Robert Kuttner

Game, Set, Obama

(AP Photo/David Goldman) President Barack Obama laughs as he talks with audience members after the second presidential debate at Hofstra University. President Obama did what he needed to do tonight. He took the debate to Mitt Romney. He was relaxed, even jaunty, as he scored one point after another. He seemed to be enjoying himself at Romney’s expense. He looked more comfortable and commanding as the debate wore on, while Romney looked more stiff, edgy, and salesman-like. Obama needed to remind voters that Romney is a very rich man out of touch with regular people, and he did that well. He got in Romney’s face and he got under his skin, but stopped just short of being overly aggressive. You could tell right from the beginning that this was a very different Obama. When Romney touted his five-point plan to fix the economy, Obama responded scornfully, “Governor Romney doesn’t have a five-point plan, he has a one-point plan” and that plan is more tax breaks for the very rich who are...

Obama's Town Hall To-Do List

Here’s what President Obama needs to do tonight: Show leadership, resolve, and toughness Directly call Romney on his evasions and deceptions Demolish several of Romney’s outright lies Not pass up several opportunities to make points, as he did in the first debate Not make any major mistakes Take advantage of any Romney blunders Specifically: Refute Romney's claims that the Benghazi attack was Obama’s failure, and shame Romney for trying to make political hay of it Destroy Romney’s credibility on the budget, tax cuts for the wealthy, and Social Security Press Romney directly on which tax loopholes he’d close Remind voters that Romney is an out-of-touch rich guy, whose new-found identification with regular working people is a sham Associate Romney with Republican blockage of Obama’s efforts to promote a stronger economic recovery Push Romney hard on issues where he has changed his position or denies his real current position, such as abortion rights Demolish Republican talking points...

(Fiscal) Cliffs Notes

(Flickr/Matthew Wilkinson)
The most bizarre thing about the deficit and the campaign is the fact that the risk of a fiscal cliff—which everyone agrees will crash the economy—is being used to justify a slightly smaller fiscal cliff. There are several players here, so the arguments are worth sorting out. Herewith, some Cliffs Notes: What is the fiscal cliff? It comes in three parts. On January 1, the Bush tax cuts expire. This means that in the first pay period of the new year, more taxes are taken out of everyone’s withholding. Second, the temporary two-point cuts in payroll taxes expire too, so everyone’s Social Security and Medicare taxes go up as well. Third, the dreaded “sequester” of automatic budget cuts, the toxic fruit of the Republican blockade of a normal budget deal back in 2011, kick in. Oh, and extended unemployment benefits expire, too. What would all this fiscal tightening do to the recovery? It would create a new recession, according to the Congressional Budget Office (CBO), Fed Chairman Ben...

Nailing Jell-O to the Wall

Biden did a lot better than his president did in the first debate. But Obama still needs to hammer home all of the inconsistencies and evasions in the Romney-Ryan positions on such key issues as Social Security, Medicare, and taxation. Between moderator Martha Raddatz’s questioning and the vice-president’s persistence, the viewer just about grasped that the Romney-Ryan arithmetic was entirely bogus when the Republicans claim that there were $5 trillion worth of loopholes that can be closed to pay for new tax cuts without cutting programs, giving further breaks to the rich, or increasing the deficit. But Biden did not quite demand in so many words: Which loopholes would you close? What would they add up to? And (since the Republicans have no plausible answer) why aren’t you telling us? The Romney-Ryan position that these details would be worked out with Congress is, in Biden’s term, malarkey. But the viewer had to be paying careful attention to appreciate the full phoniness of the...

Obama: Giving Away Social Security

(AP/Rex Features)
Here is Mitt Romney’s proposal to cut Social Security benefits, from the Romney campaign website : First, for future generations of seniors, Mitt believes that the retirement age should be slowly increased to account for increases in longevity. Second, for future generations of seniors, Mitt believes that benefits should continue to grow but that the growth rate should be lower for those with higher incomes. In other words, cuts in benefits. In the first debate, I was waiting for President Obama to go to town on this. Instead, Obama had this to say: LEHRER: "Mr. President. Do you see a major difference between the two of you on Social Security?" OBAMA: "You know, I suspect that, on Social Security, we’ve got a somewhat similar position. Social Security is structurally sound. It’s going to have to be tweaked the way it was by Ronald Reagan and Speaker — Democratic Speaker Tip O’Neill." He’s got a similar position to Mitt Romney’s? On Social Security? Does this man just want to hand the...

