Posted by BH
FREE ZONE MEDIA CENTER WFZR FZTV
Wednesday, August 23, 2012
CBO Report Warns Of "Significant Recession" WELLCOME DR. BILL SMITH ARRA NEWS SERVICE
|DR. SMITH (NEW FZMC WRITER)|
|Democrat Thelma and Louise Economics|
The Washington Post reports today, "The nation would be plunged into a significant recession during the first half of next year if Congress fails to avert nearly $500 billion in tax hikes and spending cuts set to hit in January, congressional budget analysts said Wednesday. The massive round of New Year’s belt-tightening — known as the fiscal cliff or Taxmageddon — would disrupt recent economic progress, push the unemployment rate back up to 9.1 percent by the end of 2013 and produce economic conditions 'that will probably be considered a recession,’ the nonpartisan Congressional Budget Office said."
The Hill adds, "In its most dire warning yet about the fiscal cliff, the CBO said the economy would contract by 0.5 percent in calendar year 2013 if the George W. Bush-era tax rates expireand automatic spending cuts are implemented. Unemployment also would rise from 8.2 percent in 2012 to 9.1 percent next year, the office estimates. . . . CBO says the fiscal cliff will be worse than it had previously projected and that the ‘underlying strength’ of the economy is weaker.
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