So what is the “Fiscal Cliff“?  In short, it’s a term used to describe the Bush Tax Cuts expiration at the end of the year 2012 thus plunging us into a terrible recession because a) the payroll tax cut will go away, b) the tax cut for some businesses will go away, and c) the debt ceiling would rise.  Equivocal indications remain erroneous mainly due to the fact that debt cannot decrease if taxes don’t increase, the largest complaint at the creation of the cuts in 2003 mainly forgotten about in the hyperbole of why those cuts needed to happen in the first place.  Financial responsibility, applicable not only to private citizens but also the government, is preserved when debtors remit regardless of how staggering the debt might be.  In this case, financial pundits exclaim that this would lead to another immense recession if permitted to fall over the “Fiscal Cliff” and recovery would not be smooth nor simple.  So allow me a moment to end the nonsense and get right to the authenticity of claims that great financial woe latterly of the precipice of the cessation of these tax cuts.

Example:  I arrive at the supermarket with three coupons for cat food.  It would be incongruous to use all three coupons on the same bag of cat food, thus saving me $3.50 on one bag, because primarily you cannot redeem multiple coupons on the same product unless purchasing more than one of that product.  This is what is happening with the expiration of Bush Era tax cuts expiring at the end of this year.  Another example, if you will:  I have an electric bill of $91.50.  I cannot afford that, so I borrow from the rent column the amount I need to achieve satisfaction of the debt.  Then, while I’m paying the electric bill of $91.50, I fail to pay the entire rent debt and within several weeks, I am being evicted for failure to remit rent I agreed to in a legally binding document, the lease.  Final example:  In order for me to profit comfortably when I open my widget factory, I decide that since I can pay my employees two rolls of toilet paper and a couple of peanuts in China, I will move my factory there and let the cash flow of selling cheap goods for ridiculously low prices.  Meanwhile, back in America, my colleagues do the exact same thing.  All of the employees I could have hired in America are now without work and sufficient funds to remit the bills entering via the mail.  Frustrated with the idea that China got their jobs and to accurately protect themselves from financial ruin, most of those unemployed who have no more benefits if unemployment compensation have taken on a McJob at McDonalds or have begun working at WalMart as a cashier making around $8.50 an hour.  Thus, working two jobs without time or money to spare, the economy at large suffers in America for misplacing the widget company in China.  The Chinese spend money on local items because they aren’t working two jobs and need to sleep sometime lest they become zombies.  So, armed with this information, it would make sense that a) if one is worried about recession, make a tax cut available to companies in need of employees that keep businesses in America, b) responsibility for paying debts should fall squarely and fairly across tax brackets in order to field that revenue, and c: take steps to make it impossible to borrow money from funds that are already spent to avoid an eviction of sorts.

The term “Fiscal Cliff” is charged with deception to the point that a rather large media firestorm about it seems to have introduced it into our homes by way of sensationalism.  Irresponsible reporting by journalists is annoying because the term does spark mistrust and distrust in the financial market.  It doesn’t accurately depict the true nature of debt relief, which is to be responsible and pay one’s bills, while cycling over the fact that tax revenue is revenue enough to remit proper amounts to our debtors.  The cyclical revenue generation is based primarily on availability of employment, fiscal responsibility, and ability to pay.  Create tax cuts for companies to move back to the US from China and other countries substantial enough to provide disposable income that permits the companies’ ability to hire more employees.  Tax the people who can afford the tax amount, after businesses return, and let the 1% pay their share.  Decrease the salaries of Congress and the House of Representatives to remain modest enough to understand the plight every American citizen bears on payday.  You can’t pay down a deficit without income lest you’re robbing the landlord and feeding the electric company.

Before you buy into the “Fiscal Cliff” hype, understand that most of it is explained by people making more money than you or I will see in our lifetimes.  Also remember that they only way communication is achieved by some sectors of the population of America are to incite fear because that is how they get what they want.  They know who they are and often they prey upon the gullibility of the general population in a manner that is disgraceful, indignant and malignant.  A sad commentary on fear, on failure to remain responsible for your own debt, and another ploy by the elite on the population that can’t afford to become elite.  There is no reason to panic and there is slight cause to worry about a recession, but not enough to not plunge over the falls in a barrel of knowledge.

 

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