Robert Kuttner

Robert Kuttner is co-founder and co-editor of The American Prospect, and professor at Brandeis University's Heller School. His latest book is Can Democracy Survive Global Capitalism? In addition to writing for the Prospect, he writes for The Huffington Post, The Boston Globe, and the New York Review of Books. 

Follow Bob at his site, robertkuttner.com, and on Twitter. 

Recent Articles

Comment: Speed Bumps

W ill the economic expansion just keep rolling on? Probably not. The economy has certainly demonstrated that it can sustain higher rates of growth than most economists thought possible. This higher speed limit is one part technology, one part greater competition, and one part belated recognition that the earlier pessimism about the economy's potential was wrong. The economy could well have achieved somewhat higher growth and fuller employment without inflation all along. Even so, that doesn't mean we'll never have another recession. The entire history of industrial capitalism is one of unexpected shocks. These setbacks have often been compounded by bad policy. Most recent recessions have resulted from the Federal Reserve overreacting to inflationary pressures or using the wrong tools. The current Fed chairman, Alan Greenspan, has been less inflation-phobic than most of his predecessors. But Greenspan is now playing a very risky game, tightening money even while inflationary pressures...

Back to the Future

D uring the postwar boom, it seemed that mass unemployment had been cured forever. A mixed economy--based on activist government, deficit spending, public investment, strong trade-unionism, a welfare state, and a warfare state--kept the industrial West on a high-growth path. Living standards rose steadily. Satisfied voters returned to office politicians who believed in this model. Not only is that economy dead, but the soil that nurtured it has seriously eroded. Today most politicians in the West believe their task is to expunge the mixed economy, not to reinvent it. As mass unemployment keeps rising and wages stagnate, it is bizarre to watch governments pursue freer trade, more deregulation, limitations on government, balanced budgets, and privatization, as if a pre-Keynesian free market would somehow restore high growth and full employment. With the collapse of communism and the revival of ghosts of prewar nationalism in both Eastern and Western Europe, the stakes could not be...

Ironically, Gore's Biggest Worry May be About Oil

The record economic boom is near a tipping point. Although no serious inflation is being generated by the sizzling economy, increases in oil prices show up in the general price index. They also worsen America's balance of trade. Meanwhile, the weakness of the euro is depressing profits that American companies earn abroad. On all these counts, the stock market is getting very nervous. A big stock market correction would cool off both consumer and business spending. It might scare off the foreign investors who keep buying our bonds. In this context, a misstep by the inflation-phobic Federal Reserve could help send the economy into deep recession. Al Gore must be praying that the economy holds up until Nov. 7. His friend and mentor Bill Clinton must be using every diplomatic lever to pressure OPEC to open the spigots. Our European allies, faced with consumer revolts over the price of gasoline, are doing likewise. The weakness of...

How to Rescue the Economy

The economy now seems headed for serious recession. How to fight a shadowy enemy is necessarily Topic A, but rescuing the economy is not far behind. The economy is plummeting for several interrelated reasons. The stock market was already falling sharply before Sept. 11. The speculative excess of the late 1990s financed trillions of dollars of investments that will never return profits. Once investors grasped that, the market headed south. So this is not just a blow to investor psychology; the economic blow is real. A second source of weakness is consumer spending. Even before Sept. 11, there had been tens of thousands of layoffs and the unemployment rate had risen sharply, to 4.9 percent. Now, several key industries such as insurance, airlines, hotels, and financial services have felt the effects of the attack directly, and consumers are spending less money generally. This intensifies the squeeze on corporate profits and investments. Earlier this year, continued consumer spending,...

Let's Have Real Shared Sacrifice

Retailers are not expecting a great Christmas season this year. Shoppers have less money in their pockets and more worries about their economic future. The very act of shop-til-you-drop, always a little bizarre as a form of Yuletide expression, feels especially unseemly in wartime, even when rationalized as a patriotic act of economic stimulus. It is also an odd time for the theme of national unity and shared sacrifice. In the September 11 attacks, several thousand Americans, mostly accidental heroes, made the ultimate sacrifice. Thousands more are fighting in Afghanistan. Sacrifice is also widely unequal on the home front. Those making the biggest sacrifice, like the unsuspecting victims of Sept. 11, are innocent bystanders losing their jobs, or needy people (mostly children) losing vital services to recession budget cuts. Corporations, meanwhile, are lined up for tax cuts. We are all feeling as if we are sacrificing, because we have indeed all given something up: each of us feels...

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