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De Omnibus Dubitandum - Lux Veritas

Tuesday, January 8, 2013

How the Fiscal Cliff Deal Hurt a Recovering Economy


The deal that Congress came to on the fiscal cliff last week was a combination of half-measures, compromise, and kicking-the-can that nobody seemed to like but was overwhelmingly approved. Most of the meaures that constituted the cliff stood poised to harm the economy over the next two years – and Congress’ failure to offset the cost of averting the cliff will result in a worse economy in the long run. As Americans everywhere found out with their first paychecks of the new year, Congress failed to reauthorize the temporary payroll tax cut that expired. This could result in between 300,000 and 1.3 million fewer jobs created over the next two years. Reauthorizing the payroll tax cut, however, would have needed budget-tightening offsets to minimize long-term damage to the economy. ....To Read more.....

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