Fiscal Cliff Talks Appear to Be Stalled
Despite an intensifying pace, little progress is being reported in talks on averting automatic spending cuts and tax increases that economists fear could send the U.S. economy off a "fiscal cliff."
spending cuts
Fed to Launch New Bond Buying Program to Ease Fiscal Cliff Fears
With a nervous eye on the "fiscal cliff," the Federal Reserve is expected this week to announce a new bond-buying plan intended to further reduce long-term interest rates and encourage borrowing. If it succeeds, it might soften the blow from tax increases and spending cuts that will kick in in January if Congress can't reach a budget deal.
Aerospace Industry Increasingly Fearful of Fiscal Cliff Cuts
When the Aerospace Industries Association held its big annual gathering this week, the talk wasn't about America's superior aircraft and spacecraft. The subjects that dominated the event were the fiscal cliff, sequestration, and the potential damage that automatic spending cuts could do.
How Far Over the Fiscal Cliff Could Washington Go?
The dealmakers who warn that a year-end plunge off the "fiscal cliff" would be disastrous don't seem to be rushing to stop it. Why aren't they panicking? Because those master procrastinators know that Washington deadlines are rarely firm, and they know precisely how they can finagle more time.
Fiscal Cliff Pop Quiz: Fun Facts from the Economic Apocalypse
On Jan. 1, 2013, the United States will fall over off the fiscal cliff -- unless Congress and the president ink a deal to avert the crisis. If you think you know all about the forthcoming economic apocalypse -- or if you're just wondering what all the fuss is about -- check out our quiz and see.
How Paul Ryan's Budget Plan Would Affect the Average Family
Republicans in Congress already love Paul Ryan's budget proposals, and now that he's on the presidential ticket, we can expect his fiscal ideas to hold even more sway in a Romney administration. So how would his proposals affect the average U.S. family? Would you be better off in a Romney-Ryan America?
Deep Spending Cuts Pose a New Threat to US Economy
Just as the U.S. economy is making progress despite Europe's turmoil, here come two new threats. A congressional panel is supposed to agree by Thanksgiving on a deficit-reduction package of at least $1.2 trillion. If it fails, federal spending would automatically be cut by that amount starting in 2013.
Social Security: Why Seniors Are Just Plain Angry
Described as a "fear tactic" by critics, the White House warned Tuesday that if Congress fails to raise the debt ceiling soon, come August, millions of Social Security recipients may find themselves without a check. The comments were met with a firestorm of criticism by seniors and their advocates.
Social Security Isn't Broke, But We Still Should Fix It
It's true that Social Security paid out more than it collected in 2010. But the Trust Fund owns $2.6 trillion in Treasury bonds, and though some people may claim those holdings are an illusion, they aren't. Still, there are some fairly painless steps we could take to shore up the program's balance sheet for the long term.
Who Wins and Who Loses If the Government Shuts Down
Unless lawmakers can agree on budget legislation to keep the federal government running, a shutdown at midnight Friday looms. If it happens, there will be a few clear winners, some who break even and a whole lot of losers.
Consumer Sentiment Index Jumps to Three-Year High
The markets may have had a rough weak as U.S. GDP growth was revised down and Middle East unrest caused oil prices to rise, but the consumer sentiment index rose to its highest level since January 2008. Sentiment has risen for about six months -- an encouraging sign -- but oil prices could sour the mood.
Obama's Cuts: Less Than Meets the Eye, Thankfully
A parade of Republicans immediately lined up to attack the president's proposed budget this week, claiming the plan falls short of making a real difference. They're right. And that's good, because really deep reductions are the last thing the economy needs right now.
Obama's 2012 Budget: Why Federal Spending Needs to Be Raised, Not Cut
President Obama's proposed spending plan seeks to slash $1.1 trillion from the deficit over the next decade. Republican House Speaker John Boehner says that's too little. In this case, both Obama and Boehner are wrong. The nation doesn't need to spend less. It needs to spend more -- a lot more.
What's Really Ailing Employment: Lack of Demand
Many people blame America's high unemployment rate on a mismatch between workers' skills and the fields with open jobs. But jobs are scarce across all sectors. That means effective policies are needed to stimulate demand and rebuild economic output.