If Congress is not willing to develop a sound plan to reduce the debt and balance the budget by raising taxes and cutting spending, then it is better to face the fiscal cliff. The long-run consequences of kicking the can down the road will be apocalyptic.
The President and Congress are struggling to find ways to reduce the large number of unemployed workers, especially among African-Americans, and to a lesser extent, Latinos. The solution is easy – provide greater support to minority businesses.
Hurricane Sandy has weakened the economy, which was growing robustly over the last several months. If Congress fails to avoid the fiscal cliff, $607 billion in tax increases and reduced spending will occur, making a new recession likely.
Last month, the economy created a large number of jobs, but black unemployment increased from 13.4% to 14.3%. With the presidential election over, it is time now to address the crushing burden of unemployment among blacks.
Total budget deficit reduction caused by the fiscal cliff (i.e. tax changes and automatic spending cuts is estimated at $607 billion). However, the cuts will come at a significant cost in economic growth and jobs and will likely cause a new recession.
During his acceptance speech, President Obama displayed a new sense of unity, determination, humbleness and a level of confidence not seen during his first term. He is focused more than ever on achieving the change his campaign has promised.
Recent positive economic indicators are a big boost to President Obama’s reelection bid. The economy has created over 170,000 for the last 5 months and consumer spending has picked up. The truth will be revealed by the midnight today.
The economy added 171,000 jobs in October, many more than analysts expected, and unemployment edged up to 7.9% because so many persons re-entered the labor market. The number of jobs created in Sept. was revised up by 30%.
The economic impact of Sandy has been estimated at $50 billion, about one-half the impact of Hurricane Katrina. As the focus turns to rebuilding, some analysts are underestimating the economic impact of the storm.