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KMC » 11am - Dec 14, 2012
Dean Baker: The Biggest Myth in Obama-GOP Spending Showdown is the "Fiscal Cliff" Itself As...
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Dean Baker: The Biggest Myth in Obama-GOP Spending Showdown is the "Fiscal Cliff" Itself As negotiations continue between the White House and House Speaker John Boehner, leading economist Dean Baker joins to discuss the myths about the so-called fiscal cliff. With little more than two weeks before the deadline, President Obama insists on an immediate increase in the top two income-tax rates as a condition for further negotiations on changes to spending and entitlement programs. But Boehner said Washington's "spending problem" is the biggest roadblock to reaching a deal, and has urged the White House to identify more spending cuts. "This idea that if we do not get a deal by the end of the year we will see the economy collapse and go into recession, that is totally dishonest," says Baker, the co-director of the Center for Economic and Policy Research. "The basis for this is that we don't have a deal all year -- the fact that you do not have a deal December 31 does not mean that you do not get a deal by December 31, 2013." Published on Dec 14, 2012