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

An Ignoble Prize

Eugene Fama, one of the winners of this year’s Nobel in economics, is the fellow who proposed that all markets are efficient all of the time—more precisely that market pricing accurately captures all available information and thus creates “correct” prices. Fama also insisted that there is no such thing as a price bubble. Somehow, the man missed one of history’s great bubbles and the collapse that followed—an epic case of markets getting prices wrong. He also missed the fact that markets have incorrectly priced carbon, leading to global climate disaster, which Lord Nicholas Stern correctly termed “history’s greatest case of market failure.” For this, they give the man a Nobel. What timing! The mind boggles in search of an apt comparison. It’s like giving a posthumous Nobel in physics to Ptolemy rather than Copernicus for demonstrating that the sun revolves around the earth. Or maybe in biology not to Gregor Mendel or Charles Darwin but to Trofim Lysenko, Stalin’s court geneticist, for...

The Task Rabbit Economy

T markets itself as a Web service that matches clients seeking someone to do odd jobs with “college students, recent retirees, stay-at-home moms, [and] young professionals” looking for extra income. The company website calls it “a marketplace dedicated to empowering people to do what they love.” The name Task Rabbit doesn’t exactly suggest the dignity of work, and the love often takes humble forms. Customers hire Task Rabbits to clean garages, haul clothes to the laundry, paint apartments, assemble Ikea products, buy groceries, or do almost anything else that’s legal. The San Francisco–based company, which has raised $38 million in venture capital since it was founded in 2008, makes its money by tacking on a 20 percent surcharge to the fees paid by clients. The firm performs criminal background checks on aspiring Rabbits, who then get access to chore requests posted by customers. Using the familiar metrics of the Internet, the more than 10,000 approved Rabbits are rated...

Enter Yellen

AP Images/Eugene Hoshiko
With President Obama’s belated decision to name Janet Yellen to chair the Fed, several questions arise. First, is Yellen likely to be confirmed? Almost certainly. The Republicans have lost a lot of public support by shutting down the government and playing chicken with the debt ceiling. They are not likely to trifle with the one functioning branch of government. Despite the Republicans’ intermittent uses of the filibuster, I’d be surprised if they went to the barricades to block Yellen. Second, there is the question of whether Yellen will have the same working majority on the Fed’s board of governors and open market committee that Ben Bernanke has enjoyed. There are now three vacancies on the Fed. One will be filled by Treasury Undersecretary for International Affairs, Lael Brainard, a woman who is close to both Larry Summers but also to Dan Tarullo, the progressive Fed governor responsible for banking regulation at the Fed. However, the shift of Fed Governor Sarah Bloom Raskin to be...

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,...