Analysis and commentary on economic news, trends and issues, with an emphasis on Seattle and the Northwest.
November 30, 2012 at 10:00 AM
Vote: Addressing the ‘fiscal cliff’
Ezra Klein offers a clear-eyed view of the negotiations in D.C., calling it an austerity crisis rather than a fiscal cliff, and laying out how many of the “solutions” would be harmful for the economy.
A sensible approach to the austerity crisis would identify mismatched policies — unemployment insurance or disarming the sequestration cuts — that deliver maximum stimulus at minimal cost and then extend, or perhaps even expand, them. With the austerity crisis resolved, and the economy bolstered, we could move onto crafting a long-term budget plan that includes tax and entitlement reform. There’s no real reason that preventing an austerity crisis should be linked to reforming the tax code. There’s no reason at all that raising the debt ceiling should even be a question.
So how would you address the problem:
The fiscal cliff
Read on for the best links of the week and the haiku:
This Week’s Links:
Will we even need central bankers in a few more years? || Foreign Policy
Innovation: Let the good risk-takers get their rewards || The Guardian
Drive to unionize fast-food workers begins in New York || NY Times
If consumers are happy, why is business so miserable? || The Atlantic
Bank of America’s CEO apparently can’t remember anything || Matt Taibbi
In tech centers, talent gap threatens GOP campaigns || NY Times
Is Microsoft’s Surface Pro tablet DOA on price? || Wired
Most face lower tax burden than in 1980 || NY Times
The cult of Amazon: How a bookseller invented the future of computing || Wired
The stunning cost of bad economic ideas || The Atlantic
The BP spill: What’s the monetary cost of environmental damage? || Conversable Economist
The Road to Serfdom: Good Hayek or bad Hayek? || Uneasy Money
Dropping the ball on financial regulation || Simon Johnson/Economix
Today’s Econ Haiku:
Boehner’s autumn tan
Like leaves fallen from a tree
Or golf with the rich
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