The "Fiscal Cliff" is kind of a good thing

I am sick of all of the scare tactics regarding this "fiscal cliff". As of Jan 2013, taxes will go up and spending will be reduced by $110 billion dollars for fiscal year 2013. Well, in order to reign in our deficit and the national debt, both of these things need to happen, so I don't understand what the problem is here. Here's some perspective... the first month of the fiscal year is October, and the deficit just in the month of October 2012 (FY 2013) was $120 Billion, which is more than all of the spending cuts that this "fiscal cliff" brings with it. This fiscal cliff is the result of the Republicans in Congress making a deal with Democrats and the President the last time the debt ceiling was raised, so this "fiscal cliff" is by design, and now is being used to scare the sheeple with gloom and doom.

Yea sure but the thing is, untill now the only thing they did is more and more spending to let the economy grow.
Not sure if the US economy can take cuts, also a nice article perhaps about this ''fiscal cliff'':


www.spiegel.de...




But your right these cuts are peanuts compared with the deficits each year right now.

Originally posted by Plugin
Yea sure but the thing is, untill now the only thing they did is more and more spending to let the economy grow.
Not sure if the US economy can take cuts, also a nice article perhaps about this ''fiscal cliff'':


www.spiegel.de...

edit on 14-11-2012 by Plugin because: (no reason given)

The economy hasn't grown at all, and if it has it isn't because of government spending, especially considering that they have no money to spend. I know that GDP has grown by a percent or two over the last couple of years, BUT the major flaw with GDP is that it does not account for inflation. In this environment, GDP grows because people are paying more for the same items and services than the year beofre, but they are still making the same amount of money. The US economy, along with the rest of the world, is going down in flames very soon, by design of course.

I'm not going to get too worked up about it.

I am in the process of retraining for my third career since 1991 and I am paying for it all with student loans, multiple part-time jobs and a very small business. I'm poor, and my family has learned to get by with much less. I'm not seeing a huge downside to spreading some pain around a bit, especially those who believe in wealth fairies and corporate welfare, unless you are a congress-person who only held their job due to redistricting, and you are running for re-election in 2014.

Originally posted by OptimusSubprime

Originally posted by Plugin
Yea sure but the thing is, untill now the only thing they did is more and more spending to let the economy grow.
Not sure if the US economy can take cuts, also a nice article perhaps about this ''fiscal cliff'':


www.spiegel.de...

edit on 14-11-2012 by Plugin because: (no reason given)

BUT the major flaw with GDP is that it does not account for inflation. In this environment, GDP grows because people are paying more for the same items and services than the year beofre, but they are still making the same amount of money.

That isn't correct, GDP is inflation adjusted...... but the government is way underestimating the inflation, so in actuality, if they reported the correct inflation, the GDP would be negative and we would be in recession. The government likes to play with numbers and make seem like everything is going great, especially before the election. Same thing with unemployment, the rate is dropping, but the labor force participation is also dropping, if they kept the labor force participation the same for the past 5 years we would be close to 11% unemployment and not 7.9%. No people aren't getting jobs, they are just no longer counted.

I am really sure that the middle income earners who are struggling to not only hold their jobs , but also put food on the table are going to applaud the $2000 per year they are about to not have.

That is before the other 4 million or so job losses.

Your argument does not support the headline