ROBERT KUTTNER

You can’t make policy on the basis of slogans.

I have tried to suggest that injustice is not necessary economic -- that the economics can work, and has often worked, when the constituency for it is animated. The politics of equality -- that is a little harder.

It is more than a little ironic that "capital accumulation" once a rather tendentious Marxian view of a supposed capitalist obsession, should have become - of all things - Wall Street's own slogan.

When laissez-faire creates instability, the move to a freer market can be something less than pure gain.

Not surprisingly, extensive effort in Britain and America goes into finding tax shelter. the system is "efficient" for the shelter industry, not for the economy.

But of course you can have your cake and eat it, too - if you decide to to bake a second cake. And you may well find that baking two cakes does not take twice the work of baking one.

For over a century, popular struggles in the democracies have used the nation-state to temper raw capitalism. The power of voters has offset the power of capital. But as national barriers have come down in the name of freer commerce, so has the capacity of governments to manage capitalism in a broad public interest. So the real issue is not "trade" but democratic governance.

Henry Ford, in a sense, was the first Keynesian. He paid his assembly workers high wages so they could afford to buy his cars.

Britain, with the most completely socialized health system in the West, now spends the lowest fraction of GNP on health care of any major nation. There are frequent complaints of excessive waits for elective surgery and other inconveniences, but British citizens live slightly longer than Americans, on average, and our overall health conditions are comparable.

In a world where technology and capital are highly transferable, there is a real risk that comparative advantage comes to be defined as whose labor force will work for the lowest wage.

We are already well down the road toward a managed-trade regime. It would be far better to acknowledge that reality, and seek a set of reasonable rules, than to pretend that Ricardian trade is the norm and allow mercantilist states to overwhelm U.S. industry and ratchet down wages, in the name of free trade.

American critics of welfare statism are often surprised to learn that countries like West Germany, with a much more comprehensive welfare state and a statistically larger public sector, have fewer government employees per capita than the United States does.

Technological advance often thrives in sheltered and subsidized markets, which defy free trade.

The economic illusion is the belief that social justice is bad for economic growth.

The Unheavenly Chorus is the definitive study of participatory inequality in America. Marshaling prodigious evidence, the authors show how money not only buys influence directly but also affects associations that are supposed to be democratic antidotes to concentrated wealth. A monumental achievement of careful scholarship, this book offers real knowledge of how politics actually operates.

In practice, a good deal of the outcomes produced by the market reflect nothing more than luck - good or bad.

As a scholarly discipline, economics has always suffered from physics envy.

If Boeing got a big head start on the 707 from multibillion-dollar military contracts to develop an air force transport, is that a sin against free trade?

Technological change is beneficial only when other jobs replace the ones lost.

George Stigler Nobel laureate and a leader of Chicago School was asked why there were no Nobel Prizes awarded in the other social sciences, sociology, psychology, history, etc. "Don't worry", Stigler said, "they have already have a Nobel Prize in ...Literature"

By default, we have created a "system" of nursing-home care for the aged in which middle-class people pay exorbitant rates to for-profit nursing-home entrepreneurs - and then when private resources are consumed and the patient qualifies as a pauper, the nursing home begins billing Medicaid. This is precisely the antithesis of social citizenship; instead of the poor being accorded the dignity associated with the middle class, equality of treatment is achieved by making the middle class undergo pauperization.

Both rich and poor nations have a common stake in policies that put the globe on a sustainable development path. The conflict is less between poor and rich countries than between the broad interests of people and the narrow interests of extractive industries. We need to find our way towards some kind of global regime that reduces emissions of the greenhouse gases, but well-off nations need to transfer the technology to make this possible, rather than viewing this shift as one more opportunity for private industry to profit.

Donald Rumsfeld should not just be impeached. He should be tried as a war criminal. As for Bush, he can be dispatched by the electorate while we are still a democracy.

If social security depresses savings rates, it is only because it is unfunded.