Most economists surveyed by USA TODAY have little faith a divided Congress will adequately address looming tax increases and spending cuts, significantly hampering economic growth well into 2013.
The standoff in Washington, along with the global economic slowdown, threatens a U.S. economy that otherwise would be gaining steam on a strengthening U.S. housing market and improving private-sector balance sheets, economists say. The survey of 50 leading economists was conducted Aug. 3-8.
Fifty-three percent of those surveyed don’t think Congress will be able to lessen the impact of $560 billion in tax increases and spending cuts, slated to take effect at year’s end, in a way that avoids significant damage to the economy. The Congressional Budget Office says the so-called fiscal cliff would slice up to 4 percentage points off growth next year — causing the economy to contract in the first half — if all the deficit-slicing measures occur at once.
I’m sure come the time of reckoning, the incumbents will be able to tell the voters they’ve fixed, or their opponent’s party has wrecked, the country through the magic of either puting off for tomorrow what needs to be done today, or ignoring solutions for party gain; and apathy of the voters will rule the day.
A genuine question from me, out of curiosity: Is the Congressional Budget Office a neutral source? Presumably it is objective.
I am puzzled. On the one hand not to tackle the deficit is to mortgage the future to a dangerous degree. On the other hand, the remedy proposed is said to be dangerous. Confused? I am.
How can they say they are trying to fix the budget problems when they (Democrats) won’t even bring up a budget vote much less pass a budget. Obama has not signed a budget since taking office, as the Senate will not vote on one as is legally required.
The problem is very clear, and very simple. Senate Democrats are so far left that they cannot pass a budget — and it only requires 51 votes, so the Republicans are not an issue — which would not be absolutely repulsive to Americans as a whole. If they actually passed a budget you could count on Republicans picking up about 8 Senate seats, maybe nine.