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The Fiscal Cliff: More Like a Ski Jump

No deal in Washington is not the end-of-the-world. It's the beginning of a new normal

I have to hand it to the clowns in Washington and the greedy snakes on Wall Street — it seems all you hear about on every media outlet is the pending fiscal cliff. To hear them talk, it’s the end of the world. But just like the Mayan version a few weeks ago, it’s more BS that these few want you to believe. If no “deal” is made before the new year, tax rate and revenues will go up, and spending will go down.

Think about it – isn’t that exactly what Americans want, and what they just voted for in November? The tax rates will return to the Clinton era rates, when 23 million jobs were created, the economy grew substantially, and we had a surplus — not a deficit. What’s wrong with that? Add to that military spending cuts with two wars over, and you have a recipe for economic growth.  So what’s the issue?

Wall Street, the super rich, and big business do not want to give up any of their greedy gain made during the Bush years, which continued under Obama’s first term. For these greedy, there is never enough. They always want more.

So what will really happen when no agreement is made and tax rates and revenues go up? Well, at first the stock market will drop.  Maybe even substantially. And there will be a lot of clatter about companies laying off more people to maintain their “bottom line." But then the wiser — and likely the greedier — in business  (and eventually on Wall Street), will understand that a new normal is occurring.

This new normal will mean they will have to pay a fairer share of the costs of our society and government. This new normal where CEO pays fall from 475 times their employees pay, back nearer to 40 times as it was pre-1980’s. A new normal where business operating income percentage is reduced, but operating income dollars still grows, because the economic market is growing. A new normal where more people are employed, making liveable wages that they spend on housing, food, transportation and consumer goods. 

This will drive the economic growth that is needed, and create the tax revenues needed to reduce then eliminate the deficit.  

The rich will still get richer, just not at the absurd rate they are today, and not on the backs of the rest of us taxpayers. And Wall Street will recover, once they understand that getting a smaller return is much better than getting no return at all.  

So just like the Mayan end-of-the-world I say don’t worry about this fiscal cliff. It will be more like a ski jump than anything else.     

