Thoughts on the Fiscal Deal

Mark collected some reactions to the fiscal deal.  Brad DeLong doesn’t understand the Obama Administration: The big reason to make a deal before January 1, 2013 was that detonating the “austerity bomb” would impose 3.5% of fiscal contraction on the U.S. economy in 2013, and send the U.S. into renewed recession. It was worth making […]

The Only Way Left to Beat Republican Fanatics: Call Their Bluff and Go Over the Cliff

President Obama is cutting his Christmas holiday short, returning to Washington for a last attempt at avoiding the fiscal cliff. But he’s running headlong into the Republican strategy of fanaticism. It’s a long-established principle of game theory (see Thomas Schelling’s classic 1956 essay in the American Economic Review) that a fanatic who restricts his freedom to […]

Kill the “fiscal cliff” instead of the Economy

Everyone now agrees that the so-called “fiscal cliff” is a stupid policy that threatens our economy and our people.  Everyone agrees why the “fiscal cliff” is stupid – it inflicts austerity at a time when it is likely to throw the nation into a gratuitous recession.  Causing a recession leads to increased unemployment and a […]

Romney? 100% Chance Of Recession!

In the entire history of official recession dating (beginning in the 1850’s) there is a startling fact: Every newly-elected Republican President has brought a first-term recession.  All of them.  “Always and only” as we hear from a popular data-mining pundit. You can check out the list of GOP Presidents here.  And the official recession dating here.  I […]