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.
Broadcast Oct 5, 2001 Alan Greenspan is pushing on a wet noodle. The Fed has repeatedly cut interest rates since January and nothing's happened which means that we shouldn't expect this week's half percent rate cut to have much impact either. Even figuring in the normal time lag between a rate cut and response, the fact is this economy just isn't responding. Luckily the car has two accelerators. If the Fed's monetary policy isn't enough, there's fiscal policy. This week, the president lent his support to a stimulus package of between $60 billion and $75 billion in the form of additional tax cuts and spending. Now the good news is that the White House and Congress are no longer obsessing about saving the Social Security surplus or indulging in any other accounting fiction. The national economy is near or in a recession, and Washington understands that now is the time for government to spend more and tax less even if that means temporarily going into the red. The bad news is that...
Los Angeles Times Senate Democrats have managed to whittle George W 's tax cut from $1.6 trillion to $1.2 trillion. Big deal. Last year, Bill Clinton vetoed a $700 billion tax cut. And once the Senate tax bill goes to conference with the House, it's sure to be back up there where Bush wants it. Democrats can't fight Bush's tax cut with nothing but an admonition that it's "too large." They need to put something else on the table that's important to working Americans -- and which won't be possible if the surplus is used for Bush's tax cut. That something is universal health care. Besides, what better time than now to revive the idea of universal health care? There's a huge budget surplus. Meanwhile, the number of Americans lacking health insurance continues to rise (now almost 43 million, up from 38 million ten years ago). And those who have it are paying more than ever in co-payments, deductibles, and premiums. About 28 million households now spend more than 10 percent of their pay on...
The Financial Times
Like generals preparing to fight the old war, the world's central bankers are
still obsessed with inflation. They should be looking forward to the real
Look around the world and what you see are identical policies in favour of
trimming public spending, cutting debt, raising interest rates and squeezing
Euroland has made deficit reduction the ticket to admission. The
International Monetary Fund still screams "austerity!" at any hint that capital
may flee a developing nation. And in the US, the Delphic and venerable Alan
Greenspan, the US Federal Reserve chairman, told the Senate banking
committee last month that the Fed would continue to evaluate "whether the
full extent of the policy easings undertaken last fall to address the seizing-up
of financial markets remains appropriate as those disturbances abate".
Translated: If we do anything over...
Broadcast August 24, 2001 The butcher metaphors of modern management are back: cutting out the fat, slicing to the bone, getting leaner and meaner. Well, all this butchering may slow the slide of stock prices, but it's not a way to build long-term competitive strengths. The fact is, the key competitive assets of most companies these days is their people, not their machines or plants or even their patents, but their employees. Their employees' intellectual capital, knowledge about the companies' products, services and technologies. Their employees social capital, relations they built up over the years with clients and customers. And inside the company, relationships among employees who've become a team. And beyond the intellectual and social capital is what might be called trust capital, the sense among employees that the company will be there for them when times are tough, so that employees are willing to go the extra mile, make that extra commitment because they feel loyal to the...
The Wall Street Journal T he Congressional Budget Office, in a report released yesterday, says the government will be forced to take $9 billion from the so-called Social Security surplus in fiscal year 2001 to make ends meet. The news undoubtedly will elicit a new round of fancy-dance explanations from the Bush administration for how it plans to avoid dipping into the Social Security surplus next year, and will add more fuel to the Democrats' charge that the president's tax cut has put Social Security in jeopardy. Expect the decible level to grow when Congress returns to Washington and both sides go to battle over the 2002 budget. Numbers Racket No one ever said political rhetoric over economic policy would edify the public, but we have reached a new low. The plain fact is that the economy has slowed faster than anyone predicted, and so tax receipts are shrinking faster than anyone projected. This is the mirror image of what happened when the economy grew faster than anyone imagined,...