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Chica2ool January 01, 2013 at 03:07 AM
¡Muchas gracias Elaine and Frank Rizzo! ¡You both ROCK!
Just another day January 01, 2013 at 03:19 AM
@Elaine and Frank Rizzo It's people like you both and that POS president you support who allow Chica2ool and her anchor babies to get welfare, section 8 housing and other freebees that I shouldn't be paying for and should be for legit AMERICANS. DemocRATS are the problem with the USA.
Chica2ool January 01, 2013 at 06:32 AM
¡Muchas gracias to I Have Spoken & Feliz Año Nuevo!
Spooner January 01, 2013 at 06:41 AM
Elaine- you gotta get beyond the Clinton era rhetoric when is comes to job creation. One of best sources of examining jobs and their details is the BLS... "Earnings and employment trends in the 1990s" - written in March, 2000 ...The stagnation in real earnings for much of the 1990s stands in marked contrast to the considerable growth in employment during that decade. As of December 1999, the end of the period examined in this article, the current economic expansion had lasted almost 9 years. During that period, total employment, as measured by the Current Population Survey (CPS), grew by more than 16½ million. Previous research, using data from the CPS, showed that employment growth during the first half of the 1990s was concentrated in both relatively higher paying and relatively lower paying job categories, with a decline in the number of jobs paying midlevel wages... http://www.bls.gov/opub/mlr/2000/03/art2exc.htm
Elaine January 01, 2013 at 06:52 AM
Spooner what you have to get over is your denial that the Bush admin Lied about Iraq didnt put 2 unfunded wars on the books or Medicare part D or the interest somehow shedding 700 k jobs a month was either Clintons fault or Black Jesus I gotta tell you loved the you tube vides of Bush and Brownie and Bush position on housing Did like the facts I posted as to whom the 47 percenters really are? 22 million jobs created under the Clinton Admin and that the reality of it
Elaine January 01, 2013 at 07:12 AM
Its 2013 its time to put down the Ratpublicon Kool Aid come out of denial. reality is waiting
Jackie Lee January 01, 2013 at 07:52 AM
Where's Sam Samstie - Beautiful, poignant, devastating, and fun. You had to be stoned when your wrote it. Keep that bong torched and give us some more poetry, baby.
wookfish January 01, 2013 at 10:30 AM
wake up Elaine you're having a dream..oh wait you're a liberal you live in a dream world..no free phone for you.
wookfish January 01, 2013 at 10:31 AM
Spoon, they don't understand FACTS...it confuses them
Eleanor January 01, 2013 at 11:23 AM
Robert Yates made sense about the responsibility of our elected public SERVANTS- not rulers. And he managed to do it without the snarky name calling that is a turn off. When some people indulge in 'St Ronnie', 'Ratpublicon', bashing Bristol Palin, who has never used welfare (though the child's father has) - even bringing her into the argument - shows that the party that says it promotes tolerance, diversity and is against 'hate speech' may need to go in for a little self examination. The government operates on the money that we send them. A large percentage of high earners send them a larger percentage of their money than lower earners and a significant percentage file no income taxes at all. All the talk about 'fair share' never addresses those who pay no share. And when the government does not take in enough on taxes, they have to look to loans or print up more paper dollars to support all of their programs. Now a sensible person faced with a budget problem would look at his balance sheet and ask: Is everybody who owes me money paying me? Do I want to take on the interest rate in a loan? How can I fulfill my obligations (in the case of the government, the Constitutional obligations) and what really are my needs versus my wants? This is not about President Bush anymore, not about Bristol Palin, Wall Street or any of the other diversions thrown into the mix. It is about how our hard earned money is being spent and if our public servants could do a better job.
jerseyswamps January 01, 2013 at 11:32 AM
Nice, someone with something to contribute to the discussion. But I'm sure the usual suspects you mention will wake up soon and come around to mark their territory and bring the discussion down to a puppy's level.
wookfish January 01, 2013 at 01:12 PM
gonna ruin their day Eleanor,YOU make sense...new concept for them
Saw Sam Samstie Recently January 01, 2013 at 02:31 PM
Eleanor - Right - It's not about Bush anymore as long as you acknowledge that we are still trying to clean up his mess (at lease one party is). It is though, as you clearly show, about people dragging down the economy, the discussion, the nation's spirit, by relentlessly blaming the least among us. And in your view, that is a big "least": 47% of your fellow Americans. You do it by falsely stating that they do not pay taxes (the fact is that everyone pays taxes). Relying on just one of many types of taxes to make your case is of course invalid. I assume you know better so that makes it deliberately disingenuous. There is lots more fundamentally wrong with your position - foremost in the balance is that - typical of those who make your case - you completely neglect the essential matter of how would we deal with half of our population being denied any government assistance - including SSI, medicade and medicare, veterins bennies, disability, unemployment. And how would the costs to society of stopping those contributions compare to the current dollar savings? But this is nuanced, reality-based thinking....not in your ilk's baliwick. I say all of this knowing that it will not change your thinking one bit - other than to steel you up to defend it even more ferociusly and incorrectly.
Elaine January 01, 2013 at 03:14 PM
Eleanor try reading this http://www.theatlantic.com/business/archive/2012/09/the-47-who-they-are-where-they-live-how-they-vote-and-why-they-matter/262506/ when your done with that try this google corps that dont pay taxes I see my posts have be erased by the folks on the right who dont want to see or read the Truth
johnathan January 01, 2013 at 03:29 PM
