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

Krugman Boots One

Paul Krugman has played an indispensable role challenging the conventional wisdom during the financial crisis and the slump that followed. He has been proven right again and again in his brilliant debunking of austerity as the cure for recession. Therefore, it was astonishing to read a rare, truly wrongheaded Krugman column in Monday’s New York Times . The offending column is titled “ A Permanent Slump? ” In it, Krugman proposes that something fundamental—something structural—has changed in the economy so that the new normal is what economists call “secular stagnation,” or as Krugman puts it, “a persistent state in which a depressed economy is the norm, with episodes of full employment few and far between.” As I read through the column, I kept waiting for the pivot. Surely Krugman was setting up this claim as a straw man, the better to demolish it. But, no. Krugman evidently buys this view. Even worse, the expert whose research he cites in defense of this thesis is one Lawrence...

Fruits of Republican Folly

AP Images/J. Scott Applewhite
The Republicans badly damaged themselves with their contrived government shutdown and debt crisis, but it remains for the Democrats to drive home their advantage. Will they? Based on the cost to the Republican brand and the pressure from corporate elites not to harm the economy, the days of shutdowns and games with the debt are probably over for the foreseeable future. If the Tea Party faction tries to repeat these maneuvers, House Speaker John Boehner would likely permit a free vote again, and enough Republicans would vote with Democrats to keep the government open. The Republicans seem hopelessly split between a Tea Party faction that relishes governing crises and a more mannered corporate faction that kills government softly. But the GOP is still one party when it comes to destroying government as a constructive force in the economy and society. Since Barack Obama took office, the two Republican factions have complemented each other in a successful “good cop, bad cop” effort to...

Bretton Woods Revisited

AP Images
AP Images O n July 22, 1944, as allied troops were racing across Normandy to liberate Paris, representatives of 44 nations meeting at the Mount Washington resort in Bretton Woods, New Hampshire, created a financial and monetary system for the postwar era. It had taken three weeks of exhausting diplomacy. At the closing banquet, the assembled delegates rose and sang “For He’s a Jolly Good Fellow.” The fellow in question was John Maynard Keynes, leader of the British delegation and intellectual inspiration of the Bretton Woods design. Lord Keynes, the world’s most celebrated economist, was playing a tricky dual role. He had proposed a radical new monetary system to free the world from the deflationary pressures that had caused and prolonged the Great Depression. Bretton Woods, he hoped, would be the international anchor for the suite of domestic measures that came to be known as Keynesian—the use of public spending to cure depression and the regulation of financial markets to prevent...

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...

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