CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided. | TigerDroppings.com

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Bunk Moreland
Michigan Fan
Detroit, MI.
Member since Dec 2010
5842 posts

CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


Sorry, I see it's Germans. Here is Huffpo's take.

quote:

The U.S. economy will sink into a deep recession and unemployment will jump back above 9 percent if Congress does not avoid a "fiscal cliff" waiting at the end of the year, according to a Congressional Budget Office study published Wednesday.

The report is the latest, possibly most dire, warning of the consequences of congressional inaction on more than $600 billion in spending cuts and tax increases currently mandated to take effect at the start of 2013. The question is whether it will spark more action, and just how helpful that action would be.

This news could also be used as a weapon by both sides in the political debate in Washington, with President Barack Obama's opponents using it as evidence of his poor stewardship of the economy, and those on the left suggesting that Republicans in Congress have deliberately endangered the economy by becoming die-hard deficit hawks once Obama took office.

If Congress can't get its act together long enough to avoid this fiscal tightening, then economic growth in the U.S. will shrink by 0.5 percent in 2013, and unemployment will rise to 9.1 percent from 8.3 percent today, the CBO, a nonpartisan budget watchdog, said in new a report on its website.

LINK




This post was edited on 8/22 at 1:55 pm



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PillageUrVillage
LSU Fan
Mordor
Member since Mar 2011
3062 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.








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Mo Jeaux
LSU Fan
NYC
Member since Aug 2008
12658 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

unemployment will jump back above 9 percent


Lulz. Like we aren't already above that tweaked number.






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Interception
Providence Fan
Member since Nov 2008
11089 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

Lulz. Like we aren't already above that tweaked number


Fifty







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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
292514 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


this reminds me of california bailing out bad mortgages

"well we got into this mess by borrowing too much and that artificially increasing prices through a bubble, so what we need to do is to borrow MORE money to ensure that prices don't fall and that homeowners don't feel that crunch"

how does that make any sense long-term?






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Srbtiger06
USA Fan
Buga Nation
Member since Apr 2006
20576 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

how does that make any sense long-term?


IDK if the "long-term" is an actual word anymore.






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
292514 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


agreed





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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
33696 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


The CBO's analysis is obvious and has been well known for a while. Congress will kick the can at the last minute and nothing will happen. Same as always and nothing to even be concerned about IMO.





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CamdenTiger
Member since Aug 2009
26997 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


Hmm... fuzzy on the fiscal cliff. What point is that? I know the threat of the tax increase, that will probably put us back in recession, and spending ceiling, but at what point is the cliff?





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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
33696 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


Cliff primarily is massive cuts to government spending. The government is the largest employer in the country by far. If government spending is cut as deeply as is called for an assload of people loss their jobs. Not primarily federal employees either. Tons and tons of lost jobs in the private sector if government spending is cut like what is called for under the debt ceiling raise a while back.

Also, the bush tax cuts will expire and taxes will go up a bit, but the impact is insignificant to the effect of the spending cuts.

The government spending cuts will result in another recession with a quickness.






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CamdenTiger
Member since Aug 2009
26997 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

The government spending cuts will result in another recession with a quickness


Well, it has to happen sometime, I guess. This thing has been propped up for too long. Each party has wanted the other to take the blame...






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Mo Jeaux
LSU Fan
NYC
Member since Aug 2008
12658 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

Fifty


Dropneed.






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
33696 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

Well, it has to happen sometime, I guess. This thing has been propped up for too long. Each party has wanted the other to take the blame...


Doesn't have to happen and won't happen because congress will pass a measure to delay them. The debt ceiling debacle was a fricking joke. The spending cuts measure they passed was never meant to be enacted and never will be. If it was, the spending cuts would result in massive job losses. All those government contracts to huge construction companies, defenses contractors, etc would see huge cuts and hundreds of thousands of people that work for companies like Northrop and Boeing would be out of work along with countless others as the ripple effect spread.

People that always call for massive arbitrary government spending cuts really lack an understanding of how things work.

The problems are entitlement programs, interest, and to a MUCH lesser extent defense spending. Those are the things that have to be attacked and cut.

Not the money that goes into the private sector in the form of government contracts. But the "fiscal cliff cuts" are across the board cuts. Like swinging a ax to make a brain surgen's cut with a scapel.






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
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re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

The government spending cuts will result in another recession with a quickness.

if we can only sustain our current economy with debt spending, it seems like recession and deflation is needed

nobody said it was going to be fun. austerity isn't about immediate positive gains. it's about long-term sustainability






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
292514 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

Doesn't have to happen

yes it does

quote:

People that always call for massive arbitrary government spending cuts really lack an understanding of how things work.

well we can't afford all of this spending currently. not close. we have a massive debt to pay back. how are we doing to do it?

quote:

The problems are entitlement programs, interest, and to a MUCH lesser extent defense spending. Those are the things that have to be attacked and cut.

it all needs to be cut. but yes, we need to really cut into these programs

quote:

Not the money that goes into the private sector in the form of government contracts

inefficient government allocation of capital is still inefficient government allocation of capital

that money comes from the private sector, which is much more efficient in its use of money

fwiw, entitlement money goes into the private sector also






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
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re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

if we can only sustain our current economy with debt spending, it seems like recession and deflation is needed


That is ridiculous and only makes the problem worse. Makes no sense whatsoever.

Lets make a problem worse so the fix is more difficult? Sounds like the political inactivity that has gotten us to where we are now.






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austingator
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austin
Member since Jan 2009
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re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.








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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
33696 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:

well we can't afford all of this spending currently. not close. we have a massive debt to pay back. how are we doing to do it?


Do you not understand that all government spending COMBINED outside of entitlements and defense is pretty much irrelevant in terms of our debt problem? The government can shut down and stick its head up its arse and spend $0.00 outside of what I just mentioned and we are still fricked it the drivers are not addressed (assuming taxes are not raised).

quote:

inefficient government allocation of capital is still inefficient government allocation of capital

that money comes from the private sector, which is much more efficient in its use of money


Extremely simpleminded. A lot of government spending is both good and necessary. Again, people that just say cut everything really have no real understanding of the economy in general.

There is a reason there is NO WAY either party will let the planned cuts happen. They are not even close to a cut everything or even half of everything and their effects would be so adverse to the economy even the most extreme extremists in both parties will come together to prevent it.






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Zahrim
Colorado Fan
McCamey Texas
Member since Mar 2009
4460 posts

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.








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cssamerican
New Orleans Saints Fan
Member since Mar 2011
2234 posts
 Online 

re: CBO: U.S. Will Enter Recession if Fiscal Cliff Not Avoided.


quote:


well we can't afford all of this spending currently. not close. we have a massive debt to pay back. how are we going to do it?

They will attempt to inflate their way out of debt. Sucks for my kids, but it is the only out that is politically viable.






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