Howard Dean: Fiscal Cliff Dive Would be Good for Economy

Wednesday, 05 Dec 2012 08:16 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
While many experts fear dire consequences if the United States dives off the fiscal cliff — $607 billion of tax increases and spending cuts that will begin Jan. 1 barring government action — former Vermont Gov. Howard Dean thinks it would be a good thing.

"No matter what people said during the election, you cannot solve this deficit problem without everybody paying more taxes, not just rich people,” he told CNBC. Both Democrats and Republicans are trying to spare the middle class from tax hikes.

While the automatic fiscal austerity would do some damage, "the economy is much stronger than it was three years ago,” the 2004 Democratic presidential candidate said.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

The Organization for Economic Co-operation and Development says that failure to avoid the fiscal cliff “could tip an already weak economy into recession.”

Meanwhile, the business sector will benefit, Dean says. "Certainty is critical for the business community. Wall Street, who's moaning and groaning about this, is going to do much better."

But most experts think solving the budget crisis creates better certainty.

“What people are concerned about is the uncertainty that the current state of the debate represents to businesses and individuals across the country,” Delaware Gov. Jack Markell said at a news conference Tuesday, Bloomberg reports. A long-term fix is needed, he says.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

'Back in Line with Reality': Value Investing Gains Favor

Sunday, 20 Apr 2014 19:26 PM

In the middle of earnings season, investors are becoming less concerned about earnings growth. Shares favored by value i . . .

Nobody Wants to Bet on a China Financial Crisis

Sunday, 20 Apr 2014 17:09 PM

But when it comes to China, the world's second-largest economy, the probability of a full-blown crisis is apparently so  . . .

Hedge Funds Cut Gold Bets in Longest Slide of 2014

Sunday, 20 Apr 2014 16:50 PM

Hedge funds lowered bullish bets on gold for a fourth week, the longest streak this year. . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved