Martin Feldstein: Economy Could Fall Into Recession Under Obama’s Plan
Former advisor to Ronald Reagan and Harvard University Economist Martin Feldstein was interviewed on Fox Business yesterday and said he agreed with Fed chairman Ben Bernanke that if we go over the “fiscal cliff” the economy will fall into recession. Feldstein warned that even if we don’t go over the cliff president Obama’s proposals could cut growth by two percent and possibly send the economy into recession. These include raising taxes and closing deductions for high income individuals, raising the corporate tax rate, and eliminating the payroll tax holiday.
Feldstein also commented on additional factors challenging an assumption of two percent growth in 2013 and what Ronald Reagan would do now.