President to Speak Tomorrow on Cliff…(you know what I mean)

November 8th, 2012 at 11:30 pm

As per CNN:

The 1:05 p.m. ET statement…will serve as an opportunity to address some of the big issues that Washington will tackle in the next few months – including staving off the so-called fiscal cliff…

…the White House Thursday said the statement would address “the action we need to take to keep our economy growing and reduce our deficit.”

Good.  I think he needs to get out in front of this ASAP.  It’s also very important to note the part about keeping the economy growing.  Virtually all the fiscal cliff discussions I’ve had in the past few days–and that’s all folks have been talking about–involve tax and spending changes to reduce the deficit.  Tax reform, grand bargain stuff–phrases that I find pretty useless if not misleading–everyone has their own ideas of what they mean, and much of the time what they mean has little to do with reforms or bargains.

We also need short-term stimulative measures in place next year to build on the economic momentum we have and to offset the fiscal drag from whatever parts of the cliff kick in, measures that can help lower the 7.9% unemployment and 14.6% under-employment rates.

Replacing the expiring payroll tax break is particularly important given recent wage trends–see figure showing slowest year-over-year growth on record (nominal) for this hourly wage series.   And post-Sandy, rebuilding and strengthening local infrastructure may have more currency now.



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2 comments in reply to "President to Speak Tomorrow on Cliff…(you know what I mean)"

  1. PC in SC says:

    What are the chances of a financial transaction tax (aka Robin Hood Tax) passing here in the US and would it really help “massive revenue for job creation, global health, climate, and other pressing needs?”

    ” At a meeting of European finance ministers on October 9, 11 governments committed to implementing the [financial transaction tax (aka Robin Hood Tax)]. This is two more than the minimum number needed for an official EU agreement. And it is a huge victory for those of us — not just in Europe but also in the United States and around the world — who’ve been pushing for such taxes as a way to curb short-term speculation and generate massive revenue for job creation, global health, climate, and other pressing needs.”

  2. sand brim says:

    The financial transaction tax (the Robin Hood Tax) makes the most sense and is easy to implement. The US implemented a small one in 1932 to help move the economy during the Great Depression. Brazil, the world’s fastest growing economy has an FTT. Already there is some push back from the financial sector about the impact on the stock market. If the FTT can slow down the High Frequency Trading that is now creating a bubble in commodities, driving up prices and again destabilizing the market, that would be a good thing. It is ludicrous to say it would crash the economy as some financiers are saying. It has been around and has proved effective. I think we are all hip to the crying “wolf” about any measures that slow down the move of capital to the 1%. With the rapidly growing inequality and the dire situation in many communities, this is a solution that can work. The only group in the US that has not lost out due to the recession, is the very group that caused it. It is time for a “Robin Hood Tax.”