WOW! That was unexpected!
Posted on 08/22/2012 8:25:12 AM PDT by Kartographer
The Congressional Budget Office said failure to avoid the so-called "fiscal cliff" of expiring tax cuts and automatic spending reductions would cause U.S. gross domestic product to shrink 0.5 percent in 2013. Previously, the non-partisan CBO forecast full-year GDP growth of 0.5 percent.
The first half of 2013 will be particularly difficult, the CBO said in its mid-year forecast update. Tax hikes and spending cuts will cause GDP to shrink 2.9 percent in the first half, compared with a prediction in May for a 1.9 percent contraction.
There will still be a slight bounceback in the second half of 2013, but it will be weaker, with growth of only 1.9 percent, compared with a previous forecast of 2.3 percent growth.
(Excerpt) Read more at finance.yahoo.com ...
Assuming 0bama’s re-election and a huge hike in taxes... yep, next year’s “it” for America.
But, if R&R win with a friendly congress, watch business spending go through the roof the following week.
Well GDP is a problematic measurement since it can be artificially propped up with massive Govt defecit spending. Maybe we are better going over the cliff and getting it over with rather the keep delaying the inevitable.
“Assuming 0bama’s re-election and a huge hike in taxes... yep, next year’s “it” for America.
But, if R&R win with a friendly congress, watch business spending go through the roof the following week.
“
Agree totally. Me thinks the CBO is being politically biased.
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