Category: Fiscal Cliff

How to Escape the Debt Ceiling Limit

EDWARD KLEINBARD, professor of law, USC’s Gould School of Law.

This op-ed originally appeared in the New York Times on Jan. 10.

The fiscal cliff may have been avoided, but an even higher-stakes political standoff — this time, over the federal debt ceiling — is just around the bend.

Congressional Republicans have said they will demand immense cuts to popular government programs in exchange for agreeing to raise the nation’s authorized borrowing limit of $16.4 trillion. The Treasury Department briefly nudged against that ceiling on Dec. 31, but used “extraordinary” financial measures to buy more time. If nothing is done, the government will soon be unable to pay all of its bills in a timely manner. This unprecedented event would profoundly damage the government’s credit rating and send the financial system into a tailspin.

A Ramp Away From the Fiscal Cliff

EDWARD D. KLEINBARD, professor of law, USC’s Gould School of Law.

This op-ed originally appeared at CNN on Nov. 30.

America’s fiscal policy faces an apparent Hobson’s choice. On the one hand, we need to tame federal deficit spending by imposing new across-the-board spending cuts and higher taxes. We are told that if we do not act on this soon, the debt markets will choke on the overabundance of government debt issued to fund those deficits, causing interest rates to climb. As a result, businesses and homeowners will be unable to borrow on reasonable terms, which will lead to a slowdown of the economy.

Warriors on the Edge of a Fiscal Cliff

RON AVI ASTOR, professor of urban social development, USC School of Social Work.

This op-ed originally appeared at CNN.

With the presidential race heading into its final stretch, both candidates vow to protect the sacred promises made to military families. But neither is offering any details on how they might support military families if we hit a fiscal cliff with budget cuts that could wipe out services for military and veterans’ families.

Month after month, in the midst of a heated presidential and congressional pre-election cycle, we see no organized blueprint to integrate millions of military family members into civilian society.