Robert Kuttner

Robert Kuttner is co-founder and co-editor of The American Prospect, as well as a distinguished senior fellow of the think tank Demos. He was a longtime columnist for Business Week and continues to write columns in The Boston Globe. He is the author of Obama's Challenge and other books.

Recent Articles

Deficits: The End of an Obsession

AP Photo/Alan Diaz
The consensus around debt reduction is beginning to crumble. Some straws in the wind are more careful attention to the actual numbers, as well as public conversions by such key players as Larry Summers and Peter Orszag, two former top aides to President Obama, who only yesterday were key members of the deflate-your-way-to-recovery club. Summers wrote a piece in Wednesday’s Financial Times titled “End the Damaging Obsession with the Budget Deficit,” pointing out that the more serious deficits were in jobs, wages, and infrastructure. His former colleague Orszag wrote a piece pointing out that the rest of the budget is in decent shape—the huge outlier is federal health care costs, projected to rise from 5.5 percent of GDP now to 12 percent by 2050. President Obama, in his second inaugural address, had little to say about deficit-reduction as some kind of panacea and more about broadly-shared recovery. In the era of the Bowles Simpson Commission, the Peterson Foundation’s regular...

The President's Running Room—and Ours

AP Photo/Susan Walsh
AP Photo/Susan Walsh P resident Barack Obama won a tactical victory on New Year’s weekend by forcing Republicans to raise taxes on the top 1 percent, but he has far bigger challenges to address—and so do progressives. The economy is still at risk of several more years of hidden depression, with a high level of unemployment and no wage growth. The initial budget deal, thanks to Obama’s post-election toughness on tax increases on the rich and pressure by unions and progressive organizations not to cut Social Security and Medicare, was better than it might have been. But still to come are debates over budget cuts, with Republicans having the leverage of an automatic $120 billion “sequester” for this fiscal year now postponed to early March, if Congress fails to legislate its own additional deficit reduction. In principle, Obama has committed to $4 trillion in budget cuts over a decade, a sum that would be a huge drag on the recovery, leaving too little for the public investment necessary...

How’s That Medicine Taste, Germany?

Oliver Lang/dapd
Germany, the powerhouse of Europe, experienced negative growth in the last three months of 2012, down from a positive growth rate of 3 percent in 2011. Chancellor Angela Merkel, who more than any other leader inflicted austerity on the rest of Europe, is finding that what goes around, comes around. All of the small nations that have bowed to Germany’s austerity demands—Greece, Ireland, Spain, Portugal—are stuck in an even deeper downward spiral. They cut spending, but their deficits increased. Why? Because the hit to employment, consumption, and then to government revenues leaves their economies in deeper distress. This is a path to permanent depression. It is economic madness, a fact recognized by no less than the chief economist of the International Monetary Fund (IMF), the organization that has been Germany’s partner in enforcing austerity. The IMF’s Olivier Blanchard, in a paper released January 1, warned that the negative effects of austerity far outweighed the positive ones. It...

Hagel Faces Down the Neo-Cons

Rex Features via AP Images
It’s terrific news that the neo-conservatives like Bill Kristol and Elliott Abrams, who have been peddling the slander that Chuck Hagel is an anti-Semite, got no traction with leading pro-Israel senators. The announcement by New York senator Chuck Schumer and California senator Barbara Boxer that they will support Hagel signals that the mainstream Jewish community wasn’t buying it, and even that the Israel lobby is split. Well placed sources tell me that the full-page ad in yesterday’s New York Times created by Kristol and company, under the name “The Emergency Committee for Israel” actually backfired. In the ad, Alan Dershowitz is quoted as saying that Hagel speaks the language of “the bigots of Tehran.” The ad evidently failed to sway leading legislators. The Committee’s entire board is Kristol, Gary Bauer (a prominent rightwing Christian supporter of Israel) and Rachel Abrams, a neo-con married to Elliott Abrams. Schumer’s support now makes it safe for other Democrats and moderate...

All the President's Resolve

AP Photo/Carolyn Kaster
AP Photo/Carolyn Kaster President Barack Obama listens to reporters' questions in the East Room of the White House. Three very good signs in the past few days suggest that President Obama has been reading Robert Caro’s latest volume on Lyndon Johnson. The president is handling the debt-ceiling fight very shrewdly, and making the Republicans look both reckless and childish for playing cute with the risk of another financial meltdown. Some of us have been waiting four years for Obama to sound like this: Republicans in Congress have two choices here: They can act responsibly, and pay America’s bills; or they can act irresponsibly, and put America through another economic crisis. But they will not collect a ransom in exchange for not crashing the American economy. The financial well-being of the American people is not leverage to be used. The full faith and credit of the United States of America is not a bargaining chip. Wow! Drew Westen didn’t say that, President Obama did. He’s also...

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