Currently, areas of concern are the stagnated economic growth, unemployment and the ongoing wrangles in the Middle East between Israel and Palestine. The nuclear threat posed by Iran and reduction of our troops that serve in the Middle East, particularly Iraq and Afghanistan are other areas of concern during my second term as President of the United States of America.
Time is running out, democrats and republicans have to unite to solve the economic challenge amicably. However, this is not likely to happen considering the fact republicans dominate the numbers in the congress. However, to solve the stalemate, I will employ strategic planning and rational analysis according to Sun Tzu’s art of war (Tzu & Bowdon, 2010). As the president of the United States, I would employ the slow and long game of softening the republicans to perceive me as indecisive about the issue at hand. With time, I will weigh their arguments, their strength, weaknesses, and the best way to motivate them to accept my policies.
If the democrats and republicans collide and fail to agree on a compromise deal on way of tackling the fiscal cliff by the end of the year, the U.S. may slide back into a recession.
Strength -The democrats dominate the house of senate. As President, I have their support to counter the republicans who dominate the congress.
Weakness - Republican dominated congress is reluctant to accept increased taxes among citizens and households earning more than $200,000 and $250,000 respectively. This has earned house the tag ‘do nothing congress.’
Opportunity - The Democrat senators have softened their hard stance recently by showing maturity over fiscal issues. They are liberal and willing to reach a compromise deal with republicans to avoid the fiscal cliff.
Threats – The statutory debt limit set by law is only $165billion away. Therefore, the debt ceiling cannot be raised by more than $165 billion.
Analysis of Strategic Issues
The Wall Street is worried that negotiations between democrats and republicans on the fiscal cliff may end in a stalemate. To deal with these fears, my administration will employ the strategy of clear communication (Tzu &Bowdon, 2010) with the Wall Street to assure them progress is being made to solve the fiscal cliff ahead. When the Bush tax cuts are done away with, 77% of the deficit problem will be solved within the next 10 years. The remaining 23% will be tackled through tax increases of the rich. In the long run, unemployment will reduce to historic low levels and the economy will register significant growth.
If the negotiations fail, I have the constitutional right to veto any bill passed by majority of the republican congresspersons. In addition, I have the senate support to assist me in these negotiations to reach a deal by December 1. However, I will also employ Clausewitz teaching that warns us ‘not to engaging the force directly until the right time’ (Clausewitz, 1968).
The best strategy is to reach a compromise deal between democrats and republics to legitimize the process of resolving the fiscal cliff. This will form a perfect groundwork for rational analysis and strategic planning for my administration in the next 4 years.
- End of the bush tax cuts
- Reduce spending in defense
- Raise taxes for wealthy individuals, households, and businesses.
Evaluation and Control
The bush tax cuts will not be ended radically. Such a move may result to a recession and loss of jobs because of increased taxes for businesses. My administration will raise the debt ceiling by up to $165 billion that is the statutory limit presently. The funds will be used to ensure the proposed changes run smoothly without plunging the economy back to a recessionary state.
BOAK, J., & Times, T. F. (2012). 5 Ways Obama Can Defuse a Fiscal Cliff Stalemate. The Fiscal Times - Business, Economics, Politics and Finance. Retrieved November 23, 2012, from Defuse-a-Fiscal-Cliff-Stalemate.aspx#page1.
Clausewitz, C. v. (1968). On war, by Carl von Clausewitz (New and revised ed.). London: Penguin.
Spinney, C. (2011). Why President Obama Should Study Sun Tzu | TIME.com. U.S. | News, Headlines, Stories, Video from Around the Nation | TIME.com. Retrieved November 23, 2012, from tzu/
Tzu, S., & Bowdon, T. (2010). The Art of War the Ancient Classic. Chichester: John Wiley & Sons.