Over the weeks ahead, President Obama will be taking his case to the people for raising tax rates on the rich. It will be an epic game of chicken. Blink first, and you will own the next economic recession.
With each passing day, European leaders are proving that deficit hysteria wrapped in an austerity flag is a losing proposition. Indeed, the Romney campaign learned that very same lesson last week. There is no fiscal cliff. It is an illusion created by Republicans to scare America in to shredding Social Security, Medicare, Medicaid, and government in general.
Paul Krugman makes the point in today's column. I hope Senator Hagan finds the time to read it.
Contrary to the way it’s often portrayed, the looming prospect of spending cuts and tax increases isn’t a fiscal crisis. It is, instead, a political crisis brought on by the G.O.P.’s attempt to take the economy hostage. And just to be clear, the danger for next year is not that the deficit will be too large but that it will be too small, and hence plunge America back into recession.