Intransigency and political wrangling could send U.S. economy over ‘fiscal cliff’

December 29, 2012 – WASHINGTON - President Obama used his weekly address on Saturday to put pressure on the Senate’s leaders as they work to craft a deal that would avoid the so-called fiscal cliff. Obama said he believed “we may be able to reach an agreement” to avoid a series of tax increases and spending cuts set to take effect in the New Year. But he warned that if Senate leaders failed, he would push for a vote on his stripped-down proposal to block the tax hikes on the middle class. “I believe such a proposal could pass both houses with bipartisan majorities – as long as these leaders allow it to come to a vote,” Obama said in his taped remarks. “If they still want to vote no and let this tax hike hit the middle class, that’s their prerogative – but they should let everyone vote. That’s the way this is supposed to work.” The move was meant to increase the political heat on Republicans, who opposed Obama’s plan to allow taxes to rise on top earners. If no deal is reached, Republicans could find themselves in the position of blocking the legislation that would prevent the tax hike for most taxpayers. Obama delivered the same message Friday night, after a meeting with congressional leaders at which Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.) agreed to work together to try to reach a last-minute compromise to avoid the fiscal cliff. Republicans sought Saturday to shift pressure back onto the president. “There’s not much time, but there’s still time to act,” said Sen. Roy Blunt (R-Mo.), in the GOP address. “The president will never have more political capital than he does right now, and the next few days will begin to define his second term. He was elected to lead.” Whatever Reid and McConnell produce, it won’t be the large deficit-reduction deal the president originally sought. Obama again touted his effort to craft a “balanced plan” and suggested he was ready to mount another campaign against Congress if the deal fails. –LA Times
Intransigency and political wrangling could send U.S. economy over ‘fiscal cliff’

America is entering a new economic normal, a reality where almost everything that should be going up is going down, and everything that should be going down is going up.
The United States begins 2013 in uncharted economic waters; America has never been here before. Consider, for example, these seven “firsts” for the U.S. economy:

1. All-time record annual average gas price: In 2012, the average cost of a gallon of gas eclipsed the previous record by nine cents, bringing the annual average to $3.60 (other areas $4 - $5 and milk over $5 a gallon.

2. All-time record food stamp participation: As of last month, for the first time in American history, 47,710,324 individuals -- roughly one out of every seven people living in the United States -- now receive food stamps.

3. All-time high youth unemployment: In the last four years, average youth unemployment eclipsed the previous record rising to 17.5% -- the highest ever in recorded U.S. history.

4. All-time high number of Americans no longer in the labor force: Never before in U.S. history have so many been sidelined from the workforce. Today, a record 88,921,000 Americans are no longer a part of the U.S. labor force.

5. All-time record number of Americans collecting disability: Medical advancements and technological innovations have increased life expectancy and made workplaces safer. Still, the number of Americans collecting Social Security Disability Insurance (SSDI) has skyrocketed in the last four years. Today, a record 8,827,795 individuals collect a disability check averaging $1,130.34 a month.

6. All-time record number of Americans living in poverty: According to the U.S. Census Bureau, a record 46.2 million people in America are living in poverty, the highest number in the 53 years that the Census Bureau has collected the figure.

7. All-time record U.S. debt: The last four years have exploded the U.S. debt to levels never seen before in American history. Presently, the United States is $16,400,000,000,000 in debt.