Skip to comments.CBO: "Fiscal cliff" would spark recession
Posted on 11/08/2012 1:00:23 PM PST by ExxonPatrolUs
WASHINGTON (AP) -- A new government report says the so-called fiscal cliff would send the economy back into recession and cause a spike in the jobless rate to 9.1 percent by next fall. The Congressional Budget Office analysis says the combination of automatic tax increases and spending cuts would cut the deficit by $503 billion through next September. But that would cause the economy to shrink by 0.5 percent next year. The report comes as a newly re-elected President Barack Obama and Congress are seeking ways to avert the problems. The study estimates that America's gross domestic product would grow by 2.2 percent if the Bush-era tax rates were extended and expand by almost 3 percent if Obama's payroll tax cut and jobless benefits for the long-term unemployed are extended.
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I say go over the cliff. Unless we talk about stalling obamacare, we are going over it anyway.
We ARE in a recession. We never got out of a recession.
Someone should advise the members of the CBO, in their Ivory Tower, that outside the beltway, the recession never ended and has become The 0bama Depression.
It will be much worse than a recession, or depression.
the likes of which this country has never seen
After all we do keep changing how we crunch the numbers to get what we want out of them. /sarcasm
Oh Tell me, O great Obama the Messiah, when exactly did the recession end again? You said it ended in March if 2009, and yet it seems to have gotten worse. Why did you lie to us, O Great One Messiah Obama? Tell us why you lied, O Messiah Obama?
I just had to get that off my chest. I really hate liars
This is the “Blame the obamacare recession on the GOP House” page from the marxist playbook. FUCBO.
I think we should let it happen. Let’s go over the cliff. Biggest impact it to the “Bush tax cuts for the rich” and military. Liberals should be thrilled.
despite the fact that the dems have owned the Senate for what 8 yrs now without a budget for three?.....
As of yesterday, we accelerate.
WTF are we in?
SCARE TACTIC!! SCARE TACTIC!! WORKED IN 2008!! LET’S TRY IT AGAIN!! MUST NEVER CUT SPENDING!! MILK PRICES WILL SKYROCKET!! BUT WE DON’T GIVE A DAMN ABOUT GAS PRICES!! SCARE TACTIC!! SCARE TACTIC!! WORKED IN 2008!! LET’S TRY IT AGAIN!!
“..and cause a spike in the jobless rate to 9.1 percent by next fall.”
As if the jobless rate isn’t ALREADY 9.1%.
Another stock-market ass-kicking today (it’s all working out so friggin’ well)....
Embrace the fiscal cliff. Prepare for hyperinflation.
Damned the torpedoes, full speed ahead!
“Spark” a recession?
WTF are we in?
The economys is going to get a lot worse next year because of obamacare regs & taxes and the dims are laying the groundwork to blame the GOP. If the beltway GOP does not go on offense NOW they will be buried in 2014.
The narrative is being set now by the dims and presstitues and we saw how well the GOP played catch up in the election.
There is NO CLIFF.
All that is going to happen is things are reset to 2000-2001
BTW- The IRS computers are already programed for all of the Bush ERA tax cuts to expire anyway. If anything is extended
then the IRS will have to re-program the computer mainframes. We are already looking at a delayed filing season. Let it go back to 2000-2001 rates. Democrats control 2/3’s.. White House and Senate. The burden of leadership and compromise is on their shoulders not Repubs.
We are in a Depression that never ended and now they will vote not to cut the federal spending to avert this never ending crisis so in 12-18 mos we can experience the joy of a total collapse.
Combination of spending cuts and tax increases? My guess is the tax increases would be causing it way more than any spending cuts.
This a pretty much an admission that the recession has not really ended, except for the infusion of made-up cash from the Fed. It’s being propped up by a credit card.
I’ll take the cliff for 100 Alex. How much worse can it get?
If Team Boehner starts from the position that the GOP cannot end up being blamed by the MSM for anything, then all they will be negotiating are the terms of surrender, which will end up being unconditional.
On the spending side, the “fiscal cliff” would take military spending back to what we were spending in 2006. That is in real dollars, i.e., adjusted for inflation. This is not the crisis for the military that has been portrayed. Obviously, a massive tax increase would be disastrous but we should not start from the perspective that military spending cuts should be off the table because we certainly can achieve efficiencies there without compromising national security.
Just let this thing collapse, and it's survival of the fittest. I like our chances over the libs.
How can we go back to another recession when we never left the last one.
Obama wants us to go over the cliff, It’s amajor part of Cloward-Pliven
What utter BS. So what is the CBO’s answer? More borrowing? How does that help anything? Are we insane? If someone is using credit cards to live above their means, is the answer to cut back to live within income or is the answer to get a couple more credit cards? We truly have gone insane as a nation to think that its irresponsible to cut spending.
What utter BS. So what is the CBOs answer? More borrowing?
More importantly, what is the POTUS’s answer? Unfortunately, Bug Out Barry is headed to Burma next week to avoid this issue. There will be zero leadership from the WH for the next four years and we will pay for it.
The CBO revenue estimates are based on static analysis.
Tax collections will certainly not increase as much as they say, not after the first couple of months. Incomes will fall, income will be hidden or delayed, people will lose their jobs and lose all their income, etc.
Dynamic analysis of revenues should be based on their estimate of the economic effects. They have plenty of data with which to model a dynamic revenue scenario.
Good, no deal. America voted for Obama, this is a consequence of that.
Propaganda and lies in order to blame what is coming on the republicans. There is no way out of bad times here. It is simply impossible. It cannot be solved in a way that is both mathematically and politically possible. And we have gone so far into the entitlement realm that any mathematical solution leads to mobs and riots from those that feel entitled.