Cutting the Fiscal Cliff Down to Size

Knowledge at Wharton

Episode Description

Mark Duggan, Faculty Director of the Wharton Public Policy Initiative and a Professor of Business Economics and Public Policy at Wharton, discusses the impact of the "Fiscal Cliff" on the country's near term future.

Brief Summary

Mark Dugen discusses the fiscal cliff, tax implications, and job growth following Obama's election victory.

Key points

  • Understanding the Fiscal Cliff. Mark Dugen explains the implications of the fiscal cliff, which could mean over $750 billion in tax increases and spending cuts.
  • The Urgency of Policy Action. Dugen warns that inaction from policymakers could lead to significant economic consequences as the fiscal cliff approaches.
  • The Complexity of Negotiations. Dugen emphasizes the intricate details involved in negotiating fiscal policies and the potential impacts on the economy.
  • The Need for Economic Growth. Dugen stresses that enhancing economic growth is crucial for reducing the deficit and improving job creation.
  • The Role of Natural Gas. Natural gas currently makes up a quarter of U.S. energy consumption, but could be more with better policies.
  • Renewables' Tiny Share. Renewable energy sources like solar and wind account for only a tiny fraction of energy consumption.

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