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View Diary: Short Diary. One Question. The "Fiscal Cliff" vs. the "Grand Bargain". (11 comments)

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  •  Great question. I don't buy the line that it (3+ / 0-)
    Recommended by:
    Chi, ExStr8, quill

    would greatly hurt the economy.  I think it would hurt the defense contractors and other corporate welfare queens.  And that is why we are being told how bad it is.

    I think the tax increases across the board would hurt the middle class when they are hurting.  But I'm not buying the fiscal cliff is suicide, the grand bargain is great line either.

    Expose the lies. Fight for the truth. Push progressive politics. Save our planet. Health care is a right, not a privilege.

    by lighttheway on Fri Nov 09, 2012 at 05:14:00 PM PST

    •  I added a quick edit as you responded... (0+ / 0-)

      ...the middle class tax cuts will be reinstated/continued regardless of anything else. I feel like that's obvious, since any other course of action would be political malpractice for the party that opposed it (the Republicans).

      it fitfully blows, half conceals, half discloses

      by Addison on Fri Nov 09, 2012 at 05:17:13 PM PST

      [ Parent ]

    •  The 'fiscal cliff' in the context of a recovery (0+ / 0-)

      The so-called fiscal cliff is considered a drag on the economy during recession because it would (A) raise taxes on middle-income Americans and (B) reduce government outlays. But it is not an instant effect. that would be the cumulative effect over months or years. It's more of a fiscal bunnyhill.

      Since the 'grand bargain' is a undefined phrase there's not much to be said about it.

      •  The grand bargain isn't really undefined... (2+ / 0-)
        Recommended by:
        blueoasis, Quicklund

        ...the general outline is going to be Simpson-Bowles, with some minor variations around the edges.

        Also, too: to me it's common sense that in no universe would the middle class tax cuts actually be allowed to lapse for any appreciable length of time. They will either be continued as part of a grand bargain, or reinstated by both parties in early 2013 as part of a grand "cover my ass" political strategy.

        it fitfully blows, half conceals, half discloses

        by Addison on Fri Nov 09, 2012 at 05:23:44 PM PST

        [ Parent ]

        •  Middle class cuts shouldn't extend past recovery (0+ / 0-)

          The tax codes in general need many modifications. The general tone of Reaganomics has to be reversed. That means the upper income people have to once again pick up a greater share. But it also means an end to spending more than we collect. And part of that means retiring that national debt from $16T down by 70% - 80%.  And that will  most probably require sacrifice from a broader base. Half-killing Reaganomics will not do.

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