Robert Reich

Robert B. Reich, a co-founder of The American Prospect, is a Professor of Public Policy at the Goldman School of Public Policy at the University of California at Berkeley. His website can be found here and his blog can be found here.

Recent Articles

AOL-Time Warner's Kingly Prerogative

Any time now, government economists will decide whether America Online's (AOL's) $165-billion proposed take-over of Time Warner is likely to be good or bad for consumers. If good, the government will sign off. If bad, there'll be negotiations with AOL and Time Warner until an agreement can be reached on what the new company would have to do to answer economic objections. The inquiry will be quiet and businesslike, occurring in colorless offices and occasionally in meeting rooms filled not only with economists but also with government lawyers and the counsel and investment bankers representing AOL and Time Warner. I'll save all those economists and lawyers and bankers a lot of time and trouble, and answer their questions right here: Is the combination efficient? Yes. AOL serves about 20 million Internet subscribers. Time Warner serves 13 million cable subscribers and also has a lot of content--magazines, movie and music studios, and...

The Great Divide

D ot-com billionaires are sprouting like spring crocuses, and their money is trickling down through the rich topsoil of America. The average pay of chief executives of major companies rose 18 percent in 1999, to $12 million. (Back in 1990, it was a modest $1.8 million.) Fearful of the dot-com brain drain, big law firms just hiked the pay of first-year associates to $120,000, not including signing bonuses. Wall Street investment banks, facing the same threat, are even raising the pay of analysts just out of college, to more than $75,000. The frenzy knows no bounds. Setting a new moral example for college students across America, the president of Brown University, not content with a meager $300,000 salary, just jumped ship after only a year and a half for another university that offered three times as much. Fed chief Alan Greenspan fears that all this prosperity is causing consumers to buy more than the economy can produce, which means that inflation is just around the corner. So...

Why Business Should Love Gore

I f they were true profit-maximizers--textbook illustrations of rational self-interest--American corporations and their top executives would be flooding Al Gore's campaign with money, and not George W.'s. Rather than gamble on an unknown W., they'd bet on a proven Al Gore. No administration in modern history has been as good for American business as has the Clinton-Gore team; none has been as solicitous of the concerns of business leaders, generated as much profit for business, presided over as buoyant a stock market or as huge a run-up in executive pay. And no vice president in modern history has had as much influence in setting an administration's agenda as has Al Gore. Consider fiscal policy. You'll recall that by 1992, after 12 years of Republicans in the White House, the nation's debt had almost quadrupled, from $914 billion to $4 trillion, and yearly deficits had quintupled from $59 billion to more than $300...

Corporate Power in Overdrive

The New York Times CAMBRIDGE, Mass. -- With last week's reversal of his campaign pledge to limit power plants' emissions of carbon dioxide, a key contributor to global warming, President Bush surrendered to coal companies and utilities dependent on coal. He had little choice. It's payback time, and every industry and trade association is busily cashing in. There's no longer any countervailing power in Washington. Business is in complete control of the machinery of government. The House, the Senate and the White House are all run by business-friendly Republicans who are deeply indebted to American business for their electoral victories. If corporate America understood its long-term interest, it would use this unique moment to establish in the public's mind the principle that business can be trusted. But it's doing the opposite, and the danger for American business as a whole is profound. Credit-card companies are getting a bankruptcy bill that will make it harder for overstretched...

Sacrifice Or Spend?

Broadcast October 11, 2001 Typically in times of war, the public is asked to hold back and forebear from purchasing so there's enough productive capacity left to meet the military's needs. If they don't do it voluntarily, government imposes rationing. Not this time. Even as we wage war on terrorism, our political and business leaders are asking Americans to go out to the malls and buy more. It's our patriot duty, they say. `We mustn't let the terrorists intimidate us from continuing our spending binge.' The fact is we're almost certainly in a recession, which means there's plenty of spare productive capacity, enough both to wage a war and also produce all sorts of consumer goods. Indeed, the recession is likely to worsen unless we utilize more of that capacity. There's no way projected outlays for fighting the war on terrorism will come close. That's why consumers are hearing patriotic calls to spend more. What has economists worried is that, particularly since September 11th,...

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