Warning: Cliff diving may result in depression

Warning%3A+Cliff+diving+may+result+in+depression

Rachel Lang, Staff Writer

One of the central debates that has been going on for decades, but heightened since President Obama has been in office, is the question to raise taxes on anybody that is making over $250,000 a year, but not to raise the middle class taxes. The Democrats argue that it is not a hardship for the prosperous to get taxed for the benefit of the country because they do not want to put anymore burden on the middle class or lower class people. However, the Republicans would like to renew the Bush tax cut before they expire and cut government programs such as grants for school, Pubic Aid, Medicare, etc.

In 2011 Congress created the Budget Control Act which had the Fiscal Cliff in order, which is a man made “Cliff” that will send the economy over the edge in a deeper recession if both parties do not come to an agreement before December 31, 2012. If this happens then the gross domestic product would increase by four percentage points, which is why the economy would hit a “depression.”

The NY Times stated, “Many economists say that [Fiscal Cliff] might trigger a new recession sometime next year. And that, in turn, could hurt the whole global economy as our trading partners start to feel the contraction.” Some predict that unemployment would rise nine percent, and there would be a loss of two million jobs. While others believe that the only consequence is that there would be no Bush tax cuts and there would be Sequestration, which is where the government would have to cut back on their spending.

Democrat Senate Majority Leader Harry Reid stated, “We are not going to mess with Social Security.” Although the Democrats would like to solve the debate, CBS explained that some are saying they would rather “fall” then completely loose the health security for American seniors. During a press conference Nancy Pelosi said, “They should not have cuts made to them in order to give tax cuts to the rich. Any adjustments we would make in them would be to make them stronger, as we did in the Affordable Care Act.”

For the most part, if the Fiscal Cliff would occur, nothing would happen to social security. Republicans are just simply trying to “cut down” because of recent dialogue. Americans do not know what the future will hold. Hopefully the two parties can determine a resolution before December 31st.  If anyone would like to follow and see the outcome, the news continues to cover the Fiscal Cliff with daily updates.