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.
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.
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 euro, the most audacious gamble in the history of currency, has become a
reality. What will this crucial step toward unity mean for Europe, the United
States and the world? The New York Times Op-Ed page asked several experts in economics and observers of European
culture to offer their insights.
Federal Reserve Chairman Alan Greenspan on Wednesday did exactly what he needed to do by dropping short-term interest rates another half-point, but it's not enough.
The Great Economic Slowdown of 2001 (let's not call it a recession quite yet) came on partly because Greenspan raised short-term interest rates too high, starting in June 1999 and continuing through five more rate increases.
Now he's backtracking, and interest rates are going back below where they were when he started. That should give the economy a needed boost.