Nice graphic from Cook & Cook:


click for complete infographic




click for ginormous graphic


Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

10 Responses to “Graphic Look at the Fiscal Cliff”

  1. pintelho says:

    I am a bit cross eyed after this one…but it looks to me that if we go over the fiscal cliff in a barrel Niagara style…GDP goes down by $41 bil next year….

    I don’t see that as catastrophic whatsoever.

  2. cfd says:

    It’s the same thing everywhere in the world. That is what worries me!

  3. James Cameron says:

    > I don’t see that as catastrophic whatsoever

    That $41 billion is based on a projected .5 percent reduction in GDP from 4Q 2012 to 4Q 2013. The same CBO analysis also shows unemployment rising from 8.2 to 9.1 percent, and that is the wrong direction, especially now. And it may not quite be a economic catastrophe, but it would certainly have political repercussions.

  4. techy says:

    if they do not do a deal, it will lead to deflation, good for people sitting on cash and treasuries.

    But if you happen to be the lucky chap to be laid off due to the spending cut and due to tax increases on consumers, good news you dont have to pay any taxes.

  5. VennData says:

    Obama Again Asks Congress to Keep Tax Cuts for Middle Class

    It’s a trick! it’s a trap! It’s liberalism at its worst. A con job. Repeating the failed policies of the last four years!

    If you want to apologize for the wealthy, for American, you can do it without me!

    Watch your wallet!

    Don’t fall for it. The rich must pay less!!! Listen to Fox News! They are telling you the truth, GOP voter. Obama wants your guns as soon as he taxes the rich more! Your flag? Burned. Your local church? Turned into a Planned Parenthood clinic.

    He will Islamofy you and your neighborhood schools. He will make you pay for Susan Rice’s Birth control!

  6. Iamthe50percent says:

    Looks like the biggest deficit reductions come from not extending the Bush tax cuts. But I’m sure they will. So who will they choose as a scapegoat? Social Security, or the mortgage deduction?

  7. gkm says:

    You know every so often I forget ‘exactly’ why I stopped watching any CNBC so I make the mistake and go back. Thankfully it doesn’t take long. Usually it’s just the yelling that makes me turn it off, because of course volume supersedes intelligence.

    This time it was more subtle – a discussion about double dipping on corporate taxes with dividend taxes. The foreign correspondent woman and some other trotted out chair fill were arguing that dividend taxes are double dipping. They’re not.

    Think of corporate taxes as the average tax and dividend taxes as the marginal tax. That way Mrs. Kapinski who only makes income from her KO dividend doesn’t pay the same rate as Mr. Buffett (a made up name to protect the wealthy), but taxes from the corporation are still collected; just more from those who can afford it. Otherwise, you’d set the corporate tax rate higher so you collect as much in aggregate, and Mrs. Kapinski would be taxed at Mr. Buffett’s rate which is KO’s rate.

    That, and the yelling.

  8. Conan says:

    Don’t worry about the Fiscal Cliff!!!

    Our good friends and protectors of the realm….Goldman Sachs have it all under control.

    Everything Must Be Touched in Fiscal Debate: Blankfein

    I love this statement “”“I think both sides have to be touched in this,” he said. “Entitlements have to be touched and revenue has to be touched.”

    Kind of coy, like the Goldman boys aren’t right in the thick of it getting the job done behind the scenes! I am sure we will all be touched by the time the Goldman disciples are done with us!!!

    It even get’s better:

    “You don’t want to burden the people who are least able to afford it, [but] at the same time you don’t want to disincentivize the economy and be too restrictive, and cut off growth,” the Goldman Sachs chief said.

    So nice and compassionate ….our Goldman friends will take care of us!

    BLANKFEIN: Obama’s Plan Is Very Credible And An Agreement Is Reachable

    Blankfein said, of course, it’s hard to tell if a deal will be reached but “if I were involved in a negotiation like this, and everybody was purporting to be where they are, I would say that an agreement was reachable.”

    Why Goldman Sachs, Other Wall Street Titans Are Not Being Prosecuted

    Obama Administration: Goldman Sachs from Top to Bottom

    Why Can’t Obama Bring Wall Street to Justice?

  9. victor says:

    Reducing the deficit requires tax hikes and spending cuts right Greece? Someone in Barron’s mail proposed a $10 tax every time the words “fiscal cliff” are uttered/written. The Federal deficit would disappear.

  10. CSF says:

    It looks like a typo in the last option on the chart. Extending the Bush Tax cuts and current spending trends will not increase GDP by 230 Bil and decrease the deficit by 91 Bil. Perhaps they meant this would increase GDP by 91 Bil and increasing the deficit by 230 Bil?