The “fiscal cliff” idea stems from one simple fact: the U.S. economy is too weak to support the revenue needs of the government, leading to ever increasing deficits. At some point in this sequence the dollar will crash or the government default on its obligations. Either would be a disaster. Hence the talk of drastic increases in taxes coupled with huge cuts in spending. Given the power and influence of the interest groups concerned, such measures might in Read More …
Both presidential candidates promise the voters they will “grow” the U.S. economy. Their plans to do this are schematic at best. For the last four years, despite massive deficits and money creation, the U.S. economy has (officially) achieved something like 2% growth yearly, and even that appears in question at this time. Commentators contrast this performance with the 10% achieved yearly by China. Setting aside the problems the Chinese are saddled with, 10% growth is no record. America Read More …