Economy hurt - and we're not over the cliff yet
December 31st, 2012
12:15 PM ET
1 year ago

Economy hurt - and we're not over the cliff yet

New York (CNNMoney) - The fiscal cliff hasn't been reached yet, but it has already affected the nation's economy.

Economists say some key aspects of the economy - particularly those affecting consumer and business spending - have been weakened by worries about the fiscal cliff negotiations. But they say the damage is relatively small so far, well short of the new recession that so many feared. Improvements in home and auto sales, as well as job creation, have tempered the decline up to now.

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Filed under: Economy • Fiscal Cliff
soundoff (10 Responses)
  1. rs

    But this is what the GOP wants people- they wish to further hurt the economy and deny this President an opportunity to fix the colossal disaster they left in 2008. They don't care about America, or Americans, they only care about the rich- who will do just fine if the economy tanks again.

    December 31, 2012 12:23 pm at 12:23 pm |
  2. wjmccartan

    Not true, those with only enough to see them through the next week would have spent less through the holidays thinking that they would have even less and that affects lots of small business's that rely on the christmas season sales to help them ride through the difficult months of January and February, when tradition slow downs occur. As for those with even less, this game being played by the republicans has caused them more stress then they need at this time of the year. Literally putting some of them over the edge. Such a large segment of society gets dismissed when articiles of this sort are written without the human factor. Just because you tell people there is nothing wrong doesn't make it true. All the best to those who struggle to make ends meet and put food on the table, I hope 2013 is a good year for you, health and happiness.

    December 31, 2012 12:29 pm at 12:29 pm |
  3. myviewis

    I think it's time we all accept the fact that Democrats don't care if paychecks become smaller in 2013 due to a rise in payroll taxes and income taxes. Democrats might be correct that we need to go over the cliff, get rid of the Bush-era Tax Cuts and let people pay higher taxes out of their paychecks, perhaps this is the way to get the country back up and running. I

    'm starting to think that Republicans are wrong in not wanting to nail small businesses with higher taxes, what's the worst that can happen to a small business paying higher taxes?????????? that people get fired????????

    December 31, 2012 12:33 pm at 12:33 pm |
  4. Name lynn

    whos blameing who for the jobs what is the problem we work an yet we are paying taxes an theres job training out there for people willing to work and be train for a job the money maynot be what you it to be its a job

    December 31, 2012 12:34 pm at 12:34 pm |
  5. myviewis

    Name lynn

    whos blameing who for the jobs what is the problem we work an yet we are paying taxes an theres job training out there for people willing to work and be train for a job the money maynot be what you it to be its a job
    ---------------------------------------

    The more I listen to Democrats the more I agree with you that it is Republicans that are standing in the unemployment line and who need to be trained for a job even if that job pays less than the desired pay.

    Democrats are college graduates and have the better jobs and are not standing in the unemployment line because Democrats have been trained for good paying jobs. I agree Republicans need to get off the unemployment line and accept whatever job comes their way. I agree with you.

    December 31, 2012 12:46 pm at 12:46 pm |
  6. plain&simple

    Imagine what good could be done if we actually were in agreement as to our policy....watered down version has shown constant slow growth. Just a little more support and consistency in a moderate governing and ?????? Would be nice to at least see.

    December 31, 2012 12:59 pm at 12:59 pm |
  7. Rudy NYC

    myviewis wrote:

    I think it's time we all accept the fact that Democrats don't care if paychecks become smaller in 2013 due to a rise in payroll taxes and income taxes. .....
    --------------------–
    Textbook right wing denial of the facts of the debt ceiling debacle: that it was House Republicans in the House who refused to make the middle class tax cuts permanent: that it was House Republicans that rejected the compromise worked out between the White House and congressional leaders; that is was House Republicans who concocted and passed the sequestration bill instead of the compromise; that it was House Republicans who passed a bill in August to avert the cliff that added more to the deficit than sequestration; that is was House Republicans that rejected Boehner's Plan B...... .... need I contnue? I am not trying to assign blame, but I'm just stating the facts when people try to deny their existence.

    December 31, 2012 01:08 pm at 1:08 pm |
  8. rs

    Myviewis-
    Look- admit the GOP only works for the richest Americans, and I *think* you'll start to see where the problem lies here.

    December 31, 2012 01:20 pm at 1:20 pm |
  9. Ray E. (Georgia)

    2010 was supposed to be the summer of recovery. Here were starting 2013 and no recovery. Maybe there will be a recovery in 2016.

    December 31, 2012 01:51 pm at 1:51 pm |
  10. Rudy NYC

    TexasKG

    Why can't people understand that we have a spending problem? If we do not reduce the spending all the tax increases in the world will not help. You cannot tax people enough to take care of all the spending our government creates. I
    --------------
    The left understands the difference between a spending problem and a revenue problem? Why can't the right wing accept that this "spending problem" was instigated by the "revenue problem" that they created back when "deficits don't matter"?

    December 31, 2012 01:52 pm at 1:52 pm |