‘Fiscal Cliff’ game hurts economy
As the “fiscal cliff” negotiations continue, and policy-makers contend a compromise is most likely out of reach, the 2012 economy ends in disappointment. A Gallup poll shows 54 percent of Americans agree with President Obama’s approach, however there appears to be less confidence that a deal will be reached, affecting the economy.
“According to Rasmussen, 70 percent of the American public agrees the United States will experience a recession in 2013 if a deal is not met,” said Ray McCarty, president of Associated Industries of Missouri. “In addition to those who feel a recession is imminent, nearly 30 million taxpayers will have to pay an ‘alternative minimum tax’ and could also face delays in their own tax filings. And, to cap it off, the 2012 holiday retail numbers show the weakest season since 2008. The American public needs confidence. And, the disaster that will occur if a deal is not met is not helping.”
To McCarty’s claim, the Associated Press also reports “U.S. stocks slipped Wednesday, pushed down by disappointing holiday sales and the looming ‘fiscal cliff’ in Washington.”
Although the president ended his Hawaii vacation early to return home and continue negotiations, White House staff and congressional staffers are predicting negotiations will fail.
“Once both parties realize the ‘fiscal cliff’ is real and impacts real people with real jobs and real needs then maybe the country can move on and achieve an economic rebirth,” said McCarty. “But making this issue a political hot potato will not solve the problem. Employers need confidence the problem will be solved without sequestration and without increasing their tax burden.“