The Fiscal Grand Canyon (New York Daily News)
January 08, 2013
In an opinion piece in the New York Daily News, Dartmouth’s Andrew Samwick, the Sandra L. and Arthur L. Irving ’72a, P ’10 Professor of Economics and director of the Nelson A. Rockefeller Center for Public Policy and the Social Sciences, says the country has avoided the fiscal cliff only to be faced with a fiscal canyon.
He writes, “as a result of the legislation averting the fiscal cliff, our deficits will be more than twice as high over the next five-year period and nearly three times as large over the next decade. And the ratio of debt to GDP will not have stabilized at a manageable level.
“The frightening cliff imagery, and the apparently permanent state of hysteria in Washington, led to unnecessary panic. After his re-election, Obama could have simply announced as his intended policy that he wanted to go back to Clinton-era tax rates. The important justification would have been that the country needed to move back to a system that could raise enough revenue to cover our expenditures.”
Read the full opinion piece, published 1/6/13 in the New York Daily News.
Professor Samwick’s op-ed was also featured on MSNBC’s Morning Joe.