Fiscal cliff


One solution that will utterly fail to please everyone is the resolution on the ‘fiscal cliff’ dominating the post-election headlines. I am optimistic that the new Congress and continuing administration will hammer out a solution and hopefully that will pave the way to more recovery strides in 2013.

Michael Porter supports such a bullish perspective in his succinct yet quite comprehensive look at American economic position and policy in his piece “Why America Needs an Economic Strategy”. In it, he notes a topic examined here a number of times – risk propensities of different nations. He cites two important drivers to America’s “unparalleled environment for entrepreneurship and starting new companies”…

  • “Sixth, the U.S. has benefited historically from the deepest and most efficient capital markets of any nation, especially for risk capital. Only in America can young people raise millions, lose it all, and return to start another company. Finally, the U.S. continues to enjoy remarkable dynamism and resilience. Our willingness to restructure, take our losses, and move on will allow the U.S. to weather the current crisis better than most countries.”