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Better to Face the Fiscal Cliff than to Procrastinate

November 27, 2012 Staff 0

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.

Fiscal Cliff is Economic Stimulus in Reverse

August 27, 2012 Staff 0

If $641 billion is extracted from the economy, it would lead to a contraction in income and jobs by an amount that is much greater than the original spending cuts. That is, the multiplier will work in reverse.

The Fiscal Cliff – An Approaching Disaster

August 21, 2012 Staff 0

The Congressional Budget Office (CBO) projects that GDP growth will average 2.2% in 2012. However, if the fiscal cliff occurs, growth in 2013 will decrease to 1.1%. This will occur if stimulus policies expire.