Politico Magazine asks “should we really be so optimistic about the year ahead?” Mohamed El-Arian (PIMCO), Jared Bernstein (CBPP), Laurence Kotlikoff (Boston U.), Robert Reich (Berkeley), Menzie Chinn (Wisconsin U.) and Jeffry Frieden (Harvard), Jeffry Frankel (Harvard) and Dean Baker (CEPR) respond.
There are two types of large American corporations: those that depend on domestic business, which is largely consumer driven, and those that derive ever increasing amounts of their earnings overseas. The policies that are important to one group are less important to the other and vice versa.