11/16/2012 11:14 AM
As the C-Q EMBA class of 2014 closes the books on Macroeconomics; analysts, business people and lawmakers discuss the impending fiscal cliff. I can't help but think about Ori's philosophies on economics and cliff jumping.
In his class, we learned about Keynesian theory and the idea that the government can help the economy along by metering its spending in response to changes in private sector spending. As we head toward the fiscal cliff and look forward to a comprehensive reform, I hope our legislators remember that Keynes assumed a long-run balanced budget. Without a balanced budget, the government does not have the yin of surplus to balance the yang of deficit as the economy needs more G to counter drops in S and I.
Whether we leap off the nearing cliff or not, now is an exciting time for MBA candidates to watch the news and see the varied concepts we learn in the classroom coming together in a complex national story that affects companies and institutions everywhere.