As the U.S. counts down to the end of 2012, we also count down to what could be an economic disaster. For the past month post-election, almost all eyes have been trained on Capitol Hill, where President Obama is continuously working with lawmakers on both sides of the political spectrum on producing a deal to avert the fiscal cliff. Everyone knows that, as CNN’d Ali Velshi so aptly put it, this whole ordeal is just a waste of time and this potential economic disaster is a disaster of our own making.
What exactly is at stake if, hypothetically, we go over the fiscal cliff?
There would be massive tax increases, including payroll tax, and spending cuts. Since a lot of investors and corporations are watching very closely and are wary that a deal may either not be done or passed through both houses in Congress, hitting the fiscal cliff would mean that the stocks would go down yet again, and we could possibly be in a double-dip recession.
So far, the Senate has passed the fiscal bill with the help of our Vice President Joe Biden. However, we still have yet to hear from the House of Representatives. Our politicians are racing against time. It may or may not go through the House of Reps. Regardless, soon we will still have another fiscal situation to deal with. It is known as “fiscal cliff #2”, or the debt ceiling. That’s right; the debt ceiling, which was debated last two years ago this month. Not surprisingly, the American public is unhappy with our politicians, but also not surprisingly, there’s a lot of finger pointing on Capitol Hill. The dysfunction within our government, especially distrust in Congress, has evidently increased over the years. As nice as it would be to start off the new year without having to think about politics or economics, I guess it won’t be happening this year. Congratulations on achieving a new level of idiocy, Washington.