Robert B. Reich, a co-founder of The American Prospect, is a Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. His website can be found here and his blog can be found here.
Exactly eight years ago, I trudged through New Hampshire sleet and slush, telling anyone who'd listen that Bill Clinton would do wonders for the American economy. Now, as the nation lurches into a millennial election year, most Americans seem largely content. The economy has faded as an election-year issue. But it shouldn't havethere are Two Big Things about the American economy that ought to be framing the upcoming election. Big Thing Number One: America has been growing faster than ever. Productivity has been rising 2.1 percent a year since 1993, according to just-revised statistics. I wish the Clinton administration could take full credit, but it turns out that, as Barry Bluestone explains in this issue [see "Conversation: Clinton's Bequest Reconsidered," page 18], the productivity-growth spurt actually began picking up steam in the early 1980s. The recession of 1991-92 was only a temporary pause. Neither Reagan's supply-side tax cuts nor Clinton's deficit-thwacking budget cuts...
The Washington Post A growing chorus is telling Americans that one of the best ways to demonstrate that the nation won't be cowed by terrorism is to continue to buy shares of stock and retail goods. Vice President Cheney said he hoped Americans would "stick their thumb in the eye of the terrorists and . . . not let what's happened here in any way throw off their normal level of economic activity." House Minority Leader Dick Gephardt proclaimed that Americans were "not giving up on America, they're not giving up on our markets." Treasury Secretary Paul O'Neill said, "We're going to show we have backbone." On Thursday night, President Bush asked Americans for their "continued participation and confidence in the American economy." Call it market patriotism. The theory is that we demonstrate our resolve to the rest of the world by investing and consuming at least as much as we did before, preferably more. The terrorists tried to strike at the heart of American capitalism. We show that...
Broadcast September 28, 2001 Consumer confidence is dropping like a stone. Mass layoffs are sending chills through an America already shaken by the horror of September 11th. Last week alone, companies announced more than 100,000 layoffs, and there are signs of hundreds of thousands more to come. Worries about terrorism, coupled with growing worries about job security, aren't exactly inspiring consumers to flood into the malls and buy a lot of stuff despite patriotic calls to spend money. And if consumers don't buy, there are likely to be more layoffs. You see how it becomes a vicious cycle. Layoffs that undermine consumer confidence create more layoffs, further undermining confidence. When the pace of layoffs is more gradual, you don't get this downward spiral. But too many layoffs occurring too quickly can send the whole economy into a tailspin. Wall Street faces something of the same problem when too many stocks are unloaded too quickly, and the market drops too far, too fast. Panic...
New York Times
I do not believe that it is politically feasible to insulate such huge funds from a
governmental direction," Alan Greenspan told the House Ways and Means
Committee last week, one day after President Clinton proposed investing a
portion of Social Security funds in the stock market.
Mr. Greenspan was equally forthright in criticizing the President's proposal to
raise the minimum wage to $6.15 an hour from $5.15. "My own preference
would be to lower it and, in fact, eliminate [the minimum wage] because I
think that it does more damage than good," he told the committee.
Pundits are now declaring Mr. Clinton's stock plan to be in deep trouble, in
large part because Mr. Greenspan opposes it. And a new cloud also hangs
over the possibility of raising the minimum wage.
Rarely has the chairman of the Federal Reserve Board been so outspokenly
critical of the White House. Rarely, in fact,...
Broadcast July 5, 2001 In previous slowdowns, unemployment has reached 7, 8, 9 percent. But we're nowhere near those levels, and we're not likely to be even if this slowdown slides into a full-fledged recession. So what's going on? Here's a hint. In the old days--that is, before 1990--most Americans held steady jobs with steady pay. As long as you had a job, you could be reasonably certain about how much you'd earn next month or even next year. Unless, of course, a recession came along and you got laid off. So it was all or nothing--a steady job or unemployment. That's no longer the case. These days even if you're classified as a full-time employee, your take-home pay is more likely to vary from month to month and year to year. A growing percent of the paychecks of America rise or fall depending on demand for what's being sold. More employees than ever are paid by commission, a direct percentage of what they sell. Or their pay is based on billable hours. One guy was bragging to me...