Jeff Faux

Jeff Faux was the founder, and is now Distinguished Fellow, of the Economic Policy Institute.

Recent Articles

A New Conversation: How to Rebuild the Democratic Party

Let's face it: The Democratic Party got into some bad relationships. It doesn't need a new message so much as a whole new conversation with the American people.

W hen liberal Democrats dragged themselves off the electoral battlefield after last fall's election, for the first time in 40 years they had nowhere to hide. Throughout these years, even after their defeats by Nixon and Reagan, the House of Representatives was a protected citadel to which Democrats could retreat shielded by political warlords like Sam Rayburn and John McCormack, Tip O'Neil and Jim Wright, Dan Rostenkowski and John Dingell. With the House in Democratic hands, the core New Deal and Great Society programs survived. Labor, minority, elderly, environmental, and women's organizations were safe to lick their wounds and plot revenge. But this protection came with a price. The liberal coalition was increasingly tied to a Washington legislative agenda and became preoccupied with the lobbying and financing of the Democratic congressional majority. An unhealthy mutual dependence developed. Despite their grumbling about the chores of fundraising, many Democrats in Congress and...

Can Liberals Tell a Credible Story?

If Democrats want to be more than bit players in the Reagan movie, the liberal story needs new characters, new images, and stronger language about opportunity, wealth, and inequality.

P olitical debate is a contest between competing stories about, as supply-sider Jude Wanniski once neatly put it, "how the world works." Today, America lacks serious political debate because Democrats are still substantially trapped in Ronald Reagan's narrative—the morality play of the Individual against the Collectivist State, in which virtue is identified with wealth, efficiency with the unregulated market, and freedom with the opportunity to get rich. Bill Clinton claims he is telling a new story—a centrist compromise that deregulates the market and shrinks government to spur greater economic growth, and then, through education and the celebration of self-help, broadens opportunities to enjoy the fruits of that growth. Policy insiders can still read the differences between the Clinton and Reagan stories. But to most Americans, Clinton's story line is muddled, its characterizations weak (nothing to match Reagan's welfare queens, power-grabbing bureaucrats, or hypocritical...

The Global Alternative

T he economic orthodoxy that guides the management of the global economy has failed to deliver. During the past two decades of accelerated privatization, deregulation, and free trade, global growth has actually slowed. The countries (mostly Asian) that grew faster rejected the advice of the bankers, bureaucrats, consultants, and media pundits who constitute the Washington Consensus on such matters. At the same time, inequality both in developed and in developing countries has generally worsened and poverty is spreading. Even James Wolfensohn, president of the World Bank, has observed: "At the level of people, the system isn't working." Yet there remains a widespread impression that there is no other option--that capital markets are so sensitive, governments must bend to the political agenda of those who speak for the world's great financial institutions. From the boardrooms, protestors are dismissed as selfish protectionists or ignorant malcontents whose tantrums will only divert the...

Slouching toward Seattle

The World Trade Organization so far is a business-oriented club that has undermined the mixed economy everywhere. But it might be the framework for a global New Deal. The Seattle trade meetings could set the tone.

Every economic system develops a politics around the institutions and rules that govern it. The economic system now being created by the relentless merging of the world's markets will be no exception. But what global politics will emerge to match the new global economy? One place to look for clues will be in Seattle this November 30, when officials representing the 134 nations of the World Trade Organization (WTO) gather to begin another round of negotiations to lower trade barriers. More than tariffs will be on the table. As Renato Ruggiero, the outgoing director-general of the WTO, put it, "We are no longer writing the rules of interaction among separate national economies. We are writing the constitution of a single global economy." The Seattle "ministerial" conference has a largely ceremonial purpose: to approve agreements already struck in smaller, less public meetings around the globe. The official business in Seattle will therefore be much like casting votes at a U.S. political...