Robert Kuttner

Robert Kuttner is co-founder and co-editor of The American Prospect, a professor at Brandeis University's Heller School, and 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

If You Took an Airplane Recently, You Know Deregulation's a Loser

If you are like millions of Americans who vacationed this summer, you paid top dollar for airline tickets, had little choice of airline, and were rewarded by long delays. But then, when you landed, you became a sovereign consumer again. You had your choice of car rental companies, hotels, and restaurants. You could shop around for the best prices, carefully measuring price against quality, and exercise real buying power. Indeed, at the very same airport where one or two airlines monopolize routes and disrespect passengers, 10 or 15 auto rental companies, often side by side, compete vigorously and courteously for your business. How it is that car rental companies give you plenty of choice and high quality service, but not airlines? The answer is that airlines are not a naturally competitive industry. They require very expensive capital equipment that needs to fly mostly full to be cost effective. Big airlines have the market power to crush little ones. And airlines depend on public...

Comment: Free Fall

I t is hard to believe that the Bush administration could be in so much trouble on so many fronts. Just in the past few weeks, Bush has found himself politically isolated on the issues of stem cell research, offshore oil drilling, prescription benefits under Medicare, patients' rights, access to the United States for Mexican trucks, new "fast track" trade authority, taxpayer aid to religious institutions, and Social Security. When two honest congressmen, Republican Jim Kolbe of Arizona and Democrat Charlie Stenholm of Texas, translated Bush's Social Security program into legislation, the consequences became awkwardly palpable. The measure proposed diverting part of the payroll tax to private accounts. Recognizing the fiscal consequences of this shift, the bill's drafters also proposed delaying the retirement age and trimming Social Security checks. Republicans ran for cover by the dozens. The Republican House Speaker, Dennis Hastert, quickly opposed the bill. Even the White House...

Comment: Diminished Expectations

One of my New Year's resolutions was to clean out my study. I am something of a pack rat. I have research files on every book and major article I've written going back to the 1970s, mostly sorted by topic. Throwing away outdated material under such headings as "budget," "unemployment," "savings rate," and "inflation," I realized just how miscast were so many of the assumptions and policy debates of the century's closing decades. For instance, I have a shelfful of stuff slugged "competitiveness"--ponderous reports from think tanks, transcripts from congressional hearings, clippings, books. America was said to have a "competitiveness" problem, remember? Join the conversation! Discuss this article in Political Prospects , part of The American Prospect's Online Forums . The right had a story. America was not "competitive" because of excess regulation, high taxes on capital, low rates of private...

Comment: Boom Box

This month, the economic boom enters its 107th month, making it the longest expansion in U.S. history. But there are now two small clouds on the economic horizon. With the economy having grown in the fourth quarter of 1999 not at the 3- or even 4-percent annual rate that most economists now consider sustainable, but at 5.8 percent, the Federal Reserve will try to temper the economy's growth. And just to give the Fed ammunition, the oil exporting countries have lately succeeded in restricting output and raising the price of crude oil, which filters through to the measured rate of inflation. Nothing scares central bankers like inflation, never mind whether it has any connection to domestic economic "overheating." The growth rate has soared to levels not seen since the 1960s because the new economy really is new. Technology that took more than two decades to gestate is finally bearing fruit in higher productivity, in applications as diverse as retail sales,...

Of Our Time: Wayne's World

O ur text, fittingly enough, is the editorial page of the Wall Street Journal . At the top of the page for June 3 is an essay by Wayne Angell, the former governor of the Federal Reserve. "Over the past 15 years stock prices in the U.S. have risen at a 15 percent annual rate," he begins. "This long bull market didn't just happen. There is a rational explanation. Economic policy has brought the U.S. to a new economic era—an era of stable money and lower income tax rates." Inflation is at a reassuring 2.5 percent, Angell continues. "The market may have already risen on expectations of a reduction in the nominal capital gains rate." But "if the Federal Reserve allowed inflation rates to escalate, it would be a disaster for the equity market. By my estimate, if inflation rose to 4 percent, the Dow could be expected to fall to 6500. . . . If inflation were 5 percent, the Dow could plummet to 4500." There we have it. The economy is, and should be, run in the interest of the stock market...

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