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View Diary: Cliff-hanging: tax cuts v tax cuts (11 comments)

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  •  Much of the economy works on expectations (2+ / 0-)
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    coffeetalk, VClib

    If businesses are concerned that government policies will cause a recession, businesses will tend to delay hiring, and have layoffs sooner.  The result is that a recession becomes more likely just because of expectations.

    The most important way to protect the environment is not to have more than one child.

    by nextstep on Mon Nov 12, 2012 at 01:11:12 PM PST

    [ Parent ]

    •  OK, but this cuts both ways. (0+ / 0-)

      Businesses will make decisions in either case.

      If they expect the GOP status quo, this will lead to more of what we have seen.

      Also, I think that everyone would be willing to wait a bit to see what the new Congress did in its first month or two.

      If the standoff goes for 6 months, then, yes, that would be a disaster.

      But I don't see that happening ... IF THE DEMS DON'T LOSE THEIR NERVE!

      And, again, it's all moot.

      If the GOP wises up, we'll have a compromise deal, potentially one that does more damage than the curb would do.

      If it refuses to play along, then that's where we'll be whether we like it or not.

      And I still believe that the dynamics in the situation will drive both parties AWAY from their worst instincts. The situation they created will take away all their comfortable options. It's the folly they jointly created. And for once, we win.


      "I'm a dweller on the threshold ..."

      by thresholder on Mon Nov 12, 2012 at 01:27:14 PM PST

      [ Parent ]

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