Friday, November 9, 2012
Krugman Tells Obama: Don't Make A Deal
http://www.businessinsider.com/krugman-on-the-fiscal-cliff-2012-11. Due 13 November 2012. What will happen if we "fall off" the fiscal cliff?? Why does Krugman take the position that a "deal" is bad for America? How do you think this situation should be handled? (Use economic knowledge in your answers)
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If we fall off the fiscal cliff, a recession will not instantly occur. It will be a slow decline until a deal is made. Krugman believes that a big deal is a bad idea because the Republicans are trying to blackmail the president into making a deal that benefits them. Also, there is no rush to make a deal, because the cliff will not have much effect on the economy until a month after the new year. Thus, Krugman believes that he should take his time in making a deal. Krugman said "no deal is better than a bad deal". I agree with Krugmans idea, because this deal is very important to the U.S economy, or else we will fall into another recession.
ReplyDeleteMost of the warnings concerning the fiscal cliff are "political blackmail" by the Republicans. Falling off the fiscal cliff will not spell out disaster in the short-term. The Republican party simply wants to extend the Bush tax cuts, a failed economic endeavor. Krugman says not to make a deal because there really is no "cliff." Though it will hurt the economy, it will do so incrementally, and as a result the damage can be easily reversed. Krugman does not want President Obama to make this deal because it would weaken Obama's political standing and continue a destructive economic program (the Bush tax cuts). I believe that we should renew the payroll tax cuts and let the Bush tax cuts expire. Ultimately, it will do more good than harm, as the rich will contribute more in the form of taxes. I think if we can keep growth at 3% by balancing the expiration of the Bush tax cuts with the renewal of Payroll tax cuts, then we can ultimately achieve normal growth and help the economy reach full employment (where it is currently heading).
ReplyDeleteIf we fall of the fiscal cliff, the world will not end and our economy will not self-destruct. Instead, we will have a gradual decline until we deal with the issues. Krugman believes making a deal would be bad for America because the Republicans are trying to force Obama into extending the Bush tax cuts, and benefiting them and the rich only. So, with a slow reaching effect on the economy, the cliff does not need to be dealt with right away and by making rash decisions. I think we as a country should let the Bush tax cuts expire and create a solution afterwards. That way, we make a deal that benefits all and will have everyone in every class pay their fair share in order for the continued growth of our economy.
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ReplyDeleteThe end of times will not come to pass if we "fall of" the fiscal cliff. In fact, economist believe it to be mmore of a slope than a cliff, and the danger faced by going over the "cliff" to be very gradual. Krugman believes that a deal would be bad for America, because we simply giving the in to threats by the GOP. As it stands the GOP is holding the American economy hostage and threating to pull the trigger if they dont get their tax cuts for 1%, which if you ask me is simply stupid and childish. But that is the Republicans agenda, and if they are not willing to budge to the demands of the people that the wealthy should pay their fair share, even if it is a little more than they pay now, then the President should stretch his hand out to far across the isle. If the President were to make a deal, Krugman suggest that it would most likely be a bad one because it would include tax cut on on the wealthy and other toxic issues that lead us into the recession in the first place. I agree with Krugman on the idea that the President should reliquish his party victory to the hands of the GOP just to meet the fiscal cliff deadline. He should hold his ground and stand up for what he, his party, and the majority of the US population believes in, and not buckle under the selfish threats of the Republican party.
ReplyDeleteIf we fall off the fiscal cliff, we won't drop dead. It won't be a instant recession like how CNBC exaggerates but it will just slowly get worse and worse. Krugman says that the deal is bad for American and that Obama should not rush it since both parties are still arguing and have not agreed upon a compromise. I think this situation shouldn't be where Republicans are threatening to tank the economy until their demands are met. But it is handled like that...We need to find a solid compromise, both parties need to be on the same page and perform what is needed to not fall off the cliff.
ReplyDeleteFalling off the fiscal cliff does not mean the end of the world. We will slowly decline until the issues are dealt with. Krugman believes that making a deal will be bad because the Republicans are simply trying to extend the Bush tax cuts benefiting the rich once again. I believe that the Bush tax cuts should expire and then a new solution be made, to benefit not just one party or set of individuals throughout the country. However, only a reasonable deal should be made.
ReplyDeleteIf we fall off the fiscal cliff, we won't immediately go into a recession. Our economy will be on a decline until a "deal" is made. Krugman says a big deal isn't a wise decision. He says the Republicans are aiming to blackmail Obama into making a type of deal catered towards them. On top of that, there's no reason for the deal to be made hastily. The cliff won't have a big effect on the economy until January/February of 2013. Therefore, Krugman thinks we should wait longer with making a deal. He said "no deal is better than a bad deal". I agree with Krugman. The deal is very important for our economy. Otherwise, our economy will end up going into another recession.