Those Unemployment Numbers

President Obama gets a lift from a relatively positive employment report for September. The nation gained 114,000 jobs, and the unemployment rate declined to 7.8 percent, the lowest since Obama took office. Earlier disappointing figures were revised upwards, by 40,000 for July and 45,000 for August. All this gives Obama some bragging rights, and heads off what would have been a withering attack had the news been bad. But Obama makes a mistake by emphasizing what the progress the economy is making. Median household incomes are down, young people face rough going as they enter the job market, and the elderly have dwindling pension coverage and almost no returns on their savings in a zero interest rate environment. It would be much better to emphasize the mess that he inherited from the Republicans, the fact that every effort he has made to produce a stronger recovery has been blocked by the opposition, and the dismal 30-year trend of worsening inequality and rising insecurity. The...

Crying Fraud, Then Creating It

(AP Photo/The The Hutchinson News, Travis Morisse, File)
For once, the Republicans were right. They have been obsessively claiming that voter-suppression measures are necessary because of widespread “ballot fraud.” However extensive investigations by the mainstream media have shown that ballot-fraud is a convenient myth . Even the Bush administration, in an extensive five-year search, turned up no evidence of the kind of voting fraud—fake IDs, voting in the name of dead people, folks being bribed to vote—that the Republicans routinely allege. Republicans, evoking the tactics of the pre-civil rights segregationist South, simply want to make it more difficult for people who might support Democrats to exercise their right to vote. Some five million people, mostly minorities and the poor, are at risk of being denied their right to vote in 19 states controlled by Republican governors and legislatures, according to a report from the Brennan Center. Happily, the courts have struck down the most extreme of these measures, in Texas, Ohio, Wisconsin...

Good News, Bad News on the Economy

The Obama administration got good news and bad news on the economy Thursday. The bad news: The Commerce Department revised the economic growth rate downward, to just 1.3 percent in the second quarter of 2012, down from an earlier estimate of 1.7 percent. That’s close to stall speed, not nearly enough to generate enough jobs or income growth. To add to the administration’s bad day, durable-goods orders dropped 13.2 percent in August. The good news: The Labor Department revised the job-creation numbers upward, including an impressive 386,000 in March. (But March was a long time ago.) Housing prices finally hit bottom, according to several reports, and have started to rebound. Still, these are not good numbers. If the government doesn’t radically change its economic policy, we will face a protracted slump for years to come. The only thing that could alter the trajectory is fiscal policy—not the grand bargain to cut the deficit that Messrs. Bowles, Simpson, and a platoon of corporate CEOs...

Pain in Spain

(AP Photo/Andres Kudacki)
The European authorities seem determined to drive the continent into a repeat of the Great Depression. The European Central Bank keeps playing a cute game designed more to impress the Germans than the financial markets or to provide real relief. Mario Draghi, ECB president, offers to buy unlimited amounts of the bonds of states that are being pummeled by speculators, but then undercuts his own offer by conditioning it on punishing austerity. In Spain, in the days after Draghi’s latest pronouncement, the rate on government bonds briefly fell, but is now rising again as markets realize that Draghi’s conditions make it impossible for any elected government to accept the offer. Meanwhile, unemployment is rising to record levels and Spain’s depression keeps feeding on itself. Draghi’s game reminds me of a battery-operated novelty toy I had when I was a kid. It was a mysterious box with a switch. When you turned on the switch, the lid opened, a mechanical hand came out of the box, and...

The Party That Can't Shoot Straight

(Flickr/PBS Newshour)
By all accounts, this was the Republicans’ election to win: an economy stuck at a level insufficient to generate enough jobs or income gains; a somewhat disillusioned Democratic base; and a stunted generation of young adults who supported Barack Obama last time by a margin of 71-29 and are unlikely to do it again. Yet Obama’s lead keeps widening. It’s worth unpacking why. The most obvious reason, of course, is the sheer clumsiness of Mitt Romney, God’s gift to the Democrats. If a computer had been asked to generate a candidate guaranteed to alienate independents and divide his own base, it could not have done better. The far right’s effort to “let Ryan be Ryan” only shines a spotlight on the unpopularity of the GOP’s designs for Medicare and Social Security, while Romney’s serial gaffes lead Senate candidates in swing states to disparage their party’s nominee and right-wing commentators to weep. Another reason is that demographic trends are relentlessly moving in the Democrats’...