Eleanor - someone erased your posts? I don't think it was those on the right because if you look to the right - there is no one there. Everyone seems to be to the left of you except Rand Paul - who by the way says idiotic, blatantly untrue things and is one of the tea party fools who don't even bother to find out what they are talking about. And how impressive that YOU, Elearnor are the speaker of the Truth!! That is also the problem with you Tea Party people, you think you have the Truth so you don't bother to hear anything that may contradict your so called Truth. Romney lost, Eleanor and I am sure the Tea Party reps who have tried again and again to destroy democracy by only adhering to their own particular Truth and not understanding that we have a system where compromise is necessary it is called checks and balances so no one Truth is adhered to - that is what Democracy is all about - a coming together of many truths - not just your Truth. And Sam Samstie, thank goodness you are back. Where have you been????
johnathan January 01, 2013 at 03:35 PM
And if Bristol Palin did not have a family to back her up - she would have needed welfare and medicaid to help her get through her pregnancy and child birth and that is what our country is supposed to do, unless you want our country to be more like 3rd world countries where young women in that position either have to go out on the street and beg or prostitute themselves. Is that what you people want? Go travel to some 3rd world countries where you will see disabled people on the street begging - is that what you people on the right want? Well - the voters said, NO that is not the country we want So Eleanor - you are out!
Elaine January 01, 2013 at 03:46 PM
Johnathan any idea how Eleanor would try and spin this? "There are some not-so-poor outliers, like the 7,000 millionaires who paid no federal income taxes in 2011. But for the most part, when you hear "The 47%" you should think "old retired folks and poor working families."
johnathan January 01, 2013 at 03:59 PM
Right or Mitt's 13.5% on his many, many millions when the guy making $30,000 is paying 20% Eleanor is ruled by resentment -- but the trouble is - she resents the wrong people The poor have no power it is the rich who are manipulating and pulling the strings. Eleanor is one of the puppets maniupulated by the rich to keep them in power Resent the poor slob on welfare or the single mother with her kids on medicaid The problem with entitlements is Medicare - because old people -even those who are terminal get test after expensive test that they do not need - the doctors get rich and we all pay --- (and if medicaid is abused, who is getting the benefit besides poor people - the doctors that's who)
Samstie Rescued at Ready's January 01, 2013 at 04:13 PM
Jonathan - Nice. BTW - Samstie is around but not back - you must have heard about his Sandy experience (breifly - tides came up while he was in the portapottie at the OC annex building - portabottie was knocked over and it, with Samstie trapped in it, were carried down Asbury until it wedged into the back alley at Readys where he was pried out and hosed down by the kitchen staff on Tuesday morning - long story and best told by him)....I think his buddy Al Terego may be writing again though.
johnathan January 01, 2013 at 04:55 PM
Wow that's some tale bout Samstie's super storm experience. Those guys at Ready's are the best - to make such a sacrifice and do the dirty work of prying him out. Personally, I would have had to leave him there as he just shakes things up too much in OC and is way too opinionated. And wasn't he supposed to get out of town like he was told? I think I heard a rumor he was shacked up at Eleanor's house during the storm, (she didn't leave either) so I think the whole porta pottie thing is just a fabrication to keep everyone's stellar reputation from being tarnished. Maybe others would never put Samstie and Eleanor cuddled up together during the storm, but I see and it works for me. Try to keep this rumor under your hat with the several other nasty little tidbits that swirl around when things get boring in wintertime. The visual of Eleanor and Samstie kinda hurts too.
Eleanor January 01, 2013 at 07:06 PM
@jonathan - I listen to the truth. What I don't listen to is name calling, needless bashing and drawing polarizing figures into an argument that has nothing to do with the topic. If you want my attention, you make sense and leave the nasty home. Start with the "idiotic" and "fools" and "St Ronnie" and I just tune out. Sorry - if you cant make your point rationally with a bit of good manners, you will have to limit your audience to those of your own point of view. And I think it is a wonderful thing that Bristol had a large family who stepped up for her, but she is also working (at a drs office, where she has worked for a few years while taking college courses) and has managed to take care of her son without much help or support from the son's father. What I want for women is not to make Bristols mistake, which was to get involved with a guy who obviously wasnt what a friend calls "marriage material" - poorly educated, unemployed (still is) and not a "keeper". The ideal situation would have been not to get into that situation in the first place. Feminism used to be about women moving up in the working world, taking advantage of educational opportunities so that they could be independent and self-reliant, it was not supposed to be about expanding the network of dependency for women. And I have seen disabled, homeless people begging on the streets - in midtown NYC and downtown San Fran - two of the most liberal areas of the country.
Gary Junstrom January 01, 2013 at 07:07 PM
You shouldn't be so smug WHere's Sams Samstie, you are leaving out some important facts. The reason Obama doesn't want voter ID is because he can't cheat. He lost every state that had voter ID. The only reason Obama won was because of vot fraud. Look at swing state like Fl, Ohio, Virginia and Penn. There are 174,000 registered voters in St Lucies County Fl and they got 234,000 votes. Same thing in Cayahuga Co OHio, Penn, and a number of other states. The Democrats got voters lists for every state that doesn't have voter ID. Later in the day they would check who hadn't voted and send someone to the polls. That's why the lines were so long so late in places like Virginia and Ohio. Eric holder, for obvious reasons, refuses to address votr fraud. As for Fox News it has higher ratings than all the other liberal cable news combined. The reason is - people are fed up with the corrupt, inept mainstream news acting like an arm of the Democrat party. So I know you are feeling good because Obama stole this one, but it will catch up to him. His Obamacare taxes are starting to hit, unemployment is at 14%, and the Democrats are even looking to tax people on how many miles they drive. They won't be able to steal enough votes to counter that wrath.
johnathan January 01, 2013 at 08:50 PM
