Economy

Magnificent Trespasser

Albert Hirschman, an economist who became one of the greatest of the 20th century’s moral philosophers, died Tuesday at age 97. Hirschman’s intellectual odyssey took him from the study of eastern European economies under Hitler to work as a development economist for the Federal Reserve Board, then in Latin America in the 1950s and 1960s, as an adviser to the Colombian Planning Ministry, and then to engagement with the enduring questions of economy and society from the 1970s until illness suspended his active life. Along the way he taught at Yale, Columbia, Harvard, and the Institute for Advanced Study.

The Republican Bait-and-Switch

Detroit Regional Chamber / Flickr

One striking thing about Governor Rick Snyder’s successful push for a right-to-work law in Michigan—and Scott Walker’s similar push against public employee unions in Wisconsin—is that they relied on bait-and-switch tactics.

Not Another Wall Street Puppet

AP Photo

In his first post-election press conference, President Barack Obama said voters had awarded him only one mandate: to help middle class families and those striving to reach the middle class. In line with fulfilling this charge, the administration’s top priority would be creating manufacturing jobs and rebuilding the nation’s schools and infrastructure. An early bellwether of the president’s commitment to this will be his selection of a replacement for Timothy Geithner, who is expected to step down as Treasury secretary early next year. The nomination presents an opportunity for a White House course correction, finally putting Main Street ahead of Wall Street.

The Billionaires' Long Game

AP Photo

I keep hearing that the billionaires and big corporations that poured all that money into the 2012 election learned their lesson. They lost their shirts and won’t do it again.

Don’t believe that for an instant.

It’s true their political investments didn’t exactly pay off this time around.

Yep, Washington Is Out-of-Touch

Kevin Burkett / Flickr

Like Mike Allen and Jim VandeHei at Politico, Charlie Cook does a nice job of unintentionally revealing the huge blindspots of our business elites:

While the vast majority of major corporate leaders either backed Mitt Romney last year or stayed neutral, they don’t really see the Republican Party as the good guys and Democrats as the bad guys. They see the whole political and governing process as dysfunctional. They believe that even the smart, well-intentioned, and economically sophisticated policymakers on both sides of the aisle are rendered almost powerless by the extremists.

The Fiscal Cliff Proxy War

Flickr/Talk Radio News Service

Washington has a way of focusing the nation’s attention on tactical games. We almost never get to debate or even discuss the big problems because the tactical games overwhelm everything else. The debate over the fiscal cliff, for example, is really about tactical maneuvers preceding a negotiation about how best to reduce the federal budget deficit. This, in turn, is a fragment of a bigger debate over whether we should be embracing austerity economics and reducing the budget deficit in the next few years or, alternatively, using public spending and investing to grow the economy and increase the number of jobs.

Labour’s Rise

The leader of the British Labour Party emerges as a true political leader

(Press Association via AP Images)

On that emotionally charged day in Manchester in late September 2010 when Ed Miliband narrowly beat his brother David to become the new leader of the British Labor Party—largely thanks to trade union votes, Conservatives rejoiced. The younger Miliband, they thought, was too woolly and too left-wing to lead a Labor resurgence; they considered David a much tougher opponent.

In opposition since May 2010, after 13 years in government, Labor faced a twin struggle: to convince voters to take them seriously as stewards of the economy again and to make their new leader, only 40 and with relatively thin ministerial experience at the time of his election, plausible as the country’s next prime minister.

It's All About the Tax Brackets

Google

Conservatives might think otherwise, but the liberal focus on repealing the upper-income Bush tax cuts has less to do with higher taxes for their own sake, and more to do with revenue—we need it—and basic distributional concerns: The rich have been extremely well-served by the economy, taking a huge percentage of all income produced since 1979.

This Is Not Wisconsin. It's Worse.

Sheldon Dick/Farm Security Administration

Let’s clear one thing up. “Right to work” laws, which permit employees working at a unionized workplace to refuse to join the union or to pay the union the cost of representing the worker, are designed to weaken the economic and political power of organized labor and, by extension, wage workers. Full stop. They allow workers to “free ride” all the benefits of a collective-bargaining agreement (increased wages, benefits, rights to adjudicate a dispute with a supervisor, safety and health requirement beyond those mandated by the Occupational Safety and Health Administration, etc.) negotiated by the union without paying any of the union dues their fellow employees pay.

Michigan: A Right-to-Work State?

AP Photo

Labor never ruled Michigan as such. It may have been home to the best and biggest American union, the United Auto Workers, but even at the height of their power, the UAW could seldom elect its candidates to Detroit city government. Still, the UAW dominated the state’s Democratic Party and much of state politics for decades—at least, until the auto industry radically downsized.

Bobby Jindal Makes a Splash with Terrible Ideas

Derek Bridges / Flickr

The title of this post is harsh, but when you consider the actual effects of the policies he endorses in this Politico op-ed, it's fair to wonder if he's trying to provoke a combination economic/constitutional crisis.

Forget the Fiscal Cliff—We've Got Other Problems

Flickr/DonkeyHotey

The “fiscal cliff” is a metaphor for a government that no longer responds to the biggest challenges we face because it’s paralyzed by intransigent Republicans, obsessed by the federal budget deficit, and overwhelmed by big money from corporations, Wall Street, and billionaires.

If we had a functional government America would address three “cliffs” posing far larger dangers to us than the fiscal one:

The child poverty cliff.

Folks Like Me

(Flickr / 401(K) 2012)

When President Obama calls for raising taxes on the top 2 percent, he has a habit of declaring that, “Folks like me” should pay higher taxes. He used the phrase dozens of time during the campaign, and just this week again in an interview on Bloomberg.

Either someone on the president’s speechwriting staff has a tin ear, or Obama himself does.

For starters, the comment puts unnecessary distance between the president and the citizenry. It signals: I am not like most of you. I am far wealthier.

An End to Debt Ceiling Shenanigans?

Center for American Progress

Via Matthew Yglesias, Gene Sperling, director of the National Economic Council, explains one of the administration's key demands as deals with Republicans on the fiscal cliff—an end to the debt ceiling as a negotiation tool:

News Flash: Americans Still Don't Understand Deficits

Business Insider

At Business Insider, Walter Hickey reports results from an online survey (commissioned by the website) that show a public muddled over the consequences of going over the fiscal cliff. Per the survey, 47.4 percent of Americans said that the deficit would increase if we went over the cliff, only 12.6 percent say that it would decrease.

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