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

The Fed Transformed

AP Images/Charles Dharapak
AP Images/Charles Dharapak I t is a small miracle that on February 1, Janet Yellen will become chair of the Federal Reserve. She is not just the first woman to head America’s central bank but the first labor economist. While the Fed is ordinarily obsessed with inflation, Yellen has given equal or greater emphasis to unemployment. Yellen represents a break with the Wall Street–friendly senior Obama economic officials who promoted their former colleague Larry Summers for chair. Had Summers gotten the post, the Fed and Treasury would both have been in the hands of the same old boys’ club that coddled the big banks before and after the financial collapse of 2008. That the job went instead to Yellen means the Fed will be an independent power center, and somewhat to the left of the administration. With a four-year term as chair, Yellen will serve at least two years into the next presidency as well. The transformation of the Fed since the economic collapse of 2008, however, is far broader...

A Dubious Budget Deal

The years of Republican obstructionism and the corporate campaign for deficit reduction have taken such a toll that merely the fact of getting a budget deal at all looks like a great achievement. This one is better than continued impasse, but the deal itself is a stinker. Representative Raul Grijanva, co-chair of the House progressive caucus, put it well: “I feel like punching myself in the face, but I’ll vote yes.” The deal does override the automatic sequester for this year. It will restore some $31.5 billion in sequester cut over the next two years in domestic spending, and a like amount in military spending. But those increases are against a backdrop of more than a trillion dollars of cuts over a decade. The deal nominally is deficit-neutral, because it adds new budget cuts in Medicare in 2022 and 2023. Even worse, the deal did not even include an extension of expiring extended unemployment insurance, at a time when the share long-term unemployed is stubbornly stuck. That...

Peter B. Lewis: An Original

AP Images/TONY DEJAK
Peter B. Lewis died suddenly of a heart attack on Saturday at the age of 80. A billionaire chief executive of the Progressive Insurance Company, Peter was a true progressive in his values and his deeds. After his father’s death, Peter and his mother took charge of the company. He became chief executive in his early 30s and built Progressive from a small 100-employee company into America’s fourth-largest auto insurer, with $17 billion in premiums and 26,000 employees. He expanded his market by insuring high-risk customers, deliberately offering price comparisons with competitors, and setting claims promptly. He led Progressive with exemplary transparency. Peter was a philanthropist extraordinaire, supporting the arts, education, progressive politics, and marijuana legalization. Among his causes were the Center for American Progress, the American Civil Liberties Union, Media Matters, and The American Prospect . He was one of the early principals of the Democracy Alliance, a consortium...

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...

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