Romney's Negative Coattails

Former governor Mitt Romney’s serial gaffes seem to be doing cumulative damage not just to his own campaign, but to Senate and even House races. In the days since Romney’s clumsy attempt to make political gain from the murder of Ambassador Chris Stevens, Politico’s piece revealing ineptitude and finger-pointing at the Republican National Convention, and the leak of the infamous “47-Percent” video, Democratic Senate candidates in most contested seats have opened up leads, according to usually trustworthy polls. In Massachusetts, Elizabeth Warren is up by six points over Scott Brown. Tim Kaine leads George Allen by seven or eight points in Virginia. Tammy Baldwin is at least even with Tommy Thompson in Wisconsin. And in Florida and Ohio, incumbents Ben Nelson and Sherrod Brown have benefitted from the swing of support to Obama and are holding solid leads. Once long shot Democratic senate candidates in Missouri and North Dakota now seem competitive, partly due to local gaffes by their...

Romney’s Bigger Lie

Lots of Republican conservatives, Paul Ryan and Bill O’Reilly among them, have taken the position that even if Mitt Romney’s rhetoric was clumsy, his point was basically right. Some Americans pay taxes; others collect benefits. But his basic claim was total baloney. When you count income taxes, payroll taxes, excise taxes, and highly regressive state and local taxes, the typical lower income working American pays about one-fifth of his or her income in taxes—more than Mitt Romney! According to a study by Citizens for Tax Justice, the bottom fifth of the income distribution paid 17.4 percent of their income in state and local taxes. The second-poorest fifth paid 21.2 percent. There are in fact about 18 percent of Americans who pay neither federal payroll nor income taxes. They are overwhelmingly the unemployed and the low-income elderly, neither of whom pay payroll taxes. As pollster Celinda Lake observes, Romney’s big lie is very important to refute. Even if voters reacted negatively...

We Are the 47 Percent

(AP Photo/Mary Schwalm)
(AP Photo/Mary Schwalm) The former Massachusetts governor speaks to delegates at the New Hampshire Republican Convention in Concord, N.H Saturday. Mitt Romney is the gift that keeps on giving to Democrats. The ancient Greeks had word for it—a phrase, actually: Character is Fate. In one misstep after another, Mitt keeps revealing his true character. What we’re learning about him is that he is another rich guy who is disdainful of ordinary people; that he can’t speak off the cuff without blundering; and that he is clueless when it comes to foreign policy—not to mention ordinary diplomacy. A lovely pattern has set in. Mitt says something truly dumb and alienating to ordinary Americans. The campaign goes into panic mode, and can’t decide whether to walk it back or double down. Meanwhile, some militant conservatives insist that their clueless candidate had it exactly right, as Bill O’Reilly tried to do on Fox News last night. Romney was statistically correct, O’Reilly insisted. 47 percent...

Ben Bernanke, the Newest Avenger

(AP Photo/Manuel Balce Ceneta)
Ben Bernanke’s announcement Thursday that the Fed would keep easing money sent the stock market soaring, but more important was his declaration that there is only so much the Federal Reserve can do. The Fed’s latest move, approved by the policy-setting Open Market Committee, will buy a total of $85 billion in bonds every month, including $40 billion per month of mortgage-backed securities. This pumps vast sums into the economy. It is the equivalent of printing money. Bernanke’s hope is to drive down interest rates generally, especially on home mortgages. The Fed will also extend its policy further into the future and keep interest rates close to zero through 2015. But as Bernanke himself put it, monetary policy alone can’t fix what’s broken. The more important tool in a severely depressed economy is fiscal policy. And here is where Bernanke is truly playing against type. The usual script calls for a Fed chair to demand fiscal tightening in exchange for liberal interest-rate policy. It...

Europe: Old Austerity in New Bottles

In late July, European Central Bank (ECB) President Mario Draghi, speaking off the cuff in London, pledged to do “whatever it takes” to save the Euro, including massive intervention in bond markets to keep speculators from extending the Greek disease to Spain and Italy, where interest rates were ominously rising. This impressed money markets for a few days—until investors realized that Draghi’s commitment came with big strings. Strapped countries benefitting from these purchases would first have to double down on austerity. No thanks, said the leaders of Spain and Italy. On September 6, Draghi tried once more. After more than a month of consultations with his own board and national leaders, he declared that the ECB would make unlimited purchases of short term government bonds. He claimed “a massive majority of the [ECB] governing council for this concept.” But the council member who mattered most, Bundesbank President Jens Weidmann, remained adamantly opposed. A Bundesbank press...

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