Let us review: unless both sides of the
aisle in Congress can agree, federal taxes will go up and federal
spending will go down starting on the first day of 2013. There is
great fear that this will send the economy into a tailspin, another
recession, and yet more unemployment.
Given election year posturing, it is
unlikely that Congress and the Prez will agree to do anything.
Look Before You Leap
There are 2 important documents you
should read before passing judgment:
Both of the above websites have links
where you can download the full PDF for each proposal.
Both Are Failures
Although rather different, both tackle
the same problem: cutting government spending and reducing the fiscal
deficit. Both also fail to have enough detail to be of any practical
value (y'know: the devil is in the details). Both also have a zero
chance. The former has been demonized by Ryan's own party, and the
latter, although commissioned by the Prez himself, was immediately
tossed into the circular file.
The 'Fiscal Cliff' Actually Works
Both sides agreed to dance with the
Devil: if they cannot come to agreement, the fiscal cliff
automatically kicks in. Since gridlock is the watchword these days,
that outcome is not entirely out of the question (yes, I know that if
the R's sweep both Houses and the White House, the calculus changes).
This is already law. Even better: our deficit will actually be
reduced (hallelujah).
Nasty Medicine
As it has in Greece, our economy will
suffer. However, if we can tolerate the pain for a couple of years,
our fiscal house will magically be in order. Jobs and the economy
will begin to grow and thrive as in yesteryear. Sadly, it is more
likely that the actors will come up with more wanky,
kick-the-can-down-the-road meadow-muffins.
No comments:
Post a Comment