Jeff Faux

Jeff Faux is a distinguished fellow at the Economic Policy Institute, which he founded. His latest book, The Servant Economy (Wiley), was published in June 2012.

Recent Articles

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...

A Trade Deal Built on Sand

T he World Trade Organization finally found a safe place to hold a meeting. Doha, a city in the tiny Persian Gulf sheikhdom of Qatar, is only 1,000 miles from Afghanistan. It is a 9,000-mile flight from Seattle, where two years ago street protestors frustrated the WTO's attempt to set an agenda for another "round" of negotiations over rules for global trading and investment. But this time, on November 14, protected by a detachment of plainclothes U.S. marines in a desert theocracy sealed tight against outsiders, U.S. Trade Representative Robert Zoellick engineered an agreement on an agenda over which 142 countries will negotiate during the next three years. And just in time. Failure would have reinforced growing doubts among both critics and supporters as to the WTO's credibility. Just a few years ago, Renato Ruggiero, the organization's director general at the time, could say with confidence that its rules for global trade were the "constitution of a single global economy." Today,...

Time for a New Deal with Mexico

M exican President-elect Vicente Fox, fresh from a historic victory that ended 71 years of one-party rule in his country, dropped in on U.S. lameduck President Bill Clinton just before Labor Day. He was brimming with ideas for further integrating their economies, including a proposal to open the border to more Mexicans seeking work in the United States. The Clinton White House, which seven years ago sold NAFTA to Congress on the grounds that it would keep Mexican workers out, was unenthusiastic. Fox also visited Ottawa, where he proposed a single continental currency: the U.S. dollar. The Canadian response was frigid. "We're happy to maintain our own currency," sniffed Prime Minister Jean Chrétien. Despite the rebuffs, Fox has opened up a discussion that will not easily be shut down--nor should it be. A former president of Coca Cola Mexico, Fox is a free-trader faced with the reality that NAFTA did not deliver on its promise to raise the...

Solidarity Ever?

Works Discussed in this Essay Stanley Aronowitz From the Ashes of the Old: American Labor and America's Future (Houghton Mifflin Company, 1998). Morton Bahr From the Telegraph to the Internet (National Press Books, 1998). Century Foundation Task Force Report on the Future of the American Labor Movement, 1999. John Sweeney was elected president of the AFL-CIO in October 1995. Frustrated by labor's shrinking share of the workforce, and shocked by the Democratic Party's loss of the House of Representatives the previous November, Sweeney and his allies staged the only successful revolt against a sitting labor federation president in this century. Given organized labor's historic role in supporting the liberal advances of the New Deal and Great Society, progressive precincts of American politics cheered the prospect of a reenergized AFL-CIO. During the first few months of the new regime, Sweeney and his team criss-crossed union halls all over the country preaching a gospel of aggressive...

Is The American Economic Model the Answer?

The financial elites that favor the "American" model -- deregulation, weak unions, and a minimalist welfare state -- ask the wrong question: how to compete against countries with lower wages and living standards.

N ot too many years ago, the conventional wisdom was that Europe and Japan did it all right, and the United States did it all wrong. And everything that could be learned, we could learn from them, and indeed, they had nothing to learn from us. Now, the new conventional wisdom is just the opposite; we're doing everything right, and Europe and Japan are doing everything wrong. Neither of those positions is correct. -- Secretary of Labor Robert Reich, Detroit Jobs Conference, March 14, 1994. T he economic elites of most advanced nations now believe that the United States offers the best model for competing in the new global economy. As commonly formulated, the argument holds that, compared with Europe, the United States has: Created more jobs. Thus, according to a recent commentary in the Washington Post: The record is unmistakably clear. Since 1970 the U.S. economy has generated 41 million new jobs. . . . By contrast, the European Union -- the new name for the European Community -- has...

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