Gene Sperling

Current Position: Adviser to Treasury Secretary Timothy Geithner (since January 2009)
Credit: Ricky Carioti/TWP

 

Why He Matters

If he gets a job in the new administration, Sperling’s desk will likely be disorganized; he’ll be drinking coffee or Diet Coke and working longer hours than anyone else. He’s occupied White House offices in the past, and consistently managed a 110-hour work week.Page, Susan, "Economic adviser Sperling: The keeper of Clintonomics, USA Today, May 15, 1997 With the current economic crisis, Sperling will have to rely on his workaholic habits if he officially joins Treasury Secretary Timothy Geithner's team. For now, he is helping as an informal adviser.

A former Clinton economic aide and National Economic Council director, Sperling joined Secretary of State Hillary Rodham Clinton’s 2008 presidential campaign as an adviser. When Clinton failed to grab the Democratic nomination, Sperling’s chances to join a Democratic presidential administration as a top staffer plummeted.

But by working hand-in-hand with Geithner, Sperling, one of President Bill Clinton’s economic “MVP['s],” will have a significant influence on how the Obama administration tries to steer the nation through the worst economic downturn since the Great Depression.Chandler, Clay, "Sperling Named NEC Director; Clinton Selects Loyal, Hard-Working Aide," The Washington Post, Dec. 14, 1996

Path to Power

A native son of Ann Arbor, Mich., Sperling went to Minnesota University as an undergraduate, captaining the tennis team in 1981 before heading to Yale Law School. Yale classmates noticed even then Sperling’s work ethic and almost obsessive ability to study public policy.

"He basically never left his library cubicle," said Christian Merkling, a Sperling classmate. "He was obsessed with policy to an extent that made it difficult for even those of us interested in policy to talk to him. He was so wound up in the maze of whatever he was involved with."Hilzenrath, David S. and Mufson, Steven, "Keeper of the Flame; Gene Sperling, at Clinton's Right Hand on the Economy," The Washington Post, May 9, 1993

While in law school, Sperling worked summers under Clinton Labor Secretary Robert Reich, when Reich lectured at Harvard. He also joined the National Association for the Advancement of Colored People Legal Defense Fund and the National Abortion Rights Action League. Only a few months after graduating from Yale in 1985, Sperling helped defend a case in front of the U.S. Supreme Court, arguing for a Michigan school district’s affirmative action policies against the Justice Department during the Reagan administration. Sperling spent some time at the Wharton School of Business, but he left to join Michael Dukakis’ 1988 presidential campaign before he could finish his MBA studies.

After Dukakis’s defeat, Sperling went to work for Harvard law Professor Laurence Tribe and in 1990 joined New York Governor Mario Cuomo’s (D) office hoping to work on a presidential campaign in 1992, as Cuomo was considered a possible candidate. But Cuomo didn’t run.Hilzenrath, David S. and Mufson, Steven, "Keeper of the Flame; Gene Sperling, at Clinton's Right Hand on the Economy," The Washington Post, May 9, 1993

While working for Dukakis, Sperling had worked closely with economic gurus Lawrence Summers, Robert Rubin and Reich. They recommended him to Bill Clinton, who brought him aboard his 1992 presidential campaign as director of economic policy. When Clinton won, Sperling joined the White House as the deputy director of the National Economic Council (NEC). Three years later, he jumped to NEC director after his boss, Rubin, moved to the Treasury.

Sperling was one of the few administration officials who lasted all eight years of the Clinton administration. After George W. Bush took office in 2000, Sperling left for various think-tanks like the Brookings Institution and the Council on Foreign Relations. He also wrote a book and spent some time as a consultant and writer on the television drama “The West Wing.”

The Issues

Sperling's main task during the Clinton presidency was reducing the $290 billion deficit when Clinton took office in 1992.Wallace, Kelly, "President Clinton announces another record budget surplus," CNN, Sept. 27, 2000 But President Obama is coping with the opposite problem: how to inject money fast enough into a flailing economy in order to rescue it from a perilous downturn.

The Workaholic

One thing is certain: whether or not Sperling is actually a formal government employee, the country is probably getting its money’s worth. During the Clinton administration, Sperling had a reputation for spending countless hours in the White House. His office would be in shambles, but Sperling continued to have the president’s ear because of his work ethic and ability to create consensus. Sperling, a.k.a “Gene the Machine,” became Clinton and then-Treasury Secretary Robert Rubin’s right-hand man on economic issues.Chandler, Clay, "Sperling Named NEC Director; Clinton Selects Loyal, Hard-Working Aide," The Washington Post, Dec. 14, 1996

Only a month into Clinton’s first term, the Washington Post reported that then-Office of Management and Budget Director Leon Panetta was giving a presentation to the other cabinet members. Sperling, the deputy director of the NEC at the time, walked in 30 minutes late. Panetta stopped the meeting and rehashed everything he had just said.

