By Sam Pizzigati, guest columnist

 

Back in 1863, a short story took the American reading public by storm. Edward Everett Hale's, "The Man without a Country" told the tale of a poor treasonous soul sentenced to spend the rest of his life endlessly sailing the world in perpetual exile, as a prisoner aboard Navy warships.

 

Today's awesomely affluent are just as transient -- by choice.

 

Greece's elections have confirmed its role as the worst pupil in the euro-area class. But with all respect to Paul Krugman and others, austerity isn't dead: It's now up to Germany to decide whether to ease up or hold firm and watch Greece leave the euro.

 

The May 6 vote showed clearly that Greeks aren't willing to accept further cuts. Almost 70 percent of voters backed political parties -- from anti-Europeans to neo-fascists -- that oppose sticking to the terms of the two bailouts since May 2010.

 

There's now a high likelihood the country will miss its next deadlines under the 130 billion euro ($169 billion) program it agreed to in February. That means the European Union and other exasperated international creditors may soon have to decide whether to pull the plug, leaving Greece to default and exit the euro. Economists at Citigroup Inc. say the odds of that happening in the next 18 months are now as high as 75 percent.

 

By Michael Kinsley

 

The people at the New York Times Magazine must think that nobody has ever read Ayn Rand, or maybe even Adam Smith.

 

Their cover story on Sunday -- misleadingly titled "Are the Rich Worth a Damn?" -- reports breathlessly that there is this fellow named Edward Conard who believes in free-market capitalism and is willing to fill a gap in the argument we've been having about growing income inequality. Until now there hasn't been anyone, or at least anyone still alive, willing to say publicly that what the U.S. needs is more inequality, not less. (Conard has even written a book about "Why Everything You've Been Told About the Economy Is Wrong.")

 

The argument is basically Smith's, carried to extremes: The invisible hand of free-market capitalism turns individual greed into prosperity for all. But Conard also shares Rand's special twist of portraying the successful businessman as a hero, the Alpha Male at his finest, and everybody else as mediocre deadbeats and leeches.

 

By Mark Thoma

At some point during the recovery, the Fed may face an important decision. If the inflation rate begins to rise above the Fed’s 2 percent target and the unemployment rate is still relatively high, will the Fed be willing to leave interest rates low and tolerate a temporary increase in the inflation rate?

Probably not. Even though higher inflation can help to stimulate a depressed economy, Ben Bernanke, Chairman of the Federal Reserve, is not in favor of allowing higher inflation because it could undermine the Fed’s “hard-won inflation credibility.” And recent Fed communications seem to be setting the stage for the Fed to abandon its commitment to keep interest rates low through the end of 2014. This adds to the likelihood that the Fed will raise interest rates quickly if inflation begins increasing above the 2 percent target even if the economy has not yet fully recovered. 

By Mike Dorning

 

Declining gasoline prices have blunted what only a month ago was one of the leading Republican lines of attack against President Barack Obama.

 

After an almost uninterrupted rise since mid-January, average national retail gasoline prices have fallen 17 cents since April 4, according to the American Automobile Association. The $3.76 per gallon national average yesterday was 20 cents lower than the same day a year ago.

 

A plunge in crude oil markets and gasoline futures Monday suggest further easing ahead for prices at the pump.

 

By Chris Christoff

 

Presumed Republican presidential nominee Mitt Romney returned to his native state of Michigan on Tuesday day to criticize "old school" liberal policies of President Barack Obama that he said have cost the middle class income, jobs and amenities including vacations.

 

Romney, on a day when three more primary victories moved him closer to officially clinching his party's nomination, said he would champion free enterprise, smaller government and more manufacturing jobs.

 

By Patrick Smith

With the elections in France and Greece Sunday, both supercharged by debt, deficits, and economic desperation, Europe is about to take a dramatic new direction.

The eurozone is turning away from stringent austerity policies and toward those that stimulate demand. President-elect Francois Hollande, the first socialist president since Mitterrand, plans to raise taxes on the rich to meet some of his growth objectives.  However, without a credible debt reduction plan, Hollande risks a loss of confidence among investors and bondholders.   

By Rick Newman

Americans generally want smaller government, and the lower taxes that go with it. They're starting to get their wish—but it spells trouble for the broader economy.

The latest jobs data shows that the private sector added 130,000 jobs in April, while the government sector lost 15,000, for a net gain of 115,000 jobs. The longer-term trend is more stark. Since the start of 2011, the private sector has added 2.8 million jobs, while government has shed 280,000 jobs.