When Timothy Geithner was asked if the administration is prepared to go over the Fiscal Cliff if Republicans do not agree to raise taxes on the wealthy (those earning 250,000 dollars per year or more), he responded “Absolutely.” But when it comes to the US economic problems, does the tax debate or the Fiscal Cliff debate begin to scratch the surface of the crisis? We talk to Former Republican strategist Kevin Phillips, about lessons we can learn from 1775. Phillips is writing about revolution: the American Revolution– in particular 1775, a good year for revolution as he says. He delves into the economic factors that resulted in the Revolutionary War.
Among them are the inability of colonists to manage their own monetary affairs because of British policies constraining the circulation of specie, over-indebtedness as a result of a lack of money and restrictions on trade, and the British control of trade which required certain commodities to pass through middlemen in London. We talk to Kevin Phillips, former White House strategist, about what we can learn from this history as the US faces its own set of economic and political problems today.