11/8/2012 8:30 PM ET|
Heading for the fiscal cliff
You'll hear a lot about the fiscal cliff in the news from Washington and Wall Street through at least the end of the year. Here's what it is.
VIDEO ON MSN MONEY
Wow. This is horrible journalism, grossly misleading and misinforming. Unsigned.
Who wrote this anonymous claptrap? It's just a bunch of internet scare talk, all sky-is-falling and no real substance or documentation at all. MSN Money is just another media outlet getting mileage out of the "fiscal cliff" lingo without really delivering any enlightening information.
First of all, what do you mean, MSN Money, by "Cost" ?? Cost to individual tax return filers, or cost to the government? It seems to me that what you define as "Cost" is, in actuality, increased tax revenue to Uncle Sam, something the government must have as a necessary part of the budget balancing act if we are to resolve our federal budget problems.
Yes, it is certainly true that deficit spending stimulates the economy. Keynes wrote about it more than 75 years ago.
It is also true that deficit spending cannot go on forever without disaster eventually occurring.
Yes, it may also be true that if we simply allow the "fiscal cliff" to happen, it will cause an economic slowdown, probably an actual recession. Yes, that causes hardship.
But what if we do what you are trying to scare us into, that is, continue without increasing taxes and reducing spending? More of the same ol' same ol'. And yes, our congress and President may be relied upon to do that, because no elected politician seems willing to take the difficult measures necessary to resolve the issue..
A 10% cutback in federal discretionary spending is a crisis? Bull. Families, businesses, towns, and states have faced far worse than that in recent years. Hardship, yes. Disaster, no. Many federal agencies would be able to cut 10% and be the better off for it. The rest will survive.
Taxes are a hardship and they slow down the economy, true. But it's something we have to do, isn't it? What is the alternative? Eliminate all the spending regardless of whether or not it is important?
If MSN Money had any real economic writers on it's staff, they would research answers to some real questions we citizens need to know:
What are the real trade offs if we allow the "fiscal cliff"?
Will a tax increase and subsequent slowdown in the economy be so dampening that it wiould cause a falloff of tax revenue, as say, economist Laffer would suggest?
If the Congressional Budget Office (CBO) says the economy will still increase, but at a slightly lower rate, even with increased taxes and decreased federal spending, is it still undesirable?
Please, MSN Money, get some journalistic balls and write something more than superficial bandwagon cliches.
By the way, folks, regardless of your politics, the debt limit must be raised until we stop the deficit. Stop being idiotic. The fate and safety and security of the United States depends on our ability to fulfill our financial obligations.
To not raise the debt ceiling means the federal government falls into default. Anyone who fails to understand that we are endangering the country to even threaten to default is endangering us.
Remember, our the American revolution was in more danger because of our inability to raise money, than our ability to raise an army. How long do you think our military or our country would function if we can't pay our bills?
Reading some of these comments has me in stitches. Have you guys learned anything yet? All of this bickering about which political party was/is right and has the best plan is what has gotten us here. In order for this country to get back on it's feet there needs to be cooperation from all political parties. Instead of griping and complaining, find out how you can be a blessing to someone else. Putting your trust in someone else is always risky. It's not like you couldn't see that one day things weren't going to get bad. Cutting the taxes for the wealthy(that can afford to pay their fair share by the way. Not my words but the words of several wealthy people) giving them deductions and loopholes when they aren't need has to stop. You and I get screwed. Congress needs to grow up and try to fix the problems together. Do you actually think this wasn't going to happen if Romney was in office? If so....you are kidding yourself. It was going to happen if Elmo was president.
You at MSNBC damn well know that if you made these issues the top priority like they should have been, the election outcome would have been different. So with that said all of you that voted to have this man re-elected, shouldn't get mad at his inaction's. Thank God for the Speaker of the House, and Paul Ryan who is the Budget Committee Chairman.
OK, if I've added this correctly we're looking at a total of $480 billion of increased revenue, or reduced costs to the government. I see. The government could actually go over the fical cliff, & land on solvency.
Is that really so bad?
You realize that repeating the same phrase over and over doesn't make it true if it wasn't to begin with. You go off calling other people ignorant, but you can't even make arguments based off of your own observations--just the same rhetoric that's been repeating for the last few years.
How is the Government going to write a bailout check for this train wreck.....
Play a stupid game, win a stupid prize. Surprise!
I say let it come! The only way to let this out of control government spending continue is to bitch slap everyone.
High earners, low earners, no earners, government, private sector, everyone!
As Obama said in his speech, the United States of America.
Bipartisanship at its best. EVERYONE takes it up the hoo-hah!
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