OK, did you leap last night? Aren’t you glad that the President and Congress bargained last night to increase your payroll taxes in order to take away 2% of your income for all of 2013? I guess that at least our “progressive” deficit doves are now happy that with higher payroll taxes, Social Security is on “firmer” ground. Yes, right. Just you wait–more bargains are coming. Spending will be cut next.
Oh, and what did we get in return for the bargain? Some breathing space? Wrong again. We’ve reached the debt limit so the Congress gets to start all over from square one. Remember–the Cliff was created by Congress in order to move foward on the debt limit. And here we are with deja vu all over again.
Anyway, lets take a deeper look in the next few posts at the issue of the US “running out of money”.Economonitor |Great Leap Forward
Let’s Leap the Fiscal Cliff: Who’s Afraid of Deficits, Anyhow?
L. Randall Wray | Professor of Economics, UMKC
