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The Fiscal Cliff: More Like a Ski Jump

No deal in Washington is not the end-of-the-world. It's the beginning of a new normal

I have to hand it to the clowns in Washington and the greedy snakes on Wall Street — it seems all you hear about on every media outlet is the pending fiscal cliff. To hear them talk, it’s the end of the world. But just like the Mayan version a few weeks ago, it’s more BS that these few want you to believe. If no “deal” is made before the new year, tax rate and revenues will go up, and spending will go down.

Think about it – isn’t that exactly what Americans want, and what they just voted for in November? The tax rates will return to the Clinton era rates, when 23 million jobs were created, the economy grew substantially, and we had a surplus — not a deficit. What’s wrong with that? Add to that military spending cuts with two wars over, and you have a recipe for economic growth.  So what’s the issue?

Wall Street, the super rich, and big business do not want to give up any of their greedy gain made during the Bush years, which continued under Obama’s first term. For these greedy, there is never enough. They always want more.

So what will really happen when no agreement is made and tax rates and revenues go up? Well, at first the stock market will drop.  Maybe even substantially. And there will be a lot of clatter about companies laying off more people to maintain their “bottom line." But then the wiser — and likely the greedier — in business  (and eventually on Wall Street), will understand that a new normal is occurring.

This new normal will mean they will have to pay a fairer share of the costs of our society and government. This new normal where CEO pays fall from 475 times their employees pay, back nearer to 40 times as it was pre-1980’s. A new normal where business operating income percentage is reduced, but operating income dollars still grows, because the economic market is growing. A new normal where more people are employed, making liveable wages that they spend on housing, food, transportation and consumer goods. 

This will drive the economic growth that is needed, and create the tax revenues needed to reduce then eliminate the deficit.  

The rich will still get richer, just not at the absurd rate they are today, and not on the backs of the rest of us taxpayers. And Wall Street will recover, once they understand that getting a smaller return is much better than getting no return at all.  

So just like the Mayan end-of-the-world I say don’t worry about this fiscal cliff. It will be more like a ski jump than anything else.     

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

clamdigger January 02, 2013 at 12:47 AM
everyone needs to contribute...case closed. the main priority which seems to established itself is people want socialism. People are mad at the fact there are others making more money than they are. People want to dip into the pockets of those who have wealth, even if it's just little more than they have. Everyone wants a new car, bigger house and all the little perks that go with it and when they can't get it it's because the rich don't want them to have it. gaining wealth takes work, years of hard work and sacrifice for the majority of people. Yes there are those born into wealth and there are those who inherit wealth, but those who want more out of the rich are those who will not go the extra mile to get ahead or make the necessary sacrifices such as time w/ family or long hours and hard work. For all those who want socialized medicine,social programs, it's time to pony up and pay into a system that is able to garner money from every person not just a select group.
Eleanor January 02, 2013 at 03:36 AM
@jonathan I did not miss your point, but you did make mine, I spoke only to the issue. I did not drag in names, use derogatory terms or get personal. Yes, there are people who need help, but the best help you can give them is getting them back on their feet and then educating them as to how they might be able to avoid the situations in the future. The problem with dependency programs is that the funding, once instituted, never goes away. As I said earlier, it is a shame that tax cuts are always temporary but tax hikes never are. As for my point about the rudeness of the left - my reference was to make a simple point, not to expound on the extend of my travels, because that was not the issue and I doubt my lengthy itinerary would be interesting here. You, on the other hand, who do not know me have said that I "dont know anything" that I am "judgmental" and "mean spirited" and "phony" and that I "speak for women of another time warp". The fact that you could not respond without making a personal attack against me undercuts any merit that your arguments may have had. In fact, the remarks about my "shacking up" with someone during the hurricane can be said to be libelous - I really dont care, you have answered the way the left usually answered. However the person who calls himself "Samstie" may take issue with having his name and reputation written about in that way. Why is it so hard for you to just address the issue without getting personal?
johnathan January 02, 2013 at 12:49 PM
Ok Eleanor - you win Samstie did spend the storm stuffed into a porta pottie and was blown down Asbury and taken out of it and hosed down by Ready's staff - he did not shack up with you. I am sure, however, it was his loss.
christine January 02, 2013 at 03:20 PM
Elaine..I'm not into politics and arguing over it..I just have a bit of advice,while making your arguments,stick to the facts,don't pepper in "dis" and "dat" and "yo" and "St Ronnie" in your points and comments..You would sound way more intelligent and less like a 14 year old boy..IMO
Al Terego January 02, 2013 at 03:52 PM
Eleanor - Thanks for defending the honor and integrety of Sam Samstie - a true paytribute and protector of the middling class. There is no more devoted 1 placenta and part-time job creator in the puntitocracy. http://oceancity.patch.com/blog_posts/sam-samstie-city-council-candidate-profile


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