What About The Fiscal Cliff?
Have you heard about the fiscal cliff? Fiscal Cliff is the short term used to describe the economic situation the US will face when the terms of the Budget Control Act of 2011 are scheduled to go in effect. At mid night of December 31, 2012, temporary payroll tax cuts will end, certain tax cuts for businesses will end. In a short period of time, you will see an increase in taxes for many Americans.
You can make the assumption that this nation has already gone down the cliff and we are just delaying the effect. We are in the state of crash and burn reality. Sixteen trillion in debt and our nation is still spending.
Politicians always delay their decision up to the last minute and both parties are always looking for opportunity to shift the blame to other side. Let's face it, the goal of any politician is re-election, he or she is never truly interested in long term solution in solving real issues. They are always angling to get the quick fix and shine the light on their party at any cost. We are already broke and over the fiscal cliff and we keep delaying the effect.
If we really want solution to our money problems, we should look at why the government keep raising the debt ceiling. Foreign policy, domestic welfare policy, inflation all need to be addressed, but there is no indication of any discussion in addressing solutions to these problems.
Spending more will never be the solution to our problems. Every down turn spiral points to our government's careless spending beyond our means, politicians don't really look at cutting spending. Raising taxes to the rich or the middle class will never solve the ever increasing deficit. Our government spends estimated about six million dollars per minute, just do the math for each hour, each day, each month, and each year, when are we going to wake up?
When politicians talk about spending cuts, they rarely have a true plan on cutting spending. It is mostly about deceiving people with baseline budgeting which is allocating money from one place to another. Democrats are asking to increase trillions of spending and taxing the rich more, and Republicans are freaking out about cutting spending about 10 percent. While both sides argue whose plan is better, we, the common people sit on the sideline and watch the economy continuing to tank. Just how far off are we from reality?
We still have about 20 million people unemployed in this country, and this trend will continue unless we face the truth.
When it comes to history, it shows us that a bigger government, a sign of bureaucracy, is never good for society. In the end, both parties' inability compromise is the root of the issue in our nation. Sadly, majority of the people do not care. When the dollar collapses we will have true awakening.
Sunday, December 23, 2012
What About The Fiscal Cliff?