The BBC Global run a news article (http://www.bbc.co.uk/news/magazine-20318326) written by Tom Geoghegan of BBC Washington, about the said phrase that bombarded the most powerful, center-stage of world economy, the United States of America.
The phrase "fiscal cliff" is now part of the American lexicon, according to BBC, describing the looming deadline when tax cuts expire and spending cuts kick in. Right after the victory rally of President Barack Obama, the media already started discussing the next issues atop the tray of the elected leader. This so called "fiscal cliff" is the automatic tax increase and spending cuts that would take effect on January 1 that as economists say, would bring US to recession.
It is estimated by the Congressional Budget Office that the economy would contract by 0.5% and unemployment would rise to 9.1%, cold-hard facts. The White House together with the Congress are preparing to take measures to avoid this "fiscal cliff". The president himself said that part of the solution would be to increase the taxes in high earners.
"Fiscal Precipice" came before this phrase which has also been featured in the Chicago Tribune in 1893. Ben Zimmer quoted, "The free silver shriekers are striving to tumble the United States over the same fiscal precipice." This is a metaphor used by Ben Bernanke, chairman of the Federal Reserve, who used it in a speech concerning this topic about the cuts that will take effect on January 1, 2013.
This metaphor is a visual image of the US falling in a cliff due to country's budget deficits. Taxes will go up that would eventually lead the disposable personal income of the consumer's to lessen. That might lead to a recession in the middle of the year. The language therefore has an impact that the community might break into a panicked deal than a right deal.
Republicans don't want this to happen. That political thinking, plus the debt ceiling crisis last 2011, are two reasons why there is such a confused view of the fiscal cliff. But others believe that it is not a cliff. And if it's not a cliff then what is it?
Whatever that may be, whatever this is all about, the major question posts, what consequences will this phenomenon bring? The whole world is watching.
The phrase "fiscal cliff" is now part of the American lexicon, according to BBC, describing the looming deadline when tax cuts expire and spending cuts kick in. Right after the victory rally of President Barack Obama, the media already started discussing the next issues atop the tray of the elected leader. This so called "fiscal cliff" is the automatic tax increase and spending cuts that would take effect on January 1 that as economists say, would bring US to recession.
It is estimated by the Congressional Budget Office that the economy would contract by 0.5% and unemployment would rise to 9.1%, cold-hard facts. The White House together with the Congress are preparing to take measures to avoid this "fiscal cliff". The president himself said that part of the solution would be to increase the taxes in high earners.
"Fiscal Precipice" came before this phrase which has also been featured in the Chicago Tribune in 1893. Ben Zimmer quoted, "The free silver shriekers are striving to tumble the United States over the same fiscal precipice." This is a metaphor used by Ben Bernanke, chairman of the Federal Reserve, who used it in a speech concerning this topic about the cuts that will take effect on January 1, 2013.
This metaphor is a visual image of the US falling in a cliff due to country's budget deficits. Taxes will go up that would eventually lead the disposable personal income of the consumer's to lessen. That might lead to a recession in the middle of the year. The language therefore has an impact that the community might break into a panicked deal than a right deal.
Republicans don't want this to happen. That political thinking, plus the debt ceiling crisis last 2011, are two reasons why there is such a confused view of the fiscal cliff. But others believe that it is not a cliff. And if it's not a cliff then what is it?
Whatever that may be, whatever this is all about, the major question posts, what consequences will this phenomenon bring? The whole world is watching.
PERSONAL VIEW POINT
What does this “Fiscal Cliff” have to do with me? Who cares if USA will experience recession? Of course, everyone does. Why? Main reason is that the United States of America is the biggest basin in the economic world. Even the poorest or most secluded countries have American ties in terms of money matters. One cannot deny the fact that whatever happens to US economy the whole world would be affected.
However, here in the Philippines, we are going to feel the impact with a bang. Our country already developed a bond or string attached to America. If that string snaps, then Philippines would surely fall the hard way. Since the time when the Americans became our liberators from the bondage of Spanish slavery, the government has been very dependent to them. Up until now, in most of the things that concerns the government, there is American intervention.
Most likely, if America will experience recession and the White House would not be able to point out a remedy for it immediately, then Philippines might experience a worse scenario. I cannot imagine that if the fluctuations in US economy would continue to flunk, what would happen to us? USA already allotted a big investment in the country. In terms of financial aid, they are the biggest contributors. So, what will become of us when they themselves are caught in a crisis?
No one knows. But as far as I am concern, it doesn’t pose a good one. >_<
Additional Information:
http://www.youtube.com/watch?v=eiaYmhQsBHc
Candyd N. Vivas
Additional Information:
Candyd N. Vivas
You have nice opinions. It would have been nicer if you incorporated the impact of the states issue on you.
ReplyDeleteYou merely give descriptions about the said topic.
GRADE: 84%
thank you sir.
ReplyDelete