Photo: Twitter, Stephanie Kelton
UMKC economist Stephanie Kelton thinks all of the conversation surrounding the fiscal cliff is focusing on the wrong things.Congressional leaders and the White House are trying to forge a deal between Republicans and Democrats on an agreeable mix of spending cuts and tax hikes that won’t have such significant economic effects that it would send the country into recession.
Politicians have dubbed this scenario the “Grand Bargain,” and Kelton says it’s what everyone wants to see.
However, Kelton says a “Grand Bargain” really just means “austerity,” and she says there is an alternative to the “Grand Bargain” that would put people back to work, upgrade U.S. infrastructure, and put the American economy on a better trajectory in the long term.
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