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

The Next Battle at the Fed

AP Images/Pablo Martinez Monsivais
AP Images/Pablo Martinez Monsivais W ith the Administration’s stunning decision to name Janet Yellen to chair the Federal Reserve, at least one major government institution will weigh in strongly on the side of economic recovery, right? Well, maybe. First, of course, Yellen has to be confirmed. That, thankfully, seems a good bet. But there is also the problem of three vacancies on the seven-member Fed Board of Governors, which President Obama will soon fill. If the wrong people are appointed to these jobs, Yellen’s ability to aggressively use low interest rates to strengthen the recovery will be destroyed. But why would Obama do that? The Treasury and Wall Street crowd who dearly wanted Larry Summers rather than Yellen will now be focusing on the three other seats. If they can’t get their man in as chair, at least they can narrow the options of the woman who got the job. The same insiders who pressed Obama to go out on a limb for Summers will be pushing hard for Wall-Street-friendly...

Beware a Grand Bargain

AP Photo/ Evan Vucci
W ill President Obama and the Democrats win a major battle only to lose the war? The longterm war that Republicans are fighting is a deadly serious struggle to destroy the most important and valued achievements of the New Deal-Great Society legacy, Social Security and Medicare. Wall Street billionaires like Peter G. Peterson and Stanley Druckenmiller have been softening the ground for decades by claiming that Social Security is bankrupting the country and destroying future prospects of America’s youth. So there is a kind of pincer movement between the scorched-earth Republicans of the Tea Party, willing to shut the government if they don’t get their way, and the more mannered Wall Street Republicans who want to gut social insurance for the alleged good of the country. It adds up to the same thing—cut or privatize the Democrats’ two crown jewels. What’s worse, even though Nancy Pelosi and Harry Reid were able to maintain 100 percent party unity in their House and Senate caucuses in...

A Spine Is a Useful Thing to Have

AP Photo/Charles Dharapak
AP Photo/ Evan Vucci H ow much damage have the Republicans done to themselves going into the elections of 2014 and 2016? And has President Obama resolved to hang tough, not just in this round, but in the one that follows and the one after that? The contrived shutdown crisis proved two things. It proved that Republicans are split down the middle between a lunatic, fundamentalist wing that prefers wreckage to governing and a pragmatic wing often allied with Wall Street. And it proved once and for all that being tough in the face of blackmail beats appeasement that only courts more rounds of blackmail. Business elites applied escalating pressure on the Republicans not to let the United States default on its debt. In the end, 144 House Republicans voted against the measure, and 87 voted for it. That 144, though, exaggerates somewhat the true strength of the Tea Party faction. Some of that vote was a protest against the failure of the Democrats to give anything in return. For now, public...

Take the Fourteenth!

AP Images/Charles Dharapak
Remember the proposals that were current back in 2011 to have President Obama invoke his authority under the 14 th Amendment to keep funding America’s public debt, even without approval from Congress? Well, that proposal has suddenly become highly relevant again, even urgent. Prior to 1917, Congress did not even require periodic legislation to increase the debt ceiling. Statutory approval was added as part of the large increase in World War I borrowing. The 14 th Amendment, approved after the Civil War, included several provisions, but the key one for our purposes was Section 45. It provided that: “The validity of the public debt of the United States, authorized by law, including debts incurred for payments of pensions and bounties for services in suppressing insurrection or rebellion….shall not be questioned.” The intent was to make sure that Union war debts would be paid and Confederate ones would not be. A number of constitutional scholars believe that this provides ample authority...

Tom Friedman’s Worst Column Ever

AP Photo/Mark Lennihan
Sometimes, Tom Friedman writes a column that is such complete baloney it makes you want to retch. Rather than risking soiling my shoes, here is a point-by-point rebuttal to Friedman’s opus du jour, titled: “ Sorry, Kids. We Ate It All .” Friedman’s column swallows whole the budgetary malarkey of the corporate Fix-the-Debt lobby and its Wall Street sponsors. Namely, the reduced horizons of the next generation are the result of the gluttony of old folks—and of unions. But what makes this piece especially appalling (and emblematic) is that the hero of Friedman’s piece is one Stanley Druckenmiller, a hedge-fund billionaire who has appointed himself as the Paul Revere of deficit reduction to warn America’s college students that The Seniors Are Coming. In passing, Friedman discloses that Druckenmiller is also “a friend.” So on top of the absurd logic of the piece, Friedman is guilty of a conflict of interest—using the most valuable real estate in American journalism to do a favor for a chum...