who announced his resignation Friday, had no predictions on who his successor may be. (224K WAV sound)

National Economic Council head Laura d'Andrea Tyson has been mentioned as a possible replacement for Reich.

Reich: Poor Need Help Despite Strong Economy

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