But there are good reasons to take that with a grain of salt, however.First, the size of multipliers is controversial, and they may be much smaller.“Congress and the president should increase taxes on the wealthy, which have caused all of this because of their unmitigated greed, and force them to pay their fair share – beginning next year.” Without more revenue coming in, the US economy WILL certainly crash. It is a shortfall in revenue issue, which is caused solely by the wealthy refusing to pay their fair share in taxes.It’s not rocket science, if people like you would begin to tell the truth. It’s old-fashioned greed by the wealthy class who care about nothing but themselves and maintaining ther egregious lifestyles at the expene of everyone else.PHOTO (Top): The Dow Jones Industrial Average on a board at the New York Stock Exchange at the end of the trading day, October 15, 2008.Wall Street had its worst day since the 1987 stock market crash.Views expressed in the comments do not represent those of Reuters.For more information on our comment policy, see Let me rephrase one sentence to straigten out the numerous errors in your propaganda article.
The fiscal cliff is pretty much imaginary, most of what will happen on January 1 can be addressed with subsequent legislation so the impacts are relatively short term.Cliff diving would have a significant impact on financial markets, impairing asset values, exacerbating credit stringency and amplifying the direct effects on the Main Street economy.These effects cannot be “unwound” by retroactively legislating away the fiscal cliff.I’d think an economist with even the vaguest notions of Great Depression reforms to the banking system would know this.Yes and with programmed and HFT trading the market can drop several hundred points and rebound within hours for no apparent reason.
But even a multiplier of 1 yields a $540 billion decline – a recession of 3 percent. If Congress adopted a new fiscal policy quickly, the recession could be short-lived.