By Rachel Goldfarb, originally published on Next New Deal
Click here to subscribe to Roosevelt First, our weekday morning email featuring the Daily Digest.
The Politics of Economic Stupidity (Project Syndicate)
Roosevelt Institute Chief Economist Joseph Stiglitz says the economy's "near-global stagnation" is the result of "stupid politics," meaning austerity policies that slow demand.
For the past six years, the West has believed that monetary policy can save the day. The crisis led to huge budget deficits and rising debt, and the need for deleveraging, the thinking goes, means that fiscal policy must be shunted aside.
The problem is that low interest rates will not motivate firms to invest if there is no demand for their products. Nor will low rates inspire individuals to borrow to consume if they are anxious about their future (which they should be). What monetary policy can do is create asset-price bubbles. It might even prop up the price of government bonds in Europe, thereby forestalling a sovereign-debt crisis. But it is important to be clear: the likelihood that loose monetary policies will restore global prosperity is nil.
Follow below the fold for more.
It's 'Pathetic' What Politicians Have To Do To Stay In Office (HuffPost Live)
Roosevelt Institute Senior Fellow Robert Johnson discusses the State of the Union and campaign financing, noting that fundraising makes our government less healthy.
The Most Dangerous Man In American Politics (Buzzfeed)
Ben Smith says that U.S. Attorney for the Southern District of New York Preet Bharara has proven he's willing to cross not just Wall Street but his own political party in pursuing justice.
The Government Just Took a Step Toward Ending Mass Homelessness (ThinkProgress)
Allowing Fannie Mae and Freddie Mac to contribute to the National Housing Trust Fund could mean a small but steady supply of cash for building affordable housing, reports Bryce Covert.
McDonald's Sued Over Claims Workers Were Fired From Store With 'Too Many Black People' (The Guardian)
Jana Kasperkevic reports on the lawsuit, filed by 10 former McDonald's employees in Virginia, which tries to hold the parent company accountable alongside the franchise owner.
Americans Overwhelmingly Want Paid Sick Time, Even if It Lowers Their Wages (WaPo)
Christopher Ingraham counters the common conservative argument that mandatory sick leave will lead to lower wages with data that shows workers support sick leave anyway.
New on Next New Deal
After Four Decades with Roe, U.S. Women Still Need Abortion Access, and So Much More
Roosevelt Institute Fellow Andrea Flynn and Shulie Eisen look at Kansas as an example of how economic inequality intersects with lack of access to reproductive care to create a crisis for women.