Fiscal cliff, economy, stock market, confidence levels

The discussion among our politicians to solve the fiscal cliff issue is a stark example of why the current system of governance isn’t working. It has been known for months that we will hit the cliff and as would a 14-year old preparing to finish up all his/her assignments or homework, this has to get done at the 11th hour or may even go unresolved by the deadline. The Mayan prediction of end of the world will not happen unfortunately (see the excellent FAQ about the event on the NASA site). There are a lot of things going on behind the scenes to the debates – the pressure from the lobbyists, those contributing to the campaign funds, votes for the next elections, jobs for one’s constituency and many more. But all these are the wrong reasons. If we do go over the cliff and start getting downgrades from rating agencies which in turn will make borrowing difficult which in turn will mean less impetus to the economy when we most need it, there won’t be much to defend for these lobbyists or contributors or anyone else. I do know the American politicians are way more smarter than their counterparts across the world (let’s say we are comparing Greece and the PIGS nations) and are more accountable for their representation than anywhere else. So at some point, they will have to face the uproar from the public as opposed to a heated debate that is now going on and take drastic measures. For one, raising taxes on the very rich is not a bad idea. After all we are talking about a 3% increase in taxes that they can very well take and this isn’t anything new. We go back to the Clinton era of tax rates. The Republicans have to give into this and if they do, they will gain a lot of time in putting pressure on the Democrats to come up with a compromise from their end. By the way, what happened to Congressman Ryan after his disastrous run for the White House? He should still be leading upfront in the media educating people of how to come up with a compromise than like everyone else is doing – that is stating their position. This applies to all the politicians – they should be discussing how to come up with a compromise than merely stating their view points. For God’s sake, put the interest of the country ahead of everything else. Do we need to hold these highly intelligent, educated people by their ears and drag them to the table to come up with a compromise? I wish we had a system where the public voice could be heard on this via a electronic voting system. See how such a system would have come in handy?

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