fiscal cliff

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The Fiscal Cliff – A Done Deal, But How Good?

As I wrote back in December, everyone understood the need for a deal to be made between President Obama and Congress to avoid going over the ‘fiscal cliff.’ That is, to come to an agreement that would avert the scheduled expirations of a host of tax cuts and reductions in spending on programs like defence and social welfare benefits.

But when it comes to negotiations between this President and his Republican counterparts in Congress, anything can and did happen. Over the course of the roughly two months between the President’s re-election and the final deal being signed on January 2 (technically, after going over the cliff), we saw offers and counteroffers made, concessions made on both sides, and much sniping across the partisan divide.

Irrespective of the details of the fiscal cliff deal, in light of the way both sides conducted their policymaking negotiations, how might one best describe the decision making process on an issue of global economic significance?

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The Fiscal Cliff – Where are we at?

No one ever said being President of the United States was an easy job, and that has certainly been the case for the newly re-elected, President Obama. After a bitterly fought re-election over Republican nominee, Fmr. Gov. Mitt Romney, he was literally back to work the next day, beginning the negotiating to avert the Fiscal Cliff.

 

As I wrote in my article for ESSA’s Equilibrium about this topic, the Fiscal Cliff will involve the expiration of numerous tax cuts, unemployment benefits and across-the-board discretionary spending cuts; a scenario many economists fear will significantly inhibit economic growth in 2013, the exact opposite of what the American economy needs as it slowly emerges out of a sluggish economy recovery and into a more sustained period of economic growth.

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America Votes – 45 Days Out

As Chris travels the United States, he gives his perspective on the latest happenings on the Presidential Campaign and asks, does the data matter all that much?

I have been in the United States for the last week, travelling across the country from Los Angeles to where I am now, in the nation’s capital (with stays in San Francisco and Chicago along the way), and the most lasting impression I have is that this Presidential Election campaign hasn’t taken off.

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