Can The Fiscal Cliff Be Avoided?

Can the fiscal cliff be avoided?


Recently the media has been here the term of “fiscal cliff”, a term that seems like catastrophic for several economists, specially to the North American people.So what is so special about this so called “Fiscal cliff”? The truth is that the United States of America is still recovering from the 2009 financial crisis, but the rate of debt has been increasingreaching almost the size of their Gross Domestic Product. Now that there is a clear sight that the level of debt could be the same as the level of the national production, the alarms are blinking asdebt rate is reaching its limit. But what does this involve? What consequences could arouse? Is the congress going to do something with respect to the issue? The key idea is to find a solution in orderto avoid a complicated scenario; however it does not depend on us, it depends on politics, a topic that most of the time is controversial.

Researching about this topic I have found that there is awell established political background, which threats with the development of a possible solution. So we can say that there are two bands, the republican and the democrats. Each of them have certaininterests and apparently these differences make complicated an agreement. However, hope is an aspect that can not be disposed easily, specially if it talks about an issue that can change the life of anentire nation, and not any nation, we are talking about the United States. The Democratic senator, Mark Warner, believes that this time a settlement will be reached as there is a high probability thatthis issue could materialize by the beginning of the year 2013. By the other side, Republican lawmaker Jhon Boehner, believes that it would be a complicated issue that must be addressed with the sameimportance from both parties. Democrats want to maintain their programs, specially the ones with respect to health and at the same time increase the level of taxes paid from the rich people and big...