Wednesday, November 7, 2012
U.S. fiscal cliff risks dragging global economy into darkness
http://www.cnn.com/2012/11/07/business/opinion-dadush-obama-economy/ Due 13 November 2012. What is the fiscal cliff? What issues to be eliminated (if we default) are of greatest concern to you? (be sure to do the second article for this week as well)
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The fiscal cliff is referring to the tax increases and spending cuts that go into effect at the beginning of 2013. The fiscal cliff accounts for about 4% of gdp, which is very extreme. The biggest issues of this fiscal cliff is the tax increases that will occur, and sluggish recovery. Obama may accept a program of decreased spending on social programs, which is also a big issue, and increased taxes. Thus, the recovery of our economy will remain slow, and strong economies like China will take over.
ReplyDeleteThe "fiscal cliff" is the term given to describe the set of policies that lead to large tax increases and expenditure cuts worth about 4% of GDP that will be triggered automatically on January 1 next year. Resulting from his possible failure to reach agreement on a long- term plan of fiscal consolidation worth some $3.5 trillion to $4 trillion over 10 years. The article says that this could accelerate the decline of the global economy and the decline of the European Union. The fiscal cliff could pressure the President into demilitarizing our military and reducing policies to create greener energy sources. Above all, however, his option of cutting social programs spells out bad news for myself, as I will need things like Social Security in order to continue.
ReplyDeleteThe fiscal cliff refers to the tax increases and various spending cuts worth about 4% and goes into effect at the start of 2013. Issues concerning me are tax increase my family and I will have to pay along with the social programs being cut. So, that will affect me if I don’t have social security and will force our economy to slowly crawl toward recovery. With that, the nation and its people will continue to suffer, even as the economy recovers gradually.
ReplyDeleteThe fiscal cliff by definition is tax cuts and spending changes, but specifically in this article, it is the combination of large tax increases and spending worth almost 4% of the GDP. One of the biggest issues is that the economy will remain sluggish while other countries will grow. A huge personal issue for me is that Obama will have to cut social programs while republicans are going to increase taxes. Yay taxes!
ReplyDeleteThe fiscal cliff is a term that refers to the tax increases and spending cuts that will begin taking effect in 2013. The biggest issues that arise from the fiscal cliff is the increase in taxes and a very "sluggish" recovery. Of course to me, the biggest issues will be having to pay higher taxes and losing some social programs like social security.
ReplyDeleteThe fiscal cliff refers to increases in taxes and cuts in spending. They will go into effect at the start of 2013. It accounts for 4% of GDP. It's a hug deal. A huge issue is the tax increases that will happen. This means there will be slow recovery. President Obama might acquire decreased spending on certain social programs. This is also a big issue. Ergo, our economy's recovery will be slow. This could mean other countries with stronger economies might take the lead economically.
ReplyDeleteJaime Caldaro
ReplyDeleteThe fiscal cliff is tax cuts and spending changes, but specifically in this article, it is the combination of large tax increases and spending worth almost 4% of the GDP. America will continue to grow slowly as other countries grow. The loss of social programs would be a loss for me, because these are necessary in our country.
The Fiscal Cliff is the popular shorthand term used to describe the potentially dire economic situation that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect. The oncoming fiscal cliff is a concern for investors since the highly interested nature of the current political environment could make a compromise difficult to reach. Income tax rates, child tax credit, earned income tax credit, and marriage penalty releases are a bit of the things that are of greatest concern for me because I feel as if they will affect a significant amount of people.
ReplyDeleteThe fiscal cliff defines changes in spending and increases in taxation. My greatest concern is that because 4% of GDP is made of these spending and tax-increasing policies the growth of the economy will stunt or be too gradual and end up in the shadows of other countries such as China. Having to pay higher taxes also raises a red flag for me but I would not identify this as my highest concern. Greater in importance would be the loss of vital social programs in America such as Social Security.
ReplyDeleteThe Fiscal Cliff is the changes that will occur starting Dec 31, 2012 when the tax cuts and across the board spending cuts occur which account for almost 4% of the United States GDP. The incoming fall off the fiscal cliff is a major concern for investors since the current imbalances of the political parties could make it difficult to reach a compromise or deal with one another. My main concern would be the income tax rates because they generate a significant amount of our nations funds.
ReplyDeleteThe fiscal cliff is known as all the changes that will occur in 2013. The greatest issue that is a concern to me would be the debts of Europe. Currently, I believe we are down the toilet with debts and we need to get out of them as soon as possible. The Europeans are going to have to get themselves out of this mess according to the article.
ReplyDeleteThe Fiscal Cliff is the changes that will happen on December 31, 2012 has to do with tax cuts and it will add up to about 4 percent of the United States GDP. It defines changes in spending and increases n taxation for the United States. This means in the long run we are probably going to have to pay more taxes and that will be over shadowed by China. This idea is good for the short run and bad for the long run.
ReplyDeleteThe fiscal cliff refers to the tax increases and government budget cuts that will go into effect in 2013 if the government can not come to a compromise. Of the issues that stand to be lost if we go over the fiscal cliff, unemployment policies like Medicaid and Welfare are the most significant because when you lose the last possible safety net for American people, you hurt the economy far more than you would by keeping them in place. These social policies that are on the brink of being lossed are paramount to keeping our economy afloat during these rough times by stabilizing the portion of the American population who are struggling, keeping them from going all the way under.
ReplyDeleteThe fiscal cliff is characterized as all changes that will be initiated in 2013. It may increase our GDP by 4 percent. Our involvement with Europe has caused us much trouble, and according to this article they will have to vanquish their debt on their own due to our financial inability to support them. Our debt has impeded our economy, and we need to pay it off as soon as possible to allow for more growth and prosperity.
ReplyDeleteThe fiscal cliff is large tax increases and expenditure cuts worth about 4% of GDP that will be triggered automatically on January 1 next year. The risk of a global banking crisis rising is the biggest concern to me because it not only put the rest of the world on trouble, but it can also put us back into a depression or recessionary growth. The GDP cannot take that hard of a hit and the job market will inevitably crumble with it. However, if the rest of the world is to tall victim to this banking crisis as well, it will be harder for us to seek other countries’ help to get us out of it.
ReplyDeleteThe fiscal cliff is characterized by all changes such as tax increases and 4% of the GDP expenditure cuts that will go into effect January 1st if President Obama should fail to reach a agreement on a long term plan of fiscal consolidation. My biggest concern is the cutting of social programs which I think is imperative to American society. The increase of taxes and the cutting of social programs isn't favourable and I think the president should find another alternative away from social programs.
ReplyDeleteThe fiscal cliff refers to the large tax increases and expenditure cuts worth about 4% of the GDP. I believe the biggest issue is the tax increases which will cause a slowly progressing economy. Another huge issue is the cutting of social programs like Social Security which is imperative and almost a right for people who have dedicated their whole lives working for the country.
ReplyDelete