Fiscal cliff fight is on – and economy suffers
July 16th, 2012
02:35 PM ET
6 years ago

Fiscal cliff fight is on – and economy suffers

New York (CNNMoney) - The inability of Democrats and Republicans to work out their differences on the fiscal cliff is already becoming a problem for the economy.

And that problem will grow the longer the standoff lasts.


Filed under: • Congress • Debt • Deficit
soundoff (32 Responses)
  1. tellin it like it is

    >Sen. Patty Murray on Monday warned that until Republicans agree to raise taxes on
    >high-income households, there will be no deal on the fiscal cliff.

    good. let's all hold hands and jump together then. if nothing is done then the democrats will get what they want the most, massive new tax revenue from everybody. of course, it'll tank the economy as all that money comes out of the private sector and is funnelled into wasteful governemtn spending. but hey, that is the democrat way. i just resnt that soo mnay are getting away without paying anything. when are these free loaders going to pay their far share?

    i hope america enjoys the flight down... i hear the landing can be tough though.

    July 16, 2012 02:42 pm at 2:42 pm |
  2. GonzoinHouston

    Yawn. The real deal will be cut on New Year's Eve. None of these dingbats will get serious until then. Up until the election, the GOP won't give an inch, because a deal would help the economy, and that would help Obama. After the election, depending on the outcome, both sides will line up to play the Lame Duck Game. The GOP's weakness is that they will give in on anything and everything to preserve those tax cuts for the rich, but will agree to nothing without them. Obama's weakness is that he really wants (and the economy needs) those cuts to expire.

    July 16, 2012 02:45 pm at 2:45 pm |
  3. Thomas

    Reduce congress and senate pay to nothing until both sides act like responsible adults who care about the welfare of Americans.

    July 16, 2012 02:48 pm at 2:48 pm |
  4. Dave

    I wonder if it is Obama's outsourcing?

    Once again to cover his own fail policies he is trying to make Romney look bad. I guess he has repeated it so much he believes his own propoganda. A little research found a lot of interesting articles on our Out Sourcer in Chief, Obama.

    After receiving a $500 million stimulus loan guarantee, Fisker Automotive is producing their $100,000 luxury electric sports car in Finland. (“Car Company Gets U.S. Loan, Builds Cars in Finland,” ABC News, 10/20/11)

    Nearly Half of President Obama’s $2.4 billion devoted to advanced vehicle batteries went to foreign companies in places like Russia, China, South Korea and France. (“Obama Sends Stimulus Aid to Foreign Firms,” Washington Times, 8/6/09)

    Sempra Energy was awarded a $337-million loan guarantee to supply panels for a solar power plant in Arizona. However, the company purchased its solar panels from the Chinese solar giant Suntech. (“Sempra Gets $337 Million Guarantee for Arizona Solar Project,” Bloomberg News, 9/28/11)

    Two South Korean companies – LG Chem and Dow Kokam – were given $303 million to produce car batteries in the U.S., but then brought in foreign workers. Local unions have criticized the company for filling jobs with foreign workers. (“Unions Say Foreign Workers Taking Stimulus Jobs,” CBS News, 4/13/12)

    “An April 2010 study by the Energy Department found that 60 percent of the 40 largest wind farms then financed by the stimulus relied on foreign manufacturers for their central components, including turbines.” (“Obama’s Record on Outsourcing Draws Criticism from the Left,” The Washington Post, 7/9/12)

    California-based Tezo Systems lost its bid for a ‘stimulus’-funded grant to install television monitors on California buses to a New Zealand company. (“Santa Clarita Rejects Protest, New Zealand Company Keeps Stimulus Contract,” NBC4 Los Angeles, 5/16/12)

    A federal investigation found that “at least $7 million in federal stimulus money intended to provide jobs to unemployed Oregonians instead paid wages to 254 foreign workers.” (“Federal Stimulus Money for Oregon Jobs Hired Foreign Workers,” The Oregonian, 10/20/12)

    July 16, 2012 02:51 pm at 2:51 pm |
  5. Rudy NYC

    "...And that problem will grow the longer the standoff lasts. ..."
    Isn't that the right wing plan? Has not that been the right wing modus operandi for the past 3 1/2 years? Uncertainty is good. Right?

