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How Washington Caved to Wall Street (TIME)
Roosevelt Institute Chief Economist Joseph Stiglitz argues that Wall Street lobbyists have managed to essentially halt financial reform in the U.S. Banks and the administration are working side-by-side to convince Americans that the financial sector is working safely, but that’s just not true.
Shutdown vs. Default: The Relative Impact (NYT)
Annie Lowrey compares the possible impending results of government inaction. There’s already a plan in place for a shutdown, which would keep things orderly; with no plans for public default, the impact would be messier and far more expensive.
The Day after Shutdown (TAP)
Jonathan Bernstein explains how the bargaining table changes if we hit a government shutdown on September 30. He thinks that if it comes to that, the Democrats will come out on top – but the far right will maintain that they could have won if the GOP had just held out longer.
The House Republicans’ Dangerous New Constitutional Doctrine: Repealing Laws by De-Funding Them (Robert Reich)
Robert Reich points out the unconstitutionality of the current Republican strategy. The Affordable Care Act passed both houses of Congress and was signed into law; if the GOP wants to repeal it, they need to pass a repeal, not refuse to fund it.
How Walmart Got Government Support, Despite Union Pleas (Salon)
Josh Eidelson reports that unions used every connection they had to try to stop White House events promoting Walmart, to no avail. Hiring veterans doesn’t make Walmart a good employer, and selling healthy food doesn’t make it good for communities.
The Idiocy of Crowds (Reuters)
Felix Salmon argues that under new laws that allow for equity crowdfunding, which just went into effect, start-ups that failed to get investors in traditional ways will seek “dumb money” that doesn’t know better. He sees a future full of lawsuits.
- Roosevelt Take: Roosevelt Institute Fellow Georgia Levenson Keohane discusses equity crowdfunding models in her policy note, “Will Crowdfunding Kickstart an Investment Revolution?”
Does the Fed Have a Communication Problem, Or Do Markets Have a Listening Problem? (WaPo)
Neil Irwin suggests that monetary policy is communications, and today we get more information from the Fed then ever before. That view of the inner workings of the Fed means that markets are more aware of how difficult it is to make long-term plans.
New on Next New Deal
Roosevelt Institute Senior Fellow Richard Kirsch argues that leading up to the 2014 elections, Democrats must organize the beneficiaries of the Affordable Care Act to be its spokespeople. Those stories will sell Obamacare – and Democrats – to the voters.