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USA Going Over the Cliff
Topic Started: May 22 2012, 04:36 PM (210 Views)
Kerri P.
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http://www.wral.com/business/story/11130087/
CBO warns of US falling off 'fiscal cliff'
Posted: 27 minutes ago
Updated: 25 minutes ago

WASHINGTON — A new government study released Tuesday says that allowing Bush-era tax cuts to expire and a scheduled round of automatic spending cuts to take effect would probably throw the economy into a recession.

The Congressional Budget Office report says that the economy would shrink by 1.3 percent in the first half of next year if the government is allowed to fall off this so-called "fiscal cliff" on Jan. 1 — and that the higher tax rates and more than $100 billion in automatic cuts to the Pentagon and domestic agencies are kept in place.

There's common agreement that lawmakers will act either late this year or early next year to head off the dramatic shift in the government's financial situation. But if they were left in place, CBO says it would wring hundreds of billions of dollars from the budget deficit that would "represent an additional drag on the weak economic expansion."

CBO projected that the economy would contract by 1.3 percent in the first half of 2013, which would meet the traditional definition of a recession, which is when the economy shrinks for two consecutive quarters.

"Such a contraction in output in the first half of 2013 would probably be judged to be a recession," CBO said.

snip....
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Mason
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Parts unknown
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The CBO was a little too quiet when Obama was spending like no one in History.

Of course, they only score what manipulated figures are submitted.


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kbp

It is "certainty" that will help, because nobody has a clue what Barry will do next to their businesses. Then work on that corporate tax to move the economy ahead.
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Baldo
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We are already over the cliff & like Roadrunner we are running fast until he looks directly in the camera then says oops and & falls.

I understand the economic situation when Obama took office, however he, Bite-it, Reid, and Pelosi screwed us even more

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Edited by Baldo, May 22 2012, 08:22 PM.
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