Sunday, December 30, 2012
The Fiscal Cliff or Sky is Falling Syndrome
First, we missed the end of the world on December 21st, the one the Mayans projected ... and we will skip this end of the world too. Sure it makes for good news content, and gives otherwise slow news days something to crow about. But the fiscal cliff is a made up event, made up by the very people who are acting all upset about trying to find a solution - The President and The Congress.
There's no way from Indiana to guess if the Republicans will blink and cut a last minute deal, or if the Democrats will give a little and accept a deal in the next 48 hours. I hope neither side gives in, and they drive off the cliff! I see almost no way possible that we'll ever get real cuts in the size of the federal government without this round of cuts. We need the cuts more than we need to protect earners over $250,000 annually.
The economy is already improving, housing of course is going to lead the way on job creation, and small businesses will create the remaining. Big businesses are becoming less important once again to the economy. Entrepreneurs need only some measure of confidence to go out and borrow, raise funds, and start new businesses. I am one such entrepreneur, finally looking to start a company in 2013. And I am not thinking even a small amount about the $250,000 income level tax problem ... I'd love to have that problem in 2013!
Let's all take a deep breath and accept that cuts are important, caps on spending even more so, a constitutional amendment to balance the budget would be a dream for all of us. The dollar will improve in strength, causing gasoline to drop in price. Interest rates will be maintained, even too low in my opinion, to protect housing and auto sales. And cutting pay-offs to farmers by the way is a good thing. $7 milk is another sky if falling exaggeration ... there is still such a thing as supply and demand.
Posted by Steve Dalton