America
has been saved; again! Ever since the subprime mortgage crisis in 2008 which
was dubbed as the Great Recession, United States of America, this economic
juggernaut is incapable of finding a stable spot in global economic landscape.
After the calamity, the States was bombarded with high inflation figure,
terrifying unemployment percentage and worst of all, high national debt. To be
exact, that’s merely a preview from the economical aspect. Do not even get me
started on social affairs pertaining to guns and more guns………
Precisely after midnight of January
1st , an automatic mechanism amounting to US$ 600 billion in the
form of tax increase and spending cuts was supposed to initiate. The reason
behind this automatic mechanism was the governmental debt of America was
reaching the maximum ceiling limit. Unless the policymakers from both sides of
the political divide reach a consensus on an alternative plan by the specified
time-frame, things are going to turn sour for many American, particularly the
working class. This is what the President of the Federal Reserve, Ben S. Bernanke
coined as the “FISCAL CLIFF”.
Actually, to be honest, many were
sceptic on this last minute deal of Congress. Obama’s Democratic Party and the
Grand Old Party ( Republican) were championing their very own plan from the
start. For the uninitiated, Democrats are seen as more liberal in compared to
their political nemesis, the Republican who are deemed conservative. Yet, in
certain circumstances, the reps in GOP proudly declare themselves as liberals
striving for the betterment of people of America’s soil. But, anyhow, let’s not
go into detail.
According to the plan devised by the
Democrats, there will be tax increase on the any individual residing in
America, earning a total annual income of US$ 200,000. Ostensibly, this was
publicly opposed by its rival. The Republican, instead, planned severe spending
cuts namely in domestic expenditure. So, with these two major political
establishment bickering over who’s idea is the best, the average Americans like
Jack and Tom are suffering and waiting in jittery for the final outcome.
This Fiscal Cliff attained
international attention in no time. Believe in or not, share markets in Asia
even showed less energetic improvements, a day before the much anticipated 1st
of January 2013. Financial analyst and top-notch economist vigorously commented
and voiced concern on the future of USA. Many had no doubt that if lawmakers of
Democratic and Republican Party fail to clinch a working deal by the dead-line,
America’s economy will plunge into economic turmoil and further affect other
economies throughout globe as well. That is the kind of impact America has on
global economy!
However, praise to the Almighty,
while many of us are enjoying New Year’s arrival with joy and bliss, these
bigwigs managed to sign a deal that incorporates insinuation from both sides. A
more amicable solution, I would say. President Barack H. Obama issued an
official press statement that the fiscal cliff threat is averted. No more danger
lingers. It was reported that the Republicans, who dominates the House of
Representatives’ agreed to a plan by Senate in approving tax increase for
individuals earning more than US$400,000 per annum and US$ 450,000 for couples.
Together with this, spending cuts will also follow suit like what the
Republicans have brought forward. Like what Mr. President said, only the 2% of
the American wealthiest colony will be affected and through this initiative, it
is estimated to collect US$ 620 billion in 10 years. This last-minute deal
managed to save everything and everyone.
In a nutshell, nationals and
lawmakers should always bear in mind that while fiscal cliff is successfully
averted, more problems may hinder the economic growth of this powerhouse in
future. Thus, great leadership plus good policing advices are needed to spearhead
United States of America’s future.
