Paul Krugman is fairly certain Bobby Jindal doesn't understand the fiscal cliff, based on a recent op-ed by the Louisiana governor.
"You really have to wonder how someone who's a major political figure could be this uninformed," the Nobel Prize-winning economist wrote in the New York Times blog post.
Krugman wrote that Jindal fails to mention that "the looming problem is spending cuts and tax increases that will shrink the deficit too soon."
The fiscal cliff is a set of $1.2 trillion in tax hikes and spending cuts scheduled to take place on Jan. 1 if the government does not reach a deal to avert it. Economists warn that it could cause a recession by slashing government spending and raising taxes too quickly, but Krugman argues that Jindal doesn't seem to understand this.
In his Politico op-ed, Jindal recommends implementing a federal balanced budget amendment and a cap on government spending, at a time when the government is borrowing at historically low interest rates. Republican presidential nominee Mitt Romney also proposed a cap on government spending during the 2012 campaign, and some House Republicans support passing a federal balanced budget amendment. These policies, if implemented, would force the government to slash spending during economic downturns, which would likely hurt the economy even more, according to some economists.
President Barack Obama has proposed letting the Bush tax cuts on high incomes expire and providing a modest fiscal stimulus, while House Speaker John Boehner has proposed slashing government spending, raising some new tax revenue and extending all of the Bush tax cuts.