2013 Is Heading Toward “Fiscal Cliff,” Another Recession | JD Journal
2013 could very well be another economic nosedive for the US, reinstating our all-too-familiar recession atmosphere due to the looming issues Congress is facing regarding the expiration of tax cuts of 2001 and 2003, (the “Bush tax cuts”), and the plan of too sharply curbing runaway government spending. The acute cuts of both defense and non-defense spending would cut the federal deficit by $607 billion, or 4 percent of the GDP, and the GDP could fall a similar amount — giving a double whammy on the economy, resulting in what some economists are calling a “fiscal cliff.”
The second hit to the economy’s status quo will be the $1.2 trillion in automatic budget cuts set to occur on January 1. While government spending has been at a manic rate dwarfing other areas times in our history, a sudden and violent cut could lead to recession. Most of the spending is going into the huge and growing entitlement programs — the sorts of things criticized by Republicans all along.
Womb to the tomb entitlements have sucked this Country dry.....