At the end of this year American’s will be faced with a potential fiscal crisis that may send the economy in a direction no one expected it to go.
The people we elected to Congress have failed to deal with the fiscal mess that they (and we allowed) created.
Instead of making tough decisions about money matters a provision in the law which they enacted will start events tumbling in a direction that we may not be able to control.
As part of a deal with the President over debt ceiling issues the Senate created a “super committee” to review the budget and make recommendations on where and how much to cut. They were also supposed to look at tax cuts/increases.
If for whatever reason they were not able to do their job an “automatic” provision would kick in making the decision for them and us - a ten percent cut to the budget and allow tax cuts to disappear or if you would prefer tax increases to go into effect. Both of which would have a detrimental effect on our fragile economy.
Automatic cuts mean government will not be buying or paying for things. And that in turn means businesses and individuals will see the money supply reduced with the potential for layoffs. That translates into people not having money to spend.
Not good for their local and our national economy.
You can add to that the effect of more money coming out of American paychecks, money that could have been spend on goods and services, also not good for local and our national economy.
If you think that congress will be able to head this mess off before we go over what has been called the “fiscal cliff” think again.
My conversations with one Congressman sounded an ominous warning – it is going to happen and there is nothing as of this moment to stop it.
Aren’t you glad we elect these folks to such important positions in our nations’ capital only to have some “automatic” provision do the job they were hired but too afraid to do?