The Fiscal Cliff: The Choice Is Not “Recession Or No Recession” But “Recession Now Or Recession Later”! Here’s Why
Lorimer Wilson / Munknee.com
The warnings that the fiscal cliff will cause a recession are delivered as if the<img class=”alignright size-thumbnail wp-image-40920″ title=”financial cliff” src=”http://www.munknee.com/wp-content/uploads/2012/07/financial-cliff-150×150.jpg” alt=”" width=”150″ height=”150″ /> government can decide whether or not we have a recession. In fact, the government does not have that power, or we would never have recessions. At the most, the government can influence when, not if, we have a recession. We will most likely undergo a recession when we wean ourselves off the unsustainable deficit spending of the last four years. The choice is not recession or no recession. The choice is recession now or recession later. [Let me explain.]
So says Jeffrey Dorfman in edited excerpts from his original article* as posted on Real Clear Markets (www.realclearmarkets.com) entitled The Fiscal Cliff? Let’s Rush Off Of It.
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below to some degree for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.
Dorfman goes on to say, in part:
The reality that many political and opinion leaders seem unable to grasp is that the government cannot create jobs or economic growth. All the government can do is to borrow jobs or growth from the future. Think about it: if the government could create growth, jobs, or wealth, why do we still have unemployment and poverty? Government’s effect on the economy is temporary at best; eventually the price must be paid.
If you believe that government deficit spending is good for the economy, then you must admit that when the government pays back the money it will be bad for the economy. Paying the debt means some government spending is going toward something that does not help the economy.
Since the government cannot run a trillion dollar deficit forever…every job created by deficit spending now is a job that the government is costing the economy later, when it must instead use revenues to make debt payments. Even paying just the interest on the debt means that a fraction of the jobs created now are lost forever based on the interest rate on the government bonds. [As such,] twenty jobs gained this year with deficit spending may be one job lost forever once the deficit is normalized.
Sign up HERE to receive munKNEE.com’s unique newsletter, Your Daily Intelligence Report
- It’s FREE
- It contains the “best-of-the-best” articles to be found on the internet
- The articles are “edited excerpts” to provide brevity & clarity to ensure a fast & easy read
- Don’t waste time searching for articles worth reading. We do it for you!
- Sign up HERE and begin receiving your newsletter starting tomorrow
I vote for massive spending cuts to bring the deficit back to $300 billion or less within two years. I can accept some tax increases to go with the spending cuts as long as they are simultaneous. If taxes go up now, spending should be cut now; none of these out-year cuts years in the future that are not legally binding. Comparing today’s spending to that under Clinton shows it not just possible, but fairly easy to regain spending sanity.
If we spend today’s equivalent to Clinton’s last budget, the problem would be solved. If that gives us a recession, at least I know more of today’s children will have jobs in the future thanks to our short-term sacrifice today.
Conclusion
If people think this through logically, they will see the choice is not whether to have a recession, but when. The politicians created false prosperity with these unprecedented deficits, but the mirage is not real. We must choose either to be poorer now in order to be richer later or to be richer now at the cost of being poorer later.
*http://www.realclearmarkets.com/articles/2012/11/26/the_fiscal_cliff_lets_rush_off_of_it_100007.html(Jeffrey Dorfman is a professor of economics at the University of Georgia, and the author of the e-book, Ending the Era of the Free Lunch.)
Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).
i dont get it,i had to take a cut in pay to continue to work and not take goverment hand out you know food stamps,unemployment,fake ssi claims my back hurts im depressed and so on and so on.
where i work theres a guy in a wheel chair and doesnt get goverment handouts,if you wont get a lower paying job because you rather get the same in free money..YOUR AN EMBARESSMENT,IF YOUD RATHER GET GOVERMENT HANDOUTS YOU ARE AN EMBARESSMENT TO AMERICA AND NEED TO GET OFF YOUR MOMS TIT AND GO GET A JOB….i see plenty of help wanted sighns every where just not making 20 dollars an hour,a bad job is better than no job