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 Debtors' Prison: The Politics of Austerity Versus Possibility. He writes columns for The Huffington Post, The Boston Globe and the New York Times international edition. 

Recent Articles

Budget Roulette: The Uncertain End Game

AP Images/Carolyn Kaster
AP Images/Carolyn Kaster This budget crisis, weirdly, has nothing to do with the budget. It is the expression of the Tea Party Republicans’ animus against Obamacare, their general loathing of government, and their willingness to resort to wildly destructive tactics. As Senate Majority Leader Harry Reid, one of the few heroes in this mess, put it so aptly, “They’ve lost their minds.” A fine irony is that one of the few things that the government shutdown doesn’t affect is the Affordable Care Act, which takes effect today. The Act is a mandate to purchase affordable insurance via hybrid “exchanges,” which are not closed by the failure to approve a budget. In a just world, the extremist Republicans would take the fall. Republicans as conservative as Dana Rohrabacher of California, who came to prominence as an ally of the John Birch Society, and arch conservative Karl Rove, have warned that the Republicans are courting political suicide. “What we’re doing here is shooting ourselves in the...

Obama’s Foreign-Policy Realism

AP Images/Meisam Hosseini
AP images/Meisam Hosseini President Obama’s attempted rapprochement with Iran and Syria takes him full circle, back to the Obama of the 2008 campaign and the Obama who was (prematurely) awarded the Nobel Peace Prize. Evidently the United States is now willing to foreswear the use of force if these still-nasty regimes will give up weapons of mass destruction. It’s both a remarkable shift, and a low bar. This new course presents a tricky set of diplomatic challenges. It falls squarely within the school of foreign policy known as realism: give up on ideals that are unattainable and focus on those that serve core national interests and that can be achieved at proportional cost, even if that means making peace with regimes you detest. In modern times, Henry Kissinger, sponsor of détente with China, was the great advocate of realism—with the notable exception of the failed crusade in Vietnam. Realism says that we should try to get along with even brutal status-quo powers, not topple them,...

The Fed Stays the Course

AP Photo/Susan Walsh
F inancial markets rallied when the Federal Reserve defied the rumor-mongers and resolved to continue its program of keeping interest rates very low until the unemployment rate improves. There was only one dissenting vote on the Fed’s policy-setting open market committee. What’s going on here? Ever since the run-up to the collapse of 2008, what’s good for Wall Street hasn’t exactly been good for the rest of the economy. Are these ultra-low interest rates just pumping up more financial bubbles, as critics fear? Or does a still weak economy need this form of stimulus? Think of it this way. There are risks to continuing a policy of very easy money, but premature tightening would be even worse. The markets and the pundits got this one wrong because the hawks in the Fed system had been leaking rumors that they had the votes and that the Fed would soon be “tapering” (pulling back) its program of $85 billion-a-month in bond purchases. Chairman Ben Bernanke, to appease the hawks, lent...

Shutdown Report: How to Play Chicken and Lose

AP Images/J. Scott Applewhite
AP Images/J. Scott Applewhite R epublicans are likely to incur serious political damage in their effort to hold hostage continued funding of the government in exchange for deep spending cuts. This routine has become an annual ritual, and in the past President Barack Obama has been the first one to cave. The 2011 Budget Control Act, which includes the automatic sequester, is one bitter fruit of the president’s past failure to hang tough in the face of Republican extremist demands. But this time is different. The Tea Party Republicans, who dominate the GOP House Caucus, are demanding that President Obama de-fund the Affordable Care Act in exchange for their willingness to fund ordinary government spending in the new fiscal year, which begins October 1. But they picked the wrong demand. In the past, Obama was willing to make deep cuts in federal spending in order to get a budget deal with Republicans. The Affordable Care Act, however, is a nonnegotiable for the president. It’s his...

Did Summers Spoil It for Yellen?

AP Images/Mark Lennihan
AP Images/Mark Lennihan Now that Larry Summers is out of contention for chairman of the Federal Reserve, the nomination of Janet Yellen should be assured. Unfortunately, Yellen still is far from a safe bet. Her qualifications, certainly, are not in doubt. Yellen is currently vice chair of the Fed and before that she was president of the Federal Reserve Bank of San Francisco. She has had a distinguished academic career, which she interrupted to serve as chair of President Clinton’s Council of Economic Advisers, and after that, as a governor of the Federal Reserve. Yellen is better positioned than any other woman to break the glass ceiling that has kept the Fed from having any female chair throughout its century-long history. Yellen, who began her scholarly career as a labor economist, has also been outspoken about the need for the Fed to continue its policy of economic stimulus to help strengthen the faltering economic recovery. Nobel Laureate Joseph Stiglitz, who preceded her as chair...