Higher taxes won’t much improve US finances and would likely wreck the economy. But as fiscal cliff talks intensify, a small group of Republican senators are prepared to help President Obama make the rich pay more – facts notwithstanding. A better approach: Spur private-sector growth.
Timothy Geithner sees the world through the eyes of Wall Street rather than Main Street, Reich writes, which complicates fiscal cliff negotiations.
The political and economic ramifications are too big for Washington to let the large tax increases and spending cuts take effect. But this doesn't necessarily mean lawmakers will craft a decisive solution to the nation's fiscal woes.
The nation's problem is not the deficit but a lack of good jobs and sufficient growth, Reich writes.