    July 16, 2012 02:51 pm at 2:51 pm |
  6. Jules

    Whoa! Here's a shocker – fiscal cliff is coming up and the economy suffers while the GOP fiddles away the time no caring a whit for middle class Americans. The tax cut extension for the middle class could be passed today, but no, no, no, what about the rich? The job creators, the GOP says, except they have had tax cuts all these years and they haven't created jobs – not in the Bush Admin and not in this one. Time to send em back to the Clinton admin tax rates where they actually did create jobs.

    July 16, 2012 02:58 pm at 2:58 pm |
  7. Wake up people

    It truly doesn't take much to make a lying flip flopper look bad. Ole Robmeys managed to do that all on his own. I might feel a tiny bit sorry had he even once spoken up and out against the lies put forth by the baggers. But no all he could do was smirk and think those lies were getting him closer to the White House. Sorry Charlie.

    I also think every member of congress that signed that pledge should be fired and brought up on charges of high treason.

    OBAMA 2012!

    July 16, 2012 03:02 pm at 3:02 pm |
  8. Jules

    tellin it – this is not new tax revenue – it is the same tax rates as we all had when Bill Clinton was president and then George W. Bush cut the tax rates temporarily as a stimulus to the economy while he went to war in two countries. So – if we can get this country moving again the way it was under Clinton maybe we should all pony up a bit.

    July 16, 2012 03:03 pm at 3:03 pm |
  9. Sniffit

    This is a feature of the new GOP/Teatroll strategery, not a bug. Get used to it, because it is here to stay until they have finally destroyed Medicare, Medicaid, SS and basically everything about the federal gov't but the military. Unless and until a GOPer is in the WH, the GOP/Teatrolls will be in full-on temper tantrum and obstruction mode and will poison, obstruct and renege on every single bill, agreement, deal, proposal, etc., that crosses their desks.

    July 16, 2012 03:08 pm at 3:08 pm |
  10. mcskadittle

    they will say what ever they think you want to hear, because this isn't going to get done before the election

    July 16, 2012 03:08 pm at 3:08 pm |
  11. Rudy NYC

    Seeing how the second largest tax cut in history almost wrecked the global economy, I say we need another round of tax cuts like that. I don't know about you, but I love economic rollercoasters.

    Raising taxes will not wreck the economy, most especailly not after lowering them did wreck the economy. Raising taxes is how Reagan recovered from his two self inflicted recessions.

    July 16, 2012 03:10 pm at 3:10 pm |
  12. Rudy NYC

    @tellin it – The Bush Tax Cuts were supposed to be "temporary". They were also supposed to create jobs and stimualte the economy. One decade later, none of the above has occurred. It is time for Republicans to not renege on their pledge to the American people that the cuts were to be temporary.

    July 16, 2012 03:12 pm at 3:12 pm |
  13. tellin it like it is

    >GonzoinHouston - Obama's weakness is that he really wants (and the economy needs) those cuts to expire.

    our economy is over $15 trillion. the tax increases for the rich obama is fighting about amount to 70 billion a year, about how much is lost in medicare waste, fraud and abuse every year. this amount is peanuts in an economy our size. obama is just using this as his usual class warfare rhetoic to confuse the uninformed into voting for him.

    far far more in tax reductions were given to lower level tax payers which is what obama won't tell you. so if obama and the democrats like the clinto tax rates of the 90s so much let's just all go back to them, including all the people that are now paying nothing, but would pay under the 90s tax rates.

    July 16, 2012 03:12 pm at 3:12 pm |
  14. California

    Hussein Obama at the helm as the country goes over the cliff.

    Congrats democrats.

    July 16, 2012 03:17 pm at 3:17 pm |
  15. Thomas

    Romney / Cheney 2012
    To Flip Flops are better then one !

    Remember that guy who declared “deficits don't matter”? That was the old Dick Cheney.

