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Author: salaryguru Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1954909  
Subject: Re: Fiscal Cliff Question... Date: 11/22/2012 12:41 AM
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Can't Congress just delay or get rid of the whole Fiscal Cliff issue . . .

There is no fiscal cliff. The term is purely political hyperbole. There are a number of different tax and spending items that will all change in January, but each one can be dealt with uniquely. Tax increases will not instantaneously change anything since they apply over the course of a year. Congress can modify them at any time. Spending cuts to the military will result in job loss in some part of the military-industrial complex that will probably be implemented over a period of months. Cuts in Medicare, SS and Medicaid will probably involve similar job cuts, but also might result in benefit loss. But there is no cliff and there is no reason to deal with each of these items as a group, rather than consider them one-by-one.

Eliminating the Bush tax give-aways for the wealthy turns out to be very popular among a majority of American voters. Since Republicans are on the wrong side of public opinion on this issue, they don't want to talk about it as an individual item. They would rather talk about the "fiscal cliff" and hide the fact that they favor tax give-aways to the the wealthiest Americans who are doing fine during this economic downturn. The term "fiscal cliff" is also appealing to the press who benefits and profits from drama. "Fiscal cliff" sounds important.

Instead of talking about a "fiscal cliff", we should be talking about all of these items individually and striving to do the best thing in each case. Bundling them together is a political ploy. It won't lead to an optimum solution.
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