Domestic Policy is Foreign Policy: Diane Swonk’s special 2013 outlook edition

CHICAGO--(BUSINESS WIRE)--In the December issue of Themes on the Economy^®, Diane Swonk urges Washington to heed the advice of a 20^th century leader working to heal divisions in the country. John F. Kennedy, when still a U.S. senator, said: “Let us not despair but act. Let us not seek the Republican answer or the Democratic answer, but the right answer.”

“Let us not despair but act. Let us not seek the Republican answer or the Democratic answer, but the right answer.”

Our chief economist lists the reasons why 2013 could be the best year for the U.S. economy since 2005. “If we overcome the near term risk associated with fiscal policy, the year ahead could be a transitional period: the housing market is finally coming back; cuts to state and local government spending are abating; and, business investment should pick up if certainty can be restored on the fiscal front. Add to that, persistently easy monetary policy, which makes it easier for both businesses and households to gain credit.”

Swonk explains further that domestic policy is effectively foreign policy: “The threat to our credit rating is particularly disturbing, as further downgrades could undermine the dollar’s status as the world’s reserve currency. Indeed, Europe with its disparate countries has demonstrated more resolve to save the euro than we have shown in trying to resolve our fiscal problems.”

For more details on how the economy could grow faster in 2013, read this month's issue of Themes on the Economy^®. Archived issues can be found at mesirowfinancial.com.

Mesirow Financial is a diversified financial services firm headquartered in Chicago. Celebrating its 75th anniversary this year, the firm remains independent and employee-owned, with approximately 1,200 employees globally. With expertise in Investment Management, Global Markets, Insurance Services and Consulting, Mesirow Financial strives to meet the financial needs of institutions, public sector entities, corporations and individuals. For more information about Mesirow Financial, visit its website at mesirowfinancial.com.