hacksaw approach to spending reductions that was supposed to hit both sides equally. democrats would hate cut to nondefense programs and republicans wouldn t stand cuts to the military. the theory was the cuts would be so bad there was no way congress would ever allow them to happen, but after months of deliberations, the supercommittee couldn t come to any agreement and simply gave up. so much for theory. now, sequestration was to go into effect on january 1st, 2013. as it happens, that was the same time the so-called bush tax cuts were set to expire. together, it was a supercrisis. fed chairman ben bernanke gave it a name. under current law on january 1st, 2013 there s going to be a massive fiscal cliff of large spending cuts and tax increases. the fiscal cliff was a classic example of what happens, as you just keep putting these things off and another election comes up.
reductions that was supposed to hit both sides equally. democrats would hate cut to nondefense programs and republicans wouldn t stand cuts to the military. the theory was the cuts would be so bad there was no way congress would ever allow them to happen, but after months of deliberations, the supercommittee couldn t come to any agreement and simply gave up. so much for theory. now, sequestration was to go into effect on january 1st, 2013. as it happens, that was the same time the so-called bush tax cuts were set to expire. together, it was a supercrisis. fed chairman ben bernanke gave it a name. under current law on january 1st, 2013 there s going to be a massive fiscal cliff of large spending cuts and tax increases. the fiscal cliff was a classic example of what happens, as you just keep putting these things off and another election comes up.
hacksaw approach to spending reductions that was supposed to hit both sides equally. democrats would hate cut to nondefense programs and republicans wouldn t stand cuts to the military. the theory was the cuts would be so bad there was no way congress would ever allow them to happen, but after months of deliberations, the supercommittee couldn t come to any agreement and simply gave up. so much for theory. now, sequestration was to go into effect on january 1st, 2013. as it happens, that was the same time the so-called bush tax cuts were set to expire. together, it was a supercrisis. fed chairman ben bernanke gave it a name. under current law on january 1st, 2013 there s going to be a massive fiscal cliff of large spending cuts and tax increases. the fiscal cliff was a classic example of what happens, as you just keep putting these things off and
devastate our national security priorities and replace those with cuts elsewhere in the budget. those are two things we could do. right now the fiscal cliff, as it s been described, consist of really those two elements. and the concern is, according to the congressional budget office, if we don t take steps to address that, then in the first six months of next year it could cost our economy 1.3% in economic growth which according to the cvo would probably result in a recession. this is troubling, at least i think it s a bit troubling, is that last november the supercommittee couldn t come up with anything to handle the sequestration, the budget cuts. and after they couldn t do it it seems like everybody gave up. all what anyone did was talk about it and it still isn t fix. now they are saying how important it is to move fast and do something about it. even though nothing has been done since november on either side. coming up in august there s a recess. everybody goes out, nobody is d
devastate our national security priorities and replace those with cuts elsewhere in the budget. those are two things we could do. right now the fiscal cliff, as it s been described, consist of really those two elements. and the concern is, according to the congressional budget office, if we don t take steps to address that, then in the first six months of next year it could cost our economy 1.3% in economic growth which according to the cvo would probably result in a recession. this is troubling, at least i think it s a bit troubling, is that last november the supercommittee couldn t come up with anything to handle the sequestration, the budget cuts. and after they couldn t do it it seems like everybody gave up. all what anyone did was talk about it and it still isn t fix. now they are saying how important it is to move fast and do something about it. even though nothing has been done since november on either side. coming up in august there s a recess. everybody goes out, nobody is d