Why all the terror about the so-called ‘fiscal cliff’ in the United States? Finally, America will have to repeal Bush-era tax-cuts and begin cutting its chronic over-spend. So people like presidential candidate Mitt Romney would no longer be able to pay just 13% tax, and maybe have to pay 30%+ like the rest of the electorate. The ballooning federal budget will be forced to deflate just a little. Does the US really need to spend nearly 50% of all the ‘defence’ spending of the entire world?(1)
Will there be an economic crunch? Yes, there will: an almighty one. The dead wood of redundant government will crunch underfoot. As it rots, the real economy will be able to grow without the dead weight of zombie spending. Finally being forced to pay the bill for George W Bush’s ‘revenge for ma pa’ war in Iraq might sober up a few NeoCon hotheads. It won’t be anything like the financial reckoning that’s needed, but it might be the detox the poisoned economy needs.
(1) President Eisenhower, a former five-star general, warned the US about the military-industrial complex in this speech, three days before he relinquished the presidency: http://coursesa.matrix.msu.edu/~hst306/documents/indust.html and it has come to pass. Perhaps when they realise the con-job that’s been pulled on them, the Americans might want to legislate special interest groups buying favours and return to real democracy?