Macroeconomics in the News
In her recent article The 'Go Fast' and 'Go Big' Fiscal Challenges, economics professor Laura D'Andrea Tyson uses a combination of straightforward language and complex terminology to explain the intricacies of our nation's current budgetary crisis. With the January 1st deadline for the so-called "fiscal cliff," a $600 billion package of mandatory spending cuts and tax hikes, fast approaching, Tyson proposes that America's economic plight is actually twofold when the impending debt ceiling debate is also considered. Through a comprehensive analysis of the various factors affecting the debate, including stagnant unemployment rates, entitlement reforms to Medicare, Medicaid and Social Security, and the eventual impact of the Affordable Care Act, the author presents her case for a macroeconomic-based approach to balancing the budget, reducing the national debt, and leveling the playing field in terms of taxation.
If the federal deficit is not reduced in the next decade, it is all but assured that my children will be forced to bear the financial burden of the prior generation's lack of fiscal responsibility. The current recession has been devastating to American families, and especially students, single parents, and other people with limited incomes, so for legislators to willingly push our economy to the brink of a second recession borders on criminal negligence. Rather than resort to petty bickering based on party lines, our elected leaders should heed the objective advice of economic analysts like Tyson, who advise a moderate approach to solving the fiscal cliff crisis. If both sides are willing to recognize the merits of their opponent's position, a balanced budget plan consisting of increases to the marginal tax rate for the highest earners in America, along with necessary spending cuts by government programs that can be streamlined, the federal government can achieve an economic climate similar to the second…
