Latest Data Show that we are Already on a Downslope Toward the Fiscal Cliff
These days the “fiscal cliff” dominates the discussion of U.S. budget policy. The cliff is the package of tax increases and spending cuts baked into current law that will come into effect at the end of the year if Congress does not act. What is less widely recognized is that the U.S. economy is already on a downslope. The latest GDP and jobs data show that a substantial amount of fiscal austerity is already in effect. A steadily shrinking government sector is slowing growth of jobs and output. To say that the economy may teeter over the cliff at the end of the year understates the problem. If nothing is done, we will hit the cliff at a jog. There is much that we should do before we get there, and time is running out. Read more>>>
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