ReplyDeleteJaime Caldaro
ReplyDeleteIt wouldn't immediately cause a recession but it will cause us to steadily decline. Until someone is willing to make a "deal." Krugman believes that making a large deal will be bad, because the Republicans are trying extend the Bush tax cuts for the wealthy. I agree with Krugman that the Republicans are trying to black mail Obama and he shouldn't make a large deal with them. This is an important issue that shouldn't be compromised on quickly.
Going off of this so-called "fiscal cliff" is not the end all be all. It is not going to cause an immediate plunge of our economy, however it will cause it to progressively get worse and worse. The good news though, is it is reversible early in the year. Krugman takes the position of "no deal" because the deal that the GOP are trying to force on Obama really is being FORCED. They are trying to blackmail Obama into reinstating the tax cuts for the wealthy put in place by the Bush administration. Krugman is saying don't rush into because there is still time to make a decision and not making one is not immediate "death" to our economy. The Bush policies should be allowed to expire and then properly thought out decisions and actions should be made afterwards for the betterment of the country. Not for the betterment of the wealthy and by the power of the GOP.
ReplyDelete-Jacob Hochman
America has the chance of falling deeper into a recession if we "fall off" the Fiscal Cliff. Krugman is saying "no deal" not only because this isn't a fair offer, but it is also being blackmailed into Obama's hands; meaning, the Republicans are trying to achieve a goal they failed to achieve previously, through Obama. The Republicans want things to go their way and this may happen if America makes the "deal". "Hitting the fiscal cliff would not be a huge catastrophe right away" so Obama should take the time there is to truly think about the outcome of each decision, to see which is a healthier choice for America's future.
ReplyDeleteContrary to what "falling of a fiscal-cliff" might sound like, if we were to fall off of this metaphorical fiscal-cliff our country would not take an immediate economic hole. A recession would not be immediate and it also would not mean the end of things for this country. What would happen is that our country's economy would begin to gradually decline. Krugman believes that America should not make any deals right now because of pressure from the Republican party in government right now. I agree with Krugman's rationale because it makes more sense to hold off for awhile than to make an "in the moment" decision and drive the country's economy into the ground again.
ReplyDeleteIf the United States Economy were to have "fallen off the fiscal cliff" it wouldn't mean we would fall into a recession like people take it as but it would just mean that the spending cuts and tax breaks from previous years are expired. When Krugman advises President Obama not to take the "deal" he is advising him to not be so "gentle" so to speak with the Republican controlled House of Reps. which means that President Obama should not succumb to the pressures of the Republican party. I believe that Krugman is correct with his opinion because the Republicans have been the ones holding the U.S. back from truly moving forward
ReplyDeleteFalling off the fiscal cliff would not be a catastrophe right away however, this is a problem. Both policies of Obama and Bush are set to expire and will in the future. However, deals such as increasing taxes and budget cuts will lead America right back into the recession all over again. The fiscal cliff, Krugman says will not be like a debt ceiling default. A debt ceiling default has an instant catastrophe, the fiscal cliff will slowly worsen.
ReplyDeleteIf the Untied States fell off the Fiscal Cliff then i dont think it would cause a recession instantly but i think it would make us slowly decline in our economy. Krugman tells the President not to take the deal of tax breaks and spending cuts because he sad that Obama should stand up to the Republicans house of Representatives. I agree with that statement because i feel republicans have been holding this country from moving forward and making the strides and progressions we could be making.
ReplyDeleteIf our economy falls off the fiscal cliff, we would feel the effects immediately, however, our economy would slowly perish. Increased taxes and budget cuts are likely to lead America back into the recession we are easing out of. Krugman claims the fiscal cliff will not be like a debt ceiling default, meaning it would not lead to an instant catastrophe.
ReplyDeleteFalling off the fiscal cliff will not be catastrophic. The problems will not come immediately and can be nipped in the bud early! Krugman commented that such a deal will just be an attempt by the GOP to blackmail the president and get what they want done, which is tax cuts for the rich. Krugman believes that the same results will come from either affirming a deal or negating one. I strongly believe that there must be efforts made to get some compromise between the branches; such a compromise where both parties can reap benefits as opposed to only one party. Allow congressman and senators to be more politico, rather than like trustees or delegates. This will enable more legislation to be passed, provide for more inter-congressional agreements, and they can still get what they want passed.
ReplyDeleteThere isn't really a cliff. It is more like a slope, the economy will over time slowly get worse, however, this makes the economic plight easily reversible. Krugman believes no deal is better than a bad deal and that a slowly declining economy is better able to be fixed as opposed to a debt ceiling default. Therefore, Obama can take his time and make an effective deal after January 1st and not haste and give in to the Republicans who wants to carry on "Bush's legacy". I personally think Obama should take his time in making a deal because the economy will get slowly worse but it'll be easy to bring back up instead of making a bad deal and plunging head first into the waters.
ReplyDeleteIf we fall off the fiscal cliff, we could slowly be pushed into a recession again. However, as Krugman says, there isn't really a "cliff" and it won't be as bad as rushing a bad deal that is worse in the long run. I agree with Krugman that Obama should just hold out and not take the deal because the deal could harm the economy more than no deal.
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