Robert Reich

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.

Recent Articles

Mobilizing American Industry for War

The Wall Street Journal As America mobilizes for war, Washington must think more clearly about what it wants from American industry. K Street is ablaze with proposed subsidies, loan guarantees, tax breaks, and regulatory relief for industries termed "vital" to the anti-terrorist effort. In war-fevered Washington, politicians of all stripes may be too eager to accommodate. The airline bailout was notable not only for its size (its price tag exceeding the combined market value of United, American, Delta, Northwest, US Airways, America West, and Continental), but also the speed and near-unanimity with which it was granted. Senator John McCain warned his colleagues that "[i]f we don t act soon, I m afraid that it will be even more difficult to resuscitate this key industry in the future." The attack has also fueled efforts to protect the American steel industry from lower-cost imports. Noting the renewed importance of steel to national security, Commerce Secretary Don Evans pledged last...

The House Stimulus Package Is An Outrage

Broadcast Oct 25, 2001 It's one thing for the government to give the airline industry $5 billion without strings. More than the market value of the five major airlines put together, and $10 billion in guaranteed loans. The bailout makes almost no economic sense. I mean, even if an airline went bankrupt, the planes and crews wouldn't disappear. They'd just be bought up by another airline. But at least the public understands that airlines have taken a real beating since September 11th, so it's not completely absurd to give them some financial support. The same thing for the insurance industry. Congress is now readying legislation to protect insurers against the financial risk of future attacks. It's not clear why an industry that's in the business of assessing and covering risks should get this kind of handout, but let's give them the benefit of the doubt too. The insurance industry already absorbed $40 billion in losses from September 11th, and who knows how large losses from a future...

The Real Economic Drag

Broadcast April 12, 2001 The biggest drag on this economy -- easily two-thirds of the current slowdown -- comes from the huge drop in business investment. I mean, we re talking about Niagara Falls here. The first quarter last year, business spending was rocketing at an annual rate of more than 20 percent over the year before. By the end of last year, almost nothing. Okay, so why is American business so bearish? American companies invested like mad in the 1990s, expecting that American consumers would follow right along and buy everything that was being produced. But last year American consumers reached their limit. They re deep in debt and can t go deeper. The dirty little secret of the Roaring Nineties is that median family income -- the take-home pay of the middle of the middle class -- didn t rise very much. It went from around $55,000 in 1990 to around $60,000 last year, adjusted for inflation. Most of the Nineties Boom went to families at or near the top. But wealthy families don...

Back To Normal?

Broadcast December 14, 2001 One of the things we're hearing a lot these days from political leaders is "We need to try to get our lives back to normal." None of us can go back to exactly what we were doing before September 11th, of course, and no one's suggesting we should stop grieving for those who died and for the innocence America lost that day. But our political leaders are asking that we at least try to take up where we left off. And step by step, most of us are doing so. . . . Except in Washington. That's the one place in the nation where almost no one is going back to doing what they were doing before September 11th. Prior to that date, you remember the Washington media were obsessed with Congressman Gary Condit and his former intern, who had gone missing. Maybe you know more than I do, but I haven't heard a word since then about the congressman or his missing intern. Meanwhile, you may recall, Democrats and the White House had finally reached broad agreement on legislation...

What's Happening at the Grass Roots

Broadcast November 16, 2001 We hear a lot about a stimulus package coming out of Congress, eventually. Regardless of what combination of tax cuts and spending increases finally emerges, almost everyone agrees that the government has to spur the economy right now. Alan Greenspan and company can't do it alone. Cuts in short-term rates are helpful, but we can't fight this recession with one hand tied behind our back. We also need government to spend more and tax less now. But the federal government isn't the only government in American whose spending and taxing affects the economy. There are also 50 state governments and hundreds of city governments. In fact, if you add up the budgets of all of America's states and cities, you reach almost the same figure as the federal budget, in the order of some $2 trillion this year. In other words, the fiscal policy coming out of Washington is only half of America's fiscal policy. So what's the story with the other half? Are state and local...

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