Everything is impossibly complicated

Fiscal Relief

I’ve finally come across an article about the “fiscal cliff” that doesn’t involve invoking spectres of doom which, of course, are all necessarily a result of the character and principles of whoever you don’t like:

http://www.theatlantic.com/business/archive/2012/12/the-bright-side-of-falling-off-the-fiscal-cliff/266705/

In short, there’s good reason to think that the results of the “fiscal cliff” will actually be largely beneficial. A number of indicators show that America’s economy is growing stronger (stocks, GDP, wages, inflation, etc.). The Congressional Budget Office study that says there will be a 1% recession as a result of the budget cuts and tax hikes only predicts that for the first half of 2012, and also says that it’ll switch to 2% growth after that. Much-needed defense cuts will take place which probably wouldn’t otherwise. And of course, the long term effect of the “cliff” will be reducing the deficit–which was the goal all along.

As far as the few real problems with the budget cuts/tax hikes package go, they can still be addressed by Congress without having to come to a deal to avert the whole thing. And while it’s annoying to have to pay more taxes, I think taxes for my household will only go up about $800 total. That’s hardly the crippling burden that the media have been portraying.

Media sources tend to thrive on disaster. But there’s good reason to think that most of it is just hot air, as usual.

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