Inaction on 'Fiscal Cliff' Starting to Weigh on Economy
by Forrest Jones
July 8, 2012
At the end of the year, tax breaks such as the Bush-era tax cuts expire, while automatic spending cuts agreed to during the 2011 debt-ceiling deal kick in. The combination of the two on Jan. 1, 2013, known as a fiscal cliff, could siphon as much as $500 billion out of the economy next year alone, according to some estimates, and wipe out a total of $7 trillion over a decade.
Congress could step in and adjust the scope or timing of the tax breaks and spending cuts, but lawmakers appear unwilling to address the subject in an election year, leaving many to hope that a new government will return in early 2013 and deal with the problem retroactively.
But in the meantime, worries about fiscal inaction are starting to show up in lackluster corporate hiring as well as tepid consumer demand and spending figures, experts say.
“The biggest fear at the moment is that Europe will unravel, but concern that policymakers may let the nation go over the fiscal cliff is mounting,” says Mark Zandi, chief economist of Moody's Analytics, according to CNNMoney.
“The job market isn’t going to kick into high gear until Europe’s problems and our fiscal issues are [better] nailed down.”
Read more: Inaction on 'Fiscal Cliff' Starting to Weigh on Economy
TOWN HALL
In Search of Conservative Leaders
by Star Parker
July 9, 2012
Conservatives are looking for leadership at this difficult and challenging time.
Yes, Carter was bad. But Reagan did not just run against a bad economy and a confused, uninspiring president. He understood and believed in America – and he ran on this vision. This is leadership.
It happens that last month marked the 25th anniversary of Reagan’s famous “Tear down this wall’ speech in Berlin. The author of the speech, Peter Robinson, recalled the event in a Wall Street Journal column.
The story has been told many times. But it cannot be recalled too many times that the political professionals – the president’s advisors and the various members of the president’s staff – opposed including the ‘Tear down this wall” line in Reagan’s Berlin speech.
Despite numerous attempts to remove the line from the speech, it stayed in – because of Reagan.
This is leadership.
The problems we have today did not start four years ago. They are the accumulation of many years of a slow but consistent departure from our core principles of being a free nation, under God.
Of our now almost $16 trillion in debt – 100 percent of our GDP - $5 trillion was added over the last four years. But ten trillion – almost two thirds – was added over the last twelve years.
Forty percent of our four trillion dollar federal budget consists of inefficient entitlement programs tilting into bankruptcy. These are old and outdated programs – Social Security going back to the 1930’s, Medicare and Medicaid to the 1960’s.
Our public school systems hold 60 million children captive by teachers unions that are dedicated to left wing ideas and moral relativism.
The traditional American family is becoming a relic of history. Out of wedlock births and using abortion as birth control have become fixtures of our society.
When Reagan ran for president in 1980 health care expenditures consumed 9 percent of our GDP. Today they consume 18 percent. We have a health care problem with or without John Roberts’ unpopular decision.
Real recovery is impossible now without inspired leadership dedicated to recapturing principles of limited government, individual freedom, and the traditional values that made America great.
The left has a leader. He is in the White House and he is leading us into oblivion.
Where is conservative leadership? Leadership that will remind us that American community is defined by personal responsibility – not by government mandates?
Conservatives are looking for leadership at this difficult and challenging time.
Yes, Carter was bad. But Reagan did not just run against a bad economy and a confused, uninspiring president. He understood and believed in America – and he ran on this vision. This is leadership.
It happens that last month marked the 25th anniversary of Reagan’s famous “Tear down this wall’ speech in Berlin. The author of the speech, Peter Robinson, recalled the event in a Wall Street Journal column.
The story has been told many times. But it cannot be recalled too many times that the political professionals – the president’s advisors and the various members of the president’s staff – opposed including the ‘Tear down this wall” line in Reagan’s Berlin speech.
Despite numerous attempts to remove the line from the speech, it stayed in – because of Reagan.
This is leadership.
The problems we have today did not start four years ago. They are the accumulation of many years of a slow but consistent departure from our core principles of being a free nation, under God.
Of our now almost $16 trillion in debt – 100 percent of our GDP - $5 trillion was added over the last four years. But ten trillion – almost two thirds – was added over the last twelve years.
Forty percent of our four trillion dollar federal budget consists of inefficient entitlement programs tilting into bankruptcy. These are old and outdated programs – Social Security going back to the 1930’s, Medicare and Medicaid to the 1960’s.
Our public school systems hold 60 million children captive by teachers unions that are dedicated to left wing ideas and moral relativism.
The traditional American family is becoming a relic of history. Out of wedlock births and using abortion as birth control have become fixtures of our society.
When Reagan ran for president in 1980 health care expenditures consumed 9 percent of our GDP. Today they consume 18 percent. We have a health care problem with or without John Roberts’ unpopular decision.
Real recovery is impossible now without inspired leadership dedicated to recapturing principles of limited government, individual freedom, and the traditional values that made America great.
The left has a leader. He is in the White House and he is leading us into oblivion.
Where is conservative leadership? Leadership that will remind us that American community is defined by personal responsibility – not by government mandates?
Read more: http://bit.ly/NinS8f
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