The Fiscal Cliff Analytical Essay by Carly Evans

A look at what is meant by the term 'fiscal cliff' and what the fiscal cliff means for the US economy.
# 152266 | 1,072 words | 8 sources | APA | 2013 | IL
Published by on Jan 20, 2013 in Economics (Macro) , Economics (Taxation) , Economics (National)


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Description:

This paper defines and looks at the significant events of the fiscal cliff, as well as provides background information on the US deficit. The paper further highlights how the fiscal cliff crisis was avoided and looks at what might be the impact of the cliff in the future.

Outline:
Introduction
What is the Fiscal Cliff?
Background to the Deficit
What is the Potential Impact of the Cliff?
Resolution
The Future

From the Paper:

"The American people are waiting for the ball to drop...but it's not going to be a good drop." Senator Harry Reid (2012) (1)
"The term the Fiscal Cliff was coined in early 2011 by Ben Bernanke, chairman of the US Federal Reserve. It is used to describe the planned reductions to the US economic deficit in 2013. Although made of a series of complex and lengthy legislative policies the basic premise is simple; reduce spending and raise taxes.
"This form of tough economic decision is unpopular during periods of growth and prosperity; made even more so during a time of high unemployment and falling opportunities. Tom Geoghegan (2012) (2) stated that likeness to the cliff analogy is truly accurate; the nation would economically collapse without a rescue package to prevent hard hitting hikes. So how did this situation arise and reach boiling point?
"The United States is one of only two countries in the world (Denmark being the other) that has the borrowing restriction known as the Debt Ceiling. This was put in place to prevent excess borrowing and eliminate the misuse of borrowed excess funds."

Sample of Sources Used:

  • Geoghegan, Tom (November 14, 2012). "Who, What, Why: Who first called it a 'fiscal cliff'?". BBC News. http://www.bbc.co.uk/news/
  • Schoen, John W, 27/12/2012 NBC News Consumers, Businesses Brace for 'Fiscal Cliff' Impact
  • Kenny, Thomas, About.com, December 2012 what is the Fiscal Cliff?
  • Weisman Jonathan, The New York Times, Thursday, 27 Dec 2012, `In Flurry of Activity, Only Muted Hope for Fiscal Deal'
  • Kenny, Thomas, About.com, December 2013 The Fiscal Cliff, Bonds Guide

Cite this Analytical Essay:

APA Format

The Fiscal Cliff (2013, January 20) Retrieved September 23, 2019, from https://www.academon.com/analytical-essay/the-fiscal-cliff-152266/

MLA Format

"The Fiscal Cliff" 20 January 2013. Web. 23 September. 2019. <https://www.academon.com/analytical-essay/the-fiscal-cliff-152266/>

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