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from Anatole Kaletsky:

Despite election results, reason still rules Europe

anatole -- french student

When can a vote of 25 percent be described as a “stunning victory” or even a “political earthquake”?

According to the European establishment, it’s when these votes go to a rabble of odd-ball extremists, ranging from overt racists and even disciples of Adolf Hitler to unreconstructed Stalinists and comically naïve anarchists.

However, the most alarming symptom of political breakdown revealed by the European parliament election is mainstream politician’s hysterical reaction to a perfectly predictable -- and justifiable -- upsurge of populist anger after the euro crisis.

anatole -- unemploymentAfter all, people have suffered five years of unnecessary hardship as a result of misguided economic policies. Why then should anyone be surprised that tens of millions of voters decided “to give their governments a kicking” as British Prime Minister David Cameron put it? Especially when the European elections provided an ideal opportunity for people to vent their anger with national governments, with no risk of letting the populists get anywhere near true power.

from The Great Debate:

Elites focus on inequality; real people just want growth

kochs & warrenThe economic debate is now sharply focused on the issue of income inequality. That may not be the debate Democrats want to have, however. It's negative and divisive. Democrats would be better off talking about growth -- a hopeful and unifying agenda.

Democrats believe income inequality is a populist cause. But it may be less of a populist issue than an issue promoted by the cultural elite: well-educated professionals who are economically comfortable but not rich. There’s new evidence that ordinary voters care more about growth.

from The Great Debate:

Populism? Where are the pitchforks?

Americans are in a surly mood, confronting rules they feel are rigged against them. President Barack Obama captured this populist temper in his re-election campaign.  He then launched his second term declaring that inequality is the “most pressing challenge of our time,” and laying out a popular agenda to raise the federal minimum wage, provide pay equity for women, establish universal pre-school and other initiatives that polls show the public strongly supports.

Republican obstruction, however, has blocked progress on all these -- even as the House GOP last week passed Representative Paul Ryan’s budget, which cuts taxes for the rich and corporations, turns Medicare into a voucher program, slashes spending on education and protects subsidies to Big Oil.

from The Great Debate:

The first woman president is not about the past

Want to know the latest meme in U.S. politics? Here it is: Hillary Clinton is a candidate of the past.

It's been spreading through the political press. Now Republicans are beginning to echo it.

from Lawrence Summers:

On inequality

Inequality has emerged as a major economic issue in the United States and beyond.

Sharp increases in the share of income going to the top 1 percent of earners, a rising share of income going to profits, stagnant real wages, and a rising gap between productivity growth and growth in median family income are all valid causes for concern. A generation ago, it could have been plausibly asserted that the economy’s overall growth rate was the dominant determinant of growth in middle-class incomes and progress in reducing poverty. This is no longer plausible. The United States may well be on the way to becoming a Downton Abbey economy.

from The Great Debate:

Populism: The Democrats’ great divide

One day after President Barack Obama called for moving forward on trade authority in his State of the Union address, Senate Majority Leader Harry Reid (D-Nev.) declared, “I am against fast track,” and said he had no intention of bringing it to a vote in the Senate.

Reid’s announcement came after 550 organizations, representing virtually the entire organized base of the Democratic Party outside of Wall Street, called on Congress to oppose fast track. Though obscured by the Democrats’ remarkable unity in drawing contrasts with the Tea Party-dominated Republicans in Congress, the debate between an emerging populist wing of the Democratic Party and its still-dominant Wall Street wing is boiling.

from The Great Debate:

Troubled Ties: The Clintons and populism

What's behind the sudden outburst of populism in the Democratic Party?

Partly the weak economic recovery. Most economic indicators have turned positive -- economic growth is up, unemployment down, the housing market is in recovery. But ordinary Americans are not feeling it. In last month's CNN poll, two thirds of Americans said the nation's economy was poor. More than half expect it to remain poor a year from now.

People at the top of the income ladder have been raking in the money while wage growth for working Americans has stagnated. That's a recipe for a populist explosion.

from The Great Debate:

Searching for a real populist

In the American political lexicon, few words are as prevalent -- or as confusing -- as “populism.”

Senator Elizabeth Warren (D-Mass.) gets described as a populist because she wants to curb the power of corporations and increase Social Security benefits. So does Senator Ted Cruz (R-Tex.), who thinks small businesses are crippled by “an explosion of regulation” and has called Social Security a “Ponzi scheme” that should be replaced by individual savings accounts.

from The Great Debate:

Clinton: The newest New Democrat

Democrats have a history of plucking presidential candidates out of obscurity: Jimmy Carter, Michael Dukakis, Bill Clinton, Barack Obama. Republicans are supposed to go for whomever is next in line, particularly if they have run before: Richard M. Nixon, George H.W. Bush, Bob Dole, John McCain, Mitt Romney.

It looks like just the opposite for 2016.

In the latest Iowa poll, Hillary Clinton completely dominates the Democratic field with 56 percent of the likely caucus vote (she came in third in the 2008 Iowa caucuses, behind Barack Obama and John Edwards). No other potential Democratic candidate gets more than single digit support. It's Clinton's turn.

from James Pethokoukis:

More on the Obama bank tax

My pal John Carney takes a crack at it:

1) Let's start with the idea that we're going to tax banks based on "riskiness." How on earth do we expect the government to assess this? The government has an absolutely awful track record when it comes to assessing risk. Before the crisis, regulators put in place mandatory capital requirements that they believed were "risk weighted." The result was the massive over-indulgence in risky mortgage backed securities that almost destroyed the financial system. A risk tax would just result in new pressure for banks to adopt the regulatory view of risk. No thanks.

2) The other idea floating around is that the tax would be levied on "bank profits." That means the government would wind up in the same position as shareholders pushing for short-term gains

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