Obama needs to channel FDR on the “fiscal cliff”
If the President and Congress don't reach a deal to avoid the sequester and fiscal cliff but January 1, I believe. We are going to see a combination of middle class tax cuts, starting at a 50% tax hike for lower middle class workers. As well as across the board budget cuts in the Federal Government, which would also cost the country jobs, both in private and public sectors. The middle class tax hikes would result in a bigger punch or knockdown of the economy, because we would see millions. If not tens of millions of people spending less money because of the incoming tax hikes, which I don't believe is something that. Progressives understand at least the ones I've talked to, they tend to see this as another opportunity to generate. More money for the Federal Government to spend and don't seem to understand the consequences. Of what a middle class tax hike of this importance could do to an economy thats already sluggish, at 2.7% economic growth. With 7.9% unemployment these aren't good numbers but they could be worse.
So of course we need to avoid the fiscal cliff and the sequester and its just a matter of how we do it but the deal. Is already on the table, that involves savings in entitlements, savings in defense with Afghanistan and Iraq by. Not putting that money back in the defense budget and I would go further by closing bases in Europe, Saudi Arabia, Japan and Korea. All developed nations that can afford to defend themselves, that was already suggested by the Simpson-Bowles debt plan. And its a question of now can we get House Republicans to go along with taxing millionaires more to pay for deficit reduction. And if they do that and we can avert another crisis, then we can also put another economic growth package. On the table, that even the wealthy could benefit from, if they invest in America and create jobs here and. Not take those resources oversees, that would also include new infrastructure investment and new middle class tax cuts.
In case its not obvious enough, Barack Obama is not Franklin Roosevelt, I know shocking as it may sound kinda. Like hearing Jimmy Hendrix is not Frank Sinatra or something, Barack is not a Social Democrat and thats not who needs. To listen to, he's a Moderate-Liberal at best and his job right now is to advert another crisis and make Speaker Boehner take a deal like this. That has things in it that both sides want and will solve the problems.