The US economy appears to be in good shape, but that is because the European economy is in bad shape. Many risks jeopardize the US economy, beginning with the fiscal cliff – automatic spending cuts and the termination of tax cuts on January 1, 2013, unless the President and Congress reach a deal – and which would send the US back into recession. Following President Obama's reelection, it is clear that the old-new administration will continue fiscal expansion, but it remains to be seen if the Democratic President can formulate policies with a Republican-controlled House of Representatives. Equally important, can the US draw up a long-term consolidation plan that will ensure the gradual reduction of the deficit and debt, which have become unsustainable. Other risks abound: monetary tools are running out, the European economic crisis and the Chinese economic slowdown persist, unemployment is rising, social problems are worsening, protests are spreading, and inequality is widening, all of which are undermining the stability of the US economy. Will the US economy exploit its momentum in 2013 to continue its relatively rapid growth which began in the second half of 2012, or was this a lull before the return of another painful cycle of low growth?

Participants:

Prof. Jack Mintz, Professor and Palmer Chair in Public Policy, Calgary University, Canada
Prof. Tyler Cowen, Professor of Economics, George Mason University
Nahum Barnea, Senior Correspondent, Yedioth AhronothYedioth Ahronoth
Moderator: Daniel Gross, Columnist/Global Business Editor, Newsweek Daily Beast