Rubinomics has never rejected Keynesian approaches to economics, which call for the government to run a deficit in times of recession.
Rubin and most other economists (including Alan Greenspan) attributed this high yield curve to an "inflation premium" that bond-traders were demanding.
Reducing interest rates, Rubin argued, would lead to increased private sector investment and consumption and, therefore, stronger growth.
Clinton, who had campaigned on the promise to put people first and invest in human capital, accepted Rubin's reasoning and put deficit reduction at the forefront of his economic plan, to the chagrin of more left-wing advisers such as Robert Reich and Joseph Stiglitz.
In particular, Stiglitz was not opposed to Clinton's plan to reduce the deficit, but suggested that Clinton put more money into research and development, technology, infrastructure, and education, quoting "given the high returns for these investments, GDP in 2000 would have been even higher, and the economy's growth potential would have been stronger."