Question

Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the major issues. What are some of the fiscal solutions that he mentions tweaking?

Davidson describes two fundamentally different economic philosophies that both impact the debt crisis that the US faces. What are these philosophies? Do you agree with one more than the other?

While Davidson outlines several issues that the parties are actually not terribly divided on, he also outlines two issues that are hyper-partisan. What are these fiscal issues and why do you think that the parties are so divided? Do you lean towards the Democrat or Republican view on these issues?

Towards the end of his talk, Davidson discusses a fear. What is this fear? How does this fear, as well as his entire discussion of the fiscal cliff, relate back to economic factors that influence our personal finances?

Answer 1

QUESTION 1.
Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways are as follows:
I. Raise social security retirement age
II. Reduce medicare for wealthy seniors
III. Raise medical healthcare contributions


QUESTION 2.
According to Davidson, the republican and the democrat philosophies are two fundamentally different economic philosophies that impact the debt crisis faced by the United States. In his opinion, the republicans want a system in which the government’s only job should be to create an efficient society, whereas the Democrats aim at making sure that everyone lives in an “equitable, fair society”. I think I would agree more with the Democrat philosophy because equity and fairness to everyone is a key public value outcome in every society.



QUESTION 3.
The two fiscal issues that are hyper-partisan are as follows:
I. Military defense spending.
II. Issues of taxes
- The parties are so divided chiefly because they have extreme opposites points of view on several issues.
- On the issues, I lean towards the Democrat view.


QUESTION 4.
Towards the end of his talk, Davidson says he fears that the longer we delay any solution, the more the world will look to the U.S. not as the bedrock of stability in the global economy, but as a place that can't resolve its own fights. He explains that the higher interest rates are going to be, the quicker we're going to have to face a day of horrible calamity.

Answer 2

What We Learned from Teetering on the Fiscal Cliff

1. Based on what Davidson says, how would you describe the term ’fiscal cliff’?

- Fiscal cliff is a situation that a particular, financial factors causes threats and severe economic decline.

2. Davidson describes two fundamentally different economic philosophies that both impact the debt crisis that the US faces. What are these philosophies? Do you agree with one more than the other?

- According to Davidson, the republicans and the democrats as philosophies are two fundamentally different economic philosophies that impact the debt crisis facing the US. I agree more with the republican side of things, life can't always come with an aim of everything being "equal" and "fair".

3. Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the major issues. What are some of the fiscal solutions that he mentions tweaking?

- Davidson mentions tweaking the fiscal solutions of raising the social security retirement age, reducing medicare for wealthy seniors, and raising medical healthcare contributions.

4. While Davidson outlines several issues that the parties are actually not terribly divided on, he also outlines two issues that are hyper-partisan. What are these fiscal issues and why do you think that the parties are so divided? Do you lean towards the Democrat or Republican view on these issues?

- The fiscal issue consists of US debt. The parties are so divided because Democrats are saying raise government taxes and the Republicans say lower government spending and government taxes.I lean more towards the Republican view on the issues.

5. Towards the end of his talk, Davidson discusses a fear. What is this fear? How does this fear, as well as his entire discussion of the fiscal cliff, relate back to economic factors that influence our personal finances?

- Davidson fears that the longer the solution is delayed, the more the world will look at the United States as a place that can't resolve its own fights. The higher the interest rates become, the faster the horrible calamity will come.