Eleanor - you seem to have missed the point. Point being, if a woman is single and pregnant and does not have a family to rely upon, she needs a little help - not for eternity but a little help for a while and that help can come from the government. I want my taxes to help her and her child. (I mean if she can't get a reality show - like your little friend Bristol who purchased an extemely expensive house and I don't think she got that working for $10 an hour in a doctor's office. ) And I have traveled extensively all over the world and you cannot compare the few and far between beggars in NYcity and anywhere in the US with what I am referring to in Africa and India - places like that where there is an entire population living in the streets or mud huts with no electricity. You don't know anything, Eleanor but you are incredibly judgemental and mean spriited and your phony concern about manners is laughable. It is bad manners to judge others - you know - the whole throwing the stones if you live in a glass house thing. You do not speak for women of this era. You speak for women from another time warp.
clamdigger January 01, 2013 at 09:17 PM
This is why I believe it’s time to move to a flat tax rate along with creating a national sales tax. As I wrote the other day, if a $0.05 cent (one nickel) national sale tax on all sales $10.00 and over would begin funneling money into the treasury very quickly. So if you bought a pair of sneakers or a house, only 5 cents would be added to the final bill. It’s time for everyone to start paying into the system. Here’s a quick example; Walmart makes $36M p/hr or $864M per day. They have 100M customers per week or 14,285,714 per day. That averages out to $60.00 per customer. Now let’s say only 13M customers spend $10.00 or more, that’s $650,000 p/day or over $237M p/year. http://www.statisticbrain.com/wal-mart-company-statistics/ This is only one company in the entire country,just think of all the other retail chains,nail salons,lumber yards,mechanics,grocery stores,resturants,WaWa’s,Lowes and so on out there. Every transaction on Wall St can be included also. Any sale of any goods or services. One person would have to make 20 $10.00 purchases to contribute $1.00 in a week. The one nickel is just a bench mark to start with, if a dime, quarter or something in between works better then so be it, but this isn’t just a tax the rich situation. The majority of the country seems to want to be socialistic,so be it,everyone pays.
Joe January 02, 2013 at 12:35 AM
In observing this thread, I can't help but notice the sarcasm and vitriol of the pro Obama people. That is usually done to hide insecurities and lack of faith in a position. The sad part is - even if Obama took all the money of all the hated rich, he could only run the government for about 8 days. Obama cannot keep up this level of spending, tax hikes or not without the country eventually collapsing. He may get lotsa votes from welfare people, but if they are not contributing, they are just draining a finite pool of money. A parasite that kills its host does not have a bright evolutionary future. So the left-wingers who are doing high fives on this site remember, when this ship sinks, you go down with it.
clamdigger January 02, 2013 at 12:47 AM
everyone needs to contribute...case closed. the main priority which seems to established itself is people want socialism. People are mad at the fact there are others making more money than they are. People want to dip into the pockets of those who have wealth, even if it's just little more than they have. Everyone wants a new car, bigger house and all the little perks that go with it and when they can't get it it's because the rich don't want them to have it. gaining wealth takes work, years of hard work and sacrifice for the majority of people. Yes there are those born into wealth and there are those who inherit wealth, but those who want more out of the rich are those who will not go the extra mile to get ahead or make the necessary sacrifices such as time w/ family or long hours and hard work. For all those who want socialized medicine,social programs, it's time to pony up and pay into a system that is able to garner money from every person not just a select group.
Eleanor January 02, 2013 at 03:36 AM
@jonathan I did not miss your point, but you did make mine, I spoke only to the issue. I did not drag in names, use derogatory terms or get personal. Yes, there are people who need help, but the best help you can give them is getting them back on their feet and then educating them as to how they might be able to avoid the situations in the future. The problem with dependency programs is that the funding, once instituted, never goes away. As I said earlier, it is a shame that tax cuts are always temporary but tax hikes never are. As for my point about the rudeness of the left - my reference was to make a simple point, not to expound on the extend of my travels, because that was not the issue and I doubt my lengthy itinerary would be interesting here. You, on the other hand, who do not know me have said that I "dont know anything" that I am "judgmental" and "mean spirited" and "phony" and that I "speak for women of another time warp". The fact that you could not respond without making a personal attack against me undercuts any merit that your arguments may have had. In fact, the remarks about my "shacking up" with someone during the hurricane can be said to be libelous - I really dont care, you have answered the way the left usually answered. However the person who calls himself "Samstie" may take issue with having his name and reputation written about in that way. Why is it so hard for you to just address the issue without getting personal?
johnathan January 02, 2013 at 12:49 PM
Ok Eleanor - you win Samstie did spend the storm stuffed into a porta pottie and was blown down Asbury and taken out of it and hosed down by Ready's staff - he did not shack up with you. I am sure, however, it was his loss.
christine January 02, 2013 at 03:20 PM
Elaine..I'm not into politics and arguing over it..I just have a bit of advice,while making your arguments,stick to the facts,don't pepper in "dis" and "dat" and "yo" and "St Ronnie" in your points and comments..You would sound way more intelligent and less like a 14 year old boy..IMO
Al Terego January 02, 2013 at 03:52 PM
Eleanor - Thanks for defending the honor and integrety of Sam Samstie - a true paytribute and protector of the middling class. There is no more devoted 1 placenta and part-time job creator in the puntitocracy. http://oceancity.patch.com/blog_posts/sam-samstie-city-council-candidate-profile


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