The Fiscal Cliff may affect EVERYONE (Final Blog)

 Hey people, so I been having this post on my drafts for quite some time so might as well post it as my last blog. The U.S economy has been fluctuating for over a decade, and is facing the fiscal cliff, the debt ceiling and several challenges for future investments. Instead of reforming and investing to improve the economy, the United States is taxing and cutting. American will have to pay double the tax they pay now, people who have a larger income will pay even more tax than before.  This means Americans will spend less. The United States must achieve some fiscal stability before they undergo a major downfall in the economy. The Federal government spends and wastes tons of money; today most of that budget goes towards entitlements and physical, human capital to boost the economy. Investing towards human and physical capital will ensure a healthy future for the economy. One the main reasons towards this downfall is the decline in investments towards important capitals such as the federal aviation system. The United States must upgrade all utilities in order for the system to run faster and more proficiently and therefore benefit the economy. Though it is more than just the economy, there is also a war between the Republicans and the Democrats for both parties disagree about this issue. The Obama Administration plans to stabilize this long term debt as well as making investments for the future. America does not plan to end up like Japan, the third richest country with a declining GDP and no future ahead.

          If this Fiscal Cliff towards the USA continues to get worse, it will have a large negative impact on the entire economy. It will affect USA’s largest trading partner and neighbor Canada. As well as the entire world, all countries would be under a major recession. Recession means more expenses; citizens will have to pay more for goods. Their will be a limited amount of services and the unemployment rates will decrease drastically. This recession will not only affect businesses but will negatively influence the life of many citizens. Whatever happens to the US, affects the entire world, whether that’s negative or positive. To overcome the recession the US had to find ways to stabilize the economy by all means possible. This means cutting, reducing taxes and increasing employment rates. Therefore citizens can pay less for taxes and purchase more goods.
http://www.thestar.com/opinion/editorialopinion/article/1310649--fiscal-cliff-hysteria-obscured-the-real-u-s-crisis

Here is a video which really explains what is going on, this is kind of a difficult subject to digest though its really happening to the US which may also have an affect towards us here at home in the near future.