December 11, 2012
Fiscal Cliff Poker: Call Obama's Bluff!
The president and the speaker of the House are playing poker. The imagined stakes are whether we go over the "fiscal cliff" on January 1, 2013. The actual stakes are the direction of the country -- whether we will see any GDP growth, put our people to work, and get out of the doldrums of the past four years, and whether the president will be able to demoralize the Republican Party and make it easier to take the country farther left. There have been several good suggestions for compromise along the lines of Simpson-Bowles. (See for example Glenn Harlan Reynolds's advice in USA Today.) However, even if the suggested strategy worked, which is not a sure thing, deficits would continue for many years into the future. Some pundits think the president will gain most of what he wants by "going over the fiscal cliff." Taxes will go up for just about everyone, and sequestration cuts Defense more than any other part of the budget. The theory is that the...(Read Full Article)