‘"I have never seen an OMB director or a secretary of the treasury defer to an under-secretary like that, let alone an underling,’ said one official who attended the meeting. ‘People deferred to him as though he was speaking for Clinton,"’ wrote the Washington Post.Hilzenrath, David S. and Mufson, Steven, "Keeper of the Flame; Gene Sperling, at Clinton's Right Hand on the Economy," The Washington Post, May 9, 1993

"Gene can go toe to toe with the wonkiest propeller head at the Treasury," said political strategist Paul Begala, who worked in the Clinton administration, to the Wall Street Journal. "Then he can go to the political people, who roll their eyes at the propeller heads, and explain what needs to be done."Davis, Bob, "Clinton Aide Blends Issues With `Permanent Campaign,'" The Wall Street Journal, March 9, 1999

China

In 1999, Sperling spent time in China attempting to negotiate a deal allowing foreign firms to gain up to a 50 percent stake in Chinese telecommunication firms. In return, China would be allowed to join the World Trade Organization (WTO). Sperling worked closely with Clinton Trade Representative Charlene Barshefsky in all-night discussions with Chinese officials that eventually led to China’s admission into the WTO in December 2001. That pact was China's largest hurdle in gaining WTO entrance.Sanger, David E., "At the Last Hour, Down to the Last Trick, and It Worked," The New York Times, Nov. 17, 1999

Ten years later, Obama and Geithner want to talk trade with China again; particularly on the subject of China's artificially deflated currency called the yuan, which creates cheaper Chinese goods leading to a global surplus for the communist country in trade. Geithner said during his confirmation hearings in January 2009 that he would take a tougher, more aggressive stance on adjusting trade policies towards China.Montgomery, Lori and Faiola, Anthony Faiola, "Geithner Says China Manipulates Its Currency," The Washington Post, Jan. 23, 2009  

'Pro-Growth Progressive'

Sperling wrote a 2005 book called “The Pro-Growth Progressive: An Economic Strategy for Shared Prosperity” in which he argued that the key for progressives in regaining control of government was to create growth initiatives.

“Our primary goal should be raising all middle-class and poor boats substantially,” Sperling wrote, “even if the well-off boats rise at a similar or faster pace.”Mandel, Michael J., "Seeing The Light Of Growth," BusinessWeek, Dec. 26, 2005 

In order to foster this growth, Sperling urged progressives to push for technological change and invest more heavily in education and research. Sperling demonstrated this theory by using the example of a textile mill. The government, Sperling argued, should step in before the textile mill shuts down. He argued that the government should begin educating textile mill workers once it becomes clear that the mill is headed toward closure. The lead time would give workers time to develop different skill sets once the mill shut down.Scheiber, Noam, "Clintonism 2.0," jan. 22, 2006, The New York Times 

Sperling also espoused the idea that personal savings are key to long-term growth. Personal savings are “a vital ingredient in ensuring economic dignity and upward mobility,'' wrote Sperling. This fiscal discipline will “build public trust in government — a prerequisite for attracting support for expansive government initiatives.”Mandel, Michael J., "Seeing The Light Of Growth," BusinessWeek, Dec. 26, 2005

The Network

Sperling has a long list of friends that worked in the Clinton administration and advised Obama during his 2008 presidential campaign, some of whom nabbed White House jobs. The new NEC Director Lawrence Summers worked at the Treasury when Sperling was at the NEC. Summers and Sperling both worked on Dukakis’ 1988 presidential campaign, along with former Clinton Labor Secretary Robert Reich and ex-White House Communications Director George Stephanopoulos. Rubin was Sperling’s NEC boss from 1993 to 1996.

Former Clinton Chief of Staff John Podesta started the liberal think tank Center for American Progress, where Sperling spent some time doing research from 2003 to 2008. 

Campaign Contributions

Sperling has contributed $3,300 to political campaigns since 2001. All of his money went to Democratic candidates. Sperling gave $1,000 to each of Erskine Bowles unsuccessful North Carolina senatorial bids in 2002 and 2004. Obama’s trade representative Ron Kirk got $250 from Sperling in 2002 during his failed senatorial bid in Texas. Rahm Emanuel received $300 from Sperling in 2001, prior to running for a House seat in Illinois.Center for Responsive Politics