Critique of U.S. Fiscal Cliff Could Lead Global Recession, OECD Says -Kate Higginson

I enjoyed reading Kate Higginson’s interpretation of the article she read about the fiscal cliff. She displays a great knowledge of the issue and the best way to go about getting the economy back on track. We have very similar viewpoints on the topic of the fiscal cliff. I agree with her comment about getting Obama to find some sort of budget agreement with the Republicans. I feel that being bipartisan can find a happy medium instead of upsetting one party more than the other. She makes a valid point to increase taxes, cut spending and have a higher debt ceiling. She discusses consumer confidence, but I do not think that it is one of the bigger issues we face with the fiscal cliff. There are a lot of factors that can contribute to consumer confidence, including things like high unemployment rate. In class we have been discussing the unemployment rate, and if we take the fiscal cliff, we could slow down to a healthier unemployment rate by 2014. The article that Kate read says that the labor market is responding very slowly to the unemployment rate, which Kate also talks about how we have been discussing in class that there is a great deal of uncertainty with the unemployment rate. I agree with her opinion on what responsibilities the Federal Reserve would have if we decide to take the fiscal cliff. In order to eventually get things back to normal and level out, bonds and securities would need to be purchased. Once again Kate wrote a great response to her article and seems to take in interest in the fiscal cliff and what could happen from it.