Project for Philosophical Evaluations of the Economy |
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Tough decisions don’t come easy
Dialogue with the Alter Ego on the fiscal cliff compromise, drafted and published on Jan. 3, 2013
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Question by Alter Ego of Noah denkt™ (AE): Does Noah denkt™ share the standard view in the international
media according to which the last minute deal, which the US Congress reached to avoid the fiscal cliff evidences
the dysfunctional way in which Washington politics operate?
Answer by Noah denkt™ (Nd): Not at all. We rather believe that the current struggle to reduce the huge US
budget deficit is a battle for the heart and soul of the country. And hence it is only natural, that both parties would
wrestle hard in order to have their interpretation reflected in the final outcome.
AE: But would civilized people not have to accept that in an antagonistic setting no one will be able to impose his
or her own view altogether? And should one therefore not expect from the parties concerned that they find a
middle ground way sooner than they actually did in this case?
Nd: When dealing with fundamental issues the middle ground presents itself only at the last possible moment in
time. In fact, you do need to be with your back to the wall in order to reach the highest degree of clarity as to how
to best deal with subject matters. We, therefore, do not blame the lawmakers for sweating it out until the very
end.
AE: Now, some people would argue that the compromise reached in the wee hours of January 1 only kicks the
can down the road. After all, the real questions pertaining to entitlement spending haven’t even been tackled.
What is Noah denkt™’s opinion here?
Nd: Well, it is true that the most important decisions have been postponed until March 2013. But here again, we
would argue that good things do take their while.
AE: So you are not at all disheartened by the situation?
Nd: Not really.
AE: And how do you think the economy will eventually react to the revamping of the entitlement programs in the
US?
Nd: Well, the necessary reduction here will likely stall somewhat the nascent recovery which we have seen
developing in the last couple of months. But that is something we will have to deal with. And we, i.e. the world
economy, will be able to do that.
AE: So you do not expect a prolonged period of stagnation or even a recession for the US economy?
Nd: No, we would rather expect a continued period of slow growth.
Dialogue with the Alter Ego on the fiscal cliff compromise, drafted and published on Jan. 3, 2013
------------------------------------------------------------------------------------------------------------------------------------
Question by Alter Ego of Noah denkt™ (AE): Does Noah denkt™ share the standard view in the international
media according to which the last minute deal, which the US Congress reached to avoid the fiscal cliff evidences
the dysfunctional way in which Washington politics operate?
Answer by Noah denkt™ (Nd): Not at all. We rather believe that the current struggle to reduce the huge US
budget deficit is a battle for the heart and soul of the country. And hence it is only natural, that both parties would
wrestle hard in order to have their interpretation reflected in the final outcome.
AE: But would civilized people not have to accept that in an antagonistic setting no one will be able to impose his
or her own view altogether? And should one therefore not expect from the parties concerned that they find a
middle ground way sooner than they actually did in this case?
Nd: When dealing with fundamental issues the middle ground presents itself only at the last possible moment in
time. In fact, you do need to be with your back to the wall in order to reach the highest degree of clarity as to how
to best deal with subject matters. We, therefore, do not blame the lawmakers for sweating it out until the very
end.
AE: Now, some people would argue that the compromise reached in the wee hours of January 1 only kicks the
can down the road. After all, the real questions pertaining to entitlement spending haven’t even been tackled.
What is Noah denkt™’s opinion here?
Nd: Well, it is true that the most important decisions have been postponed until March 2013. But here again, we
would argue that good things do take their while.
AE: So you are not at all disheartened by the situation?
Nd: Not really.
AE: And how do you think the economy will eventually react to the revamping of the entitlement programs in the
US?
Nd: Well, the necessary reduction here will likely stall somewhat the nascent recovery which we have seen
developing in the last couple of months. But that is something we will have to deal with. And we, i.e. the world
economy, will be able to do that.
AE: So you do not expect a prolonged period of stagnation or even a recession for the US economy?
Nd: No, we would rather expect a continued period of slow growth.
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| Keywords: fiscal cliff, partisan politics, last minute deal on the fiscal cliff, reform of entitlement spending, revamping of entitlement programs, US budget deficit, reducing the US budget deficit, budget negotiations in Washington, budget deal in US Congress |