Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Why We Should Not Fear the Fiscal Cliff

Politics / UK Politics Nov 18, 2012 - 04:51 AM GMT

By: Kevin_Geary

Politics

Everyone is worrying about the "Fiscal Cliff" but I say, "bring it on!" It will be great for America (and better than the alternative).
Here's why:
First of all, all the taxes that were cut under George W.Bush led us into a fiscal catastrophe, especially when he started two devastatingly costly and unnecessary wars, that both lasted longer than any other American wars (and Afghanistan, longer than World War I, World War II and the Civil War put together!) So, restoring all tax rates to the level they were when Clinton left office, will bring in huge amounts of revenue, which we desperately need.

Secondly, the "5% cuts across the board" to all government programs including the Military, Education, the Arts, Health and everything else, is actually the only way we'll ever get serious spending cuts made. All corporations, and many households can easily cut 5% off their budgets, and regularly do so, in lean and hard times. Even 10% is manageable.
 
The fact is that the austerity being imposed on Greece, Spain, Portugal and Ireland all have increased taxes more, and reduced spending by far more, than anything that will happen here in the so-called "Fiscal Cliff" and were the IMF to come in to the US to "rescue" us from our long-lived folly, they'd be imposing far higher taxes, and far deeper cuts than anything in the "Fiscal Cliff"!
 
I truly believe that this country needs severe"shock treatment" to restore the balance after more than a decade of profligacy by the Congress. And Congress will do nothing in the next few weeks to fundamentally restore the taxes (revenue) or really cut spending (as opposed to merely decreasing the annual percentage level increases in the various programs funded by Congress).
Since the Democrats won't be prepared to cut spending and the Republicans won't be prepared to bring back tax rates that saw this country go into a surplus for the first time in decades, the "Fiscal Cliff" will actually achieve what neither party is willing to do politically (even though they know it's imperative financially).
 
So, if we cross the Rubicon (or perhaps, the Delaware?) and fall off the "Fiscal Cliff," it will probably be the very best thing that could happen, to get our finances back into the black. And we need that to happen, desperately.
Kevin Geary
http://kevingearyart.com
http://behance.net/kevingearyart
 
Kevin Geary is an artist, poet, and writer about art, politics and economics, especially economics from an historical perspective. His articles and poetry have been published in newspapers and magazines, and online, including the "Market Oracle" website, and a collection of his poetry "Paris and Other Poems" was published in 2009.
 
He was the political cartoonist for the Financial Times at the age of 19. His first one-man show was opened by Harold Wilson the prime minister of the UK in 1972. He has had over 75 exhibitions of his art since. Renowned for his portraits for over 35 years, his list of  renowned sitters read like a "Who's Who" of political, musical religious and royal figures. His works are to be found in several museums, including the Primary collection of the National Portrait Gallery in London.
 
He has established a great reputation for his abstract works as well in the last 10 years, and his works have also sold on the secondary market at auction houses such as Christie's, in both Europe and the US.
He currently resides in the US, in Arizona.

© 2010 Copyright Kevin Geary - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in