Robert Reich: Understanding the Fiscal Cliff (in 2m 30s)

Madonna Gauding Madonna Gauding (249 Posts)

Madonna Gauding is a freelance writer, illustrator and book designer living in St. Louis. MO. She is the author of 10 books on a variety of "mind, body, spirit" topics.


  • http://www.facebook.com/profile.php?id=1004797897 David Lewis

    Obama already lost this negotiation in the last two years when he extended the tax cuts and allowed the Tea Wing to blackmail him into the “fiscal cliff”, knowing everybody would forget later that is really their outrageous debt-limit suicide-extortion in disguise.

    On Jan 1 taxes will go up on everybody, including the rich, who could care less about this modest increase, and the middle class who will be screaming when they see their first paycheck. And, domestic programs will be cut 8% which will have programs for the middle and lower class all over the country lose jobs, grants, support (I was talking to some of them last night). Yeah, the fat ‘n happy military will lose big $ too, but they can also afford it, except again for the contractors who will be hurting and, again, throwing a lot of middle class people out of work. And what’s to stop the House Repubs from the same debt-limit blackmail again in a few weeks –it’s two years to the next election and they are all in safe, gerrymandered districts.

    Nope, if the “cliff” hits, Obama will suddenly find his position very weak. It’s great that he appears to be holding strong now, but he will wilt on December 28 — he almost has to, and Boehner knows it.

  • http://www.occasionalplanet.org MG1

    Hi David,

    Thanks, as always for your response. First, Geithner has the ability, if we go “over the cliff” to postpone middle class tax increases. See: http://thehill.com/blogs/on-the-money/domestic-taxes/271791-white-house-could-protect-middle-class-from-tax-hikes

    Second, people like Krugman, Reich, Yves Smith of Naked Capitalism, Gaius Publlus of Americablog, all see Obama in a stronger position, not a weaker position, if we go past December 31. I agree with them. The problem is that Obama wants entitlement cuts and a very small tax increase on the wealthy. So, he prefers making a deal before the end of the year. See Bruce Bartlett and Yves Smith on the over-hyping of the fiscal cliff. http://billmoyers.com/segment/bruce-bartlett-and-yves-smith-on-overhyping-the-fiscal-cliff/