Georgia Tech Economics Professor Thomas "Danny" Boston reacts to this week's deal that allowed the country to avert the fiscal cliff.
On both sides of the aisle, it was a forced agreement occasioned by the hyped up panic regarding the fiscal cliff – that is automatic spending cuts and tax increases that would have kicked in with the start of the New Year.
It was like a shotgun wedding where one party enters into a relationship hastily, not because of a mutual understanding, but because of an external threat. Had we hit the fiscal cliff, the effects would have hurt but not nearly as much as advertised. There would have been time and opportunity to cut a deal to remove more uncertainty regarding the country’s current and future debt. Instead, we panicked and struck a problemmatic deal.
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