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Should Obama pick Larry Summers to head the Fed? (Politico)
Roosevelt Institute Fellow Mike Konczal writes that while Ben Bernanke led the Fed through a crisis, his successor will need to build consensus and establish the central bank’s new normal. That’s a problem given that Summers hasn’t said a word about the biggest debates he’ll have to settle.
Even as economy rebounds, income inequality festers (MoneyWatch)
Charles Wilbanks notes that most American remain deeply dissatisfied with an economy in which workers at the bottom see their wages fall while those at the top are making money hand over fist. And to add insult to injury, taxpayers are forced to subsidize their bosses’ raises.
- Roosevelt Take: Read the new Roosevelt Institute white paper in which Dr. Susan Holmberg and Lydia Austin examine the tax code loophole that has allowed executive compensation to skyrocket.
The day the right lost the economic argument (Salon)
Michael Lind argues that President Obama’s Knox College speech offered a strong and broadly appealing summary of progressive economic theory focused on manufacturing, innovation, infrastructure, and education, while the House Republicans’ alternative plan offered nothing in particular.
- Roosevelt Take: Senior Fellow Richard Kirsch writes that while Obama’s speech had a strong narrative, it won’t mean much unless he backs it up with an executive order to help workers.
Some Democrats Look to Push Party Away from Center (NYT)
Jonathan Martin writes that as Democrats contemplate their future post-Obama, many are advocating for a populist approach to economic policy, financial reform, and rising inequality rather than the murky middle ground that the party’s leaders have settled for since the ’90s.
White House hardens stance on budget cuts ahead of showdown with Republicans (WaPo)
Zachary Goldfarb and Paul Kane report that the Obama administration may force a government shutdown come September if Republicans in Congress refuse to undo sequestration and continue to demand deeper cuts to a budget they’ve already carved to the bone.
Congress to Fed: End Too-Big-to-Fail Already! (MoJo)
Erika Eichelberger notes that Dodd-Frank requires the Fed to implement rules to scale back its emergency lending powers, but three years since the law was passed, the central bank still just says it’s working on it. Things like this don’t happen overnight. Or even over 1,095 nights.
Why 17 liberal senators voted against the student loan “deal” (MSNBC)
Suzy Khimm writes that while the Senate finally passed legislation to address the doubling of federal student loan interest rates, progressives weren’t willing to swallow a compromise that lowered students’ rates now while guaranteeing they’ll have to pay even more in the future.