    July 16, 2012 03:22 pm at 3:22 pm |
  16. Squigman

    That fiscal cliff you're so worried about, was brought to you by the republican party. Binky, the wonder chimp set the course for disaster, and there are many with the desire to fulfill his dim view of the modern world. If you don't like your situation, open your eyes and breathe deep. You caused it. The next time you look in the mirror, try to look past the image and witness the empty shell behind the eyes. Numbers mean't nothing to you when you voted the moron into office. Why the concern now?

    July 16, 2012 03:26 pm at 3:26 pm |
  17. Paul Ernest Show

    Sometimes I question the media role in society. It's two years now that the media has been fiddling with the truth while Americans suffer. The hostage taking of the economy, by the GOP, has hurt almost every American, except the very rich. And I am sure the media is experiencing less advertising and cutbacks, as a result of this GOP engineered economic strangulation. Why the media cannot call them out and help save Americans from this suffering, I don't know. The states and cities are constantly bearing down on the same people who are barely surviving, and on small businesses, to balance their books, while the GOP house is frustrating every effort by the president to help these cities.

    July 16, 2012 03:30 pm at 3:30 pm |
  18. Michael B.

    Let's get American's the jobs they need and a better economy!! Romney 2012!

    July 16, 2012 03:32 pm at 3:32 pm |

    Thank the republican cancer in America bafoon party for that ,and where are your tax returns romney the clown .republican bafoons party and dip going down the toilet in Nov ,thanks romney the clown !!!!!!

    July 16, 2012 03:32 pm at 3:32 pm |
  20. Rudy NYC

    tellin it like it is

    >GonzoinHouston – Obama's weakness is that he really wants (and the economy needs) those cuts to expire.

    our economy is over $15 trillion. the tax increases for the rich obama is fighting about amount to 70 billion a year, about how much is lost in medicare waste, fraud and abuse every year
    Seeing how at least 100 major corporations pay no taxes at all, that would add up to a lot more than $100 billion. As for as Medicare waste and fraud goes, The Affordable Care Act addresses those issues to some extent, but Republicans want to repeal it and replace with nothing.

    July 16, 2012 03:41 pm at 3:41 pm |

    They are going to drag our credit rating down further. Kick the republican bums out!!!

    July 16, 2012 03:41 pm at 3:41 pm |
  22. once upon a horse

    it's YOUR fault! it's YOUR fault.......that is what we get more finger pointing, blaming and not coming to any type of solutions working together. You need look NO further than some of the responses shown here where the left and the right point fingers and blame the opposite party. United we stand, Divided we fall.

    July 16, 2012 03:41 pm at 3:41 pm |
  23. Obama 2012 - MOVE Forward America, NOT another round of DUBYA's FAILURES

    @tellin it like it is – our economy is over $15 trillion
    I'm sure you meant in debt, but when are you right wingnuts going to realize that almost $13T of that was caused by administrations other than Obama's. Sure Obama added $5.6T, but your amnesiac propaganda fails to state that almost $11T of was ALREADY THERE prior to Obama assuming office, and in traditional GOBP kick_it_down_the_road mode, Obama was left to add the $3+T payment on Dubya's TWO wars.. so 11 +3 = 14. Simple math. The remainder of around $2T was mostly due to the stimulus.
    So please do tell it like it is, but at least check your FACTS before you spout. I'm not holding my breath as the GOP and it's supporters never have been very good a being up-front about anything.

    July 16, 2012 03:41 pm at 3:41 pm |
  24. California

    Hussein Obama the $5.25 Trillion debt man

    Hussein Obama ANYTHING but transparent.

    Hussein Obama outsourced jobs right here in America using ILLEGALS to do it. Great job giving away American jobs to illegals Hussein.

    July 16, 2012 03:43 pm at 3:43 pm |
  25. Hindsight 20/20

    Republican obstructionists at their finest. Remember they were willing to have the country's credit rating lowered for their political circus. Speaker of the House Boehner said he got over 90% of what they wanted in that deal. You can thank him again.

    July 16, 2012 03:43 pm at 3:43 pm |
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