The Fiscal cliff

[rwh11385]

Economists are saying that even if it causes a recession, it will be better for the long term health of the economy.

I am going to be a bit cynical and say that they probably will reach some sort of consensus. And by consensus I mean keep the tax cuts and spend more money.

But the problem in the long term for America is mandatory spending and an aging population. Either way it's a bandaid but big reprocusions for ripping it off from not being able to find a middle ground in the mean time. More importantly, continuing to prove the government cannot effectively run itself provides no confidence like with the budget ratification ordeal or debt ceiling.

I hope they both can come down from their raised egos and settle on tax rates in the middle. If the sides stop battling, they can start working on ways to get America through the next 50 years. Chief among them is having Gen Y fill the shoes of the Boomers or new roles created by new technology. And facilitating transitions between winding down industries and growing ones.

Having us close the trade gap helps a lot and hope we continue with our progress.

[rwh11385]

Axe to grind question, no thanks.

So you changed from a redirect to complete avoidance? How can you judge someone for not doing something you cannot provide a single response to?

[rwh11385]

How would you fix the economy?

I asked first. If you claim the government should focus on fixing the economy the burden is on you to provide possible solutions as to how it could be done. Redirecting to me is a weak tactic. What? Did Faux News not give you anything to parrot?

I've discussed what I thought was the real cause and a potential path to take to solve it previously. And it was worked in the past. And some are pursuing it now. So hopefully this strategy results in lower unemployment and more economic growth.

[joshh]

How would you fix the economy?

Axe to grind question, no thanks.

[rwh11385]

Way too much talk about taxes and way too little talk about fixing the economy. Fixing the economy will raise revenue far faster than raising taxes and potentially put the economy into another recession.

How would you fix the economy?

[joshh]

I really hope the Republicans play ball this time so we can prove once and for all that no matter how much money you give this size of government, it won't help. It will never be enough. And that's exactly what this administration will claim when it doesn't work.

Think about it...16 trillion dollars....

Way too much talk about taxes and way too little talk about fixing the economy. Fixing the economy will raise revenue far faster than raising taxes and potentially put the economy into another recession.

[gwb72tii]

Well LB, kicking the can down the road is EXACTLY what rajoy in Spain, hollande in France, the ECB and IMF with greece, and big Ben bernanke have been doing.
There is no painless way out for the western developed economies for years of deficit spending, endless unpaid for social programs, subsidizing sound fiscal policies with credit cards (literally), and the coming end of cheap money being lent to us by foreign creditors.
Obama will delay the pain until the world refuses to lend us $ at current 0%, and in some cases, negative % rates on their foreign exchange holdings.
Then interest rates rise and it's over, done, toast.
So live well my friend, while you can.
The messiah in DC will accelerate the big bang moment, and then the students, the poor(when social programs can't be funded), and the rich elites will finally get it.

[LBJefferies]

They will politicize this, and then kick the can down the road... So I won't lose any sleep over it.

That is precisely why YOU SHOULD be losing sleep.

[uofom3]

I am going to be a bit cynical and say that they probably will reach some sort of consensus. And by consensus I mean keep the tax cuts and spend more money.

This.

The only thing that matters is what happens in 2013; things that take effect 10 years out do not matter - and it's important to remember much of this is spread out.

The majority of the concern is tied to the "sequester" which is ~65 billion out of the economy in 2013. This equates to roughly 2/3's of 1% of GDP - which is hardly alarming.

There is also the AMT patch which would make AMT impact about 35% of taxpayers. They have patched this every year for many years and there is no reason to believe they won't again.

They will politicize this, and then kick the can down the road... So I won't lose any sleep over it.

[gwb72tii]

Bush II spent entirely too much and enacted two of the worst programs in history with regards to Medicare and Education and two needless wars.

Some of us dislike both sides vs buying the party rhetoric.

[z31maniac]

Only when there is a Democrat in the White House.

Bush II spent entirely too much and enacted two of the worst programs in history with regards to Medicare and Education and two needless wars.

Some of us dislike both sides vs buying the party rhetoric.

[tjts1]

I haven't been paying attention to politics for the past few months due to moving and working on my e30...but apparently deficits are bad now?

Only when there is a Democrat in the White House.

[smooth]

I haven't been paying attention to politics for the past few months due to moving and working on my e30...but apparently deficits are bad now?

[emerson.]

CBO

Cheddar, bacon, onion?

[gwb72tii]

all taxes are regressive in their effects on economic growth
and the "fiscal cliff" isn't even the biggest deal
its the deficit and the messiah's unwillingness to address it
taxing the rich will not pay down the debt/deficit and its not why the messiah wants higher tax rates anyways.
if you listen to him, it's a matter of fairness

and tjts, you apparently live in fantasy land if you think raising taxes and cuting spending won't cause a recession. but its been clear you live in a fantasy land for a long time.