Breadcrumbs

The Fiscal Cliff and the Next Recession?


November 9, 2012

With the elections over and Congress returning for its lame duck session next week, the so called “fiscal cliff” is now topic number one in Washington. This afternoon President Obama will deliver a national address about it and various groups of Senators and Congressman are meeting behind the scenes to explore legislative solutions while non-profit budget groups are offering suggested policy options.

Yesterday the Congressional Budget released another report spelling out the potential costs to the nation if Congress does not act to avoid the combination of tax increases and automatic federal spending cuts that make up the cliff. The CBO said that going over the edge would lead to a new recession, yet just simply avoiding it would add trillions to the nation’s debt. The report predicts unemployment would rise to 9.1 percent by the end of 2013.

To read the new CBO report visit: http://www.cbo.gov/publication/43692

The summary discusses the consequences of rising federal debt and factors that are increasing the pressure on the budget.

Prepared by: Brent Jaquet, Cavarocchi-Ruscio-Dennis Associates, SUS Governmental Relations Consultants, Washington, D.C.

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