Is there any chance the fiscal cliff will happen? The fiscal cliff refers to year end 2012, when, if politicians do not come to an agreement on the budget, massive spending cuts and Government revenue increases will automatically kick in.
The size of the spending cuts and revenue increases are so large that they are considered draconian. Many economic experts also say that they would be so large and quick that they would cause a recession, or major recession. Since government spending is a stimulus, cuts in spending would slowdown the economy. Increases in Government revenue would mean citizens would have less money to spend, also a reason the economy would slow down significantly.
Consumers would know they will have less money available combined with less government benefits they normally receive. This would cause them to pull back on spending in a major way, which would greatly affect corporate profits, which would send the stock market spiraling. If the revenue increases remained and if the spending cuts remained, these effects would be long lasting.
Fiscal Cliff Resources:
U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.
U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.
Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.
Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.
International Trade Administration – Creates jobs and economic growth by promotingU.S. companies abroad to governments in other countries.
More Fiscal Cliff resources:
Department of Labor – Provides information on many labor issues that can be useful to companies, such as insurance, regulation, wages, wage hours, compensation, safety and health
U.S. Patent and Trademark Office –U.S. office to file patents to protect a companies new or existing proprietary products.
U.S. Trade and Development Agency – Promotes U.S. Exports to Foreign Countries, please review if your company is interested in exporting goods to foreign countries.
E-Network for CEOs – Online articles and much more for CEO’s
Public Radio Planet Money – All issues money related to the public.
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